2015
Introduction to the Baldrige
Performance Excellence Framework
for Healthcare Organizations
Presented by: Michael P. Levy
Virginia Association for Healthcare Quality
38th Annual Education Conference
Richmond, VA
6 November, 2015
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Learning Objectives
At the end of this presentation, the attendee will be able to:
• Understand what the Baldrige Performance
Excellence Framework is
• Understand the purpose of the Baldrige Criteria
• Understand the structure of the Baldrige Criteria
• Understand the criteria’s scoring system
• Understand how the criteria can be used to assess
Performance Excellence
• Begin to Apply the criteria to assess an organization
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Topics
• What is the Baldrige Performance Excellence
Program
• Overview of the Baldrige Excellence Framework
• The Baldrige Excellence Framework for Healthcare
• A Systems Approach to Performance Excellence
• How to Assess Your Organization Against the
Performance Excellence Criteria
• The Malcolm Baldrige National Quality Award
• Healthcare Impacts of Baldrige
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
What is the Baldrige
Performance Excellence
Program
Virginia Association for Healthcare Quality
38th Annual Education Conference
Richmond, VA
6 November, 2015
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Program History
Malcolm Baldrige National Quality Improvement Act
of 1987, Public Law 100-107
• Created award program to
– identify/recognize role-model businesses
– establish criteria for evaluating improvement
efforts
– disseminate/share best practices
• Expanded to health care and education (1998)
and to nonprofit sector (2005)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
The Baldrige Program . . .
• Authors the Baldrige Excellence Framework and its
Criteria for Performance Excellence
• Offers organizational assessments and self-assessment
tools
• Provides training, executive development, and
conferences
• Manages the Malcolm Baldrige National Quality Award
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Baldrige Excellence Framework and
Criteria for Performance Excellence
• Define performance excellence
• Organizational Profile and seven
categories—an integrated management
framework
• Used by diverse organizations in all sectors
of the economy
• Used to identify award recipients
• Updated every two years
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Performance Excellence
An integrated approach to organizational performance
management that results in
●
delivery of ever-improving value to customers
and stakeholders, contributing to organizational
sustainability
●
improvement of overall organizational
effectiveness and capabilities
●
organizational and personal learning
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
The Baldrige Community
Foundation for the
Malcolm Baldrige
National Quality
Award
Department of
Commerce
Alliance for
Performance
CV
Excellence
National
Institute of
Standards and
Technology
ASQ
(Contractor)
Board of
Examiners
• Judges
• Examiners
Baldrige Performance Excellence Program | www.nist.gov/baldrige
Board of
Overseers
Baldrige
Award
Recipients
Cooperating
Organizations
• Professional Societies
• Trade Associations
2015
Summary
For 28 years:
•
defining performance
excellence
•
recognizing performance
excellence
•
helping organizations improve
• Public-private partnership
• Presidential education and award program
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Overview of the Baldrige
Excellence Framework
Virginia Association for Healthcare Quality
38th Annual Education Conference
Richmond, VA
6 November, 2015
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
The Baldrige Framework Is the
Basis for . . .
State, local, and sector-based
performance excellence programs
Many of the nearly 100
performance excellence
programs around the globe
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
A Focus on Improvement
• Are your processes consistently effective?
• Do your approaches address your organization’s
needs?
• How good are your results?
• Is your organization learning, innovating, and
improving?
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
A Systems Perspective
• Managing all the parts of your organization
as a unified whole
• Ensuring plans, that processes,
measures, and actions are consistent
• Ensuring that the individual parts work
together beneficially
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
The Baldrige Excellence Framework
includes . . .
• Core values and concepts
• Criteria for Performance Excellence
• Scoring system
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Core Values and Concepts
• Customer-focused
excellence
• Systems
perspective
• Visionary
leadership
• Valuing people
• Organizational
learning and agility
• Focus on success
• Managing for
innovation
• Management by fact
• Societal responsibility
Baldrige Performance Excellence Program | www.nist.gov/baldrige
• Ethics and
transparency
• Delivering value
and results
2015
Criteria for Performance Excellence
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Scoring System
• Scoring guidelines
• Importance to your organization
• Two dimensions:
 Process - ADLI
 Results - LeTCI
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Evaluating Processes - ADLI
• Approach: How do you accomplish your
organization’s work? How systematic are your key
processes?
• Deployment: How consistently are your key
processes used?
• Learning: Have you evaluated and improved your key
processes? Have improvements been shared?
• Integration: How do your processes address
organizational needs?
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Evaluating Results - LeTCI
• Levels: What is your current performance?
• Trends: Are the results improving, staying the same,
or getting worse?
• Comparisons: How does your performance
compare with others?
• Integration: Are you tracking important results? Are
you using the results?
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
What Can the Baldrige Framework
Do for Your Organization?
•
•
•
•
•
Jump-start change initiatives
Energize improvement initiatives
Enable a focus on common goals
Assess performance against the competition
Align resources with strategic objectives
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
How Is Baldrige Different?
Excellence
Overall systems approach
Results in all organizational areas
Success now and in the future—a strategic view
Organizational learning, learning by the
workforce, and knowledge sharing
• Corporate governance, ethics, societal
responsibility
•
•
•
•
•
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Baldrige and Joint Commission
Similarities
• Continuous improvement focus
• Core values
• Self-assessment
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Baldrige and Joint Commission
Differences
Joint Commission
• Patient care
• Minimum standards for
accreditation
• Individual factors
Baldrige Performance Excellence Program | www.nist.gov/baldrige
Baldrige
• Overall organizational
focus, including patients
• Role-model performance
• Individual factors and
strategic challenges and
advantages
2015
The Baldrige Excellence
Framework for Healthcare
Virginia Association for Healthcare Quality
38th Annual Education Conference
Richmond, VA
6 November, 2015
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
For those considering the Baldrige framework,
I want to testify to the magnitude of the results
you can achieve. . . . It was the use of the
Baldrige framework that had boosted our
ability to deliver better care to our patients.
And, in the end, that is the most important
thing.
—Nancy Schlichting, CEO,
Henry Ford Health System
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Using the program as an improvement road map . . .,
we improved patient satisfaction for 10 straight
years.
Our risk-adjusted mortality rate improved to rank
among the top 10% nationally. . . .
While driving these improvements, we also created
efficiencies, freeing up resources to further
reinvest in our clinical care and services.
—Rulon Stacey, Former President/CEO,
Poudre Valley Health System
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Health Care Criteria Categories
1.
2.
3.
4.
5. Workforce
Leadership
6. Operations
Strategy
7. Results
Customers
Measurement, Analysis, and
Knowledge Management
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
The Role of Core Values and Concepts
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Core Values and Concepts
•
Systems
perspective
•
Visionary
leadership
•
Patient-focused
excellence
•
Valuing people
•
Organizational learning
and agility
•
Focus on success
•
Managing for
innovation
•
Management by fact
•
Societal responsibility
Baldrige Performance Excellence Program | www.nist.gov/baldrige
•
Ethics and
transparency
•
Delivering value
and results
Visionary leadership
2015
Systems perspective
Patient-focused
excellence
Valuing people
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Focus on
success
Managing for
innovation
Management
by fact
Organizational
learning and agility
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Delivering value
and results
Baldrige Performance Excellence Program | www.nist.gov/baldrige
Ethics and
transparency
Societal
responsibility
and community
health
2015
Baldrige Criteria Overview:
A Systems Perspective
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Item Format
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Item Notes
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Organizational Profile
P.1 Organizational Description
P.2 Organizational Situation


Starting point for self-assessment
and application preparation
Basis for early action planning
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
1. Leadership (120 pts.)
Senior leaders’ actions, organizational governance,
and societal responsibilities
1.1 Senior Leadership (70 pts.)
1.2 Governance and Societal Responsibilities (50 pts.)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
2. Strategy (85 pts.)
Strategic and action planning
Implementation of plans
2.1 Strategy Development (45 pts.)
2.2 Strategy Implementation (40 pts.)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
3. Customers (85 pts.)
Listening to the voice of patients and other
customers and engaging them
3.1 Voice of the Customer (40 pts.)
3.2 Customer Engagement (45 pts.)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
4. Measurement, Analysis, and
Knowledge Management (90 pts.)
Analysis, review, and improvement of
organizational performance
Management of information, knowledge,
and information technology
4.1 Measurement, Analysis, and Improvement of
Organizational Performance (45 pts.)
4.2 Knowledge Management, Information, and
Information Technology (45 pts.)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
5. Workforce (85 pts.)
Building an effective workforce environment
Engaging, developing, and managing your workforce
5.1 Workforce Environment (40 pts.)
5.2 Workforce Engagement (45 pts.)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
6. Operations (85 pts.)
Designing, managing, and improving work processes
Improving operational effectiveness
6.1 Work Processes (45 pts.)
6.2 Operational Effectiveness (40 pts.)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
7. Results (450 pts.)
Performance and improvement in all key areas
Performance levels, trends, and comparative data
7.1 Health Care and Process Results (120 pts.)
7.2 Customer-Focused Results (80 pts.)
7.3 Workforce-Focused Results (80 pts.)
7.4 Leadership and Governance Results (80 pts.)
7.5 Financial and Market Results (90 pts.)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Category Point Values
1
2
3
4
5
6
7
Leadership
120
Strategy
85
Customers
85
Measurement, Analysis, and
Knowledge Management
90
Workforce
85
Operations
85
Results
450
Total
1,000
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Steps toward Mature Processes
Reacting to Problems (0–25%)
Aligned Approaches (50–65%)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
Early Systematic Approaches (30–45%)
Integrated Approaches (70–100%)
2015
From Fighting Fires to Innovation:
An Analogy for Learning
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
A Systems Approach to
Performance Excellence
Virginia Association for Healthcare Quality
38th Annual Education Conference
Richmond, VA
6 November, 2015
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Baldrige Excellence Framework and
Criteria for Performance Excellence
•
•
•
•
•
Higher productivity
Greater customer loyalty
Increased market share
Improved profitability
Better employee
relations
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
It’s all about continuous improvement. . . . By
embracing all of the key dimensions of Baldrige,
the company has doubled in size this year as a
business of Bayer Health Care. We are $690
million in revenue, as of the end of 2010.
—Samuel Liang, president and CEO,
two-time Baldrige Award winner MEDRAD
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Baldrige
Business results
Organizational improvement
and innovation systems
Six Sigma, Lean, &
ISO 9001
Organizational improvement and
innovation processes
Six Sigma & Lean
Drive waste and inefficiencies
from processes
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Six Sigma
Reduce variation; lower defect rates
< 3.4 defects/million opportunities
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Six Sigma
Methodologies
DMAIC
Define, measure, analyze, improve, and control
DMADV
Define, measure, analyze, design, and verify
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Lean
Eliminate non-value-added activities and waste
Waste
Anything a final
customer wouldn’t
want to pay for
Baldrige Performance Excellence Program | www.nist.gov/baldrige
•
•
•
•
•
•
•
Transportation
Inventory
Redundant motion
Waiting
Overprocessing
Overproduction
Defects
2015
Lean
Map and
understand
value stream
Customerdefined value
Goals
• Increase productivity
• Eliminate waste
• Maximize resource
utilization
Continuously improve
processes
Baldrige Performance Excellence Program | www.nist.gov/baldrige
Make value
stream flow
2015
ISO
Standards for quality management systems
• Set objectives and
processes to deliver
products that meet
customer requirements
• Take action to
improve
• Monitor/measure
processes and
products against
objectives and
requirements
Baldrige Performance Excellence Program | www.nist.gov/baldrige
ACT
PLAN
CHECK
DO
• Implement processes
2015
Baldrige Excellence Framework
Integrated management framework
Emphasis on
• Integration
• Innovation
• Results
• Sustainability
Baldrige Performance Excellence Program | www.nist.gov/baldrige
•
•
•
•
Nonprescriptive
Holistic
Inclusive
Adaptable
2015
While other approaches focus on a single aspect, such as
leadership or process management, the Baldrige Criteria
provide an integrated management framework that
addresses all the factors that define an organization’s
operations and results. And the process is compatible with
Lean and Six Sigma strategies as well as ISO 9000.
—Robert W. Galvin, chairman, Baldrige Award winner
Motorola Commercial, Government & Industrial Solutions Sector
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
1 Leadership
Baldrige Six Sigma
Address the overall leadership system
Lean
■
Benefit from leaders who
• Align financial and human resources
• Communicate cultural norms
• Encourage and provide resources
• Solidify a culture of organizational
excellence
Baldrige Performance Excellence Program | www.nist.gov/baldrige
■
■
■
■
■
■
■
■
■
■
2015
2 Strategy
Baldrige
• Identify organizational objectives
• Measure progress
• Coordinate use of assets toward
objectives
Six Sigma
• Measure progress
Organizational Strategy
Critical Performance Measures
Good
100%
100%
95%
90%
85%
95%
94%
2006
2007
Actual
Six Sigma, Lean
• Coordinate use of assets toward objectives
Baldrige Performance Excellence Program | www.nist.gov/baldrige
98%
2008
2009
Goal
94%
2010
2015
3 Customers
Satisfaction Determination
Percent Satisfaction with Product, Service Attributes
Map and
understand
value stream
100
• Performance
measures, and
analyses
Baldrige
Build customer
engagement
and loyalty
60
ers
% OnmTime
9 9
2001
BA
R
9 8
All
Cu
sto
BA
R
SE
RV
ICE
All
Cu
sto
me
rs
QU
AL
ITY
40
Non-egg Supplier
Claims
2002
2003
2004
2005
9 7
BAR 2002
BAR 2003
9 6
9 5
'01
'02
'03
'04
'05
'06 YTD
3
SFF OTD
BAR OTD
2
1
0
Y
T
D
A
vg
.
Continuously
improve
processes
1 00
P ounds P roduc e d
Make value
stream flow
• Use feedback
and analyses
to improve
On Time Delivery
80
C om pla ints pe r M illion
Customerdefined
value
'0 1
Baldrige, Six Sigma
Use the voice of the
customer to identify
areas for improvement
Baldrige Performance Excellence Program | www.nist.gov/baldrige
'0 2
'0 3
'0 4
'0 5
'0 6 Y T D
Lean
Make all process steps
something the
customer is willing to
pay for
2015
4 Measurement, Analysis, and
Knowledge Management
Baldrige
ISO 9001:2008 Six Sigma
Measure and improve Monitor and
• processes
measure process
• business results
performance
• overall
organizational
performance
Baldrige Performance Excellence Program | www.nist.gov/baldrige
• Use specific
metrics
• Collect data
• Analyze data
• Collect control
data
Lean
Measure, analyze,
and reduce
• wait time
• inventory
• batch size
• process time
• rework
2015
5 Workforce
Baldrige
Employee Engagement
• Manage workforce capability and capacity
• Foster a high-performance environment
• Engage, manage, and develop the
workforce
Six Sigma, Lean, ISO
2010
2011
2012
2013
2014
Baldrige Performance Excellence Program | www.nist.gov/baldrige
Require
• Leadership development
• Training
• Compensation alignment
• Culture shift
2015
6 Operations
Baldrige
Cpk=1.25
Processes: interrelated,
interdependent steps along the path
to customer engagement and
organizational sustainability
n'
Ja
02
Process Avg
LCL
n'
Ja
03
Spec Target
Upper Spec Limit
Cpk= 4.42
r
Ma
'05
UCL
Lower Spec Limit
Six Sigma, Lean, ISO 9001
•
•
•
•
Baldrige Performance Excellence Program | www.nist.gov/baldrige
Generate standard operating procedures
Set specification and control limits
Identify explicit corrective actions
Optimize processes
2015
7 Results
Baldrige
Addresses all results:
• Product and process
• Customer
• Workforce
• Leadership and governance
• Financial and market
Six Sigma, Lean, ISO 9001
Data-driven and results-oriented, leading to
• tracking systems (e.g., control charts,
scorecards, rolled throughput yield charts)
• monitoring of functional or operational
results
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
How to Assess Your
Organization Against the
Performance Excellence Criteria
Virginia Association for Healthcare Quality
38th Annual Education Conference
Richmond, VA
6 November, 2015
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
What Is a Baldrige Self-Assessment?
• The first step toward organizational
improvement and performance excellence
• A “results-oriented” review
• Adaptable to the needs of your organization
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Why Conduct a Self-Assessment?
• Your customers, competitors, or budget are
driving the need to change.
• Your environment is changing.
• Your organization is among the best, and
you want to keep it that way.
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Benefits
• Identify successes and
opportunities for improvement
• Jump-start a change initiative
• Energize improvement initiatives
• Energize the workforce
• Focus your organization on common goals
• Assess performance against the competition
• Align resources with strategic objectives
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Tools and Approaches
Surveys
• Are We Making
Progress?
• Are We Making
Progress as
Leaders?
• easyInsight
Baldrige Performance Excellence Program | www.nist.gov/baldrige
Self-Assessments
• Organizational Profile
• Criteria item title
questions
• Intermediate selfassessment
• Full self-assessment
2015
Start Improving Your Organization
• Purchase the Baldrige Excellence Framework or
download free content.
• Become a Baldrige examiner, or
attend examiner training.
• Attend a national or regional Baldrige
conference.
• Do a Baldrige self-assessment.
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Start Improving Your Organization
• Contact your state or local Baldrige-based
program.
• Consider the Baldrige Executive Fellows Program
for a senior leader.
• Contact a Baldrige Award recipient.
• Apply for a Baldrige-based award, or
consider a Baldrige Collaborative Assessment.
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
It amazes me that U.S. businesses spend so much
money on “how-to” books and course work to teach
leaders how to build successful organizations.
My recommendation: implement the Baldrige-based
Criteria in your business. No other single document
can help build a long-term successful organization.
—Jerry Rose, Vice President, Cargill, Inc.
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
If You Are Just Learning about the
Baldrige Excellence Framework . . .
Your Reference
Guide to
Performance
Excellence
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
• Do leaders/employees know and
understand our values, vision, mission,
and plans?
• Does the workforce trust my
organization’s leadership?
• Is my communication effective?
• Is my message being well received?
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
For Your Workforce
For Your Leaders
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
• Is my organization ready for a more thorough
self-assessment?
• Are there gaps in our knowledge about our
organization?
• How does my organization compare to others?
• What plans can we make for improvement or
for a more complete self-assessment?
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Organizational Profile
• What are my organization’s key characteristics?
• What are the key influences on my
organization?
• What key challenges does my organization
face?
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Complete the Organizational Profile
•
•
•
•
Describe what is relevant and important
Ensure common understanding
Guide selection of information/data
Identify gaps/lack of deployment
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Intermediate Self-Assessment
Baldrige Excellence Builder:
Key questions for improving
your organization’s
performance
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Full Self-Assessment: Six Steps
1. Identify the scope.
2. Select champions.
3. Select category teams/collect data and
information.
4. Share answers.
5. Create and communicate an action plan.
6. Evaluate.
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
1. Scope: the whole organization, or one part?
2. Champions: one for each Criteria or Excellence
Builder category
3. Select category teams; answer the Criteria or
Excellence Builder questions
4. Share answers to the questions
among category teams.
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
5. Create and communicate an action plan
for improvement.
For High-Importance Areas
Importance:
Criteria
Stretch (strength)
High,
What action is
By
Who is
category
or improvement
medium, low
planned?
when? responsible?
(OFI) goal
1 Leadership
Strength
1.
2.
OFI
1.
2.
6. Evaluate the self-assessment process
for future improvements.
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
For More Information
• Baldrige Excellence Framework booklets and free
content
• Self-assessment tools
• Organizational assessments
• Training, conferences, and executive education
• Award recipient profiles
• Case studies
• Connections to the Baldrige community
www.nist.gov/baldrige
baldrige@nist.gov
(301) 975-2036
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
The Malcolm Baldrige
National Quality Award
Virginia Association for Healthcare Quality
38th Annual Education Conference
Richmond, VA
6 November, 2015
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
About the Award
• Presidential award
• Created in 1987 by Public Law 100-107
• Highest level of national recognition for
performance excellence
• Traditionally presented by the
President of the United States
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Why Apply?
• Improve performance and achieve
world-class results
• Seek “the most cost-effective, value-added
business audit available anywhere”
• Objectively clarify your organization’s strengths
and weaknesses
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
This year’s [Baldrige Award] recipients have
shown how quality, innovation, and an unending
quest for excellence help strengthen our nation
and brighten the future of all Americans.
—President Barack Obama
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
The Feedback Report:
Your Greatest Benefit
• Written assessment of strengths/
opportunities for improvement
• Compiled by a team of expert examiners
– Key themes (summary)
– Organization-specific comments in 17
areas
– Individualized scoring information
– Scoring distribution
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Eligibility Categories
• Manufacturing
• Service
• Small business
Baldrige Performance Excellence Program | www.nist.gov/baldrige
●
●
●
Education
Health care
Nonprofit
2015
Eligibility Conditions
Headquartered in the United States
Existed for one year
Operational practices available for examination
Able to share information on Baldrige Criteria
categories
• Other sector-specific requirements
•
•
•
•
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Eligibility Conditions (cont’d)
• In the past 5 years:
o Top-level award from an Alliance for Performance
Excellence member program, or
o National process and results band numbers total
8 or higher, or
o National program site visit
or
• ≥ 25% of the workforce outside the home state
or
• No Alliance program available
or
• Submit additional eligibility screening materials
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Baldrige Award Calendar
February
April–May
June–November
November
April
Eligibility certification
Award applications due
Applications reviewed
Award recipients announced
Award ceremony
Quest for Excellence Conference
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
How to Apply
1. Certify Your Eligibility 2. Submit an Application
●
●
●
6 categories
Nomination of
examiner
Fee: $360
●
●
●
Baldrige Performance Excellence Program | www.nist.gov/baldrige
Respond to the Baldrige
Criteria (50 pages)
Application fee
(sliding scale)
Site visit fee, if selected
(sliding scale)
2015
Review of
Award
Applications
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Applications by Award Category
’14
’13
’12* ’11 ’10
’09 ’08 ’07
Manufacturing
--
--
1
2
3
2
3
2
Service
1
--
3
3
2
4
5
4
Small business
--
--
2
2
7
5
7
7
Education
2
2
3
8
10
9
11
16
Health care
12
15
25
40
54
42
43
42
Nonprofit
6
5
5
14
7
8
16
13
Total 22
22
39
69
83
70
85
84
*New eligibility rules in effect.
Baldrige Performance Excellence Program | www.nist.gov/baldrige
Band
1988/89 1990 1991 1992 1993 1994
0-125
0
0
2.8
0
2
2
126-250
1
7.2 13.2
12
8
10
251-400
9 18.6 35.8
30
24
28
401-600
43 52.6
34
40
47
50
601-750
33 19.6 14.2
18
19
10
751-875
14
2.1
0
0
0
0
876-1000
0
0
0
0
0
0
Band*
1995
1996 1997 1998 1999 2000 2001 2002 2003
0-250
6
3
4
3
13
12
11
10
17
251-350
15
7
19
22
23
27
16
23
27
351-450
11
14
15
33
29
14
16
37
27
451-550
32
41
27
17
25
31
41
18
22
551-650
30
31
35
22
10
14
16
12
7
651-750
6
3
0
3
0
2
0
0
0
751-875
0
0
0
0
0
0
0
0
0
876-1000
0
0
0
0
0
0
0
0
0
Band*
2004
2005 2006 2007
0-275
3
5
1
11
276-375
22
17
13
27
376-475
40
34
41
31
476-575
20
28
30
25
576-675
15
14
13
6
% of applications in scoring band.
676-775
0
2
1
0
*Scoring bands changed.
776-875
0
0
0
0
Baldrige Performance
Excellence Program | www.nist.gov/baldrige
876-1000
0
0
0
0
Scoring of
Applications,
1988–2007
2015
2015
Scoring of Applications, 2008–2014
Process
Band
0–150
151–200
201–260
261–320
321–370
371–430
431–480
481–550
’08
’09 ’10 ’11
’12
’13
’14
5
10
21
47
15
2
0
0
6
8
23
50
13
0
0
0
0
0
16
45
39
0
0
0
0
0
14
45
36
5
0
0
0
0
18
41
41
0
0
0
4
6
28
39
22
1
0
0
4
3
21
26
13
1
0
0
Results
Band
0–125
126–170
171–210
211–255
256–300
301–345
346–390
391–450
’08
’09
’10
’11
’12 ’13 ’14
18
34
26
15
6
1
0
0
21
29
27
19
4
0
0
0
16
27
30
23
4
1
0
0
13
17
17
17
4
0
0
0
8
8
37
29
18
0
0
0
5 0
14 9
36 54
23 14
14 23
9 0
0 0
0 0
% of applications in scoring band.
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
m
1.1
Ite
m
7.5
Ite
m
1.2
Ite
m
7.4
Ite
m
2.1
Ite
m
7.3
Ite
m
2.2
Ite
m
7.2
Ite
m
3.1
Ite
m
7.1
Median
Scoring
Ranges,
2014
Ite
m
3.2
Ite
m
6.2
Ite
m
4.1
Ite
m
6.1
Ite
m
5.2
Baldrige Performance Excellence Program | www.nist.gov/baldrige
Ite
m
5.1
Ite
m
4.2
Median for All 2014 Applicants After
Consensus Review
Median Scores for All Site-Visited
Applicants after Site Visit Review
2015
Award Recipients: Health Care
• Advocate Good Samaritan Hospital
(2010)
• AtlantiCare (2009)
• Baptist Hospital, Inc. (2003)
• Bronson Methodist Hospital (2005)
• Heartland Health (2009)
• Henry Ford Health System (2011)
• Hill Country Memorial (2014)
• Mercy Health System (2007)
• North Mississippi Medical Center
(2006)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
• North Mississippi Health Services
(2012)
• Poudre Valley Health System (2008)
• Robert Wood Johnson University
Hospital Hamilton (2004)
• Saint Luke’s Hospital of Kansas City
(2003)
• Schneck Medical Center (2011)
• Sharp HealthCare (2007)
• Southcentral Foundation (2011)
• SSM Health Care (2002)
• St. David’s HealthCare (2014)
• Sutter Davis Hospital (2013)
2015
Healthcare Impacts of
Baldrige
Virginia Association for Healthcare Quality
38th Annual Education Conference
Richmond, VA
6 November, 2015
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Nationwide
• Help improve organizational practices,
capabilities, and results
• Facilitate communication and sharing of
best practices among organizations
(Baldrige Award recipients)
• Are a tool for understanding and managing
organizational performance
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Ratio of Baldrige Program benefits for the
U.S. economy to program costs
Source: Albert N. Link and John T. Scott, Economic Evaluation of the Baldrige Performance Excellence Program, December
2011, http://www.nist.gov/baldrige/publications/economic_evaluation_2011.cfm.
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
10,000+
Baldrige
Examiners
College/
University
Business
Courses
Rated #1
Leadership
Development
Program
~100
Business
Excellence
Programs
Worldwide
Baldrige
Communities of
Excellence
45 Baldrige
Executive
Fellows
ROI: 820 to 1
Baldrige
Performance
Excellence
Groups
99 Baldrige
Award
Recipients
Baldrige
Program
NIST
Association
BaldrigeBased
Programs
1,600+
Baldrige
Award
Applicants
Federal
BaldrigeBased
Programs
Corporate
BaldrigeBased
Excellence
Programs
Baldrige Performance Excellence Program | www.nist.gov/baldrige
BaldrigeBased
Accreditations
30+
Regional/
Sector
BaldrigeBased
Programs
Improved:
operations,
engagement,
outcomes
10,000 applications
20,000 examiners
40,000 conference
2015
Impact of Criteria Use
92,5%
84,0%
65,5%
2,5%
Growth in revenue
Growth in jobs
Growth in number
of sites
Two-time Baldrige Award winners (median)
Matched set of industries and time periods (mean)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Lower Health Care Costs,
Improved Quality
Baldrige hospitals:
• Faster five-year performance improvement than peers
• 83% more likely to be among Thomson Reuters’ 100
Top Hospitals®
• Outperformed non-Baldrige hospitals on 6 of 7
100 Top Hospitals measures
Source: Foster, D. A., and Chenoweth, J. 2011, October. Comparison of Baldrige Award Applicants and Recipients with
Peer Hospitals on a National Balanced Scorecard. Thomson Reuters. http://www.nist.gov/baldrige/upload/baldrigehospital-research-paper.pdf.
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Health Care:
Adoption of Baldrige Practices
• 100 Top Hospitals winners extensively use
Baldrige practices (80%)
• Highest formal use: Teaching hospitals
(nearly 70%)
Source: Shook, J., and Chenoweth, J. 2012, October. 100 Top Hospitals CEO Insights: Adoption
Rates of Select Baldrige Award Practices and Processes. Truven Health Analytics.
http://www.nist.gov/baldrige/upload/100-Top-Hosp-CEO-Insights-RB-final.pdf.
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Health Care:
Adoption of Baldrige Criteria
By 2018, hospitals likely to
• Use the Baldrige Criteria for improvement or
assessment: 65%
• Apply for the Baldrige Award or a state-level
Baldrige-based award: 41%
Source: Futurescan 2013: Healthcare Trends and Implications 2013-2018. American Hospital Association,
Society for Healthcare Strategy & Market Development. http://www.nist.gov/baldrige/upload/Futurescan2013-p44-2.pdf.
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Baldrige Training:
Top-Tier Leadership Development
Among government/military leadership
development programs:
• No. 1 in 2014
• Top-10 ranking 3 times since 2010
—Leadership Excellence magazine
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Alliance for Performance Excellence:
A National Network
• Feeder system
• Leverages the national
Baldrige Program
www.baldrigepe.org/alliance
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
International Adoption
About 100 performance
excellence programs
worldwide
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Widespread U.S. Participation
•
•
•
•
•
•
Large and small organizations
Internal business excellence programs
College and university courses
Accreditation
Consultants
Private-sector support
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Baldrige Award Participants
• 99 Baldrige Award recipients
(105 awards)
• 1,613 award applications
• More than 9,400 examiners trained
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Baldrige Award Recipients
• Presentations to all sectors
• Quest for Excellence® and
regional conferences
• Influence on customers/suppliers
• Seminars and workshops
• Articles
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Hill Country Memorial
Consistently in the top
10% nationally on CMS
clinical process measures,
health care outcomes and
patient experience
measures
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
St. David’s HealthCare
Since 2009, composite
performance on core CMS
measures at or better than
the top 10% of health care
systems nationally for
each disease group
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Elevations Credit Union
Increased mortgage
market production volume
from 1,123 loans in 2011
to 2,307 in 2014
In 2013, more mortgage
volume in than any county
competitor
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
PricewaterhouseCoopers
Public Sector Practice
Contractor Performance
Assessment scores of
“exceptional” or “very good” at or
near 100% for FY2010–FY2014
Net Promoter System scores 50
or higher since FY2012—equal to
or better than NPS scores for
some of the most respected
companies in the country
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Backup Slides
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Award Recipients: Manufacturing
• 3M Dental Products Division (1997)
• ADAC Laboratories (1996)
• Armstrong Building Products
Operations (1995)
• AT&T Transmission Systems
Business Unit (1992)
• The Bama Companies, Inc. (2004)
• Boeing Airlift & Tanker Programs
(1998)
• Cadillac Motor Car Company (1990)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
• Cargill Corn Milling North America
(2008)
• Clarke American Checks, Inc.
(2001)
• Corning Telecommunications
Products Division (1995)
• Dana Corporation—Spicer
Driveshaft Division (2000)
• Eastman Chemical Company (1993)
• Honeywell Federal Manufacturing &
Technologies (2009)
• IBM Rochester (1990)
2015
Award Recipients: Manufacturing
•
•
•
•
•
•
•
•
•
KARLEE Company, Inc. (2000)
Lockheed Martin Missiles and Fire
Control (2012)
MEDRAD, Inc. (2003, 2010)
Milliken & Company (1989)
Midway USA (2009)
Motorola CGISS (2002)
Motorola, Inc. (1988)
Nestlé Purina PetCare Co. (2010)
Solar Turbines Inc. (1998)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
• Solectron Corporation
(1991 and 1997)
• STMicroelectronics—Region
Americas (1999)
• Sunny Fresh Foods, Inc. (2005)
• Texas Instruments Defense
Systems & Electronics Group
(1992)
• Westinghouse Commercial
Nuclear Fuel Division (1988)
• Xerox Corp. Business Products
& Systems (1989)
• Zytec Corporation (1991)
Award Recipients: Service
• AT&T Consumer Communications
Services (1994)
• AT&T Universal Card Services
(1992)
• BI (1999)
• Boeing Aerospace Support (2003)
• Caterpillar Financial Services
Corp. U.S. (2003)
• Dana Commercial Credit
Corporation (1996)
• DynMcDermott Petroleum
Operations (2005)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
• Federal Express Corporation (1990)
• GTE Directories Corporation (1994)
• Merrill Lynch Credit Corporation
(1997)
• Operations Management
International, Inc. (2000)
• PricewaterhouseCoopers Public
Sector Practice (2014)
• Premier Inc. (2006)
• The Ritz-Carlton Hotel Company,
L.L.C. (1992, 1999)
• Xerox Business Services (1997)
2015
Award Recipients: Small Business
• Ames Rubber Corporation (1993)
• Branch-Smith Printing Division
(2002)
• Custom Research Inc. (1996)
• Freese and Nichols Inc. (2010)
• Globe Metallurgical Inc. (1988)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
•
•
•
•
•
Granite Rock Company (1992)
K&N Management (2010)
Los Alamos National Bank (2000)
Marlow Industries, Inc. (1991)
MESA (2006, 2012)
2015
Award Recipients: Small Business
MidwayUSA (2009)
Pal’s Sudden Service (2001)
Park Place Lexus (2005)
PRO-TEC Coating Company
(2007)
• Stoner, Inc. (2003)
• Studer Group (2010)
•
•
•
•
Baldrige Performance Excellence Program | www.nist.gov/baldrige
• Sunny Fresh Foods (1999)
• Texas Nameplate Co., Inc.
(1998, 2004)
• Trident Precision
Manufacturing, Inc. (1996)
• Wainwright Industries, Inc.
(1994)
• Wallace Co., Inc. (1990)
2015
Award Recipients: Education
•
•
•
•
•
•
•
•
•
•
Chugach School District (2001)
Community Consolidated School District 15 (2003)
Iredell–Statesville Schools (2008)
Jenks Public Schools (2005)
Kenneth W. Monfort College of Business (2004)
Montgomery County Public Schools (2010)
Pearl River School District (2001)
Pewaukee School District (2013)
Richland College (2005)
University of Wisconsin–Stout (2001)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2015
Award Recipients: Nonprofit
•
•
•
•
•
•
City of Coral Springs, Florida (2007)
City of Irving, Texas (2012)
Concordia Publishing House (2011)
Elevations Credit Union (2014)
U.S. Army Armament Research, Development and
Engineering Center (ARDEC; 2007)
Veterans Affairs Cooperative Studies Program Clinical
Research Pharmacy Coordinating Center (2009)
Baldrige Performance Excellence Program | www.nist.gov/baldrige