Baldrige National Quality Program Information and Analysis: The Foundation for Performance Excellence Harry S. Hertz DAMA - NCR Meeting March 13, 2001.

Baldrige National Quality ProgramBaldrige National Quality Program

Information and Analysis:The Foundation for

Performance Excellence

Harry S. Hertz

DAMA - NCR Meeting

March 13, 2001

Baldrige National Quality Program

Outline

Baldrige Performance Excellence The Role of Information and

Analysis Self-Assessment Role Model Characteristics Future Challenges


Performance Excellence

An aligned approach to organizational performance management that results in:

• delivering ever-improving value to customers, resulting in marketplace success

• improving organizational effectiveness and capabilities

• organizational and personal learning


“The society which scorns excellence in plumbing as a humble activity and tolerates shoddiness in philosophy because it is an exalted activity will have neither good plumbing nor good philosophy…neither its pipes nor its theories will hold water.”

John W. Gardner


Criteria for Performance Excellence

An assessment tool Seven Category integrated framework Updated regularly



Category Point Values (2001)

1 Leadership 1252 Strategic Planning 853 Customer and Market Focus 854 Information and Analysis 855 Human Resource Focus 856 Process Management 857 Business Results 450

120

90


Information and Analysis(2001)

`

4.1

Measurement and Analysis of Organizational

Performance

4.1

Measurement and Analysis of Organizational

Performance

4.2

Information Management

4.2

Information Management

•Performance Management

•Performance Analysis

•Data Availability

•Hardware and Software Quality


Why Self-Assess?

Drivers

Customers/competitors drive need to change

Industry in state of flux Maintain leadership position Keep business healthy


Why Self-Assess?

Benefits

Jump start a change initiative. Energize existing improvement initiatives. Focus the organization on common goals. Align improvement efforts.


10-Step Plan for Self-Assessment and Action

1. ID organizational boundaries.

2. Decide on format.3. Write Organizational

Profile.4. Select 7 champions.5. Practice process with

Item 1.1.

6. Complete other Items.7. Share responses/

finalize findings.8. Determine +’s and

OFIs.9. Develop/implement

action plan.10. Evaluate/improve

process.


Step 1 - Define the Organization

Purpose: Ensure “doable” improvements and consistent data collection.

Process: Determine breadth of inquiry. Indicate on org. chart.


Step 2 - Decide on Format

Purpose: Clarify expectations and resources.

Process: Determine if oral/written and what steps to use.


Step 3 - Write Organizational Profile

Purpose: Describe what is relevant and important; ensure common understanding; guide selection of info/data.

Process: Review directions. Draft response. Reach consensus. Finalize.


Step 3 - Write Profile (Cont’d.)

Basic description of the organization- Organizational Environment- Organizational Relationships- Competitive Situation- Strategic Challenges- Performance Improvement System


Step 3: Write Profile (Cont’d.)Basic Description

regulatory environment

customer groups/market segments

suppliers/dealers and relationships

products/services organizational

context/culture employees/staff - ed.

level, diversity, bargaining units, contracts, safety requirements

equipment, facilities, technologies used


Step 3: Write Profile (Cont’d.)Competitive Situation

and Strategic Challenges

Numbers/types of competitors and key collaborators

Position (relative size/growth) in your sector Principal factors determining competitive

success Changes affecting competition


Step 3: Write Profile (Cont’d.)Performance

Improvement System

Approach to systematic evaluation and improvement

Organizational learning and knowledge sharing


Value of Baldrige to U.S. Business

Stimulating Quality

Improvement

Stimulating Competitiveness

Improvement

Extremely/Very Valuable

(%)

79

67


Stock Study Results

0

200

400

600

800

1000

1200

% R

etur

n on

Inve

stm

ent

All Recipients 1988-98

Whole CompanyRecipients 1988-98

Site Visited 1990-98

Award Recipients

S&P 500

Morningstar


Role Model Behavior

Effective, systematic approach Well deployed Evaluation, improvement, and learning in

place Alignment across Categories and with

organizational needs


1999 & 2000 Award Process Mean Item Percentage Scores: All Business Categories (Stage 1 and

Award Recipients)

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

1.1 1.2 2.1 2.2 3.1 3.2 4.1 4.2 5.1 5.2 5.3 6.1 6.2 6.3 7.1 7.2 7.3 7.4 7.5

Item

Mea

n P

erce

nta

ge

Sco

res

Award Recipients

Stage 1


Baldrige Role Model Characteristics

Visionary Leadership Guidance (1.1) Focused on Customer Satisfaction and

Relationships (3.2) High Performance Work Systems (5.1) Focused on Employee Education/Development (5.2) Customer and Market Knowledge (3.1) Process Driven -- Manufacturing and Service (6.1) Strong Financial and Market Results (7.2)


“The task of the leader is to get people from where they are to where they have not been.”

Henry Kissinger


Greatest ImprovementsAward Recipients vs. Stage 1

Human Resource Results (7.3) Customer Focused Results (7.1) Organizational Effectiveness Results (7.5) Financial and Market Results (7.2) Visionary Leadership Guidance (1.1) Focus on Customer Satisfaction and

Relationships (3.2)


Needs Greatest ImprovementsStage 1 Applicants

Supplier and Partner Results (7.4) Human Resource Results (7.3) Organizational Effectiveness Results (7.5)


1999 & 2000 Award Process Mean Item Percentage Scores: All Business Categories (Stage 1 and Award Recipients)

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

1.1 1.2 2.1 2.2 3.1 3.2 4.1 4.2 5.1 5.2 5.3 6.1 6.2 6.3 7.1 7.2 7.3 7.4 7.5

Item

Me

an

Pe

rce

nta

ge

Sc

ore

s

Award Recipients

Stage 1

The slippery slope of performance!


The Results Imperatives

Tied to Business and Customer Requirements

Tied to Key Processes

Tied to Strategy and Action Plans

Track Levels and Trends

Linked to Company-Level Information and

Analyses

Actionable!


1999 Lessons Learned Common Themes

Senior leadership commitment is required Strategic planning ties all of the criteria together Use multiple, different customer listening posts Use data selectively, segment, analyze, act Involved and empowered employees are

motivated All work is a process Build your system to last

Baldrige National Quality Program Information and Analysis: The Foundation for Performance Excellence Harry S. Hertz DAMA - NCR Meeting March 13, 2001.

Documents

software quality slide

gardner slide

business healthy slide

personal learning slide

process management

performance excellence

organizational profile

capabilities organizational