June 2002QPRC 2002, Tempe, Arizona A Workshop on Assessing to the Baldrige Criteria Cheryl L....

June 2002 QPRC 2002, Tempe, Arizona

A Workshop on Assessing to the Baldrige Criteria

Cheryl L. Jennings, Motorola

Lynn Kelley, Textron


Objective of this Workshop

• Begin to develop the skills needed to– Assess a Baldrige-type application to the

Performance Excellence Criteria requirements– Provide feedback relevant to an organization’s

Key Factors

• Understand how to– Analyze business results in a Baldrige-type

application– Report results to demonstrate performance and

improvement, in any situation


Outline

• Performance Excellence Criteria

• The Application Evaluation Process– The Scorebook– Writing Feedback Comments

• Evaluating Results Items

• Team Exercise

• Report Out

• Q&A


The Criteria for Performance Excellence


Performance Excellence

• An integrated approach to organizational performance management that results in– Delivery of ever-improving value to

customerscustomers, contributing to marketplace success;

– Improvement of overall organizationalorganizational effectiveness and capabilities; and

– Organizational and personal learninglearning

(Criteria, p. 1)


Criteria Framework: A Systems Perspective

(Criteria, p. 5)


Categories/Items and Point Values

(Criteria, p. 9)

1 Leadership 120 1.1 Organizational Leadership 80 1.2 Public Responsibility & Citizenship 40

2 Strategic Planning 85 2.1 Strategy Development 40 2.2 Strategy Deployment 45

3 Customer & Market Focus 85 3.1 Customer & Market Knowledge 40 3.2 Customer Relationships & Satisfaction 45

4 Information & Analysis 90 4.1 Measurement & Analysis of Organizational Performance 50 4.2 Information Management 40

5 Human Resource Focus 85 5.1 Work Systems 35 5.2 Employee Education, Training & Development 25 5.3 Employee Well-Being & Satisfaction 25

6 Process Management 85 6.1 Product & Service Processes 45 6.2 Business Processes 25 6.3 Support Processes 15

7 Business Results 450 7.1 Customer-Focused Results 125 7.2 Financial & Market Results 125 7.3 Human Resource Results 80 7.4 Organizational Effectiveness Results 120 TOTAL POINTS 1000


Item Format

(Criteria, p. 47)


The Application Evaluation Process


Baldrige Award Process

(Feedback, p. 2)

No

No

Receive applications

Stage 1Independent Review

Stage 2Consensus Review

Stage 3Site Visit Review

Judges select for Consensus

Review?

Feedback report to applicant

Judges select forSite Visit Review?


Stage 4Judges recommend Award

recipients to NIST Director/DOC



Independent Review—Scorebook

• Key Factors (KFs)– Concise summary of most important aspects of

organization• Organizational and Competitive environmentsenvironments• Key working relationshipsrelationships• Key strategic challengeschallenges

• Key Themes– Overall summary of key points in application

• Most important strengthsstrengths identified• Most significant opportunitiesopportunities (OFIs) identified• Most significant strengths and/or OFIs in ResultsResults

• Item Worksheets– Single, complete commentscomments linked to Criteria and KFs


Key Factors

• Synthesized by Examiner from the “Organizational Profile” in the application– Organizational Description

• Environment and Relationships

– Organizational Challenges• Competitive Environment, Strategic Challenges,

Performance Improvement System

• Used by Examiners to understand the organization and what is considered important by the organization


Developing Worksheet Comments

• Read the Criteria requirementsCriteria requirements for the Item• Read the applicant’s responseapplicant’s response against the

Criteria• Identify the Key FactorsKey Factors relevant to the Item• Develop and write 6–10 comments—single, single,

complete thoughtscomplete thoughts—linked to the Criteria and Key Factors

• Designate each comment as a Strength (+) or an Opportunity for Improvement (OFI) (–)

• An OFI should be written for any Area that is not addressed


Item 1.1 Organizational Leadership

• Basic Item Requirement– “Describe how senior leaders guide your

organization, including how they review organizational performance”

• Key Factors may include– Type of organization (public, private,industry)– Number of locations or sites– Mission, Vision, Values, other cultural context– Customers and Markets– Key suppliers, partners, vendors


Item 3.2 Customer Relationships & Satisfaction

• Basic Item Requirement– “Describe how your organization builds

relationships to acquire, satisfy, and retain customers, …”

• Key Factors may include– Customer and Market segments– Main products and services delivered, and their

delivery processes– Mission, Vision, Values


Examples of Comments

• Item 1.1b (+) The Leadership Team uses a dashboard of performance measures, e.g., Customer Satisfaction, Customer Complaints, and Market Share, to review how well the organization is operating and to identify priorities for improvement and opportunities for innovation.

• Item 3.2a (–) Although the applicant offers access to its customers via telephone, it is not apparent that it has an approach in place for determining whether its key access mechanisms are sufficient for current or potential customers who are seeking information or who wish to make complaints.


Evaluating Results Items


Results

• Results document how the applicant measures its performance– Over time,– Against competitors’ performance, and– Against relevant comparative data

• Essentials to reporting Results– Clearly relate to the organization’s Key FactorsKey Factors– Reveal current levelscurrent levels– Show trendstrends– Contain appropriate comparisonscomparisons


Writing Comments on Results

• Address the following questions– Is trend positive or negative? What is desirable

direction? Are explanations provided for significant changes?

– Are all important results presented? Are there any gaps in the data?

– Is the amount of data provided sufficient?– Are data appropriately segmented?– Do data represent both short- and long-term

priorities?– Are comparative data presented, and are they

appropriate?– Are data normalized?

(Guidance, p. 11)


Item 7.2 Financial & Market Results

• Basic Item Requirement– “Summarize your organization’s key financial and

marketplace performance results by market segments, as appropriate. Include appropriate comparative data.”

• Key Factors may include– Number and type of competitors– Key strategic challenges– Long-term strategic objectives, such as growth


Examples of Results Comments

• Item 7.2 (+) Average Assets (Figure 7.2-4) have grown more than ten times since 1995, indicating the applicant’s strategy of Branch Growth (Figure 7.2-5) is putting it on track to achieve its strategic objective of $3 billion in assets by 2004.

• Item 7.2 (–) The applicant does not segment its financial results by customer segments, products and services, or business areas. From the results provided, the applicant may not be able to determine how well it is progressing in its key strategy of increasing Internet-based business …

(Guidance, p. 11)


Team Exercise


TriView National Bank Case Study

• Prepared for use in the 2001 MBNQA Examiner preparation course

• A sample application written for a fictitious financial services institution applying for the Baldrige award


Exercise Instructions

• You will be grouped into teams• Allotted time: 45 minutes• Identify a Timekeeper, Leader, Recorder,

and Reporter• Prepare

– Review the relevant Criteria• Identify key Criteria requirements

– Read the excerpts from the application• Note the results reported

– Read the already-completed Key Factors Worksheet


Instructions cont’d

• Evaluate application to Criteria and prepare the Item Worksheet

– Select 4-6 most important Key Factors for the Item*

– Write one Strength comment*– Write one OFI comment*– Record the “*” on flip charts


Instructions cont’d

• Report Out– Key Factors– One strength comment– One OFI comment– Observations?


Questions?


References

• 2001 Criteria for Performance Excellence. Baldrige National Quality Program (BNQP), National Institute of Standards and Technology, Gaithersburg (NIST), MD.

• 2001 Guidance for Producing a Well-Written Scorebook. BNQP, NIST, Gaithersburg, MD.

• 2001 TriView National Bank Case Study Packet, including Scorebook and Feedback Report. Prepared by BNQP. Available from the American Society for Quality, Milwaukee, WI.


Handout at Beginning

• From 2001 Business Criteria for Performance Excellence– Criteria for Item 7.1, Category and Item

Description for Item 7.1, Scoring Guidelines, Comment Guidelines

• From TriView Application– Item 7.1 Response

• From TriView Scorebook– Key Factors Worksheet

• From Blank Scorebook– Item 7.1 Worksheet


Handout after Report-out

• From TriView Scorebook– Recommended Scoring Range for Item 7.1

is 15–25– Key Themes, “c”– Item 7.1 Customer-Focused Results


Contact Info

• Cheryl Jennings can be reached at [email protected]

• Lynn Kelley can be reached at [email protected]

June 2002QPRC 2002, Tempe, Arizona A Workshop on Assessing to the Baldrige Criteria Cheryl L....

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