Transcript Using National Awards for Excellence to Drive and Monitor

Using National Awards for
Excellence to Drive and Monitor
Performance*
Milton J. Kowalewski, Jr., ASQ Fellow
2011 ASQ Salt Lake Section 0615
Annual Symposium
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*Juran’s Quality Handbook, Sixth EditionChapter 17 (2010) James Er Ralston
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History of National Awards
• Deming Prize introduced in Japan in 1950s
• Malcolm Baldrige National Quality Award in
United States of America in 1987
– Malcolm Baldrige was the Secretary of Commerce
in the U.S. from 1981 to 1987 and a proponent of
quality management. Public Law 100-107 was
signed by President Reagan in 1987. The National
Institute of Standards and Technology (NIST)
oversees it. ASQ helps administer it.
• EFQM, the European Quality Award in 1988
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Baldrige Award Applications by year 1988-2008
120
The recent increase is
attributable to new sectors in
education and health care-1997,
and nonprofits (including
government) in 2006
100
80
60
Baldrige Award
Applications
40
Linear (Baldrige Award
Applications)
20
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2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
0
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Note: 1300
Organizations have
applied since 1988
3
Other awards
• In the U.S. state, local and regional awards
account for 217 to 1,015 applications from
1991 to 1999
• Since then the number of applications have
declined to 167 in 2008
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US State, regional and local award applications
1200
1000
800
State, regional and local
award applications
600
Linear (State, regional
and local award
applications)
400
200
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2007
2005
2003
2001
1999
1997
1995
1993
1991
0
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Alliance for Performance Excellence
• The Alliance is a membership organization of US
groups involved in performance excellence award
programs formed in 2003
• They represent over 50 awards across the U.S.
• However, 17 of the 50 US states are not affiliated
• Utah is renewing their efforts to give awards
again through the Utah Quality Council that
meets regularly at SLCC. If you are interested in
participating contact me at [email protected]
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Changes in Baldrige Criteria
1988 Baldrige Categories
2009 Baldrige Categories
Leadership
Leadership
Information and Analysis
Strategic planning
Strategic quality planning
Customer focus
Human resource utilization
Measurement, analysis, and knowledge
management
Quality assurance of products and
services
Workforce focus
Results from quality assurance products
and services
Process management
Customer satisfaction
Results
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2009 Baldrige changes
• Increased focus on customer engagement, and
the ability to identify and deliver relevant product
offerings to customers now and in the future;
• Probing the contribution to societal
responsibilities, including environmental, social,
and economic systems;
• Probing of the relationship of core competencies
to mission, strategy, and sustainability.
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Hedgehog Concept
• Jim Collins, in his book “Good to Great”, 2001
cautions us about our core competencies, he
says, “Just because something is your core
business-just because you have been doing it for
years or perhaps decades-does not necessarily
mean that you can be the best in the world at
it…The good-to-great companies understand that
doing what you are good at will only make you
good: focusing solely on what you can potentially
do better than any other organization is the only
path to greatness.”
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MBNQA
• MBNQA, the Malcolm Baldrige
National Quality Award
recognizes U.S. organizations
for their achievements in
quality and business
performance.
• The award raises awareness
about the importance of
quality and performance
excellence as a competitive
strategy.
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MBNQA
• To receive the award, an organization must
have a role-model organizational management
system that ensures continuous improvement
(the goal of ISO 9001) in the delivery of
products and/or services, demonstrate
efficient and effective operations, and provide
a way of satisfying and responding to
stakeholders.
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STAKEHOLDER MANAGEMENT*
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*Philip J. Kangas, "Stakeholder
Management 101," Quality Progress,
March 2011, p. 72.
13
Engage stakeholder advocates to drive
success!
1. Identify/assess stakeholders
2. Engage high-influence/high stake advocates
3. Periodically assess stakeholders
a)
b)
c)
d)
RFP/ Procurement Phase
Contract award
Contract Administration Phase
Project Close-out
Philip J. Kangas, "Stakeholder Management
101," Quality Progress, March 2011, p. 72.
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2x2 MATRIX FOR ANALYSIS
Philip J. Kangas, "Stakeholder Management
101," Quality Progress, March 2011, p. 72.
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Stakeholders
Stakeholders
Project Advocates
and others
Attitude Identification
/Symbol
UDOT
High Influence/Stake
Supporter, plus
STATE OF UTAH
High Influence/Stake
Neutral, zero
CONTRACTORS
High Influence/Stake
Supporter, plus
PASSERS THROUGH
High Influence, Low
Stake
Neutral, zero
FHWA
High Influence, Low
Stake
Supporter, plus
CITIZENS
Low Influence/High
Stake
Supporter, plus
EPA
Low Influence/High
Stake
Detractor, minus
OSHA
Low Influence/High
Stake
Detractor, minus
TOURISTS
Low Influence/Stake
Neutral, zero
Philip J. Kangas, "Stakeholder Management 101," Quality Progress, March 2011, p. 72.
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1. Identify/Assess stakeholders
Philip J. Kangas, "Stakeholder Management
101," Quality Progress, March 2011, p. 72.
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2. Engage high-influence/high stake advocates
Philip J. Kangas, "Stakeholder Management
101," Quality Progress, March 2011, p. 72.
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Stakeholders
Stakeholders
Project Advocates
and others
Attitude Identification Goal: Engage high/Symbol
influence/high stake
advocates for
UDOT
High Influence/Stake
Supporter, plus
No change
STATE OF UTAH
High Influence/Stake
Neutral, zero
No change
CONTRACTORS
High Influence/Stake
Supporter, plus
No change
PASSERS THROUGH
High Influence, Low
Stake
Neutral, zero
Neutral to Supporter
role
FHWA
High Influence, Low
Stake
Supporter, plus
No change
CITIZENS
Low Influence/High
Stake
Supporter, plus
No change
EPA
Low Influence/High
Stake
Detractor, minus
Detractor to Neutral
role
OSHA
Low Influence/High
Stake
Detractor, minus
Detractor to Neutral
role
TOURISTS
Low Influence/Stake
Neutral, zero
Neutral to Supporter
role
Philip J. Kangas, "Stakeholder Management 101," Quality Progress, March 2011, p. 72.
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3. Periodically assess stakeholders
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*Philip J. Kangas, "Stakeholder
Management 101," Quality Progress,
March 2011, p. 72.
20
MBNQA
• Awards are presented annually in six
categories of eligibility;
1. manufacturing,
2. service,
3. small business,
4. education,
5. health care, and
6. nonprofit.
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The organizational profile at the top establishes the context for the way
an organization operates. The system operations are in the center and
are composed of six Baldrige categories that define the operations and
the results achieved.
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Leadership triad
1.
2.
3.
Leadership
Strategic planning
Customer focus
These emphasize the
importance of leadership
focus on strategy and
customers.
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Results triad
5.
6.
Workforce focus
Process management
7.
Results
These signify that an
organization’s workforce
and key processes
accomplish work of the
organization that yields the
overall performance
results.
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The systems foundation (4) signifies the importance of this category to the effective
management of the organization and to the fact-based knowledge-driven system for
improving performance and competitiveness.
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Application/examination points
possible
1.
2.
3.
4.
Leadership
Strategic planning
Customer focus
Measurement,
analysis, and
knowledge
management
5. Workforce focus
6. Process management
7. Results
1.
2.
3.
4.
120 points
85 points
85 points
90 points
5. 85 points
6. 85 points
7. 450 point
Total= 1000 points
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There are 11 core values and concepts
embodied in the criteria
Values and Concepts
1. Visionary leadership
2. Customer-driven excellence
3. Organizational and personal learning
4. Valuing Workforce members and partners
5. Agility
6. Focus on the future
7. Managing innovation
8. Management by fact
9. Societal responsibility
10. Focus on results and creating value
11. Systems perspective
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The Baldrige Award Process
•
•
•
•
•
•
Eligibility
Application
Application review
Site visit review
Judge’s review
Award recipients
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2010 Winners
• Healthcare (one):
– Advocate Good Samaritan Hospital, IL-4100
associates total
• Small Business (three):
– Freese and Nicols Inc., TX-450 employees-1st
Architectural & Engineering Co.
– K&N Management, TX burgers, 7 restaurants
– Studer Group, FL-130 employees-won FL state
award in 2007
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2010 Winners
• Education (one):
– Montgomery County Public Schools, MD-144,000
students, 200 schools, from 160 countries, speaking
130 languages, with 22,230 employees, and 11,670
teachers, WOW!
• Manufacturing (two):
– Nestle Purina Petcare Co., MO-7228 employees, 23
plants
– MEDRAD Medical Instruments, PA-2200 employees,
$625MM in revenues, 2003 Baldrige Winner
• Nonprofit (none)?
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Previous Winners by State
2009-MO(3), NJ, NM
2008-MN, NC, CO
2007-OH, WI, CA, FL, US, NJ
2006-OK, CA, MS
2005-MN, LA, TX (2), OK, MI
2004-OK, TX (NAMEPLATE-2nd Award), CO, NJ
2003-PA (MEDRAD-1st Award), MO (2), TN, PA, IL FL
2002-IL, TX, MO
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Previous Winners by State
2001-TX, TN, AK, NY, WI
2000-OH, TX, CO, NM
1999-TX, MN, GA, MN
1998-CA (2), TX (NAMEPLATE-1st Award)
1997-MN, CA, FL, NY
1996-CA, OH, MN, NY
1995-PA, NY
1994-NJ, TX, MO
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Previous Winners by State
1993-TN, NJ
1992-NJ, TX, FL, GA, CA
1991-CA, MN, TX (MARLOWE INDUSTRIES*)
1990-MI, MN, TN, TX
1989-SC, NY
1988-IL, PA, OH
* My employer
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Baldrige Awards in States
23 States, 1 U.S. Award
1988-2010
16
14
14
12
10
8 8 8
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US**
SC
NC
MS
1 1 1 1 1 1 1
MD
OK
IL
CO
TN
OH
PA
NY
FL
NJ
MO
MN
CA
0
TX
2
2 2 2 2
LA
3 3 3
AK
4
4 4
WI
5 5 5
NM
6
STATE
MI
6
GA
8
** Army
34
State Awards
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“Quality is the result of a carefully constructed cultural environment.
It has to be the fabric of the organization, not part of the fabric.”
– Phillip Crosby
http://award.tmf.org/Home.aspx
Texas Health Care Quality Improvement Award
Texas Health Care Quality Improvement Award program for Texas hospitals is being sponsored again in 2010 – 2011 by TMF Health Quality Institute. TMF, the Medicare
quality improvement organization for Texas, established the awards program in partnership with the Texas Hospital Association, Texas Organization of Rural and Community
Hospitals, Texas Medical Association and Texas Osteopathic Medical Association. This non-competitive award program is designed to build on the quality of care that you
already provide for your patients.
Evidence of the 2008 - 2009 award program’s success:
Out of approximately 375 hospitals in Texas, 227 nominated themselves for the award.
Of the 227 hospitals, 93 met the award criteria to qualify, with 27 receiving the highest award, the Award of Excellence, and 66 receiving the Quality Improvement
Achievement Award.
Hospitals were presented with their awards in a formal ceremony in Austin on August 27, 2009, with 181 hospital professionals attending. In addition to postings on the
TMF website, award recipients were recognized in the media over 90 times, with stories being picked up by major Texas dailies such as the Houston Chronicle, San Antonio
Express-News and Dallas Morning News. Trade publications covering the awards included Texas Medicine, Texas Family Physician and the Texas DO, as well as newsletters for
the Texas Hospital Association, Texas Organization of Rural and Community Hospitals (TORCH) and the Texas Association for Healthcare Quality. Online publications also
covered the awards. These included Yahoo Financial News, NewsRx, Nurse.com, and News-Journal.com among others.
This year’s award program will again has criteria specific to Critical Access Hospitals. Critical Access Hospitals enrolled in the award program are working on improving care
related to heart failure and pneumonia.
For Inpatient Prospective Payment System (IPPS) acute care hospitals, the award program is again based on improving care related to acute myocardial infarction, heart
failure, pneumonia and the surgical care improvement project (SCIP).
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Quality Texas Foundation
Nineteen 2011 Awards [* Highest Award]
Business Name
Category*
Baylor Medical Center at Irving
Texas Award for Performance Excellence*
City of Irving
Texas Award for Performance Excellence*
Cook’s Children Healthcare Systems
Texas Award for Performance Excellence*
Mesquite Independent School District
Texas Award for Performance Excellence*
Weatherford Independent School District
Texas Award for Performance Excellence*
Alamo Colleges
Achievement Level
Baylor Heart and Vascular Center, LLP
Achievement Level
Hill County Memorial
Achievement Level
Medical Center of Louisville
Achievement Level
St. Philip’s College
Achievement Level
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QualityTexas Foundation
2011 Awards
Business Name
Category
Baylor All Saints Medical Center
Progress Level
Methodist Health Systems
Progress Level
Texas Department of Licensing and
Regulation
Progress Level
Goodwill Industries of Central Texas
Commitment Level
Keller Independent School District
Commitment Level
Medical Center Health System
Ector County Hospital District
Commitment Level
Texas Property and Casualty Insurance
Guaranty Association
Commitment Level
Texas Board of Professional Engineers
Engagement Level
Workforce Solutions for North Central
Texas
Engagement Level
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Utah Quality Awards
2001
1. Varian Medical Systems
2. City of Salt Lake
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European Foundation for Quality
Management (EFQM) Award
EFQM:
• EFQM is a non‐profit foundation, based in
Brussels, Belgium.
• It was formed in 1988 by a group of leading
European organisations.
• They are the custodians of the EFQM Excellence
Model.
• Together with European partners, there are
30,000 member organisations.
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EFQM
Excellent organisations achieve
and sustain superior levels of
performance that meet or exceed
the expectations of all their
stakeholders.
To achieve sustainable success,
EFQM provides guidance through
a set of three integrated
components:
– The EFQM Excellence Model
– The Fundamental Concepts
of Excellence
– RADAR logic
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Fundamental concepts of excellence
Concept
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Definition
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Fundamental concepts of excellence
Concept
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Definition
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Fundamental concepts of excellence
Concept
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Definition
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EFQM Weighting
Enablers
Leadership
(10%)
Results
People (10%)
Processes,
products and
services(10%)
People
Results (10%)
Strategy (10%)
Customer
results (15%)
Partnership &
resources (10%)
Society
results (10%)
Key Results
(15%)
Learning, creativity and innovation
The EFQM Excellence Model Criteria contains five enabling
categories and four results categories. Similar to Baldrige they
are weighted in a manner showing balance between the
approaches and the results categories.
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The EFQM Award Process
•
•
•
•
•
•
•
Qualification
Application
Application assessment
Site visit assessment
Jury selects finalists
Jury selects best performers
If applicant is really outstanding the jury
declares them as the award winner
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Award Levels
• Commited to Excellence is the beginning Award
• Recognized for Excellence is the next level
awarded to those well on their way to
organizational excellence
– In 2006: 5, 4 and 3 star recognition was started based
on more than 500, 400 and 300 point assignments,
respectively
• The EFQM Excellence Award is the highest level
of award
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Year
No. of EFQM Finalists
1992
No. of EFQM Prize Winners
No. of EFQM Award Winners
3
1
1993
2
1
1
1994
2
2
1
1995
3
1
1
1996
3
3
1
1997
4
4
2
1998
10
7
3
1999
18
5
4
2000
11
8
3
2001
14
5
2
2002
9
6
1
2003
6
9
4
2004
3
9
2
2005
5
9
2
2006
7
6
4
2007
8
3
4
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EFQM Awards by Country
1992 to 2007
Award Winners
15
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1
1
1
1
1
Greece
Switzerland
Finland
Hungary
2
Award Winners
Spain
2
France
2
Belgium
2
Denmark
Germany
Turkey
3
Italy
5
UK
16
14
12
10
8
6
4
2
0
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The Deming Prize
The Deming Prize was established by the
Japanese Union of Scientists and Engineers
(JUSE) in 1951 in honor of his contributions to
statistical quality control in Japan after WWII.
There are four categories of recognition:
1. The Deming Prize for individuals
2. The Deming Distinguished Service Award for
Dissemination and Promotion (overseas) by an individual
3. The Deming Application Prize for organizations
4. The Quality Control Award for Operations Business Units
of an organization
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Deming Prize
• Originally it was designed to recognize
Japanese organization for major advances in
quality improvement
• Today it is available to non-Japanese
organizations and individuals who have made
major contributions to the advancement of
quality
• The Deming Prize committee conducts the
examination and awards the prizes
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1951
1952
1953
1954
1955
1956
1957
1958
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989*
1990
1991
1992
1993
1994*
1995
1996
1997
1998
1999
2000
2001*
2002*
2003*
2004*
2005*
2006*
2007*
2008*
Deming Prizes 1951 to 2008
[*includes outside of Japan]
9
8
7
6
5
4
Prizes
3
2
1
0
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Other Quality Awards
• GEM
– Global Excellence Model Council
– Made up of chief executives of several national quality
award programs
– Members include:
•
•
•
•
•
•
•
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Australian Business Excellence Awards
EFQM Excellence Awards (Europe)
Ibero-American Excellence Award (Brazil, Mexico, Spain, et.al.)
CII-EXIM Bank Award for Business Excellence (India)
Japan Quality Award
Singapore Quality Award
MBNQA (U.S.)
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GEM
• Mission
– Maintain a leading edge position on Excellence
models
– Senses business trends and external factors that
impact Excellence Awards
– Explores opportunities for new products and
activities
– Coordinates and shares specific award activities
– http://www.excellencemodels.org/
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FUNDIBEQ
• Ibero-American Foundation for Quality
Management (March 1998)
• Promotes the Ibero-American Excellence Model
for Management (IEM)
• Sponsors the Ibero-American Quality Award
– Facilitates opportunities to “take a big step towards
greater and more compact competitiveness”.
– Partners include: Argentina, Brazil, Chile, Columbia,
Cuba, Dominican Republic, Ecuador, Mexico, Paraguay,
Peru, Portugal, Spain, Uruguay, and Venezuela.
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State and Quality Awards
Award
Year
Award
Year
Award
Year
Alabama
1980
Arkansas
1997
New Hampshire
1997
Maryland
1980
Arizona
1997
New Jersey
1997
New Mexico
1980
California
1997
Oklahoma
1997
Nevada
1980
Georgia
1997
Oregon
1997
Virginia
1980
Idaho
1997
Rhode Island
1997
Wyoming
1986
Iowa
1997
S. Carolina
1997
Connecticut
1987
Illinois
1997
Texas
1997
Delaware
1992
Kansas
1997
Utah
1997
Florida
1992
Kentucky
1997
Vermont
1997
Maine
1992
Louisiana
1997
Washington
1997
Massachusetts 1992
Michigan
1997
Wisconsin
1997
Minnesota
1992
Missouri
1997
Indiana
1997
New York
1992
Mississippi
1997
Ohio, Colorado
2000
N. Carolina
1992
Nebraska
1997
Pennsylvania,
Alaska
2000
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Newsflash
• The benefit of state award programs is that from
1996 to 2009, 41 of the 55 Baldrige Award
recipients were also state award recipients
• The Joint Commission on Accreditation of
Healthcare Organizations (JCAHO) provides
accreditation services to hospitals and other
health care services
– Providers have found that participation in Baldrige
programs has enhanced their standing and ability to
maintain Joint Commission accreditation
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Local and Regional Awards
Award
Year
Memphis, Tennessee
1997
Austin, Texas
1997
Lancaster, Pennsylvania
1997
Pittsburgh, Pennsylvania
1997
Philadelphia, Pennsylvania
1997
Houston, Texas
1997
Western Texas
1997
Cincinnati, Ohio
1997
Dayton, Ohio
1997
Colorado Springs, Colorado
1997
Rocky Mountain Quality Award, Denver, Colorado
1980
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Some more local and regional award
programs as of 2010
Pioneer Valley Business Excellence Award of the Affiliated Chambers of Commerce of
Greater Springfield, Massachusetts
Organizations of Noteworthy Excellence (ONE) Awards, a local program for nonprofits
in Cincinnati, Ohio
Memphis Regional Chamber Quality Cup Award, a regional award program sponsored
by the Mid-South Quality Productivity Center in Tennessee
Performance Excellence Association of Mid-South-PerF, a local award program for
large and small businesses and organizations in the Greater Memphis and tristate
areas of Tennessee
University of Texas Center for Performance Excellence Program, a regional award
program in Texas
Connecticut Award for Excellence (CAFE)
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International Awards
Country/Region
Award Name
Year Founded
Website Address
Australia
Australian Business
Excellence Awards
1998
www.saiglobal.com/improv
ement/business-excellenceawards
Canada
Canada Awards for
Excellence
1992
http://www.nql.ca/
China
National Quality Award
2001
http://nqa.csd.org.tw/eng/
main.htm
Egypt
The National Awards for
Excellence
2005
www.nationalawardseg.com
Europe
EFQM Excellence Award
1988
www.efqm.org
Hungary
National Quality Prize
1996
None
Ibero-American
Ibero-American Excellence
Award
2000
http://www.fundibeq.org/E
nglish/ingles2.html#subir
India
CII-EXIM Bank Award for
Business Excellence
1994
http://www.cii-iq.in/CIIEXIM%20Bank%20Award%2
0for%20Excellence.htm
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International Awards (cont’d.)
Country/Region
Award Name
Year Founded
Website Address
India
Rajiv Gandhi National
Quality Award
1991
http://www.bis.org.in/other
/rgnqa_geninfo.htm
Jamaica
National Quality Award
Japan
Deming Prize
1951
http://www.juse.or.jp/e/de
ming/
Japan
Japan Quality Award
1995
www.jqac.com/website.nsf/
newmainpagee?openpage
Romania
Joseph M. Juran Romanian
Quality Award
2000
None
Singapore
Singapore Quality Award
1994
www.spring.gov.sg/sqa.aspx
Sri Lanka
Sri Lanka National Quality
Award
1995
http://www.fnsf.ac.lk/slsi/tr
aining/National%20Quality
%20Awards.html
U.S.
MBNQA
1987
www.quality.nist.org
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pro.htm
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Questions and Answers
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