Transcript Malcolm Baldrige National Quality Award - DAMA

Baldrige 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
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Baldrige Performance Excellence
The Role of Information and
Analysis
Self-Assessment
Role Model Characteristics
Future Challenges
Baldrige National Quality Program
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
Baldrige National Quality Program
“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
Baldrige National Quality Program
Criteria for Performance
Excellence
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An assessment tool
Seven Category integrated framework
Updated regularly
Baldrige National Quality Program
Baldrige National Quality Program
Category Point Values (2001)
1
2
3
4
5
6
7
Leadership
125 120
Strategic Planning
85
Customer and Market Focus 85
Information and Analysis
85 90
Human Resource Focus
85
Process Management
85
Business Results
450
Baldrige National Quality Program
Information and Analysis
(2001)
4.1
4.2
Measurement and Analysis
of Organizational
Performance
Information Management
`
•Performance Management
•Data Availability
•Performance Analysis
•Hardware and Software Quality
Baldrige National Quality Program
Why Self-Assess?
Drivers
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Customers/competitors drive need to
change
Industry in state of flux
Maintain leadership position
Keep business healthy
Baldrige National Quality Program
Why Self-Assess?
Benefits
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Jump start a change initiative.
Energize existing improvement initiatives.
Focus the organization on common goals.
Align improvement efforts.
Baldrige National Quality Program
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.
Baldrige National Quality Program
Step 1 - Define the Organization
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Purpose: Ensure “doable” improvements
and consistent data collection.
Process: Determine breadth of inquiry.
Indicate on org. chart.
Baldrige National Quality Program
Step 2 - Decide on Format
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Purpose: Clarify expectations and
resources.
Process: Determine if oral/written and what
steps to use.
Baldrige National Quality Program
Step 3 - Write Organizational
Profile
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Purpose: Describe what is relevant and
important; ensure common understanding;
guide selection of info/data.
Process: Review directions.
Draft response.
Reach consensus.
Finalize.
Baldrige National Quality Program
Step 3 - Write Profile (Cont’d.)
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Basic description of the organization
- Organizational Environment
- Organizational Relationships
- Competitive Situation
- Strategic Challenges
- Performance Improvement System
Baldrige National Quality Program
Step 3: Write Profile (Cont’d.)
Basic Description
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products/services
organizational
context/culture
employees/staff - ed.
level, diversity,
bargaining units,
contracts, safety
requirements
equipment, facilities,
technologies used
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regulatory
environment
customer
groups/market
segments
suppliers/dealers
and relationships
Baldrige National Quality Program
Step 3: Write Profile (Cont’d.)
Competitive Situation
and Strategic Challenges
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Numbers/types of competitors and key
collaborators
Position (relative size/growth) in your sector
Principal factors determining competitive
success
Changes affecting competition
Baldrige National Quality Program
Step 3: Write Profile (Cont’d.)
Performance
Improvement System
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Approach to systematic evaluation and
improvement
Organizational learning and knowledge
sharing
Baldrige National Quality Program
Value of Baldrige to U.S.
Business
Extremely/Very Valuable
(%)
Stimulating Quality
79
Improvement
Stimulating Competitiveness
Improvement
67
Baldrige National Quality Program
Stock Study Results
% Return on Investment
1200
1000
800
Award Recipients
S&P 500
Morningstar
600
400
200
0
All Recipients
1988-98
Whole Company
Recipients 1988-98
Site Visited 1990-98
Baldrige National Quality Program
Role Model Behavior
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Effective, systematic approach
Well deployed
Evaluation, improvement, and learning in
place
Alignment across Categories and with
organizational needs
Baldrige National Quality Program
1999 & 2000 Award Process Mean Item Percentage
Scores: All Business Categories (Stage 1 and
Award Recipients)
70.00
Mean Percentage Scores
60.00
50.00
40.00
30.00
Award Recipients
20.00
10.00
Stage 1
0.00
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
Baldrige National Quality Program
Baldrige Role Model
Characteristics
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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)
Baldrige National Quality Program
“The task of the leader is to get people from where
they are to where they have not been.”
Henry Kissinger
Baldrige National Quality Program
Greatest Improvements
Award Recipients vs. Stage 1
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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)
Baldrige National Quality Program
Needs Greatest Improvements
Stage 1 Applicants
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Supplier and Partner Results (7.4)
Human Resource Results (7.3)
Organizational Effectiveness Results (7.5)
Baldrige National Quality Program
1999 & 2000 Award Process Mean Item Percentage Scores: All
Business Categories (Stage 1 and Award Recipients)
70.00
60.00
Mean Percentage Scores
50.00
40.00
30.00
20.00
The slippery slope of
performance!
Award Recipients
Stage 1
10.00
0.00
1.1
1.2
2.1
2.2
3.1
3.2
4.1
4.2
5.1
5.2
Item
5.3
6.1
6.2
6.3
7.1
7.2
7.3
7.4
7.5
Baldrige National Quality Program
The Results Imperatives
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Tied to Business and Customer Requirements
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Tied to Key Processes
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Tied to Strategy and Action Plans
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Track Levels and Trends
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Linked to Company-Level Information and
Analyses
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Actionable!
Baldrige National Quality Program
1999 Lessons Learned
Common Themes
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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