Transcript Workshop on Assessing to the Baldrige Criteria

A Workshop on Assessing to the
Baldrige Criteria
Cheryl L. Jennings, Motorola
Lynn Kelley, Textron
June 2002
QPRC 2002, Tempe, Arizona
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
June 2002
QPRC 2002, Tempe, Arizona
Outline
• Performance Excellence Criteria
• The Application Evaluation Process
– The Scorebook
– Writing Feedback Comments
•
•
•
•
Evaluating Results Items
Team Exercise
Report Out
Q&A
June 2002
QPRC 2002, Tempe, Arizona
The Criteria for Performance
Excellence
June 2002
QPRC 2002, Tempe, Arizona
Performance Excellence
• An integrated approach to
organizational performance
management that results in
– Delivery of ever-improving value to
customers, contributing to marketplace
success;
– Improvement of overall organizational
effectiveness and capabilities; and
– Organizational and personal learning
June 2002
QPRC 2002, Tempe, Arizona
(Criteria, p. 1)
Criteria Framework: A Systems Perspective
June 2002
QPRC 2002, Tempe, Arizona
(Criteria, p. 5)
Categories/Items and Point Values
1 Leadership
1.1 Organizational Leadership
1.2 Public Responsibility & Citizenship
2 Strategic Planning
2.1 Strategy Development
2.2 Strategy Deployment
3 Customer & Market Focus
3.1 Customer & Market Knowledge
3.2 Customer Relationships & Satisfaction
4 Information & Analysis
4.1 Measurement & Analysis of Organizational Performance
4.2 Information Management
5 Human Resource Focus
5.1 Work Systems
5.2 Employee Education, Training & Development
5.3 Employee Well-Being & Satisfaction
6 Process Management
6.1 Product & Service Processes
6.2 Business Processes
6.3 Support Processes
7 Business Results
7.1 Customer-Focused Results
7.2 Financial & Market Results
7.3 Human Resource Results
7.4 Organizational Effectiveness Results
TOTAL POINTS
June 2002
QPRC 2002, Tempe, Arizona
120
80
40
85
40
45
85
40
45
90
50
40
85
35
25
25
85
45
25
15
450
125
125
80
120
1000
(Criteria, p. 9)
Item Format
June 2002
QPRC 2002, Tempe, Arizona
(Criteria, p. 47)
The Application Evaluation
Process
June 2002
QPRC 2002, Tempe, Arizona
Baldrige Award Process
Receive applications
Stage 1
Independent Review
Judges select for
Consensus
Review?
No
Feedback report
to applicant
No
Feedback report
to applicant
Stage 2
Consensus Review
Judges select for
Site Visit Review?
Stage 3
Site Visit Review
Stage 4
Judges recommend Award
recipients to
NIST Director/DOC
June 2002
QPRC 2002, Tempe, Arizona
Feedback report
to applicant
(Feedback, p. 2)
Independent Review—Scorebook
• Key Factors (KFs)
– Concise summary of most important aspects of
organization
• Organizational and Competitive environments
• Key working relationships
• Key strategic challenges
• Key Themes
– Overall summary of key points in application
• Most important strengths identified
• Most significant opportunities (OFIs) identified
• Most significant strengths and/or OFIs in Results
• Item Worksheets
– Single, complete comments linked to Criteria and KFs
June 2002
QPRC 2002, Tempe, Arizona
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
June 2002
QPRC 2002, Tempe, Arizona
Developing Worksheet Comments
• Read the Criteria requirements for the Item
• Read the applicant’s response against the
Criteria
• Identify the Key Factors relevant to the Item
• Develop and write 6–10 comments—single,
complete 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
June 2002
QPRC 2002, Tempe, Arizona
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
June 2002
QPRC 2002, Tempe, Arizona
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
June 2002
QPRC 2002, Tempe, Arizona
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.
June 2002
QPRC 2002, Tempe, Arizona
Evaluating Results Items
June 2002
QPRC 2002, Tempe, Arizona
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 Factors
Reveal current levels
Show trends
Contain appropriate comparisons
June 2002
QPRC 2002, Tempe, Arizona
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?
June 2002
QPRC 2002, Tempe, Arizona
(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
June 2002
QPRC 2002, Tempe, Arizona
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 …
June 2002
QPRC 2002, Tempe, Arizona
(Guidance, p. 11)
Team Exercise
June 2002
QPRC 2002, Tempe, Arizona
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
June 2002
QPRC 2002, Tempe, Arizona
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
June 2002
QPRC 2002, Tempe, Arizona
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
June 2002
QPRC 2002, Tempe, Arizona
Instructions cont’d
• Report Out
– Key Factors
– One strength comment
– One OFI comment
– Observations?
June 2002
QPRC 2002, Tempe, Arizona
Questions?
June 2002
QPRC 2002, Tempe, Arizona
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.
June 2002
QPRC 2002, Tempe, Arizona
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
June 2002
QPRC 2002, Tempe, Arizona
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
June 2002
QPRC 2002, Tempe, Arizona
Contact Info
• Cheryl Jennings can be reached at
[email protected]
• Lynn Kelley can be reached at
[email protected]
June 2002
QPRC 2002, Tempe, Arizona