Transcript Document 7169998

Using the Baldrige Criteria for Performance
Excellence as a Framework for Teaching
Service Quality
Annual Meeting of the Service Management
and Science Forum
August 5, 2013
Las Vegas, Nevada
Jim Salsbury
McCallum Graduate School of Business
Bentley University
The Malcolm Baldrige
National Quality Award
Criteria for Performance
Excellence
A structured approach to addressing
key customer requirements and key
operational requirements…built
around cycles of learning
What Is the History of the
Program?
The Malcolm Baldrige National Quality
Improvement Act of 1987, Public Law 100-107
• Created Award program to
– identify/recognize role model businesses
– establish criteria for evaluating improvement efforts
– disseminate/share best practices
• Expanded to health care, education, and not-forprofit
Who Can Apply for the
Baldrige Award?
• Manufacturing
• Service
• Small business
(manufacturing or service)
• Education
• Health care
• Not-for-profit
What Is 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

organizational and personal learning
What are The Criteria?
• Set of expectations or requirements
• Structured approach to performance
improvement
• Framework for a systems view of
performance management
• Based upon a set of core values
• Provide a common language
Criteria Key Characteristics
• The Criteria focus on results.
• The Criteria are non-prescriptive and
adaptable.
• The Criteria support a systems
perspective.
• The Criteria support goal-based
assessment and diagnosis.
Core Values and Concepts
• Visionary Leadership
• Customer Driven
Excellence
• Organizational &
Personal Learning
• Valuing Workforce
Members & Partners
• Agility
• Focus on the Future
• Managing for
Innovation
• Management by Fact
• Societal Responsibility
• Focus on Results &
Creating Value
• Systems Perspective
The Baldrige Criteria Categories
1.
2.
3.
4.
Leadership
Strategic Planning
Customer Focus
Measurement, Analysis, and
Knowledge Management
5. Workforce Focus
6. Operations Focus
7. Results
2011-2012 Criteria Item Listing
1. Leadership (120 points)
5. Workforce Focus (85 points)
1.1 Senior Leadership (70)
5.1 Workforce Environmenet (45)
1.2 Governance & Social Responsibility (50)
5.2 Workforce Engagement (40)
2. Strategic Planning (85 points)
6. Operations Focus(85 points)
2.1 Strategy Development (40)
6.1 Work Systems (45)
2.2 Strategy Implementation (45)
6.2 Work Processes (40)
3. Customer Focus (85 points)
7. Business Results (450 points)
3.1 Voice of the Customer (45)
7.1 Product and Process Outcomes (120)
3.2 Customer Engagement (40)
7.2 Customer-Focused Outcomes (90)
4. Measurement, Analysis, and Knowledge
Management (90 points)
4.1 Measurement, Analysis & Improvement of
Organizational Performance (45)
7.3 Workforce-Focused Outcomes (80)
7.4 Leadership and Governance Outcomes
(80)
7.5 Financial and Market Outcomes (80)
4.2 Management of Information, Knowledge
& Information Technology (45)
Total Points 1000
The Baldrige Framework –
A Systems Perspective
Organizational Profile:
Environment,
Relationships, and Strategic
Situation
2
Strategic
Planning
5
Human
Resource
Focus
1
Leadership
7
Results
3
Customer
Focus
6
Operations
Focus
4
Measurement, Analysis, and Knowledge Management
Three Dimensional
Award Scoring System
• APPROACH
• DEPLOYMENT
• RESULTS
(HOW)
(WHERE)
(QUANTITATIVE
MEASURES)
Approach
• Approach refers to HOW an organization
addresses the item requirements--the
method(s) used. Approaches can be
policies, procedures, processes, systems,
or practices.
Effective Approaches
•
•
•
•
•
•
•
•
Appropriate
Fact-based
Prevention-oriented
Repeatable
Systematic
Well-integrated
Continuously improved
Innovative
Deployment
• Deployment refers to the extent to which
the organization’s approach is applied to
all requirements of the item.
Full Deployment
A fully deployed approach is used for all
relevant and important:
• Business requirements and work units
• Transactions and interactions with
customers, suppliers and the public
• Internal processes, activities, facilities
and employees
Results
• Results refer to outcomes in achieving the
purposes given in the Item.
World-Class Results
• Compare favorably to levels achieved by
industry or world leaders
• Are derived from Approach-Deployment
• Show high quality results
• Show steady or sustained improvement
• Are important to customer, product &
service, market, process, and action plan
performance identified in Org. Profile and
Items 1-6
MBNQA Winners
2012 Winners
• Lockheed Martin Missiles and Fire Control
(manufacturing)
• MESA Products Inc. (small business, mfg)
• North Mississippi Health Services (health care)
• City of Irving (nonprofit)
2012 Best Practices:
• Maury Regional Medical Center (strategic
planning, workforce focus)
• Northwest Vista College (leadership, customer
focus)
• PricewaterhouseCoopers Public Sector Practice
(leadership, workforce focus)
MBNQA Winners
2011 Winners
•
•
•
•
Concordia Publishing House (nonprofit)
Henry Ford Health System (health care)
Schneck Medical Center (health care)
Southcentral Foundation (health care)
MBNQA Winners
2010 Winners
• MEDRAD (manufacturing
• Nestlé Purina PetCare Co. (manufacturing)
• Freese and Nichols Inc. (small business,
consulting
• K&N Management (small business, restaurants)
• Studer Group (small business, consulting)
• Advocate Good Samaritan Hospital (heath care)
• Montgomery County Public Schools (education)
MBNQA Winners
2009 Winners
• Honeywell Federal Manufacturing &
Technologies (manufacturing)
• MidwayUSA (small business, catalog/internet
retailer)
• AtlantiCare (health care)
• Heartland Health (health care)
• VA Cooperative Studies Program Clinical
Research Pharmacy Coordinating Center
(nonprofit, clinical trials)
MBNQA Winners
2008 Winners
• Cargill Corn Milling North America
(manufacturing)
• Poudre Valley Health System (health care)
• Iredell-Statesville Schools (education)
MBNQA Case Studies
2012 Tillingate Living (Long term medical care)
2011 TriView National Bank (community bank)
2010 NuGrain Laboratories (research)
2009 Nightengale College of Nursing (education)
2007 Share Food (nonprofit food bank)
2006 Arroyo Fresco Community Health Center (medical
clinics)
2005 Landmark Dining (casual dining restaurants)
2004 Sandy Hill School District (public education)
Leadership
1.1
Senior
Leadership
• Senior Leadership
Responsibilities
• Vision, Values, Direction,
Expectations, Communication
• Empowerment and Innovation
• Organizational/Employee
Learning
• Performance/Capability Review
• Use of Results
• Leadership Improvement
1.2
Governance & Societal
Responsibility
• Management Accountability
• Legal & Ethical Behavior &
Business Practices
• Societal Impacts
• Public Concerns
• Support and Strengthen Key
Communities
1.1 Senior Leadership: How do your senior leaders lead? (70 points)
Describe HOW SENIOR LEADERS’ actions guide and sustain your organization. Describe HOW SENIOR LEADERS
communicate with your WORKFORCE and encourage HIGH PERFORMANCE.
Within your response, include answers to the following questions:
a.
VISION, VALUES, and MISSION
(1) VISION and VALUES
How do SENIOR LEADERS set your organization’s VISION and VALUES? How do
SENIOR LEADERS DEPLOY your organization’s VISION and VALUES through your LEADERSHIP SYSTEM, to
the WORKFORCE, to KEY suppliers and PARTNERS, and to CUSTOMERS and other STAKEHOLDERS, as
appropriate? How do SENIOR LEADERS’ actions reflect a commitment to the organization’s VALUES?
(2) Promoting Legal and ETHICAL BEHAVIOR How do SENIOR LEADERS’ actions demonstrate their
commitment to legal and ETHICAL BEHAVIOR? How do they promote an organizational environment
that requires it?
(3) Creating a SUSTAINABLE Organization How do SENIOR LEADERS create a SUSTAINABLE organization?
How do SENIOR LEADERS achieve the following?
• create an Environment for organizational PERFORMANCE improvement, the accomplishment of
your MISSION and STRATEGIC OBJECTIVES, INNOVATION, PERFORMANCE leadership, and organizational
agility
• Create a WORKFORCE culture that delivers a consistently positive CUSTOMER experience and
fosters CUSTOMER ENGAGEMENT
• Create an environment for organizational and WORKFORCE LEARNING
• Develop and enhance their leadership skills
• Participate in organizational LEARNING, succession planning, and the development of future
organizational leaders
b. Communication and Organizational PERFORMANCE
(1) Communication How do SENIOR LEADERS communicate with and engage the entire
WORKFORCE? How do SENIOR LEADERS achieve the following?
• Encourage frank, two-way communication throughout the organization
• Communicate KEY Decisions
• Take an active role in reward and recognition programs to reinforce HIGH
PERFORMANCE and a CUSTOMER and business focus
(2) Focus on Action How do SENIOR LEADERS create a focus on actin to accomplish the
organization's objectives, improve PERFORMANCE, and attain its VISION5 How do SENIOR
LEADERS identify needed actions? How do SENIOR LEADERS include a focus on
balancing VALUE for CUSTOMERS an do other STAKEHOLDERS in their organizational
PERFORMANCE expectations?
1.2 Governance and Societal Responsibilities: How do you govern and fulfill you
societal responsibilities? (50 points)
Describe your organization's GOVERNANCE system and APPROACH to leadership improvement. Describe HOW
your organization ensures legal and ETHICAL BEHAVIOR, fulfills its societal responsibilities, and supports its
KEY communities.
Within your response, include answers to the following questions:
a.
Organizational GOVERNANCE
(1) GOVERNANCE System How does your organization review and achieve the following KEY aspects
of your GOVERNANCE system?
• Accountability for the management’s actions
• Fiscal accountability
• Transparency in operations and selection of and disclosure policies for GOVERNANCE board
members, as appropriate
• Independence in internal and external audits
• Protection of STAKEHOLDER and stockholder interests, as appropriate
(2) PERFORMANCE Evaluation How do you evaluate the PERFORMANCE of your SENIOR LEADERS, including
the chief executive? How do you use these PERFORMANCE evaluations in determining executive
compensation? How do you evaluate the PERFORMANCE of members of your GOVERNANCE board, as
appropriate? How do SENIOR LEADERS and your GOVERNANCE board use these PERFORMANCE reviews to
advance their development and improve both their personal leadership EFFECTIVENESS and that of
your board and LEADERSHIP SYSTEM, as appropriate?
b. Legal and ETHICAL BEHAVIOR
(1) Legal and Regulatory Behavior How do you address any adverse impacts on
society of your products and operations? How do you anticipate public concerns with
current and future products and operations? How do you prepare for these impacts and
concerns in a proactive manner, including conserving natural resources and using
EFFRECTIVE supply-chain management PROCESSES, as appropriate? What are your KEY
compliance PREOCESSES, MEASURES, and GOALS for achieving and surpassing regulatory
and legal requirements, as appropriate? What are your KEY PROCESSES, MEASURES, and
GOALS for addressing risks associated with your products and operations?
(2) ETHICAL BEHAVIOR How does your organization promote and ensure ETHICAL BEHAVIOR in
all interactions? What are your KEY PROCESSES and MEASURES or INDICATORS for enabling
and monitoring ETHICAL BEHAVIOR in your GOVERNANCE structure, throughout your
organization, and in interactions with CUSTOMERS, PARNERS, suppliers, and other
STAKEHOLDERS? How do you monitor and respond to breaches of ETHICAL BEHAVIOR?
c.
Societal Responsibilities and Support of KEY Communities
(1) Societal Well-Being How do you consider societal well-being and benefit as part of
your strategy and daily operations? How do you contribute to the well-being of your
environmental, social, and economic systems?
(2) Community Support How does your organization actively support and strengthen
your KEY communities? What are your KEY communities? How do you identify these
communities and determine areas for organizational involvement, including areas
related to your CORE COMPETENCIES? How do your SENIOR LEADERS, in concert with your
WORKFORCE, contribute to improving these communities?
Leadership
Key Excellence Indicators
•
•
•
•
Strong customer focused strategic vision
Clear, easily remembered values
High visibility
Set aggressive “leapfrog” goals and demonstrate
personal commitment & involvement in quality
• Create and sustain environment for empowerment,
innovation and organizational learning
• Integrate quality values into daily leadership and
management and communicate extensively to all
employees
• Champion for company citizenship
Category 1.0 Leadership (120 points)
Please use the following scale, which is repeated at the top of each page, in selecting
the rating which you think best describes your company’s performance on each of
the questions asked:
0%
Your company doesn’t do this. It is not a function of the organization.
25% Some areas of the company do this, but they don’t do it very well.
50% An effective method has been established, but only some areas of the company
use it.
75% Most areas of the company do this, and they do it well.
100% Our company is well known for doing this better than anyone else in our
industry.
DK
I don’t know the answer to this question.
To what extent....
Have senior leaders clearly described the company’s vision, values, strategy and goals?
(10 points)
DK
0%
25%
50%
75%
100%
Score Point Value
0
0
1
2
3
4
Have senior leaders clearly communicated the company’s vision, values, strategy and
goals to the entire workforce, key suppliers and partners? (10 points)
DK
0%
25%
50%
75%
100%
Score Point Value
0
0
1
2
3
4
Do senior leaders’ personal actions reflect a commitment to the organization’s values?
(10 points)
DK
0%
25%
50%
75%
100%
Score Point Value
0
0
1
2
3
4
Do company values include a strong commitment to customer satisfaction and to
continuous learning throughout the workforce? (10 points)
DK
0%
25%
50%
75%
100%
Score Point Value
0
0
1
2
3
4
Has senior management regularly communicated and reinforced the importance of
satisfying customers and the need for continuous learning throughout the workforce by
their words and their actions? (10 points)
DK
0%
25%
50%
75%
100%
Score Point Value
0
0
1
2
3
4
Do senior leaders encourage frank, 2-way communication throughout the organization?
(10 points)
0%
Your company doesn’t do this. It is not a function of the organization.
25% Some areas of the company do this, but they don’t do it very well.
50% An effective method has been established, but only some areas of the company
use it.
75% Most areas of the company do this, and they do it well.
100% Our company is well known for doing this better than anyone else in our
industry.
DK
I don’t know the answer to this question.
To what extent....
Do all managers concentrate on satisfying the customer, have high performance
expectations and review overall performance against these expectations? (10 points)
DK
0%
25%
50%
75%
100%
Score Point Value
0
0
1
2
3
4
Do most workers focus on satisfying customers and becoming high performers? (10
points)
DK
0%
25%
50%
75%
100%
Score Point Value
0
0
1
2
3
4
Have senior leaders acted to improve the company’s overall performance and make the
organization more competitive? (10 points)
DK
0%
25%
50%
75%
100%
Score Point Value
0
0
1
2
3
4
Do senior leaders demonstrate and promote an organizational environment that foster and
requires legal and ethical behavior in all employee interactions? (10 points)
DK
0%
25%
50%
75%
100%
Score Point Value
0
0
1
2
3
4
Does your organization consider societal well-being and benefit as part of your strategy
and daily operation? (5 points)
DK
0%
25%
50%
75%
100%
Score Point Value
0
0
1
2
3
4
Does senior management support and encourage employees to participate in outside
activities that strengthen the community? (5 points)
DK
0%
25%
50%
75%
100%
Score Point Value
0
0
1
2
3
4
TOTAL POINT VALUE: _____________
% SCORE (TOTAL POINT VALUE/52):___________
Customer Focus
3.1
Voice of the Customer
• Listening to Current Customers
• Listening to Potential Customers
• Customer Satisfaction &
Engagement
• Satisfaction Relative to
Competitors
• Dissatisfaction
3.2
Customer Engagement
•
•
•
•
•
•
Product Offerings
Customer Support
Customer Segmentation
Customer Data Use
Relationship Management
Complaint Management
3 Customer Focus (85 pts)
The Customer Focus Category examines HOW your organization engages CUSTOMERS for long-term
marketplace success. This ENGAGEMENT strategy includes HOW your organization builds a
CUSTOMER-focused culture. Also examined is HOW your organization listens to the VOICE OF ITS
CUSTOMERS and uses this information to improve and identify opportunities for INNOVATION.
3.1 Voice of the Customer: How do you obtain and use information from your
customers? (45 pts)
Describe HOW your organization listens to your customers and acquires satisfaction and
dissatisfaction information. Within your response, include answers to the following questions:
a.
Listening
(1) Listening to Current CUSTOMERS How do you listen to CUSTOMERS to obtain actionable
information? How do your listening methods vary for different CUSTOMERS, CUSTOMER groups,
or market SEGMENTS? How do you use social media and Web-based technologies to listen to
CUSTOMERS, as appropriate? How do your listening methods vary across the CUSTOMER life
cycle? How do you follow up with CUSTOMERS on the quality of products, CUSTOMER support,
and transactions to receive immediate and actionable feedback?
CUSTOMER
(2) Listening to Potential CUSTOMERS How do you listen to former CUSTOMERS, potential
CUSTOMERS, and CUSTOMERS of competitors to obtain actionable information and to obtain
feedback on your products, CUSTOMER support, and transactions, as appropriate?
b. Determination of CUSTOMER Satisfaction and ENGAGEMENT
(1) Satisfaction and ENGAGEMENT How do you determine CUSTOMER satisfaction and
ENGAGEMENT? How do these determination methods differ among CUSTOMER groups and
market SEGMENTS, as appropriated? How do your measurements capture actionable
information for use in exceeding your CUSTOMERS’ expectations and securing your
CUSTOMERS’ ENGAGEMENT
(2) Satisfaction Relative to Competitors How do you obtain information on your
CUSTOMERS’ satisfaction relative to their satisfaction with your competitors? How do you
obtain information on your CUSTOMERS’ satisfaction relative to the satisfaction LEVELS of
CUSTOMERS of other organizations providing similar PRODUCTS or to industry BENCHMARKS,
as appropriate?
(3) Dissatisfaction How do you determine CUSTOMER dissatisfaction? How do your
measurements capture actionable information for use in meeting your CUSTOMERS’
requirements and exceeding their expectations in the future?
3.2 Customer Engagement: How do you engage customers to serve their needs and build
relationships? (40 pts)
Describe HOW your organization determines product offerings and communication mechanisms to support
CUSTOMERS. Describe also HOW your organization builds a CUSTOMER relationships.
Within your response, include answers to the following questions:
a. Product Offerings and CUSTOMER support
(1) Product Offerings How do you identify CUSTOMER and market requirements for product
offerings and services? How do you identify and innovate product offerings to meet the
requirements and exceed the expectations of your CUSTOMER groups and market SEGMENTS (identified
in your Organizational Profile)? How do you identify and innovate product offerings to enter new
markets, to attract new CUSTOMERS, and to provide opportunities for expanding relationships with
existing CUSTOMERS, as appropriate?
(2) Customer Support How do you enable CUSTOMERS to seek information and CUSTOMER support?
How do you enable them to conduct their business with you and provide feedback on your products
and your CUSTOMER support? What are your KEY means of CUSTOMER support, including your KEY
communication mechanisms? How do they vary for different CUSTOMERS, CUSTOMER groups, or
market SEGMENTS? How do you determine your CUSTOMERS’ KEY support requirements? How do you
ensure that CUSTOMER support requirements are DEPLOYED to all people and PROCESSES involved in
CUSTOMER SUPPORT?
(3) Customer Segmentation How do you use CUSTOMER, market, and product offering information to
identify current and anticipate future CUSTOMER groups and market SEGMENTS? How do you
consider CUSTOMERS of competitors and other potential CUSTOMERS and markets in this
segmentation? How do you determine which CUSTOMERS, CUSTOMER groups, and market SEGMENTS to
pursue for current and future products?
(4) Customer Data Use How do you use CUSTOMER, market and product offering
information to improve marketing, build a more CUSTOMER-focused culture, and identify
opportunities for INNOVATION?
b. Building CUSTOMER Relationships
(1) Relationship Management How do you market, build, and manage relationships
with CUSTOMERS to achieve the following?
• acquire new CUSTOMERS and build market share
• retain CUSTOMERS, meet their requirements and exceed their expectations in each
stage of the CUSTOMER life cycle
• increase their ENGAGEMENT with you
(2) Complaint Management How do you manage CUSTOMER complaints? How does your
CUSTOMER complaint management PROCESS ensure that complaints are resolved promptly
and EFFECTIVELY? How does your CUSTOMER complaint management PROCESS enable you
to recover your CUSTOMERS’ confidence and enhance their satisfaction and ENGAGEMENT?
Key Excellence Indicators – Customer and Market Focus
•
•
•
In-depth market knowledge
and forecasts
Proactive customer systems
Use of all listening posts to
identify customer requirements
– Surveys
– Product/service follow-up
– Complaints
– Customer turnover
– All staff
•
Requirements of market
segments
–
Define and segment key
customer groups and markets
–
Consideration of needs of
current and potential
customers
• Front-line empowerment
• Attention to hiring, training,
attitude, and morale of all
employees
• Strategic infrastructure support
for front-line employees
• Focus on customer relationship
management and loyalty
• Effective complaint management
processes
• Measure customer satisfaction
for improvement
• High levels of satisfaction
Category 3. Customer Focus (85 points)
Please use the following scale, which is repeated at the top of each page, in selecting the rating which you
think best describes your company’s performance on each of the questions asked:
0%
25%
50%
75%
100%
DK
Your company doesn’t do this. It is not a function of the organization.
Some areas of the company do this, but they don’t do it very well.
An effective method has been established, but only some areas of the company use it.
Most areas of the company do this, and they do it well.
Our company is well known for doing this better than anyone else in our industry.
I don’t know the answer to this question.
To what extent....
Do you know who your customers are, if and how the company has grouped them by type, and what each group
of customers currently needs and expects from you? (10 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Has the company gathered information about what your customers will want in the future and shared that
information with you? (10 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Does the company gather actionable information and feedback on your products and services from former
customers, potential customers, and customer of competitors? (10 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Does the company regularly gather information from customers on their satisfaction, dissatisfaction, and level
of engagement with your products and services? (10 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Do your methods for determining customer satisfaction, dissatisfaction, and engagement differ among customer
groups and market segments, as appropriate? (10 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Do you know how your levels of satisfaction and engagement compare with competitors? (10 points)
DK
0%
25%
50%
75%
100%
Score Point Value
Please use the following scale, which is repeated at the top of each page, in selecting the rating which you
think best describes your company’s performance on each of the questions asked:
0%
25%
50%
75%
100%
DK
Your company doesn’t do this. It is not a function of the organization.
Some areas of the company do this, but they don’t do it very well.
An effective method has been established, but only some areas of the company use it.
Most areas of the company do this, and they do it well.
Our company is well known for doing this better than anyone else in our industry.
I don’t know the answer to this question.
Does the company use customer satisfaction information throughout the organization to improve upon its
products and services? (10 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Do your customers find it easy and “hassle free” to do business with your company? (10 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Does the company make it easy for customers to seek assistance and voice complaints and resolve those
complaints quickly? (10 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Does the company analyze customer complaints and take actions to eliminate the source of these complaints?
(10 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
TOTAL POINT VALUE: _____________
% SCORE (TOTAL POINT VALUE/40):___________
Score Point Value
Information and Analysis
•
•
•
•
•
•
•
•
4.1
Measurement and
Analysis of
Organizational
Performance
4.2
Management of
Information, Knowledge
& Information
Technology
Selection/Alignment/Integration of
Measures
Comparative Data and Information
Use of Customer Data
Keep Current with Changing
Needs/Agility
Data/Information Analysis/Use
Communication of Results
Alignment with Business Results,
Strategic Objectives, Action Plans
Drive Performance
Improvement/Innovation
• Integrity, Reliability, Accuracy,
Timeliness, Security,
Confidentiality
• Availability/Accessibility
• Knowledge Management
• Hardware/Software Reliability,
Usability/security
• Emergency Availability
4.1 Measurement, Analysis, and Improvement of Organizational Performance: How do
you measure, analyze, and then improve organizational performance? ? (45 points)
Describe HOW your organization measures, analyzes, reviews, and improves its PERFORMANCE through he use
of data and information at all levels and in all pats of your organization.
Within your response, include answers to the following questions:
a.
PERFORMANCE MEASUREMENT
(1) PERFORMANCE MEASURES How do you select, collect, align, and integrate data and information
for tracking daily operations and overall organizational PERFORMANCE, including progress relative
to STRATEGIC OBJECTIVES and ACTION PLANS? What are your KEY organizational PERFORMANCE MEASURES,
including KEY short-term and longer-term financial MEASURES? How frequently do you track these
MEASURES? How do you use these data and information to support organizational decision making
and INNOVATION?
(2) Comparative Data How do select and ensure the EFFECTIVE use of KEY comparative data and
information to support operational and strategic decision making and INNOVATION?
(3) Customer Data How do select and ensure the EFFECTIVE use of VOICE-OF-THE-CUSTOMER data and
information (including complaints) to support operational and strategic decision making and
INNOVATION?
(4) Measurement Agility How do you ensure that your PERFORMANCE measurement system is able to
respond to rapid or unexpected organizational or external changes?
b. PERFORMANCE ANALYSIS and Review
How do you review organizational PERFORMANCE and capabilities? How do you use your KEY
organizational PERFORMANCE MEASURES in these reviews? What ANALYSES do you perform to
support these reviews and ensure that conclusions are valid? How do you use these reviews
to assess organizational success, competitive PERFORMANCE, financial health, and progress
relative to STRATEGIC OBJECTIVES and ACTION PLANS? How do you use these reviews to assess
your organization’s ability to respond rapidly to changing organizational needs and
challenges in your operating environment?
c. PERFORMANCE Improvement
(1) Best-Practice Sharing How do you use PERFORMANCE review findings to share
lessons learned and best practices across organizational units and WORK PROCESSES?
(2) Future Performance How do use PERFORMANCE review findings and KEY
comparative and competitive data to project future PERFORMANCE?
(3) Continuous Improvement and INNOVATION How do you use organizational
PERFORMANCE review findings to develop priorities for continuous improvement and
opportunities for INNOVATION? How are these priorities and opportunities DEPLOYED to work
group and functional-level operations throughout your organization? When appropriate,
HOW are the priorities and opportunities DEPLOYED to your suppliers, PARTNERS, and
COLLABORATORS to ensure organizational ALIGNMENT?
4.2 Management of Information, Knowledge, and Information Technology: How do you
manage your information, organizational knowledge, and information technology ?
(45 points)
Describe HOW your organization builds and manages its KNOWDLEDGE ASSETS. Describe HOW your
organization ensures the quality and availability of needed data, information, software, and hardware for
your WORKFORCE, suppliers, PARTNERS, COLLABORATORS, and CUSTOMES.
Within your response, include answers to the following questions:
a.
Data, Information, and Knowledge Management
(1) Properties How do you manage your organizational data, information, and knowledge to
ensure the following properties?
• accuracy
• Integrity and reliability
• Timeliness
• Security and confidentiality
(2) Data and Information Availability How do you make needed data and information available to
your WORKFORCE, suppliers, PARTNERS, COLLABORATORS, and CUSTOMERS, as appropriate?
(3) Knowledge Management How do you manage organizational knowledge to
accomplish the following?
 the collection and transfer of WORKFORCE knowledge
 The transfer of relative knowledge from and to CUSTOMERS, suppliers, PARTNERS, and
COLLABORATORS
 the rapid identification, sharing, and implementation of best practices
 The assembly and transfer of relevant knowledge for use in your INNVOATION and
strategic planning PROCESSES
b. Management of information Resources and Technology
(1) Hardware and Software Properties How do you ensure that hardware and software
are reliable, secure, and user-friendly?
(2) Emergency Availability In the event of an emergency, HOW do you ensure the
continued availability of hardware and software systems and the continued availability
of data and information to EFFECTIVELY serve CUSTOMERS and business needs?
Leading Practices (1 of 2)
• Develop a set of performance indicators that
reflect customer requirements and key business
drivers
• Use multiple aligned and interlinking measures
(internal and external)
• Use comparative information and data to improve
overall performance and competitive position
• Involve everyone in measurement activities and
ensure that information is widely visible
Leading Practices (2 of 2)
• Ensure that data are actionable, reliable and
accessible to all who need them
• Use sound analytical methods to conduct analyses
and use the results to support strategic planning
and daily decision making
• Organizational knowledge captured and shared
internally and externally
• Benchmarking of “best-in-class” processes and results
• Continually refine information sources and their
uses within the organization
Category 4. Measurement, Analysis, & Knowledge Management (90 points)
0%
25%
50%
75%
100%
DK
Your company doesn’t do this. It is not a function of the organization.
Some areas of the company do this, but they don’t do it very well.
An effective method has been established, but only some areas of the company use it.
Most areas of the company do this, and they do it well.
Our company is well known for doing this better than anyone else in our industry.
I don’t know the answer to this question.
To what extent....
Does the company collect financial, customer, employee, supplier, operations and quality information and data
which it uses to evaluate its performance on those things that are important to the company’s success? (15
points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Does the company make this information available to those within the company who need it in a timely manner,
as well as suppliers, partners, collaborators, and customers, as appropriate? (10 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Do you have a process for analyzing the information and data that the company makes available that helps you
make decisions, monitor your progress in meeting your goals, and identify important areas which need
improvement? (10 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Does the company choose improvement activities based on how the improvements will increase sales and
revenue, reduce costs, increase customer satisfaction, drive innovation and achieve other organizational goals
and action plans? (15 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Does the company regularly evaluate the information and data that it collects and how it is distributed to ensure
that it meets the changing needs of the company and of those who must use it? (5 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Does the company collect information about other companies, both competitors and world class organizations,
against which compares its performance on key processes and results? (5 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
0%
25%
50%
75%
100%
DK
Your company doesn’t do this. It is not a function of the organization.
Some areas of the company do this, but they don’t do it very well.
An effective method has been established, but only some areas of the company use it.
Most areas of the company do this, and they do it well.
Our company is well known for doing this better than anyone else in our industry.
I don’t know the answer to this question.
To what extent....
Does the company use information collected about other companies to identify opportunities for improvement?
(5 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Does the company set and communicate stretch targets for important processes and results? (5 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Does the company encourage the collection and sharing of relevant knowledge, including best practices, from
one area of the company to another? (5 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Does the company ensure the accuracy, integrity and reliability, timeliness, security and confidentiality of its
data, information, and knowledge? (5 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Does the company ensure that hardware and software are reliable, secure, and user-friendly? (5 points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
Score Point Value
Does the company keep its data and information availability mechanisms, including software and hardware,
current with business needs and directions and with technological changes in your operating environment? (5
points)
DK
0
0%
0
25%
1
50%
2
75%
3
100%
4
TOTAL POINT VALUE: _____________
% SCORE (TOTAL POINT VALUE/48:___________
Score Point Value
SFM654: Managing Quality in Services
Instructions for Baldrige Written Category Evaluations
1. Read the requirements for the Organizational Profile and assigned Category.
2. Read the applicant’s responses to the Organizational Profile and assigned Category from the case study.
3. As you read the applicant’s response to each requirement for the assigned Category item (e.g., 1.1a,
1.1b, 3.1a, 3.1b, etc.), identify what you consider to be the strengths and/or opportunities for
improvement in the applicant approaches and deployment.
4. List the strengths and opportunities for improvement, as in the example provided for each item assigned
(e.g. 1.1 Organizational Leadership; 1.2 Public Responsibility and Citizenship; 3.1 Customer and
Market Knowledge; 3.2 Customer Relationships and Satisfaction, etc.). For each strength or opportunity
for improvement identified, include a brief “so what” that indicates why you believe it is a strength or
opportunity for improvement.
5. Once you have completed the Strengths and Opportunities for Improvement for each Category Item
assigned (e.g. 1.1 Organizational Leadership; 1.2 Public Responsibility and Citizenship; 3.1 Customer
and Market Knowledge; 3.2 Customer Relationships and Satisfaction, etc.), assign a score based on the
Scoring Guidelines for Approach and Deployment found in the Criteria for Performance Excellence
booklet on page 68 and briefly explain your score in the context of the scoring guidelines.
Your Name__________________________________________
TriView National Bank
Category 2 Evaluation
2.1 STRATEGIC DEVELOPMENT
Area to
+/++ Address
STRENGTHS
+
a(1)
The applicant’s SPP (Figure 2.1-1) is aligned with key customer, workforce, and work
process elements. Participants include the BOD, the EMC, the Marketing Team, branch
and functional managers, and an external economist, and inputs/outputs include Voice of
the Customer (VOC) sources, regulatory watch data, and the Associate Capability and
Capacity Planning Process (ACCPP). A one year plan corresponds with regulatory
requirements, while a three-year plan allows for action plan implementation.
+
a
The applicant’s integrated approach to strategy development helps identify blind spots
and enable agility as risks and scenarios change during the year. The applicant develops
a macro view of the organization, its environment, and potential risks through the SPP.
An in-depth risk analysis; projection of three scenarios for each area of risk; a Strengths,
Opportunities, Weaknesses, and Threats (SWOT) analysis; and inputs from an external
economist contribute to this view.
+
b(1)
The applicant’s strategic objectives for customers, associates, processes, and regulatory
and financial interests (Figure 2.2-1) are each aligned with the core competencies and
strategic advantages to be leveraged, the strategic challenges to be addressed, the most
important goals, and short- and long-term action plans with timetables for
accomplishment. This snapshot view also includes scorecard metrics with short- longterm, and some comparative projections.
-/--
Area to
Address
OPPORTUNITIES FOR IMPROVEMENT
-
b(2)
The applicant does not appear to address several strategic objective considerations.
These include the challenge of a retirement wave, which may affect workforce capacity
planning; the community, which may hinder addressing the loss of public confidence;
and innovations in products and operations, which may limit opportunities to gain market
share. Also, objectives for associates and processes have no long-term objectives,
inhibiting alignment with other long-term objectives.
-
a
There is little evidence of cycles of learning and improvement for the steps or activities
used in developing strategies. For instance, the applicant provides few examples of
improvements resulting from the biannual evaluation of the SPP (e.g., execution of
process steps or activities, participants, time frame, process inputs. Continued process
improvement and innovation may facilitate the allocation of resources to capitalize on
opportunities in a rapidly changing environment.
-
a(1)
It is unclear how the SPP addresses plans shorter than a year, such as the one-week
microterm planning horizon, or how it changes the current-year plan to address
challenges/opportunities identified in the MNO-Factor Watch, which enables the EMC to
monitor regulatory bodies. Quick responses to rapidly changing regulations and
emerging challenges may provide a strategic example.
2.2 STRATEGY IMPLEMENTATION
Area to
+/++ Address
STRENGTHS
+
a(1)
A systematic “catchball” process transitions the SPP from “development” to
“deployment” by aligning action plans with strategies for the three scenarios derived
earlier. Key short- and long-term action plans for the 2011 sustain scenario (Figure 2.21) are aligned with strategic objectives. Planned product and service changes include
adapting face-to-face Legendary Service to work seamlessly with a customer base that is
connected electronically via Internet and cell phone.
+
a(3)
The applicant’s approach to resource allocation may foster success in achieving
strategies. Resources are considered from varying perspectives throughout the SPP (e.g.,
as part of risk analysis and in reviewing plans for potential blind spots). During the
“catchball” process, branch and department managers develop a fishbone diagram to
identify people, process, technology, and capital investment resources necessary to
accomplish plans.
+
a(2)
The applicant aligns action plan deployment with leadership, workforce, and work
system processes. Action plans cascade from leadership to associates through
deployment meetings; rapid deployment teams use the TOE process to change the
business, update work system design, and achieve breakthrough improvements; and IPPs
to delineate each associate’s role in achieving specific goals or action plans. Reviews at
varying levels and time frames help sustain action plans throughout the year.
+
a(5)
Key action plans measures and indicators integrated in the TNB Scorecard (TNBSC;
Figure 4.1-2) and used to align efforts throughout the organization. For example, the
EMC reviews the strategic plan quarterly, reaffirming that selected scenario’s
applicability, and evaluates TNBSC metrics against projections and benchmarks. Similar
reviews are conducted by divisions, branches, and departments; by the Marketing Team;
and with key suppliers.
-/--
Area to
Address
OPPORTUNITIES FOR IMPROVEMENT
-
a(4)
The applicant does not describe plans to address potential impacts on and changes to the
workforce. These include the pending retirement wave, increasingly difficult customers,
cost reductions that require associates to perform multiple jobs, changes in banking
regulations, or the absorption of large numbers of employees (e.g., through acquisitions).
These gaps may impact the applicant’s strategic advantage of a loyal and stable
workforce.
-
a
There is little evidence of cycles of learning and improvement for the “deployment”
phase of the SPP. In particular, the applicant provides few examples of improvements
identified from the regression analysis that correlates the effectiveness of action plans
with key metrics. Learning and improvement in this area may help the applicant sustain
key outcomes of those strategies and plans.
-
a(6)
A systematic process is not evident for modifying existing action plans and executing
new plans when indicated. For example, it is not clear how modified action plans are
deployed through the SPP and throughout the organization when Trust Teams determine that corrective action
is necessary.
-
b
Several scorecard metrics (Figure 2.2-1) lack long-term comparative projections that are
derived from the SPP. These metrics include total deposits, associate satisfaction, and
time deposit statement accuracy. The lack of such metrics may prevent the identification
of opportunities for breakthrough improvement.
SCORING
The applicant is assigned a score of 60 for Item 2.1, Strategic Development. The bank demonstrates an
effective, systematic approach, responsive to the OVERALL REQUIREMENTS of the item. The approach is
well deployed, although there appear to be some gaps in deployment related to recent acquisitions. The bank’s
approach to improvement of key strategic planning processes is fact-based and systematic, with some
organizational learning and innovation (provide an example of learning and/or innovation from case). The
approach is aligned with some of the bank’s organizational needs identified in the Organizational Profile
(Identify an example of alignment).
The applicant is assigned a score of 55 for Item 2.2, Strategy Implementation. Again, the bank demonstrates an
effective, systematic approach, responsive to the OVERALL REQUIREMENTS of the item. The approach is
well-deployed, although there appear to be some gaps in deployment related to recent acquisitions. While there
is a fact-based, systematic evaluation and improvement process in place for improving the efficiency and
innovation, there is little evidence of cycles of learning. The approach is aligned with some of the bank’s
organizational needs identified in the Organizational Profile (Identify an example of alignment).