BALDRIGE
AWARD
CRITERIA
Fifteenth Edition
CRC Press
Taylor & Francis Group
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2009 by Mark Graham Brown
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Contents
Acknowledgments. . . . . . . . . . . . . . . . . . . . . . . . iv
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
P A R T I: Questions & Answers. . . . . . . . . . . . 1
P A R T I I: The Baldrige Criteria . . . . . . . . . . 17
1. Leadership (120 pts.). . . . . . . . . . . . . . . . . . 18
2. Strategic Planning (85 pts.). . . . . . . . . . . . . 22
3 . Customer Focus (85 pts.). . . . . . . . . . . . . . 26
4.Measurement, Analysis,
and Knowledge Management (90 pts.). . . 30
5. Workforce Focus (85 pts.). . . . . . . . . . . . . . 35
6. Process Management (85 pts.). . . . . . . . . . 39
7. Results (450 pts.). . . . . . . . . . . . . . . . . . . . . . 43
For Additional Reading. . . . . . . . . . . . . . . . . 56
iii
Acknowledgments
I would like to thank the following individuals
for their suggestions to improve the first edition
of this book: Carol Pletcher, Cargill; Martin Smith,
New England Telephone; Ann Wolfe, Air Products
and Chemicals; Craig Skrivseth, Appleton Papers.
I also wish to thank Jim Springer of Appleton
Papers, who gave me the idea for this book, and
Lynn Berner-Kilbourn who did an exceptional job
of editing and formatting the original book.
I would also like to thank Michael Sinocchi,
senior acquisitions editor at Productivity Press, for
his outstanding editing over the years.
MGB
iv
Introduction
This guide is designed to help you understand the
criteria for the Malcolm Baldrige National Quality
Award. It is not about the award, or how to win
it. Rather, it is about how to interpret and use the
criteria to improve your organization.
Most organizations that use the Baldrige criteria
have no interest in applying for, or winning, the
award. The Baldrige criteria are being used by
thousands of organizations around the world to
evaluate their progress toward becoming the best
in their fields. This guide is divided into two parts.
Part. I, a question and answer section, provides the
answers to the questions most commonly asked
about the award and the criteria. Part II provides
a brief explanation of each of the 18 items in the
Baldrige criteria and lists the characteristics of
organizations that excel in each of these 18 items.
If the material in this quick reference guide
sparks your interest in the Baldrige criteria or the
Malcolm Baldrige National Quality Award, you
can obtain more information from the sources
listed at the end of the book.
PART I
QUESTIONS &
ANSWERS
at your department or facility as a separate company. Imagine that everyone in your department
left the company and formed an organization that
sells your services back to the company. From
this perspective it is easier to determine who your
customers are, and what products/services you
provide for them.
In the Baldrige criteria, the word customer
refers to external customers. Because all of your
customers may be inside the company, you need to
apply a broader meaning to words like customer
and supplier.
Similarly, when assessing areas such as human
resources or governance, put the item in the context of your department or facility.
Q: What are the seven categories in the Baldrige
criteria, and what do they focus on?
A: The seven categories in the Baldrige criteria
and their corresponding point values are as follows:
1.
2.
Leadership
Strategic Planning
120 points
85 points
3.
Customer Focus
85 points
7 Categories
18 Examination Items
41 Areas to Address
Q: How are the 2009/2010 Baldrige criteria different from previous years?
A: The last comprehensive alteration was performed in 2007. Since 1988, the criteria have
evolved and changed quite a bit, with annual
revisions of varying degrees. During the last 10
years, those revisions have become more minor
as the model has become more mature. The new
2009/2010 criteria represent the first time the criteria are stable for a two-year period.
The biggest change in the criteria for 2009/2010
has occurred in Category 3: Customer Focus.
The new Item 3.1 (Customer Engagement) asks
about how the organization builds relationships
with customers. The new Item 3.2 (Voice of the
Customer) asks about how the organization learns
about customer needs/requirements, how satisfactions/engagement is measured, and how the
organization uses customer satisfaction data to
improve. All of these concepts were in previous
versions of the criteria, but the questions have
been rewritten, and most of what was formerly
in 3.1 is now in 3.2. The biggest change to this
section has been the inclusion of new phrases
10
11
Corresponding Baldrige
Items
12
What Successful
Companies Do
Corresponding Baldrige
Items
Review performance
of all key measures,
including financial
product/service, ethical, operational, supplier
performance, customer
satisfaction, and
employee satisfaction.
5.1 Workforce
Engagement
5.2 Workforce
Environment
13
What Successful
Companies Do
Corresponding Baldrige
Items
3.1 Customer
Engagement
Demonstrate excellent
trends and levels in all
results areas .
14
the Baldrige criteria apply to a small organization, at least in spirit. Look for ways to meet the
Baldrige ideals without adding too much formality to your systems and processes.
16
PART II
THE BALDRIGE
CRITERIA
17
1 LEADERSHIP
19
20
1 LEADERSHIP
22
2 strategic planning
23
2 strategic planning
be in the next 3 to 5 years relative to key competitors and benchmark organizations if you hit all
your targets.
What Excellent Organizations Do
Identify key success factors that differentiate
your organization from key competitors.
Set measurable targets for each measure of
performance based upon relevant data (e.g.,
competitors, resources, customer needs, etc.).
Define specific strategies or action plans for
hitting targets.
Communicate plans to all levels of employees
and partners so they understand their roles in
helping the organization achieve its vision.
Adapt or change targets and strategies quickly
as the business environment changes.
Predict how achievement of targets will change
the organizations position in the marketplace
over the next 2 to 5 years.
25
Use feedback from customers to make improvement to organization processes and practices.
4 Measurement, Analysis, and
Knowledge Management (90 pts.)
Category 4 is a core part of the Baldrige criteria
that asks how you measure the performance of the
organization and how you analyze performance
data to make decisions. Item 4.1 asks you to identify
the set of metrics you trackmany organizations
refer to this information as a scorecard. Item 4.1
also asks how the measures link back to goals and
other important factors for overall success. Item 4.2
asks about the use of information technology and
how you manage organizational knowledge.
4.1 MEASUREMENT, ANALYSIS, AND
IMPROVEMENT OF ORGANIZATIONAL
PERFORMANCE: How do
you measure, analyze, and then improve
organizational performance? (45 pts.)
Describe HOW your organization measures, analyzes,reviews, and improves its PERFORMANCE through
the use of data and information at all levels and in all parts
of your organization.
30
31
Describe HOW your organization ensures the quality and availability of needed data, information,
software, and hardware for your WORKFORCE,
suppliers, PARTNERS, COLLABORATORS, and
CUSTOMERS . Describe HOW your organization
builds and manages its KNOWLEDGE ASSETS.
What Does This Mean?
This item asks how you use information technology to provide leaders and other members of the
workforce with the data, tools, and resources they
need to perform their jobs. In a large organization
this might consist of the latest computer software
and hardware. In a smaller organization, communication may be less dependent on technology,
but is still important to use the best technology
that the organization can afford. Communication
of performance information in spreadsheets with
endless columns of hard-to-read numbers is far
from an ideal approach.
The collective knowledge of the workforce in
most of todays organizations is far more valuable than any physical assets. Criteria item 4.2
also asks how you manage and document this
knowledge so that it may be transferred to others.
Building a knowledge data base or implementing
33
5 workforce focus
38
5 workforce focus
39
6 Process management
6 Process management
7 results
45
7 results
48
7 results
7 results
7 results
7 results
55
56
57
Driver
3.2
Define Measures of
Develop Goals,
Success and Collect 4
Goals/
Objectives,
Data
(Measurement,
Data
and Strategies
2
Analysis,
and
Knowledge
Measures
Tied to
Management)
3.1 Strategies Performance Measures
(Customer and Market
(Strategic Planning)
Knowledge)
3.1
Results