|Judges' Meeting July 31, 2003 |
|The Panel of Judges met on July 31, 2003 to select the |
|organizations that will move forward in the 2003 Malcolm |
|Baldrige National Quality Award process. Of the 68 organizations|
|that applied, 35 will receive additional evaluations by teams of|
|Examiners. The group is comprised of seven education and 12 |
|health care organizations, six manufacturing and seven service |
|companies, and three small businesses. |
Frequently Asked Questions about the
Malcolm Baldrige National Quality Award
Who was Malcolm Baldrige?
Malcolm Baldrige was Secretary of Commerce from 1981 until his death in a
rodeo accident in July 1987. Baldrige was a proponent of quality management
as a key to this country’s prosperity and long-term strength. He took a
personal interest in the quality improvement act that was eventually named
after him and helped draft one of the early versions. In recognition of his
contributions, Congress named the award in his honor.
What is the Malcolm Baldrige National Quality Award?
The Baldrige Award is given by the President of the United States to
businesses—manufacturing and service, small and large—and to education and
health care organizations that apply and are judged to be outstanding in
seven areas: leadership, strategic planning, customer and market focus,
information and analysis, human resource focus, process management, and
business results.
Congress established the award program in 1987 to recognize U.S.
organizations for their achievements in quality and performance and to
raise awareness about the importance of quality and performance excellence
as a competitive edge. The award is not given for specific products or
services. Three awards may be given annually in each of these categories:
manufacturing, service, small business and, starting in 1999, education and
health care.
While the Baldrige Award and the Baldrige recipients are the very visible
centerpiece of the U.S. quality movement, a broader national quality
program has evolved around the award and its criteria. A report, Building
on Baldrige: American Quality for the 21st Century, by the private Council
on Competitiveness, said, “More than any other program, the Baldrige
Quality Award is responsible for making quality a national priority and
disseminating best practices across the United States.”
The U.S. Commerce Department’s National Institute of Standards and
Technology (NIST) manages the Baldrige National Quality Program in close
cooperation with the private sector.
Why was the award established?
In the early and mid-1980s, many industry and government leaders saw that a
renewed emphasis on quality was no longer an option for American companies
but a necessity for doing business in an ever expanding, and more
demanding, competitive world market. But many American businesses either
did not believe quality mattered for them or did not know where to begin.
The Baldrige Award was envisioned as a standard of excellence that would
help U.S. organizations achieve world-class quality.
How is the Baldrige Award achieving its goals?
The criteria for the Baldrige Award have played a major role in achieving
the goals established by Congress. They now are accepted widely, not only
in the United States but also around the world, as the standard for
performance excellence. The criteria are designed to help organizations
enhance their competitiveness by focusing on two goals: delivering ever
improving value to customers and improving overall organizational
performance.
The award program has proven to be a remarkably successful government and
private-sector team effort. The annual government investment of about $5
million is leveraged by a contribution of over $100 million from private-
sector and state and local organizations, including $10 million raised by
private industry to help launch the program and the time and efforts of
hundreds of largely private-sector volunteers.
The cooperative nature of this joint government/private-sector team is
perhaps best captured by the award’s Board of Examiners. Each year, more
than 300 experts from industry, educational institutions, governments at
all levels, and non-profit organizations volunteer many hours reviewing
applications for the award, conducting site visits, and providing each
applicant with an extensive feedback report citing strengths and
opportunities to improve. In addition, board members have given thousands
of presentations on quality management, performance improvement, and the
Baldrige Award.
The Baldrige Award winners also have taken seriously their charge to be
quality advocates. Their efforts to educate and inform other companies and
organizations on the benefits of using the Baldrige Award framework and
criteria have far exceeded expectations. To date, the recipients have given
more than 30,000 presentations reaching thousands of organizations.
What are the Baldrige criteria?
The Baldrige performance excellence criteria are a framework that any
organization can use to improve overall performance. Seven categories make
up the award criteria:
Leadership—Examines how senior executives guide the organization and how
the organization addresses its responsibilities to the public and practices
good citizenship.
Strategic planning—Examines how the organization sets strategic directions
and how it determines key action plans.
Customer and market focus—Examines how the organization determines
requirements and expectations of customers and markets; builds
relationships with customers; and acquires, satisfies, and retains
customers.
Measurement, analysis, and knowledge management—Examines the management,
effective use, analysis, and improvement of data and information to support
key organization processes and the organization’s performance management
system.
Human resource focus—Examines how the organization enables its workforce to
develop its full potential and how the workforce is aligned with the
organization’s objectives.
Process management—Examines aspects of how key production/delivery and
support processes are designed, managed, and improved.
Business results—Examines the organization’s performance and improvement in
its key business areas: customer satisfaction, financial and marketplace
performance, human resources, supplier and partner performance, operational
performance, and governance and social responsibility. The category also
examines how the organization performs relative to competitors.
The criteria are used by thousands of organizations of all kinds for self-
assessment and training and as a tool to develop performance and business
processes. Several million copies have been distributed since the first
edition in 1988, and heavy reproduction and electronic access multiply that
number many times.
For many organizations, using the criteria results in better employee
relations, higher productivity, greater customer satisfaction, increased
market share, and improved profitability. According to a report by the
Conference Board, a business membership organization, “A majority of large
U.S. firms have used the criteria of the Malcolm Baldrige National Quality
Award for self-improvement, and the evidence suggests a long-term link
between use of the Baldrige criteria and improved business performance.”
Which organizations have received the award?
. 2003—Medrad, Inc., Boeing Aerospace Support, Caterpillar Financial
Services Corp., Stoner Inc., Community Consolidated School District
15, Baptist Hospital, Inc., and Saint Luke’s Hospital of Kansas City
. 2002—Motorola Inc. Commercial, Government and Industrial Solutions
Sector, Branch Smith Printing Division, and SSM Health Care
. 2001—Clarke American Checks, Incorporated, Pal’s Sudden Service,
Chugach School District, Pearl River School District, and University
of Wisconsin-Stout
. 2000—Dana Corp.-Spicer Driveshaft Division, KARLEE Company, Inc.,
Operations Management International, Inc., and Los Alamos National
Bank
. 1999—STMicroelectronics, Inc.-Region Americas, BI, The Ritz-Carlton
Hotel Co., L.L.C., and Sunny Fresh Foods
. 1998—Boeing Airlift and Tanker Programs, Solar Turbines Inc., and
Texas Nameplate Co., Inc.
. 1997—3M Dental Products Division, Solectron Corp., Merrill Lynch
Credit Corp., and Xerox Business Services
. 1996—ADAC Laboratories, Dana Commercial Credit Corp., Custom Research
Inc., and Trident Precision Manufacturing Inc.
. 1995—Armstrong World Industries Building Products Operation and
Corning Telecommunications Products Division
. 1994—AT&T Consumer Communications Services, GTE Directories Corp., and
Wainwright Industries Inc.
. 1993—Eastman Chemical Co. and Ames Rubber Corp.
. 1992—AT&T Network Systems Group/ Transmission Systems Business Unit,
Texas Instruments Inc. Defense Systems & Electronics Group, AT&T
Universal Card Services, The Ritz-Carlton Hotel Co., and Granite Rock
Co.
. 1991—Solectron Corp., Zytec Corp., and Marlow Industries
. 1990—Cadillac Motor Car Division, IBM Rochester, Federal Express
Corp., and Wallace Co. Inc.
. 1989—Milliken & Co. and Xerox Corp. Business Products and Systems
. 1988—Motorola Inc., Commercial Nuclear Fuel Division of Westinghouse
Electric Corp., and Globe Metallurgical Inc.
When were the education and health care categories established?
Both categories were introduced in 1999. Since then, a total of 66
applications have been submitted in the education category and 61 in the
health care category.
Any for-profit or not-for-profit public or private organization that
provides educational or health care services in the United States or its
territories is eligible to apply for the award. That includes elementary
and secondary schools and school districts; colleges, universities, and
university systems; schools or colleges within a university; professional
schools; community colleges; technical schools; and charter schools. In
health care, it includes hospitals, HMOs, long-term-care facilities, health
care practitioner offices, home health agencies, health insurance
companies, or medical/dental laboratories.
As in the other three categories, applicants must show achievements and
improvements in seven areas: leadership; strategic planning; customer and
market focus (for education: student, stakeholder, and market focus; for
health care: focus on patients, other customers, and markets); information
and analysis; human resource focus (for education: faculty and staff focus;
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