for health care: staff focus); process management; and business results
(for both education and health care: organizational performance results).
Many education and health care organizations are using the Baldrige
criteria to good effect. For example:
. The New Jersey Department of Education permits school systems to use
the New Jersey Quality Achievement Award criteria—based on the
Baldrige Award criteria—as an alternative to its state assessment
criteria. Other states are considering a similar approach.
. The National Alliance of Business and the American Productivity and
Quality Center have developed the Baldrige In Education Initiative, a
national program to improve the management systems of education
organizations and educational outcomes.
. In April 2000, the National Education Goals Panel (NEGP) held a
nationwide teleconference, “Creating a Framework for High Achieving
Schools,” to focus on the Baldrige criteria in education. In the
foreword to a report issued in conjunction with the teleconference,
then-Governor Tommy G. Thompson of Wisconsin and 2000 chair for the
NEGP, said the Baldrige criteria for education “can provide educators
with a framework and strategies for improving their schools and
helping all children to reach high standards.”
. At the teleconference, Bob Chase, president of the National Education
Association (NEA), said, “The Baldrige process and what I call ‘new
unionism’ are a quality match. Most crucially, NEA’s new unionism and
the Baldrige process share the same bottom line, improving student
achievement.”
. Dr. Michael Wood, CEO, Mayo Foundation and Clinic, hosted a Baldrige
Health Care Summit on June 29, 2000, involving 10 leading health care
institutions in the United States.
. Special sessions on Baldrige in health care were held at the Institute
for Health Care Improvement conferences in December 1999 and December
2000.
. Motorola University hosted 120 health care leaders for a one-week
course on Baldrige and Quality Improvement in Health Care in February
2001.
. Richard Norling, CEO, Premier Inc., a leading distributor of health
care supplies, is serving as president of the private-sector Baldrige
Foundation during 2001.
Why are categories in education and health care needed?
Since its creation in 1987, the Malcolm Baldrige National Quality Award has
played an important role in helping thousands of U.S. companies improve not
only their products and services, their customers’ satisfaction, and their
bottom line, but also their overall performance.
Now, organizations in other sectors vital to the U.S. economy—education and
health care—are recognizing that the Baldrige Award’s tough performance
excellence standards can help stimulate their improvement efforts as well.
Just as it has for U.S. businesses, a Baldrige Award program can help these
organizations improve performance and foster communication, sharing of
“best practices,” and partnerships among schools, health care
organizations, and businesses.
How are recipients selected?
Organizations that are headquartered in the United States may apply for the
award. Applications for the award are evaluated by an independent Board of
Examiners composed of primarily private-sector experts in quality and
business. Examiners look for achievements and improvements in all seven
categories. Organizations that pass an initial screening are visited by
teams of examiners to verify information in the application and to clarify
questions that come up during the review. Each applicant receives a written
summary of strengths and areas for improvement in each area addressed by
the criteria.
“The application and review process for the Baldrige Award is the best,
most cost-effective and comprehensive business health audit you can get,”
says Arnold Weimerskirch, former chair of the Baldrige Award panel of
judges and vice president of quality, Honeywell, Inc.
Does quality pay?
Studies by NIST, universities, business organizations, and the U.S. General
Accounting Office have found that investing in quality principles and
performance excellence pays off in increased productivity, satisfied
employees and customers, and improved profitability—both for customers and
investors. For example, NIST has tracked a hypothetical stock investment in
Baldrige Award winners and applicants receiving site visits. The studies
have shown that these companies soundly outperform the Standard & Poor’s
500.
Is it tougher for small organizations to receive the award?
The Baldrige Award’s small business recipients have proven that any U.S.
organization can improve by using the criteria’s performance excellence
framework. But, given the importance of smaller businesses to the U.S.
economy, NIST is mapping out ways to strengthen awareness of the award
program and criteria among these organizations.
Can only U.S. organizations receive the award?
Any for-profit organization headquartered in the United States or its
territories may apply for the award, including U.S. subunits of foreign
companies.
Do the award criteria take into account an organization’s financial
performance?
Yes. The criteria include many factors that contribute to financial
performance, including business decisions and strategies that lead to
better market performance, gains in market share, and customer retention
and satisfaction. Organizations are urged to use financial information,
including profit trends, in analyzing and reporting on improved overall
performance and to look for the connection between the two.
Does the award amount to a product or service endorsement for the award
recipients?
No. The award is given because an organization has shown it has an
outstanding system for managing its products, services, human resources,
and customer relationships. As part of the evaluation, an organization is
asked to describe its system for assuring the quality of its goods and
services. It also must supply information on quality improvement and
customer satisfaction efforts and results. That does not mean that a
recipient’s products or services are endorsed.
Why are the Baldrige Award recipients asked to share their successful
strategies?
One of the main purposes of the award is to pass on information about the
recipient’s performance excellence strategies that other organizations can
tailor for their own needs. Representatives from the award recipients
willingly have shared their organizations’ performance strategies and
methods with thousands.
To what extent are they asked to share their strategies?
The managers of each recipient must decide how much time and effort to
devote to activities such as speaking engagements and tours of facilities.
The requirements of the award program are minimal. Recipients are asked to
participate in the award’s annual conference and several co-sponsored
regional conferences, to provide basic materials to those who request it on
their organization’s performance strategies and methods, and to answer news
media inquiries.
Do advertising and publicity diminish the image and prestige of the award?
The law establishing the award states that an award recipient may publicize
its receipt of such award and use the award in its advertising. Promoting
public and business awareness of quality improvement is one of the prime
goals of the program, and advertising is one way to meet this goal.
Guidelines help organizations assure their advertising is appropriate in
representing their Baldrige Award recognition.
Are organizations simply chasing after the award and ignoring the lessons
of performance improvement?
The perception by some that receiving the award is the goal of U.S.
organizations is not supported by the facts. Says Earnest Deavenport,
chairman and chief executive officer of Eastman Chemical Company, “Eastman,
like other Baldrige Award winners, didn’t apply the concepts of total
quality management to win an award. We did it to win customers. We did it
to grow. We did it to prosper and to remain competitive in a world
marketplace.” Thousands of organizations are using Baldrige Award
performance excellence criteria to assess their organization and to
improve. The program has helped to stimulate an amazing movement to improve
U.S. organizations, including companies; academic institutions; and
federal, state, and local government agencies.
If this is a federal government program, why are organizations charged a
fee to apply?
Federal funding for this program is about $5 million annually and is used
by NIST to manage the program. The application fees are charged to cover
expenses associated with distribution and review of applications and
development of feedback reports. The application and review process is
considered to be a very cost-effective and comprehensive business health
audit. For an application fee ranging from $5,000 for large organizations
to $500 for non-profit education institutions, organizations receive at
least 300 hours of review by a minimum of eight business and quality
experts. Site-visited organizations receive over 1,000 hours of in-depth
review. Every applicant receives an extensive feedback report highlighting
strengths and areas to improve. An article in the Journal for Quality and
Participation said, “The Baldrige feedback report is arguably the best
bargain in consulting in America.”
May an organization hire a consultant to help prepare answers for the
Baldrige application?
Applicants for the award are asked to supply facts and data to substantiate
their claims concerning their management practices. Consultants, including
members of the Board of Examiners, may provide services on performance
management issues as well as the Baldrige Award process. However, since
there are no secret answers or even right or wrong answers to the Baldrige
application, the award cannot be received by hiring someone to fill in the
blanks.
An organization must show through facts and data that it has a world-class
management system in place and that it is continually looking for ways to
improve.
As a final check before recommending recipients, members of the Board of
Examiners visit the more outstanding candidates for the award. During these
site visits, examiners interview employees and review pertinent records and
data. The objective is to verify the information provided in the
application and to answer questions raised during the board’s review. An
organization that hired someone to fill out its application would never
make it through this rigorous review if its performance management system
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