1. So You Want to Use the Baldrige Criteria? Prepared for TNCPE Customers by Dan Jordan 2009/2010 Criteria

2. Using the Baldrige Criteria

Organizational Profile(Level 1 Application)

Core Values

Categories (Level 2 Application)

Items and Areas to Address(Level 3 and Level 4 Applications)

3. Organizational Profile

Purpose

Provides anoverviewof your organization

Helps to better understand

• Thecontextin which your organization operates

• Keyrequirementsfor current and future businesssuccess andsustainability

• Theneeds ,opportunitiesandconstraintsplaced on your organizations performance management system

4. Organizational Profile

P.1 Organizational Description

Key organizational characteristics

Key Relationships

5. Organizational Profile

P.1 Organizational Description

P.1a Organizational Environment

• What do you do?

• • Product offerings goods and services offered

• Who are you? Why do you exist?

• • Culture shared set of attitudes, values

• • Core competencies areas of greatest expertise

• Workforce

• • Distinguishing traits

• • Requirements

• Facilities and equipment

• Regulatory environment health, safety, accreditation, certification, and/or registration

6. Organizational Profile

P.1 Organizational Description

P.1b Organizational Relationships

• Stockholders ( Governance )

• Customers / stakeholders

• • Grouping or differentiation

• • Requirements

• Supply chain

• • Suppliers, partners, collaborators

• • Means of communication

• • Role in innovation

• • Supply chain requirements

7. Organizational Profile

P.2 Organizational Challenges

P.2a Competitive Environment

• How do you know how you stack up? ( Competitors )

• What factors differentiate you from your competitors?

• Where do you get comparative and competitive data?

8. Organizational Profile

P.2 Organizational Challenges

P.2b Strategic Context

• Strategic challenges

• Strategic advantages

P.2c Performance Improvement System

• Linked to Organizational Learning

• How do you systematically improve?( Should be data based )

• Linked to assessment of maturity( Look at Scoring Guidelines )

9. Strategic Advantages

Marketplacebenefitsexerting a decisive influence on an organizations likelihood of success

Sources of current and future competitive success

Can come from:

• Core competencies

• Strategically important external resources

10. Force Field Examples Objectives Benefits Strategic Advantages Benefits Benefits Pressures Pressures Strategic Challenges Help you achieve your objectives Hinder your efforts to achieve your objectives 11. Governance

System of management and controls exercised in thestewardship of your organization

Ensures:

• accountability to stakeholders,

• transparency ofoperations,

• fair treatment of all stakeholders

Includes theperformance evaluationof seniorleadersand members of the governanceboard

12. Core Values

Visionary Leadership

Customer-Driven Excellence

Organizational & Personal Learning

Valuing Workforce Members and Partners

Agility

Focus on the Future

Managing for Innovation

Management by Fact

Societal Responsibility

Focus on Results and Creating Value

Systems Perspective

13. Visionary Leadership

Set directions

Create customervalue

Create clear and visiblevalues

Create highexpectations

Personal involvementwith workforce

• Inspire, Motivate, Encourage

• To contribute, develop and learn, be innovative

Serve asrole models

14. Customer-Driven Excellence

Know what contributesvalueto customers

• Product & service features and characteristics

• Modes of customer access

Look atcurrentandfuturecomponents

• How?Market surveys, focus groups, periodicals, customers of customers

Understandfactorsthat mayinfluencecustomer overall experience (face of the organization)

Recovering fromdefects

Features and characteristics thatdifferentiatefrom competitors

Directedtowardcustomer retention, loyalty, market share gain, and growth

15. Value

Perceivedworthof a product, service, process, asset, or functionrelativeto cost and to possible alternatives

Relative worth, utility, or importance

16. Organizational& Personal Learning

Well-executed approach includessharing knowledgevia systematic processes

Includes continuousimprovementandsignificantchange

Embedded

• Regularpart of daily work

• Practiced atalllevels

• Results in solvingroot cause

• Build andshareknowledge

• Driven by opportunities to effect significantmeaningful change

17. Organizational &PersonalLearning

Depends on havingopportunitiesfor personallearninganddevelopingandpracticingnew skills

Directedtoward

• Better products and services

• Being a more responsive organization

• Being more adaptive

• Being more innovative

• Being more efficient

18. Valuing Workforce Members & Partners

Valuing people means

• Committing toengagement

• Satisfaction

• Development

• Well-being

Partners (Internal and External)

• Established to better accomplishoverall goals

• Blendingof core competencies or leadership capabilities

• Develop longer termobjectives

• Addresskey requirementsfor success

• • Regular communication

• • Approach to evaluate progress

• • Means for adapting to change

19. Engagement

Commitment , both emotional and intellectual,to accomplishingthe work, mission, and vision of the organization

Engaged workforce findpersonal meaning and motivationin their work andreceivepositive interpersonal and workplacesupport

20. Agility

Capacity forrapid changeandflexibility

Cyclesfor introduction of new / improved products and services

Vital asset: cross-trained andempowered workforce

21. Empowered Giving people the knowledge, authority and responsibility to make decisions and take actions to create desired results Accountability Knowledge Responsibility Results 22. Focus on the Future

Understandingof short- and longer-termfactorsthataffectorganization and marketplace

Requires strongfuture orientation

Requires willingness to makelong-term commitmentsto key stakeholders

23. Focus on the Future

Included in planning anticipatecustomer expectations, new business opportunities, workforce needs, technological development, new business models

Strategic objectives and resource allocations needed toallow for future influences

24. Focus on the Future

Includes

• Developingleaders, workforce, and suppliers

• Accomplishing effectivesuccession planning

• Creating opportunities forinnovation

• Anticipatingpublic responsibilities and concerns

25. Managing for Innovation

Meaningful changeto improve

• Products,

• Services,

• Programs,

• Processes,

• Operations, and

• Business model to create new value for stakeholders

Part oflearning culture

Integratedinto daily work

Supported by performance improvement system

Builds onaccumulated knowledgeof organization and its people

26. Innovation

Makingmeaningful changeto improve products, programs, services, processes or organizational effectiveness and tocreate new valuefor stakeholders

Involves theadoptionof an idea, process, technology, or product that is eithernewornew to its proposed application

27. Management by Fact (1)

Measurements

• Derived frombusiness needandstrategy

• Providecriticaldata and information about key processes, outputs and results

• Needed forperformance management

• Data should besegmentedto facilitate analysis

28. Management by Fact (2)

Analysis

• Extractlarger meaningfrom data and information

• Uses data to determinetrends ,projections , andcause and effect

• Supports

• • Planning

• • Reviewof overall performance

• • Improvingoperations

• • Accomplishingchangemanagement

• • Comparingperformance with competitorsor best practice benchmarks

29. Management by Fact (3)

Measures

• Best represent factors that lead toimprovedcustomer, operational, financial, and critical performance

• Comprehensive settiedto customer and organizational performancerequirements

• • Provides clear basis foraligningall processes withgoals

30. Performance Management

Involvesconsolidationof data from various sources;asking questions about , andanalysisof the data; andputtingthe results into practice

Continuous and real-timereviewshelp toidentifyandeliminateproblems before they grow.

Definition of BPM from Wikipedia

31. Societal Responsibility (1)

Stresses

• Responsibilities to public

• Ethical behavior

• The need to practice good citizenship

Leaders arerole models

Protectionof health, safety and environment.Includes:

• Operations

• Life cycle of products and services

32. Societal Responsibility (2)

Stressesconservationof resources

Planning shouldanticipateadverse impacts from products, distribution, transportation, use and disposal

Local, state, and federal laws and regulations treated asopportunities for improvementbeyond mere compliance

33. Societal Responsibility (3)

Good citizenship

• Leadershipandsupportof publicly important purposes

• Examples:

• • Improve education and healthcare in community

• • Pursue environmental excellence

• • Practice resource conservation

• • Perform community service

• • Improve business and industry practices

• • Share nonproprietary information

• Influencesother organizations topartner for these purposes

34. Ethical Behavior

How an organization ensures that all decisions, actions, and stakeholder interactionsconformtomoralandprofessional principles

Principles distinguishrightfromwrong

35. Focus on Results and Creating Value

Results used tocreateandbalance valuefor key stakeholders

Builds loyalty

Contributes to growing the economy

Strategyexplicitly should include key stakeholderrequirements

Use abalancedcomposite of leading and laggingperformance measures

36. What is Valued and Measured Process 8 4 P r o d u c t Undesired Desired 7 3 6 5 2 1 How What Why P r i o r i t i e s For Customer For Producer Outcome Balance Your Balanced Scorecard Robin Lawton,Quality Progress,March, 2002. pp.66 - 71 Customer Desired Outcomes Value add (Loyalty, Referrals) Cust Satisfaction Customer Undesired Outcomes Complaints Lost orders Product/Service Attributes Product performance Customer specs Process Characteristics Customer Perspective Delivery reliability Accessibility Producer Desired Outcomes EFO Market share Sales Producer Undesired Outcomes to Avoid Waste Loss of customers Financial loss High turnover Product Attributes Producer Perspective Cost to produce Meets Technical specifications Ease of distribution Process Characteristics Producers Perspective Variability Productivity % First Pass NPV New products 37. Systems Perspective (1)

Successfulmanagementofoverallperformance requiressynthesis ,alignment , andintegration

38. Systems Perspective (2)

Synthesis

• Looking at the organization as awhole , building onkey business requirementsincluding core competencies, strategic objectives, actions plans, and work systems

39. Systems Perspective (3)

Alignment

• Keylinkagesbetween key processes

• • Leadership

• • Planning

• • Customer Focus

• • Information Management

• • Workforce Focus

• • Process Management

• • Results

40. Systems Perspective (4)

Integration

• Individualcomponents of performance management system operate in afully interconnectedmanner and deliveranticipated results

41. Categories

1 -Leadership

2 -Strategic Planning

3 -Customer Focus

4 -Information and Knowledge Management

5 -Human Resource Focus

6 -Process Management

7 -Results

42. Items (1)

1.1Senior Leadership

1.2Governance and Societal Responsibility

2.1Strategy Development

2.2Strategy Deployment

3.1Customer Engagement

3.2Voice of the Customer

4.1Measurement, Analysis, and Improvement of Organizational Performance

4.2Management of Information, Knowledge and Information Technology

43. Items (2)

5.1Workforce Engagement

5.2Workforce Environment

6.1Work Systems

6.2Work Processes

7.1Product and Service Outcomes

7.2Customer-Focused Outcomes

7.3Financial and Market Outcomes

7.4Workforce-Focused Outcomes

7.5Process Effectiveness Outcomes

7.6Leadership Outcomes

44. 1 - Leadership

Senior leaders personal actionguideandsustainthe organization

Organizationsgovernance

Organization addressesethical ,legal , andsocietalresponsibilities

45. 1.1 Senior Leadership

For the organization

• Guide

• Sustain

Communicationwith workforce

• What are you communicating?

• How are you communicating?

Encouragehigh performance

46. High-performance Work - 1

Work processes used to

• Systematically pursueever-higher levelsof overallperformance(organizational and personal)

• Includesquality, productivity, innovation rate, cycle time performance

Focuses on workforceengagement

47. High-performance Work - 2

May includeempowermentof people (self-directed responsibility)

• Individual and organizationalskill buildingandlearning

• Learningfrom other organizations

• Flexibilityin job design and work assignments

• Seeks toalignorintegrateorganization structure, core competencies, work, jobs, workforce development and performance management.

48. 1.2 - Governance and Societal Responsibility

Governance System

Responsibilities to public

Ensureethical behavior

Practicegood citizenship

49. Guide

What does guidemean ?

• Direct , orinfluenceusually to a particular end

What doyou have to havein order to guide?

• Vision, Road map

• Shareit

• Make itreal .

50. Sustain

Ability to address business needs

Agilityandstrategic managementto prepare for the future

Considers:

• Workforce capability ( knowledge, skills, abilities and competencies )

• Workforce capacity ( Ability to ensure sufficient staffing levels )

• Core competencies ( areas of greatest expertise )

• Work systems ( how work of the organization is accomplished )

• Resource availability F acilities

• Technology Equipment

• Knowledge

51. Governance

Stewardshipof the organization

Ensures:

• Accountabilityto owners/shareholders

• Transparencyof operations

• Fair treatmentof all stakeholders

52. Responsibilities to the Public

Stressconservationof resources

Planning shouldanticipate adverse impactsfrom products, distribution, transportation, use and disposal

Local, state, and federal laws and regulations treated asopportunities for improvementbeyond mere compliance

53. Good Citizenship

Leadershipandsupportof publicly important purposes

Examples:

• Improve education and healthcare in community

• Pursue environmental excellence

• Practice resource conservation

• Perform community service

• Improve business and industry practices

• Share nonproprietary information

• Influences other organizations topartner for these purposes

54. Legal Responsibility

Complianceto all local, state, and federal laws and regulatory requirements

Treat requirements asopportunities for improvementbeyond compliance

55. Societal Responsibility

Planning shouldanticipate adverse impactsfrom products, distribution, transportation, use and disposal

Leadership and supportof publicly important purposes, e.g.:

• Improve education and healthcare in community

• Pursue environmental excellence

• Practice resource conservation

• Perform community service

• Improve business and industry practices

• Share nonproprietary information

Influences other organizations topartner for these purposes.

56. 2 Strategic Planning

Three key aspects of organizational excellence important to strategic planning

• Customer-driven quality is astrategic viewof quality

• Operationalperformanceimprovementsandinnovation short- and longer-term productivity

• Organizational and personallearningalignmentof work processes and learning initiatives

57. 2 Strategic Planning

A well crafted strategic plan provides aroadmapfor success and theframework for clear communicationof what is important

58. 2 Strategic Planning

How the organizationdevelops strategic objectivesandaction plans ( Does not imply the need for formal planning systems or specific planning cycles )

How strategic objectives and action plans aredeployed

How strategic objectives and action plans arechanged

How progress ismeasured .

59. 2.1 Strategy Development

Process for developing strategic plan

Determinecore competencies ,strategic challengesandstrategic advantages

Establish strategy and strategic objectives

Summary of keystrategic objectivesand relatedgoals

60. Core Competencies

Areas of greatest expertise

Strategically importantcapabilitiesthat provide anadvantagein market-place or service environment

Frequentlychallengingfor competitors or suppliers toimitate

61. Strategic Challenges

Pressuresthat are an unmistakable influence on an organizations likelihood of future success

External

• Customer or marketneedsorexpectations

• Product, service, or technologicalchanges

• Financial, societal, and otherrisksorneeds

Internal

• Organizationalcapabilities

• Humanand other resources

62. Strategic Advantages

Marketplacebenefitsexerting an unmistakable influence on an organizations likelihood of success

Sources of current and futurecompetitivesuccess

Can come from:

• Core competencies

• Strategically important external resources

63. Force Field Examples Objectives Benefits Strategic Advantages Benefits Benefits Pressures Pressures Strategic Challenges Help you achieve your objectives Hinder your efforts to achieve your objectives 64. Goals

Performancelevel

Short- and longer-term

Ends thatguide actions

Quantitative are calledtargets

Stretchgoals refer to major or breakthrough improvements

65. Strategic Objectives

Responsesto address major change or improvement, competitiveness and business advantages

Focused on

• External and internal issues,

• Significantcustomer, market, product, service, or technologicalopportunitiesandchallenges

Broadly what an organizationmust achieveto remain or becomecompetitiveand ensure long-termsustainability .

66. 2.2 Strategy Deployment

Convertstrategic objectivesintoaction plans

Summarizeaction plans and key related performance measures or indicators

Project organizations futureperformance relative to comparisons

67. Action Plan

Include details ofresource commitmentsandtime horizonsfor accomplishment

Used indeployingstrategic objectives and creating organization-wideunderstanding

Includes creatingaligned measuresfor all departments and units

68. Summarize Action Plans and Key Performance Measures

What do youhave to havein place to respond to this?

• Project Management Plan

• Steps to achieve (activities)

• Means of measuring progress

• • On activities

• • On results

• Goals

69. Projections and Comparisons

Intended to improve organizations ability to

• Understandandtrackchanging, competitive performance factors

Enable organization tocompare rate of improvement and changerelative to competitors

Key diagnostic management tool

70. Considerations

What must you consider whendefiningkey performancemeasuresforaction plansin order to make key comparisons?

• They are related togoals

• They are related to measures ofimportancetocustomersand other keystakeholders

71. 3 Customer Focus

How organizationengages customers

How youbuilda customer-focused culture

How you listen to thevoice of the customer

How youuseinformation toimproveandidentifyopportunities forinnovation

72. Voice of the Customer

Process forcapturingcustomer-related information

• Requirements

• Expectations

• Desires

Includesgatheringandintegratingcustomer data (affectingpurchasing decisions )

• Surveys

• Focus groups

• Warranty data

• Complaints

73. Innovation Makingmeaningful changeto improve products, programs, services, processes or organizational effectiveness and tocreate new valuefor stakeholders Involves theadoptionof an idea, process, technology, or product that is eithernewornew to its proposed application 74. 3.1 Customer Engagement

Identifyanddesignproducts to meet customer and market

• Requirements

• Expectations

Define processes tosupportuse of your products andprovide accessthe organization

Create acustomer-focusedculture

75. Customer Engagement

Customerscommitmentto your brand and product offerings

Based on yourabilitytoservecustomersneedsandbuild relationships

Includescustomers

• Loyalty

• Retention

• Willingness to do business

• Willingness to refer others to you

76. 3.2 Voice of the Customer

Get information you can use (Listen)

• Help manage key product, service and business processes

• Help determine cost and revenue implications for setting improvement goals and priorities for change

Obtain customersatisfaction and dissatisfactiondata

Determine for customers and markets

• Requirements

• Expectations

Define process requirements Whats it worth? 77. Customer Satisfaction and Dissatisfaction

Satisfaction

• Requirements

• Needs

• Expectations

• Preferences

Dissatisfaction

• Complaints

• Win/loss analysis

78. 4 Measurement, Analysis, and Knowledge Management

Measurement

• Numerical information thatquantifiesoutcomes

Analysis

• Examination of facts and data to provide abasisfor effectivedecisions

Knowledge

• Accumulatedintellectualresourcesof the organization ( what you know and what you have learned )

79. 4 Measurement, Analysis, and Knowledge Management

Data, information and knowledgeassets

• Select

• Gather

• Analyze

• Manage

• Improve

Reviewperformance

Use the review toimproveperformance

Manageinformation technology.

80. 4.1 Measurement , Analysis, and Improvement of Organizational Performance

Measure performance

• Are you measuring theright things ?

• • Alignedwith mission, strategy, values, and behavior

• Are you measuring theright things right ?

• • Demonstrate improvement

• So what?

• • Numericallydefinethe meaning ofsuccess

81. 4.1 Measurement,Analysis , and Improvement of Organizational Performance

Examinefacts and data to provide a basis foreffective decisions

Involves gaining adeeper understandingof data and information

Used to support

• Evaluation

• Decision making

• Improvement

• Innovation

82. Types of Analyses (Examples)

Correlateproduct and serviceimprovementswith keycustomer indicators(satisfaction, retention, market share)

Financialbenefitsderived from improvements in workforce safety, absenteeism and turnover

Relationshipsamong product and serviceperformance indicatorsandfinancial indicatorssuch as operating costs, revenues, asset utilization, and value added per employee.

83. 4.1 Measurement, Analysis, andImprovementof Organizational Performance

Regularreviewof organizational performance against an objective or objectives

• Internal

• Comparative data

• Best practices and performance from benchmarking

Translatereviewfindingsinto priorities for continuous and breakthroughimprovement

• Using a systematic, fact-based evaluation and improvement process (Plan, Do, Check, Act or similar)

Involvessharingopportunities with

• Workforce

• Suppliers

• Collaborators

• Partners.

84. 4.2 Management of Information , Knowledge, and Information Technology

Right information or is it just data?

Qualityof information

• Accurate

• Integrity

• Timely

• Security and Confidentiality

Availability/accessibleto the right resources

• Workforce

• Suppliers

• Partners

• Collaborators

• Customers

85. 4.2 Management of Information ,Knowledge , and Information Technology

Organizational knowledge that is needed to

• Do the work

• Improveprocesses, products, services

• Keep currentwith changing business needs and directions

• Developinnovativesolutions

Collectionof what youknowand what you havelearnedas an organization

86. 4.2 Management of Information ,Knowledge , and Information Technology

Collectionandtransferof knowledge between

• Workforce

• Customers

• Suppliers

• Partners

• Collaborators

Identification and sharing ofbest practices

Information forstrategic planning .

87. 4.2 Management of Information , Knowledge, andInformation Technology

Software

• Value add

• Ease of use

• Integration

Infrastructure

• Hardware

• • Reliability

• • Security

• • Ease of use

• Connectivity

• • Availability

• • Reliability

• • Security

88. 5 Workforce Focus

Addresses key workforcepractices

Objective is toutilizeworkforcepotentialaligned with:

• Overall mission

• Strategy

• Action plans

How do you

• Engagethe workforce

• Managethe workforce (work/job design)

• Developthe workforce (training, education, experience)

89. 5 Workforce Focus

How do you assess

• Workforce capability

• Workforce capacity

How do you build workforce environment conducive tohigh performance.

90. High-performance Work - 1

Work processes used to

• Systematically pursueever-higher levelsof overallperformance(organizational and personal)

• Includesquality, productivity, innovation rate, cycle time performance

Focuses on workforceengagement

91. High-performance Work - 2

May includeempowermentof people (self-directed responsibility)

• Individual and organizationalskill buildingand learning

• Learningfrom other organizations

• Flexibilityin job design and work assignments

• Seeks toalign or integrateorganization structure, core competencies, work, jobs, workforce development and performance management.

92. 5.1Workforce Engagement (1)

How do you achievehigh performanceby

• Engagingyour workforce

• Compensating your workforce

• Rewarding your workforce

How do youdevelopyour workforce, including leaders, to achieve high performance

93. 5.1 - Workforce Engagement (2)

How do youassessto what extent the workforce is committed to the organization (engaged)

How do youusethe results of the assessment to achievehigher performance

• Relationship of assessment findings to key business results

94. 5.2 Workforce Environment

Management ofworkforce capability

Management ofworkforce capacity

How organization maintains asafe ,secureandsupportivework climate.

95. Workforce Engagement

Commitmentof the workforce (emotional and intellectual) to accomplishing the work, mission and vision

Engaged workers

• Findpersonal meaningandmotivationin the work

• Receivepositive interpersonal and workplacesupport

Key Factors

• Training and careerdevelopment

• Effectiverecognitionandrewardsystems

• Familyfriendliness .

96. Workforce Capability

Ability toaccomplishwork processes through

• Knowledge

• Skills

• Abilities

• Competencies

Capability may include ability to

• Buildand sustain relationships with customers

• Innovateand transition to new technologies

• Developnew products, services and work processes

• Meet changingbusiness, market and regulatorydemands.

97. Workforce Capacity

Ability to ensuresufficient staffing levelsto execute work processes and successfully deliver products and services

Includes ability to meetseasonalandvaryingdemand levels

98. High-performance Work - 1

Work processes used to

• Systematically pursueever-higher levelsof overallperformance(organizational and personal)

• Includes quality, productivity, innovation rate, cycle time performance

Focuses on workforceengagement

99. High-performance Work - 2

May includeempowermentof people (self-directed responsibility)

• Individual and organizationalskill buildingand learning

• Learningfrom other organizations

• Flexibilityin job design and work assignments

• Seeks toalign or integrateorganization structure, core competencies, work, jobs, workforce development and performance management.

100. Empowered Giving people the knowledge, authority and responsibility to make decisions and take actions to create desired results Accountability Knowledge Responsibility Results 101. 6 Process Management

Work systemsdesign and implementation

Key processdesign ,managementandimprovement

Readinessfor emergencies.

For work systems to deliver customer value and achieve organizational success and sustainability 102. 6.1 Work Systems

How you designwork systems

How youdeterminekey processes

For what end?

• Deliver customervalue

• Prepare for potentialemergencies

• Achieve organizationalsuccess

• Achieve organizationalsustainability .

103. 6.2 Work Processes

For work processes, how you

• Designkey work processes

• Implementor put into place key work processes to meet designrequirements

• Manage or operate day-to-day toensurerequirements are met

• • Incorporation ofinputfrom customers, suppliers, partners, and collaborators

• • Keymeasuresused

• Improve key work processes

• • Betterperformance

• • Reducedvariability

• • Sharelearnings

Includes support processes 104. Work Systems

How theworkof organization isaccomplished

Involves (Supply Chain)

• Workforce

• Key suppliers and partners

• Contractors

• Collaborators

Blendthe internalwork processesof the organization with thoseresourcesoutside the organization to develop, produce,and deliver products

105. 7 Results (1)

Results indicators can beleading and/or lagging

• Lagging indicators focus on thepast . (Financial measures are most familiar)

• Leading indicators canpredicttheoutcomeof lagging indicators

• • Example:Process performance measures (Temperature, throughput, cycle time) can predict the product outcome (specification, characteristics, etc.)

Knowingwhich indicators are leading and which are lagging can help an organizationanalyzecause and effectrelationships

• Example: Relating your workforce engagement findings to key business results (cause and effect)

106. 7 Results (2)

Performance and improvement in all key areas

• Product and service outcomes

• Customer-focused outcomes

• Financial and market outcomes

• Workforce-focused outcomes

• Process-effectiveness outcomes

• Leadership outcomes

Examined relative tocompetitorsand/or other organizations providingsimilarproducts or services

107. 7.1 Product and Service Outcomes

Key product, program and servicefeatures

Information gathered fromcustomersusing processes defined inItem 3.1 and 3.2

Measures address factors that affect customerpreferenceusually noted in Organizational Profile ( P.1 )

Segmentationby

• Product and service types and groups

• Customer groups

• Market segments

Appropriatecomparativedata.

108. 7.2 Customer-Focused Outcomes (1)

Customer Satisfaction and Dissatisfaction

Information gathered fromcustomersusing processes defined inItem 3.2

Data couldinclude :

• Retention, gains, and customer losses

• Complaints and complaint management

• Warranty claims

• Customer-perceived value based on quality and price

• Customer assessment of access and ease of use

• Awards and ratings

• Recognition from customers

109. 7.2 Customer-Focused Outcomes (2)

Segmentationby

• Product and service types and groups

• Customer groups

• Market segments

Appropriatecomparativedata

110. 7.3 Financial and Market Outcomes (1)

Aim is tounderstandyourfinancial sustainabilityand marketplace challenges and opportunities

Measuresare those usually tracked by senior leaders andreported in 4.1and financial managementapproachesdescribedin 2.2

111. 7.3 Financial and Market Outcomes (2)

Aggregatemeasures onfinancial returnmight include:

• Return on investment

• Operating margins

• Profitability

Measures offinancial viabilitymight include:

• Liquidity

• Debt-to-equity ratio

• Days cash on hand

• Asset utilization

• Cash flow

Segmentationby customer or market segments

Appropriatecomparativedata.

112. 7.4 Workforce-Focused Outcomes (1)

Aim is todemonstratehow well you have beencreatingandmaintaininga productive, engaging, and caringwork environment

Results address:

• Processes described inCategory 5

• Key work process needs described in Category 6

• Human resource plans described inItem 2.2

113. 7.4 Workforce-Focused Outcomes (2)

Measures for workforceengagementandsatisfactionmight include:

• Improvement in local decision making

• Organizational culture (e.g. extent and success of self-direction)

• Workforce and leader development (effectiveness, not just extent)

Outcomemeasures might be:

• Increased workforce retention resulting from establishing a peer recognition program, or

• The number of promotions resulting from leadership development program

• Both reflect cause and effect

114. 7.4 Workforce-Focused Outcomes (3)

Genericfactors might include:

• Safety

• Absenteeism

• Turnover

• Satisfaction

• Complaints (grievances)

Local or regionalcomparisons appropriate

115. 7.4 Workforce-Focused Outcomes (4)

Organization-specificfactors

• Extent of training, re-training, or cross-training to meet capability and capacity needs

• Extent of self-direction

• Extent of volunteer involvement in process activities

116. 7.5 Process Effectiveness Outcomes (1)

Aim is to achievework systemandwork processeffectiveness and efficiency

Results address key operational requirements presented in Item 6.1 and 6.2

Measures track key processes andoperational improvement

Results should provide:

• Key information foranalysis and reviewof organizational performance (Item 4.1)

• Explanation for product and service outcomes (Item 7.1), customer-focused outcomes (Item 7.2), and financial and market outcomes (Item 7.3) ( cause and effect process outcomes should influence outcomes in 7.1, 7.2, and 7.3)

117. 7.5 Process Effectiveness Outcomes (2)

Measures forwork system performancemight include:

• Just-in-time delivery

• Acceptance results for externally provided products, services, processes

• Supplier and partner performance

• Product, service, and work systeminnovationrates and results

• Response times for emergency drills or exercises

• Results for contingency exercises

118. 7.5 Process Effectiveness Outcomes (3)

Measures for processeffectivenessandefficiencymight include:

• Performance that demonstratesimproved cost savingsor higher productivity (Could be linked to Six Sigma initiative results)

• Internal responsiveness indicators (cycle times, production flexibility, lead times, set-up times, time to market)

• Improvementsinsupportprocesses

• Reduced emission levels,

• Waste stream reductions

• Recycling

119. 7.6 Leadership Outcomes (1)

Aim is to maintain afiscally sound ,ethicalorganization that is agood citizenin its community

Results related toaccomplishmentof strategy andaction planslinked to:

• Strategic objectives and goals -Item 2.1b(1)

• Key action plan performance measures Item 2.2a(6)

• Performance projections or key action plan performance measures Item 2.2b

120. 7.6 Leadership Outcomes (2)

Measures forethical behavior( Item 1.2 Note 4 ) might include:

• Percentage of independent board members

• Instances of ethical conduct breaches and responses

• Survey results on workforce perceptions of organization ethics

• Ethics hotline use

• Results of ethics reviews and audits

121. 7.6 Leadership Outcomes (3)

Measures offiscal accountabilitymight include:

• Financial statement issues and risks

• Internal and external auditor recommendations and responses

Measures ofregulatoryandlegalcompliance related toItem 1.2b (1)

Measures of organizationalcitizenshipshould support key communities discussed inItem 1.2cand might include:

• Efforts to strengthen local community services

• Performing community service

• Improving industry and business practices