Using the Baldrige Criteria for Performance Excellence as ...atc3.bentley.edu/conferences/service2013/files/19.pdf · Using the Baldrige Criteria for Performance Excellence as a Framework

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-for-

profit

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. Leadership

2. Strategic Planning

3. Customer Focus

4. Measurement, Analysis, and

Knowledge Management

5. Workforce Focus

6. Operations Focus

7. Results

2011-2012 Criteria Item Listing

1. Leadership (120 points)

1.1 Senior Leadership (70)

1.2 Governance & Social Responsibility (50)

2. Strategic Planning (85 points)

2.1 Strategy Development (40)

2.2 Strategy Implementation (45)

3. Customer Focus (85 points)

3.1 Voice of the Customer (45)

3.2 Customer Engagement (40)

4. Measurement, Analysis, and Knowledge

Management (90 points)

4.1 Measurement, Analysis & Improvement of

Organizational Performance (45)

4.2 Management of Information, Knowledge

& Information Technology (45)

5. Workforce Focus (85 points)

5.1 Workforce Environmenet (45)

5.2 Workforce Engagement (40)

6. Operations Focus(85 points)

6.1 Work Systems (45)

6.2 Work Processes (40)

7. Business Results (450 points)

7.1 Product and Process Outcomes (120)

7.2 Customer-Focused Outcomes (90)

7.3 Workforce-Focused Outcomes (80)

7.4 Leadership and Governance Outcomes

(80)

7.5 Financial and Market Outcomes (80)

Total Points 1000

The Baldrige Framework –

A Systems Perspective

4 Measurement, Analysis, and Knowledge Management

1 Leadership

Organizational Profile:

Environment,

Relationships, and Strategic

Situation

2

Strategic

Planning

5

Human

Resource

Focus

3

Customer

Focus

6

Operations

Focus

7

Results

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)

http://www.nist.gov/baldrige/award_recipients/lockheed-martin.cfm

http://www.nist.gov/baldrige/award_recipients/mesa_profile.cfm

http://www.nist.gov/baldrige/award_recipients/no-ms-health-services_profile.cfm

http://www.nist.gov/baldrige/award_recipients/irving_profile.cfm

MBNQA Winners

2011 Winners

• Concordia Publishing House (nonprofit)

• Henry Ford Health System (health care)

• Schneck Medical Center (health care)

• Southcentral Foundation (health care)

http://www.nist.gov/baldrige/award_recipients/concordia_profile.cfm

http://www.nist.gov/baldrige/award_recipients/ford_profile.cfm

http://www.nist.gov/baldrige/award_recipients/schneck_profile.cfm



http://www.nist.gov/baldrige/award_recipients/southcentral_profile.cfm



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)

http://www.nist.gov/baldrige/award_recipients/medrad_profile.cfm

http://www.nist.gov/baldrige/award_recipients/medrad_profile.cfm

http://www.nist.gov/baldrige/award_recipients/purina_profile.cfm




http://www.nist.gov/baldrige/award_recipients/freese-nichols_profile.cfm




http://www.nist.gov/baldrige/award_recipients/k-n-management_profile.cfm

http://www.nist.gov/baldrige/award_recipients/k-n-management_profile.cfm

http://www.nist.gov/baldrige/award_recipients/studer-group_profile.cfm




http://www.nist.gov/baldrige/award_recipients/good-samaritan_profile.cfm

http://www.nist.gov/baldrige/award_recipients/good-samaritan_profile.cfm

http://www.nist.gov/baldrige/award_recipients/mcps_profile.cfm

http://www.nist.gov/baldrige/award_recipients/mcps_profile.cfm

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)

http://www.nist.gov/baldrige/award_recipients/midway_profile.cfm

http://www.nist.gov/baldrige/award_recipients/atlanticare_profile.cfm

MBNQA Winners

2008 Winners • Cargill Corn Milling North America

(manufacturing)

• Poudre Valley Health System (health care)

• Iredell-Statesville Schools (education)

http://www.nist.gov/baldrige/publications/upload/Cargill_Corn_Milling_Profile.pdf

http://www.nist.gov/baldrige/publications/upload/Poudre_Valley_Health_System_Profile.pdf

http://www.nist.gov/baldrige/publications/upload/Iredell_Statesville_Schools_Profile.pdf



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

• Senior Leadership Responsibilities

• Vision, Values, Direction, Expectations, Communication

• Empowerment and Innovation

• Organizational/Employee Learning

• Performance/Capability Review

• Use of Results

• Leadership Improvement

• Management Accountability

• Legal & Ethical Behavior & Business Practices

• Societal Impacts

• Public Concerns

• Support and Strengthen Key Communities

1.1 Senior

Leadership

1.2 Governance & Societal

Responsibility

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.


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)


0 0 1 2 3 4

Do senior leaders’ personal actions reflect a commitment to the organization’s values?

(10 points)


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)


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)


0 0 1 2 3 4

Do senior leaders encourage frank, 2-way communication throughout the organization?

(10 points)



50% An effective method has been established, but only some areas of the company

use it.


100% Our company is well known for doing this better than anyone else in our

industry.


To what extent....

Do all managers concentrate on satisfying the customer, have high performance

expectations and review overall performance against these expectations? (10 points)


0 0 1 2 3 4

Do most workers focus on satisfying customers and becoming high performers? (10

points)


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)


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)


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)


0 0 1 2 3 4

Does senior management support and encourage employees to participate in outside

activities that strengthen the community? (5 points)


0 0 1 2 3 4

TOTAL POINT VALUE: _____________

% SCORE (TOTAL POINT VALUE/52):___________

Customer Focus

• Listening to Current Customers

• Listening to Potential Customers

• Customer Satisfaction & Engagement

• Satisfaction Relative to Competitors

• Dissatisfaction

• Product Offerings

• Customer Support

• Customer Segmentation

• Customer Data Use

• Relationship Management

• Complaint Management

3.1 Voice of the Customer

3.2 Customer Engagement

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. CUSTOMER 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?

(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.


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?

• 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

Key Excellence Indicators – Customer and Market Focus

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:



50% An effective method has been established, but only some areas of the company use it.


100% Our company is well known for doing this better than anyone else in our industry.


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)


0 0 1 2 3 4

Has the company gathered information about what your customers will want in the future and shared that

information with you? (10 points)


0 0 1 2 3 4

Does the company gather actionable information and feedback on your products and services from former

customers, potential customers, and customer of competitors? (10 points)


0 0 1 2 3 4

Does the company regularly gather information from customers on their satisfaction, dissatisfaction, and level

of engagement with your products and services? (10 points)


0 0 1 2 3 4

Do your methods for determining customer satisfaction, dissatisfaction, and engagement differ among customer

groups and market segments, as appropriate? (10 points)


0 0 1 2 3 4

Do you know how your levels of satisfaction and engagement compare with competitors? (10 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:







Does the company use customer satisfaction information throughout the organization to improve upon its

products and services? (10 points)


0 0 1 2 3 4

Do your customers find it easy and “hassle free” to do business with your company? (10 points)


0 0 1 2 3 4

Does the company make it easy for customers to seek assistance and voice complaints and resolve those

complaints quickly? (10 points)


0 0 1 2 3 4

Does the company analyze customer complaints and take actions to eliminate the source of these complaints?

(10 points)


0 0 1 2 3 4


% SCORE (TOTAL POINT VALUE/40):___________

Information and Analysis

• 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

4.1 Measurement and

Analysis of Organizational Performance

4.2 Management of

Information, Knowledge & Information Technology

• 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.


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.


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)







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)


0 0 1 2 3 4

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)


0 0 1 2 3 4

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)


0 0 1 2 3 4

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)


0 0 1 2 3 4

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)


0 0 1 2 3 4

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)


0 0 1 2 3 4







To what extent....

Does the company use information collected about other companies to identify opportunities for improvement?

(5 points)


0 0 1 2 3 4

Does the company set and communicate stretch targets for important processes and results? (5 points)


0 0 1 2 3 4

Does the company encourage the collection and sharing of relevant knowledge, including best practices, from

one area of the company to another? (5 points)


0 0 1 2 3 4

Does the company ensure the accuracy, integrity and reliability, timeliness, security and confidentiality of its

data, information, and knowledge? (5 points)


0 0 1 2 3 4

Does the company ensure that hardware and software are reliable, secure, and user-friendly? (5 points)


0 0 1 2 3 4

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)


0 0 1 2 3 4


% SCORE (TOTAL POINT VALUE/48:___________

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- long-

term, 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 2.2-

1) 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).

Documents

Using the Baldrige Criteria for Performance Excellence as ...atc3.bentley.edu/conferences/service2013/files/19.pdf · Using the Baldrige Criteria for Performance Excellence as a Framework