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Insights to Performance
Excellence 2009–2010
Also available from ASQ Quality Press:

The Making of a World-Class Organization


E. David Spong and Debbie Collard

The Executive Guide to Understanding and Implementing the Baldrige Criteria: Improve Revenue
and Create Organizational Excellence
Denis Leonard and Mac McGuire

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Transformation to Performance Excellence: Baldrige Education Leaders Speak Out


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The Principal's Leadership Counts!: Launch a Baldrige-Based Quality School


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Business Performance through Lean Six Sigma: Linking the Knowledge Worker, the Twelve Pillars,
and Baldrige
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There is Another Way!: Launch a Baldrige-Based Quality Classroom


Margaret A. Byrnes with Jeanne C. Baxter

Charting Your Course: Lessons Learned During the Journey Toward Performance Excellence
John G. Conyers and Robert Ewy

From Baldrige to the Bottom Line: A Road Map for Organizational Change and Improvement
David W. Hutton

The Executive Guide to Understanding and Implementing Lean Six Sigma


Robert M. Meisel, Steven J. Babb, Steven F. Marsh, and James P. Schlichting

To request a complimentary catalog of ASQ Quality Press publications, call 800-248-1946,


or visit our Web site at http://qualitypress.asq.org.
Insights to Performance
Excellence 2009–2010
An Inside Look at the 2009–2010
Baldrige Award Criteria

Mark L. Blazey

ASQ Quality Press


Milwaukee, Wisconsin
American Society for Quality, Quality Press, Milwaukee 53203
© 2009 by ASQ
All rights reserved. Published 2009
Printed in the United States of America
14 13 12 11 10 09 5 4 3 2 1

ISBN-13: 978-0-87389-755-6

No part of this book may be reproduced in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written permission
of the publisher.

Publisher: William A. Tony


Acquisitions Editor: Matt Meinholz
Project Editor: Paul O’Mara
Production Administrator: Randall Benson

ASQ Mission: The American Society for Quality advances individual, organizational,
and community excellence worldwide through learning, quality improvement, and
knowledge exchange.

Attention bookstores, wholesalers, schools, and corporations: ASQ Quality Press books,
videotapes, audiotapes, and software are available at quantity discounts with bulk pur-
chases for business, educational, or instructional use.
For information, please contact ASQ Quality Press at 800-248-1946, or write to ASQ
Quality Press, P.O. Box 3005, Milwaukee, WI 53201-3005.
To place orders or to request a free copy of the ASQ Quality Press Publications Catalog,
including ASQ membership information, call 800-248-1946. Visit our Web site at
http://www.asq.org or http://www.asq.org/quality-press.

Printed on acid-free paper


This book is dedicated to the memory of my father, Everett,
who taught me the value of continuous improvement,
and to my family members, who provide support for the
continuous search for excellence: my mother, Ann L. Blazey,
who at 81 continues to strive to improve
everything she does; my brothers Scott, Brian, and Brent;
my children Elizabeth and Mark; and most of all,
my lifelong partner and loving wife Karen.
Contents

Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiv
Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvi
Insights to Performance Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Preface: Organizational Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
P.1 Organizational Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
P.2 Organizational Situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Category 1—Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
1.1 Senior Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
1.2 Governance and Societal Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Category 2—Strategic Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103


2.1 Strategy Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
2.2 Strategy Deployment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

Category 3—Customer Focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125


3.1 Customer Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
3.2 Voice of the Customer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

Category 4—Measurement, Analysis, and Knowledge Management . . . . . . . . . . . . . . . . . . . 147


4.1 Measurement, Analysis, and Improvement of Organizational Performance . . . . . . . . . . . . . . . . . . . . . . . 148
4.2 Management of Information, Knowledge, and Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . 158

Category 5—Workforce Focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165


5.1 Workforce Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
5.2 Workforce Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181

Category 6—Process Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189


6.1 Work Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
6.2 Work Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197

Category 7—Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207


7.1 Product Outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
7.2 Customer-Focused Outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
7.3 Financial and Market Outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
7.4 Workforce-Focused Outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
7.5 Process Effectiveness Outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
7.6 Leadership Outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230

vii
Contents
viii

Tips on Preparing a Baldrige Award Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235


Scoring System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
Clarifying the Baldrige Scoring Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
Self-Assessments of Organizations and Management Systems . . . . . . . . . . . . . . . . . . . . . . . . 299
The Site Visit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317
Clarifying Confusing Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345
About the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361
CD-ROM Contents
Insights to Performance Excellence 2009–2010 contains a companion CD-ROM, located on the inside back cover, with
the following contents:

2009 CD-ROM Contents (PDF and Word)


2009 Baldrige Process Calendar (PDF and Word)
2009 Business
2009–2010 Baldrige Business Criteria and Applications
2009–2010 Baldrige Business Criteria Booklet (PDF)
2009–2010 Baldrige Business Criteria – Categories only (PDF and Word)
2009 Baldrige Award Application Forms Booklet (PDF)
2009 Baldrige Award Application Form (Word)
2009 Eligibility Certification Forms (Word)
2009–2010 Optional Worksheet - Business (PDF and Word)
2009 Baldrige Business Scoring Calibration Guide (PDF and Word)
2009 Baldrige Business Application Development Templates (Word)
ISO 9001 and Baldrige 2009 Comparison
2009 Baldrige or ISO 9001 (PDF)
ISO 9001 and Baldrige 2009 Comparison Matrix (PDF and Excel)

Alignment of Baldrige With Six Sigma, Lean Thinking, and Balanced Scorecard (PDF)
Additional Materials from the Baldrige Award Web Site
A Baldrige Perspective (PDF)
Are We Making Progress As Leaders? (PDF)
Are We Making Progress? (PDF)
Baldrige Frequently Asked Questions (PDF and Word)
Getting Started (PDF)
How Do You Know? (PDF)
Improvement Act of 1987 (PDF)
Why Apply (PDF)
Why Baldrige (PDF)

Some files on this CD-ROM require Microsoft Word or Microsoft Excel.


PDF files may be opened using Adobe Reader 6.0 or higher or Adobe Acrobat 6.0 or higher. Adobe Reader may be
downloaded free of charge from the Adobe Web site at http://www.adobe.com.
All original materials on this CD-ROM ©2009 by ASQ Quality Press and Quantum Performance Group.
All rights reserved.
To place orders or to request a free copy of the ASQ Quality Press Publications Catalog, including ASQ membership
information, call 800-248-1946. Visit our Web site at http://www.asq.org or http://www.asq.org/quality-press.

ix
Foreword
LEADERSHIP CHALLENGES

T
his year the Baldrige National Quality Award They are, however, likely to tell at least 20 of their
celebrates its twentieth year answering the friends, while only five will hear of the startling news
question, “What drives success in organiza- associated with delight. Worst of all, it costs 10 times
tions?” Some specific drivers have changed over time as much to regain a lost customer as it does to retain
but the fundamental drivers are the same. These a current one. With the large number of Internet-
fundamental drivers of excellence have proven to be based consumer buying sites in place today, dissatis-
the same for all types of organizations whether in the fied customers can easily tell thousands about their
private sector, education, health care, or government. bad experiences. The 21st century has evolved a
Dr. Mark Blazey is the leading expert in the appli- more demanding customer-driven economy. If orga-
cation of the Baldrige Criteria to help organizations nizations intend to thrive, the workforce and leaders
improve and achieve outstanding levels of perfor- must understand the requirements and expectations
mance. He provided extremely valuable insight— of their customers.
through his writings and personal consulting—to Being customer-focused and understanding their
help Xerox develop world-class management requirements are necessary for success, but not suffi-
systems that led to Xerox Business Services being cient. Organizations must consistently deliver value
recognized as a 1997 recipient of the Baldrige Award. to the customers they want to serve. This requires that
He has helped many other organizations increase key work processes produce desired results every
their performance and earn the Baldrige Award and time. That is why a process orientation is important.
similar state awards as well. Dr. Blazey provides Too many people in nonmanufacturing disciplines,
many valuable insights to help leaders make the such as sales, education, or health care, believe that
changes needed to achieve the highest levels of using process discipline to carry out work is an idea
performance excellence—many of which are that does not apply in their professional-driven
highlighted in this introduction. world. The recipients of the Baldrige Award would
To be successful, organizations must engage their not agree with this view. They demonstrate clearly
customers—although they may choose to call them that a customer-focused process orientation is critical
many names, such as clients, students, patients, fam- for success in manufacturing as well as nonmanufac-
ilies, constituents, communities, voters, rate-payers, turing (such as health care and public school systems)
or passengers, to name a few. The nomenclature and in large and small organizations.
changes depending upon the language of the organi- Unfortunately, even when organizations begin to
zation, but it is these customers who make decisions execute processes consistently, their leaders may find
about whether they will continue to be loyal or go that excellence and optimum performance continue
elsewhere. Organizations that can keep customers to elude them. Organizations can fail to satisfy cus-
loyal and attract new ones will thrive. Strange as it tomers even when key work processes function as
may seem, there are organizations that have not put designed—if the design was not based on customer
delighting customers at the top of their priority list requirements. Internally focused processes are too
(or anywhere on the list). Delighted customers are often driven by designers—without regard for cus-
five times more likely to continue to use an organiza- tomer concerns. The resulting organizational arro-
tion or recommend that organization to others, than gance—the belief that we know better than the
those who are simply satisfied. On the other hand, 80 customer—is almost certain to bring about customer
percent of dissatisfied customers are likely to walk dissatisfaction and ultimately revolt, causing cus-
away without a word to the offending organization. tomers to demand change or leave.

xi
Foreword
xii

To be successful, organizations must consistently While customer focus, strategic planning, and
understand and precisely execute those processes that data to support effective decision making are critical
deliver the four or five characteristics—the vital components of the successful organization, these fac-
few—that are critical to customer delight. The win- tors combined are still not sufficient to ensure suc-
ners in a highly competitive environment are the cess. Every high-performing organization must
organizations that listen to the voice of the customer acquire good people, train them, motivate them, and
to understand their preferences and requirements and retain them. To be successful today, organizations
then design and execute work processes aimed at must develop an engaged workforce that contributes
delighting them better than anyone else. its utmost to the success of the organization and its
Many leaders find it difficult to determine what customers. Workers must have the competencies to
customers want, fend off the competition, satisfy use facts and information to make good decisions,
workers, and operate within a constrained budget. and to continue learning and contribute to their own
That is why the development and execution of strat- growth and development. In a world where product
egy is essential. Strategy development demands: and service superiority lasts only a short time, it is
• Understanding the direction in which cus- the capabilities and commitment of the workforce
tomers are moving, the direction in which the that drive ongoing excellence and differentiation. No
competition is moving, and the direction in longer are top performing organizations simply look-
which the market is moving ing for workers with the right skills. Today, success-
• Coupling that information with the capabili- ful organizations need workers who are data-driven,
ties and desired direction of the organization customer-focused, and process-oriented—engaged
• Identifying the few things that are critical to people who promote improvement and innovation.
the future success of the organization The responsibility of leadership is to make this
• Defining, in measurable, outcome-oriented system come together and work harmoniously.
terms, what the organization must actually Basically, leadership has two functions: first, to set
achieve to be successful in the future the direction very clearly, based on a strategy that
• Converting those strategies into action to brings value to its customers and the marketplace;
align and focus the work of the organization and then to establish the environment in which that
at all levels. direction is carried out consistently.
Some leaders find it difficult to establish and
Managing the implementation of strategy and related
articulate a clear vision and role model a set of values
actions requires clear directions and effective moni-
that lead to success. Without a clear direction, the
toring at all levels, which is facilitated by a dashboard
people in an organization are forced to substitute
showing key performance and process measures
their own ideas about the right direction. When many
throughout the organization. No one would think of
do this, the organization finds itself pulled in differ-
driving a car on a trip or getting on an airplane if the
ent directions. Leaders cannot expect people to know
instrument panel was missing. Yet unsuccessful lead-
what to do if they have not established and continu-
ers often make critical decisions based on intuition
ously reinforced the norms of desired behavior. Great
and inadequate measures.
leaders lead by example—role modeling the desired
A good dashboard provides measures of leading
behaviors that are expected of all.
indicators to help leaders understand what is impor-
The best organizations in every sector have
tant to customers, how well it is delivering on those
demonstrated that all parts of the system must be
things that are important, the reaction of its cus-
effectively integrated to optimize performance. It is
tomers, and the capacity of its work processes and
not possible to achieve excellence by only doing the
delivery systems. With this advance knowledge, lead-
things that are easy and ignoring the rest.
ers can make better decisions about the actions
With his best-selling series and his personal involve-
needed to be successful, bring more value to the mar-
ment, Dr. Blazey has been helping leaders and organi-
ketplace, and respond effectively to changing circum-
zations of all types and in all sectors achieve success
stances and new opportunities.
Foreword
xiii

and develop enviable performance levels. He has and operational excellence. The book delivers the
helped them develop practical approaches for contin- lessons, provides the insights, and sets the framework
uous improvement that serve as the cornerstone for for a successful journey to performance excellence.
leadership and organizational success. Blazey’s per-
sonal insight and clear explanations help make com-
plex Baldrige concepts much simpler. That is what John Lawrence
makes this book a best-seller. Insights to Performance Retired Vice President of Quality
Excellence 2009–2010 is a book for beginners as well Xerox Business Services
as experts in the field of organizational development 1997 Baldrige Recipient
Preface

A
substantial portion of my professional life has mance management system, but also how these parts
been spent helping people understand the connect and align. My goal for this book is that read-
power and benefits of this integrated manage- ers will understand more fully what each area of the
ment system and become examiners for many perfor- performance excellence system means for organiza-
mance excellence awards. These people come from tions and find the synergy within the six major
all types of organizations and from all levels within process-oriented parts of the system—leadership;
those organizations. Participants include CEOs, gen- strategic planning; customer and market focus; mea-
erals, admirals, corporate quality directors, planners, surement, analysis, and knowledge management;
state organization chiefs, small-business owners, workforce focus; and process management—that lead
heads of hospitals, teachers, professors, medical doc- to excellent performance results.
tors, and school superintendents, to name a few. Leaders report that this book provides a valuable,
This book was originally developed for them. It step-by-step approach to help identify and put in place
was used as a teaching and reference text to guide their properly focused continuous improvement systems. As
decisions and deliberations as they provided feedback progress is made, improvement efforts in one area will
to organizations that documented their continuous lead to improvements in other areas. This process is
improvement efforts using Baldrige Award-type man- similar to experiences we have all encountered as we
agement systems. Many examiners who used this text, carry out home improvement: improve one area, and
especially Tom Kubiak, asked me to publish it in a many other areas needing improvement become appar-
stand-alone format. They wanted to use it to help their ent. This book will help identify areas that need imme-
own organizations, customers, and suppliers guide and diate improvement as well as areas that are less urgent
assess their continuous improvement efforts. but, nevertheless, vitally linked to organizational and
These two groups of readers—examiners of qual- operational excellence.
ity systems and leaders of organizations seeking high I am continually looking for feedback about this
levels of performance—can gain a competitive edge book and suggestions about how it can be improved.
by understanding not only the parts of a high-perfor- Please contact me via e-mail at [email protected].

xiv
Acknowledgments

H
arry Hertz, Curt Reimann, and the dedicated Prozeller, Dan Thorpe, Ed Bergin, Linda Watson,
staff of the Malcolm Baldrige National Diane Rivers, Michael Chapman, Linda Janczak,
Quality Award office have provided long- Judith Cherrington, Laurie Emerson, Patricia Stevens,
standing support and guidance in promoting perfor- Charlie Blass, Kelly Gilhooly, Pat Webb, Annemieke
mance excellence. Karen Davison, April Corniea, Hytinen, and George Raemore.
John Lawrence, and Paul Grizzell provided substan- I would also like to thank Christina Perrin and
tial editorial and analytical assistance. They have all Liz Blazey for typing, background research, and
contributed to analyses that are a part of this book. proofreading.
I also greatly appreciate the work of Scott Blazey The chapter on site visits, including the Expected
of Enterprise Design and Publishing for working with Results Matrix, the Criteria model and integrated
me every step of the way to prepare this book for pub- management systems analysis, the management and
lication. Without his efforts, this book would not exist. performance excellence surveys, the performance
Many others have helped shape my thinking standard for leadership, the sections concerning the
about performance excellence and refine this book, potential adverse consequences of not doing what the
including Joe Sener, Olga E. Soroka Striltschuk, Gary Criteria require, the application preparation files, the
Floss, Rosye Faulk, John Barnette, Roy Bourne, Item flow diagrams, the engagement questions, and
Deborah Cremeans, Jeff Calhoun, Brian Lassiter, Jean the Scoring Calibration Guides are used with permis-
Bronk, Rob Ecklin, Rob Marchelonis, Harry sion of Quantum Performance Group. I would also
Zechman, Al Aycock, Kathy Ahsing, Ernestine Tyler, like to recognize and thank Brian Lassiter, April
Chad Cloud, Christina Chonka, Cynthia LeFebvre, Corniea, Jean Bronk, and Mike Reagan for helping to
Wanda Thurmond, Stephen Milne, Gerald Winters, expand the Expected Results Matrix into its current
Mickey Mayland, Mary Gamble, Sylvia Rolfs, Patrick form and, together with Sylvia Rolfs and Jeff Calhoun
O'Boyle, Maggie Cronin, Norma Krech, Barbara for helping to edit the Scoring Calibration Guides.
Risser, Angie Germain, Orland Pitts, Ed Hare, April The analysis of Six Sigma, Lean, and Balanced
Umluf, Debra Danziger-Barron, Jim Shipley, Tom Scorecard is used with permission of Paul Grizzell
Kubiak, Thad Allen, Christine Wehrenberg, Kory and Quantum Performance Group. The Core Values,
Brendsel, Doug Borden, Rich Harris, Ginger Baker- Criteria, selected glossary terms, award recipients,
Betz, Patricia Billings, Wendy Brennan, Gerald and background information in this book are drawn
Brown, Beverly Centini, Sheryl Billups, Joe Kilbride, from information in the public domain supplied by
Linda Vincent, Jim Percy, Elizabeth Hale, Joan Wills, the Malcolm Baldrige National Quality Award pro-
Steve Hoisington, Liz Menzer, Brett Remington, John gram. Kevin Hendricks and Vinod Singhal provided
Gustafson, Jack Evans, Arnie Weimerskirch, Marty research results that were used in this book from their
Mariner, Jerry Holt, Bill MacLachlan, Doug Green, extensive study of financial performance. Data from
John Riabov, Paul Kuchuris, Carol Ganster Fisher, the Economic Evaluation of the Baldrige National
Bob Ewy, Jo-Ann Kratz, Sandra Cokeley, Gary Jones, Quality Program by Albert Link and John Scott was
Bill Smith, Mike Smith, Janice Weinman, Peggy prepared for the National Institute of Standards and
Siegel, Norm Ridder, Chuck McCausland, Ann Technology (NIST) in October 2001. The
Galbraith, Bob Griswold, Harry Burt, Paul Schindler, “Excellence equals Managing Change at an
Steve Uebbing, Lynn Erdle, Brian Dunster, Robert Accelerated Rate” formula is used with permission
Frisina, James Miller, Jack Smith, Fred Smith, Dennis from Quantum Performance Group.
Nystrom, Rich Rose, Kathy Malcolm, Harold
Mark Blazey
Stafford, Annie Norman, Roberta Early, Judd

xv
Introduction

T
he Malcolm Baldrige National Quality Award improve their rate of improvement. They get better
(MBNQA) 2009–2010 Criteria for Performance faster than their competition.
Excellence and scoring guidelines are powerful Einstein explained the relationship of mass and
assessment instruments that help leaders identify orga- energy with the formula E=mc2. We can borrow the
nizational strengths and key opportunities for improve- formula and adapt it to describe what top managers
ment. The primary task of leaders is then to use the must do to thrive in today’s economic and competi-
information to improve work processes and achieve tive climate. Energy becomes Excellence, Mass
higher levels of performance. becomes the ability to Manage organizational
Building an effective management system capa- change, and the speed of light becomes the acceler-
ble of driving performance improvement is an ongo- ated rate of Change, or Change squared. Therefore,
ing challenge because of the intricate web of complex Excellence equals Managing Change at an acceler-
relationships among management, labor, customers, ated rate or E=mc2. Not a scientific formula for
stakeholders, partners, and suppliers. The best orga- physics, but a practical formula for success.
nizations have put in place a management system that
improves its work processes continually. They mea- Excellence equals Managing
sure every key facet of business activity and closely Change at an accelerated rate:
monitor organizational performance. Leaders of
these organizations set high expectations, value E=mc2
workers and their input, communicate clear direc-
tions, and align the work of everyone to optimize per- Unfortunately, because of the complexity of
formance and achieve organizational goals. modern management systems, the criteria used
The Baldrige Criteria for Performance to examine them are also complex and sometimes
Excellence were first launched over 20 years ago, in difficult to understand. Insights to Performance
1987-1988. Since then, organizations of all types and Excellence 2009–2010 helps performance-excellence
sizes have learned that the disciplined approach to examiners and organization-improvement practition-
continuous improvement required by the Criteria has ers to understand the 2009–2010 Baldrige perfor-
helped them keep up with the competition and suc- mance excellence criteria and the linkages and
ceed. In the 1980s, continuous improvement was relationships among the Items.
rare. With even modest efforts, an organization com- Six types of information are provided in this
mitted to improvement could beat its competitors. book for each of the Items in Categories 1 through 6:
Today, however, with more and more organizations
striving to improve their key processes, program- 1. The actual language of each Item, including
matic improvement has become common. No longer Notes (presented in the shadow box). [Author’s
is routine improvement sufficient to create a compet- note: The information in these shadow boxes
itive advantage. The best competitors now know that presents the official Baldrige Criteria and serves
long-term sustainability and market superiority as the only basis for the examination.]
require that they get better at getting better. The best
2. A plain-English explanation of the requirements
organizations not only make improvements, but they
of each Item with some suggestions about the

xvi
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