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    This book is a concise guide to understanding and using the BaldrigeCriteria to bring world-class status to an organization. It describes with

    academic rigor why it makes sense to undertake this journey and the

    organizational factors that guarantee success. I recommend it for senior

    leaders who want to know why implementing the Baldrige Award process

    is a sound financial investment.

    David Branch

    Chair, Board of Directors, Texas Award

    for Performance Excellence

    CEO, Branch-Smith Printing

    Recipient 2002 Malcolm Baldrige National Quality Award

    If youre looking for a no-nonsense, roll-up-your-sleeves-and-get-it-done

    guide to applying the Baldrige Criteria, this is the book. It cuts through the

    hype and helps you hit the ground running. The authors know the Criteria

    and they are veterans of applying it every day in their work. Understanding

    both the principles and the practice is what makes this book special.

    Tom Mosgaller

    Past Chair, ASQ Board of Directors

    This book, The Executive Guide to Understanding and Implementing the

    Baldrige Criteria, takes into account a breadth of research, confirming not

    only the conventional wisdom but also the most current thinking on the

    impact of performance excellence. Leonard and McGuire have focused on

    essential information of value to newcomers and experienced practitioners

    alike. This book will be a welcomed addition to any performance excellence

    library or training toolkit.

    Elizabeth Clark Menzer

    Executive Director

    Wisconsin Forward Award, Inc

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    This is one of the best books Ive seen on the Baldrige Award process. Itmakes a convincing case for Baldrige, and shows how to get positive results

    while avoiding pitfalls. It is exceptionally well documented. The case

    examples give numerous hints on the right way to proceed. Although it was

    written primarily for managers, I think it has real value as a supplementary

    text in college Quality Management courses.

    Roger Berger, PhD

    Professor Emeritus, Iowa State University

    Past Chair, Quality Management Division, ASQ

    This book stays away from typical quality jargon, which will help readersengage the Criteria effectively.

    Jerry Mairani, Chairman, ASQ

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    The Executive Guideto Understanding and

    Implementing theBaldrige Criteria

    Improve Revenue and CreateOrganizational Excellence

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    Also available from ASQ Quality Press:

    The Executive Guide to Understanding and Implementing Quality Cost Programs:

    Reduce Operating Expenses and Increase Revenue

    Douglas C. Wood

    The Executive Guide to Understanding Employee Engagement: Expand Capacity,

    Increase Revenue, and Save Jobs

    Pat Townsend and Joan Gebhardt

    The Executive Guide to Understanding and Implementing Lean Six Sigma:

    The Financial Impact

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

    Insights to Performance Excellence 2007: An Inside Look at the 2007 Baldrige

    Award Criteria

    Mark L. Blazey

    Transformation to Performance Excellence: Baldrige Education Leaders Speak Out

    Sandra Cokeley, Margaret A. Byrnes, Geri Markley, and Suzanne Keely, editors

    Business Performance through Lean Six Sigma: Linking the Knowledge Worker, the

    Twelve Pillars, and Baldrige

    James T. Schutta

    Homeland Security Assessment Manual: A Comprehensive Organizational

    Assessment Based on Baldrige Criteria

    Donald C. Fisher

    The Certified Manager of Quality/Organizational Excellence Handbook:

    Third Edition

    Russell T. Westcott, editor

    The Quality Improvement Handbook, Second Edition

    ASQ Quality Management Division and John E. Bauer, Grace L. Duffy,

    Russell T. Westcott, editors

    The Executive Guide to Improvement and ChangeG. Dennis Beecroft, Grace L. Duffy, John W. Moran

    Principles of Quality Costs: Principles, Implementation, and Use, Third Edition

    Jack Campanella, editor

    To request a complimentary catalog of ASQ Quality Press publications,

    call 800-248-1946 or visit our Web site at http://qualitypress.asq.org.

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    ASQ Quality Press

    Milwaukee, Wisconsin

    The Executive Guideto Understanding and

    Implementing theBaldrige Criteria

    Improve Revenue and CreateOrganizational Excellence

    The ASQ Quality Management DivisionEconomics of Quality Book Series

    Denis Leonard

    Mac McGuire

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    American Society for Quality, Quality Press, Milwaukee 53203

    2007 by ASQAll rights reserved. Published 2007Printed in the United States of America13 12 11 10 09 08 07 5 4 3 2 1

    Library of Congress Cataloging-in-Publication Data

    The executive guide to understanding and implementing the Baldrige criteria: improverevenue and create organizational excellence / Denis G. Leonard, Mac McGuire.

    p. cm.Includes bibliographical references and index.ISBN 978-0-87389-717-41. Total quality managementEvaluation. 2. Organizational effectivenessEvaluation.3. Industrial efficiencyEvaluation. 4. Industrial productivityEvaluation. 5. MalcolmBaldrige National Quality AwardCase studies. I. McGuire, Mac, 1969- II. Title. III.

    Title: Guide to understanding and implementing the Baldrige criteria.

    HD62.15.L46 2007658.4013--dc22

    2007011954No part of this book may be reproduced in any form or by any means, electronic,mechanical, photocopying, recording, or otherwise, without the prior written permissionof the publisher.

    Publisher: William A. TonyAcquisitions Editor: Matt T. MeinholzProject Editor: Paul OMaraProduction Administrator: Randall Benson

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

    Attention Bookstores, Wholesalers, Schools, and Corporations: ASQ Quality Pressbooks, videotapes, audiotapes, and software are available at quantity discounts withbulk purchases 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 PublicationsCatalog, including ASQ membership information, call 800-248-1946. Visit ourWeb site at www.asq.org or http://qualitypress.asq.org.

    Printed in the United States of America

    Printed on acid-free paper

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    Denis Leonard would like to dedicate this book to

    his wife Mary for her caring and support.

    Mac McGuire would like to dedicate this book tohis loving mother Mary Ann for her never-ending

    and life-long caring, guidance, and support.

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    ix

    Table of Contents

    Figures and Tables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii

    Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv

    Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii

    Acknowledgements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxi

    Chapter 1 Understanding Baldrige . . . . . . . . . . . . . . . . . . . . . . 1

    Background of the Malcolm Baldrige National Quality

    Award (MBNQA) Criteria for Performance

    Excellence (CPE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

    Origins of the Baldrige Criteria . . . . . . . . . . . . . . . . . . . . . . . . . 2

    Purpose of the Baldrige Criteria. . . . . . . . . . . . . . . . . . . . . . . . . 4

    The Baldrige Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

    Organizational Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

    Seven Categories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

    Effective Organizational Improvement Model. . . . . . . . . . . . . . 9

    Benefits, Considerations, and Disadvantages of

    Implementing the Baldrige Criteria: One

    Research Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Need for Strategy and Leadership . . . . . . . . . . . . . . . . . . . . . . . 13

    Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

    Summary Questions for Consideration . . . . . . . . . . . . . . . . . . . 14

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    Chapter 2 Financial Impact of the Baldrige Criteria . . . . . . . . 17The Baldrige Criteria: Key Issues in Context. . . . . . . . . . . . . . . 17

    Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

    Summary Questions for Consideration . . . . . . . . . . . . . . . . . . . 24

    Chapter 3 Other Impacts of the Baldrige Criteria . . . . . . . . . . 29

    Self-Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

    Organizational Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . 30

    Employee Relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

    Considerations Before Adoption/Implementation Efforts . . . . . 31

    Dealing with Change in Implementation . . . . . . . . . . . . . . . . . . 31

    Role of Senior Leaders in Implementation of

    Baldrige Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

    Leader Competency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

    Leadership Attitudes about the Baldrige Criteria. . . . . . . . . . . . 33

    Disadvantages of Adoption/Implementation . . . . . . . . . . . . . . . 34

    Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

    Summary Questions for Consideration . . . . . . . . . . . . . . . . . . . 36

    Chapter 4 Implementing the Baldrige Criteria . . . . . . . . . . . . . 41

    Implementation Considerations . . . . . . . . . . . . . . . . . . . . . . . . . 41

    Time and Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

    Senior Leader Commitment. . . . . . . . . . . . . . . . . . . . . . . . . . 42

    Defined Implementation Plan . . . . . . . . . . . . . . . . . . . . . . . . 43

    Importance of Training. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

    Phases in the Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

    Impact of Change in Baldrige Criteria Implementation. . . . . . . 46

    Kotters View of Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

    Senior Leaders and Change: Other Thoughts . . . . . . . . . . . . 52

    The Learning Organization . . . . . . . . . . . . . . . . . . . . . . . . . . 54

    Benefits of Being an Examiner. . . . . . . . . . . . . . . . . . . . . . . . . . 55

    Examiner Selection and Training Process. . . . . . . . . . . . . . . 56

    Learning Approaches. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

    Management Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

    Links to Knowledge Management and

    Organizational Learning . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

    Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

    Summary Questions for Consideration . . . . . . . . . . . . . . . . . . . 61

    x Table of Contents

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    Chapter 5 Site Visits and Feedback Reports . . . . . . . . . . . . . . . 67Gaining Maximum Value from National Baldrige

    or State Quality Award Feedback Reports

    and Site Visits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

    The Site Visit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

    Sustaining Momentum after the Site Visit . . . . . . . . . . . . . . 70

    Addressing the Feedback Report . . . . . . . . . . . . . . . . . . . . . . . . 71

    Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

    Summary Questions for Consideration . . . . . . . . . . . . . . . . . . . 72

    Chapter 6 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

    Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

    Sunny Fresh Foods, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

    DynMcDermott Petroleum Operations Company . . . . . . . . . . . 74

    Park Place Lexus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

    Richland College . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

    Jenks Public Schools. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

    Bronson Methodist Hospital . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

    Summary Questions for Consideration . . . . . . . . . . . . . . . . . . . 78

    Chapter 7 Final Thoughts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

    Appendix A 2007 Malcolm Baldrige Award Criteria

    for Performance Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

    Organizational Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83P.1 Organizational Description. . . . . . . . . . . . . . . . . . . . . . . 83

    P.2 Organizational Challenges. . . . . . . . . . . . . . . . . . . . . . . 84

    Category 1 Leadership (120 pts.) . . . . . . . . . . . . . . . . . . . . . 85

    1.1 Senior Leadership (70 pts.). . . . . . . . . . . . . . . . . . . . . . . 85

    1.2 Governance and Social Responsibilities (50 pts.) . . . . . 86

    Category 2 Strategic Planning (85 pts.). . . . . . . . . . . . . . . . 88

    2.1 Strategy Development (40 pts.) . . . . . . . . . . . . . . . . . . . 88

    2.2 Strategy Deployment (45 pts.) . . . . . . . . . . . . . . . . . . . . 89

    Category 3 Customer and Market Focus (85 pts.) . . . . . . . 90

    3.1 Customer and Market Knowledge (40 pts.) . . . . . . . . . . 90

    3.2 Customer Relationships and Satisfaction (45 pts.) . . . . . 91Category 4 Measurement, Analysis, and Knowledge

    Management (90 pts.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

    4.1 Measurement, Analysis, and Review of

    Organizational Performance (45 pts.). . . . . . . . . . . . . . . 93

    4.2 Management of Information, Information

    Technology, and Knowledge (45 pts.). . . . . . . . . . . . . . . 94

    Table of Contents xi

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    Category 5 Workforce Focus (85 pts.) . . . . . . . . . . . . . . . . . 955.1 Workforce Engagement Systems (45 pts.) . . . . . . . . . . . 95

    5.2 Workforce Environment (40 pts.) . . . . . . . . . . . . . . . . . . 98

    Category 6 Process Management (85 pts.) . . . . . . . . . . . . . 99

    6.1 Work Systems Design (35 pts.). . . . . . . . . . . . . . . . . . . . 99

    6.2 Work Process Management and Improvement

    (50 pts.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

    Category 7 Business Results. (450 points). . . . . . . . . . . . . . 101

    7.1 Product and Service Outcomes (100 pts.). . . . . . . . . . . . 101

    7.2 Customer-Focused Outcomes (70 pts.). . . . . . . . . . . . . . 101

    7.3 Financial and Market Outcomes (70 pts.) . . . . . . . . . . . 102

    7.4 Workforce-Focused Outcomes (70 pts.) . . . . . . . . . . . . . 1027.5 Process Effectiveness Outcomes (70 pts.) . . . . . . . . . . . 103

    7.6 Leadership Outcomes (70 pts.). . . . . . . . . . . . . . . . . . . . 103

    Appendix B Baldrige Criteria for Performance

    Excellence Outline. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

    Appendix C MBNQA Criteria for Performance

    Excellence Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

    Visionary Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

    Customer Driven Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

    Organizational and Personal Learning. . . . . . . . . . . . . . . . . . . . 109

    Valuing Employees and Partners . . . . . . . . . . . . . . . . . . . . . . . . 110

    Agility Rapid Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

    Focus on the Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

    Managing for Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

    Management by Fact. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

    Social Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

    Focus on Results and Creating Value . . . . . . . . . . . . . . . . . . . . . 113

    Systems Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

    Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

    About the Authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119

    xii Table of Contents

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    xiii

    Figures and Tables

    Chapter 1

    Figure 1.1 The Malcolm Baldrige National QualityAward Criteria for Performance Excellence(Baldrige Criteria) Model (Business Version) . . . . . . . . . . 6

    Table 1.1 Advantages and Disadvantages of Implementingthe MBNQA Criteria for Performance Excellence . . . . . . 12

    Chapter 4Figure 4.1 Kotters Eight-stage Process of Creating

    Major Change Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

    Figure 4.2 Lewins Three-Step Change Model . . . . . . . . . . . . . . . . . . 52

    Table 4.1 Linkage of the Kotter Change Process andCategories of the MBNQA Criteria for PerformanceExcellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

    Table 4.2 Learning Orientations for Examiners . . . . . . . . . . . . . . . . 58

    Table 4.3 Transferable Skills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

    Appendices

    Figure B.1 Baldrige Business Criteria for Performance

    Excellence Outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

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    xv

    Introduction

    If, as it is often said, we are what we eat, then it may follow that we are

    also what we read. If nothing else, books that broaden our knowledge

    are indeed food for the brain.

    That is the purpose of the Quality Management Divisions book series

    on the Economics of Qualityto stimulate thought about how different

    quality methods can be used to influence the financial position of an

    organization.

    A manager may want to know about a popular business topic; an

    engineer responsible for cost control may need a good business tool; a

    person new to the quality profession may want to understand more about

    the many different approaches that drive organizational success. We all

    seek answers to two simple questions. What is it? And how do I get started?

    This book series has those answers.The Economics of Quality series is written by subject matter experts

    from business, academia, consulting, and not-for-profit organizations. They

    represent the best minds on the subjects about which they write.

    The books in the series are not intended to be application guides. This

    is introductory material that points us in the right direction so we know

    what the capabilities are of a particular method. These books are intended

    to arm us with the right questions. If we decide to deploy a particular

    methodology, we know what to ask in order to move to the next step in the

    implementation process.

    The subject matter experts of the Quality Management Division are

    members of a variety of technical committees. They have specific and in-depth knowledge about methods such as Baldrige, ISO, Lean/Six Sigma,

    Quality Costs, Employee Involvement, Quality Management Information

    Systems, Globalization/Supply Chain, Data Driven Decision Making, and

    Quality in Project Management.

    In addition to sharing their expertise through books like this one, the

    committees contribute to business journals and speak at Quality and other

    business conferences.

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    xvi Introduction

    You can find out more about the Quality Management Division throughthe American Society for Quality website: www.asq.org. As a member, you

    will benefit from the professional contributions of our technical committee

    members and other subject matter experts. The Division publishes a peer

    reviewed journal, The Forum, that provides in-depth application guidance

    to improve all types of organizations. You will also have the opportunity

    to attend our annual conference dedicated to Quality and organizational

    improvement. Our goal is to help make all organizations, as well as society

    as a whole, a better place to work and live.

    William H. Denney, PhD

    Vice Chair, Technical Committees

    Quality Management DivisionAmerican Society for Quality

    2007

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    xvii

    Preface

    The Malcolm Baldrige National Quality Award Criteria for

    Performance Excellence, hereafter known in this book as simply

    the Baldrige Criteria, is fundamentally a system-based model. The

    systems-based approach highlights crucial issues such as:

    The importance of leadership

    The need to consider all elements of an organization

    The strategic importance of scanning and analyzing the business

    environment

    The value of creating focus on customers and employees

    The need to use measures, indicators and organizational knowledge

    to identify and monitor key performance indicators

    The methods for approach and deployment of improvement

    action plans

    The need for organizational alignment around a set of priorities

    This systems-based approach is what gives the Baldrige Criteria its

    coordinating and aligning nature. This is also the key to its wide appeal and

    adaptability. The Baldrige Criteria focuses on the basics, on the essentials for

    excellence. It has been implemented internationally and used, in many cases,

    as the basis for other national quality awards. While fads come and go, the

    fundamentals of quality remain. The Baldrige Criteria is not prescriptive; it

    does not specify what quality tool or technique should be used or in which

    circumstance. Rather, the Baldrige Criteria is the strategic coordinating

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    method to drive quality and integrate the various tools and techniquesrequired to achieve corporate goals. The model provides an effective way to

    conduct company-wide self-assessments that are cross functional in nature.

    The tools and techniques needed to improve inefficiencies uncovered

    by self-assessment or by feedback from an award application will be

    determined by how far along the quality journey an organization is and its

    current needs, experience, skill set, and culture. While this book focuses

    primarily on customers and business, our discussion could just as easily

    pertain to patients and health care or to students and education.

    This book is a guide to the Baldrige Criteria for executives or managers

    new to Quality, and to organizations interested in introductory information.

    National, regional, state, and local quality award organizations may benefitfrom this book by providing it as a resource to their examiners and to

    companies wanting to become involved in the Baldrige award process.

    Companies with internal quality award or self-assessment programs would

    also benefit from it, and it could be used as a guide for self-assessment

    and award application writing workshops and continuing education classes.

    Colleges and universities with business courses that focus on or discuss the

    Baldrige Criteria will also find it useful.

    Portions of this book are based on research conducted by a nationwide

    Delphi study group that was assembled for the purpose of evaluating the

    benefits, considerations, and disadvantages of implementing the Baldrige

    model. This research effort evaluated the steps involved in adoption and

    implementation of the Baldrige Criteria.

    Chapter 1 provides an introduction to understanding the Baldrige

    Criteria. We briefly discuss the origins of this instrument and its purposes,

    and then we address some of the major benefits, considerations, and

    disadvantages of the Criteria implementation. The book provides tips on

    how best to introduce Baldrige to senior, mid-level, and first-level leaders

    and how to best implement it. We also discuss its value as a strategic tool

    for business planning and internal communications and how it can be used

    to coordinate a wide range of operational improvement initiatives.

    In Chapter 2 we discuss in some detail the financial impact of

    implementing the Baldrige Criteria and we feature a number of researchers

    who provide interesting and compelling data in support of the Criteria.

    These financial considerations are important to senior leaders who will

    ultimately make the decision to adopt and implement.

    In Chapter 3 we highlight the non-financial impact of implementing

    the Criteria, the importance of an initial self-assessment, and the challenges

    of dealing with change brought about by the implementation. Implementing

    the Criteria will cause an organization to evaluate the priorities of both

    daily work and the long-term strategy. We introduce the concept of self-

    xviii Preface

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    assessment, which allows senior leaders to answer targeted questions that willhelp them determine the efficacy of the Criteria for their organizations.

    In Chapter 4 we move to the actual implementation of the Baldrige

    Criteria and discuss major issues such as time and resources, senior leader

    commitment, how to define an implementation plan, and the importance

    of training. We also highlight the benefits that result when members of

    the organization become examiners, learn how to use the Baldrige Criteria

    framework efficiently, and actively participate in state and national

    Baldrige-based programs.

    In Chapter 5 we discuss the primary benefit of implementing the

    Baldrige Criteria, the site visit and the resulting feedback report. The

    site visit allows professional examiners to review your plans and proposeimprovements based on Criteria questions. The feedback report will give

    the senior leaders a roadmap to overcoming organizational deficiencies.

    Chapter 6 could have been a very lengthy chapter, but here we highlight

    only the 2005 national Baldrige Award-winning organizations and some of

    their financial and other improvements. We also provide points of contact

    that readers may use to secure additional information.

    Chapter 7 concludes the book with our final thoughts and a look at the

    research that was the foundation for this book.

    So as to make this book a complete guide to the Baldrige Criteria,

    we provide the criteria, outline, and values in Appendices for the readers

    convenience. And because of book of this type can only scratch the surface

    of a number of topics, we have also included an extensive list of studies that

    enable further reading in any research areas of interest.

    Preface xix

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    Acknowledgements

    We would like to thank those who helped make this book possible,

    especially Bill Denney, PhD, for his support and drive and for

    originally introducing the two authors to each other. We would

    also like to thank Chris Luter, Gary Zajicek, Art Trepanier, and Donald

    McLachlan for their review of the manuscript and their thoughts and ideas

    and Will Murphy, PhD, for his valuable comments.

    xxi

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    1

    1Understanding Baldrige

    Management has to give direction to the institution

    it manages. It has to think through the institutions

    mission, has to set its objectives and has to organize

    resources for the results the institution has to contribute.

    Peter F. Drucker, Management: Tasks,

    Responsibilities, Practices,19731

    BACKGROUND OF THE MALCOLMBALDRIGE NATIONAL QUALITY

    AWARD (MBNQA) CRITERIA FORPERFORMANCE EXCELLENCE (CPE)

    In the late 1980s, the Reagan administration began the task of identifying

    how American companies could become more effective in the new global

    economy.

    2

    During this time, Japanese companies were surpassing Americancorporations in the areas of innovation, production, and quality, especially

    in the automobile industry. This trend continues today, with Toyota rapidly

    becoming the largest auto maker in the world.

    President Reagan tasked Secretary of Commerce Malcolm Baldrige

    (1981-1987) with developing a set of criteria that would lead American

    businesses into the twenty-first century. The administration searched for a

    name for the Award without success until the tragic death of Baldrige in a

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    2 Chapter One

    rodeo accident in 1987. Public Law 100-107, signed into law on August 20,1987, created the Malcolm Baldrige National Quality Award and received

    principal support from the Foundation for the Malcolm Baldrige National

    Quality Award. The Foundation receives funding from Congress through

    the Secretary of Commerce.

    The Baldrige program, officially begun in 1988, was originally designed

    to promote Total Quality Management (TQM) as the best approach for

    improving and restoring competitiveness to American corporations. It has

    since evolved and expanded to cover such area as leadership and human

    resources.3 TQM defines an organizational culture dedicated to training,

    continuous improvement, and customer satisfaction.4 TQM is entrenched in

    many organizations today as part of the legacy of Dr. W. Edwards Deming,who articulated four principles to guide organizational work.5 The four

    principles are: do it right the first time; listen to and learn from customers

    and employees; make continuous improvement an everyday matter; and

    build teamwork, trust, and mutual respect.5,6

    While the perceived value of TQM as a business model has diminished

    in some areas, the Baldrige Criteria, originally designed for business,

    has evolved to address education (K-16), health care organizations, and

    service companies. The Baldrige Criteria continues to evolve and produce

    specialized standards for a larger cross-section of organizations. Since last

    year it has included a focus on nonprofit and government organizations.

    While the Baldrige Criteria initially appears to have some merit

    and provides significant benefit for organizations, executives are not

    in agreement about its value. One study, conducted by Louis Harris &

    Associates, found that some CEOs believe the Baldrige Criteria to be very

    valuable (67%) while others find it extremely valuable (79%) for stimulating

    improvements in quality and competitiveness in corporate America.7 This

    book is intended to serve as a guide for CEOs who may be unsure about

    the validity of adoption and implementation of the Baldrige Criteria. As of

    2003, more than 50 countries have adopted the Baldrige Criteria as a basis

    for their own quality awards in an effort to improve their competitiveness

    in global markets.8 This imitation suggests that the Baldrige Criteria has

    applications for all types of organizations in many parts of the world.

    ORIGINS OF THE BALDRIGE CRITERIA

    The Baldrige Criteria is based on Public Law 100-107, which created a

    public-private partnership designed to improve quality and maximize

    productivity growth by setting standards of excellence that enable American

    companies to combat global competition.3 Public Law 100-1079 Finding

    and Purposes states:

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    Understanding Baldrige 3

    1. The leadership of the United States in product and process qualityhas been challenged strongly (and sometimes successfully) by

    foreign competition, and our nations productivity growth was less

    than our competitors over the last two decades.

    2. American business and industry are beginning to understand that

    poor quality costs companies as much as 20% of sales revenues

    annually, and that improved quality of goods and services goes

    hand in hand with improved productivity, lower costs, and

    increased profitability.

    3. Strategic planning for quality and quality improvement programs,

    through a commitment to excellence in manufacturing and services,is becoming more and more essential to the well-being of our

    nations economy and our ability to compete effectively in the

    global marketplace.

    4. Improved management understanding of the factory floor, worker

    involvement in quality, and greater emphasis on statistical process

    control can lead to dramatic improvements in the cost and quality

    of manufactured products.

    5. The concept of quality improvement is directly applicable to

    small companies as well as large, to service industries as well as

    manufacturing, and to the public sector as well as private enterprise.

    6. In order to be successful, quality improvement programs must be

    management led and customer oriented, and this may require a

    fundamental change in the way companies do business.

    7. Several major industrial nations have successfully coupled

    rigorous private-sector quality audits with national awards, giving

    special recognition to those enterprises the audits identify as the

    very best.

    8. A national quality award program of this kind in the United

    States would stimulate American companies to improve quality

    and productivity, allowing them to take pride in the recognitionwhile at the same time permitting them a competitive edge and

    increased profits. It would recognize the achievements of those

    companies and make them an example to others. Business,

    industrial, governmental, and other organizations would profit

    from the tested and proven guidelines, learning how to manage

    for quality, change their cultures, and achieve eminence.10

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    4 Chapter One

    The United States Department of Commerce is responsible for the BaldrigeNational Quality Program and the Award process. The National Institute

    of Standards and Technology (NIST), an agency of the Department of

    Technology Administration, manages the Baldrige program. The American

    Society for Quality (ASQ) assists in administering the Award Program under

    contract to NIST. ASQ is dedicated to ongoing development, advancement,

    and promotion of quality concepts, principles, and techniques.

    Eighteen years after initial publication, the Baldrige Criteria remains

    a powerful set of guidelines for the determination and execution of

    organizational priorities. Thousands of United States organizations utilize

    the Criteria to improve their competitive posture, either externally through

    award processes or internally through trained employees.11

    At its core,the Baldrige Criteria is an educational initiative designed to encourage

    organizations to strive toward performance excellence. The purpose of the

    Baldrige Award process is to highlight and recognize those organizations

    that are successful in effective management techniques.12 The program is a

    comprehensive, rigorous method for examining performance improvement

    in organizations. The Baldrige Criteria, based on what are arguably the best

    questions to ask about performance, may be an outstanding model to use to

    anchor improvement in your organization.

    In summary, the intent of the Baldrige Criteria is to improve value to

    customers and overall financial performance for shareholders, owners, and

    other stakeholders. The intent is to create a distinct advantage for United

    States organizations in a time of increasing global competitiveness.

    PURPOSES OF THE BALDRIGE CRITERIA

    The Baldrige Criteria promotes three primary objectives:3

    The first objective is to assist an organization to improve its

    performance practices, capabilities, and results. When addressing

    the specific questions, an organization may determine where it is

    falling short in its attempts to improve the bottom line.

    The second goal is to facilitate communication and the sharing of

    best practice information among all United States corporations.

    This sharing, often referred to as benchmarking, identifies

    and shares the best practices of many types of organizations,

    potentially enhancing and improving the productivity of all.

    Identifying those organizations at the top of their game and

    motivating them to share the knowledge and wisdom that helped

    them reach that plateau is a crucial part of the process. For

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    Understanding Baldrige 5

    example, a small business that has developed software to trackcustomer service may be able to help your organization in a

    similar endeavor.

    The third objective is to provide a working tool for understanding

    and managing performance, guiding planning, and creating

    opportunities for organizational learning.13 Strategic planning is

    important to Baldrige applicants, and each must address short- and

    longer-term goals.

    According to Brown,3 the Baldrige Criteria program offers a powerful set

    of guidelines for operating an effective organization, and he emphasizes

    the need to proactively adopt the guidelines if the organizations goal isperformance improvement. The Baldrige Criteria questions deal with what

    the organization does to improve efficiencies, how it plans to excel against

    competition, and how the organization plans for the future. These questions

    identify how an organization addresses critical issues and where gaps of

    performance occur.

    The Baldrige Criteria includes an Organizational Profile and seven

    integrated Categories, as described in Appendix A. These are the questions

    Baldrige regards as significant to performance improvement. Appendix B

    includes an outline for the Baldrige Criteria. The core values of the criteria

    are reflected in Appendix C.

    The first step for organizations implementing the Baldrige Criteria is to

    complete an organizational profile. This may be used as either a simple self-

    assessment or as the beginning of a more complicated fifty-page document

    that leads into the award process. The organizational profile questions

    address the business environment and the organizations relationship

    with customers, suppliers, and other partners. Within this component, an

    organization is also asked to describe its competitive environment and the

    key strategic challenges it faces.

    Each organization must carefully consider the decision to adopt and

    implement the Baldrige Criteria because this action requires commitment,

    patience, and perseverance. This warning is not meant to scare CEOs away,

    but merely to highlight the commitment required. The organizational

    profile is the foundation for an assessment document that will assist an

    organization in evaluating its current performance. An organization that

    has difficulty completing the organizational profile may be not prepared

    to begin full implementation of the Criteria or the rigorous journey of an

    award process.

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    6 Chapter One

    THE BALDRIGE MODELThis unique Baldrige Criteria improvement model, Figure 1.1, includes an

    organizational profile comprising approximately 200 questions, in seven

    integrated categories, that the organization must address in narrative form.

    This application, at the national level and at most state-award levels, must

    not exceed fifty pages. Some local and state programs have ten-, twenty-, or

    thirty-page applications that permit organizations to wade into Baldrige

    rather than dive in at the fifty-page level. The shorter applications include

    reduced or downsized questions and do not fully address all categories.

    A full Business Criteria example appears in Appendix A.

    The organizational profile generates aReaders Digestversion of howthe organization operates on a daily basis and addresses competitors and

    future planning. Categories 1, 2, and 3 (Leadership, Strategic Planning, and

    Customer Market and Focus) are known as the Leadership Triad. Categories

    5, 6, and 7 (Workforce Focus, Process Management, and Results) are known

    as the Results Triad. Category 4 (Measurement, Analysis, and Knowledge

    Management) underpins all of the other categories. It should be noted here

    that the Education Criteria and the Health Care Criteria have some variation

    in their categories.

    Figure 1.1 The 2007 Malcolm Baldrige National Quality Award Criteria forPerformance Excellence Model (Baldrige Criteria, Business version).

    OrganizationalProfile:Environment,

    Relationships,andChallenges

    1Leadership

    7Results

    2StrategicPlanning

    5Workforce

    Focus

    3

    Customer andMarket Focus

    4 Measurement, Analysis, and Knowledge Management

    6

    ProcessMangement

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    Understanding Baldrige 7

    Organizational Profile

    The organizational profile outlines an organizations most critical elements

    and helps determine, based on world-class criteria, how close it is to being

    great. The profile has two major topics: an organizational description and

    the organizational challenges.

    The organizational description addresses two main issues, the organi-

    zational environment and organizational relationships. The organizational

    challenges section includes looks at the competitive environment, strategic

    challenges, and the performance improvement system. The organizational

    profile addresses the current status. An organization that cannot satisfactorily

    address the questions found in the profile may need to spend more time in

    reflection and discussion in order to align the issues of exactly why the

    organization exists and what it is trying to accomplish.

    Seven Categories

    After completing the profile, an organization responds to questions in seven

    categories regarding what it does to accomplish business requirements and

    how.3,12,14 All but Category 7 have two sub topics. A full set of Baldrige

    Business questions is provided in Appendix A. An executive overview of

    the questions follows.

    Category 1, Leadership

    Category Item 1.1, Senior Leadership: Asks questions about

    organizational leadership and how senior leaders establish a

    vision, set values, and improve communication and organization

    performance.

    Category Item 1.2, Governance and Social Responsibility:

    Addresses questions about the structure of organizational

    governance and legal and ethical behavior and about how senior

    leaders support their key communities.

    Category 2, Strategic Planning

    Category Item 2.1, Strategy Development: Addresses the

    organizational strategic development process and how the

    organization defines key strategic objectives.

    Category Item 2.2, Strategy Deployment: Deals with questions

    about deployment of the strategic plan and about how the

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    8 Chapter One

    organization develops and deploys action plans and establishes andmonitors short- and longer-term performance projections.

    Category 3, Customer and Market Focus

    Category Item 3.1, Customer and Market Knowledge: Asks

    about how the organization identifies customers, customer groups,

    and market segments and how it acquires market knowledge.

    Category Item 3.2, Customer Relationships and Satisfaction:

    Addresses customer relationships and satisfaction by inquiring

    about building customer relationships and the specific ways in

    which the organization determines customer satisfaction.

    Category 4, Measurement, Analysis, and KnowledgeManagement

    Category Item 4.1, Measurement, Analysis, and Improvement

    of Organizational Performance: Examines how the organization

    selects, gathers, analyzes, manages, and improves data,

    information, and knowledge assets in order to directly improve

    organizational performance. This category item also looks at

    how performance is measured and how performance analysis is

    reviewed and improved.

    Category Item 4.2, Management of Information, Information

    Technology, and Knowledge: Inquires about how management

    of information resources occurs, and about how data, information,

    and knowledge management are addressed.

    Category 5, Workforce Focus

    Category Item 5.1, Workforce Engagement: Discusses

    workforce engagement and how the organization accomplishes and

    ensures it, how workforce enrichment is realized, how workforce

    and leader development are achieved, and how the organization

    assesses workforce engagement.

    Category Item 5.2, Workforce Environment: Addresses the

    workforce environment, workforce capability and capacity, and

    workforce climate assessments.

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    Understanding Baldrige 9

    Category 6, Process Management

    Category Item 6.1, Work Systems Design: Questions work

    system designs, core competencies, work process design, and

    emergency readiness.

    Category Item 6.2, Work Process Management and

    Improvement: Addresses work process management and

    improvement.

    Category 7, Results

    Category Item 7.1 Product and Service Outcomes

    Category Item 7.2 Customer-Focused Outcomes

    Category Item 7.3 Financial and Market Outcomes

    Category Item 7.4 Workforce-Focused Outcomes

    Category Item 7.5 Process-Effectiveness Outcomes

    Category Item 7.6 Leadership Outcomes

    Winning the award carries significant prestige, not only in the United

    States but also around the world.12,14 At the national level, the award process

    includes an annual deadline for submission of a fifty-page application. After

    an organization completes the application, a group of examiners carefully

    evaluates and scores it. If the application scores high enough, the examiners

    conduct a site visit to the organizations location. The examiners then

    reevaluate the application and a panel of judges reviews it and may or may

    not refer an award application to the Baldrige Criteria Board of Directors.

    The highest ranked applications, based on these positive recommendations,

    earn the Baldrige Award designation as best in the seven sectors evaluated:

    manufacturing, service, small business, large business, education,

    not-for-profit, and health care.

    EFFECTIVE ORGANIZATIONALIMPROVEMENT MODEL

    According to research accomplished by DeBaylo,15 the Baldrige Criteria

    is an effective model because it hones in on assessment and improvements

    that drive business results. It encourages concepts and values, suggests

    assessments that are linked to business strategies, requires involvement

    of senior management, advocates accelerated learning, and continually

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    10 Chapter One

    evolves by improving the criteria. The Baldrige Criteria is revised annuallybased upon the latest research of performance improvements.

    BENEFITS, CONSIDERATIONS, AND

    DISADVANTAGES OF IMPLEMENTING

    THE BALDRIGE CRITERIA: ONE

    RESEARCH PERSPECTIVE

    One research effort spanning seventeen states collected data regarding the

    benefits, considerations, and disadvantages of adopting and implementing

    the Baldrige Criteria.16 Participants in this research were all examiners who

    had worked as volunteers in local, state, or national Baldrige-based programs

    for a minimum of three years. Some examiners worked at organizations that

    had applied for an award at various levels, and all examiners were highly

    experienced in applying the Baldrige Criteria. The researcher convened a

    nationwide Delphi study group for the expressed purpose of evaluating the

    benefits, considerations, and disadvantages.

    Primary Baldrige Criteria benefits:

    It is an organizational tool promoting systematic alignment and

    direction through an integrated performance management system.

    It provides a world-class framework and a proven model for

    organizational success including financial analysis.

    It enables and fosters improved employee and customer

    satisfaction.

    Overall, the research revealed the importance of what the Baldrige Criteria

    framework brings to an organization. The framework facilitates alignment,

    provides a systematic and linear approach to addressing business issues,

    and leads to financial success. Additionally, levels of workforce and

    customer dissatisfaction appear to be lower when an organization adopts

    and implements the Baldrige Criteria.

    Significant considerations:

    Significant time and resources are required.

    Senior leader must be committed to stay the course and agree to

    long-term requirements.

    A leader must identify a strategy for the implementation.

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    Understanding Baldrige 11

    A central and recurring theme developed around the issue of time andresources required to implement the Baldrige Criteria in its entirety. Many

    participants admitted that these are an issue, but all supported taking

    whatever steps necessary to accomplish the implementation because it

    would eventually save time and effort. It appears that this systematic

    approach improves organizational effectiveness over the long term.

    Senior leaders and subordinates must buy in to the criteria early

    in the transition to enable the organizational culture to adapt to the

    systematic approach. According to the responses, full implementation of

    the criteria may take five to seven years. It has been our experience that a

    lack of patience and commitment hinder implementation. Another major

    consideration is the need for senior leaders to develop a proactive, detailedstrategy for implementation and refuse to rush the organization headlong

    into this process.

    Major disadvantages:

    Significant time and resources are required to begin the process of

    adopting and implementing the Criteria.

    The Criteria are complex.

    Senior leaders may have misgivings about a long-term

    commitment to systems thinking.

    The participants identified time and resources as is a definite considerationfor prospective senior leaders. Another disadvantage may be the complexity

    of the Criteria. Most participants addressed the need for organizations to

    enroll leaders, the point of contact, and the writing team into local, state, or

    national examiner training programs. The need for leadership was another

    recurring theme throughout this research. The failure of some senior leaders

    to fully comprehend the long-term requirements to may cause failure in this

    process. The Baldrige Criteria is not a program of the month!

    The advantages and disadvantages of adoption and implementation

    outlined in Table 1.1 are taken from a number of research efforts and

    reduced to this simplified form. Senior leaders can use this as a quick

    reference guide.As this comparison emphasizes, the implementation of the Criteria

    is a journey and not a destination. Aggressively pursuing and achieving

    the Baldrige Award will require senior leaders and quality coordinators

    to maintain a deep commitment to the implementation of the Criteria.

    A strategy for implementation is needed and leaders will play an obvious

    critical role.

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    12 Chapter One

    Table 1.1 Advantages and disadvantages of implementing theBaldrige Criteria.

    Advantages Disadvantages

    System-wide approach requiresa prioritization of work; leadersmust be committed; employees areempowered and trained.

    Advocates that leaders becomeheavily involved in long-termstrategic planning with milestones

    and action plans.

    Advocates that leaders analyze worksystems and review organizationalpriorities regularly.

    Advocates measurement of criticalgoals, comparison with competitors,and the proactive monitoring of theoverall vision.

    Indicates financial success isprobable with commitment tototal implementation and linking

    resources to goals.

    Suggests employees at all levelsmust become involved throughintentional training events andactive participation.

    Accomplishes long-term gainsbut may not be fully effective inthe short term.

    Requires time, energy, and resourcesand promises dividends.

    May lead to improved businessprocesses and secondarily toperformance excellence.

    Emphasizes that implementationis a journey, not a destination; thisis a long-term exercise.

    Requires review and evaluation acrossorganizational structure/system thatwill take precious leader time andresources.

    Requires intensive senior leaderinvolvement, long-term view, andcommitment.

    Requires leadership to be competentin the Baldrige model and understandorganizational work and priorities.

    Requires intensive commitment toreview and evaluate measurementsand goals on a regular basis.

    May not guarantee financialsuccess, some mixed financialresults regarding a lack of

    commitment of senior leaders.

    Requires a senior leader commitmentto develop employees and havechange agents receive intensive anddedicated training.

    Requires a long-term view and deniesshort cuts to implementation.

    Requires precious time, energy, andresources for full implementation.

    Emphasizes that winning doesnot guarantee long-term success,as sustainment and furtherimprovements are always necessary

    Requires continual commitmentto excellence and continualimprovement.

    2005 McGuire, 2005

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    Understanding Baldrige 13

    NEED FOR STRATEGY AND LEADERSHIPLeadership begins with a vision that stimulates hope and a mission that

    transforms hope into reality.17 Leaders must create the vision, determine the

    mission, and define the cultural values on which the strategy is established.

    The Baldrige Criteria has questions that will identify the vision, mission,

    and values. It is critical that the vision support not simply what is good for

    the company but also what is good for its employees, local communities,

    stakeholders, suppliers, partners, collaborators, customers, and society

    as a whole. Focused on these segments, ethical leaders must have a long-

    term focus, be people oriented, and inspire pride among their employees.

    In contrast, ethically neutral CEOs have a short-term outlook, are self-centered, and often inspire fear and confusion.18

    A short-term focus reflects what Deming called one of the deadly

    diseases, namely an emphasis on short-term profits resulting from most

    executives think[ing] they are in business to make money rather than products

    and service.5 Leaders must describe the values needed to make the mission

    a reality and set a standard of behavior while embedding this behavior into

    corporate culture. This mission should not be about a code of conduct, rules,

    systems, and procedures. It should have a higher calling and be about a sense

    of purpose and a set of values that guide everyday actions.19

    This is reflected in Jim Collins substantial research in which he points

    out, Enduring great companies dont exist merely to deliver returns to

    shareholders. In a truly great company, profits and cash flow become like

    blood and water to a healthy body: They are absolutely essential for life, but

    they are not the very point of life.20

    CONCLUSIONS

    Selection of the Baldrige Criteria program must be predicated on the

    understanding that senior leaders are responsible to stay the course and set

    the example. Training, patience, and perseverance are essential. Deciding

    whether to adopt and implement the Criteria is never an easy or quick

    process. The advantages and disadvantages should be weighed carefully, as

    the ultimate decision to proceed will carry a large degree of responsibility

    and accountability. Quality management has a strong ethical focus while

    significantly contributing to the achievement of organizational goals.

    There are heightened expectations of business behaviorin terms of how

    a business runs its core activities and how it contributes to tackling wider

    societal problems, says David Grayson.21 With the Baldrige Criteria as a

    backdrop, leadership at all levels becomes transparent. This transparency

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    14 Chapter One

    forces and reinforces ethical considerations as employees begin to askquestions and everyones accountability increases. The senior leaders

    who start the Baldrige journey are not only committing to improve the

    performance of the organization, but also committing to raise their own

    ethical standards and behavior.

    SUMMARY QUESTIONSFOR CONSIDERATION

    As a leader, are you fully committed to the Baldrige journey?

    Leaders must decide early in this process if the organization

    desires to achieve targeted success as described by previous

    Baldrige Award-winning organizations. We recommend that

    leaders make a list of key reasons they want to focus on Baldrige,

    so they can fully articulate that information to the management

    team. All team members must understand why the journey is

    important and the steps required along the way.

    Leaders must determine who will be the champions that assist in

    the promotion of this effort. Long-term sustainability for Baldrige

    implementation requires that everyone understand the length and

    depth of the commitment to fully implement.

    Leaders must ensure that the fundamental concepts of quality

    management are understood by the team and that Baldrige is a

    major ingredient, not a stand-alone issue or just another program.

    Baldrige requires the organization of daily work and priorities.

    Leaders must recognize the potential for leadership in different

    ways and contexts. First-level employees may have substantial

    impact on the success of Baldrige implementation. Leaders must

    consider who can assist with implementation. Senior leaders,

    first-level leaders, colleagues, peers, and all employees must

    be involved. Leaders must be able to describe the Baldrige

    process and discuss its potential benefits, considerations, and

    disadvantages while understanding implementation even on a

    department or team level.

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    Understanding Baldrige 15

    What resources will be needed to begin and sustain the Baldrige journey?

    As you chart out the journey, consider the resources required.

    Evaluate organizational talent and barriers to implementation.

    Remember the very important fact that ending the journey half

    way will have a huge negative impact on the organization and on

    the team you lead.

    Ensure that your expectations are realistic and clearly defined.

    This will allow the resources to be more accurately determined

    and allocated over time.

    What is your organizational strategy and how can Baldrige help to

    achieve it?

    Your organizational strategy is not based solely on implementing

    the Baldrige self-assessment or writing an award application.

    Rather, Baldrige can help you and your organization to achieve

    your goals in a systematic and holistic manner. Integrating

    Baldrige into your strategic process and allowing it to evaluate

    and determine where your strengths and weaknesses lie are

    critical elements in implementation.

    ENDNOTES1. Drucker, P. F. (1973).Management. NY: Harper Business.

    2. Baldrige National Quality Program. (2005). History of the Malcolm Baldrige

    National Quality Award (Electronic version).National Institute of Standards

    and Technology (NIST). Retrieved April 21, 2005, from http://baldrige.nist.

    gov/History.htm.

    3. Brown, M. G. (2004).Baldrige Award winning quality: How to interpret

    the Malcolm Baldrige Award Criteria (14th ed.). Milwaukee, WI: American

    Society for Quality (ASQ) ix-xviii.

    4. Kreitner, R. & Kinicki, A. (2004). Organizational behavior(6th ed.). Boston,

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