Achieving Organizational Excellence: An Introduction to the Baldrige Framework

1. Achieving Organizational Excellence:An Introduction to the Baldrige Framework Performance Improvement NetworkJune 2, 2005

2. Today’s Discussion • Introduce Baldrige: a systemic management framework that can be used to improve performance in any organization • Provide evidence of the value of Baldrige • Summarize the Criteria for Performance Excellence • Outline a typical Baldrige assessment process • Introduce four organizations using Baldrige to manage, improve, and optimize their performance • Engage in Q&A with our panel

3. Mission Vision Mission Vision Alignment Baldrige Assessment Focusing Energy & Resources Courtesy of Paul Grizzell, Xcel Energy, MCQ Board of Directors and Panel of Judges

4. Objectives of Using Baldrige • Identifies strengths and improvement opportunities • Facilitates improvement, alignment, and integration • Assists in delivery of value to stakeholders • Facilitates organizational and personal learning • Monitors progress over time

5. First, the Evidence… Source: Kevin B. Hendricks and Vinod R. Singhal, “Don’t Count TQM Out,” Quality Progress, April 1999

6. …First, the Evidence… Source: Q100 Index, Kopp Financial Advisors

7. Drivers Core Work Results Strategic Planning HR Focus Leadership Results Process Management Customer & Market Focus Measurement, Analysis, and Knowledge Management The Baldrige Framework The foundation of the assessment is the Malcolm Baldrige National Quality Award, which outlines validated Criteria that have been shown to produce excellent organizational results. The Criteria are divided into seven Categories which form an organizational system.

8. Criteria for Performance Excellence 1.1 Senior Leadership (70 points) Describe how senior leaders guide and sustain your organization. Describe your senior leaders communicate with staff and encourage high performance. Within your response, include answers to the following questions: Process SAMPLE a. Vision and Values (1) (2) (3) How do senior leaders set organizational vision and values? How do senior leaders deploy your organization’s vision and values through your leadership system, to all staff, to key suppliers and partners, and to students/stakeholders/patients/customers, as appropriate? How to their personal actions reflect a commitment to the organization’s values? How do senior leaders promote an environment that fosters and requires legal and ethical behavior? How do senior leaders create a sustainable organization? How do senior leaders create an environment for performance improvement, accomplishment of strategic objectives, innovation, and organizational agility? How do they create an environment for organizational and staff learning? How do they personally participate in the succession planning and the development of future organizational leaders? How do senior leaders communicate with, empower, and motivate all staff throughout the organization? How do senior leaders encourage frank, two-way communication throughout the organization? How do senior leaders take an active role in staff reward and recognition to reinforce high performance and a focus on the organization, as well as on stakeholders? How do senior leaders create a focus on action to accomplish the organization’s objectives, improve performance, and attain your vision? How do senior leaders include a focus on creating and balancing value for patients/students/customers/stakeholders in their organizational performance expectations? b. Communication and Organizational Improvement (1) (2)

9. The Criteria are Flexible • Is based on a set of validated, leading edge practices • Is applicable to any organizational entity – • manufacturing, service, health care, schools, non-profits, public sector agencies • Is scaleable – • can be used for very small or very large, complex organizations (or parts of organizations) • Encourages communication and knowledge sharing – helps build a common language

10. Category 2 -- Strategic Planning 2.1 Strategy Development 6 Gemini develops strategic plans for improving its health services and business performance results through a three-phase Strategic Planning Process. The key players involved in the Strategic Planning Process span the entire organization and include representatives from the GBOD as well as front-line staff. Input is also gathered from other staff, suppliers, and strategic partners (University of Lakeland Hospital, Healing Hands) for inclusion in the environmental assessment. This approach provides Gemini with a representative cross-section of all facets of the organization and, when combined with input from customer survey results, mystery shopping or competitive shopping, and market-related analysis of competitors and trends, provides the LT with the initial framework for the strategic planning retreat. The Strategic Planning Process is an ongoing process with three distinct phases that are all illustrated in Figure 2.1-1. Evaluation and improvement of the Strategic Planning Process begin immediately upon completion of the annual plan. This Phase 1, the pre-planning phase, which begins in January with an evaluation of the previous year’s Strategic Planning Process and suggests/implements recommendations for improving the process. Up until this year, Gemini has only used the percent deviation between actual and budgeted expenses to monitor its progress toward achieving strategic goals. Typical results are within 5% to 10% of plan. A recommended improvement from last year was to include measures that will add value by increasing the accuracy and effectiveness of the planning Conduct Site Visit Review Independently Reach Consensus Prepare Assessing Performance with the Criteria Plan & Take Action

11. Introducing our Panelists • Sunny Fresh Foods • Ann Burns • Central Minnesota Jobs & Training Services • Angie Theisen • Dunwoody • Dick Poole • Minnesota Army National Guard • April Corniea