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The Colorado Performance Excellence (CPEx) Award Program

The Colorado Performance Excellence (CPEx) Award Program. Creating a Culture of Excellence Pervasive Throughout Colorado. In today’s highly competitive global environment …. Is it possible to …. Increase market share in a tight market?. YES!.

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The Colorado Performance Excellence (CPEx) Award Program

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  1. The Colorado Performance Excellence (CPEx) Award Program Creating a Culture of Excellence Pervasive Throughout Colorado

  2. In today’s highly competitive global environment … Is it possible to …

  3. Increase market share in a tight market?

  4. YES! In the stagnant food manufacturing industry, The Bama Companies, Inc. • Increased sales 72% from 1999 to 2004 • Increased total revenue from $123 million to $211 million

  5. YES! Since 2000, MESA Products, Inc. • Increased sales 93%, growing total revenues from $14M to $27M in 2006 • Improved return on equity from –5% in 1999 to > 25% in 2005, exceeding industry competitors by 20%

  6. Yes! PRO-TEC Coating Company • Has been continuously profitable for 12 years in an industry that has been undergoing widespread bankruptcies and consolidations. • Has doubled profits over the past five years!

  7. YES! RWJ Hamilton Hospital’s occupancy rate grew from 70% to 90% • More than 25 percentage points higher than its nearest competitor!

  8. Have totally satisfied customers?

  9. YES! The Bama Companies, Inc. has increased customer satisfaction • from 75% in 2001 • to 100% in 2004

  10. YES! From 2001 to 2005 Sunny Fresh Foods maintained nearly 100% customer satisfaction

  11. YES! Park Place Lexus’ Customer Satisfaction Index for new cars is nearly 100% for both its locations

  12. In today’s highly competitive global environment … Is it possible to …

  13. Have highly satisfied employees?

  14. YES! In 2005 employee satisfaction at DynMcDermott Petroleum Operations was 83% vs. the industry benchmark of 43%

  15. YES! For 3 years in a row (2004, 2005 & 2006) Bronson Methodist Hospital Has been named one of Fortune Magazine’s “100 Best Companies to Work For”

  16. YES! In 2005 At Jenks Public Schools has increased to 4.62 staff enthusiasm for work

  17. Why Are These Organizations Outperforming? • They view their organizations as an integrated holistic system • They recognize that high-performance comes from all the parts of the system working effectively together • They use the Criteria for Performance Excellence as a framework to assess and improve their system

  18. What is Performance Excellence? An integrated performancemanagement approach based on continuous improvement that leads to outstanding organizational results

  19. WHY IS IT IMPORTANT? • Global Environment • Competitive Advantage • Demonstrated Results • Why Not???

  20. Where is your organization on the Performance Excellence Continuum? Ad Hoc Management Approach High Performance Management System • Do your leaders set clear a direction that is aligned with the vision, mission, and values and is cascaded throughout the organization with measurable goals? • Does your organization factually understand customers—their needs, expectations, and preferences? • Do people in your organization have the information they need to make good decisions?

  21. Continuous Improvement, It’s All Relative! • Excellence Model is based on “continuous improvement” • Even the best try to continuously improve • Departure point is irrelevant • Low to high • High to World Class • Staying in place is not an option

  22. The Excellence ModelWhat is it & Where did it come from? • Malcolm Baldrige National Quality Award • Enactment of Congress 1987 • Setting the new standard of “Excellence” • Expansive use for award programs and road-mapping for improvement

  23. Demonstrated, Sound Management Framework Baldrige-Based Model – a Systems Perspective ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS, AND CHALLENGES 5 HumanResourceFocus 2 StrategicPlanning 1 Leadership 7 OrganizationalResults 6 ProcessManagement 3 Customer &Market Focus 4 Measurement, Analysis, and Knowledge Management

  24. Endorsed by Presidents

  25. President Ronald Reagan – “The Malcolm Baldrige National Quality Award offers companies a standard with which to compare their own progress to that of the country’s very best.” President Bill Clinton – “Every year I feel more strongly that this is the way America ought to work. This is the way all of our organizations ought to work.” President George W. Bush – “These organizations have been selected as exemplifying the qualities of excellence and ethics. They are being recognized for their continual improvement, their commitment to employees and community, and their enterprising spirit.”

  26. HENDRICKS AND SINGHAL STUDY Percentage Change Performance Measures

  27. A flexible systems approach Non-prescriptive - not an “aspirin for all ailments” Validated management practices A set of “How do you” questions What is your approach How is it deployed How is it continuously improved The Excellence Model, A Few Big Picture Thoughts

  28. CPEx Award Program Creating a Culture of Excellence Pervasive Throughout Colorado

  29. About the CPEx Program • State-wide • Enhances and recognizes organizational performance excellence • Creates communities of performance excellence practice • Private, non-profit 501(c)(3) corporation • Based on the Baldrige National Quality Program Criteria for Performance Excellence

  30. Vision – The CPEx community creates a culture of excellence that is pervasive throughout Colorado. Mission – We serve the people of Colorado by cultivating performance excellence that generates outstanding results. We fulfill this promise through: training and education, assessment and feedback, recognition and awards, networking, and the sharing of best practices. Who we are

  31. What we do • Recognize Colorado organizations that have a role model organizational management system • Raise awareness about the importance of quality and performance excellence as a competitive edge

  32. Visionary Leadership Customer Driven Organizational and Personal Learning Valuing Employees and Partners Agility Focus on the Future Managing for Innovation Management by Fact Public Responsibility and Citizenship Focus on Results and Creating Value Systems Perspective Core Values of Your State Program

  33. CPEx Assessment and Award Program • Open to all organizations • Annual Awards Cycle: • Training: Anytime!! • Letter of Intent: March • Written Application to CPEx/Baldrige: May • Application Review & Consensus: May-July • Site Visit July: Sept • Feedback Report: Oct • Quest for Excellence Conference/Award Ceremony: Oct - Nov

  34. CPEx Award Levels • High Plains (Organizational Profile) • Organizations in the initial stage of self-assessment • A snapshot of the organization that includes key influences and challenges • Foothills (Approach) • How the Category and Item requirements are addressed, i.e. the methods used • Timberline (Deployment) • The extent to which the approach is applied • Peak (Results) • Results refer to outcomes

  35. Past CPEx Award Recipients • Peak: • Poudre Valley Health System (Fort Collins, CO) – 2004, 2008 • GCC (Denver, Pueblo, Hesperus) - 2008

  36. Past CPEx Award Recipients • Timberline: • LexisNexis Case Law and Citations (Colorado Springs, CO) – 2006 • McKee Medical Center (Longmont, CO) – 2006 • North Colorado Medical Center (Greeley, CO) – 2006 • Veterans Administration Health Administration Center (Denver, CO) – 2005 • Transportation Expansion (T-REX) Project (Centennial, CO) – 2004 • Monfort College of Business, University of Northern Colorado (Greeley, CO) – 2004 • Colorado Department of Labor Unemployment Insurance Program (Denver, CO) – 2008 • St. Mary’s Hospital and Regional Medical Center ( Grand Junction) – 2008 - The Aurora Mecical Center/Centennial Medical Plaza - 2008

  37. Why Apply? “For us, Baldrige has provided the best consulting services we’ve ever received and the least expensive. Over the four years that we applied, we received more than 200 pages of feedback from highly trained, experienced, and professional Examiners, who spent literally hundreds of hours with our application and on site visit. Sr. Mary Jean Ryan, President/CEO SSM Health Care Baldrige Award Recipient, 2002

  38. Why Apply? “Because the Criteria are focused on what best-in-class companies do and are ever evolving. Measuring ourselves against them and applying for the Award has helped us strive to be the best we can be.” Martin Swarbrick, VP & Director Office of Business Excellence Motorola CGISS Baldrige Award Recipient, 2002

  39. Why Apply? “What evolved was a very clear direction toward the Baldrige definition of quality. You can’t afford not to focus on it. Because really if you break the Baldrige criteria down, all it is is how to run a quality organization…and get great results. And isn’t that what companies are in business for?” John Heer, President Baptist Hospital Inc. Baldrige Award Recipient 2003

  40. Benefits of Applying • Accelerate improvement efforts • Energize employees • Gain an outside perspective • Learn from the feedback

  41. Benefits of Applying • Align efforts • Focus on results • Enhance certification & accreditation efforts

  42. To Sum Up Improved • Alignment of plans and processes • Communication • Employee morale • Results!

  43. Doesn’t this quality stuff apply just to manufacturing? NO!

  44. EDUCATION

  45. Education Market Sector Baldrige Recipients • Pearl River School District, NY – 2001 • Chugach School District, AK – 2001 • University of Wisconsin-Stout, WI – 2001 • Community Consolidated School District 15, IL – 2003 • Kenneth W. Monfort College of Business, CO – 2004 • Jenks Public Schools, OK – 2005 • Richland College, TX – 2005

  46. Monfort College of Business2004 Baldrige Award Recipient in Education (College/University)

  47. Results! “Student applications have increased 28% after we received the Baldrige award. Contributions have increased nearly 20%.” Dr. Joe Alexander, Dean Kenneth W. Monfort College of Business University of Northern Colorado Baldrige Award Recipient in Education, 2004

  48. Richland College2005 Baldrige Award Recipient in Education • Enrollment has increased from approx. 12,500 credit students in 2000 to approx.14,500 in 2005 (16%) • Exceeded local competitors in all five years, including the next highest performer by more than 3,000 in 2005. 

  49. Jenks Public Schools2005 Baldrige Award Recipient in Education

  50. Pearl RiverSchool District Cost Efficiency Annual Per Pupil Expenditure vs. Consumer Price Index RESULTS

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