The President's Quality Award Program

2001 Information and Application

United States Office of Personnel Management

"As your President over the last seven years, I have been committed to
building a government that works better, costs less and delivers results
that improve the lives of the American people. Through the unqualified
dedication, perseverance and commitment to excellence of our nation's
federal employees, and through the leadership of Vice President Gore,
today, we have delivered on this commitment. Your work is the legacy of
the last years of the 20th century, and your work is the beacon that
will lead the way for future generations of dedicated public servants."

> President Bill Clinton

**Message from the Director**

The President's Quality Award Program recognizes federal organizations
that have improved their overall performance and demonstrated a
sustained trend in providing high quality products and services to
customers. The Award Criteria are closely aligned with the Malcolm
Baldrige National Quality Award Criteria---modified slightly to more
clearly address Federal Government operations. Thus, the highest level
of Program recognition, the Presidential Award for Quality, is the
federal government's equivalent of the Malcolm Baldrige National Quality
Award.

The major focus of the Award Program is on results. The Award Criteria
lay out an integrated management improvement process for establishing
organization performance goals, setting customer service standards, and
measuring progress and results in attaining those goals and standards.
The Award Criteria are based on core values and operating standards
found among the highest performing organizations from all sectors and
countries.

Organizations governmentwide benefit from applying the criteria whether
they apply for the award or whether they simply use the criteria for
self-assessment. The criteria provide a framework for assessing and
measuring performance of several important business factors such as
customers, products and services, human resources, operational and
financial. If an organization applies for the award, a team of
improvement experts from government, business, academia and other
sectors reviews their application. The team's review gives an objective,
external perspective of an organization's performance. The team provides
a feedback report that identifies strengths as well as provides useful,
actionable feedback for improvement areas. These feedback reports also
help organizations focus on key performance gaps, set improvement
priorities, plan more strategically, and introduce better and innovative
ways to work with customers, partners, suppliers and the workforce.

I am pleased to present the 2001 President's Quality Award Program
Information and Application Package. I encourage your agency to apply to
the Program and use the Award Criteria to continuously improve.

Janice R. Lachance\
Director\
U.S. Office of Personnel Management

**Program Overview**

**Background**

The President's Quality Award Program is administered by the Office of
Personnel Management. Created in 1988, the Program includes two awards:
the Presidential Award for Quality and the Award for Quality
Improvement. High performing Federal organizations receive these awards
on an annual basis. The Award Program may recognize organizations for
their accomplishments in quality management and improvement through
other awards.

**Award Program Purposes**

Overall, the Program:

• Recognizes Federal Government organizations that improve their overall
performance and capabilities. The organizations demonstrate a sustained
trend in providing high-quality products and services, resulting in
effective use of taxpayer dollars;

• Promotes sharing of the best management techniques, strategies and
performance practices among all Federal Government agencies as well as
with State and local governments and the private sector;

• Provides models for organizations to assess their overall performance
in delivering continuous value to customers; and

• Provides a systematic, disciplined approach to deal with change by
providing a framework or tool for conducting assessments, analysis,
training and performance improvement planning.

***The Program's Awards***

*Winners of the Presidential Award for Quality*: demonstrate mature
approaches to performance excellence that are well deployed throughout
their organizations. They have documented world class results and
sustained performance improvement over several years.

*Winners of the Award for Quality Improvement*: demonstrate early
positive approaches to performance excellence that are deployed
throughout most of the organization. They have attained early
preliminary positive results in important areas of their organization's
business.

**The Program's Performance Excellence Criteria**

The Performance Excellence Criteria are closely aligned with the Malcolm
Baldrige National Quality Award Criteria (MBNQA), with several
modifications to reflect the government environment. The close alignment
with the MBNQA promotes cooperation and the exchange of information
between public and private sector organizations, and sets the same high
standards of excellence for both government and business.

**Message to Federal Executives**

As we begin the 21st century, government executives face more complex
and intensified management challenges. Demands to reach higher
performance levels and demonstrate organizational results are major
priorities. Technology improvements require constant adaptation and
continuous learning. Customers, business partners and stakeholders have
higher expectations of products and services. And a skilled and highly
motivated work force is critical to "doing the right things" and "doing
things right."

**What Can the President's Quality Award Program Do For Me?**

The President's Quality Award Program helps you and your organization
improve performance, get results and become more responsive to
customers. Each year, the Program establishes Performance Excellence
Criteria based on characteristics found among the most excellent
performing organizations in the world today. The Criteria lay out a
"framework" and provide a tool to assess your organization's performance
and improve performance on the critical factors driving your business
success.

The Criteria are developed for Federal Government organizations involved
in all mission types: research and development, service, regulatory,
enforcement, manufacturing, health care, education, and others.

**What Are the Benefits of Program Participation?**

As a Program applicant, you benefit from an objective review of your
organization's performance and receive valuable feedback that pinpoints
strengths and improvement opportunities. Your application is reviewed by
a team of well trained Examiners who use the Criteria for evaluation.
Former applicants consistently report they gain greater benefits from
participating in the Award Program process than from winning an award.

**Can My Organization Use the Criteria for Self Assessment?**

We encourage organizations to use the Criteria for self assessment. The
assessment helps identify strengths and prioritize improvement
opportunities on key processes. By using the Criteria, organizations
report they improve communication, make effective resource decisions,
and motivate the work force by aligning individual and organization
performance.

To help meet the challenges of the next century, we encourage you to
apply to the Award Program and use the Criteria for self assessment.

> *"In recognition of your service to customers and commitment to
> excellence. . ."*

## **Presidential Award for Quality**

## Model of the 2000 Award

"In recognition of significant achievement in quality management\..."

Award for Quality Improvement

> Model of the 2000 Award

# Contents

Section Page

> Message from the Director 2
>
> Program Overview 3
>
> Message to Federal Executives 4
>
> The Awards (Photos) 5

**I. Core Values and Concepts** 8

### II. 2001 Performance Excellence Criteria

> Criteria Categories/Items/Point Values 15

1.0 Leadership\
Criteria 17

Description 19

> 2.0 Strategic Planning\
> Criteria 21\
> Description 25
>
> 3.0 Customer Focus\
> Criteria 28\
> Description 31
>
> 4.0 Information and Analysis\
> Criteria 34\
> Description 36
>
> 5.0 Human Resource Focus\
> Criteria 39\
> Description 43
>
> 6.0 Process Management\
> Criteria 46\
> Description 50
>
> 7.0 Business Results\
> Criteria 54\
> Description 58

### III. General Application Information and Instructions

Application Information

General Eligibility 62\
Future Eligibility of Previous Award Recipients 62\
Agency Limitations 62\
Evaluation Process 63\
Final Selection 63\
2001 Award Program Process and Time 63\
Award Recipients' Responsibilities 65\
Costs 66

Section Page

Application Instructions

General Directions 66\
Application Format and Guidelines 66\
Guidelines for Submitting Applications 67\
Role of Examiners and Judges 67\
Agency Coordinator and Contact Point 67\
OPM Contact Point and Submission of Applications 68\
Application Submission Date 68

### IV. Preparing an Application Package

A. Prepare the Organization Overview\
Guidelines for Preparing The Organization Overview 69

B. 2001 Criteria Response Guidelines\
(1) General Guidelines 71\
(2) Guidelines for Responding to Approach/Deployment Items 72\
(3) Guidelines for Responding to Results Items 74

### V. Scoring System and Guidelines

Scoring System 76\
Scoring Guidelines 79

#### Using the Performance Excellence Criteria for

**Organization Self-Assessment** 81

#### Summary of 2001 President's Quality Award Changes

General Program Changes 83

#### Guidance for Government Health Care Organizations

**and Education Institutions**

Health Care 85\
Education 90

**IX. Glossary of Key Terms** 93

**X. Nomination Form** 100

Applications for the

2001 President's Quality Award Program

must be received by

the Office of Personnel Management

no later than

**October 4, 2000.**

# I. CORE VALUES AND CONCEPTS

The President's Quality Award Performance Excellence Criteria are the
basis for organizational self‑assessment, evaluating an applicant
organization and providing feedback to applicants. The Criteria define a
quality system, the key elements of a quality improvement effort, and
the relative importance and interrelationship of these elements. The
Criteria support the Administration's efforts to reinvent the Federal
Government and improve overall performance. They have three important
roles in helping achieve these objectives:

• They can help organizations improve their performance practices and
capabilities.

• They facilitate communication and sharing of best practice information
among organizations of all types.

• They serve as a working tool for understanding and managing
performance, planning, training, and assessment.

The Criteria are built upon a set of core values and concepts. These
values and concepts are the foundation for integrating key performance
requirements within a results‑oriented framework. These values and
concepts are the embedded behaviors found in high performing
organizations. The core values and concepts are described below.

**Visionary Leadership** -- *senior leaders' capacity for setting key
directions for the*

> *organization by action and example*

An organization's senior leaders need to set directions and create a
customer focus, clear and visible values, and high expectations. The
directions, values and expectations should balance the needs of all your
stakeholders. Your leaders need to ensure the creation of strategies,
systems, and methods for achieving excellence, stimulating innovation,
and building knowledge and capabilities. The values and strategies
should help guide all activities and decisions of your organization.
Senior leaders should inspire and motivate your entire work force and
should encourage involvement, development and learning, innovation, and
creativity by all employees.

Through their ethical behavior and personal roles in planning,
communicating, coaching, developing future leaders, review of
organization performance, and employee recognition, your senior leaders
should serve as role models, reinforcing the values and building
leadership, commitment, and initiative throughout your organization.

**Customer‑Driven** -- *the organization's focus on its customers and
the ability to ensure*

> *its operations meet their needs*

Quality and performance are judged by an organization's customers. Thus,
your organization must take into account all product and service
features and characteristics that contribute value to your customers and
lead to customer satisfaction, preference, referral, and loyalty. Being
customer driven has both current and future components---understanding
today's customer expectations and anticipating their future
expectations. Value and satisfaction may be influenced by many factors
throughout your customer's overall purchase, ownership, and service
experiences. These factors include the organization's relationship with
customers that helps build trust, confidence, and loyalty.

Being customer driven means much more than defect and error reduction,
merely meeting specifications, or reducing complaints. Nevertheless,
defect and error reduction and elimination of causes of dissatisfaction
contribute to your customers' view of your organization and are thus
also important parts of being customer driven. In addition, your
organization's success in recovering from defects and mistakes ("making
things right for your customer") is crucial to retaining customers and
building customer relationships.

Customer driven organizations address not only the product and service
characteristics that meet basic customer requirements, but also address
those features and characteristics that differentiate products and
services from those of competitors or similar organizations. Such
differentiation might be based upon new or modified offerings,
combinations of product and service offerings, customization of
offerings, rapid response, or special relationships.

Being customer‑driven is thus a strategic concept. It is directed toward
customer retention, market share gain, growth, and ultimately program
success. It demands constant sensitivity to changing and emerging
customer, market, and mission requirements, and the factors that drive
customer satisfaction and retention. It demands anticipating changes in
the marketplace and public expectations. Being customer driven thus
demands awareness of developments in technology, and rapid and flexible
responses to customer and market requirements. Customer requirements
drive the organization's strategic plan of how it will realize its
goals---how it will achieve performance results that lead to customer
satisfaction, while recognizing the inherent differences in
relationships with different categories of customers. Processes are
developed to meet customer needs, measurement systems are developed to
track progress, and information is collected and used to improve work
processes and the products and services delivered to customers. In
high‑performing organizations, everyone in the organization shares the
vision, has a sense of community and commitment to a common purpose of
meeting customer requirements, and works together to create an alignment
of the goals of the organization.

**Organizational and Personal Learning** -- *the ability of the
organization to acquire, share*

> *and use knowledge to improve*

Achieving the highest levels of performance requires a well executed
approach to organizational and personal learning. Organizational and
personal learning is a goal of visionary leaders. The term
organizational learning refers to continuous improvement of existing
approaches and processes and adaptation to change, leading to new goals
and/or approaches. Learning needs to be "embedded" in the way your
organization operates. The term embedded means that learning: (1) is a
regular part of the daily work; (2) is practiced at personal, work unit,
and organizational levels; (3) results in solving problems at their
source; (4) is focused on sharing knowledge throughout your
organization; and (5) is driven by opportunities to do better. Sources
for learning include employee ideas, research and development, customer
input, and benchmarking or other comparative performance information
gathering.

Organizational learning can result in: (1) enhancing value to customers
through new and improved products and services; (2) developing new
business opportunities; (3) reducing errors, defects, waste, and related
costs; (4) improving responsiveness and cycle‑time performance; (5)
increasing productivity and effectiveness in the use of all resources
throughout your organization; and (6) enhancing your organization's
performance in fulfilling its public responsibilities and service as a
good citizen.

Employee success depends increasingly on having opportunities for
personal learning and practicing new skills. Organizations invest in
employee personal learning through education, training, and
opportunities for continuing growth. Opportunities might include job
rotation and increased pay for demonstrated knowledge and skills.
On-the-job training offers a cost-effective way to train and to better
link training to your organizational needs. Education and training
programs may benefit from advanced technologies, such as computer-based
learning and satellite broadcasts.

Personal learning can result in: (1) more satisfied and versatile
employees; (2) greater opportunity for organizational cross-functional
learning; and (3) an improved environment for innovation.

Thus, learning is directed not only toward better products and services,
but also toward being more responsive and efficient---giving the
organization and your employees marketplace sustainability and
performance advantages.

**Valuing Employees and Partners** -- *commitment to employees and
partners in order to*

> *optimize the opportunities for success in their work*
>
> *environment*

An organization's success in improving performance depends increasingly
on the knowledge, skills, innovative creativity, and motivation of its
employees and partners.

Valuing employees means committing to their satisfaction, development,
and well being. Increasingly, this involves more flexible, high
performance work practices tailored to employees with diverse workplace
and home life needs.

Major challenges in the area of work force development include: (1)
demonstrating your leaders' commitment to your employees; (2) providing
recognition opportunities that go beyond the normal compensation system;
(3) providing opportunities for development and growth within your
organization; (4) sharing your organization's knowledge so your
employees can better serve your customers and contribute to achieving
your strategic objectives; (5) creating an environment that encourages
risk taking; and (6) aligning human resources management with business
plans and strategic change processes.

Addressing these challenges requires the acquisition and use of
employee-related data on skills, satisfaction, motivation, safety, and
well being. Such data need to be tied to indicators of organization or
unit performance, such as program impact indicators, customer
satisfaction, customer retention, and productivity. Through this
approach, human resources management may be better integrated and
aligned with business directions.

Organizations need to build internal and external partnerships to better
accomplish overall goals.

Internal partnerships might include labor-management cooperation, such
as agreements with your unions. Partnerships with employees might entail
employee development, cross-training, or new work organizations, such as
high performance work teams. Internal partnerships also might involve
creating network relationships among your work units to improve
flexibility, responsiveness, and knowledge sharing.

External partnerships might be with customers, suppliers, and education
organizations. Strategic partnerships or alliances are increasingly
important kinds of external partnerships. Such partnerships might offer
entry into new markets or a basis for new products and services. Also,
partnerships might permit the blending of your organization's core
competencies or leadership capabilities with the complementary strengths
and capabilities of partners, thereby enhancing overall capability,
including speed and flexibility.

Successful internal and external partnerships develop longer-term
objectives, thereby creating a basis for mutual investments and respect.
Partners should address the key requirements for success, means of
regular communication, approaches to evaluating progress, and means for
adapting to changing conditions. In some cases, joint education and
training could offer a cost-effective method of developing employees.

**Agility** -- *ensuring flexibility and the capacity to act speedily*

Success in meeting public expectations of the Government demands
creating a capacity for rapid change and flexibility. All aspects of
electronic commerce require more rapid, flexible, and customized
responses. Government organizations, as well as businesses, face
ever-shorter cycles for introductions of new or improved products and
services. Faster and more flexible response to customers is now a more
critical requirement. Major improvements in response time often require
simplification of work units and processes and/or the ability for rapid
changeover from one process to another. Cross-trained employees are
vital assets in such a demanding environment.

A major success factor in meeting challenges is the
design-to-introduction (product generation) cycle time. To meet the
demands of rapidly changing work environments, organizations need to
carry out stage-to-stage integration (concurrent engineering) of
activities from research to product/service delivery.

All aspects of time performance are becoming increasingly important and
should be among your key process measures. Other important benefits can
be derived from this focus on time. Time improvements often drive
simultaneous improvements in organization, quality, cost, and
productivity.

**Focus on the Future** -- *operating strategically and possessing a
long-range orientation*

Pursuit of sustainable growth and mission or market leadership requires
a strong future orientation and a willingness to make long‑term
commitments to key stakeholders---your customers, employees, suppliers,
the public, and your community. Your organization should anticipate many
factors in your strategic planning efforts, such as customers'
expectations, new business and partnering opportunities, the
increasingly global economy, technological developments, changing
expectations of Congress and the Executive Branch, changing customer and
market segments, evolving regulatory requirements, community/societal
expectations, and new thrusts by alternative service and product
providers. Short and long‑term plans, strategic objectives, and resource
allocations need to reflect these influences. Major components of a
future focus include developing employees and suppliers, seeking
opportunities for innovation, and fulfilling public responsibilities.

**Managing for Innovation** -- *the capacity to develop creative and
effective products and*

> *solutions*

Innovation is making meaningful change to improve an organization's
products, services, and processes and create new value for the
organization's stakeholders. Innovation should focus on leading your
organization to new dimensions of performance. Innovation is no longer
strictly the purview of research and development units. Innovation is
important for key product and service processes and for support
processes. Organizations should be structured in such a way that
innovation becomes part of the culture and daily work.

**Management by Fact** -- *reliance on data and analysis in decision
making*

Organizations depend upon the measurement and analysis of performance.
Such measurements must derive from your organization's strategy and
provide critical data and information about key processes, outputs and
results. Many types of data and information are needed for performance
measurement, management, and improvement. Performance measurement areas
include customer, product, and service; operations, market, and
competitive comparisons; and supplier, employee, and cost and financial.

Analysis refers to extracting larger meaning from data and information
to support evaluation, decision making and operational improvement
within your organization. Analysis entails using data to determine
trends, projections, and cause and effect---that might not be evident
without analysis. Data and analysis support a variety of purposes, such
as planning, reviewing your overall performance, improving operations,
and comparing your performance with others working in similar
environments or with "best practices" benchmarks.

A major consideration in performance improvement involves the selection
and use of performance measures or indicators. The measures or
indicators you select should best represent the factors that lead to
improved customer, operational, and financial performance. A
comprehensive set of measures or indicators tied to customer and/or
organization performance requirements represents a clear basis for
aligning all activities with your organization's goals. Through the
analysis of data obtained from the tracking processes, the measures or
indicators themselves may be evaluated and changed to better support
such goals. For example, measures selected to track product and service
quality may be judged by how well improvement in these measures
correlates with improvement in customer satisfaction.

**Public Responsibility and Citizenship** -- *proactive and responsive
commitment to the needs*

> *and concerns of the community and larger public*

An organization's leadership needs to stress its responsibilities to the
public and needs to practice good citizenship. These responsibilities
refer to basic expectations of your organization---business ethics and
protection of public health, safety, and the environment. Health,
safety, and the environment include your organization's operations as
well as the life cycles of your products and services. Also,
organizations need to emphasize resource conservation and waste
reduction at their source. Planning should anticipate adverse impacts,
from facilities management, production, distribution, transportation,
use, and disposal of your products. Plans should seek to prevent
problems, to provide a forthright response if problems occur, and to
make available information and support needed to maintain public
awareness, safety, and confidence.

For many organizations, the product design stage is critical from the
point of view of public responsibility. Design decisions impact your
production process and the content of municipal and industrial wastes.
Effective design strategies should anticipate growing environmental
demands and related factors.

Organizations should not only meet all local, State and Federal laws and
regulatory requirements, they should treat these and related
requirements as opportunities for continuous improvement "beyond mere
compliance." This requires the use of appropriate measures in managing
performance.

Practicing good citizenship refers to leadership and support---within
the limits of your organization's resources---of publicly important
purposes. Such purposes might include providing support to education and
health care in the community, environmental excellence, resource
conservation, community service, industry and business practices, and
sharing of non‑sensitive information. Leadership as an organization
citizen also entails influencing other organizations, private and
public, to partner for these purposes. For example, your organization
could lead efforts to help define the obligations of other government
entities to their communities.

**Focus on Results and Creating Value** -- *the orientation to managing
toward key outcomes*

> *for mission accomplishment and meeting customer*
>
> *needs*

An organization's performance measurements need to focus on key results.
Results should be focused on creating and balancing value for all your
stakeholders---customers, employees, suppliers and partners, Congress,
the White House, the community, and the public at large. By creating
value for all your stakeholders, your organization builds loyalty and
contributes to growing the economy. To meet the sometimes conflicting
and changing aims that balancing value implies, organization strategy
needs to explicitly include all stakeholder requirements. This will help
to ensure that actions and plans meet differing stakeholder needs and
avoid adverse impacts on any stakeholders. The use of a balanced
composite of leading and lagging performance measures offers an
effective means to communicate short and long-term priorities, to
monitor actual performance, and to provide a focus for improving
results. The government executive has the basic responsibility of
balancing the necessity of being entrepreneurial with their
responsibility for directed missions and functions.

**Systems Perspective** -- *the ability of the organization to view its
operations holistically and*

> *understand how its parts interact; the ability to align activities*
>
> *effectively*

The Performance Excellence Criteria provide a systems perspective for
managing your organization and achieving performance excellence. The
core values and the seven PQA Categories form the building blocks of the
system. However, successful management of the overall enterprise
requires synthesis and alignment. Synthesis means looking at your
organization as a whole and focusing on what is important to the whole
enterprise. Alignment means concentrating on key organizational linkages
among requirements given in the Categories.

Alignment means that your senior leaders are focused on strategic
directions and on your customers. It means that your senior leaders
monitor, respond to, and build on your business results. Alignment means
linking your key strategies with your key processes and aligning your
resources to improve overall performance and satisfy customers.

Thus, a systems perspective means managing your whole enterprise, as
well as its components, to achieve performance improvement.

**II. 2001 Performance Excellence Criteria**

2001 Categories/Items Point Values

**1 Leadership 125**

1.1 Organizational Leadership 90

1.2 Organization Responsibility and Citizenship 35

**2 Strategic Planning 95**

2.1 Strategy Development 45

2.2 Strategy Deployment 50

**3 Customer Focus 95**

3.1 Customer and Market Knowledge 45

3.2 Customer Satisfaction and Relationships 50

**4 Information and Analysis 95**

4.1 Measurement of Organizational Performance 45

4.2 Analysis of Organizational Performance 50

**5 Human Resource Focus 95**

5.1 Work Systems 35

5.2 Employee Education, Training, and Development 30

5.3 Employee Well Being and Satisfaction 30

**6 Process Management 95**

6.1 Product and Service Processes 50

6.2 Support Processes 20

6.3 Supplier and Partnering Processes 25

**7 Business Results 400**

7.1 Customer-Focused Results 125

7.2 Financial Performance Results 50

7.3 Human Resource Results 75

7.4 Supplier and Partner Results 75

7.5 Organizational Effectiveness Results 75

**Total Points 1000**

*Note: The Scoring System used with an assessment of the Criteria Items
can be found on pages 76-80.*

**The Program's Performance Excellence Criteria**

The Performance Excellence Criteria are closely aligned with the Malcolm
Baldrige National Quality Award Criteria (MBNQA), with several
modifications to reflect the Government environment.

Specifically:

• Terminology is changed selectively throughout the document to reflect
the Federal Government rather than the unique environments of business,
health care and education.

• One set of Criteria exists for Federal Government organizations. The
Criteria apply to organizations involved in all mission types: research
and development, service, regulatory, enforcement, manufacturing, health
care, education, and others. The MBNQA has separate Criteria for four
organization types: large, small, education and health care.

• The point values for several Categories and Items are slightly
different. The differences reflect the relative importance of these
Categories and Items in effective Government organizations.

The close alignment with the MBNQA promotes cooperation and exchange of
information between public and private sector organizations and sets the
same high standards of excellence for both the Government and business.
The Criteria are updated on an annual basis to reflect the best
approaches within the private and public sectors used to systematically
improve performance. Federal organizations view the Criteria as a proven
framework to guide their customer-focused performance efforts.

**Key Features of the Criteria:**

• They focus on business results in five key areas: customer-focused
results, financial performance results, human resource results, supplier
and partner results, and organizational effectiveness results.

• They are non-prescriptive. They do not describe specific approaches,
measures, tools, technologies or systems for performance improvement nor
emphasize factors to be evaluated as part of an organization's
performance reviews.

• They are adaptable. Though the Criteria are made of results-oriented
requirements, organizations have latitude to decide how to best meet the
requirements. Since there are many possible organizational structures
and approaches for getting positive results, organizations have the
flexibility to select the best way, depending upon many factors such as
organization type, size, strategy, and stage of development.

• They support a systems approach to organization-wide goal alignment.
Alignment in the Criteria is built around connecting and reinforcing key
process measures derived from the organization's strategy. The measures
link directly to customer value and overall performance.

• They support results-based diagnosis. The Criteria relate directly to
improving organization performance; nothing is included merely for
purposes of an award. The scoring guidelines offer a way to profile
strengths and improvement opportunities. Whether done by an external
Award Program Examiner team, or conducted internally by the
organization, the diagnosis is a valuable management tool to evaluate
and improve a wide range of management systems and strategies.

**1. Leadership (125 pts.) CRITERIA**

The Leadership Category examines how your organization's senior leaders
address values and performance expectations, as well as focus on
customers and other stakeholders, empowerment, innovation, learning and
organizational directions. Also examined is how your organization
addresses its societal responsibilities and community involvement.

Leadership addresses how the senior leaders guide the organization in
setting directions and seeking future opportunities. Primary attention
is given to how the senior leaders set and deploy clear values and high
performance expectations that address the needs of all stakeholders. The
Category also includes the organization's responsibilities to the public
and how the organization practices good citizenship.

**1.1 Organizational Leadership (90 pts.) \[Approach-Deployment\]**

Describe how senior leaders guide your organization and review
organizational performance.

Within your response, include answers to the following questions:

**a. Senior Leadership Direction**

\(1\) How do senior leaders set, communicate, and deploy: a)
organizational values, b) performance expectations, and c) a focus on
creating and balancing value for customers and other stakeholders?
Include communication and deployment to all employees through your
leadership structure.

\(2\) How do senior leaders establish and reinforce an environment for
empowerment and innovation, and encourage and support organizational and
employee learning?

\(3\) How do senior leaders set directions and seek future opportunities
for your organization?

**b. Organizational Performance Review**

\(1\) How do senior leaders review organizational performance and
capabilities to assess organizational health, competitive performance,
and progress relative to performance goals and changing organizational
needs? Include the key performance measures regularly reviewed by your
senior leaders.

\(2\) How do you translate organizational performance review findings
into priorities for improvement and opportunities for innovation and
reinvention?

\(3\) What are your key recent performance review findings, priorities
for improvement, and opportunities for innovation? How are they deployed
throughout your organization and, as appropriate, to your
suppliers/partners and key customers to ensure organizational alignment?

\(4\) How do senior leaders use organizational performance review
findings and employee feedback to improve their leadership effectiveness
and the effectiveness of management throughout the organization?

[Notes:]{.underline}

N1. Senior leaders are normally defined as the highest ranking official
and those leaders reporting directly to that official. For some
organizations, senior leaders may include union leadership.

N2. Your organizational performance results should be reported in Items
7.1, 7.2, 7.3, 7.4, and 7.5.

For definitions of the following key terms, see pages 93-97 and 98:
alignment, approach, deployment, empowerment, measures and indicators,
performance, and value.

For additional description of this Item, see page 19.

**1.2 Organization Responsibility and Citizenship (35 pts.)
\[Approach-Deployment\]**

Describe how your organization addresses its responsibilities to the
public and how your organization practices good citizenship.

*Within your response, include answers to the following questions*:

**a. Responsibilities to the Public**

\(1\) How do you address the impacts on society of your products,
services, and operations? Include your key practices, measures, and
targets for regulatory and legal requirements and for risks associated
with your products, services, and operations.

\(2\) How do you anticipate public concerns with current and future
products, services, and operations? How do you prepare for these
concerns in a proactive manner?

\(3\) How do you ensure ethical business practices in all stakeholder
transactions and interactions?

**b. Support of Key Communities**

How do your organization, your senior leaders, and your employees
actively support and strengthen your key communities? Include how you
identify key communities and determine areas of emphasis for
organizational involvement and support.

[Notes:]{.underline}

N1. Public responsibilities in areas critical to your organization also
should be addressed in Strategy Development (Item 2.1) and in Process
Management (Category 6). Key results, such as results of
regulatory/legal compliance or environmental improvements through the
use of "green" technology or other means should be reported in
Organizational Effectiveness Results (Item 7.5a\[2\]).

N2. Society impact results directly related to the organization's
mission should be reported in Organizational Effectiveness Results (Item
7.5a).

N3. Areas of community support appropriate for inclusion in 1.2b might
include efforts to strengthen local community services, education, the
environment, and practices of trade, business, or professional
associations.

N4. Health and safety of customers, including users and visitors, are
included in Item 1.2. Health and safety of employees are not addressed
in Item 1.2; these are addressed in Item 5.3.

For additional description of this Item, see page 19.

**1. Leadership DESCRIPTION**

**1.1 Organizational Leadership**

**Purpose**

This Item examines the key aspects of your organization's leadership and
the roles of your senior leaders, with the aim of creating and
sustaining a high performance organization.

**Requirements**

You are asked how senior leaders set directions, communicate and deploy
values and performance expectations, and take into account the
expectations of customers, employees, suppliers, the Congress, the
public and other stakeholders. This includes how leaders create an
environment for innovation, learning, and knowledge sharing. You are
also asked how your senior leaders review overall organizational
performance, what key performance measures they regularly review, and
how review findings are used to drive improvement and change, including
your leaders' effectiveness.

**Comments**

• Leadership's central roles in setting directions, creating and
balancing value for all stakeholders, and driving performance are the
focus of this Item. Success requires a strong future orientation and a
commitment to both improvement and change. Increasingly, this requires
creating an environment for learning and innovation, as well as the
means for rapid and effective application of knowledge.

• The organizational review called for in this Item is intended to cover
all areas of performance, thereby providing a picture of the "state of
health" of your organization. This includes not only how well you are
currently performing, but also how well you are moving toward the
future. It is anticipated that the review finding will provide a
reliable means to guide both improvement and change, tied to your
organization's own key objectives, success factors, and measures.
Therefore, an important component of your senior leaders' organizational
review is the translation of the review findings into an action agenda,
sufficiently specific for deployment throughout your organization and to
your suppliers/partners and key customers.

• It is important to depict how the reviews and employee feedback are
used to improve leadership effectiveness.

**1.2 Organization Responsibility and Citizenship**

**Purpose**

This Item addresses how your organization fulfills its public
responsibilities and encourages, supports, and practices good
citizenship.

**Requirements**

You are asked how your organization addresses current and future impacts
on society in a proactive manner and how it ensures ethical business
practices in all stakeholder interactions. The impacts and practices are
expected to cover all relevant and important areas---products, services,
and operations.

You also are asked how your organization, your senior leaders, and your
employees identify, support, and strengthen key communities as part of
good citizenship practices.

**Comments**

• An integral part of performance management and improvement is
proactively addressing legal and regulatory requirements and risk
factors. Addressing these areas requires establishing appropriate
measures and/or indicators that senior leaders track in their overall
performance review. Your organization should be sensitive to issues of
public concern, whether or not these issues are currently embodied in
law.

• Citizenship implies going beyond a compliance orientation. Good
citizenship opportunities are available to organizations of all sizes.
These opportunities include employee community service that is
encouraged and supported by your organization.

• Examples of organizational community involvement include: influencing
the adoption of higher standards in education by communicating
employability requirements to schools and school boards; partnering with
other government organizations and health care providers to improve
health in the local community by providing education and volunteer
services to address public health issues; and partnering to influence
trade and business associations to engage in beneficial, cooperative
activities, such as sharing best practices to improve overall U.S.
global competitiveness and environment.

**2. Strategic Planning (95 pts.) CRITERIA**

The Strategic Planning Category examines your organization's strategy
development process, including how your organization develops strategic
objectives, action plans, and related human resource plans including
diversity planning. Also examined are how strategy and plans are
deployed and performance is tracked.

Strategic Planning addresses strategic and action planning, and
deployment of plans. The Category stresses that customer‑driven quality
and operational performance excellence are key strategic issues that
need to be integral parts of your organization's overall planning.

Specifically:

• customer‑driven quality is a strategic view of quality. The focus is
on the drivers of customer satisfaction, customer retention, new
markets, and market share---key factors in competitiveness,
profitability, and business and/or mission success; and

• operational performance improvement contributes to short‑term and
longer‑term productivity growth and cost/price competitiveness. Building
operational capability---including speed, responsiveness, and
flexibility---represents an investment in strengthening competitive and
performance fitness.

The Criteria emphasize that improvement and learning need to be embedded
in work processes. The special role of strategic planning is to align
work processes with the organization's strategic directions, thereby
ensuring that improvement and learning reinforce organizational
priorities.

The Strategic Planning Category examines how your organization:

• understands the key customer, market, mission, and operational
requirements as input to setting strategic directions. This helps ensure
that ongoing process improvements are aligned with the organization's
strategic directions.

• optimizes the use of resources, ensures the availability of trained
employees, and ensures bridging between short‑term and longer‑term
requirements that may entail capital expenditures, supplier development,
etc.; and

• ensures that deployment will be effective---that there are mechanisms
to transmit requirements and achieve alignment on three basic levels:
(1) the organization/senior leader level; (2) the key process level; and
(3) the work‑unit/individual‑job level.

The Strategic Planning Category requirements are intended to encourage
strategic thinking and acting---to develop a basis for a distinct
competitive position in the marketplace and/or program/mission driven
environment. These requirements do not imply formalized plans, planning
systems, departments, or specific planning cycles. Also, the Category
does not imply that all your improvements could or should be planned in
advance. An effective improvement system combines improvements of many
types and degrees of involvement. This requires clear strategic
guidance, particularly when improvement alternatives compete for limited
resources. In most cases, priority setting depends heavily upon a cost
rationale. However, there also might be critical requirements such as
societal responsibilities that are not driven by cost considerations
alone.

The Category is generally consistent with and supportive of the
requirements of the Government Performance and Results Act. The focus of
the Criteria is on planning strategically without regard to
organizational level. If strategic plans are developed by higher levels
within the overall organization, the applicant's response should focus
on its own strategic planning process and how its planning process and
plans fit into the parent organization's overall plans, such as those
developed pursuant to the Government Performance and Results Act.

**2.1 Strategy Development (45 pts.) \[Approach-Deployment\]**

Describe your organization's strategy development process to strengthen
organizational performance and competitive position. Summarize your key
strategic objectives.

*Within your response, include answers to the following questions:*

**a. Strategy Development Process**

\(1\) What is your strategic planning process? Include a description of
how you develop strategy and strategic objectives. Also include key
steps and key participants in the process.

\(2\) How do you consider the following key factors in setting strategic
direction? Include how relevant data and information are gathered and
analyzed. The factors are:

• customer and market/mission needs/expectations, including new
product/service opportunities

• your competitive and mission environment and capabilities, including
use of new technology

• financial, societal, and other potential risks

• your human resource capabilities and needs

• your operational capabilities and needs, including resource
availability

• your supplier and/or partner capabilities and needs

**b. Strategic Objectives**

What are your key strategic objectives and your timetable for
accomplishing them? In setting objectives, how do you evaluate various
options to assess how well they respond to the factors in 2.1a(2) most
important to your performance/mission accomplishment?

[Notes]{.underline}:

N1. Strategy development refers to your organization's approach (formal
or informal) to a future‑oriented basis for business decisions, resource
allocations, and management. Such development might utilize various
types of forecasts, projections, options, scenarios, and/or other
approaches to addressing the future.

N2. You should interpret the word strategy broadly. It might be built
around or lead to any or all of the following: new products, services,
and markets; revenue or mission growth; cost reduction; business
acquisitions; new programs or missions; and new partnerships and
alliances. Strategy might be directed toward becoming a preferred
supplier, a low‑cost producer, a market innovator, and/or a high‑end or
customized service provider. Strategy might depend upon or require you
to develop different kinds of capabilities, such as rapid response,
customization, market understanding, lean or virtual manufacturing,
relationships, rapid innovation, technology management, leveraging
assets, business process excellence, and information management.
Responses to Item 2.1 should address the key factors from your point of
view.

N3. Item 2.1 addresses overall organizational directions and strategy
that might include changes in services, products, and/or product lines.
However, the Item does not address product and service design; these
factors are addressed in Item 6.1.

N4. For organizations whose strategies are developed by higher levels
(e.g., agency headquarters, etc.), this item should describe how the
organization provides input to the parent organization's strategy
development process and how the applicant organization's own strategy is
developed consistent with that of higher levels.

N5. The approach toward strategic planning and objectives outlined in
this Category is intended to be consistent with, and supportive of, the
strategic planning requirements of the Government Performance and
Results Act.

For definitions of the following key terms, see pages 97 and 98: process
and strategic planning.

For additional description of this Item, see pages 25.

**2.2 Strategy Deployment (50 pts.) \[Approach-Deployment\]**

Describe your organization's strategy deployment process. Summarize your
organization's action plans and related performance measures. Project
the performance of these key measures into the future.

Within your response, include answers to the following questions:

**a. Action Plan Development and Deployment**

\(1\) How do you develop action plans that address your key strategic
objectives? What are your key short‑and longer‑term action plans?
Include key changes, if any, in your products/services and/or your
customers/markets.

\(2\) What are your key human resource requirements and plans, based on
your strategic objectives and action plans?

\(3\) How do you allocate resources to ensure accomplishment of your
overall action plan?

\(4\) What are your key performance measures and/or indicators for
tracking progress relative to your action plans?

\(5\) How do you communicate and deploy your strategic objectives,
action plans, and performance measures/indicators to achieve overall
organizational alignment?

**b. Performance Projection**

\(1\) What are your two-to-five year projections for key performance
measures and/or indicators? Include key performance targets and/or
goals, as appropriate.

\(2\) How does your projected performance compare with competitors, key
benchmarks, and past performance, as appropriate? What is the basis for
these comparisons?

[Notes]{.underline}:

N1. Action plan development and deployment are closely linked to other
Items in the Criteria. Examples of key linkages are:

• Item 1.1 for how senior leaders set and communicate directions;

• Category 3 for gathering knowledge on customers, markets and/or
mission requirements as input to your strategy and action plans, and for
deploying action plans;

• Category 4 for information and analysis to support development of
strategy, to provide an effective performance basis for performance
measurements, and to track progress relative to strategic objectives and
action plans;

• Category 5, particularly Items 5.1 and 5.2, for work system needs,
employee education, training, and development needs, and related human
resource factors resulting from action plans;

• Category 6 for process requirements resulting from your action plans;
and

• Item 7.5 for accomplishments relative to your organizational strategy.

N2. Measures and/or indicators of projected performance (2.2b) might
include changes resulting from new program services, business ventures,
new value creation, market entry and/or shifts, changing societal needs
related to program mission and/or significant anticipated innovations in
products, services, and/or technology.

N3. In responding to Area 2.2a(2), related human resource plans might
include:

• recruitment, including critical skill categories and expected or
planned changes in work force demographics;

• how the organization evaluates and improves its human resource
planning and practices and alignment of these with strategic directions;
and

• changes in: (a) work design and/or organization to improve knowledge
creation/sharing, flexibility, innovation and rapid response; (b)
employee development, education and training; (c) performance appraisal;
and (d) compensation, recognition, and benefits.

For definitions of the key terms, see pages 93 and 96: action plans,
measures and indicators.

For additional description of this Item, see page 26.

**2. Strategic Planning DESCRIPTION**

**2.1  Strategy Development**

**Purpose**

This Item addresses how your organization sets strategic directions and
develops your strategic objectives, with the aim of strengthening your
overall organizational performance and competitiveness. This Item may
include a description of how the organization develops strategic and
performance plans to meet the provisions of the Government Performance
and Results Act.

**Requirements**

You are asked to outline your organization's strategic planning process,
including the key participants. You are asked how you consider the key
factors that affect your organization's future. These factors cover
external and internal influences on your organization. You are asked to
address each factor and outline how relevant data and information are
gathered and analyzed.

Finally, you are asked to summarize your key strategic objectives and
your timetable for accomplishing them.

**Comments**

• This Item calls for basic information on the planning process and for
information on all the key influences, risks, challenges, and other
requirements that might affect the organization's future opportunities
and directions---taking as long a view as possible. This approach is
intended to provide a thorough and realistic context for the development
of a customer- and market-focused strategy to guide ongoing decision
making, resource allocation, and overall management.

• This Item is intended to cover all types of missions, businesses,
competitive situations, strategic issues, planning approaches, and
plans. The requirements explicitly call for a future-oriented basis for
action, but do not imply formalized planning, planning departments,
planning cycles, or a specified way of visualizing the future. Even if
your organization is seeking to create an entirely new program or
business situation, it is still necessary to set and to test the
objectives that define and guide critical actions and performance.

• This item focuses on competitive leadership, which usually depends
upon revenue growth and operational effectiveness. Competitive
leadership requires a view of the future that includes not only the
markets or segments in which your organization operates, but also
**how** it operates. How it operates presents many options and requires
that you understand the strengths and weaknesses of your organization
and those of similar organizations or competitors. Although no specific
time horizon is included, the thrust of this Item is sustained
competitive leadership.

**2.2  Strategy Deployment**

**Purpose**

This Item addresses how your organization translates your strategic
objectives into action plans to accomplish the objectives and to enable
assessment of progress relative to your action plans. The aim is to
ensure that your strategies are deployed for goal achievement. The
strategy might include how the organization deploys strategic and
performance plans to meet the provisions of the Government Performance
and Results Act.

**Requirements**

You are asked how you develop action plans that address your
organization's key strategic objectives. You are asked to summarize your
key short- and longer-term action plans. Particular attention is given
to products/services, customers/markets, human resource requirements,
and resource allocations.

You also are asked to specify key measures and/or indicators used in
tracking progress relative to the action plans and how you communicate
and align strategic objectives, action plans, and performance.

Finally, you are asked to provide a two-to-five year projection of key
performance measures and/or indicators, including key performance
targets and/or goals. This projected performance is the basis for
comparing past performance and performance relative to competitors,
similar organizations, and benchmarks, as appropriate.

**Comments**

• This Item calls for information on how your action plans are developed
and deployed. Accomplishment of action plans requires the definition of
resource requirements and performance measures, as well as aligning work
unit, supplier, and/or partner plans. Of central importance is how you
achieve alignment and consistency---for example, via key processes and
key measurements. Also, alignment and consistency are intended to
provide a basis for setting and communicating priorities for ongoing
improvement activities---part of the daily work of all work units. In
addition, performance measures are critical to performance tracking.
Critical action plan resource requirements include human resource plans
that support your overall strategy.

• Examples of possible human resource plan elements are:

-- redesign of your work organization and/or jobs to increase employee
empowerment and decision making;

-- initiatives to promote greater labor-management cooperation, such as
union partnerships;

-- initiatives to foster knowledge sharing and organizational learning;

-- modification of your compensation and recognition systems to
recognize team, organizational, customer, or other performance
attributes.

-- education and training initiatives, such as developmental programs
for future leaders, partnerships with universities to help ensure the
availability of future employees, and/or establishment of
technology-based training capabilities.

• Projections and comparisons in this Item are intended to encourage
your organization to improve its ability to understand and track
dynamic, competitive performance factors. Through this tracking process,
your organization should be better prepared to take into account its
rate of improvement and change relative to competitors or similar
organizations, and relative to your own targets or stretch goals. Such
tracking serves as a key diagnostic management tool.

• In addition to improvement relative to past performance, similar
organizations, and to competitors, projected performance also might
include changes resulting from new programs or business ventures, entry
into new markets, product/service innovations, or other strategic
thrusts.

**3. Customer Focus  (95 pts.) CRITERIA**

The Customer Focus Category examines how your organization determines
requirements, expectations, and preferences of customers and markets.
Also examined is how your organization builds relationships with
customers and determines their satisfaction.

Customer Focus addresses how the organization seeks to understand the
voices of customers and of the marketplace. The Category stresses
relationship enhancement as an important part of an overall listening
and learning strategy. Customer satisfaction results provide vital
information for understanding customers and the marketplace. In many
cases, such results and trends provide the most meaningful information,
not only on customers' views but also on their marketplace
behaviors---repeat business and positive referrals.

**3.1 Customer and Market Knowledge  (45 pts.) \[Approach-Deployment\]**

Describe how your organization determines short‑ and longer‑term
requirements, expectations, and preferences of current and potential
customers, markets and/or mission‑related segments to ensure the
relevance of current products/services and to develop new opportunities.

Within your response, include answers to the following questions:

**a. Customer and Market Knowledge**

\(1\) How do you determine or target customers, customer groups, and/or
market/mission‑related segments? How do you consider customers of
competitors and other potential customers and/or markets in this
determination?

\(2\) How do you listen and learn, and use the analysis of data and
information to determine key requirements and drivers of purchase
decisions for current, former, and potential customers? If determination
methods differ for different customers and/or customer groups, include
the key differences.

\(3\) How do you determine and/or project key product/service features
and their relative importance/value to customers for purposes of current
and future marketing, product planning, and other business developments,
as appropriate? How do you use relevant information from current and
former customers, including marketing/sales information, customer
retention, won/lost analysis, and complaints, in this determination?

\(4\) How do you keep your listening and learning methods, and keep them
current with business needs and directions?

[Notes]{.underline}:

N1. This Item addresses external customers only---those outside of the
organization. Responses should also take into account the differing
requirements of various categories of customers often served by
government organizations, such as entitled and mandated customers in
addition to the traditional voluntary customers.

N2. If your products and services are provided to end users via other
organizations, such as private contractors, State and local governments,
or non‑profit organizations, customer group responses to 3.1a(1) should
take into account the requirements and expectations of both the end
users and these intermediate organizations.

N3. Product and service features \[3.1a(3)\] refer to all important
characteristics and to the performance of products and services
throughout their full life cycle. The focus should be primarily on
features that bear upon customer preference and repurchase or use
loyalty---for example, those features that differentiate products and
services from competing (or similar government) offerings. Those
features might include such factors as price, value, delivery, customer
or technical support, and the program marketing or outreach
relationship. Many government agencies must also consider
non‑competitive factors such as fairness and mandated services to
entitled customers.

N4. Information about customers and markets is requested as a key input
to strategic development (Item 2.1), to design products and services
(Items 6.1, 6.2), and to help leaders set direction for the organization
(Item 1.1). However, strategy development could also generate the need
for new or additional customer and market information, including new
information gathering methods, and new customers and segments from which
to gather information.

For definitions of the following key term, see page 94: customer

For additional description of this Item, see page 31.

**3.2 Customer Satisfaction and Relationships  (50 pts.)
\[Approach-Deployment\]**

Describe how your organization determines and enhances the satisfaction
of customers, builds relationships to improve current offerings,
addresses current and projected customer and market‑ or mission‑related
business needs, and develops new opportunities.

Within your response, include answers to the following questions:

**a. Customer Relationships**

\(1\) How do you determine key access mechanisms to facilitate the
ability of customers to conduct business, seek assistance and
information, and make complaints? Include a summary of your key
mechanisms.

\(2\) How do you determine key customer contact requirements and deploy
these requirements to all employees involved in the response chain?

\(3\) What is your complaint management process? Include how you ensure
that complaints and suggestions are managed effectively and promptly.
How are the data and information aggregated and analyzed for overall
organizational improvement?

\(4\) How do you build relationships with customers for repeat business
and/or positive referral? Indicate key distinctions for different
markets, customer groups, and market segments.

\(5\) How do you keep your approaches to customer access and
relationships current with business needs and directions?

**b. Customer Satisfaction Determination**

\(1\) What processes, measurement methods, and data do you use to
determine customer satisfaction and dissatisfaction? Include how your
measurements capture actionable information that reflects customers'
future business and/or potential for positive referral. Also include any
significant differences in processes or methods for different customer
groups and/or market/mission‑related segments.

\(2\) How do you follow up with customers on products/services and
recent transactions to receive prompt and actionable feedback?

\(3\) How do you obtain and use information on customer satisfaction
relative to competitors or similar organizations and/or benchmarks, as
appropriate?

\(4\) How do you keep your approaches to satisfaction determination
current with business needs and directions?

[Notes]{.underline}:

N1. Customer relationships (3.2a) might include the development of
partnerships or alliances.

N2. Customer satisfaction and dissatisfaction determination (3.2b) might
include any or all of the following: surveys, formal and informal
feedback from customers, use of customer account data, and complaints.

N3. Customer satisfaction measurements might include both a numerical
rating scale and descriptors for each unit in the scale. Effective
(actionable) customer satisfaction measurements provide reliable
information about customer ratings of specific product, service, and
relationship features, the linkage between these ratings, and the
customer's likely future actions---repurchase and/or positive response
or referral. Product and service features might include overall value
and price.

N4. Customer satisfaction and dissatisfaction results and information on
product/service measures that contribute to customer satisfaction or
dissatisfaction should be reported in Item 7.1. These latter measures
might include trends and levels in performance of customer‑ desired
product features or customer complaint handling effectiveness, such as
complaint response time, effective resolution, and percent of complaints
resolved on first contact.

N5. A complaint management process may involve a customer advocacy
program.

For additional description of this Item, see pages 32.

**3. Customer Focus DESCRIPTION**

**3.1  Customer and Market Knowledge**

**Purpose**

This Item examines how your organization determines current and emerging
customer requirements and expectations. This information is intended to
support marketing, business/program development, and planning. In a
rapidly changing competitive environment, many factors may affect
customer preference and loyalty, making it necessary to listen and learn
on a continuous basis.

**Requirements**

The Item seeks information on how organizations recognize market
segments, customers of competitors or similar organizations inside or
outside of the government, and/or other potential customers.
Accordingly, the Item addresses how the organization tailors its
listening and learning to different customer groups and
market/mission-related segments. For example, a relationship strategy
might be possible with some customers, but not with others. Other
information sought relates to sensitivity to specific product and
service requirements and their relative importance or value to customer
groups. This determination should be supported by use of information and
data, such as complaints, gains and losses of customers and enhanced
responsibilities established by the parent organization, the White House
or Congress. The Item also addresses how the organization improves its
listening and learning strategies, with a focus on keeping current with
changing business needs and directions.

**Comments**

• To be effective, listening and learning need to have a close
connection with the organization's overall mission and business
strategy. For example, if the organization customizes its products and
services, the listening and learning strategy needs to be backed by a
capable information system---one that rapidly accumulates information
about customers and makes this information available, where needed,
throughout the organization or elsewhere within\
the overall value chain.

• A variety of listening and learning strategies are commonly used.
Selection depends upon the type and size of the organization and other
factors.

• Some examples are:

-- relationship building, including close integration with key
customers;

-- rapid innovation and field trials of products and services to better
link research and development and design to market needs and/or mission
requirements;

-- close tracking of technological, competitive, societal,
environmental, economic, demographic and other factors that may bear
upon customer requirements, expectations, preferences, or alternatives;

-- seeking to understand, in detail, customers' value chains and how
they are likely to change;

-- focus groups with demanding or leading-edge customers;

-- training employees, particularly customer-contact employees, in
customer listening;

-- use of critical incidents, such as complaints, to understand key
service attributes from the point of view of customers and
customer-contact employees;

-- interviewing lost customers to determine the factors they use in
their purchase decisions; and won/lost and/or comparative analysis
relative to competitors and/or similar organizations ;

-- post-transaction follow-up contacts with customers; and

-- analysis of major factors affecting key customers.

**3.2  Customer Satisfaction and Relationships**

**Purpose**

This Item examines your organization's processes for determining
customer satisfaction and building customer relationships, with the aim
of acquiring new customers, retaining existing customers, and developing
new opportunities.

**Requirements**

You are asked how:

• you provide easy access for customers and potential customers to seek
information or assistance and/or to comment and complain;

• customer contact requirements are determined and deployed;

• your organization aggregates, analyzes, and learns from complaint
information;

• you build relationships with customers since business success,
business development, and product/service innovation increasingly depend
on maintaining close relationships with your customers;

• you keep your approaches to all aspects of customer relationships
current with changing business needs and directions since approaches to
and bases for relationships may change quickly;

• you address your satisfaction and dissatisfaction determination
processes and how they differ for different customer groups, different
markets, and market segments because satisfied customers are a
requirement for loyalty, repeat business, and positive referrals; and

• you follow up with customers regarding products, services, and recent
transactions, and how you determine the customers' satisfaction relative
to competitors or similar organizations so that you may improve future
performance.

**Comments**

• This Item emphasizes how you obtain actionable information from
customers. To be actionable, you should be able to tie the information
to key business processes, and you should be able to determine
cost/revenue or program effectiveness implications for improvement
priority setting.

• Complaint aggregation, analysis, and root cause determination should
lead to effective elimination of the causes of complaints and to
priority setting for process, product, and service improvements.
Effective complaint management includes sharing information throughout
the organization so everyone can learn from these customer transactions.

• A key aspect of customer satisfaction determination is satisfaction
relative to competitors and competing or alternative offerings. Such
information might be derived from your own comparative studies or from
independent studies. The factors that lead to customer preference are of
critical importance in understanding factors that drive markets and
potentially affect longer-term competitiveness.

**4. Information and Analysis (95 pts.) CRITERIA**

The Information and Analysis Category examines your organization's
performance measurement system and how your organization analyzes
performance data and information.

Information and Analysis provides the key information necessary to
effectively measure performance, manage your organization, and drive
improvement of performance and competitiveness. In the simplest terms,
Category 4 is the "brain center" for the alignment of your
organization's operations and its strategic directions. Collection and
analysis of the right information and data is critical. From this
information and analysis, your organization determines where it is, if
it is going in the direction defined in your strategic plan and how it
compares to your competitors or providers of like products or services.
Since information and analysis may contain primary sources of
competitive advantage and productivity growth, it has strategic
considerations.

**4.1 Measurement of Organizational Performance  (45 pts.)
\[Approach-Deployment\]**

Describe how your organization provides effective performance
measurement systems for understanding, aligning, and improving
performance at all levels and in all parts of your organization.

Within your response, include answers to the following questions:

**a. Measurement of Organizational Performance**

\(1\) How do you address the major components of an effective
performance measurement system, including the following key factors?

• selection of measures/indicators, and extent and effectiveness of
their use, in daily operations of key processes and systems

• selection and integration of measures/indicators and completeness of
data to track your overall organizational performance

• selection, and extent and effectiveness of use of key comparative data
and information

• data and information reliability

• a cost/financial understanding of improvement options

• correlations/projections of data to support planning

\(2\) How do you keep your performance measurement system current with
business needs and directions?

[Notes]{.underline}:

N1. The term information and analysis refers to the key metrics used by
your organization to measure and analyze performance. Performance
measurement is used in fact‑based decision making for setting and
aligning organizational directions and resource use at the work unit,
key process, departmental, organization component and whole organization
levels. Because of the key nature of the data and information, they
should be linked to the organization's operations, systems and processes
described in the Organization Overview and Category 6.

N2. Deployment of data and information might be web-based, electronic or
other means. Reliability \[4.1a(1)\] includes reliability of software
and delivery systems as well as data accuracy.

N3. For organizations that operate in a market environment, competitive
comparisons refer to performance relative to direct competitors in the
organization's markets. Many government organizations do not have
competitors as such. For those, "competitive comparisons" in the
Criteria refer to organizations with similar mission, operations and/or
customers.

For definitions of the following key terms, see page 94: benchmarking
and competitive comparisons.

For additional description of this Item, see page 36.

**4.2 Analysis of Organizational Performance  (50 pts.)
\[Approach-Deployment\]**

Describe how your organization analyzes performance data and information
to assess and understand overall organizational performance.

Within your response, include answers to the following questions:

**a. Analysis of Organizational Performance**

\(1\) How do you perform analysis to support your senior leaders'
knowledge of organizational performance and your organizational
planning? How do you ensure that the analyses address the overall health
of your organization, including your key business results and strategic
objectives?

\(2\) How do you ensure that the results of organizational‑level
analysis are linked to work group and/or functional‑level operations to
enable effective support for decision making?

\(3\) How does analysis support daily operations of key systems and
processes throughout your organization? Include how this analysis
ensures that measures align with action plans.

[Notes]{.underline}:

N1. Senior leaders' knowledge of organizational performance includes
information needed on a continuous basis, for periodic review (e.g.
quarterly reviews), and for organizational planning.

N2. Analysis includes trends, projections, comparisons, and cause‑effect
correlations intended to support performance reviews and the setting of
priorities for resource use. Accordingly, analysis draws upon many types
of data: customer‑related, financial and market, mission requirements,
operational, competitive, and others.

N3. Responses to this Item might include information on agency annual
performance reports developed pursuant to the Government Performance and
Results Act, and performance measures and measurement systems developed
for that purpose.

N4. Performance results should be reported in Items 7.1, 7.2, 7.3, 7.4,
and 7.5.

For definition of the following key term, see page 93: analysis.

For additional description of this Item, see page 37.

**4. Information and Analysis DESCRIPTION**

**4.1  Measurement of Organizational Performance**

**Purpose**

This Item examines your organization's selection, management, and use of
data and information for performance measurement, in support of
organizational planning and performance improvement. The intent of this
Item is to show how your selection, management and use of data,
information and analysis enables your organization to function as a high
performing organization.

**Requirements**

You are asked how you establish the major components of an effective
performance measurement system for your organization. You are asked how
you select and use measures and indicators for tracking daily operations
and how you select and integrate measures for monitoring overall
organizational performance. You also are asked how you ensure data and
information reliability since reliability is critical to successful
monitoring of operations and to successful data integration for
assessing overall performance.

You are asked how you select and use competitive comparisons and
benchmarking information to help drive performance improvement.

Finally, you are asked how you keep your organization's performance
measurement system current with changing business and mission-related
needs.

**Comments**

• Alignment and integration are key concepts for success­ful
implementation of your performance measurement system. Alignment and
integration include: (1) how measures are aligned throughout your
organization; (2) how they are integrated to yield organization‑wide
measures; and (3) how performance measurement requirements are deployed
within your organization. The extent and effectiveness of their use to
meet performance assessment needs helps your senior leaders track work
group, functional level, and/or process level performance on key
measures targeted for organization-wide significance and/or improvement.

• Performance data and information are especially important in
partnerships, alliances, and supply chains. Your responses to this Item
should take into account this strategic use of data and information, and
should recognize the need for rapid data validation and reliability
assurance given the increasing use of electronic data transfer.

• The use of competitive and comparative information is important to all
organizations. It helps alert organizations facing tough competition and
high public expectations to threats and new practices from competitors.
The major premises for using competitive and comparative information
are: (1) your organization needs to know where it stands relative to
competitors, similar program/service providers, and to best practices;
(2) comparative and benchmarking information often provides the impetus
for significant ("breakthrough") improvement or change; and (3)
preparation for comparing performance information frequently leads to a
better understanding of your processes and their performance.
Benchmarking information also may support business analysis and
decisions relating to core competencies, alliances, and outsourcing.

• Your effective selection and use of competitive comparisons and
benchmarking information and data require: (1) determination of needs
and priorities; (2) criteria for seeking appropriate sources for
comparisons---from within and outside your organization's business or
mission area and/or markets; and (3) use of data and information to set
stretch targets and to promote major, non‑incremental improvements in
areas most critical to your organization's competitive strategy.

**4.2  Analysis of Organizational Performance**

**Purpose**

This Item examines your organization's analysis of its performance, as a
basis for assessing your overall organizational health. The Item serves
as a central analysis point in an integrated performance measurement and
management system that relies on financial and non-financial data and
information. The intent of analysis is to guide your organization's
process management toward the achievement of key business and mission
results and strategic objectives.

**Requirements**

You are asked how you analyze data and information from all parts of
your organization to support your senior leaders' assessment of overall
organizational health, your organizational planning, and your daily
operations.

**Comments**

• Individual facts and data do not usually provide an effective basis
for organizational priority setting. This Item emphasizes that close
alignment is needed between your data gathering and information analysis
and your organizational performance review and also between your
analysis and your organizational planning. This ensures that analysis is
relevant to decision making and that decision making is based on
relevant facts.

• Action depends upon understanding cause/effect connections among
processes and between processes and business/performance results.
Process actions and their results may have many cost and revenue and/or
mission accomplishment implications. Organizations have a critical need
to provide an effective analytical basis for decisions because resources
for improvement are limited and cause/effect connections are often
unclear.

• Analyses that your organization conducts to gain an understanding of
performance and needed actions may vary widely, depending upon your type
of organization, size, competitive environment, and other factors.
Examples of possible analyses include:

-- how product and service quality improvement correlates with key
customer indicators such as customer satisfaction, customer retention,
and market share;

-- cost/revenue, cost benefit and cost/effectiveness implications of
customer‑related problems and problem resolution effectiveness;

-- interpretation of market share changes, where appropriate, in terms
of customer gains and losses and changes in customer satisfaction;

-- improvement trends in key operational performance indicators such as
productivity, cycle time, waste reduction, new product introduction, and
defect levels;

-- relationships between employee/organizational learning and value
added per employee;

-- financial benefits derived from improvements in employee safety,
absenteeism, and turnover;

-- benefits and costs associated with education and training;

-- benefits and costs associated with improved organizational knowledge
management and sharing;

-- how the ability to identify and meet employee requirements correlates
with employee retention, motivation, and productivity;

-- cost/revenue and cost effectiveness implications of employee‑related
problems and effective problem resolution;

-- trends in individual measures of productivity, such as work force
productivity; individual or aggregate measures of productivity and
quality relative to competitors and/or organizations with similar
missions, functions or processes;

-- cost trends relative to competitors and/or similar organizations;

-- relationships between product/service quality, operational
performance indicators, and overall financial performance trends as
reflected in indicators such as operating costs, revenues, asset
utilization, and value added per employee;

-- allocation of resources among alternative improvement projects based
on cost/revenue implications and improvement potential;

-- comparisons among business units showing how quality and operational
performance improvement affect financial performance;

-- profit impacts of customer retention;

-- cost/revenue, customer, and productivity implications of engaging in
and/or expanding electronic commerce;

-- trends in aggregate measures such as total factor productivity and;

-- trends in economic, market, and stakeholder indicators of value.

• An important part of the senior leaders' organizational review is the
translation of review findings into an action agenda---sufficiently
specific so that deployment throughout the organization, and to
suppliers/partners and key customers is possible.

**5. Human Resource Focus (95 pts.) CRITERIA**

The Human Resource Focus Category examines how your organization enables
employees to develop and utilize their full potential, aligned with the
organization's objectives. Also examined are your organization's efforts
to build and maintain a work environment and an employee support climate
conducive to performance excellence, full participation, and personal
and organizational growth. The efforts may include partnership with
unions, as applicable.

Human Resource Focus addresses key human resource practices---those
directed toward creating a high performance workplace and toward
developing employees to enable them and the organization to adapt to
change. The Category covers human resource development and management
requirements in an integrated way, aligned with the organization's
strategic directions. Included in the focus on human resources is a
focus on the work environment and the employee support climate.

To ensure the basic alignment of human resource management with overall
strategy, the Criteria also include human resource planning as part of
organizational planning in the Strategic Planning Category.

**5.1 Work Systems  (35 pts.) \[Approach-Deployment\]**

Describe how your organization's work and job design, compensation,
career progression, recognition, and related work force practices enable
and encourage all employees to achieve high performance in your
operations.

Within your response, include answers to the following questions:

**a. Work Systems and Job Design**

\(1\) How do you design, organize, and manage work and jobs to promote
cooperation and collaboration, individual initiative, innovation and
flexibility, and to keep current with business needs?

\(2\) How do your managers and supervisors encourage and motivate
employees to develop and utilize their full potential? Include formal
and/or informal mechanisms you use to encourage and support employees in
job‑ and career‑related development/learning objectives.

\(3\) How does your employee performance management system, including
feedback to employees, support high performance?

\(4\) How do your compensation, recognition, and related
reward/incentive practices reinforce high performance?

\(5\) How do you ensure effective communication, cooperation, and
knowledge/skill sharing across work units, functions, and locations, as
appropriate?

\(6\) How do you identify characteristics and skills needed by potential
employees; how do you recruit and hire new employees? How do you take
into account key performance requirements, diversity of your community,
and fair work force practices?

[Notes]{.underline}:

N1. The term employees refers to your organization's permanent,
temporary, and part‑time personnel, as well as any contract employees
supervised by your organization. Employees include managers and
supervisors at all levels. Contract employees supervised by a contractor
performing key or support processes should be addressed in Item 6.3.

N2. Work design refers to how employees are organized and/or organize
themselves in formal and informal, temporary, or longer‑term units. This
might include work teams, process teams, customer action teams,
problem-solving teams, centers of excellence, functional units,
cross‑functional teams, and organizational units which are self‑managed
or managed by supervisors. Job design refers to responsibilities,
authorities, and tasks assigned to individuals. In some work systems,
jobs might be shared by a team, based upon cross-training, or
cross‑utilization.

N3. Compensation and recognition refer to all aspects of pay and reward,
including promotions and bonuses, which might be based upon performance,
skills acquired, and other factors. Compensation and recognition can
take the form of monetary and non‑monetary, formal and informal, and
individual and group‑oriented approaches.

For additional description of this Item, see page 43.

**5.2 Employee Education, Training, and Development (30 pts.)**

**\[Approach-Deployment\]**

Describe how your organization's education and training support the
achievement of your business objectives, build employee knowledge,
skills, and capabilities, and contribute to improved employee
performance.

Within your response, include answers to the following questions:

**a. Employee Education, Training, and Development**

\(1\) How does your education and training approach balance short‑ and
longer‑term organizational and employee needs, including development,
learning, and career progression?

\(2\) How do you design education and training to keep current with
business and individual needs such as special skills training and
management/leadership development? Include how job and organizational
performance, characteristics and skills are used in education and
training design and evaluation.

\(3\) How do you seek and use input from employees and their
supervisors/managers on education and training needs, expectations, and
design?

\(4\) How do you deliver and evaluate education and training for both
long and short term? Include formal and informal education, training,
and learning, as appropriate.

\(5\) How do you address key developmental and training needs, including
diversity training, management/leadership development, new employee
orientation, and safety, as appropriate?

\(6\) How do you address performance excellence in your education and
training? Include how employees learn to use performance measurements,
performance standards, skill standards, performance improvement, quality
control methods, and benchmarking, as appropriate.

\(7\) How do you reinforce knowledge and skills on the job?

[Notes]{.underline}:

N1. Education and training address the knowledge, skills and abilities
employees need to meet their current and projected work performance and
career development objectives.

N2. Education and training delivery \[5.2a(4)\] might occur inside or
outside the organization and involve on‑the‑job, classroom,
computer‑based, distance learning, and/or other types of delivery
(formal or informal).

N3. Evaluation of training \[5.2a(4)\] might include cost/benefits of
education and training; most effective means and timing for training
delivery; and effectiveness of cross training or cross‑utilization.

For additional description of this Item, see page 44.

**5.3 Employee Well Being and Satisfaction  (30 pts.)
\[Approach-Deployment\]**

Describe how your organization maintains a work environment and an
employee support climate that contribute to the well being,
satisfaction, and motivation of all employees.

*Within your response, include answers to the following questions:*

**a. Work Environment**

How do you address and improve workplace health, safety, and ergonomic
factors? How do employees take part in identifying these factors and in
improving workplace safety? Include performance measures and/or targets
for each key environmental factor. Also include significant differences,
if any, based on different work environments for employee groups and/or
work units.

**b. Employee Support Climate**

\(1\) How do you enhance your employees' work climate via services,
benefits, and policies? How are these enhancements selected and tailored
to the needs of different categories and types of employees, and to
individuals, as appropriate?

\(2\) What are the organizational systems that encourage and motivate
employees to develop and utilize their full potential in a diverse work
force?

**c. Employee Satisfaction**

\(1\) How do you determine the key factors/indicators that affect
employee well being, satisfaction, and motivation?

\(2\) What formal and/or informal assessment methods and measures do you
use to determine employee well being, satisfaction, and motivation? How
do you tailor these methods and measures to a diverse work force and to
different categories and types of employees? How do you use other
indicators such as employee turnover, absenteeism, grievances, and
productivity to assess and improve employee well being, satisfaction,
and motivation?

\(3\) How do you use the results of employee satisfaction assessments to
identify work environment and employee support climate improvement
priorities?

[Notes]{.underline}:

N1. Approaches for enhancing employees' work climate \[5.3b(1)\] might
include: mentoring; career development and employability services;
recreational or cultural activities; non‑work‑related education; day
care; job rotation and/or sharing; special leave for family
responsibilities and/or for community service; home safety training;
flexible work hours; outplacement; and retiree benefits (including
extended health care).

N2. Specific factors that might affect employee well being,
satisfaction, and motivation \[5.3c(1)\] include: effective employee
problem or grievance resolution; safety factors; employee views of
management; employee training, development, and career opportunities;
employee preparation for changes in technology or the work organization;
work environment and other work conditions; workload; cooperation and
teamwork; recognition; benefits; communications; job security;
compensation; and equal opportunity.

N3. Measures and/or indicators of well being, satisfaction, and
motivation \[5.3c(2)\] might include: safety; absenteeism; turnover;
turnover rate for customer‑contact employees; grievances; other job
actions; insurance costs; workers compensation claims; and results of
surveys. Results relative to such measures and/or indicators should be
reported in Item 7.3.

N4. Priority setting (5.3c\[3\]) might draw upon your human resource
results presented in Item 7.3 and might involve addressing employee
problems based on their impact on your organizational performance.

For additional description of this Item, see page 45.

**5. Human Resource Focus DESCRIPTION**

**5.1  Work Systems**

**Purpose**

This Item examines your organization's systems for work and job design,
compensation, employee performance management, motivation, recognition,
communication, and hiring, with the aim of enabling and encouraging all
employees to contribute effectively and to the best of their ability.
These systems are intended to foster high performance, to result in
individual and organizational learning, and to enable adaptation to
change.

**Requirements**

You are asked:

• how you design work and jobs to allow employees to exercise discretion
and decision making, resulting in high performance;

• how you encourage and motivate employees, how you manage employee
performance, how you compensate, recognize, and reward employees, and
how you ensure effective communication and cooperation, all in support
of high performance and employee well being and loyalty; and

• how you profile, recruit, and hire employees who will meet your
expectations and needs. This requirement entails ensuring that the work
force is reflective of your key communities. The right work force is an
enabler of high performance.

**Comments**

• High performance work is characterized by flexibility, innovation,
knowledge and skill sharing, alignment with organizational objectives,
customer focus, and rapid response to changing business needs and
requirements of the marketplace or mission environment. The focus of
this Item is on a work force capable of achieving high performance. In
addition to the enabled employees and proper work system design, high
performance work requires ongoing education and training, and
information systems that ensure proper information flow. To help
employees realize their full potential, many organizations use
individual development plans developed with each employee and addressing
his/her career and learning objectives.

• Factors for your consideration in work and job design include
simplification of job classifications, cross training, job rotation, use
of teams (including self-directed teams), and changes in work layout and
location. Also important is effective communication across functions and
work units to ensure a focus on customer requirements and to ensure an
environment with trust, knowledge sharing and mutual respect.

• Compensation and recognition systems should be matched to your work
systems. To be effective, compensation and recognition might be tied to
demonstrated skills and/or to peer evaluations.

• Compensation and recognition approaches also might include gain
sharing, team or unit performance, and linkage to customer satisfaction
and loyalty measures or other business objectives.

**5.2  Employee Education, Training, and Development**

**Purpose**

This Item examines your organization's work force education, training,
and on-the-job reinforcement of knowledge and skills, with the aim of
meeting ongoing needs of employees and a high performance workplace.

**Requirements**

You are asked:

• how education and training are designed, delivered, reinforced on the
job, and evaluated, with special emphasis placed on meeting individual
career progression and organizational business needs;

• how you consider job and organizational performance in education and
training design and evaluation in support of a fact-based management
system;

• how employees and their supervisors participate in the needs
determination, design, and evaluation of education and training, because
these individuals frequently are best able to identify critical needs
and evaluate success;

• how employees and supervisors use performance measures and standards
to ensure performance excellence in education and training; and

• about your organization's key developmental and training needs,
including such high priority needs as management/leadership development,
diversity training, and safety. Succession planning and leadership
development, at all levels in increasingly diverse organizations,
present a growing challenge and need.

**Comments**

• Depending on the nature of your organization's work and employees'
responsibilities and stage of organizational and personal development,
education and training needs might vary greatly. These needs might
include knowledge sharing skills, communications, teamwork, problem
solving, interpreting and using data, meeting customer requirements,
process analysis and simplification, waste and cycle time reduction, and
priority setting based on strategic alignment or cost/benefit analysis.
Education needs also might include basic skills, such as reading,
writing, language, and arithmetic. Education and training delivery might
occur inside or outside your organization and could involve on-the-job,
classroom, computer-based, distance learning, or other types of
delivery. Training also might occur through developmental assignments
within or outside your organization.

• When you evaluate education and training, you should seek
effectiveness measures as a critical component of evaluation. Such
measures might address impact on individual, unit, and organizational
performance, impact on customer-related performance, and cost/benefit
analysis of the training.

• Although this Item does not specifically ask you about training for
customer contact employees, such training is increasingly important and
common and appropriate for inclusion here. It frequently includes:
acquiring critical knowledge and skills with respect to your products,
services, and customers; skills on how to listen to customers; recovery
from problems or failures; and learning how to effectively manage
customer expectations.

**5.3  Employee Well Being and Satisfaction**

**Purpose**

This Item examines your organization's work environment, your employee
support climate, and how you determine employee satisfaction, with the
aim of fostering the well being, satisfaction, and motivation of all
employees, recognizing their diverse needs.

**Requirements**

You are asked:

• how you ensure a safe and healthful work environment for all
employees, taking into account their differing work environments and
associated requirements. Special emphasis is placed on how employees
contribute to identifying important factors and to improving workplace
safety;

• to identify appropriate measures and targets for key environmental
factors so that status and progress can be tracked;

• how you enhance employee well being, satisfaction, and motivation
based upon a holistic view of this key stakeholder group. Special
emphasis is placed on the variety of approaches you use to satisfy a
diverse work force with differing needs and expectations; and

• how you assess employee well being, satisfaction, and motivation, and
how you relate assessment findings to key business results to set
improvement priorities.

**Comments**

• Most organizations, regardless of size, have many opportunities to
contribute to employee well being, satisfaction, and motivation. Some
examples of services, facilities, activities, and other opportunities
are personal and career counseling; career development and employability
services; recreational or cultural activities; formal and informal
recognition; non-work-related education; day care; special leave for
family responsibilities and/or community service; flexible work hours
and benefits packages; outplacement services; and retiree benefits,
including extended health care and access to employee services.

• Although satisfaction with pay and promotion is important, these two
factors are generally not sufficient to ensure overall employee
satisfaction, motivation, and high performance. Some examples of other
factors to consider are effective employee problem and grievance
resolution; employee development and career opportunities; work
environment and management support; workload; communication,
cooperation, and teamwork; job security; appreciation of the differing
needs of diverse employee groups; and organizational support for serving
customers.

**6. Process Management (95 pts.) CRITERIA**

The Process Management Category examines the key aspects of your
organization's process management, including customer-focused design,
product and service delivery, support, and supplier and partnering
processes involving all work units.

Process Management is the focal point within the Criteria for all key
work processes. Built into the Category are the central requirements for
efficient and effective process management---effective design; a
prevention orientation; linkage to suppliers and partners; operational
performance; cycle time; and evaluation, continuous improvement, and
organizational learning.

Flexibility, cost reduction, and cycle time reduction are increasingly
important in all aspects of process management and organizational
design. In simplest terms, flexibility refers to your ability to adapt
quickly and effectively to changing requirements.

Depending on the nature of your organization's mission, strategy and/or
markets, flexibility might mean rapid changeover from one
product/service to another, rapid response to changing societal needs or
customer demands, or the ability to produce a wide range of customized
services or products. Flexibility might demand special strategies such
as implementing modular designs, sharing components, sharing
manufacturing lines, and providing specialized training. Flexibility
also increasingly involves competitive outsourcing decisions, agreements
with key suppliers, and novel partnering arrangements.

Cost and cycle time reductions often involve many of the same process
management strategies as achieving flexibility. Thus, it is crucial to
utilize key measures for these requirements in your overall process
management.

**6.1 Product and Service Processes (50 pts.) \[Approach-Deployment\]**

Describe how your organization manages key product and service design
and delivery processes.

Within your response, include answers to the following questions:

**a. Design Processes**

\(1\) What are your design processes for products/services and their
related production/delivery processes?

\(2\) How do you incorporate changing customer/market and
mission‑related requirements into product/service designs and
production/delivery systems and processes?

\(3\) How do you incorporate new technology into products/services and
into production/delivery systems and processes, as appropriate?

\(4\) How do your design processes address design quality and cycle
time, transfer of learning from past projects and other parts of the
organization, cost control, new design technology, productivity, and
other efficiency/effectiveness factors?

\(5\) How do you ensure that your production/delivery process design
accommodates all key operational performance requirements?

\(6\) How do you coordinate and test design and production/delivery
processes to ensure capability for trouble‑free and timely introduction
of products/services?

**b. Production/Delivery Processes**

\(1\) What are your key production/delivery processes and their key
performance requirements?

\(2\) How does your day‑to‑day operation of key production/delivery
processes ensure meeting key performance requirements?

\(3\) What are your key performance measures and/or indicators used for
the control and improvement of these processes? Include how real‑time
customer input is sought, as appropriate.

\(4\) How do you improve your production/delivery processes to achieve
better process performance and improvements to products/services, as
appropriate? How are improvements shared with other organizational units
and processes, as appropriate?

[Notes]{.underline}:

N1. Some organizations are required to rely on processes designed and
mandated by their parent organization. Responses to this Item should
reflect your efforts to manage and improve your own processes within the
parameters and guidelines established by your parent organization, as
well as any contributions you may have made to improve your parent
organization's mandated processes.

N2. Key performance measures include in-process measurements that
indicate if a process, service, or product is performing as expected.
Identifying and correcting deviations early help minimize problems
and/or cost.

N3. Product and service design, production, and delivery differ greatly
among organizations, depending upon many factors. These factors include
the nature of your products and services, technology requirements,
issues of modularity and parts commonality, customer and supplier
relationships and involvement, and product and service customization.
Responses to Item 6.1 should address the most critical requirements for
your organization.

N4. Responses to Item 6.1 should include how your customers and key
suppliers and partners are involved in your design processes, as
appropriate.

N5. Your results of operational improvements in product/service design,
productivity and delivery processes should be reported in Item 7.5. Your
results of improvements in product/service performance should be
reported in Item 7.1.

For definitions of the following key terms, see pages 94 and 97: cycle
time and productivity

For additional description of this Item, see page 50.

**6.2 Support Processes  (20 pts.) \[Approach-Deployment\]**

Describe how your organization manages its key support processes.

*Within your response, include answers to the following questions:*

**a. Support Processes**

\(1\) What are your key support processes?

\(2\) How do you determine key support process requirements,
incorporating input from internal and/or external customers, as
appropriate? What are the key operational requirements (such as
productivity and cycle time) for the processes?

\(3\) How do you design these processes to meet all the key
requirements?

\(4\) How does your day‑to‑day operation of key support processes ensure
meeting key performance requirements? How do you determine and use key
performance measures and/or customer feedback in your support processes?

\(5\) How do you improve your support processes to achieve better
performance and to keep them current with organization needs and
directions, as appropriate? How are improvements shared with other
organizational units and processes, as appropriate?

[Notes]{.underline}:

N1. Support processes are those that support your organization's
products/services design, productivity and delivery processes, and
operations. For many organizations, this might include information and
knowledge management, finance and accounting, facilities management,
research and development, administration, inter-governmental relations,
Congressional and public affairs, and sales/marketing. The key support
processes to be included in Item 6.2 are unique to your organization and
how you operate. Focus should be on your most important processes not
addressed in Items 6.1 and 6.3.

N2. Your results of improvements in key support processes and key
support process performance results should be reported in Item 7.5.

For additional description of this Item, see page 51.

**6.3 Supplier and Partnering Processes  (25 pts.)
\[Approach-Deployment\]**

Describe how your organization manages its key supplier and/or
partnering interactions and processes.

Within your response, include answers to the following questions:

**a. Supplier and Partnering Processes**

\(1\) What key products/services do you acquire from suppliers and/or
partners?

\(2\) How do you incorporate performance requirements into supplier
and/or partner process management? What key performance requirements
must your suppliers and/or partners meet to fulfill your overall
requirements?

\(3\) How do you ensure that your performance requirements are met? How
do you provide timely and actionable feedback to suppliers and/or
partners? Include the key performance measures and/or indicators and any
targets you use for supplier and/or partner assessment.

\(4\) How do you minimize overall costs associated with inspections,
tests, and process and/or performance audits?

\(5\) How do you provide assistance and/or incentives to suppliers
and/or partners to help them improve their overall performance and to
improve their abilities to contribute to your current and longer‑term
performance?

\(6\) How do you improve your supplier and/or partner processes,
including your role as supportive customer/partner, to keep current with
your organization needs and directions? How are improvements shared
throughout your organization, as appropriate?

[Notes]{.underline}:

N1. The term supplier refers to other organizations including units of
your parent organization that provide you with goods and services.

N2. Supplier and partnering processes might include processes for supply
chain improvement and optimization, beyond direct suppliers and
partners.

N3. If your organization selects preferred suppliers and/or partners
based upon volume of business or criticality of their supplied products
and/or services, include selection criteria in the response.

N4. Results of improvements in supplier and partnering processes and
supplier/partner performance results should be reported in Item 7.4.

N5. If contractor staff who provide functions for the organization are
supervised in their work by the organization's staff as employees, then
their work should be addressed in Items 6.1 and 6.2.

For additional description of this Item, see pages 52.

**6.0 Process Management DESCRIPTION**

**6.1  Product and Service Processes**

**Purpose**

This Item examines your organization's key product and service design
and delivery processes, with the aim of improving your marketplace and
operational performance. This includes how your organization designs,
introduces, produces, delivers, and improves your products and services.
It also examines how your production/delivery processes are operated and
improved. The trouble‑ free introduction of new products and services is
important to the management of these processes. This requires effective
coordination, starting early in the product and service design phase.
This Item also examines your organizational learning through a focus on
how lessons learned in one process or work unit are replicated and added
to the knowledge base of other projects or work units.

**Requirements**

You are asked to identify your key design processes for products and
services and their related production and delivery processes. You are
asked: 1) how changing customer and market requirements and technology
are incorporated into product and service designs; (2) how
production/delivery processes are designed to meet customer, quality,
and operational performance requirements; (3) how design and
production/delivery processes are coordinated to ensure trouble‑free and
timely introduction and delivery of products and services; and (4) how
design processes are evaluated and improved to achieve better
performance.

You are asked to identify your key production/delivery processes, their
key performance requirements, and key performance measures including
in-process measures. These requirements and measures are the basis for
maintaining and improving your products, services, and
production/delivery processes. Finally, you are asked how you improve
your production/delivery processes to achieve better processes and
products/services.

**Comments**

• Your design approaches could differ appreciably depending upon the
nature of your products/services---whether the products/services are
entirely new, variants, or involve major or minor process changes.
Responses should reflect the key requirements for your products and
services. Factors that might need to be considered in design include:
safety; long‑term performance; environmental impact; "green"
manufacturing; measurement capability; process capability;
manufacturability; maintainability; supplier capability; and
documentation. Effective design also must consider cycle time and
productivity of production and delivery processes. This might involve
detailed mapping of manufacturing or service processes and redesigning
("reengineering") those processes to achieve efficiency, as well as to
meet changing customer requirements.

• Many organizations need to consider requirements for suppliers and/or
partners at the design stage. Overall, effective design must take into
account all stakeholders in the value chain. If many design projects are
carried out in parallel, or if your organization's products utilize
parts, equipment, and facilities that are used for other products,
coordination of resources might be a major concern, but might offer
means to significantly reduce unit costs and time to market. This should
be addressed in your response to Item 6.1a.

• Coordination of design and production/delivery processes involves all
work units and/or individuals who will take part in production/delivery
and whose performance materially affects overall process outcome. This
might include groups such as research and development (R&D), marketing,
design, and product/process engineering.

• This item calls for information on the management and improvement of
key production/delivery processes. The information required includes a
description of the key processes, their specific requirements, and how
performance relative to these requirements is determined and maintained.
Specific reference is made to in‑process measurements and customer
interactions. These measurements and interactions require the
identification of critical points in processes for measurement,
observation, or interaction. These activities should occur at the
earliest points possible in your processes to minimize problems and
costs that may result from deviations from expected performance.

• Expected performance frequently requires setting performance levels or
standards to guide decision-making. When deviations occur, corrective
action is required to restore the performance of the process to its
design specifications. Depending on the nature of the process, the
corrective action could involve technical and/or human considerations.
Proper corrective action involves changes at the source (root cause) of
the deviation. Such corrective action should minimize the likelihood of
this type of variation occurring again or anywhere else in your
organization.

• When customer interactions are involved, differences among customers
must be considered in evaluating how well the process is performing.
This might entail specific or general contingencies, depending on the
customer information gathered. This is especially true of professional
and personal services.

• This Item also calls for information on how processes are improved to
achieve better performance. Better performance means not only better
quality from your customers' perspective but also better financial and
operational performance---such as productivity---from your
organization's perspective. A variety of process improvement approaches
are commonly used. These approaches include: (1) sharing successful
strategies across your organization; (2) process analysis and research
(e.g., process mapping, optimization experiments, and error proofing);
(3) research and development results; (4) benchmarking; (5) using
alternative technology; and (6) using information from customers of the
processes---within and outside of your organization. Process improvement
approaches might utilize financial data to evaluate alternatives and set
priorities. Together, these approaches offer a wide range of
possibilities, including complete redesign ("reengineering") of
processes.

**6.2  Support Processes**

**Purpose**

This Item examines your organization's key support processes, with the
aim of improving your overall operational performance. This Item
examines how your organization designs, implements, operates, and
improves its support processes.

**Requirements**

You are asked to identify your key support processes and their design
requirements. You are asked how your organization's key support
processes are designed to meet all your requirements and how you
incorporate input from internal and external customers, as appropriate.

You also are asked how the day‑to‑day operation of your key support
processes ensures meeting the key requirements, including how in‑process
measures and/or customer feedback are used.

Finally, you are asked how you improve your key support processes to
achieve better performance and to keep them current with your changing
business and mission needs and directions.

**Comments**

• Your support processes are those that support product, program and/or
service delivery, but are not usually designed in detail with the
products and services. The support process requirements usually do not
depend significantly upon product and service characteristics. Support
process design requirements usually depend significantly upon your
internal requirements, and they must be coordinated and integrated to
ensure efficient and effective linkage and performance. Support
processes might include finance and accounting, software services,
sales, marketing, public and congressional relations, information
services, personnel, legal services, plant and facilities management,
research and development, and secretarial and other administrative
services.

• This Item calls for information on how your organization evaluates and
improves the performance of your key support processes. Four approaches
frequently used are: (1) process analysis and research; (2)
benchmarking; (3) use of alternative technology; and (4) use of
information from customers of the processes---within and outside your
organization. Together, these approaches offer a wide range of
possibilities, including complete redesign ("reengineering") of
processes.

**6.3  Supplier and Partnering Processes**

**Purpose**

This Item examines your organization's key supplier and partnering
processes and relationships, with the aim of improving your performance
and your suppliers' performance. This Item addresses how your
organization designs, implements, operates, and improves its supplier
and partnering processes and relationships.

**Requirements**

You are asked to identify the key products and services that you obtain
from suppliers and partners to understand the nature and
business/mission criticality of these supplies. You are asked for your
key performance requirements and measures for suppliers and partners,
and how you use these requirements and measures in managing and
improving performance. These performance requirements and associated
measures should be the principal factors you use in making purchases
(e.g., quality, timeliness, and price). Processes for determining
whether or not requirements are met might include audits, process
reviews, receiving inspections, certification, testing, and rating
systems.

You are asked how you provide actionable feedback and how you minimize
costs associated with acceptance testing (two components of a system for
supplier/partner relationship building and process improvement). You
also are asked how you provide your suppliers and partners with
assistance and incentives, which will contribute to improvements in both
their and your performances.

Finally, you are asked how you improve your supplier and partnering
processes so that you and your suppliers can keep current with your
changing business/mission needs and directions.

**Comments**

• The terms "supplier" and "partner" refer to other organizations
(public and private) and to units of your parent organization that
provide goods and services. Suppliers' and partners' goods and services
may be used at any stage in the production, design, delivery, and use of
your organization's products and services. Thus, suppliers include
businesses such as distributors, dealers, warranty repair services,
transportation, contractors, and franchises, as well as those that
provide materials and components. Suppliers also include service
suppliers, such as health care, training, and education providers.

• Suppliers and partners are receiving increasing focus as many
organizations re‑evaluate their core functions and the potential for
better overall performance through strategic use of suppliers, partners,
and the establishment of partnering relationships. As a result, supply
chain management is a growing factor in many organizations'
productivity, effectiveness and overall business or mission success. For
many organizations, suppliers and partners are an increasingly important
part of achieving not only high performance and lower‑cost objectives,
but also strategic objectives. For example, they might provide unique
design, integration, and marketing capabilities.

• This Item emphasizes the unique relationships that organizations are
building with key and preferred suppliers, including establishing
partnering relationships. In identifying key suppliers and partners, you
should consider goods and services used in the design, production,
delivery, and use of your organization's products and services, i.e.,
consider both upstream and downstream suppliers and partners.

• This item places particular emphasis on the supplier/partner
relationships that lead to high performance. Electronic data and
information exchange is fostering new modes of communication and new
types of relationships that can support high performance on the part of
suppliers and customers. You are encouraged to focus on actions that
will not only improve supplier performance, but actions that will enable
them to contribute to your improved performance. Such actions might
include one or more of the following: (1) improving your procurement and
supplier management processes (including seeking feedback from suppliers
and internal customers); (2) joint planning; (3) rapid information and
data exchanges; (4) use of benchmarking and comparative information; (5)
customer‑supplier teams; (6) training; (7) long‑term agree­ments; (8)
incentives; and (9) recognition. Your supplier management planning might
include changes in supplier selection, leading to a reduction in the
number of suppliers and an increase in preferred supplier and
partnership agreements.

**7. Business Results (400 pts.) CRITERIA**

The Business Results Category examines your organization's performance
and improvement in key business areas---customer satisfaction, product
and service performance, financial, marketplace performance, mission
accomplishment, human resource results, supplier and partner results,
and operational performance. Also examined are performance levels
relative to competitors and/or similar organizations. Results should be
clearly linked to the overall performance goals and objectives.

Business Results provides a results focus that encompasses your
customer's evaluation of your organization's products and services, your
overall financial and market performance, and results of all key
processes and process improvement activities. Through this focus, the
Criteria's dual purposes---superior value of offerings as viewed by
customers and the public or marketplace, and superior organizational
performance reflected in your operational and financial indicators---are
maintained. Category 7 thus provides "real-time" information (measures
of progress) for evaluation and improvement of processes, products, and
services, aligned with your overall mission and business strategy. Item
4.2 calls for analysis of business results data and information to
determine your overall organizational performance.

Comparative data for measures in each Category Item might include agency
best, best performance of competitors or similar organizations, agency
average, and appropriate benchmarks from inside or outside of the
government.

**7.1 Customer-Focused Results  (125 pts.) \[Results\]**

Summarize your organization's customer-focused results, including
customer satisfaction and product and service performance results.
Segment your results by customer groups and market/program segments, as
appropriate. Include comparative data.

Provide data and information to answer the following questions:

**a. Customer-Focused Results**

\(1\) What are your current levels and trends in key measures and/or
indicators of customer satisfaction, dissatisfaction, and satisfaction
relative to competitors or similar organizations?

\(2\) What are your current levels and trends in key measures and/or
indicators of customer loyalty, positive referral, customer-perceived
value, and/or customer relationship building?

\(3\) What are your current levels and trends in key measures and/or
indicators of product and service performance?

[Notes]{.underline}:

N1. Customer satisfaction and dissatisfaction results reported in this
Item should relate to determination methods and data described in Item
3.2.

N2. Measures and/or indicators of customer satisfaction relative to
competitors and/or similar organizations/processes might include
objective information and data, such as customer-perceived value, from
customers and independent organizations.

N3. Measures of product/service performance that are important to
customers should be included in 7.1a(3). with comparative performance
data. These may also include overall program performance measures, and
customer-focused results relating to customer service standards,
customer surveys, and customer feedback.

N4. The combination of direct customer measures/indicators in 7.1a(1)
and 7.1a(2) with product and service performance measures/indicators in
7.1a(3) provides an opportunity to determine cause and effect
relationships between your product/service attributes and evidence of
customer satisfaction, loyalty, positive referral, etc.

N5. Item 7.1 should only include results of performance in satisfying
customers external to the applicant organization itself. Results of
performance in satisfying internal customers should be reported in other
items

For additional description of this Item, see page 58.

**7.2 Financial Performance Results  (50 pts.) \[Results\]**

Summarize your organization's key financial and marketplace performance
results, segmented by market and mission focus, as appropriate. Include
comparative data.

Provide data and information to answer the following questions:

**a. Financial Performance Results**

\(1\) What are your current levels and trends in key measures and/or
indicators of financial performance, including aggregate measures of
financial return and/or economic value?

\(2\) What are your current levels and trends in key measures and/or
indicators of marketplace performance and/or mission accomplishment,
including program impact, market share/position, business growth, and
new markets entered?

[Notes]{.underline}:

N1. Responses to 7.2a(1) might include aggregate financial measures such
as return on investment (ROI), measures of cost-benefit and cost
effectiveness, budget and resource utilization indicators, and other
fiscal responsibility, liquidity, and financial activity measures such
as asset utilization, operating margins, profitability, profitability by
market/customer segment, and value added per employee.

N2. For those organizations involved in market-type activities, key
results presented in response to 7.2a(2) are often measured in terms of
financial and market performance, as they are in private sector
commercial activities.

N3. Item 7.2 should include only top-level results showing aggregate
financial measures of overall organizational performance. These results
are typically captured in performance goals and planning documents. For
applicants whose strategic plans are part of a higher-level
organization's strategic plan, Item 7.2 might address: (a) top-level
results which contribute to achieving the parent organization's overall
financial goals, and/or (b) locally developed goals and objectives which
the (subordinate) applicant uses to guide and measure progress toward
attainment of its own measures of overall financial performance.

N4. Responses to 7.2 might include financial measures used to link
progress in meeting performance outcomes, and goals and objectives.

For additional description of this Item, see page 59.

**7.3 Human Resource Results   (75 pts.) \[Results\]**

Summarize your organization's human resource results, including employee
well being, satisfaction, development, and work system performance.
Segment your results by types and categories of employees, as
appropriate. Include comparative data.

*Provide data and information to answer the following questions:*

**a. Human Resource Results**

\(1\) What are your current levels and trends in key measures and/or
indicators of employee well being, satisfaction and dissatisfaction, and
development?

\(2\) What are your current levels and trends in key measures and/or
indicators of work system performance and effectiveness?

[Notes]{.underline}:

N1. The results reported in this Item should address results from
related activities described in Category 5. Your results should be
responsive to key process needs described in Category 6, and your
organization's action plans and related human resource plans described
in Item 2.2.

N2. For additional information regarding the appropriate measures of
employee well being and satisfaction, see Notes to Item 5.3. Measures
and/or indicators of employee development that contribute to work
performance effectiveness might include ratios of training levels to
performance improvements.

N3. The term work system in this context refers to measures of success
that address work and job performance, and those Areas in Category 5
which are not already addressed in Area 7.3a(1). Measures and/or
indicators of work system performance and effectiveness might include
job simplification, job rotation, work layout, and changing supervisory
ratios.

N4. For results reporting purposes, employees include the organization's
permanent, temporary, and part-time personnel, as well as any contract
employees supervised by the organization. Contract employees supervised
by a contractor should be addressed in Item 6.3 and results reported in
Item 7.4.

For additional description of this Item, see page 59.

**7.4 Supplier and Partner Results  (75 pts.) \[Results\]**

Summarize your organization's key supplier and partner results. Include
comparative data.

Provide data and information to answer the following question:

**a. Supplier and Partner Results**

What are your current levels and trends in key measures and/or
indicators of supplier and partner performance? Include your performance
and/or cost improvements resulting from supplier and partner performance
and performance management.

[Notes]{.underline}:

N1. Results reported here should relate directly to processes and
performance requirements described in Item 6.3.

For additional description of this Item, see page 60.

**7.5 Organizational Effectiveness Results  (75 pts.) \[Results\]**

Summarize your organization's key operational and in-process performance
results that contribute to the achievement of organizational
effectiveness. Include comparative data.

Provide data and information to answer the following questions:

**a. Organizational Effectiveness Results**

\(1\) What are your current levels and trends in key measures and/or
indicators of key design, production, delivery, and support process
performance? Include appropriate productivity, cycle time, in-process
and other measures of effectiveness and efficiency.

\(2\) What are your results for key measures and/or indicators of
regulatory/legal compliance and citizenship?

\(3\) What are your results for key measures and/or indicators of
accomplishment of organizational strategy?

[Notes]{.underline}:

N1. Results reported in Item 7.5 generally fall into two categories: (a)
those measures that gauge progress in meeting overall performance goals
and objectives which the organization uses to measure how well it is
doing, such as those described in the Organization Overview, and in
Items 1.1, 2.2, 6.1, and 6.2, and/or overall results reported in Items
7.1 and/or 7.2; and (b) those which stand alone and are key performance
measures, but are not reported in Items 7.1, 7.2, 7.3, or 7.4.

N2. Results reported in Item 7.5 should provide key information for
analysis (Item 4.2) and review (Item 1.1) of your organizational
operational performance and should provide the operational basis for
customer results (Item 7.1) and financial and marketplace performance
results (Item 7.2). Information presented here might be performance
indicators used in an organization's annual performance plan as internal
or intermediate measures of progress toward meeting overall performance
goals and objectives.

N3. Regulatory/legal compliance results reported in Item 7.5 should
address requirements described in Item 1.2.

For additional description of this Item, see page 61

**\
**

**7. Business Results DESCRIPTION**

**7.1 Customer-Focused Results**

**Purpose**

This Item addresses the results of most significance to assessing the
organization's customer-related performance---customer satisfaction,
customer dissatisfaction, customer satisfaction relative to competitors,
and product/service performance.

**Requirements**

You are asked to provide current levels, trends, and appropriate
comparisons for key measures and/or indicators of customer satisfaction,
dissatisfaction, and satisfaction relative to competitors or similar
organizations. You are asked to provide data and information on customer
loyalty (retention), positive referral, and customer-perceived value.

You also are asked to provide levels and trends in key measures and/or
indicators of product and service performance. Such results should be
for key drivers of your customers' satisfaction and retention.

**Comments**

• The Item focuses on the creation and use of all relevant data to
determine and help predict your organization's performance as viewed by
your customers. Relevant data and information include: (1) customer
satisfaction and dissatisfaction; (2) retention, gains, and losses of
customers and customer accounts; (3) positive customer referrals; (4)
customer complaints; (5) customer-perceived value based on quality and
price; and (6) awards, ratings, and recognition from customers and
independent organizations.

• The Item includes measures of product and service performance that
serve as indicators of customers' views and decision making relative to
future purchases and relationships. These measures of product and
service performance are derived from customer-related information
gathered in Items 3.1 and 3.2 ("listening posts")

• Product and service measures appropriate for inclusion might be based
upon the following: (1) internal (organizational) quality measurements;
(2) field performance; (3) data collected by or for your organization;
or (4) customer surveys on product and service performance. Data
appropriate for reporting include internal measurements and field
performance, and data collected by the organization or other
organizations through follow-ups for attributes that cannot be
accurately assessed through direct measurement (e.g., ease of use) or
when variability in customer expectations makes the customer's
perception the most meaningful indicator (e.g., courtesy).

• The correlation between product/service performance and customer
indicators is a critical management tool---defining and focusing on key
quality and customer requirements and for identifying product/service
differentiators in the marketplace or mission-driven environment. The
correlation might reveal emerging or changing business or mission
requirements, the changing importance of requirements, or even the
potential obsolescence of products and/or services.

**7.2 Financial Performance Results**

**Purpose**

This Item addresses your organization's financial and market results,
with the aim of understanding your marketplace challenges and
opportunities.

**Requirements**

You are asked to provide levels, trends, and appropriate comparisons for
key financial, market, and business indicators. Overall, these results
should provide a complete picture of your financial and marketplace
success and challenges.

**Comments**

• Measures reported in this Item are those usually tracked by senior
leadership on an ongoing basis to assess your organization's overall
financial performance.

• Appropriate measures of financial performance reported in Item 7.2a(1)
might include return on investment, fiscal stewardship, cost/benefit and
cost/effectiveness measures, and other appropriate financial activity
measures, and other liquidity and financial activity measures. Financial
performance could also include measures of value accruing to clientele
or mission in relation to budget levels, or aggregate value to the
government for levels of budget resources.

• Marketplace performance is intended primarily for those organizations
that operate in a marketplace environment. Responses could include
success in managing new products or services, business growth, new
products and geographic areas entered, and other key market-related
measures, as appropriate.

• Financial measures of mission accomplishment, including program impact
would normally include outcomes, goals and objectives which are used by
senior leaders to determine how well a program or activity is doing in
achieving its intended financial objectives. These might also include
measures useful to agency heads and other key stakeholders (Congress,
Office of Management and Budget, the executive branch, public interest
groups) in framing an assessment of a program or activity's financial
health.

**7.3 Human Resource Results**

**Purpose**

This Item addresses your organization's human resource results with the
aim of demonstrating how well your organization has been creating and
maintaining a positive, productive, learning, and caring work
environment.

**Requirements**

You are asked to provide current levels, trends, and appropriate
comparisons\
for key measures and/or indicators of employee well being, satisfaction,
dissatisfaction, and development.

You are also asked to provide data and information on your
organization's work system performance and effectiveness.

**Comments**

• Results reported could include generic or organization-specific
factors. Generic factors might include safety, absenteeism, turnover,
satisfaction, and complaints (grievances). For some measures, such as
absenteeism and turnover, local or regional comparisons are appropriate.

• Organization-specific factors are those you assess for determining
your employees' well-being and satisfaction. These factors might include
extent of training or cross training, or extent and success of
self-direction.

• Results of work system performance manifest in a set of indirect
outcomes in employee morale and improvements to mission support
performance.

**7.4 Supplier and Partner Results**

**Purpose**

This Item addresses your organization's supplier and partner results,
with the aims of demonstrating how well your organization ensures the
quality, delivery, and price of externally provided goods and services
and how your suppliers/partners contribute to your improved performance.

**Requirements**

You are asked to provide current levels, trends and appropriate
comparisons for key measures and/or indicators of supplier and partner
performance, including how their performance affects your improved
performance. You should emphasize your most critical requirements for
business success.

**Comments**

• Suppliers and partners, both private and public, provide "upstream"
and/or "downstream" materials and services. The focus should be on the
most critical requirements from the point of view of your
organization---the "buyer" or other direct recipient of the products and
services. Data reported should reflect results by whatever means they
occur---via improvements by suppliers and partners and/or through
selection of better performing suppliers and partners. Measures and
indicators of performance should relate to the principal factors
involved in your organization's purchases, e.g., quality, delivery, and
price.

• For purposes of this Item, providers of goods and services within your
parent organization, but not in your own organization, should be
included as suppliers or partners.

• Results reported also should reflect how suppliers and partners have
contributed to your organization's performance goals. These could
include quality levels, cost savings, total supply chain management
costs, reductions in waste, reductions in inventory, reductions in cycle
time and increases in productivity. Indicators of better connection and
communication, such as achieved via electronic commerce or data
exchanges, are appropriate for inclusion. Indicators of supplier and
partner performance improvement via external compliance, such as ISO
9000, also are appropriate for inclusion.

**7.5 Organizational Effectiveness Results**

**Purpose**

This Item examines your organization's other key operational performance
results, with the aim of achieving organizational effectiveness and key
organizational goals.

**Requirements**

You are asked to provide current levels, trends, and appropriate
comparisons for key measures and/or indicators of operational and
strategic performance that support the ongoing achievement of results
reported in Items 7.1 through 7.4.

You are also asked to provide data and information on your
organization's regulatory/legal compliance and citizenship.

**Comments**

• This Item addresses key performance results not covered in Items 7.1
through 7.4 that contribute significantly to your organization's
goals---customer satisfaction, product and service quality, operational
effectiveness, and financial/marketplace or mission-related performance.
The Item encourages the use of any unique measures the organization has
developed to track performance in areas important to the organization
not directly measured in previous Category 7 Items. Results should
reflect key process performance measures, including those that influence
customer satisfaction.

• Measures of productivity, resource utilization and operational
effectiveness in all key areas---product/service delivery areas and
support areas---are appropriate for inclusion. Results of compliance
with regulatory/legal requirements should be reported.

• Measures and/or indicators of operational effectiveness and efficiency
could include the following: (1) environmental improvements reflected in
emissions levels; (2) waste stream reductions, by-product use, and
recycling; (3) responsiveness indicators such as cycle time, lead times,
and setup times; (4) process assessment results such as customer
assessment or third-party assessment (such as ISO standards); and (5)
business-specific indicators such as innovation rates, innovation
effectiveness, cost reductions through innovation, time to market,
product/process yield, and complete and accurate shipments, and
indicators of strategic goal achievement.

• Results also should include indicators of support for key communities
and other public purposes.

III\. GENERAL APPLICATION INFORMATION AND INSTRUCTIONS

**Application Information**

**General Eligibility**

To apply to the Award Program, an organization must meet the following
conditions:

• be a part of the executive branch of the Federal Government;

• have no fewer than 100 full-time Federal employees;

• be autonomous, with its own defined mission; and

• provide products and/or services to customers outside its own
organization or be an administrative or support organization for a
Cabinet department or executive branch agency (as indicated in the
Agency Limitations subsection).

**Future Eligibility of Previous Award Recipients**

Guidelines for eligibility follow:

• An organization and any of its sub-components may not compete in the
President's Quality Award Program during the same year.

• Winners and their sub-components are not eligible to compete for the
same award for four subsequent years. For example, the Defense Contract
Management Command, Long Island, winner of the 1998 Presidential Award,
or any of its sub-components, may not compete again for the Presidential
Award until award year 2003.

• Winners of the Award for Quality Improvement and their sub-components
are not eligible to compete for the Award for Quality Improvement within
four years subsequent to receiving the Award, but they are eligible to
compete for the Presidential Award.

• A sub-component of a Presidential Award winner may compete for the
Award for Quality Improvement at any time.

**Agency Limitations**

Each Cabinet department and executive agency may submit a maximum number
of applications to the President's Quality Award Program, according to
its size:

-- Up to 20,000 employees---4 applications

-- Up to 50,000 employees---5 applications

-- Over 50,000 employees---6 applications

-- The Department of Defense may submit a maximum of 6 applications for
each service (Army, Navy, and Air Force), and a total of 6 additional
applications for the other Defense agencies.

A Cabinet department or executive agency may submit one application for
an administrative or support organization within its quota. The
application must cover an entire function, not just a branch or
division. For example, an application could be submitted for an entire
finance department, but not for any office that is part of that
department. An administrative organization is eligible only for the
Award for Quality Improvement.

These limits are set to encourage agencies to conduct internal reviews
and select the best nominations. The President's Quality Award Program
is not intended to substitute for internal agency organizational
assessments.

The Office of Personnel Management notifies applicants that do not
satisfy these requirements and their applications will not be evaluated.

**Evaluation Process**

Examiner teams from public and private sector organizations evaluate the
applications. Points are assigned to the written descriptions of each
Criteria Item, based on the scoring guidelines in Section V. Examiners
do not review applications from organizations within their own agency or
from organizations with which they have or have had a relationship.

**Final Selection**

A Panel of Judges, comprised of public and private sector
representatives, recommends winners for the Presidential Award for
Quality and the Award for Quality Improvement based on the evaluations
of the written applications and the results of site visits.

A standard of excellence is the ultimate criterion for selecting award
winners. The Judges are therefore not compelled to select winners in one
or both of the award categories.

**2001 Award Program Process and Time Frame**

**Step 1:\
**Application Distribution,\
April 2000

Applications are distributed to agencies. Applications may be obtained
from the Office of Personnel Management (OPM). Preliminary copies of the
Criteria were distributed in February 2000.

**Step 2:\
**Agencies Establish\
Internal Review Process, by July 2000

Each agency establishes its own internal review process. Due dates for
internal submissions are established by each agency.

**Step 3:\
**Application Submission

to Agency Coordinators,

July - September 2000

Organizations prepare eight copies of the application. Organizations
submit applications to an agency-designated central coordinator.

ORGANIZATIONS SELECTED FOR A SITE VISIT MUST SUBMIT EIGHT ADDITIONAL
APPLICATION COPIES TO OPM 1 WEEK FOLLOWING SELECTION.

**Step 4:\
**Application Submission

to OPM,\
Due: October 4, 2000

Completed applications are reviewed at the agency level before
submission to OPM. Applications are due to OPM on or before October 4,
2000.

**Step 5:\
**Application Review,\
October/November 2000

Applications are reviewed by OPM to meet eligibility requirements.
Following OPM's review, Examiner Teams meet to evaluate the merits of
each application. Organizations are selected for site visits based on
scoring of the application against the Criteria. Soon after the review,
organizations not selected for a site visit receive a feedback report
prepared by an Examiner Team.

**Step 6:\
**Site Visit Review,\
November 2000 - January 2001

Applicants selected for a site visit are contacted by OPM. Organizations
selected for site visits submit eight additional copies of their
application. Site visits clarify, verify, and supplement application
information. They include a review of pertinent records and data, and
interviews with executives and employees. Applicants work with a site
visit team leader to schedule the visit and arrange details.

Applicants cover Examiners' travel and per diem costs for the visit. The
exact number of Examiners depends on the size and number of sites of the
organization visited.

A report, prepared by the site visit Examiner Team, is submitted to the
Panel of Judges.

**Step 7:\
**Judges' Final Review,

February 2001

The Panel of Judges conducts final reviews and presents award recipient
recommendations to OPM. The President makes final determination of the
organization(s) to receive the Presidential Award for Quality. OPM makes
final determination of the organization(s) to receive other awards.

**Annual President's**

**Quality Award Program**

**Ceremony,\
**Summer 2001

Awards are presented at a special ceremony held in Washington, DC.
Recipients of the Presidential Award for Quality and the Award for
Quality Improvement receive special recognition for their outstanding
accomplishments. Site-visited organizations may be recognized for their
achievements at the ceremony.

**Feedback Reports,\
**Reports Distributed,\
December 2000 - April 2001

Applicants receive a feedback report after it is determined they will
not move to the next step of the Award process.

Feedback reports contain comments on strengths and opportunities for
improvement. A report is prepared for each eligible applicant and sent
to the head of the applicant organization.

All feedback reports are prepared for organizations based on the
applicants' responses to the Award Criteria.

Reports for site-visited organizations are prepared by the Examiner Team
that conducted the visit with input from the Panel of Judges.

**Award Recipients' Responsibilities**

Organizations recognized by the President's Quality Award Program
demonstrate meaningful results through the use of quality management
principles and practices and continuously improve their performance and
future capabilities. Award recipients serve as government models of
excellence. They demonstrate a commitment to and responsibility for
improving their systems and processes to provide quality products and
services to customers.

Each Award recipient is asked to:

• Participate in: (1) the conference where the PQA award winners are
recognized, (2) forums on Federal quality held throughout the year, and
(3) at other educational programs on performance improvement;

• Coordinate activities and develop products associated with the Award
Program Ceremony;

• Host site visits for interested groups; and

• Respond to inquiries and requests for information from interested
parties on performance improvement efforts.

**Costs**

Applicants cover the cost of application preparation. Applicants
selected for site visits cover all travel and per diem expenses of all
Examiner Team members. Award recipients cover all travel costs to and
from the conferences and forums.

**Application Instructions**

**General Directions**

To apply for the President's Quality Award Program, please:

1\) Complete the Nomination Form found in Section X;

2\) Prepare an Organization Overview. Specific guidance and instructions
are provided on pages 70-72.

3\) Prepare a written application that addresses the questions
associated with the 19 Criteria Items found in Section II. The Items are
fully described in Section II immediately following the category
criteria. Specific guidance for responding to each Item is described on
pages 72-78.

4\) Make the application stand on its own by:

• Responding to all questions for each Area to Address;

• Assuming the Examiners reviewing the document have no prior knowledge
about the organization;

• Developing concise responses that are quantitative, where possible;

• Supporting response statements with facts and information. Assertions
unsupported by plausible data, information, or facts receive no credit
during the application evaluation; and

• Defining terminology specific to the mission and function of the
organization. If acronyms are used, define them and provide a glossary.
Glossary pages are not counted in the page limits specified below.

**Application Format and Guidelines**

The Organization Overview must be limited to six pages. These pages are
not counted in the overall page limits specified below.

An organization with fewer than 20,000 employees should prepare an
application of no more than 50 pages, including all illustrative
attachments (charts, graphs, quality vision statement, etc.). An
organization with 20,000 or more employees should prepare an application
of no more than 60 pages, including attachments. Pages in excess of the
50 or 60-page limit will not be examined.

It is suggested that applicants prepare the Organization Overview first,
and use it as a guide to write and review the written application
addressing each of the 19 Criteria Items.

**Guidelines for Submitting Applications**

• Submit eight copies of the completed application package. Each copy
must include a nomination form.

• Print or type applications using 12 point font/typeface or larger.
Applications in smaller fonts or typefaces will not be read.

• Use 9-point font/typeface or larger for all graphs and charts. To
accomplish this, some graphs and charts may need to be created in larger
font sizes and reduced to 9-point font. This guideline ensures that
Examiners can read all charts and graphs. Applicants will not get credit
for information presented in graphs and charts too small to be read.

• Label each Criteria Item sub-element (e.g., 1.1a., 1.2b.) separately
before preparing the Item response.

• Conveniently package the application (e.g., staple or spiral bind). Do
not submit bulky, hard-to-transport documents. Applications submitted in
three-ring binders or comparably bulky formats will not be examined. Do
not use multi-color print or glossy paper.

**Role of Examiners and Judges**

The Examiners and Judges are customers in the application review
process. The above guidelines are based on feedback gathered directly
from them. As suppliers in the application review process, applicants
should strive to satisfy the customers' needs. By doing so, Examiners
are able to produce a more comprehensive feedback report that accurately
reflects the applicant's status in relation to the Criteria.

**Agency Coordinator and Contact Point**

Each agency should designate a central coordinator responsible for
serving as an internal contact point and for submitting applications to
OPM. The coordinator assures that: (1) the quota for submissions
previously outlined is observed, (2) application packages are
appropriately prepared and bound, and (3) all applicants meet
eligibility requirements.

Agency submissions are sent to OPM as a package. Applicants should
contact OPM if they do not know their agency's current coordinator and
contact point.

**OPM Contact Point and Submission of Applications**

For further information on eligibility requirements, application
procedures and the Award Criteria, please contact:

U.S. Office of Personnel Management\
Glenda Avolio\
President's Quality Award Program Telephone: (202) 606-2034\
1900 E Street, NW Room 6468 FAX: (202) 606-0919\
Washington, DC 20415-5200 E-mail: gxavolio@opm.gov\
\
To apply, applicants should send eight copies of the complete
application package (including nomination form) to their agency contact
point. The agency contact will submit applications to the above address.

Applicants selected for site visits will be asked to submit eight
additional copies of the application to OPM immediately following
notification of selection.

**Applicant Submission Date**

The Office of Personnel Management must receive applications by October
4, 2000. OPM will review each application to verify eligibility.
Applications received after this date are not eligible for the 2001
President's Quality Award Program.

**IV. PREPARING AN APPLICATION PACKAGE**

**A. Prepare the Organization Overview**

To develop an application, applicants should begin by preparing the
Organization Overview. The Overview provides a background and
description of the key elements most important to the organization's
mission and business. The Organization Overview is limited to 6 pages
that are not counted in the overall application page limit.

The Organization Overview is critically important because:

• It sets the stage for the application review.

• It helps the Examiners understand the following factors that
significantly influence how the application is evaluated, and
ultimately, how it is scored:

> \(1\) what is relevant and important to the applicant's mission and
> function,
>
> \(2\) key factors influencing how the organization operates, and
>
> \(3\) the organization's future direction.

• Examiner team members use the Organization Overview in all stages of
the review, including the site visit. The Overview is particularly
important when reviewing the applicant's Business Results (Category 7).
The Examiner team reviews Business Results Items in relation to the
applicant's overall mission and operation. To help the Examiner team
make the assessment, they review the results relative to the factors
reported in the Organization Overview. Scoring of Results Items relies
heavily on how and if the Items are linked to the areas of importance
identified in the Organization Overview.

**It is strongly recommended that the Organization Overview be prepared
first and then used as a guide in self-assessment and in writing and
reviewing a President's Quality Award application.**

**Guidelines for Preparing the Organization Overview**

The Organization Overview contains five elements:

***1. Basic Organization Description***

Applicants should provide the following information about the
organization:

> • its mission, products, and services;
>
> • its key processes and measures;
>
> • the organization's culture; its purpose, vision, mission, and values
> as appropriate;
>
> • its size, location and profile of employees, including number,
> types, educational levels, bargaining units, and safety requirements;
>
> • its major markets or mission/service areas (local, regional,
> national, or international);
>
> • chart depicting current organizational structure;
>
> • major equipment, facilities and technology used; and

• brief history of when and how quality principles and tools have
been/are used to improve organizational performance.

If your organization is a subunit of a larger organization, describe:

• the organizational relationship to your "parent" and percent of
employees the subunit represents;

> • how products and services relate to those of your "parent" and other
> units of the "parent" organization, and;
>
> • key support services, if any, that your "parent" organization
> provides.

***2. Principal Factors Determining Performance Success***

Applicants should provide the following information:

> • important performance factors such as regulatory clarification,
> reduction or simplification, product innovation, cost reduction,
> technology, productivity or other changes taking place in the
> organization affecting program success; and
>
> • explanation and illustration of how these factors influence
> organizational success elsewhere in the application, particularly
> Category 7, Business Results.

***3. Customer Requirements***

Applicants should provide the following information:

> • list of principal customers and their category (voluntary, entitled,
> compelled) where appropriate, and principal customer types (consumers,
> other government agencies, etc.). Note any special relationships, such
> as partnerships with customers or customer groups;
>
> • key customer requirements for major products and services (e.g.,
> on‑time delivery, defect rates, etc.); and
>
> • description of significant differences, if any, in requirements
> among customer groups.

***4. Supplier and Partnering Relationships***

Applicants should provide the following information:

> • types and numbers of principal suppliers and partners;
>
> • the most important types of suppliers, dealers and other businesses;
> and
>
> • any limitations or special requirements that may exist in dealing
> with some or all suppliers and partners.

***5. Other Strategic Factors Important to the Applicant***

Applicants should provide the following information:

> • competitive factors, if applicable, such as the organization's
> position (size) in the industry, numbers and types of competitors, and
> principal factors determining competitive success;
>
> • major new thrusts or future challenges;
>
> • introduction of new technologies;
>
> • laws or regulations significantly affecting operations; and
>
> • new organizational alliances/partners.

**B. 2001 Criteria Response Guidelines**

The guidelines given in this section are offered to assist you, as a
Criteria user, in responding most effectively to the requirements of the
19 Criteria Items. Writing an application for the President's Quality
Award involves responding to these requirements in 50 or fewer pages if
your organization has fewer than 20,000 employees. If your organization
has more than 20,000 employees, an application of no more than 60 pages
will be accepted.

The guidelines are presented in three parts:

> \(1\) General Guidelines regarding the application package, including
> how the Items are formatted;
>
> \(2\) Guidelines for Responding to Approach/Deployment Items; and
>
> \(3\) Guidelines for Responding to Results Items.

**(1) General Guidelines**

**Read the entire Application package.**

The main sections of the package provide an overall orientation to the
Criteria, including how applicants' responses are to be evaluated for
self-assessment or by Award Examiners. Applicants should be thoroughly
familiar with the following sections:

• Performance Excellence Criteria and Descriptions---Section II

• Scoring System and Guidelines---Section V

• Glossary of Key Terms---Section IX

**Review the Criteria Item Format**

The Criteria Item format (see the Item Format figure) shows the
different parts of Items, what each part is for, and where each part is
placed. It is especially important to understand the Areas to Address
and the Item Notes. All Items for each category are described in Section
II \[Description\].

Each Item is classified either \[Approach-Deployment\] or \[Results\],
depending on the type of information required. The meaning of these
classification symbols is given on page 80. Guidelines for responding to
Approach/Deployment Items are given on pages 73-76. Guidelines for
responding to Results Items are given on pages 76-78.

Item requirements are presented in question format, sometimes with
modifying statements. Item responses should contain answers to all
questions and modifying statements, however, each question need not be
answered separately. Responses to multiple questions within a single
Area to Address may be grouped, if appropriate. Ensure the Basic Item
Purpose is completely addressed within your response.

**(2) Guidelines for Responding to Approach/Deployment Items**

The Award Criteria focus on performance results (Category 7.) However,
results by themselves offer little diagnostic value. For example, if
results are poor in some areas or improving at rates slower than other
similar programs, it is important to understand why this is so and what
might be done to accelerate improvement. Approach/Deployment Items
permit diagnosis of the applicant's most important systems, activities
and processes---those that offer the greatest potential for contributing
to the applicant's performance results. Examiners' diagnosis and
feedback depend heavily upon the content and completeness of
Approach/Deployment Item responses. For this reason, it is important to
provide key process information in Approach/Deployment Item responses.
Guidelines for organizing such information follow.

***1. Understand the meaning of "how."***

> Responses to Items that begin with the word "how" should outline key
> process information such as methods used, measures of progress and
> assessment, how the approach is deployed, and evaluation/improvement
> factors. These responses should be designed to permit the reader to
> gain an understanding of the key operating factors of the
> approach---that is, how it functions on a continuing, systematic and
> day‑to‑day basis. Responses lacking such information, or merely
> providing examples, are referred to in the Scoring Guidelines as
> anecdotal information.

***2. Write response(s) with the following guidelines in mind:***

> • Show focus and consistency
>
> Responses should provide clear evidence that the organization is
> focusing on key processes (those that have the greatest impact on
> performance of the organization's mission) and improvements that offer
> the greatest potential to improve performance.
>
> There are four areas where focus and consistency are critical and
> should be evident:
>
> \(1\) the Organization Overview should clearly state what is important
> to the organization;
>
> \(2\) the Strategic Planning Category, including strategy and action
> plans, should highlight the areas of greatest focus and describe how
> deployment is accomplished;
>
> \(3\) descriptions of organization‑level analysis (Item 4.2) should
> show how the organization analyzes performance information to set
> priorities; and
>
> \(4\) the Process Management Category should highlight product,
> service, support, and supplier processes that are key to overall
> performance.

When describing activities in the Approach-Deployment Items, focus and
consistency should be demonstrated with accompanying results in Category
7.

• Describe **what** the key processes are and **how** they work

> It is important to give basic information about what the
> organization's key processes are, how they work and who is responsible
> for them. However, it is not sufficient to merely state who is
> responsible for a given process, i.e., "customer satisfaction data are
> analyzed by the Customer Service Division." The application should
> describe when, how and by whom the data are analyzed and what is done
> with the information so that the reader understands the mechanics of
> how the process is carried out.

• Show that activities are systematic

> Systematic approaches are carried out continuously over time, with
> built‑in cycles for improvement. Responses should describe the
> "system". Systematic approaches over time permit continuous learning,
> improvement, and maturity. Examples or anecdotal accounts are
> considered insufficient responses.

• Show deployment

> Responses should provide information to clearly indicate the extent to
> which approaches are deployed to appropriate units within the
> organization. If information is provided regarding an activity or
> approach in only one part of the organization, evaluators will assume
> it is isolated to that unit.
>
> An effective technique to show deployment compactly is the use of
> summary tables that outline what is accomplished in different parts of
> the organization. Where tables are used, they should be supported by a
> summary of the basic approach in the accompanying narrative.

• Respond fully to Item requirements

> Responses should include information on all questions in each Area to
> Address as well as completely address the Basic Item Purpose. Missing
> information will be interpreted as a gap in approach and/or
> deployment.

***3. Show that Items are systematically related to one another.***

> It is important to realize that each of the seven categories is viewed
> as a linked system and not separate compartments. Approach/Deployment
> Items should reflect an overall and integrated management system
> rather than isolated processes. Accordingly, responses should indicate
> how Approach/Deployment Items reinforce and support other closely
> linked Items, where appropriate. (Refer to the notes under each
> Criteria Item for key linkages.)

***4. Cross‑reference when appropriate.***

> While all Items are potentially linked, applicants should try to make
> each Item response self‑contained. However, there may be instances
> when responses to different Items are mutually reinforcing. It is then
> appropriate to reference responses to other Items, rather than to
> repeat information. In such cases, applicants should use designators
> (e.g., "see 2.3a below").

***5. Use a compact format.***

> Applicants should make the best use of the 50 or 60 pages permitted.
> Applicants are encouraged to use flow charts, tables, and "bulleted"
> presentation of information.

***6. Refer to the Scoring Guidelines***

> Criteria Item responses are evaluated by reviewing the Item
> requirements and the maturity of the approaches, breadth of
> deployment, and improvement process strength relative to the Scoring
> Guidelines. Therefore, Criteria users need to consider both the
> Criteria and the Scoring Guidelines.

**(3) Guidelines for Responding to Results Items**

The Criteria places the greatest emphasis on results. The following
information and guidelines relate to effective and complete presentation
of results.

***1. Focus on the most critical business results.***

> Results reported should cover the most important requirements for
> business success. These requirements and key processes are highlighted
> in the Organization Overview and the Strategic Planning Category.

***2. Show relation between Results and Approach/Deployment Items.***

> The most meaningful Results are those which are the consequence of
> systematic approaches to meeting important goals and objectives rather
> than isolated or ad hoc accomplishments. Accordingly, the application
> should demonstrate a clear linkage between Results and
> Approach/Deployment Items reported elsewhere in the application. These
> linkages should suggest a cause‑effect relationship between
> Approach/Deployment Items and reported Results, either directly or
> indirectly.

***3. Use the following guidelines to ensure effective reporting of
results data:***

> • Trends are used to show directions of results and rates of change.
>
> • Performance levels show performance on some meaningful measurement
> scale.
>
> • Breadth of results should show that all important results are
> included.
>
> • Comparisons are used to show how results compare with other
> appropriately selected organizations.

***4. Include trend data covering actual periods for tracking trends.***

> Trend data should be provided whenever appropriate and possible.
> However, because of the importance of showing focus and deployment,
> new data should be included even if trends and comparisons are not yet
> well established. No minimum time is specified for trend data. Time
> periods might span five years or more for some results.

***5. Use a compact format - graphs and tables.***

> Make every effort to provide key information in a concise and compact
> form. One way to accomplish this is by using graphs and tables. Label
> graphs and tables for easy interpretation. Results over time or
> compared with others should be "normalized"---presented in a way (such
> as use of ratios) that takes into account various size factors. For
> example, if an organization's work force has been declining, reporting
> safety results in terms of accidents per 100 employees would permit
> more meaningful trend data than total accidents.

***6. Integrate results into the body of the text.***

> When the response uses graphs or tables, describe the results in the
> body of the text in summary form. Present the text close to the
> graphical or table information. Use figure numbers that correspond to
> Item numbers. For example, the third table providing information for
> Item 6.1 might be captioned Table 6.1‑3.

Insert chart graphic here

> The chart above illustrates data an applicant might present as part of
> a response to Item 7.5, Organizational Effectiveness Results. A major
> function of the applicant is processing applications for licenses
> under the jurisdiction of the applicant's regulatory authority. In the
> Organization Overview and in Item 3.1, the applicant has indicated
> that consistent processing of applications for licenses within the
> target time frame is a key customer requirement.
>
> Using the chart, the following characteristics of clear and effective
> data reporting are illustrated:
>
> • The chart is labeled with a figure number and title.
>
> • Both axes and units of measure are clearly labeled.
>
> • Trend lines report data for one key operational
> requirement---processing of applications within target time frame.
>
> • Results are presented for several years.
>
> • Appropriate comparisons are clearly shown.
>
> • The organization shows, using a single chart, that its three major
> types of services (three types of applications) are separately tracked
> for on‑time processing.

To help interpret the Scoring Guidelines (page 82), the following
comments on the charted results would be appropriate:

> • The current overall organization performance level is excellent
> compared with that of another President's Quality Award Program
> Award‑winning Government organization with similar application
> processing functions against which the applicant has chosen to compare
> itself.
>
> • The organization shows excellent improvement trends.
>
> • The organization's performance with Type A applications is clearly
> superior---showing sustained high performance and a slightly positive
> trend. The performance for Type B applications, while lagging that of
> Type A, shows rapid improvement, and already is near the performance
> of the high‑performing comparable organization.
>
> • Processing of Type C applications---a new responsibility of the
> organization---is having early problems. In its Award Program
> application, the organization has analyzed and explained these early
> problems, and explained actions it is taking to improve performance.

**V. Scoring System and Guidelines**

**Scoring System**

The system for scoring applicant responses to Criteria Items (Items) and
for developing feedback is based upon three evaluation dimensions: (1)
Approach, (2) Deployment, and (3) Results. Criteria users need to
furnish information relating to all three of these dimensions. Specific
factors associated with the evaluation dimensions are described below.

***Approach***

"Approach" refers to how you address the Item requirements---the
method(s) used. The factors used to evaluate approaches include:

• appropriateness of the methods to the requirements;

• effectiveness of use of methods;

• degree to which approach is systematic, integrated, consistently
applied;

• degree to which approach embodies evaluation, improvement, and
learning cycles;

• degree to which approach is based upon objective, reliable
data/information;

• degree to which approach is prevention based;

• alignment with organizational needs; and

• evidence of innovation, including significant and effective
adaptations of approaches used in other types of applications.

##### Deployment

"Deployment" refers to the extent to which the approach is applied to
all requirements of the Item. The factors used to evaluate deployment
include:

• use of the approach in addressing operational and Item requirements;

• application of the approach to all business products/services,
transactions with\
customers and suppliers, and support functions/processes; and

• use of the approach by all appropriate work units.

##### Results

"Results" refers to outcomes in achieving the purposes in the Item. The
factors used to evaluate results include:

• current performance levels;

• performance levels relative to appropriate comparisons and/or
benchmarks;

• rate, breadth and importance of performance improvements;

• demonstration of sustained improvement and/or high‑level performance;
and

• linkage of results measures to key customer, market, mission, process
and action plan performance requirements identified in the Organization
Overview and in Approach/Deployment Items.

##### Item Classification and Scoring Dimensions

Criteria Items are classified according to the kinds of information
and/or data applicants are expected to furnish.

The two types of Items and their designations are:

1\. Approach/Deployment \[Approach-Deployment\]

2\. Results \[Results\]

Approach and Deployment are linked to emphasize that descriptions of
Approach should always indicate Deployment consistent with the specific
requirements of the Item. Although Approach and Deployment dimensions
are linked, feedback to the applicant reflects strengths and/or areas
for improvement in either or both dimensions.

Results Items depend on data demonstrating performance levels and trends
on key measures and/or indicators of organizational performance. Results
Items also call for data on breadth of performance improvements---how
widespread your improvement results are. This is directly related to the
Deployment dimension. That is, if improvement processes are widely
deployed, there should be corresponding results. A score for a Results
Item is thus a composite based upon overall performance, taking into
account the breadth and importance of improvements.

***"Relevance and Importance" as a Scoring Factor***

The three evaluation dimensions described above (Approach, Deployment,
and Results) are critical to assessment and feedback. However,
evaluation and feedback will also consider the relevance and importance
of your reported Approach, Deployment, and Results to your key business
factors. The areas of greatest importance should be addressed in the
Organization Overview and are a primary focus of Items related to the
organization's customers and final products and services, such as Items
2.1, 2.2, 3.1, 6.1, 7.1, and 7.5. Your key customer requirements and key
strategic drivers and action plans are particularly important.

Results presented in the application must be important to the
organization in order to have a significant impact on the score.
Guidelines for scoring Results Items are found in the Scoring Guidelines
Summary (page 82). Applicants should make sure that important areas
described in the Organization Overview have related performance
indicators which are reported in Category 7. Applications should show
linkages between results in Category 7 and in other Category elements
such as key customer requirements and process management.

##### Assignment of Scores to Criteria Responses

President's Quality Award Program Examiners observe the following
guidelines when assigning scores to applicants' responses:

•  All relevant Areas to Address should be included in the Item
response. Also, responses should reflect what is relevant and important
to the organization's operations and mission.

•  Before assigning a score to an Item, Examiners first review the Item
in relation to the Organization Overview to determine what is important
to the applicant organization and its strategic directions. Examiners
look for linkages among Items, especially between Results and
Approach/Deployment Items in order to assure that the Item reflects a
systematic approach to performance excellence.

•  In assigning a score to an Item, an Examiner first decides which
scoring range (e.g., 50% to 60%) best fits the overall Item response.
Overall "best fit" does not require total agreement with each of the
statements for that scoring range. Actual score within the range depends
upon an Examiner's judgment of the closeness of the Item response in
relation to the statements in the next higher and next lower scoring
ranges.

•  An Approach/Deployment Item score of 50% represents an approach that
meets the basic objectives of the Item and that is deployed to the
principal activities and work units covered in the Item. Higher scores
reflect maturity (cycles of improvement), integration, and broader
deployment.

•  A Results Item score of 50% represents clear indication of
improvement trends and/or good levels of performance in the principal
results areas covered in the Item. Higher scores reflect better
improvement rates and comparative performance as well as broader
coverage of key business or mission requirements.

###### Scoring Guidelines

**Score Approach/Deployment**

0% •  No systematic approach evident; anecdotal information

10% to 20% •  Beginning of a systematic approach to the basic purposes
of the Item

•  Major gaps exist in deployment that would inhibit progress in
achieving the primary purposes of the Item

•  Early stages of a transition from reacting to problems to a general
improvement orientation

30% to 40% •  An effective, systematic approach, responsive to the basic
purposes of the Item

•  Approach is deployed in most of the organization's key business
areas, although some areas or work units are in early stages of
deployment

•  Beginning of a systematic approach to evaluation and improvement of
basic Item processes

50% to 60% •  An effective, systematic approach, responsive to the
overall purposes of the Item

•  Approach is well deployed in all aspects of the organization's key
business, although deployment may vary in some areas or work units

•  A fact‑based, systematic evaluation and improvement process is in
place for basic Item processes

•  Approach is aligned with basic organizational needs identified in the
other Criteria Categories

70% to 80% •  An effective, systematic approach, responsive to the
overall Item purpose and to most of the specific requirements of the
Item

•  Approach is well deployed throughout the organization, with no
significant gaps

•  A fact‑based, systematic evaluation and improvement process and
organizational learning/sharing are key management tools; clear evidence
of refinement and improved integration as a result of
organizational-level analysis and sharing

•  Approach is well integrated with organizational needs identified in
the other Criteria Categories

90% to 100% •  An effective, systematic approach, fully responsive to
all the requirements of the Item

•  Approach is fully deployed without significant weaknesses or gaps in
any areas or work units

•  A very strong, fact‑based, systematic evaluation and improvement
process and extensive organizational learning/sharing are key management
tools; strong refinement and integration, backed by excellent
organizational-level analysis and sharing

•  Approach is fully integrated with organizational needs identified in
the other Criteria Categories

**Score Results**

0% •  No results or poor results in areas reported

10% to 20% •  Some improvements and/or early good performance levels in
a few areas

•  Results not reported for many to most areas of importance to the
organization's key business requirements

•  Favorable results reported, but not those which are most important to
the organization's key business and performance requirements

30% to 40% •  Improvements and/or early good performance levels in many
areas of importance to the organization's key business requirements

•  Early stages of developing trends and obtaining comparative
information

•  Results reported for many to most areas of importance to the
organization's key business requirements

50% to 60% •  Improvement trends and/or good performance levels reported
for most areas of importance to the organization's key business
requirements

•  No pattern of adverse trends and no poor performance levels in areas
of importance to the organization's key business requirements

•  Some trends and/or current performance levels---evaluated against
relevant comparisons and/or benchmarks---show areas of strength and/or
good to very good relative performance levels

•  Business results address most key customer, market, process, and
action plan requirements

70% to 80% •  Current performance is good to excellent in most areas of
importance to the organization's key business requirements

•  Most improvement trends and/or performance levels are sustained

•  Many to most trends and/or performance levels---evaluated against
relevant comparisons and/or benchmarks---show areas of leadership and
very good relative performance levels

•  Business results address most key customer, market, process, and
action plan requirements

90% to 100% •  Current performance is excellent in most areas of
importance to the organization's key business requirements

•  Excellent improvement trends and/or sustained excellent performance
levels in most areas

•  Evidence of agency and benchmark leadership demonstrated in many
areas

•  Business results fully address key customer, market, process, and
action plan requirements

Note 1: To better understand the key terms such as "basic purpose" and
"specific requirements" of the Item, see Item Format model on page 73.

Note 2: The "score" column indicates a scoring range---Individual
examiners normally score applications using multiples of 10. Those
individual scores are then averaged with other team members scores to
determine the item score (i.e., average of 20%, 30% & 30% = 26.6%).

VI\. Using the Performance Excellence Criteria for Organization
Self-Assessment

**Introduction**

Self-assessment is an internal tool used to quantify the overall health
of an organization. Effective use of a self assessment allows
organizations to identify strengths and pinpoint opportunities to
improve processes, practices and programs. Through continuous
self-assessment, organizations can review, prioritize and select the
best approaches for getting results. Additionally, the self assessment
process can be used to prepare organizations to apply for the
President's Quality Award.

Many organizations follow a four-step approach to systematically improve
performance: the "plan, do, check, and act" process. By completing a
self-assessment, the "check" element of the process, organizations can
baseline their performance. This baseline enables organizations to
identify gaps in their performance plan, and track progress toward
filling the gaps and reaching positive performance outcomes.

**Linking Self-Assessment to the Government Performance and Results
Act**

The 103rd United States Congress enacted the Government Performance and
Results Act of 1993 to provide for the establishment of strategic
planning and performance measurement in the Federal Government.

The Results Act requires agencies to submit a strategic plan for program
activities containing a comprehensive mission statement covering the
major functions and agency operations. Further, the Act requires
agencies to prepare an annual performance plan which has measurable
goals. The performance plan must be evaluated against objective
measurements and through systematic process analysis.

While the Results Act requires agencies to assess their performance, the
manner in which assessments are performed is not prescribed. By using
the Award Program's Performance Excellence Criteria for self-assessment,
agencies have a well developed, comprehensive framework for evaluating
performance.

**The Benefits of Using the Criteria for Self-Assessment**

Currently, many organizations use the Award Program's Criteria for
self-assessment, but do not apply to the Program. Since the Criteria
define key elements of high-performing organizations, using the Criteria
for an internal organization review has many benefits:

• You can gain a systematic and informed assessment of how well your
organization currently performs, and how well it stacks up against the
Criteria and other high-performing organizations.

• You can identify key operating processes, set measurable performance
goals and track progress toward meeting the goals---a Results Act
requirement.

• The Criteria provide you with a tool for establishing and fine tuning
organization performance measures against which you can review your
results in customer service, effective stewardship of public resources,
human resources, suppliers and partnership management, and other
organization elements.

• The internal review helps identify commonly shared views of the
organization's strengths and improvement opportunities and take action
on those opportunities most important to the organization.

• The review generates discussion topics that start a dialogue between
managers and employees on improving internal operations, both short- and
long-term.

Organizations are encouraged to use the Award Program's Criteria for
self-assessment to continuously improve their performance.

**VII. 2001 PRESIDENT'S QUALITY AWARD PROGRAM SUMMARY OF CHANGES**

**General Program Changes**

The Criteria have evolved over the last several years toward
comprehensive coverage of strategy‑driven performance, addressing the
needs of all stakeholders---customers, employees, suppliers and
partners, the Congress, special interest groups, and the public.
Although there are no changes to the Criteria Item requirements for
2001, revisions have been made in other important sections of the
President's Quality Award Program Information and Application booklet.

The President's Quality Award Program continues to reflect the evolving
standards of the Malcolm Baldrige National Quality Award (MBNQA) with
modifications to reflect a Federal Government environment.

Changes have been made throughout the Program's Information and
Application booklet; the most significant changes are summarized below:

• The Core Values and Concepts have been revised.

• Sections II and III of the 2000 Program booklet (Performance
Excellence Criteria and Category, Item and Area Descriptions) have been
combined into one Section. The category and item descriptions for each
category now immediately follow the criteria for that category.

• The Category and Item Descriptions have been rewritten and
reformatted.

• The guidelines for Preparing an Application Package have been
rearranged placing the guidance for preparing the Organizational
Overview first to highlight the critical importance of the overview in
setting the stage for the entire application.

• The Scoring Guidelines have been revised for Approach/Deployment
Items.

• The Glossary of Key Terms has been revised and expanded.

A more detailed explanation of the most significant changes are:

##### Core Values and Concepts

• Many of the Core Values and Concepts have been changed to better align
with the foundation for the current Criteria. The number of Core Values
and Concepts remains constant at 11.

• The following Core Values and Concepts have replaced the indicated
Core Values and Concepts: Visionary Leadership replaces Leadership;
Customer Driven replaces Customer-Driven Quality; Organizational and
Personal Learning replaces Continuous Improvement and Learning; Valuing
Employees and Partners replaces Valuing Employees; Agility replaces Fast
Response; Focus on the Future replaces Long-Range View of the Future;
and Focus on Results and Creating Value replaces Results Focus. The new
Core Values and Concepts are intended to provide a more holistic and
current view of organizational performance excellence.

• Two of the 2000 Core Values and Concepts---Design Quality, and
Prevention and Partnership Development---have been incorporated into the
new Core Values and Concepts.

• Two new Core Values and Concepts have been added to underpin the
current Criteria: Managing for Innovation and Systems Perspective.

• Two 2000 Core Values and Concepts remain: Management by Fact and
Public Responsibility and Citizenship.

##### Category and Item Descriptions

• Each Item Description now has three parts: Purpose, Requirements, and
Comments. This three-part presentation is intended to better aid the
understanding of the Criteria Items. Purpose tells you what the Item is
examining and why. Requirements summarizes the key Item requirements.
Comments provides additional explanation and examples of how you might
address the Item requirements.

##### Scoring Guidelines

• The word effective replaces the word sound for Approach/Deployment
Items in the Scoring Guidelines. Effective relates to producing the
desired result and to appropriateness for intended use. Effective is a
better term in the context of a President's Quality Award assessment.

##### Glossary of Key Terms

• The following key terms have been added to the Glossary: Analysis,
Approach, Deployment, Empowerment, Results, Systematic, and Value. All
of these terms have very specific meanings in the Criteria.

##### Overall Changes

• 2001 Performance Excellence Criteria users are cautioned that changes
in wording have been made in some Items, many Item Notes, the Scoring
Guidelines, and key terms. These changes help clarify how the Criteria
can be better used for the award process and self‑assessment.

**VIII. Guidance for Government Health Care Organizations and Education
Institutions**

In 1998, the Malcolm Baldrige National Quality Award (MBNQA) Program
added award categories for health care organizations and education
institutions. The Program developed specialized sets of Performance
Excellence Criteria to recognize the unique aspects and environments of
health-related and educational organizations. These new categories were
established under the "Technology Administration Act of 1998,"
authorizing non-profit and for-profit education and health care
organizations to apply for the MBNQA.

The President's Quality Award Program will continue to develop one set
of Criteria that applies to Federal Government organizations with all
mission types. However, since the MBNQA created a special set of
Criteria for organizations with health care and education-related
missions, Federal Government organizations with these missions may apply
to either the President's Quality Award Program or the MBNQA.

We encourage Federal organizations in health care and education-related
missions to review the MBNQA Criteria and use them for self-assessment,
performance improvement, and as a reference and guide when applying to
the President's Quality Award Program. The Criteria are available from
the MBNQA by calling (301) 975-2036, or through the Program's web site:
http://www.quality.nist.gov.

**Federal health care organizations and education institutions applying
to this year's Award Program should use the Performance Excellence
Criteria found in this application package. However, to more effectively
respond to the Criteria, organizations may wish to use the following
Category descriptions and supplemental Category Item Notes as additional
guidance.**

###### Health Care Supplementary Information

**Category 1---Leadership**

This Category examines how health care organization senior leaders
address values and performance expectations as well as focus on
customers and other stakeholders, empowerment, innovation, learning and
organizational directions. The Category also examines how health care
organizations address responsibilities to the public and support their
key communities.

Supplementary Category Item Notes:

**1.1 Organizational Leadership**

N1. Senior leaders include the head of the organization and his or her
direct reports. In health care organizations with separate
administrative/operational and health care provider leadership, senior
leaders refers to both sets of leaders and the relationships among those
leaders to create a leadership system.

**1.2 Organization Responsibility and Citizenship**

N1. In addition to actions to build community health, areas of community
support appropriate for 1.2b might include efforts by the organization
to strengthen local community services, education, the environment, and
practices of professional and business associations.

N2. Actions to build community health (1.2b) are population-based
services supporting the general health of the community served. Such
services might include health education programs, immunization programs,
unique health services provided at a financial loss, population
screening programs (e.g., hypertension), safety program sponsorship, and
indigent care.

**Category 2---Strategic Planning**

This Category examines health care organizations' strategy development
processes, including how the organizations develop strategic objectives,
action plans, and\
related human resources plans. Also, the Category examines how plans are
deployed and performance is tracked.

Supplementary Category Item Notes:

**2.1 Strategy Development**

N1. Strategy should be interpreted broadly. It might include any or all
of the following: new health care services and/or delivery processes;
new markets; revenue growth; cost reduction; and new partnerships and
alliances. Organizational strategy might be directed toward making the
organization a preferred provider, a research leader, or an integrated
service provider. Strategy might depend upon many different kinds of
capabilities, including access and locations, rapid response,
relationships, technology introduction and management, business process
excellence, and information management.

**Category 3---Customer Focus**

This Category examines how health care organizations determine
requirements, expectations, and preferences of patients, other customers
and markets. Also, the Category examines how health care organizations
build relationships with patients/customers and determine their
satisfaction.

Supplementary Category Item Notes:

**3.1 Customer and Market Knowledge**

N1. Patients, as a key customer group, are frequently identified
separately in the Criteria. Other customer groups could include
patients' families, the community, insurers/third-party payers,
employers, health care providers, patient advocacy groups, Departments
of Health, and students. Generic references to customers include
patients.

N2. Health care service features \[3.1a(3)\] refer to all important
characteristics of the services that patients and other customers
receive. The focus should be primarily on features that bear upon
customer preference, repurchase loyalty, and view of clinical and
service quality --- for example, those features that enhance or
differentiate, in the eyes of the customer, the organization's services
from other providers offering similar services. Beyond specific health
care provision, these features might include extended hours, family
support services, cost-assistance with billing/paperwork processes, and
transportation assistance.

N3. The determination of health care service features and their relative
importance \[3.1a(3)\] should take into account the potentially
differing expectations of patients and other customers. This is
particularly important where managed care and health care insurers'
efforts to contain costs may result in different expectations than
patients' at these organizations.

**Category 4---Information and Analysis**

This Category examines health care organizations' performance
measurement systems and how your organization analyzes performance data
and information.

Supplementary Category Item Note:

**4.2 Analysis of Organizational Performance**

N1. Analysis includes trends, projections, comparisons, and cause-effect
correlations intended to support the setting of priorities for resource
use. Accordingly, analysis draws upon all types of data:
patient/customer-related, health care outcomes, operational,
competitive, financial, and market.

**Category 5---Human Resource Focus**

This Category examines how health care organizations enable all staff to
develop and use their full potential, aligned with the organizations'
objectives. Also, the Category examines your organizations' efforts to
build and maintain a work environment and work climate conducive to
performance excellence, full participation, and personal and
organizational growth.

Supplementary Category Item Note:

**5.1 Work Systems**

N1. For purposes of the Criteria, the organization's staff includes all
people who contribute to the delivery of the organization's services,
including paid staff (e.g., permanent, part-time, temporary, and
contract employees supervised by the organization), independent
practitioners (e.g., physicians, physician assistants, nurse
practitioners, acupuncturists, and nutritionists not paid by the
organization), volunteers, and health profession students (e.g.,
medical, nursing, and ancillary). Any contract employees supervised by
the contractor should be addressed in Item 6.3.

**Category 6---Process Management**

This Category examines key aspects of process management, including
patient/customer-focused design, health care service delivery, support
and supplier partnering processes involving all departments and units.
Also, the Category examines how key processes are designed, implemented,
managed and improved to achieve better performance.

Supplementary Category Item Notes:

**6.1 Product and Service Processes**

N1. Health care service processes refer to patient and community service
processes for the purposes of prevention, maintenance, health promotion,
screening, diagnosis, treatment/therapy, rehabilitation, and recovery.
This includes services delivered to patients through other providers
(e.g., laboratory or radiology studies). Responses to Item 6.1 should
address the most critical requirements for successful delivery of
services.

N2. Key processes for the conduct of health care research and/or a
teaching mission should be reported in Item 6.1 or 6.2, as appropriate
to the organization's mission.

N3. Design requirements should include all appropriate stages of health
care service delivery. In a group practice, this might be making the
appointment, presentation, and evaluation of risk factors, health
education, and appointment closures. Depending upon the health care
service, this might include a significant focus on technology and/or
patient-specific considerations.

**6.2 Support Processes**

N1. The purpose of Item 6.2 is to permit organizations to separately
highlight the processes that support health care service design and
delivery processes addressed in Item 6.1. The support processes included
in Item 6.2 depend on the organization's mission and how it operates,
but should include key patient support processes (e.g., housekeeping,
medical records, etc.), and key business and administrative processes
(e.g., finance, contracting, etc.). Focus should be on your most
important processes not addressed in Items 6.1 and 6.3.

**6.3 Supplier and Partnership Processes**

N1. Support processes and services provided by contractors, but
supervised by the organization's staff, should be addressed in Item 6.2.

**Category 7---Business Results**

This Category examines health care organizations' performance and
improvement in key areas: patient/customer satisfaction, health care
provision and service, financial results, staff and work system results,
supplier and partner results, and operational performance. Also, the
Category examines performance levels relative to competitors and
organizations delivering similar health care services.

Supplementary Category Item Notes:

**7.1 Customer-Focused Results**

N1. There may be several different dimensions of patient satisfaction
such as satisfaction with quality of care, satisfaction with provider
interaction, satisfaction with the long-term health outcome, and
satisfaction with ancillary services. All of these areas are appropriate
satisfaction indicators.

**7.5 Organizational Effectiveness Results**

N1. Summarize the organization's key patient health care results.
Include current levels and trends in key measures and/or indicators of
health care outcomes, health care service delivery results, and
functional status. Also, appropriate comparative data for other
organizations providing similar health care services can be included.

N2. Accreditation and assessment results are appropriate to address in
this Item. Summarize results in key measures and/or indicators of
organizational accreditation, assessment, and legal/regulatory
compliance. Include appropriate comparative data for other institutions
providing similar health care services.

###### Education Supplementary Information

**Category 1---Leadership**

This Category examines how your organization's senior leaders address
organizational values and performance expectations, as well as a focus
on students and stakeholders, student learning, empowerment, innovation,
organizational learning, and organizational directions. Also examined is
how your organization addresses its responsibilities to the public and
supports its key communities.

Supplementary Category Item Notes:

**1.1 Leadership System**

N1. Senior leaders refers to those with main responsibility for managing
the school. The leadership system would also include the school's
governance entities such as Boards of Directors.

**1.2 Organization Responsibility and Citizenship**

N1. Health and safety of students and stakeholders are included in Item
1.2. However, the health and safety of faculty and staff are addressed
in Item 5.3.

**Category 2---Strategic Planning**

This Category examines how your organization's strategy development
process, including how your organization develops strategic objectives,
action plans, and related faculty and staff resource plans. This
Category also examines how plans are deployed and performance is
tracked.

Supplementary Category Item Notes:

**2.1 Strategy Development**

N1. You should interpret the word strategy broadly. It might be built
around or lead to any or all of the following: addition or termination
of programs; modifications in instructional design; use of technology,
changes in testing and/or assessment; adoption of standards; services to
new/changing student populations; research priorities; and partnerships
with other organizations.

N2. Item 2.1 addresses your overall organizational directions and
strategy, including changes in educational services and programs.
However, the Item does not address education design; this is addressed
in Item 6.1.

**Category 3---Customer Focus**

This Category examines how your organization determines student and
stakeholder requirements, needs, expectations, and preferences. Also,
the Category examines how your organization builds relationships with
students and stakeholders and determines their satisfaction.

Supplementary Category Item Notes:

**3.1 Customer and Market Knowledge**

N1. Customer needs might take into account information from students and
key stakeholders such as students' employers and other schools. Needs
include educational and other requirements such as safety.

N2. Customer/market segments refers to students' groups with similar
needs: career technical types, learning styles, living status
(residential vs. commuter) or other factors.

**3.2 Customer Satisfaction and Relationships**

N1. Student and stakeholder satisfaction and dissatisfaction should be
reported in Item 7.1. School faculty and staff-related results should be
reported in Item 7.3.

**Category 4---Information and Analysis**

This Category examines your organization's performance measurement
systems and how your organization analyzes performance data and
information.

Supplementary Category Item Note:

**4.2 Analysis of Organizational Performance**

N1. Analysis includes trend, projections, comparisons, and cause-effect
correlations intended to support performance reviews and the setting of
priorities for resource use. Accordingly, analysis draws upon all types
of data: customer/student-related, financial, operational, and
comparative.

**Category 5---Human Resource Focus**

This Category examines how your organization enables faculty and staff
to develop and use their full potential, aligned with the organization's
objectives. Also, the Category examines the organization's efforts to
build and maintain a work environment and a faculty and staff support
climate conducive to performance excellence, full participation, and
personal and organizational growth.

Supplementary Category Item Notes:

**5.1 Work Systems**

N1. For purposes of the Criteria, staff includes the school's permanent,
temporary and part-time personnel, as well as any contract employees or
volunteers supervised by the school. Any contract employees supervised
by the contractor should be addressed in Item 6.3.

N2. Work design refers to how faculty and staff are organized and/or
organize themselves in formal and informal, temporary or longer-term
units. This might include work teams, problem-solving teams, centers of
excellence, research teams, cross-functional teams and
departments---self-managed or managed by supervisors.

**Category 6---Process Management**

This Category examines the key aspects of process management, including
learning-focused education design, education delivery, support services,
and business operations. Also, the Category examines how key processes
are designed, implemented, managed and improved to achieve better
organizational performance.

*Supplementary Category Item Notes:*

**6.1 Product and Service Processes**

N1. Education design might take into account distance learning and
making offerings available at different locations and times to meet
student needs.

N2. Education delivery refers to how the school ensures ongoing programs
and offerings meet design requirements. Approaches might include
observations, measures and/or indicators such as student feedback,
evaluation of course instructors, research on learning, assessment and
technology, and/or information from students' employer organizations.
This evaluation feedback should reveal whether or not the programs or
offerings require corrective actions and improvement.

**6.2 Support Processes**

N1. Education support processes are those which support the school's
overall education activities. This might include libraries, information
technology, and tutorial/counseling services. Also, it might include
recruitment, enrollment, registration, accounting/billing processes,
facilities management, marketing, food services, housing, transportation
and security.

**Category 7---Business Results**

This Category examines schools' performance in key areas: student
performance results, student and stakeholder satisfaction, financial
performance, faculty and staff results, supplier and partner results and
school-specific performance. Also, the Category examines performance
levels relative to comparable schools and/or appropriately selected
organizations.

Supplementary Category Item Notes:

**7.1 Customer-Focused Results**

N1. To summarize current levels and trends in key measures and/or
indicators of student performance, different student groups may be
addressed separately.

N2. Student performance results might be based on a variety of
assessment methods that reflect the school's primary improvement
objectives and together represent holistic appraisals of students. For
some measures and/or assessment methods, data might not yet be
sufficient to demonstrate meaningful trends. Such data should be
reported nevertheless, as they provide useful information regarding the
school's current performance levels.

N3. Student performance and performance trends should include
comparisons with other schools and/or appropriately selected student
populations.

**IX. GLOSSARY OF KEY TERMS**

The Glossary of Key Terms defines and briefly describes concepts that
are important to performance management and used throughout the Award
Criteria.

**Action Plans**

Action plans refer to principal organization‑level drivers, derived from
short‑ and long‑term strategic planning. In simplest terms, action plans
are set to accomplish those things the organization must do well for its
strategy to succeed. Action plan development represents the critical
stage in planning when general strategies and goals are made specific so
that effective organization‑wide understanding and deployment are
possible. Deployment of action plans requires analysis of overall
resource needs and creation of aligned measures for all work units.
Deployment might also require specialized training for some employees or
recruitment of personnel.

An example of an action plan element for a government organization
supplying goods and services in competition with private‑sector
suppliers might be to develop and maintain a price leadership position.
Deployment should entail the design of efficient processes, analysis of
resource and asset use, and creation of related measures of resource and
asset productivity, aligned for the organization as a whole. It might
also involve the use of a cost‑accounting system that provides
activity‑level cost information to support day‑to‑day work. Unit and/or
team training should include priority setting based upon costs and
benefits. Organization‑level analysis and review should emphasize
overall productivity growth. Ongoing competitive analysis and planning
should remain sensitive to technological and other changes that might
greatly reduce operating costs for the organization or its competitors.

**Alignment**

Alignment refers to unification of goals throughout the organization and
consistency of processes, information, resource decisions, actions,
results, analysis, and learning to support key organization-wide goals.
Effective alignment requires common understanding of purposes and goals
and use of complementary measures and information to enable planning,
tracking, analysis, and improvement at three levels: the organization
level, the key process level, and the work unit level.

**Analysis**

Analysis refers to assessments performed by an organization or its work
units to provide a basis for effective decisions. Overall organizational
analysis guides process management toward achieving key business results
and toward attaining strategic objectives.

Despite their importance, individual facts and data do not usually
provide an effective basis for actions or setting priorities. Actions
depend upon understanding cause/effect relationships. Understanding such
relationships comes from analysis of facts and data.

**Approach**

Approach refers to how an organization addresses the Criteria Item
requirements---the methods and processes used by the organization.
Approaches are evaluated on the basis of the appropriateness of the
approach to the Item requirements; effectiveness of use of the approach;
and alignment with organizational needs.

**Comparisons -- Benchmarking and Competitive Comparisons**

Benchmarking is the process of systematically comparing and measuring
products, services, and processes against "best practices,"
"best-in-class" achievements, and performance of similar activities,
inside or outside government. At its essence, benchmarking involves
systematically looking at proven ways to provide better customer service
and adapting these ways to an organization's operations. It turns the
"not‑invented‑here" philosophy on its head, by focusing on the best
practices of other organizations.

Competitive Comparisons refer to examining an organization's current
processes against effective and efficient processes of other
organizations which are competitors in the organization's markets, or
with similar missions or functions within or outside the Government.
Competitive Comparisons often are less systematic and rigorous than
Benchmarking, and without detailed exploration of the differences in
underlying methods.

**Customers**

External customers are those who use or are directly affected by the
organization's products or services---those for whom the organization is
in business. They can be grouped into classifications according to their
relationship to the government as a supplier: voluntary, entitled, and
compelled users of the organization's products or services. Voluntary
users choose to use the product/service, such as visitors to national
parks and users of government statistics. Entitled users have an
automatic legal right to benefit from the program, such as recipients of
social security benefits and users of veterans hospitals. Compelled
users fall under the jurisdiction of government programs that are
prescriptive in nature, where punitive action can be taken if users do
not comply (e.g., prison inmates).

Internal customers refers to employees within the organization who
receive goods and services produced elsewhere in the organization and
act upon them in the production chain, ultimately leading to the
organization's final output of goods and services.

**Cycle Time**

Cycle time refers to responsiveness and completion-time measures---the
time required to fulfill commitments or to complete tasks. Cycle time
and related terms are used in the Award Criteria to refer to all aspects
of time performance.

Time measurements play a major role in the Award Criteria because of the
great importance of time performance to improving performance and
competitiveness. Cycle time improvement could include time to market,
order fulfillment time, delivery time, changeover time, and other key
process times.

**Deployment**

Deployment refers to the extent to which an organization's approach is
applied to the requirements of a criteria item. Deployment is evaluated
on the basis of the breadth and depth of the application of the approach
throughout the organization.

**Empowerment**

Empowerment refers to giving employees the authority and responsibility
to make decisions and take actions. Empowerment results in decisions
being made closest to the "front line," where work-related knowledge and
understanding reside.

Empowerment is aimed at enabling employees to satisfy customers on first
contact, to improve processes and increase productivity, and to better
the organization's business results. Empowered employees require
information to make appropriate decisions; thus, an organizational
requirement is to provide that information in a timely and useful way.

**High‑Performance Work**

High performance work refers to work approaches used to systematically
pursue ever higher levels of overall organizational and human
performance, including quality, productivity, innovation rate, and time
performance.

Approaches to high-performance work vary in form, function, and
incentive systems. Effective approaches generally include: cooperation
between management and the workforce, including work force bargaining
units; cooperation among work units, often involving teams;
self‑managed/self‑directed responsibility (sometimes called
empowerment); individual and organizational skill building and learning;
flexibility in job design and work assignments; an organizational
structure with minimum layering ("flattened") where decision making is
decentralized and decisions are made closest to the "front-line;" and
regular use of performance measures, including comparisons. Some high-
performance work systems use monetary and non‑monetary incentives based
upon factors such as organizational performance, team and/or individual
contributions, and skill building. Also, some high-performance work
approaches attempt to align the design of organizations, work, jobs, and
incentives.

**Leadership System**

Leadership system refers to how leadership is exercised throughout the
organization---the basis for the way that key decisions are made,
communicated, and carried out. It includes structures and mechanisms for
making decisions and reinforcing values, expectations, and behaviors. It
also includes the formal and informal bases and mechanisms for
leadership development used to select leaders and managers, to develop
their leadership skills, and to provide guidance and examples regarding
behaviors and practices.

An effective leadership system creates clear values respecting the
capabilities and requirements of employees and organization
stakeholders, and sets high expectations for performance and performance
improvement. It builds loyalty and teamwork based upon the values and
the pursuit of shared purposes. It encourages and supports initiative
and risk taking, subordinates organization to purpose and function, and
minimizes reliance on chains of command that require long decision
paths. An effective leadership system includes mechanisms for the
leaders' self‑examination, receipt of feedback, and improvement.

**Measures and Indicators**

Measures and indicators refer to numerical information that quantifies
(measures) input, output, and performance dimensions of processes,
products, services, and the overall organization (outcomes). Measures
and indicators might be simple (derived from one measurement) or
composite. The Award Criteria do not make a rigid distinction between
measures and indicators. However, some users of these terms, and
portions of the Criteria, use the term indicator: (1) when the
measurement relates to performance rather than to inputs; (2) when the
measurement relates to performance but is not a direct or exclusive
measure of such performance (e.g., the number of complaints is an
indicator of dissatisfaction, but not a direct or exclusive measure of
it); and (3) when a performance or measure is a predictor ("leading
indicator") of some more significant performance (e.g., gain in customer
satisfaction might be a leading indicator of increased demand).

**Performance**

Performance refers to outcome results obtained from processes, products,
and services that permit evaluation and comparison relative to goals,
standards, past results, and other organizations. Most commonly, the
results address quality, efficiency and time, and might be expressed in
non‑financial and financial terms.

Four types of organization performance are addressed in the Criteria:
(1) operational, including product and service quality, (2)
customer‑related, (3) financial, and (4) mission/program.

Operational performance refers to performance relative to effectiveness
and efficiency measures and indicators. Examples include cycle time,
productivity, waste reduction, and regulatory compliance. Operational
performance might be measured at the work unit level, the key process
level, and the organization level.

Product and service quality performance refers to performance relative
to measures and indicators of product and service requirements derived
from customer preference information. Examples include reliability,
on‑time delivery, defect levels, and service response time. Product and
service quality performance generally relates to the organization as a
whole.

Customer‑related performance refers to performance relative to measures
and indicators of customers' perceptions, reactions, and behaviors.
Examples include customer retention, complaints, customer survey
results, and changes in demand for products and services.
Customer‑related performance generally relates to the organization as a
whole.

Financial performance refers to performance using measures of cost and
revenue, including asset utilization, asset growth, value added per
employee, cost savings and cost avoidances. Financial measures are
generally tracked throughout the organization and are also aggregated to
give organization‑level, composite measures of performance. Examples are
return on investment and return on assets.

Mission/program performance refers to non‑financial measures used to
assess the organization's success in achieving its intended purposes,
goals and objectives. As with financial performance measures, they
generally are tracked throughout the organization and are also
aggregated to give organization‑level, composite measures of
performance.

The Criteria also address supplier performance, which refers to measures
of: (1) supplier and partner-provided goods and services used by the
organization in developing its final goods and services, and (2)
services provided by contractor employees working within the
organization, but supervised by the contractor.

**Performance Goal**

Performance goal refers to a target level of performance expressed as a
tangible, measurable objective against which actual achievement can be
compared, including a goal expressed as a quantitative standard, value,
or rate.

**Process**

Process refers to linked activities with the purpose of producing a
product or service for a customer (user) within or outside the
organization. Generally, processes involve combinations of people,
machines, tools, techniques, and materials in a systematic series of
steps or actions.

In some situations, process performance might require adherence to a
specific sequence of steps, with documentation (sometimes formal) of
procedures and requirements, including well‑defined measurement and
control steps.

In many service situations, particularly when customers are directly
involved in one or more steps of the service, process is used in a more
general way to spell out what must be done, possibly including a
preferred or expected sequence. If a sequence is critical, the service
needs to include information for customers to help them understand and
adhere to the sequence. Service processes involving customers require
guidance to the servers on handling contingencies related to differing
circumstances and to customers' actions or behaviors.

In some cases, such as strategic planning, research, development, and
analysis, process does not necessarily imply formal sequences of steps.
Rather, process implies general understanding regarding competent
performance, such as timing, options to be included, evaluation, and
reporting. Sequences might arise as part of these understandings.

**Productivity**

Productivity refers to measures of efficiency of the use of resources.
Although the term is often applied to single factors, such as manpower
(labor productivity), machines, materials, energy, and capital, the
productivity concept applies as well to the total resources consumed in
producing outputs. Overall productivity, usually called total factor
productivity, is determined by combining the productivity of the
different resources used for an output. The combination usually requires
taking a weighted average of the different single factor productivity
measures, where the weights typically reflect costs of the resources.
The use of an aggregate measure such as total factor productivity allows
a determination of whether or not the net effect of overall changes in a
process, possibly involving resource tradeoffs, is beneficial.

Effective approaches to performance management require understanding and
measuring single‑factor and total‑factor productivity, particularly in
complex cases when there are a variety of costs and potential benefits.

**Results**

Results refer to outcomes achieved by an organization in addressing the
purposes of a Criteria Item. Results are evaluated on the basis of
current performance; performance relative to appropriate comparisons;
rate, breadth, and importance of performance improvements; and
relationship of results measures to key organizational performance
requirements.

**Strategic Planning**

Strategic planning is the process of setting strategic directions and
determining key action plans, and for translating plans into an
effective performance management system. The process leads to
establishment of general goals and objectives, including outcome-related
goals and objectives, for the major functions and operations of the
organization, and for establishment of annual performance goals linked
to the general goals and objectives. It addresses: (1) how the goals and
objectives are to be achieved, including operational processes, skills
and technology, and human capital; (2) information and other resources
required to meet those goals and objectives; (3) key factors external to
the organization and beyond its control that could significantly affect
the achievement of the general goals and objectives; and (4) how
evaluations are used in establishing or revising goals and objectives.
The term "Strategic Planning," as used in the Criteria, is consistent
with the requirements established by the Government Performance and
Results Act.

**Systematic**

Systematic refers to approaches that are repeatable and use data and
information so that improvement and learning are possible. In other
words, approaches are systematic if they build the opportunity for
evaluation and learning, and thereby permit a gain in maturity. As
organizational approaches mature, they become more systematic and
reflect cycles of evaluation and learning.

**Value**

Value refers to the degree of worth relative to cost and relative to
possible alternatives of a product, service, process, asset, or
function.

Organizations frequently use value considerations to determine the
benefits of various options relative to their costs, such as the value
of various product and service combinations to customers. Organizations
seek to deliver value to all their stakeholders. This frequently
requires balancing value for customers and other stakeholders, such as
employees and the community.

**X. NOMINATION FORM**

**Applicant Organization**

Name
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Address
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**Highest Ranking Official in Applicant Organization**

Signature
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Address
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Telephone
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

FAX
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**Size of Organization**

Number of Employees (list federal employees, civilian, military and
contract support employees separately)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Number of Sites
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Budget for Preceding Year (circle one)

0-\$1M \$10M-\$100M \$500M-\$1B

\$1M-10M \$100M-\$500M Over \$1B

List Sites
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**Official Point of Contact in Applicant Organization**

Name
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Address
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Telephone
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

FAX
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Email
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**Agency Coordinator** (as described in Section III, General Application
Information and Instructions)

Signature
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Address
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Telephone
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

U.S. Office of Personnel Management

President's Quality Award Program

1900 E Street, NW Room 6468

Washington, DC 20415-5200

Telephone: (202) 606-2034

FAX: (202) 606-0919)

PQAP-1

April 2000