# Presentation: 543914

## BaldrigeNational Quality Program

***   ******Criteria for Performance Excellence***

**Baldrige****National Quality ****Program**

*Performance Excellence and Innovation*

## Seven Categories of the Business/Nonprofit Criteria

- Leadership
- Strategic Planning
- Customer and Market Focus
- Measurement, Analysis, and Knowledge Management
- Workforce Focus
- Process Management
- Results

**Notes:**
The Criteria consist of these seven Categories. Each Category is subdivided into Items and Areas to Address. There are 18 Items, each focusing on a major requirement. Embodied within these is a set of Core Values and Concepts.
Let’s take a look at these Core Values and Concepts before discussing the Categories and Items and the related Areas to Address.

## Slide 3

**Notes:**
The Criteria are built on a number of interrelated core values and concepts.

These values and concepts are embedded beliefs and behaviors found in high-performing organizations. They are the foundation for integrating key performance and operational requirements within a results-oriented framework that creates a basis for action and feedback.

This figure shows the role of the Core Values and Concepts. The Criteria are built on them. Core Values and Concepts are embedded in the systematic processes addressed in Criteria Categories 1 through 6. These systematic processes yield the performance results found in Criteria Category 7.

Let’s take a closer look at these Core Values and Concepts.

## Core Values and Concepts	

- Visionary Leadership
- Customer-Driven Excellence
- Organizational and Personal Learning

**Notes:**
Visionary Leadership: An organization’s senior leaders have a central role in setting directions and creating a customer focus. They must convey clear and visible values and high expectations. The organization’s defined values and strategies  should help guide all of its activities and decisions. Senior leaders serve as role models and reinforce ethics, values, and expectations while building leadership, commitment, and initiative throughout the organization. Senior leaders should be responsible to the organization’s governance body for their actions and performance. 
Customer-Driven Excellence: Performance and quality are judged by an organization’s customers. Thus, your organization must take into account all product and service features and characteristics and all modes of customer access that contribute value for your customers and lead to customer acquisition, satisfaction, preference, and loyalty to positive referrals, and, ultimately, to business expansion. Customer-driven excellence has both current and future components. It demands awareness of developments in technology and competitors’ offerings, as well as rapid and flexible responses to customer and market changes.
Organizational and Personal Learning: Organizational learning refers to continuous improvement of existing approaches and significant change or innovation, leading to new goals and approaches. Personal learning refers to education, training, and other opportunities for the continuous growth of your workforce, including senior leaders and volunteers. Learning is directed not only toward developing better products and services but also toward being more responsive, adaptive, innovative, and efficient—giving your organization marketplace sustainability and performance advantages. 

## Core Values and Concepts

- Valuing Workforce Members and Partners
- Agility
- Focus on the Future
- Managing for Innovation

**Notes:**
Valuing Workforce Members and Partners: An organization’s success depends increasingly on an engaged workforce and on the diverse backgrounds, knowledge, skills, creativity, and motivation of its workforce and partners. Valuing the people in your workforce means committing to their engagement, satisfaction, development, and well-being. Internal partners may include unions and employees, while external partners may include customers, suppliers, and education or community organizations. Such partnerships may be a source of strategic advantage for an organization.
Agility: Success in today’s ever-changing, globally competitive markets demands agility—a capacity for rapid change and flexibility. Organizations face ever-shorter cycles for the introduction of new and improved products and services, as well as for faster and more flexible responses to customers. Cycle time has become a key process measure.
Focus on the Future: Pursuit of sustainable growth and market leadership requires a strong future orientation and a willingness to make long-term commitments to key stakeholders, such as your customers, workforce, suppliers, partners, and stockholders, as well as the public and your community.
Managing for Innovation: Innovation is no longer strictly the purview of research and development departments. Organizations should be led and managed so that innovation becomes part of the learning culture, is integrated into daily work, and reaches across the entire organization. Innovation should lead the organization to new dimensions of performance. 

## Core Values and Concepts

- Management by Fact
- Social Responsibility
- Focus on Results and Creating Value
- Systems Perspective

**Notes:**
Management by Fact: Performance improvement requires measurement and analysis. The measures selected should best represent the factors that lead to improved customer, operational, financial, and ethical performance. Analysis of data enables an organization to determine trends, projections, and cause and effect in support of planning, improving operations, managing change, and comparing your organizational performance with that of competitors or comparable organizations or with “best practices” benchmarks.
Social Responsibility: Leaders should be role models for your organization in focusing on ethics and the protection of public health, safety, and the environment. They should go beyond mere compliance in these areas and focus on opportunities for improvement. They should practice good citizenship through leadership and support—within the limits of an organization’s resources—of publicly important purposes (e.g., improvement of education and health care in your community, environmental excellence, resource conservation, community service, and the sharing of quality-related information).
Focus on Results and Creating Value: Results should be used to create and balance value for your key stakeholders. The use of a balanced composite of leading and lagging performance measures offers an effective means to communicate short- and longer-term priorities, monitor actual performance, and provide a clear basis for improving results.  
Systems Perspective: A systems perspective means managing the whole organization, as well as its components, to achieve success. The seven Baldrige Criteria Categories, the Core Values and Concepts, and the Scoring Guidelines form the building blocks and the integrating mechanism for the system. This systems perspective is depicted in the following slide.

## Baldrige Criteria Framework:          A Systems Perspective

**Notes:**
	The framework provides a high-level overview of the Baldrige Criteria for Performance Excellence and illustrates how the Criteria provide a systems perspective for managing your organization to achieve performance excellence. From top to bottom, the framework has three basic elements—the Organizational Profile, the system operations, and the system foundation (Measurement, Analysis, and Knowledge Management).
The Organizational Profile (the umbrella at the top of the figure) sets the context for the way your organization operates. Your environment, key working relationships, and strategic challenges and advantages serve as an overarching guide for your organizational performance management system. 
The system operations (middle of the figure) comprise two linked triads.
The leadership triad—Leadership, Strategic Planning, and Customer and Market  Focus—emphasizes the importance of a leadership focus on strategy and customers.

The results triad—Workforce Focus, Process Management, and Results—focuses on your workforce and key processes that accomplish the work of the organization that yields your overall performance results.

ALL actions point toward Results.

The horizontal, two-headed arrow in the center of the framework links the two triads—a linkage critical to organizational success—and indicates the importance of feedback in an effective performance management system.
The system foundation for the performance management system (bottom of the figure) is composed of Measurement, Analysis, and Knowledge Management, which are critical to a fact-based, knowledge-driven system for improving performance and competitiveness.

## Item Format

***Item Format***

**Notes:**
As previously mentioned, there are 18 Items under the seven Baldrige Categories. Let’s take a look at what an Item looks like in the Criteria booklet. In this graphic of Item 1.1, you can see that the basic requirements are presented in the Item title, Senior Leadership: How do your senior leaders lead? The overall requirements are expressed as introductory sentences in bold text at the top of the Item. You also can see this is classified as a Process Item. (All Items in Categories 1 through 6 are classified this way. Items in Category 7 are Results Items.)
Two arrows at the left point out the Item’s Areas to Address, which are in blue text and assigned a letter designation—in this case, “a” and “b.” 
Multiple requirements are shown here on the right in brackets. They appear under each Area to Address as individual questions in black text.
Item Notes are provided and serve three purposes: (1) to clarify key terms and/or requirements, (2) to give instructions on responding to the Item requirements, and (3) to indicate/clarify important key linkages to other Items. They also provide additional guidance specifically for nonprofit organizations. These nonprofit-specific notes are shown in italics.
Note: Key terms presented in the Glossary are shown in small capital letters throughout the Criteria and Scoring Guidelines. The Criteria booklet also contains a section that discusses the Organizational Profile and each of the Categories and Items in more detail.

## Steps Toward Mature Processes

***Steps Toward Mature Processes***

**Notes:**
	This graphic is an aid for assessing and scoring Process Items (Categories 1 through 6). In each case, the arrows indicate the degree of consistency and coordination among organizational units. The circular shapes shown next to the arrows depict the relative clarity or definition of an organization’s goals. The steps are as follows:
Reacting to Problems. Here operations are characterized by activities rather than by processes, and they are largely responsive to immediate needs or problems.
In Early Systematic Approaches, the organization is at the beginning stages of conducting operations by processes with repeatability, evaluation and improvement, and some early coordination among organizational units.
Aligned Approaches occur in the third step toward a mature process. At this stage, operations are repeatable and are regularly evaluated for improvement, with learnings shared and with coordination among organizational units. 
Integrated Approaches occur at the final stage of a mature process. The arrows indicate the evolution of the organization into an interconnected unit. At this stage, not only are processes repeatable, but also, in collaboration with other affected units, they are regularly evaluated for change and improvement. This collaboration and interconnection help organizations achieve efficiencies across units.

## Slide 10

**Notes:**
Learning is an essential attribute of high-performing organizations and, therefore, a critical concept in performance excellence. It is a key term used throughout the Criteria booklet and is one of the four scoring factors used to assess the maturity of an organization’s processes.
Effective, well-deployed organizational learning can help an organization improve from the early stages of reacting to problems to the highest levels of organization-wide improvement, refinement, and innovation. The firefighting analogy illustrated here depicts a progression through the levels of maturity for this scoring dimension.

## Organizational Profile

- P.1  Organizational Description
- P.2  Organizational Challenges
- Starting point for self-assessment and application preparation
- Basis for early action planning

**Notes:**
Whether being used as part of a self-assessment or as part of a Baldrige Award application, the Organizational Profile provides a snapshot of the organization, the key influences on how it operates, and the key challenges it faces. The placement of the Organizational Profile at the front of the Criteria sets the organizational context for responding to the Criteria Items. The Organizational Profile helps everyone (e.g., organizations using the Criteria for self-assessment, application writers, and reviewers) understand what is most relevant and important to the organization’s business and to its performance.
The Organizational Profile is the starting point for self-assessment and for writing an Award application. If you identify topics for which conflicting, little, or no information is available, it is possible that your assessment need not go any further and you can use these topics for action planning. By addressing the questions in the Organizational Profile, potential gaps in key information can be identified, and areas that affect key performance requirements and results can be brought into focus.   
P.1  Organizational Description asks “What are your key organizational characteristics?” It asks an organization to describe its operating environment and its key relationships with customers, stakeholders, suppliers, partners, and collaborators. It also asks for a description of your governance system.
P.2  Organizational Challenges asks “What are your key organizational challenges?” It asks an organization to describe its competitive environment, key strategic challenges and advantages, and system for performance improvement. It includes a request to identify available sources of comparative and competitive data to emphasize the need for these sources and to provide a context for later responses.

## Category Point Values

- 1		Leadership				120
- 2		Strategic Planning	 		  85
- 3		Customer and Market Focus	  85
- 4		Measurement, Analysis, and
- 		Knowledge Management	  90
- 5		Workforce Focus		  	  85
- 6		Process Management		  85
- 7		Results				450
- 			TOTAL POINTS	        1,000

**Notes:**
All responses to the Items within the boxed Categories (1 through 6) should address Process.  
Responses to the Results Items should address trends, performance levels, and comparisons, as well as the breadth and importance of the results. Because the bottom line for any organization is results, almost half of the application points are for results.
Results must be supported by linkages to the appropriate Process Items to show cause and effect.  
Results may be the bottom line, but they are accomplished through a successful performance management system that is guided from the top.  

## 1. Leadership (120 pts.) 	

**      **
- 1.1  Senior Leadership (70 pts.)
- 1.2  Governance and Social Responsibilities (50 pts.)

***1. Leadership (120 pts.)****** ******	***

**Notes:**
Category 1 (Leadership) examines how senior leaders guide and sustain your organization. It also examines your organization’s governance and how the organization addresses its ethical, legal, and community responsibilities.
1.1  Senior Leadership asks “How do your senior leaders lead?” It focuses on how senior leaders guide and sustain your organization, how they communicate with the workforce, and how they review organizational performance.  It also includes the central role of senior leaders in setting the organization’s vision and values and in creating and balancing value for customers and other stakeholders in their performance expectations, as well as the role of senior leaders in creating an environment that fosters, requires, and results in legal and ethical behavior. 
1.2  Governance and Social Responsibilities asks “How do you govern and address your social responsibilities?” It examines several key aspects of your organization’s governance system, as well as how your organization fulfills its public responsibilities, ensures ethical behavior, and practices good citizenship. It also asks you to identify your key processes and measures or indicators for monitoring ethical behavior throughout your organization.

## 2. Strategic Planning (85 pts.)

- 2.1  Strategy Development (40 pts.)
- 2.2  Strategy Deployment (45 pts.)

***2. Strategic Planning (85 pts.)***

**Notes:**
Category 2 (Strategic Planning) addresses how your organization develops strategic objectives and action plans. It also examines how the chosen strategic objectives and action plans are deployed and changed if circumstances require it, and how progress is measured. 
2.1  Strategy Development asks “How do you develop your strategy?” It examines how your organization sets its strategic objectives, including how it determines and addresses its strategic challenges and advantages. It addresses your long-term organizational sustainability and your ability to execute the strategic plan. It also examines how key strategic objectives balance the needs of key stakeholders.
2.2  Strategy Deployment asks “How do you deploy your strategy?” It examines how your organization converts its strategic objectives into action plans to accomplish these objectives and how it assesses progress on its action plans. It also asks for your key performance measures or indicators and the performance projections for both your short- and longer-term planning horizons.

## 3.Customer and Market Focus (85 pts.) 	

***	******Satisfaction, and Loyalty of Customers ***
- 	3.1  Customer and Market Knowledge (40 pts.)
- 	3.2  Customer Relationships and Satisfaction (45 pts.)

***3.Customer and Market Focus (85 pts.)****** ******	***

**Notes:**
Category 3 (Customer and Market Focus) addresses how your organization determines the requirements, needs, expectations, and preferences of customers and markets. It also examines how your organization builds relationships with customers and determines the key factors that lead to customer acquisition, satisfaction, loyalty and retention and to business expansion and sustainability. References to building customer loyalty and exceeding customer expectations are included, as well as a focus on your use of customer complaint data.
3.1  Customer and Market Knowledge asks “How do you obtain and use customer and market knowledge?” It examines how your organization gains knowledge, including using the voice of the customer, about its customers and markets. The aim is to ensure the continuing relevance of products and services, to keep pace with marketplace changes, and to develop new opportunities.
3.2  Customer Relationships and Satisfaction asks “How do you build relationships and grow customer satisfaction and loyalty?” It examines how your organization builds relationships to acquire, satisfy, and retain customers; to increase customer loyalty; and to develop new opportunities. It also asks how your organization determines customer satisfaction and dissatisfaction.

## 4. Measurement, Analysis, and    Knowledge Management (90 pts.)	

- 	4.1  Measurement, Analysis, and Improvement of 	 Organizational Performance (45 pts.)
- 	4.2  Management of Information, Information 	 Technology, and Knowledge (45 pts.)

***4. Measurement, Analysis, and ******   Knowledge Management (90 pts.)******	***

**Notes:**
Category 4 (Measurement, Analysis, and Knowledge Management) examines how your organization selects, gathers, analyzes, manages, and improves its data, information, and knowledge assets and how it manages its information technology. It also addresses how your organization reviews its performance and uses these reviews for improvement.
4.1 Measurement, Analysis, and Improvement of Organizational Performance asks “How do you measure, analyze, and then improve organizational performance?” It covers your performance data and information at all levels and in all parts of the organization. This Item also emphasizes the purpose and use of the results of analyses and reviews, including using them to make strategic decisions for your organization.
4.2 Management of Information, Information Technology, and Knowledge asks “How do you manage your information, information technology, and organizational knowledge?” It addresses the availability and quality of needed data, information, hardware, and software for your workforce, suppliers, partners, collaborators, and customers. It also examines how your organization builds and manages its knowledge assets and the availability of data, information, hardware, and software in the event of an emergency.  

## 5. Workforce Focus (85 pts.) 	

- 5.1  Workforce Engagement (45 pts.)
- 5.2  Workforce Environment (40 pts.)

***5. Workforce Focus (85 pts.)****** ******	***

**Notes:**
Category 5 (Workforce Focus) addresses how your organization engages, manages, and develops your workforce to utilize its full potential in alignment with the organization’s overall mission, strategy, and action plans. It also examines your organization’s ability to assess workforce capability and capacity needs and to build a workforce environment that is conducive to high performance.
5.1 Workforce Engagement asks “How do you engage your workforce to achieve organizational and personal success?” It examines how your organization engages, compensates, and rewards your workforce to achieve high performance. It also examines how members of the workforce, including senior leaders, are developed to achieve high performance. In addition, it addresses how your organization assesses workforce engagement and uses the results to achieve higher performance. 
5.2 Workforce Environment asks “How do you build an effective and supportive workforce environment?” It addresses how your organization manages workforce capability and capacity to accomplish its work and how it maintains a safe, secure, and supportive work climate.

## 6. Process Management (85 pts.) 	

- 6.1  Work Systems Design (35 pts.)
- 6.2  Work Process Management and       Improvement (50 pts.)

***6. Process Management (85 pts.)****** ******	***

**Notes:**
Category 6 (Process Management) is the focal point within the Criteria for examining all key aspects of process management, including how your organization determines its core competencies and work systems and how it designs, manages, and improves its key processes for implementing those work systems. This Category also examines how your organization ensures its readiness for emergencies.
6.1 Work Systems Design asks “How do you design your work systems?” It addresses how your organization determines its core competencies and designs its work systems and key processes to deliver customer value, prepare for potential emergencies, and achieve organizational success and sustainability. 
6.2  Work Process Management and Improvement asks “How do you manage and improve your key organizational work processes?” It examines how your organization implements, manages, and improves its key work processes to deliver customer value and achieve organizational success and sustainability.

## 7. Results (450 pts.)

- 7.1 Product and Service Outcomes (100 pts.)
- 7.2 Customer-Focused Outcomes (70 pts.)
- 7.3  Financial and Market Outcomes (70 pts.)
- 7.4  Workforce-Focused Outcomes (70 pts.)
- 7.5  Process Effectiveness Outcomes (70 pts.)
- 7.6  Leadership Outcomes (70 pts.)

***7. Results (450 pts.)***

**Notes:**

Category 7 (Results) addresses your organization’s performance and improvement in six key areas. It also examines your performance levels relative to those of competitors and other organizations providing similar products and services. This Category includes a specific focus on results related to the effectiveness of your senior leaders.
7.1 Product and Service Outcomes asks “What are your product and service performance results?” It also asks for segmented results and appropriate comparative data.
7.2 Customer-Focused Outcomes asks “What are your customer-focused performance results?”  It examines results for customer satisfaction and customer-perceived value.
7.3  Financial and Market Outcomes asks “What are your financial and marketplace performance results?” These results might include aggregate measures of financial return and/or economic value, measures of financial viability, and measures of marketplace performance, such as market share/position, business growth, and new markets entered.
7.4 Workforce-Focused Outcomes asks “What are your workforce-focused performance results?” It examines results relating to workforce engagement, workforce capability and capacity, and the workforce environment. It asks for results that address the diversity of the workforce and the organization’s workforce groups and segments.
7.5 Process Effectiveness Outcomes asks “What are your process effectiveness results?” It examines your key operational performance results that contribute to the achievement of organizational effectiveness, including your organization’s readiness for emergencies. These results address the operational performance of your work systems and key work processes, including productivity and cycle time. 
7.6  Leadership Outcomes asks “What are your leadership results?” It examines your organization’s key governance and senior leadership results, including evidence of strategic plan accomplishment, ethical behavior, fiscal accountability, legal compliance, social responsibility, and organizational citizenship.

## Resources for More Information

- Most Baldrige National Quality Program (BNQP) documents are available both in printed form and on the BNQP Web site.
- To obtain these documents,call (301) 975-2036 orvisit **www.baldrige.nist.gov.**