# Presentation: 496733

## Program Impacts

***Program Impacts***

**Malcolm Baldrige****National Quality Award**

## Program Impact

- Program participants
- State, regional, and local Baldrige-based programs
- International interest

**Notes:**
The Baldrige National Quality Program (BNQP) and the Malcolm Baldrige National Quality Award have been extremely successful in promoting performance excellence across the country and around the world. For example, since the Program’s inception in 1987, more than 2 million copies of the business/nonprofit, education, and health care Criteria for Performance Excellence booklets have been distributed to individuals and organizations in the United States and abroad. Plus, more then 1 million copies are accessed or downloaded annually from the Baldrige Web site.
The Program’s success can be attributed to a number of factors, including
the efforts of Award recipients and other program participants in sharing their knowledge and successful practices with others 
the network of state, regional, and local Baldrige-based award programs
the growth of international interest in the Baldrige Program

## Program Participants	

- 67 Award recipients (71 Awards)
- 1,139 Baldrige Award applications
- More than 4,400 trained Examiners
- Widespread participation
- Private sector contributions provide over 90% of Program support

**Notes:**
Participants in the Baldrige Program include a wide variety of individuals and organizations, such as Award applicants; Award recipients; members of the Board of Examiners, who evaluate the Award applications and prepare feedback reports; and state and local award programs.
Since the Program’s inception, 71 of the 1,139 applications have resulted in a Baldrige Award: 26 in manufacturing, 15 in service, 17 in small business, 7 in education, and 6 in health care. Four organizations (Solectron, Ritz-Carlton, Texas Nameplate, and Sunny Fresh Foods) have received the Award twice, making the total number of Award recipients 67.
The Baldrige National Quality Program has trained more than 4,400 Examiners in the Baldrige Criteria and processes. In addition, in 2006, the 35 states reporting  through the Alliance for Performance Excellence trained more than 2,000 Examiners through their state, regional, and local award programs. Examiners often take knowledge from the Program to their own organizations and teach others about the Baldrige process. 
There are current Examiners and Award recipients in 47 states and in the District of Columbia.
The Program has spread to all sectors of the economy, with distribution of the Criteria for Performance Excellence to business, education, health care, government, and nonprofit organizations.
Over 90 percent of Program support, including in-kind contributions, comes from the private sector. This includes the volunteer time of the members of the Board of Examiners.

## Award Recipients’ Contributions

- Increase competitiveness of U.S. organizations
- Give presentations to all sectors
- Give presentations at The Quest for Excellence® and the regional conferences
- Influence customers/suppliers
- Host seminars and workshops
- Write articles

**Notes:**
Through the sharing of best practices and knowledge of the Baldrige Criteria, Award recipients have helped increase the competitiveness of U.S. organizations. For example, Award recipients often host seminars and workshops to help other organizations understand and use the Criteria.
Collectively, Award recipients have given thousands of presentations. Audiences have included businesses, education and health care organizations, and government agencies and other nonprofit groups.
Award recipients also share best practices at the annual Quest for Excellence Conference® (QE) and at regional conferences. Attendance at QE has averaged more than one thousand people per year. Regional conferences are held at various U.S. locations each year.
The use of the Baldrige Criteria by Award recipients has had a positive influence in several ways on these organizations’ customers and suppliers. First, the use of the Criteria has helped the organizations improve their processes related to customers and suppliers and their relationships with these groups. In addition, some organizations, through such mechanisms as Baldrige-based awards for their suppliers, have encouraged their supplier organizations to use the Criteria.  
Many Award recipients also have helped the Program by writing and publishing articles on the Criteria and on the Baldrige National Quality Program. 

## Award Recipients’ Results

- The 2006 Award recipients report dramatic results from their investment in performance excellence.

**Notes:**
The following slides provide examples of results for the current Award recipients:
MESA Products, Inc., Tulsa, Ok. (small business)
Premier Inc., San Diego, Ca. (service)
North Mississippi Medical Center, Tupelo, Miss. (health care)

## Premier Inc.

**Notes:**
Premier tracks training for Process Management and Improvement and Documentation of its key processes.

Process Management and Improvement process: 
All employees are provided foundational process management tools through Process Management and Improvement System (PMIS) training and are provided individual process management toolkits to support on the job just-in-time training. Lean Six Sigma training is provided for selected Champions, Greenbelts, and Blackbelts from across Premier. Process Matter Experts (PMEs) are selected from each Business Unit and 25 percent of their work responsibilities are dedicated to supporting process management and knowledge sharing within their units.
Documentation:
Through documentation, a Premier team identifies, evaluates, and incorporates appropriate and cost-effective new technologies, methodologies, flexibility, and/or organizational knowledge into the process. Factors relating to cycle time, productivity, cost control, process efficiency, and effectiveness are addressed through techniques such as market basket indices and reverse auction deployment. 

## MESA Products, Inc.

**Notes:**
One of MESA’s five Strategic Goals is Relationships. 
Customer retention is one of MESA’s measures for this goal. Customer retention rate is critical in a mature market with limited growth opportunities. Key customers are segmented by material customers (MP) and service customers (MCC) and are generally defined as those customers over $100,000 in annual revenues.
MESA focuses on the development of ongoing, profitable relationships. From 2000 to 2005, key customer retention increased from 93% to 100%.

## North Mississippi Medical Center

**Notes:**
NMMC has a structured Performance Improvement system that enables it to effectively compare its critical success factors (CSF)-based performance with benchmarks and to establish consistently higher performing targets. The CSFs are People, Service, Quality, Financial, and Growth.
All activities are organized and managed according to the CSFs, thereby creating organizational alignment and a comprehensive structure for operational excellence. 
People:  Indicators of success are employee satisfaction, staffed position rates, and retention rates. NMMC’s retention rates exceed the health care industry benchmark. NMMC statistically analyzes employee satisfaction, physician satisfaction, productivity, worked FTEs, retention and turnover data for leading satisfaction and dissatisfaction factors of each department and service line.
Service:  NMMC routinely tracks patient satisfaction as a key CSF (service) indicator and also measures patient loyalty.
Quality - NMMC utilized the CMS Hospital Quality Incentive Demonstration Project on Composite Quality Score methods to assess itself. The HQI Composite Quality Score is comprised of two separate components, a composite process score and a composite outcome score, which are generated by a weighting formula and rolled up to one composite score. NMMC is currently near the 90th percentile in this self-selected demonstration group and has focused action plans to remain in the top 10%.
Financial:  NMMC believes that high quality and efficiency produce good financial results. A key strategic challenge for NMMC is to generate the financial resources necessary to support the organization in an environment of reimbursement pressures and increasing charity care. NMMC regularly tracks and reviews its financial reports. Department heads, service line administrators, managers, and supervisors receive quarterly trend data and compare reports, including monthly actual-to-budget performance comparisons, monthly Budget Accountability Report roll-up10, bi-weekly reports, and weekly situation reports (financial and volume).
Growth is another CSF strategic challenge for NMCC. The strategic challenge for the growth CSF is to continue to expand in areas consistent with its Mission. The analyses for the growth CSF include cost benefit analyses, cause-and-effect analyses, SWOT analyses, feasibility studies, and business plans; pro formas and trending are performed for new services, expansions, and existing services.  

## State, Regional, and Local Programs

- National coverage
- A feeder system
- Leveraging the national program

**Notes:**
The number of state, regional, and local award programs has grown tremendously. In 1991, only eight state and local award programs existed. Today there are 44 state and local quality award programs. The state and local programs have been especially successful in reaching out to locally based small and medium-size businesses, as well as education and health care organizations, which were not eligible for the Baldrige Award until 1999.
The state and local programs have become a feeder system to the Baldrige Award. In the last nine years, 32 out of the 44 Baldrige Award recipients also have won their highest level state quality award. If asked, below are the year-by-year breakdowns:
1996: all four of the Baldrige Award recipients were state award recipients
1997: three out of four Baldrige Award recipients were state award recipients
1998: all three were state award recipients
1999: two of the four were state award recipients
2000: three of the four were state award recipients
2001: three of the five were state award recipients
2002: two of the three were state award recipients
2003: five of the seven were state award recipients
2004:  three of the four were state award recipients
2005: four of the six were state award recipients
2006: all three were state award recipients
In addition, 76 international quality awards have been established, including the Japan Quality Award. According to a recent Australian study, 68 percent of them use the Baldrige Criteria.

## States With State or Local Award Programs

- Note: Five states have more than one quality award program.

***States With State or ******Local Award Programs***

**Notes:**
Currently, there are 43 active programs in 41 states; 35 of these states report their data as part of the Alliance for Performance Excellence. 
All 43 programs are modeled on the Baldrige Program, and their criteria are based on the Baldrige Criteria for Performance Excellence.
The growth in the number of programs indicates an increased acceptance, both nationally and internationally, of the principles of performance excellence as defined by the Baldrige Criteria. 
International note: In addition to the state and local network, an international network has evolved and there are approximately 76 programs around the world, and 68 percent are Baldrige-based.
There is a Baldrige-based award in Japan, in addition to the Deming Prize. Elements of the Baldrige Criteria also are used in the European Quality Award and Canadian Award for Excellence.
Baldrige has truly become a global benchmark, and the Criteria have become accepted as a worldwide standard for performance excellence.

## 2006 State, Regional, and Local Program Statistics

- 43 active programs in 41 states
- Received 426 award applications*
- Trained 2,115 Examiners*
- 53 recipients earned the highest level award in their states*
- * Data of 35 states who report through the Alliance for
-   Performance Excellence

**Notes:**
The state and local programs greatly extend the reach and impact of the Baldrige National Quality Program.
State and local programs have distributed tens of thousands of paper and electronic copies of the Baldrige Criteria. Almost all criteria at the state level are Baldrige-based, with some being word-for-word copies. This has helped the Baldrige National Quality Program reach a widespread audience.
Programs in 35 states report their statistics through the Alliance for Performance Excellence. These programs reported the following:
A total of 426 applications were received in 2006.
A total of 2,115 Examiners were trained in 2006. The tremendous effect of state and local training is apparent when you consider that the Baldrige National Quality Program, over its entire 19 years, has trained more than 4,400 Examiners, and state and local programs, over the past 13 years, have trained more than 22,000 Examiners.

## Business Award Recipients in Manufacturing

- 3M Dental Products Division (1997)
- ADAC Laboratories (1996)
- Armstrong Building Products Operations (1995)
- AT&T Transmission Systems Business Unit (1992)
- The Bama Companies (2004)
- Boeing Airlift & Tanker Programs (1998)

- Cadillac Motor Car Company (1990)
- Clarke American Checks, Inc. (2001)
- Corning Telecommunications Products Division (1995)
- Dana Corporation—Spicer Driveshaft Division (2000)
- Eastman Chemical Company (1993)
- IBM Rochester (1990)

**Notes:**
Baldrige Award recipients are shown on this slide and the following five slides.
Former Award recipients continue to share with fellow recipients and with other organizations that want to learn. They meet once or twice each year to learn from each other and to discuss how they can help the Baldrige National Quality Program.
They also continue to share knowledge of the Criteria and information with the public about their best practices.

## Business Award Recipients in Manufacturing

- KARLEE (2000)
- Medrad, Inc. (2003)
- Milliken & Company (1989)
- Motorola CGISS (2002)
- Motorola, Inc. (1988)
- Solar Turbines Inc. (1998)
- Solectron Corporation (1991 and 1997)

- STMicroelectronics—Region Americas (1999)
- Sunny Fresh Foods, Inc. (2005)
- Texas Instruments Defense Systems & Electronics Group (1992)
- Westinghouse Commercial Nuclear Fuel Division (1988)
- Xerox Business Products & Systems (1989)
- Zytec Corporation (1991)

**Notes:**
(Continuation of previous slide)

## Business Award Recipients in Service

- AT&T Consumer Communications  Services (1994)
- AT&T Universal Card     Services (1992)
- BI (1999)
- Boeing Aerospace Support (2003)
- Caterpillar Financial Services U.S. (2003)
- Dana Commercial Credit Corporation (1996)
- DynMcDermott Petroleum Operations (2005)

- Federal Express        Corporation (1990)
- GTE Directories        Corporation (1994)
- Merrill Lynch Credit Corporation (1997)
- Operations Management International, Inc. (2000)
- Premier Inc. (2006)
- The Ritz-Carlton Hotel  Company, L.L.C. (1992 and 1999)
- Xerox Business Services (1997)

**Notes:**
(Continuation of previous slide)

## Business Award Recipients in Small Business

- Ames Rubber Corporation (1993)
- Branch-Smith Printing Division (2002)
- Custom Research Inc. (1996)
- Globe Metallurgical Inc. (1988)
- Granite Rock Company (1992)
- Los Alamos National Bank (2000)
- Marlow Industries, Inc. (1991)
- MESA Products, Inc. (2006)

- Pal’s Sudden Service (2001)
- Park Place Lexus (2005)
- Stoner, Inc. (2003)
- Sunny Fresh Foods (1999)
- Texas Nameplate Co., Inc. (1998 & 2004)
- Trident Precision Manufacturing, Inc. (1996)
- Wainwright Industries, Inc. (1994)
- Wallace Co., Inc. (1990)

**Notes:**
(Continuation of previous slide)

## Education Award Recipients 

- Chugach School District (2001)
- Community Consolidated School District 15 (2003)
- Jenks Public Schools (2005)
- Kenneth W. Monfort College of Business (2004)
- Pearl River School District (2001)
- Richland College (2005)
- University of Wisconsin—Stout (2001)

**Notes:**
(Continuation of previous slide)

## Health Care Award Recipients 

- Baptist Hospital, Inc. (2003)
- Bronson Methodist Hospital (2005)
- North Mississippi Medical Center (2006)
- Robert Wood Johnson University Hospital Hamilton (2004)
- Saint Luke’s Hospital of Kansas City (2003)
- SSM Health Care (2002)

**Notes:**
(Continuation of previous slide)

## Resources for More Information

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