2013

Baldrige Performance Excellence Program | www.nist.gov/baldrige

2011

The Baldrige Program’s 

Successful Transition From 

Federal Funding

Harry S. Hertz

Presentation to the NIST Visiting Committee

February 2013
2013

Baldrige Performance Excellence Program | www.nist.gov/baldrige

Milestones in the Transition

FY2011

$9.6M (federal 

appropriation)

$1.5M (Baldrige 

Foundation)

November 2011

Zero FY2012

federal 

appropriation

November 2011

Commitment of 

$5.2M by Baldrige 

Foundation 

(FY2012)

February 2012 

Commitment of 

$15M by Baldrige 

Foundation 

(FY2013–FY2015)

April 2012 

Business plan 

accepted by 

NIST/DOC

Strategy 

Mapping Business Plan Development Business Plan Execution

Meanwhile . . .
2013

Baldrige Performance Excellence Program | www.nist.gov/baldrige

Business 

Model

Cost 

Recovery

Baldrige 

Foundation 

Support

Cost 

Reduction

Gift decreases as cost 

recovery increases 

Shift some operations

Streamline remaining operations

Reduce examiner reimbursement

Assessments

Education/training 

Criteria sales
2013

Baldrige Performance Excellence Program | www.nist.gov/baldrige

• From 70–85 to 39 applications

Award 

Eligibility 

Limits

• Staff: 38 to 24 through attrition

• Expenses: $10.32 million to $5.56 

million

Other Time & 

Cost Savings 

• Award assessments

• Education & training

• Collaborative assessments

• Criteria for Performance Excellence

Products & 

Services

Cost Reduction and Recovery
2013

Baldrige Performance Excellence Program | www.nist.gov/baldrige

FY2012 Performance to Plan

(Thousands of $) FY2011 FY2012

Product and Service Fee Income Actual

Conservative 

Goal

Stretch 

Goal Actual

Award application fees 850 661 661 566

Criteria 30 10 20 15

Sponsorships/exhibits N/A 100 200 105

Conferences/events 210 210 250 244a

Training/presentations N/A 45 90 80

Assessment services N/A 25 50 0b

Baldrige Fellows Program 130 146 146 146

Total Fee Income 1,220 1,197 1,417 1,156

Program Expenses

Labor and benefits 6,986 4,474 4,474 4,172

Other objects/Indirect costs 1,571 988 988 723

ASQ contract costs 1,760 763 763 669

Total Labor and Other Costs 10,317 6,225 6,225 5,564

aDoes not include $100K in expenses for the 2011 Award Ceremony, which was added to the Quest for 

Excellence conference.

bAlthough the fees will be invoiced in FY2013, commitments for $40K were secured in FY2012.
2013

Baldrige Performance Excellence Program | www.nist.gov/baldrige

Baldrige Impact 

820 to 1 

• Ratio of benefits for the U.S. economy to Baldrige Program costs 

(Economic Evaluation of the Baldrige Performance 

Excellence Program, December 2011)

> 60%; 80% of teaching hospitals

• 100 Top Hospitals winners using the Baldrige Criteria 

(Truven Health Analytics, December 2012)

65%

• U.S. hospitals likely to use the Baldrige Criteria by 2018 

(Futurescan 2013, ACHE)

93% and 63%

• Median growth in revenue and jobs, respectively, for two-time 

Baldrige Award winners; 3.2% job growth for matched industries
2013

Baldrige Performance Excellence Program | www.nist.gov/baldrige

Challenges Remain . . .

 Diminished access to Criteria for small organizations 

and nonprofits; charging for the Criteria

 Operating a “business” with government restrictions, 

while benefiting from Presidential award status and 

federal imprimatur for the Criteria 

 Managing relationships with state, industry, and 

international Baldrige-based programs 

 Staff motivation and work overload are both 

extremely high in latest employee survey
2013

Baldrige Performance Excellence Program | www.nist.gov/baldrige

Quest for Excellence Conference and 

Anniversary Gala

Marriott Baltimore Waterfront

Conference: April 7–10

Keynote: Dr. Ben Carson of Johns Hopkins 

Hospital

25th Anniversary Gala: April 7

Speakers from the Baldrige community, 

dinner, music, 25th anniversary video