Steve Hoisington

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Steve Hoisington Senior Vice President
Organizational Excellence and Quality
Julie Furst-Bowe Provost and Vice Chancellor
University of Wisconsin-Stout

• Environment for Change
• Baldrige National Quality Award Program
• Benchmarking
• Six Sigma
• Your needs drive the choice

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Who we are . . .

• Exel is the GLOBAL LEADER in providing contract
  logistic services
• and freight management, and associated
  consultancy/information
• systems
• Specialty services include
• Fleet management
• International shipments and mailings
• Waste management
• With about 130,000 associates in over 120
  countries worldwide, Exel
• provides solutions to a wide range of
  manufacturing, retail, high tech,
• and consumer industries
• Exel is a UK listed, FTSE 100 company, with
  turnover of 8.3 Billion
• (USD 13 Billion)
• Customers include over 70 of the worlds
  largest, quoted non-
• financial companies (global 100)

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Who we areUniversity of Wisconsin-Stout

• Founded in 1891 by James Huff Stout located in
  Menomonie, Wisconsin
• Special mission institution offering primarily
  unduplicated programs in the UW System
• 8,000 students and 1,200 employees
• Distinctive array of programs leading to
  professional careers
• 27 undergraduate programs
• 18 graduate programs
• 1st Higher education Baldrige recipient
• Steve Hoisington is one of our most famous
  graduates ?
• More information available at www.uwstout.edu

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AGENDA

• Problem Statement Basic Issue
• Organizational Diagnostics
• Malcolm Baldrige National Quality Award Program
• Balanced Scorecard
• Benchmarking
• Six Sigma
• Application to Education
• Questions and Answers

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The Basic Issue
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Individual Performance Management
The Basic Issue
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Impact of Strategy Deployment
The Basic Issue
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Classical Management Control System
The Basic Issue
Budget
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Strategy-driven Performance
The Basic Issue
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Organizational Diagnostics

• ISO 9001
• Baldrige Criteria
• EFQM (European Foundation for Quality
  Management)
• CMMI (Capability Maturity Model Integrated)
• NCA (North Central Accreditation)
• JCAHO (Joint Commission Accreditation of
  Healthcare Organizations)

Helps to Determine Organizational Gaps and/or
Opportunities for Improvement
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History of Malcolm Baldrige National Quality
Award

• Created in 1987 by U.S. Congress
• - Malcolm Baldrige National Quality Improvement
  Act,
• Public Law 100-107
• - National initiative to help industry and
  service organizations
• improve performance to become more
  competitive globally
• Named after Malcolm Baldrige
• - Secretary of Commerce from 1981-1987
• Administered by the Baldrige National Quality
  Program (BNQA)
• - under the National Institute of Science and
  Technology (NIST),
• - a division of the United States Department of
  Commerce
• Up to 9 U.S. organizations each year
• Education and Health Care categories added in
  1999
• From MBNQA to Performance Excellence in 1998

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Baldrige - Performance Excellence

• An aligned approach to organizational performance
  management that results in
• - delivering ever-increasing value to customers,
• contributing to marketplace success
• - improving organizational effectiveness and
  capabilities
• - organizational and personal learning
• Built upon 11 core values and a framework of 7
  categories

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Baldrige - Core Values and Concepts

• Visionary Leadership
• Customer-Driven Excellence
• Organizational and Personal Learning
• Valuing Employees and Partners
• Agility
• Focus on the Future
• Managing for Innovation
• Management by Fact
• Social Responsibility
• Focus on Results and Creating Value
• Systems Perspective

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7 Categories of the Baldrige Criteria

• Leadership
• Strategic Planning
• Student, Stakeholder, and Market Focus
• Measurement, Analysis, and Knowledge Management
• Faculty and Staff Focus
• Process Management
• Organizational Performance Results

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Baldrige Criteria Framework A Systems Perspective
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Baldrige Criteria Characteristics

• Criteria supports a Systems Perspective to
  maintaining organization-wide goal alignment
• Supports a learning cycle
• Planning, including design of processes,
  selection of measures, and deployment of
  requirements
• Execution of plans
• Assessment of progress including internal and
  external results
• Revision of plans based upon assessment findings,
  learning, new input, and new requirements

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Baldrige - Category Point Values

• 1 Leadership 120
• 2 Strategic Planning 85
• 3 Student, Stakeholder, and
• Market Focus 85
• 4 Measurement, Analysis, and 90
• Knowledge Management
• 5 Faculty and Staff Focus 85
• 6 Process Management 85
• 7 Operational Performance
• Results 450
• TOTAL POINTS 1000

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Baldrige Criteria - 19 Items

• What questions tables and graphs
• How questions process
• not what you do, but
• how you do something

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Baldrige - Items

• 2 Types of Items
• Process
• Approach
• Deployment
• Learning
• Integration
• Results
• Performance Levels
• Improvement Trends
• Relevant Comparisons
• Linkage / Gaps

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Balanced set of relevant, KEY measurements
demonstrating current levels, trends, and
comparisons
Social Responsibility
Operational
H/R
Financial
Products Services
Customer Satisfaction
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Applying the Baldrige at UW-Stout

• Leadership deployed an inclusive leadership
  system including faculty, staff, students and
  administrators
• Communication and input from all groups
• Shared decision making
• Formal team building
• Strategic planning deployed an inclusive
  planning system
• Highly participatory
• Links strategy to resource allocation
• Accountability through action plans

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Applying the Baldrige at UW-Stout

• Students Stakeholders deployed systems to
• Learn needs and requirements
• Build and maintain relationships
• Determine satisfaction levels
• Measurement, Analysis and Knowledge Management
  deployed systems and processes for
• Datatel deployment
• IT Infrastructure
• Laptop campus

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Applying the Baldrige at UW-Stout

• Faculty and Staff deployed processes to
• Improve work sytems
• Improve communication and skill sharing
• Determine levels of satisfaction and well being
• Process Management systematic processes for
• Design and delivery of academic programs
• Design and delivery of support services
• Review of programs and services
• Processes lead to high levels of performance
  (results)

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Balanced Scorecard
Financial
Vision Strategy
Business Processes
Customer
Learning Growth
People, Systems, Technology
Robert S. Kaplan and David P. Norton The Balanced
Scorecard Harvard Business Review
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Benchmarking

• Baldrige Winners Education
• Chugach Schoold District 2001
• Pearl River 2001
• University of Wisconsin Stout 2001
• Community Consolidated School District 15 2003
• Kenneth W. Monfort College of Business 2004
• ISO 9000 Registered Education Institutions

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Constructing the Balanced Score Card
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UW-Stouts Balanced Scorecard (excerpts from)
Priority Increase Student Retention Measures
Current rate 73 (first to second year) Target
80 Initiatives Title III grant, FYE Program,
Advisement improvements Priority Maintain High
Employer Ratings of Student Technology
Skills Measures 4.38 (UW-Stout Employer
Survey) Target 4.0 Initiatives Laptop
program, Stout Technology Advantage Priority
Increase Student Satisfaction Measures Current
level 3.74 (ACT Student Opinion Survey) Target
gt4.0 (National Average 3.69) Initiatives
Numerous across campus
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UW-Stouts Balanced Scorecard
Other Key Performance Indicators - Enrollment
- Transfer student enrollment - Graduation
rates - Graduate job placement rates - Tuition
rates (including room and board) - Tuition
revenue - Student engagement - Student
e-Scholar learning - Distance education
offerings - Employee morale - Research
productivity - Curriculum renewal - Safety -
Energy efficiency
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Six Sigma is a Measure of Variation
Defects per million Percentage
of opportunities Defects Two
Sigma 308,000 30.1 Three Sigma
66,807 6.7 Four Sigma 6,210
0.62 Five Sigma 233 0.0233 Six
Sigma 3.4 0.0000034
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Six Sigma Breakthrough Strategy yf(x)
Identify business improvement opportunities
Define project scope, resources, objectives
Identify Y measurements, baseline cur- rent
performance, set improvement goal
Identify the critical few x drivers that most
affect performance
Create solution variety, decide solution
of choice, install improvements and controls
Verify improvements and controls
Manage xs to ensure gains are sustained
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THANK YOU !!
For additional information, please contact
Steve Hoisington Senior Vice President
Organizational Excellence and Quality Exel
GFM 4120 Point Eden Way Suite 200
Hayward, CA 94545 [phone]
steven.hoisington_at_us.exel.com
?
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For additional information, please contact
Julie A. Furst-Bowe Provost and Vice
Chancellor Academic and Student Affairs
University of Wisconsin-Stout 1 Clocktower
Plaza Menomonie, WI 54751 (715)
232-2421 furst-bowej_at_uwstout.edu