Malcolm Baldrige National Quality Award

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Baldrige National Quality Program
Be the Best Leader, Lead the Best Organization
How Baldrige Can Help You Harry S. Hertz NCHE
Meeting January 11, 2005
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Outline

• Where Are We As Leaders?

• What Are the Baldrige Criteria?

• How Do We Improve?
• - Are We Making Progress?
• - Organizational Profile
• - Learn from Others

• Tomorrow Morning

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Where Are We As Leaders?

• Committee of 200 Study October 2004
• 933 Graduate Students and 807 MBA Graduates
• Companies are not run honestly
• 67 of female students
• 57 of male students
• Lack of ethics still is a serious issue
• 70 of female graduates
• 60 of male graduates
• Business is not done ethically or honestly
• 64 of graduates with jobs
• 61 of students

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Where Are We As Leaders?
Whats the message
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Where Are We as Leaders?

• I believe the answer is enlightened
  organizational and labor leadership leading, with
  vision and conviction.

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What Are the Baldrige Criteria?

• Performance Excellence
• An integrated approach to organizational
  performance management that results in
• delivering ever-increasing value to patients and
  other customers, contributing to improved health
  care quality
• improving organizational effectiveness and
  capabilities as a health care provider
• organizational and personal learning

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What Are the Baldrige Criteria for Performance
Excellence?

• A set of expectations or requirements
• A structured approach to performance improvement
• A framework for a systems view of performance
  management

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Criteria Purposes

• To help improve organizational performance
  practices, capabilities, and results
• To facilitate communication and sharing of
  best practices
• To serve as a performance improvement tool

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How Do We Improve?

• Are We Making Progress?
• Are We Making Progress as Leaders?
• Employee (Leadership Team) Questionnaires
• Seven Category Framework
• 40 Statements, 5-Point Scale
• Compare Results
• Focus Improvement and Communication for
  Your Organization
• Measure Trust

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Are We Making Progress? N228
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Baldrige Examiner Results - Differences Greater
than 20
Employees Leaders
2b. Employees know plans that effect them 68 42
3d. Employees ask if customers satisfied 74 45
4a. Employees know how to measure work quality 80 48
4b. Employees know how to analyze work quality 80 32
4c. Employees use analyses to make decisions 74 24
4d. Employees relate their measures and business results 62 35
5a. Employees can make work improvements 83 61
6b. Employees collect data on work quality 69 38
7d. Employees time and talent used well 57 37
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Baldrige Examiner Results Similar Perceptions
Employees Leaders
3c. Customers tell employees their needs 77 75
4f. Employees know how organization is doing 57 55
5b. Employees work as a team 74 76
5e. Safe workplace 89 88
7e. Organization removes barriers 36 35
7f. Organization obeys laws 95 95
7g. Organization has high standards 82 83
7h. Employees are satisfied with job 68 67
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How Do We Improve?

• Are We Making Progress? Discussion Points
• Ask your employees for their ideas for the future
• Ask your employees about organizational
  barriers to progress
• Ask your employees how they analyze work quality
  and make decisions
• Ask about the differences in leadership and
  employee perceptions

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How Do We Improve?

• Organizational Profile
• Purpose
• - Describe what is relevant and important
• - Ensure common understanding
• - Guide selection of information/data
• - Identify gaps/lack of deployment
• - Serve as first Baldrige assessment

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Organizational Profile

• Organizational Description
• Organizational Environment
• Organizational Relationships
• Organizational Challenges
• Competitive Environment
• Strategic Challenges
• Performance Improvement System

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Organizational ProfileRelationships

• Organizational structure and governance system
• Key patient/customer groups or market segments
  and their key requirements
• Most important suppliers/dealers/partners and
  supply chain requirements
• Key supplier and customer partnering
  relationships and communication mechanisms

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How Do We Improve?

• Organizational Profile Discussion Points
• Do you know the answer?
• Would your organizational colleagues give
  the same answer?
• Who are your key customers and what are their
  requirements?
• What are your strategic challenges?

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How Do We Improve?
Customer RequirementsDeck Furniture
What are management and employees measuring?
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Baldrige Role Model Characteristics -Business
(2001 2002), Business (1999 2000), Education
(2001)

• Visionary Leadership Guidance (1.1)
• Process Driven (6.1)
• Customer and Market Knowledge (3.1)

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Early Adopters -Business (2001 2002),
Business (1999 2000), Education (2001 2002)

• Process Driven (6.1)
• High Performance Work Systems (5.1)
• Customer and Market Knowledge (3.1)
• Visionary Leadership Guidance (1.1)

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How Do We Improve?

• Lessons Learned Discussion Points
• What are your organizations values?
• How do you demonstrate them?
• How do you motivate employees?
• What are your key processes?
• How do you listen and learn from customers?
• How do you align work, jobs, and processes?

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SSM Top 10 Lessons Learned from Using Baldrige

• 10.Dont wait until you are ready.
• 9.It takes longer then you think.
• 8.Everyone must be involved and understand
  whats important.
• - CEO, medical staff, support staff...

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SSM (continued)

• 7. Its important not just to understand the
  Baldrige health care criteria, but also to
  understand the connections among the criteria.
• - A systems perspective
• 6. In well-run organizations, everything is
  intentional.
• 5. Never confuse activity with accomplishment
• - Measure results and outcomes,
• not activity

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SSM (continued)

• 4. You dont know what you dont know until
  someone tells you.
• 3. So, you say you want to be exceptional
• - Through our exceptional health care
  services, we reveal the healing presence of
  God. SSM mission
• 2. If youre in this to win, dont bother.

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SSM (continued)

• 1. Leadership is not seeing which way the parade
  is moving and running to the front.
• - Leadership is getting people from where they
  are to where they have not been. Henry
  Kissinger

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Tomorrow Morning

• Consider Using Are We Making Progress?,
  Organizational Profile, Lessons Learned, Baldrige
  Criteria
• But choose among them
• Consider the Discussion Points
• - Stimulate a discussion
• - Do some data gathering
• - But choose your focus

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Tomorrow Morning

• The task of the leader is to get people from
  where they are to where they have not been.
• Henry Kissinger
• You can be that leader

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• Thank You!