2019-2020 Baldrige Excellence Builder - NIST

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BALDRIGEEXCELLENCEBUILDERKey questions for improving yourorganization’s lth careLEADERSHIPSTRATEGYCUSTOMERSMEASUREMENT, ANALYSIS, ANDKNOWLEDGE st.gov/baldrige

Improve Your PerformanceThe Baldrige Excellence Builder self-assessment helps you identify and improve what is criticalto your organization’s success. By completing and acting on this assessment, you will be betterpositioned to accomplish your mission, improve your results, and become more competitive.The Excellence Builder is based on the more detailed Baldrige Excellence Framework andits Criteria for Performance Excellence.Here’s what the Baldrige Excellence Framework can do for you.ManufacturerGrew return on investment at a 23%compound annual rate; increasedannual orders from repeat andinternational customers 32% andnearly 400%, respectivelyGovernment AgencyAchieved 3.22 billionin cost avoidance over5 yearsSmall BusinessMore than doubled in size over6 years; created more than 26 million in revenue annuallyfor 9 yearsOrganizational onCustomersOperationsMeasurement, Analysis, and Knowledge ManagementHospitalDecreased the risk-adjustedmortality rate by 24%—better than the top-decilelevel in its six-countyregionsCoreValues and ConceptK–12 Public School SystemOver 10 years, tripled the number ofAdvanced Placement exams taken, with66% of students taking at least one; morethan doubled the number of AP examswith scores of 3 or higherNonprofitLeads all local competitorsin customer engagement andloyalty as measured by NetPromoter System scoresPurchase the Baldrige Excellence Framework Today!www.nist.gov/baldrige/publications

Contents2About the Baldrige Excellence BuilderThe Baldrige Excellence Builder represents proven leadership and managementpractices for high performance.4Core Values and Concepts5Baldrige Excellence BuilderAnswer these questions about the most important features of organizationalperformance excellence.14Assessing Your ResponsesAssess your answers to the Baldrige Excellence Builder questions.16Glossary of Key TermsLearn the defnitions of key terms in the Baldrige Excellence Builder.Using Baldrige to improve was, I think, one of the smartestthings we did in our business. It really gave us a touchstone;it really gave us an opportunity to . . . constantly measureourselves and evaluate how we’re doing.—Scott McIntyre, Managing Partner, Baldrige Award recipientPricewaterhouseCoopers Public Sector Practice1

About the Baldrige Excellence BuilderIs your organization doing as well as it could? How do you know? What andhow should your organization improve or change?The Baldrige Excellence Builder helps you assess your organization’s strengths and opportunities for improvement against the most important features of organizational performanceexcellence. By completing and acting on this assessment, you will be better positioned toaccomplish your mission, improve your results, and become more competitive.The Baldrige Excellence Builder is based on the more detailed Baldrige Excellence Frameworkand its Criteria for Performance Excellence (see www.nist.gov/baldrige/publications). For morethan 30 years, Baldrige has been globally recognized as the leading edge of validated leadership and performance practice.Organizations around the world use the Baldrige framework to improve and get sustainableresults. Those recognized as U.S. role models receive the Malcolm Baldrige National QualityAward, a Presidential award. The recipients broadly share their best practices with others.Through that sharing, many thousands of organizations have improved their operations andresults, and thus their contributions to the U.S. and global economy.A Focus on ImprovementThe Baldrige Excellence Builder helps you understand how well you are achieving your goalsand objectives: Are your processes consistently effective? Do your approaches address your organization’s needs? How good are your results? Is your organization learning, innovating, and improving?As you answer the Baldrige Excellence Builder questions and assess your responses, you willidentify strengths and opportunities for improvement. Then, as you build on your strengthsand address your opportunities, you create cycles of improvement within your organization.The building blocks of the Baldrige approach are the core values and concepts (see page 4), theseven Baldrige Excellence Builder categories, and the evaluation factors described on the next page.A Systems PerspectiveA systems perspective means managing all the parts of your organization as a unifed whole toachieve your mission. It means ensuring that your plans, processes, measures, and actions areconsistent. And it means ensuring that the individual parts of your organization’s managementsystem work together in a fully interconnected, unifed, and mutually benefcial manner.2Baldrige Excellence Builder

How to Use the Baldrige Excellence BuilderAnswer the Organizational Profle questions. Rather than prescribe how you shouldstructure your organization or its operations or what its mission and goals should be, theBaldrige Excellence Builder asks you to make those decisions. In the Organizational Profle(pages 5–6), you defne what is most relevant and important to your organization’s missionand performance.The Organizational Profle sets the context for your answers to the rest of the questions. Itcan also serve as your frst Baldrige self-assessment: if you identify topics for which you haveconficting, little, or no information, you can use those topics for action planning.Answer the questions in categories 1–7 (pages 7–13). Your answers to these questionsare an assessment against the most important features of organizational excellence. Thecategories represent seven critical aspects of managing and performing as an organization:(1) Leadership; (2) Strategy; (3) Customers; (4) Measurement, Analysis, and KnowledgeManagement; (5) Workforce; (6) Operations; and (7) Results.Categories 1–6 (pages 7–12) each consist of two items (e.g., 1.1, 1.2), with many of thequestions beginning with “how.” In answering these questions, give information on your keyprocesses: Approach: How do you accomplish your organization’s work? How effective are yourkey approaches? Deployment: How consistently are your key approaches used in relevant parts ofyour organization? Learning: How well have you evaluated and improved your key approaches? Haveimprovements been shared within your organization? Has new knowledge led toinnovation? Integration: How do your approaches align to your current and future organizationalneeds?For the fve items in category 7 (page 13), report on the results that are the most important toyour organization’s success: Levels: What is your current performance? Trends: Are the results improving, staying the same, or getting worse? Comparisons: How does your performance compare with that of other organizationsand competitors, or with benchmarks? Integration: Are you tracking results that are important to your organization? Are youusing the results in decision making?Assess your answers: process and results. Use the rubric on pages 14–15 to assess youranswers to the questions in each item. Identify your strengths. Then look at the next higherlevel to see what you might improve.Prioritize your actions. Celebrate your strengths and build on them to improve the thingsyou do well. Sharing the things you do well with the rest of your organization can speedimprovement. Also prioritize your opportunities for improvement; you cannot do everything atonce. Think about what is most important for your organization at this time, and decide whatto work on frst. Develop an action plan, implement it, and measure your progress.After you use the Baldrige Excellence Builder, please email us at baldrige@nist.gov to tell usabout your experience.About the Baldrige Excellence Builder3

Core Values and ConceptsThe Baldrige Excellence Framework and Baldrige Excellence Builder arebased on these core values and concepts. For more detailed explanation,see the Baldrige Excellence Framework (www.nist.gov/baldrige/publications).Systems perspective. A systems perspective means managing all the parts of your organization as a unifed whole to achieve your mission and strive toward your vision.Visionary leadership. Your organization’s senior leaders should set a vision for the organization, create a customer focus, demonstrate clear and visible organizational values and ethics,and set high expectations for the workforce.Customer-focused excellence. Your customers are the ultimate judges of your performanceand of product and service quality. Thus, your organization must consider all product andservice characteristics, and modes of customer access and support, that contribute to customersatisfaction, loyalty, positive referrals, and ultimately your organization’s ongoing success.Valuing people. A successful organization values its workforce members and the other peoplewho have a stake in the organization, including customers, community members, suppliersand partners, and other people affected by its actions.Organizational learning and agility. Organizational learning includes both continuousimprovement of existing approaches and signifcant change or innovation, leading to newgoals, approaches, products, and markets. Organizational learning must allow for agility, acapacity for rapid change and for fexibility in operations.Focus on success. Ensuring your organization’s success now and in the future requires understanding the short- and longer-term factors that affect your organization and its marketplace,managing uncertainty and risk in the environment, and balancing some stakeholders’ shortterm demands with the organization’s and stakeholders’ need to invest in long-term success.Managing for innovation. Innovation means making meaningful change to improve yourproducts, services, programs, processes, operations, and business model, with the purpose ofcreating new value for stakeholders. Innovation requires a supportive environment, a processfor identifying strategic opportunities, and the pursuit of those that are intelligent risks.Management by fact. Management by fact requires you to measure and analyze your organization’s performance, both inside the organization and in your competitive environment.Analysis of performance measures and indicators should support organizational evaluation,alignment, and decision making.Societal contributions. Your organization’s leaders should stress contributions to the publicand the consideration of societal well-being and beneft.Your leaders should be role modelsfor the well-being of your communities.Ethics and transparency. Your organization should stress ethical behavior by all workforcemembers in all stakeholder transactions and interactions. Senior leaders should be role modelsof ethical behavior, including transparency, characterized by candid and open communicationon the part of leadership and management and by the sharing of accurate information.Delivering value and results. Your organization should choose and analyze results that helpyou deliver and balance value for your key stakeholders. Thus, results need to include not justfnancial results, but also product and process results; customer and workforce satisfaction andengagement results; and leadership, strategy, and societal performance.4Baldrige Excellence Builder

Baldrige Excellence BuilderThe Baldrige Excellence Builder includes questions on the most importantfeatures of organizational excellence, starting with a full OrganizationalProfle. For a more comprehensive set of questions, see the Baldrige ExcellenceFramework booklet (Business/Nonproft, Education, or Health Care;www.nist.gov/baldrige/publications).P Organizational ProfileP.1 Organizational Description: What are your key organizationalcharacteristics?a. Organizational Environment(1) Product Offerings What are your main product offerings*? What is the relative importance of each to your success? What mechanisms do you use to deliver your products?(2) MISSION, VISION, VALUES, and Culture What are your MISSION, VISION, and VALUES?Other than VALUES, what are the characteristics of your organizational culture, if any? Whatare your organization’s CORE COMPETENCIES, and what is their relationship to your MISSION?(3) WORKFORCE Profile What is your WORKFORCE profle? What recent changes have youexperienced in WORKFORCE composition or in your needs with regard to your WORKFORCE?What are your WORKFORCE or employee groups and SEGMENTS; the educational requirements for different employee groups and SEGMENTS; the KEY drivers that engage them; your organized bargaining units (union representation), if any; and your special health and safety requirements, if any?(4) Assets What are your major facilities, equipment, technologies, and intellectual property?(5) Regulatory Environment What are your KEY applicable occupational health and safetyregulations; accreditation, certifcation, or registration requirements; industry standards; andenvironmental, fnancial, and product regulations?b. Organizational Relationships(1) Organizational Structure What are your organizational leadership structure andGOVERNANCE structure? What structures and mechanisms make up your organization’sLEADERSHIP SYSTEM? What are the reporting relationships among your GOVERNANCE board,SENIOR LEADERS, and parent organization, as appropriate?(Continued on the next page)*For health care organizations,“product offerings” are health care services.For education organizations,“product offerings” are educational programs and services.See www.nist.gov/baldrige/publications for Baldrige frameworks tailored to the health care and education sectors.Baldrige Excellence Builder5

(2) CUSTOMERS** and STAKEHOLDERS What are your KEY market SEGMENTS, CUSTOMERgroups,

Here’s what the Baldrige Excellence Framework can do for you. Leadership Strategy Customers Workforce. RESULTS. Measurement, Analysis, and Knowledge Management. Integration. C o r e Values an d C o n c e p t s. Operations. Organizational Profile. Government Agency . Achieved 3.22 billion in cost avoidance over 5 years . Manufacturer. Grew return on investment at a 23% compound annual rate .

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