2010-2011 Texas Award for Performance Excellence
Excellence Effective June 2009
GENERIC CRITERIA FOR:
SMALL AND LARGE BUSINESSES,
NOT-FOR-PROFIT ORGANIZATIONS, AND
ORGANIZATIONS FROM THE PUBLIC SECTOR
THE TEXAS AWARD FOR PERFORMANCE EXCELLENCE
Quality Texas Foundation Board of Examiners
Partnerships between the private, public, and education The Board of Examiners is the body that evaluates award
sectors, and their involvement in continuous improvement applications and prepares feedback reports. The Panel of
and performance excellence are fundamental to making Judges, a subset of the Board of Examiners, makes award
Texas renowned for the quality of goods, services, recommendations to the Board of Directors. The Board of
education, health care, and overall quality of life. Examiners consists of experienced professionals from the
private, public, education, and health care sectors, selected
Quality Texas, a 501(c)3 non-profit corporation, strives to by Quality Texas, the Board of Governors and Panel of
involve as many organizations and individuals as possible Judges through a voluntary application process. The Board
in performance improvement in a number of ways. Among is composed of about 150 members.
these initiatives, it administers the Texas Award for
Members of the Board of Examiners also teach
Performance Excellence. Support for Quality Texas and
Performance Excellence concepts through a variety of
the Texas Award for Performance Excellence is strong and
activities. These activities involve professional, trade,
growing in volunteer efforts, in-kind contributions, and community, and state organizations to which these
funds. To ensure continued growth and success, each of professionals belong.
the following groups plays an important role.
Texas Award for Performance Excellence
Board of Directors for Quality Texas Patterned after the Malcolm Baldrige National Quality
This group of leaders, from private, public and educational Award, the Texas Award for Performance Excellence is an
organizations across the State, is responsible for the overall annual recognition of Texas organizations that excel in
success of Quality Texas. The Board is responsible for the performance, quality, and customer satisfaction. The benefits
vision, goals, policies, and funding activities of participation are in the self-assessment that occurs during
application, and the extensive feedback report prepared for
Membership the applicant by a team of trained, certified examiners who
Sponsor members and annual members provide resources review and analyze the application.
for Quality Texas. Membership, varying in size and type,
includes cash and in-kind contributions, and can be from The Criteria supporting the Texas Award for Performance
individuals as well as organizations. Special sponsorship Excellence provide a Baldrige-based methodology for
opportunities for specific needs and activities arise organizations to achieve and sustain world-class
throughout the year. Please contact the Quality Texas performance.
Foundation if you are interested in learning more about
these sponsorship opportunities. Texas Award Recipients
Award recipients are encouraged to share information on
Board of Governors their successful performance and quality strategies with
The Board of Governors is responsible for oversight, other Texas organizations. However, recipients are not
evaluation, and improvement of all aspects of the award required to share proprietary information, even if such
program, including the adequacy of the award criteria and information was a part of their Award application. The
the process through which the award recipients are principal mechanism for sharing information is the Texas
evaluated. The job of the Board of Governors is to ensure Quest for Excellence Conference, held annually.
the integrity, currency, and relevancy of the Texas Award
process. An important part of this Board’s responsibility is Texas Award Administration
to assess how well the award is serving the State’s interest. Quality Texas Foundation staff implement and administer
This group develops the Examiner training program and the Texas Award processes. They interface and play a
selects and trains the Examiners. coordinating role with the Board of Directors, Board of
Governors, Panel of Judges, Board of Examiners, and
applicants as they perform their respective duties. The
Quality Texas Foundation staff proposes the dates for each
award cycle and sets the expectations for volunteers to
accomplish their duties within the time frames allotted
throughout the award cycle.
-i- 2010-2011 Business Criteria for Performance Excellence
APPLYING FOR THE TEXAS AWARD FOR PERFORMANCE EXCELLENCE
The Texas Award for Performance Excellence is an annual
Award to recognize Texas organizations for performance The four options, including brief descriptions, follow:
excellence. To participate in the Award process, an
organization must submit an Eligibility Certification Engagement
Package and an Application Package. Eligibility and The Engagement Level is for those organizations that have
Application Packages, due dates, fees, and the made a commitment to use performance improvement
application review and feedback process, including principles, but are early in their journey. The Engagement
instructions and forms necessary to apply for all levels of Level questions are on pages 65-66.
the Award, can be found at www.texas-quality.org.
Award Purpose The Commitment Level is for those organizations that have
The Award promotes: begun using quality principles to build a sound management
Awareness of performance excellence as an increasingly system. Such organizations will have identified areas that
important element in competitiveness, and are most important to the organization’s long-term success
Information sharing of successful performance and will have begun developing systematic approaches for
strategies and the benefits derived from using these key processes. It is likely that measures and performance
strategies. levels can be demonstrated in some of these areas. The
Commitment Level questions and guidelines are on pages
Criteria Sectors 67-73 of this booklet.
The Quality Texas Foundation provides three sets of
Criteria. This booklet contains the Business Criteria Progress
applicable for manufacturing, service, small business, non- The Progress Level is for those organizations that have made
profits, and organizations from the public sector. There are progress toward a sound management system and the
two other Criteria sector booklets: one for educational achievement of performance results. It is likely Progress
institutions and a second for health care organizations. Level applicants will have made progress in building and
implementing some effective, systematic approaches and
should be demonstrating results and trends in some of those
Application Levels areas that are most important to the organization’s long-term
The Texas Award for Performance Excellence offers four success. The Progress Level questions and guidelines are on
different Application Levels. The Levels are designed to pages 74-81 of this booklet.
encourage more organizations to participate, provide an
avenue for those organizations not familiar with the Criteria Award Level
for performance excellence to start with a basic set of The Award Level employs the full set of performance
requirements, and give feedback to organizations at all levels excellence criteria used at the national level for the Baldrige
of the performance improvement journey. All applicants Award. Generally, Texas organizations that have been
must respond to the Organizational Profile (pages 11-13) working with performance excellence principles and
questions in addition to the application level questions concepts for at least three years apply at this level.
appropriate for their organization. Organizations applying at the Award Level are eligible to be
selected as recipients of the Texas Award for Performance
Excellence. The honor includes recognition as state role
models for achieving sustained performance excellence at
the Texas Quest for Excellence Conference. Award level
applicants who decline a site visit will not be eligible to
receive the Texas Award for Performance Excellence.
- iii - 2010-2011 Business Criteria for Performance Excellence
Education and Health Care organizations
should use the appropriate Criteria booklets for their respective sectors.
1 2010-2011 Business Criteria: Core Values, Concepts, and Framework
7 Key Characteristics of the Criteria
8 Changes from the 2009 Criteria
Award Level Criteria___________________________________________________________________________________
10 2010-2011 Business Criteria for Performance Excellence—Item Listing
11 Preface: Organizational Profile
14 1 Leadership
17 2 Strategic Planning
20 3 Customer Focus
23 4 Measurement, Analysis, and Knowledge Management
25 5 Workforce Focus
28 6 Process Management
30 7 Results
34 2010-2011 Business Criteria: Category and Item Descriptions
47 Scoring System
48 Scoring Guidelines
51 2010-2011 Business Criteria Response Guidelines
55 Glossary of Key Terms
Progress Level Criteria_________________________________________________________________________________
65 Engagement Level Business Criteria for Performance Excellence
67 Commitment Level Business Criteria for Performance Excellence
74 Progress Level Business Criteria for Performance Excellence
How to Reach Us_______________________________________________________________________________________
82 Quality Texas Foundation – Texas Award for Performance Excellence
Organizations wishing to submit an application for recognition of their progress and to receive independent feedback from a team
of Texas Award Examiners should follow the eligibility and application instructions provided in the Application Forms and
Instructions document found at www.texas-quality.org. To apply, an organization must first complete and submit an Eligibility
Certification Package. Award Application Packages are submitted after your organization’s eligibility has been determined and
confirmed by Quality Texas.
For due dates, refer to the Award Application Package. Eligibility and Application Packages, due dates, fees, and details of the
application review and feedback process can also be found at www.texas-quality.org.
If you would like to recommend a member of your organization for the Board of Examiners, you or the nominee must submit an
on-line Examiner Application that can be found at www.texas-quality.org.
2010-2011 Business Criteria for Performance Excellence - iv -
BUSINESS CRITERIA: CORE VALUES, CONCEPTS, AND FRAMEWORK
Criteria Purposes and strategies should help guide all of your organization’s
The Criteria are the basis for conducting organizational self- activities and decisions. Senior leaders should inspire and
assessments, for making Awards, and for giving feedback to encourage your entire workforce to contribute, to develop
applicants. In addition, the Criteria have three important and learn, to be innovative, and to embrace change. Senior
roles in strengthening Texas competitiveness: leaders should be responsible to your organization’s
to help improve organizational performance practices, governance body for their actions and performance. The
capabilities, and results; governance body should be responsible ultimately to all your
to facilitate communication and sharing of best practices stakeholders for the ethics, actions, and performance of your
information among Texas organizations of all types; and organization and its senior leaders.
to serve as a working tool for understanding and
managing performance and for guiding organizational Senior leaders should serve as role models through their
planning and opportunities for learning. ethical behavior and their personal involvement in planning,
communicating, coaching the workforce, developing future
Criteria for Performance Excellence Goals leaders, reviewing organizational performance, and
The Criteria are designed to help provide organizations with recognizing members of your workforce. As role models,
an integrated approach to organizational performance they can reinforce ethics, values, and expectations while
management that results in: building leadership, commitment, and initiative throughout
delivery of ever-improving value to customers and your organization.
stakeholders, contributing to organizational
sustainability; Customer-Driven Excellence
improvement of overall organizational effectiveness and Performance and quality are judged by an organization’s
capabilities; and customers. Thus, your organization must take into account
organizational and personal learning. all product and service features and characteristics and all
modes of customer access that contribute value to your
customers. Such behavior leads to customer acquisition,
Core Values and Concepts satisfaction, preference, and loyalty; to positive referrals;
The Criteria are built on the following set of interrelated and, ultimately, to business expansion. Customer-driven
Core Values and Concepts: excellence has both current and future components:
visionary leadership understanding today’s customer desires and anticipating
customer-driven excellence future customer desires and marketplace potential.
organizational and personal learning
valuing workforce members and partners Value and satisfaction may be influenced by many factors
agility throughout your customers’ overall experience with your
focus on the future organization. These factors include your organization’s
managing for innovation customer relationships, which help to build trust, confidence,
management by fact and loyalty.
focus on results and creating value Customer-driven excellence means much more than
systems perspective reducing defects and errors, merely meeting specifications,
or reducing complaints. Nevertheless, these factors
These values and concepts, described below, are embedded contribute to your customers’ view of your organization and,
beliefs and behaviors found in high-performing thus, also are important parts of customer-driven excellence.
organizations. They are the foundation for integrating key In addition, your organization’s success in recovering from
performance and operational requirements within a results- defects, service errors, and mistakes is crucial for retaining
oriented framework that creates a basis for action and customers and engaging customers for the long term.
A customer-driven organization addresses not only the
Visionary Leadership product and service characteristics that meet basic customer
Your organization’s senior leaders should set directions and requirements but also those features and characteristics that
create a customer focus, clear and visible values, and high differentiate the organization from its competitors. Such
expectations. The directions, values, and expectations should differentiation may be based on innovative offerings,
balance the needs of all your stakeholders. Your leaders combinations of product and service offerings,
should ensure the creation of strategies, systems, and customization of offerings, multiple access mechanisms,
methods for achieving performance excellence, stimulating rapid response, or special relationships.
innovation, building knowledge and capabilities, and
ensuring organizational sustainability. The defined values
-1- 2010-2011 Business Criteria for Performance Excellence
Customer-driven excellence is thus a strategic concept. It is gain, and growth. It demands constant sensitivity to
directed toward customer retention and loyalty, market share changing and emerging customer and market requirements;
the factors that drive customer engagement. It demands close (4) reducing errors, defects, waste, and related costs; (5)
attention to the voice of the customer. It demands improving responsiveness and cycle time performance; (6)
anticipating changes in the marketplace. It demands a increasing productivity and effectiveness in the use of all
customer-focused culture. Therefore, customer-driven your resources; and (7) enhancing your organization’s
excellence demands organizational agility. performance in fulfilling its societal responsibilities.
Organizational and Personal Learning The success of members of your workforce depends
Achieving the highest levels of organizational performance increasingly on having opportunities for personal learning
requires a well-executed approach to organizational and and on practicing new skills. Leaders’ success depends on
personal learning that includes sharing knowledge via access to these kinds of opportunities as well. In
systematic processes. Organizational learning includes both organizations that rely on volunteers, the volunteers’
continuous improvement of existing approaches and personal learning also is important, and their learning and
significant change or innovation, leading to new goals and skill development should be considered with employees’.
approaches. Learning needs to be embedded in the way your Organizations invest in personal learning through education,
organization operates. This means that learning (1) is a training, and other opportunities for continuing growth and
regular part of daily work; (2) is practiced at personal, work development. Such opportunities might include job rotation
unit, and organizational levels; (3) results in solving and increased pay for demonstrated knowledge and skills.
problems at their source (“root cause”); (4) is focused on On-the-job training offers a cost-effective way to cross-train
building and sharing knowledge throughout your and to better link training to your organizational needs and
organization; and (5) is driven by opportunities to effect priorities. Education and training programs may have
significant, meaningful change and to innovate. Sources for multiple modes, including computer- and Web-based
learning include employees’ and volunteers’ ideas, research learning and distant learning.
and development (R&D), customers’ input, best practice
sharing, and benchmarking. Personal learning can result in: (1) a more engaged, satisfied
and versatile workforce that stays with your organization;
Organizational learning can result in: (1) enhancing value to (2) organizational cross-functional learning; (3) the building
customers through new and improved products and customer of your organization’s knowledge assets; and (4) an
services; (2) developing new business opportunities; (3) improved environment for innovation.
developing new and improved processes or business models;
-2- 2010-2011 Business Criteria for Performance Excellence
Thus, learning is directed not only toward better products training could offer a cost-effective method for workforce
but also toward being more responsive, adaptive, innovative, development.
and efficient—giving your organization marketplace
sustainability and performance advantages and giving your Agility
workforce satisfaction and the motivation to excel. Success in today’s ever-changing, globally competitive
environment demands agility—a capacity for rapid change
Valuing Workforce Members and Partners and flexibility. Organizations face ever-shorter cycles for
An organization’s success depends increasingly on an the introduction of new/improved products, and nonprofit
engaged workforce that benefits from meaningful work, and government organizations are increasingly being asked
clear organizational direction, and performance to respond rapidly to new or emerging social issues. Major
accountability that has a safe, trusting, and cooperative improvements in response times often require new work
environment. Additionally, the successful organization systems, simplification of work units and processes, or the
capitalizes on the diverse backgrounds, knowledge, skills, ability for rapid changeover from one process to another. A
creativity, and motivation of its workforce and partners. cross-trained and empowered workforce is a vital asset in
such a demanding environment.
Valuing the people in your workforce means committing to
their engagement, satisfaction, development, and well-being. A major success factor in meeting competitive challenges is
Increasingly, this involves more flexible, high-performance the design-to-introduction (product or service feature
work practices tailored to varying workplace and home life initiation) or innovation cycle time. To meet the demands of
needs. Major challenges in the area of valuing members of rapidly changing markets, organizations need to carry out
your workforce include: (1) demonstrating your leaders’ stage-to-stage integration (such as concurrent engineering)
commitment to their success; (2) providing recognition that of activities from research or concept to commercialization
goes beyond the regular compensation system; (3) offering or implementation.
development and progression within your organization; (4)
sharing your organization’s knowledge so your workforce All aspects of time performance now are more critical, and
can better serve your customers and contribute to achieving cycle time has become a key process measure. Other
your strategic objectives; (5) creating an environment that important benefits can be derived from this focus on time;
encourages risk taking and innovation; and (6) creating a time improvements often drive simultaneous improvements
supportive environment for a diverse workforce. in work systems, organization, quality, cost, supply-chain
integration, and productivity.
Organizations need to build internal and external
partnerships to better accomplish overall goals. Internal Focus on the Future
partnerships might include labor-management cooperation. Creating a sustainable organization requires understanding
Partnerships with members of your workforce might entail the short- and longer-term factors that affect your
developmental opportunities, cross-training, or new work organization and marketplace. The pursuit of sustainable
organizations, such as high-performance work teams. growth and sustained leadership requires a strong future
Internal partnerships also might involve creating network orientation and a willingness to make long-term
relationships among your work units or between employees commitments to key stakeholders—your customers,
and volunteers to improve flexibility, responsiveness, and workforce, suppliers, partners, stockholders, the public, and
knowledge sharing. your community.
External partnerships might be with customers, suppliers, Your organization’s planning should anticipate many
and education or community organizations. Strategic factors, such as customers’ expectations, new business and
partnerships or alliances are increasingly important kinds of partnering opportunities, workforce development and hiring
external partnerships. Such partnerships might offer entry needs, the increasingly global marketplace, technological
into new markets or a basis for new products or customer developments, changes in customer and market segments,
support services. Also, partnerships might permit the new business models, evolving regulatory requirements,
blending of your organization’s core competencies or changes in community and societal expectations and needs,
leadership capabilities with the complementary strengths and and strategic moves by competitors. Strategic objectives and
capabilities of partners to address common issues. Such resource allocations need to accommodate these influences.
partnerships may be a source of strategic advantage for your A focus on the future includes developing your leaders,
organization. workforce and suppliers; accomplishing effective succession
planning; creating opportunities for innovation; and
Successful internal and external partnerships develop longer- anticipating societal responsibilities and concerns.
term objectives, thereby creating a basis for mutual
investments and respect. Partners should address the key
requirements for success, means for regular communication,
approaches to evaluating progress, and means for adapting to
changing conditions. In some cases, joint education and
-3- 2010-2011 Business Criteria for Performance Excellence
Managing for Innovation your goals.
Innovation means making meaningful change to improve an Societal Responsibility
organization’s products, services, programs, processes, An organization’s leaders should stress responsibilities to the
operations, and business model to create new value for the public, ethical behavior, and the need to consider societal
organization’s stakeholders. Innovation should lead your well-being and benefit. Leaders should be role models for
organization to new dimensions of performance. Innovation your organization in focusing on ethics and protection of
is no longer strictly the purview of research and public health, safety, and the environment. The protection
development departments; innovation is important for all of health, safety, and the environment includes your
aspects of your operations and all work systems and work organization’s operations, as well as the life cycles of your
processes. Organizations should be led and managed so that products. Also, organizations should emphasize resource
innovation becomes part of the learning culture. Innovation conservation and waste reduction at the source. Planning
should be integrated into daily work and should be supported should anticipate adverse impacts from production,
by your performance improvement system. Systematic distribution, transportation, use, and disposal of your
processes for innovation should reach across your entire products. Effective planning should prevent problems,
organization. provide for a forthright response if problems occur, and
make available the information and support needed to
Innovation builds on the accumulated knowledge of your maintain public awareness, safety, and confidence.
organization and its people. Therefore, the ability to rapidly
disseminate and capitalize on this knowledge is critical to For many organizations, the product design stage is critical
driving organizational innovation. from the point of view of public responsibility. Design
decisions impact your production processes and often the
Management by Fact content of municipal and industrial waste. Effective design
Organizations depend on the measurement and analysis of strategies should anticipate growing environmental concerns
performance. Such measurements should derive from and responsibilities.
business needs and strategy, and they should provide critical
data and information about key processes, outputs, and Organizations should not only meet all local, state, and
results. Many types of data and information are needed for federal laws and regulatory requirements, but they should
performance management. Performance measurement treat these and related requirements as opportunities for
should include customer, product, and process performance; improvement “beyond mere compliance.” Organizations
comparisons of operational, market, and competitive should stress ethical behavior in all stakeholder transactions
performance; supplier, workforce, partner, cost, and and interactions. Highly ethical conduct should be a
financial performance; and governance and compliance requirement of and should be monitored by the
outcomes. Data should be segmented by, for example, organization’s governance body.
markets, product lines, and workforce groups to facilitate
analysis. “Societal well-being and benefit” refers to leadership and
support—within the limits of an organization’s resources—
Analysis refers to extracting larger meaning from data and of publicly important purposes. Such purposes might include
information to support evaluation, decision making, improving education and health care in your community,
improvement, and innovation. Analysis entails using data to pursuing environmental excellence, being a role model for
determine trends, projections, and cause and effect that socially important issues, practicing resource conservation,
might not otherwise be evident. Analysis supports a variety performing community service, improving industry and
of purposes, such as planning, reviewing your overall business practices, and sharing nonproprietary information.
performance, improving operations, accomplishing change Leadership as a role-model organization also entails
management, and comparing your performance with influencing other organizations, private and public, to
competitors’ or with “best practices” benchmarks. partner for these purposes.
A major consideration in performance improvement and Managing societal responsibilities requires the organization
change management involves the selection and use of to use appropriate measures and leaders to assume
performance measures or indicators. The measures or responsibility for those measures.
indicators you select should best represent the factors that
lead to improved customer, operational, financial, and Focus on Results and Creating Value
societal performance. A comprehensive set of measures or An organization’s performance measurements need to focus
indicators tied to customer and organizational performance on key results. Results should be used to create and balance
requirements provides a clear basis for aligning all value for your key stakeholders—your customers,
processes with your organization’s goals. Measures and workforce, stockholders, suppliers, partners, the public, and
indicators may need to support decision making in a rapidly the community. By creating value for your key stakeholders,
changing environment. Through the analysis of data from your organization builds loyalty, contributes to growing the
your tracking processes, your measures or indicators economy, and contributes to society. To meet the sometimes
themselves may be evaluated and changed to better support conflicting and changing aims that balancing value implies,
2010 -2011 Business Criteria for Performance Excellence -4-
organizational strategy explicitly should include key and actions meet Criteria Categories to
stakeholder requirements. This will help ensure that plans differing stakeholder ensure consistency of
needs and avoid adverse plans, processes,
impacts on any measures, and actions.
stakeholders. The use of a Integration builds on
balanced composite of alignment, so that the
leading and lagging individual components of
performance measures your performance
offers an effective means management system
to communicate short- operate in a fully
and longer-term interconnected manner
priorities, monitor actual and deliver anticipated
performance, and provide results.
a clear basis for
improving results. These concepts are
depicted in the Criteria
Systems Perspective for Performance
The Texas Award for Excellence Framework
Performance Excellence on page 6. A systems
Criteria provide a perspective includes your
systems perspective for senior leaders’ focus on
managing your strategic directions and
organization and its key on your customers. It
processes to achieve means that your senior
results—and to strive for leaders monitor, respond
performance excellence. to, and manage
The seven Criteria performance based on
Categories, the Core your results. A systems
Values, and the Scoring perspective also includes
Guidelines form the using your measures,
building blocks and the indicators, core
integrating mechanism competencies, and
for the system. However, organizational knowledge
successful management to build your key
of overall performance strategies. It means
requires organization- linking these strategies
specific synthesis, with your work systems
alignment, and and key processes and
integration. Synthesis aligning your resources to
means looking at your improve overall
organization as a whole performance and your
and builds on key focus on customers and
business attributes, stakeholders.
including your core
competencies, strategic Thus, a systems
objectives, action plans, perspective means
and work systems. managing your whole
Alignment means using organization, as well as
the key linkages among its components, to
requirements given in the achieve success.
CRITERIA FOR PERFORMANCE EXCELLENCE
The requirements of the follows:
Criteria for Performance 1 Leadership
Excellence are embodied 2 Strategic Planning
in seven Categories, as 3 Customer Focus
2010 -2011 Business Criteria for Performance Excellence -5-
4 Measurement, leadership focus on
Analysis, & Knowledge strategy and customers.
Management Senior leaders set your
5 Workforce Focus organizational direction
6 Process Management and seek future
7 Results opportunities for your
The figure below
provides the framework Workforce Focus
connecting and (Category 5), Process
integrating the Management (Category
Categories. From top to 6), and Results (Category
bottom, the framework 7) represent the results
has the following basic triad. Your organization’s
elements. workforce and key
processes accomplish the
Organizational Profile work of the organization
Your Organizational that yields your overall
Profile (top of figure) sets performance results.
the context for the way
your organization All actions point toward
operates. Your Results—a composite of
environment, key product, customer,
working relationships, market and financial, and
and strategic challenges internal operational
and advantages serve as performance results,
an overarching guide for including workforce,
your organizational leadership, governance,
performance management and societal
system. responsibility results.
System Operations The horizontal arrow in
The system operations the center of the
are composed of the six framework links the
Categories in the center leadership triad to the
of the figure that define results triad, a linkage
your operations and the critical to organizational
results you achieve. success. Furthermore, the
arrow indicates the
Leadership (Category 1), central relationship
Strategic Planning between Leadership
(Category 2), and (Category 1) and Results
Customer Focus (Category 7). The two-
(Category 3) represent headed arrows indicate
the leadership triad. the importance of
These Categories are feedback in an effective
placed together to performance management
emphasize the system.
importance of a
2010 -2011 Business Criteria for Performance Excellence -6-
System Foundation figure are subdivided into
Measurement, Analysis, Items and Areas to
and Knowledge Address.
4) are critical to the Items
effective management of There are 18 Items, each
your organization and to focusing on a major
a fact-based, knowledge- requirement. Item titles
driven system for and point values are
improving performance given on page 9. The
and competitiveness. Item format is shown on
Measurement, analysis, page 51.
management serve as a Areas to Address
foundation for the Items consist of one or
performance management more Areas to Address
system. (Areas). Organizations
should address their
Criteria Structure responses to the specific
The seven Criteria requirements of these
Categories shown in the Areas.
Criteria for Performance Excellence Framework: A Systems Perspective
Environment, Relationships, and Challenges
Measurement, Analysis, and Knowledge Management
2010 -2011 Business Criteria for Performance Excellence -7-
KEY CHARACTERISTICS OF THE CRITERIA
1. The Criteria focus on results.
The Criteria focus on the key areas of organizational 3. The Criteria support a systems perspective to
performance given below. maintaining organization-wide goal alignment.
The systems perspective to goal alignment is embedded in
Organizational performance areas: the integrated structure of the Core Values and Concepts, the
(1) product outcomes Organizational Profile, the Criteria, the Scoring Guidelines,
(2) customer-focused outcomes and the results-oriented, cause-effect, cross-process linkages
among the Criteria Items.
(3) financial and market outcomes
(4) workforce-focused outcomes Alignment in the Criteria is built around connecting and
(5) process effectiveness outcomes, including key reinforcing measures derived from your organization’s
operational performance results processes and strategy. These measures tie directly to
(6) leadership outcomes, including governance and societal customer and stakeholder value and to overall performance.
responsibility results The use of measures thus channels different activities in
consistent directions with less need for detailed procedures,
centralized decision making, or overly complex process
The use of this composite of measures is intended to ensure
management. Measures thereby serve both as a
that strategies are balanced—that they do not inappropriately
communications tool and as a basis for deploying consistent
trade off among important stakeholders, objectives, or short-
overall performance requirements. Such alignment ensures
and longer-term goals.
consistency of purpose while also supporting agility,
innovation, and decentralized decision making.
2. The Criteria are non-prescriptive and adaptable.
The Criteria are made up of results-oriented requirements. A systems perspective to goal alignment, particularly when
However, the Criteria do not prescribe: strategy and goals change over time, requires dynamic
how your organization should be structured; linkages among Criteria Items. In the Criteria, action-
that your organization should or should not have oriented cycles of improvement take place via feedback
departments for planning, ethics, quality, or other between processes and results.
that different units in your organization should be The improvement cycles have four, clearly defined stages:
managed in the same way. (1) planning, including design of processes, selection of
measures, and deployment of requirements (approach);
These factors differ among organizations, and they are likely (2) executing plans (deployment);
to change as needs and strategies evolve. (3) assessing progress and capturing new knowledge,
including seeking opportunities for innovation
The Criteria are non-prescriptive for the following reasons: (learning); and
(1) The focus is on results, not on procedures, tools, or (4) revising plans based on assessment findings,
organizational structure. Organizations are encouraged harmonizing processes and work unit operations, and
to develop and demonstrate creative, adaptive, and selecting better measures (integration).
flexible approaches for meeting requirements. Non-
prescriptive requirements are intended to foster
4. The Criteria support goal-based diagnosis.
incremental and major (“breakthrough”) improvements,
as well as basic change through innovation. The Criteria and the Scoring Guidelines make up a two-part
diagnostic (assessment) system. The Criteria are a set of 18
(2) The selection of tools, techniques, systems, and
performance-oriented requirements. The Scoring
organizational structure usually depends on factors such
Guidelines spell out the assessment dimensions—Process
as business type and size, organizational relationships,
and Results—and the key factors used to assess each
your organization’s stage of development, and the
dimension. An assessment thus provides a profile of
capabilities and responsibilities of your workforce.
strengths and opportunities for improvement relative to the
(3) A focus on common requirements, rather than on 18 performance-oriented requirements and relative to
common procedures, fosters understanding, process and performance maturity as determined by the
communication, sharing, alignment, and integration, Scoring Guidelines. In this way, assessment leads to actions
while supporting innovation and diversity in that contribute to performance improvement in all areas, as
approaches. described above. This diagnostic assessment is a useful
management tool that goes beyond most performance
reviews and is applicable to a wide range of strategies,
-8- 2010 -2011 Business Criteria for Performance Excellence
management systems, and types of organizations.
-9- 2010 -2011 Business Criteria for Performance Excellence
CHANGES FROM THE 2009 CRITERIA
The Criteria for Performance Excellence have evolved sustainability of their environmental, social, and economic
significantly over time to help organizations address a systems. The Criteria questions probe how you contribute to
dynamic environment, focus on strategy-driven the well-being of these systems and what your specific
performance, address concerns about governance and ethics, contributions have been. Is your organization fulfilling its
and, most recently, consider the key decisions driving both societal responsibilities?
short-term success and long-term organizational
The most significant changes in the Criteria and the Criteria
sustainability. The Criteria have continually progressed
booklet are summarized as follows:
toward a comprehensive, integrated systems perspective of
overall organizational performance management. The number of Areas to Address has increased
from 37 to 41 to increase clarity and definition; the
The year-to-year changes to the Criteria have been
number of Criteria Items remains unchanged at 18,
evolutionary. However, since the Program’s inception, the
plus 2 in the Preface: Organizational Profile.
changes to the Criteria have been revolutionary. They have
evolved from having a specific focus on manufacturing The Preface: Organizational Profile now
quality to a comprehensive strategic focus on overall includes your core competencies as a key
organizational competitiveness and sustainability. With each characteristic of your organizational environment.
update of the Criteria, the Program must balance two
Category 1, Leadership, includes an enhanced
important stakeholder considerations. On one hand, there is
focus on sustainability and societal responsibilities
a need for Criteria that are at the leading edge of validated
and the senior leaders’ role.
management practice to help users address the increasingly
complex challenges they face; on the other hand, there is a Category 2, Strategic Planning, introduces
desire for the Criteria to remain stable in order to provide core competencies as a strategic concept.
users continuity in their performance assessments. In 2009,
Category 3, Customer Focus, has been
minimal revisions were made, in light of the major revisions
redesigned around customer engagement and the
made in 2008. Continuing its efforts to balance stakeholders’
voice of the customer.
needs for both currency and stability, starting in 2010, the
Program is moving to a formal two-year revision cycle, Category 4, Measurement, Analysis, and
making these the 2010–2011 Criteria for Performance Knowledge Management, clearly separates but
Excellence. emphasizes both the importance of information
and knowledge management and the management
The most significant revisions to the 2010–2011 Criteria
of information technology and systems.
address three areas of importance: (1) customer focus, (2)
organizational core competencies, and (3) sustainability and Category 5, Workforce Focus, has been
societal responsibilities. simplified to add clarity and focus to important
aspects of workforce engagement.
The concept of customer engagement has received
increasing attention as organizations compete in a global Category 6, Process Management, has been
marketplace and in competitive local markets. The Criteria reorganized for a more logical flow of the questions.
questions probe your ability to identify and deliver relevant
Category 7, Results, has been aligned with the
product offerings to your customers now and in the future.
changes in Categories 1–6 to encourage the
The questions ask about your organization’s customer
measurement of important and appropriate results.
culture and how it contributes to customer engagement. The
questions probe how you listen to the voice of the customer The Core Value previously related to social
and, more importantly, how you use the information responsibility has been retitled and rewritten to
gathered. Is your organization customer focused? reflect the larger sustainability concepts embodied
in societal responsibility.
While core competencies were introduced as an important
concept in the 2008 Criteria, their strategic significance was Three terms have been added to the Glossary of
not fully exploited. The Criteria questions now probe the Key Terms: customer engagement, voice of the
relationship of your core competencies to your customer, and work processes. In addition, the
organization’s mission, strategy, and sustainability. Is your definition of sustainability has been expanded to
organization competent in the areas that will deliver its reflect societal aspects of organizational
Leading organizations are paying increased attention to the The Results Scoring Guidelines have been
2010 -2011 Business Criteria for Performance Excellence - 10 -
modified to specifically address performance Item 3.2, now Voice of the Customer, asks how
projection expectations in each scoring range. you obtain and use information from your
Also, performance projections have been included customers. It has three new Areas to Address: (1)
in the sample results figure presented in the Customer Listening, (2) Determination of
Guidelines for Responding to Results Items. Customer Satisfaction and Engagement, and (3)
Analysis and Use of Customer Data.
There have been some changes in all Criteria Items; the most
significant changes are highlighted below. Category 4: Measurement, Analysis, and Knowledge
Preface: Organizational Profile
Item 4.1, Measurement, Analysis, and
Item P.1, Organizational Description, now
Improvement of Organizational Performance,
includes a question related to the organization’s
now includes a separate Area to Address on
core competencies and their relation to the
Item 4.2, now Management of Information,
Item P.2, formerly Organizational Challenges, has
Knowledge, and Information Technology,
been retitled Organizational Situation to more
clarifies which Criteria requirements are related to
accurately reflect the broad focus of this Item.
information technology by including the term in
Category 1: Leadership the title of the second Area to Address,
Management of Information Resources and
Item 1.1, Senior Leadership, now includes a
question related to how senior leaders enhance
their personal leadership skills. Category 5: Workforce Focus
Item 1.2, now Governance and Societal Item 5.1, Workforce Engagement, still has three
Responsibilities, has an enhanced focus on Areas to Address, but the number of questions in
societal responsibilities. These responsibilities the multiple requirements has been reduced to
include conserving natural resources; assuming simplify and focus the requirements.
responsibility for your suppliers’ actions; and
considering the well-being of environmental, Category 6: Process Management
social, and economic systems to which your Item 6.1, Work Systems, has been modified for a
organization contributes. more logical flow of the questions. The three
Areas to Address are now: (1) Work Systems
Category 2: Strategic Planning Design; (2) Key Work Processes; and (3)
Item 2.1, Strategy Development, now includes Emergency Readiness.
core competencies as a key component of strategy
Item 6.2, now Work Processes, has three Areas to
development and organizational sustainability.
Address: (1) Work Process Design, (2) Work
Item 2.2, Strategy Deployment, now includes a Process Management, and (3) Work Process
question addressing the deployment of your action Improvement. Work Process Improvement
plans to key suppliers and partners. includes a question about how you incorporate the
results of organizational performance reviews into
Category 3: now Customer Focus the improvement of your work processes.
This Category has been totally redesigned with
two new Items. Category 7: Results
Item 7.2, Customer-Focused Outcomes, is
Item 3.1, now Customer Engagement, asks how
aligned with the revised Category 3, asking for
you engage customers to serve their needs and
results related to customer engagement.
build relationships. It has two Areas to Address:
(1) Product Offerings and Customer Support, and Item 7.6, Leadership Outcomes, now includes a
(2) Building a Customer Culture. question about your results for fulfillment of your
2010 -2011 Business Criteria for Performance Excellence - 11 -
2010 - 2011 CRITERIA FOR PERFORMANCE EXCELLENCE—ITEM LISTING
Preface: Organizational Profile
P.1 Organizational Description
P.2 Organizational Situations
Categories and Items Point Values
1.1 Senior Leadership 70
1.2 Governance and Societal Responsibilities 50
2 Strategic Planning___________________________________________________________________ 85
2.1 Strategy Development 40
2.2 Strategy Deployment 45
3 Customer Focus_____________________________________________________________________ 85
3.1 Customer Engagement 40
3.2 Voice of the Customer 45
4 Measurement, Analysis, and Knowledge Management_____________________________________ 90
4.1 Measurement, Analysis, and Improvement of Organizational Performance 45
4.2 Management of Information, Knowledge, and Information Technology 45
5 Workforce Focus____________________________________________________________________ 85
5.1 Workforce Engagement 45
5.2 Workforce Environment 40
6 Process Management ________________________________________________________________ 85
6.1 Work Systems 35
6.2 Work Processes 50
7.1 Product Outcomes 100
7.2 Customer-Focused Outcomes 70
7.3 Financial and Market Outcomes 70
7.4 Workforce-Focused Outcomes 70
7.5 Process Effectiveness Outcomes 70
7.6 Leadership Outcomes 70
2010 -2011 Business Criteria for Performance Excellence - 12 -
NOTE: The Scoring System used with the Criteria Items
in a Texas Award for Performance Excellence assessment can be found on pages 47-49.
2010 -2011 Business Criteria for Performance Excellence - 13 -
2010-2011 CRITERIA FOR PERFORMANCE EXCELLENCE
Importance of Beginning with Your Organizational Profile
Your Organizational Profile is critically important because:
it is the most appropriate starting point for self-assessment and for writing an application;
it helps you identify potential gaps in key information and focus on key performance requirements and results;
it is used by the Examiners and Judges in application review, including the site visit, to understand your organization and
what you consider important (you will be assessed using the Criteria requirements in relation to your organization’s
environment, relationships, influences, and challenges, as presented in your Organizational Profile); and
it also may be used by itself for an initial self-assessment. If you identify topics for which conflicting, little, or no
information is available, it is possible that the Organizational Profile can serve as your complete assessment, and you can
use these topics for action planning.
PREFACE: ORGANIZATIONAL PROFILE
The Organizational Profile is a snapshot of your organization, the KEY influences on HOW you
operate, and the KEY challenges you face.
P.1 Organizational Description: What are your key organizational characteristics?
Describe your organization’s operating environment and your KEY relationships with CUSTOMERS, suppliers, PARTNERS,
Within your response, include answers to the following questions:
a. Organizational Environment
(1) What are your organization’s main product offerings (see Note 1 below)? What are the delivery
mechanisms used to provide your products to your CUSTOMERS?
(2) What are the KEY characteristics of your organizational culture? What are your stated PURPOSE, VISION,
VALUES, and MISSION? What are your organization’s CORE COMPETENCIES and their relationship to your
(3) What is your WORKFORCE profile? What are your WORKFORCE or employee groups and SEGMENTS? What
are their KEY requirements and expectations? What are their education levels? What are your
organization’s WORKFORCE and job DIVERSITY, organized bargaining units, KEY benefits, and special
health and safety requirements?
(4) What are your major facilities, technologies, and equipment?
(5) What is the regulatory environment under which your organization operates? What are the applicable
occupational health and safety regulations; accreditation, certification, or registration requirements;
relevant industry standards; and environmental, financial, and product regulations?
b. Organizational Relationships
(1) What are your organizational structure and GOVERNANCE system? What are the reporting relationships
among your GOVERNANCE board, SENIOR LEADERS, and parent organization, as appropriate?
(2) What are your KEY market SEGMENTS, CUSTOMER groups, and STAKEHOLDER groups, as appropriate? What
are their KEY requirements and expectations for your products, CUSTOMER support services, and
operations? What are the differences in these requirements and expectations among market SEGMENTS,
CUSTOMER groups and STAKEHOLDER groups?
(3) What are your KEY types of suppliers, PARTNERS, and COLLABORATORS? What role do these suppliers,
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PARTNERS, COLLABORATORS play in your WORK SYSTEMS and the production and delivery of your KEY
products and CUSTOMER support services? What are your KEY mechanisms for communicating and
managing relationships with suppliers, PARTNERS, and COLLABORATORS? What role, if any, do these
organizations play in your organizational INNOVATION PROCESSES? What are your key supply chain
N1. “Product offerings” and “products” (P.1a) refer requirements might include socially responsible
to the goods and services that your organization offers behavior and community service. For some nonprofit
in the marketplace. Mechanisms for product delivery to organizations, requirements also might include
your end-use customers might be direct or through administrative cost reductions, at-home services, and
dealers, distributors, collaborators, or channel partners. rapid response to emergencies.
Nonprofit organizations might refer to their product
N6. Communication mechanisms (P.1b) should be
offerings as programs, projects, or services.
two-way and in understandable language, and they
N2. “Core competencies” (P.1a) refers to your might be in person, via e-mail, Web-based, or by
organization’s areas of greatest expertise. Your telephone. For many organizations, these mechanisms
organization’s core competencies are those strategically may change as marketplace, customer, or stakeholder
important capabilities that are central to fulfilling your requirements change.
mission or provide an advantage in your marketplace or
N7. Customers (P.1a) include the users and
service environment. Core competencies frequently are
potential users of your products. In some nonprofit
challenging for competitors or suppliers and partners to
organizations, customers might include members,
imitate and provide a sustainable competitive
taxpayers, citizens, recipients, clients, and
beneficiaries. Market segments might be referred to as
N3. Workforce or employee groups and segments constituencies.
(including organized bargaining units) (P.1a) might
N8. Many nonprofit organizations rely heavily on
be based on the type of employment or contract
volunteers to accomplish their work. These
reporting relationship, location, tour of duty, work
organizations should include volunteers in the
environment, family-friendly policies, or other factors.
discussion of their workforce (P.1a).
N4. Customer groups (P.1b) might be based on
N9. For nonprofit organizations, relevant industry
common expectations, behaviors, preferences, or
standards (P.1a) might include industry wide codes
profiles. Within a group there may be customer
of conduct and policy guidance. The term “industry” is
segments based on differences and commonalities
used throughout the Criteria to refer to the sector in
within the group. Your markets might be subdivided
which you operate. For nonprofit organizations, this
into market segments based on product lines or features,
sector might be charitable organizations, professional
distribution channels, business volume, geography, or
associations and societies, religious organizations, or
other factors that your organization uses to define
government entities—or a subsector of one of these.
related market characteristics.
N10. For some nonprofit organizations, governance
N5. Customer group and market segment requirements
and reporting relationships (P.1b) might include
(P.1b) might include on-time delivery, low defect
relationships with major agency, foundation, or other
levels, safety, security, ongoing price reductions,
electronic communication, rapid response, after-sales
service, and multilingual services. Stakeholder group For additional description of this Item, see page 34.
Information for Understanding All Criteria Items
For definitions of key terms presented throughout the Criteria and Scoring Guidelines text in SMALL CAPS/SANS SERIF, see the
Glossary of Key Terms on pages 55–63.
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Frequently, several questions are grouped under one number (e.g., P.1a). These questions are related and do not require separate
responses. These multiple questions serve as a guide in understanding the full meaning of the information being requested.
The Items in the Criteria are divided into three groups: the Preface, which defines your organizational environment; Categories 1–
6, which define your organization’s Processes; and Category 7, which contains your Results for your organization’s processes.
Item notes serve three purposes: (1) to clarify terms or requirements presented in an Item; (2) to give instructions and examples for
responding to the Item requirements; and (3) to indicate key linkages to other Items. In all cases, the intent is to help you respond
to the Item requirements.
A number of Item notes include guidance specifically for nonprofit organizations. This information appears in italics.
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P.2 Organizational Challenges: What are your key strategic situations?
Describe your organization’s competitive environment, your KEY STRATEGIC CHALLENGES and ADVANTAGES, and your
system for PERFORMANCE improvement.
Within your response, include answers to the following questions:
a. Competitive Environment
(1) What is your competitive position? What are your relative size and growth in your industry or markets
served? What are the numbers and types of competitors for your organization?
(2) What are the principal factors that determine your success relative to your competitors? What are any KEY
changes taking place that affect your competitive situation, including opportunities for INNOVATION and
collaboration, as appropriate?
(3) What are your KEY available sources of comparative and competitive data from within your industry?
What are your KEY available sources of comparative data from outside your industry? What limitations, if
any, are there in your ability to obtain these data?
b. Strategic Context
What are your KEY business, operational, and human resource STRATEGIC CHALLENGES and ADVANTAGES? What are your
KEY STRATEGIC CHALLENGES and ADVANTAGES associated with organizational SUSTAINABILITY?
c. PERFORMANCE Improvement System
What are the KEY elements of your PERFORMANCE improvement system, including your evaluation, organizational
LEARNING AND INNOVATION PROCESSES?
N1. Principal factors (P.2a) might include differentiators improvement. Approaches to performance improvement that
such as your price leadership, design services, innovation are compatible with the systems approach provided by the
rate, geographic proximity, accessibility, and warranty and Criteria for Performance Excellence framework might
product options. For some nonprofit organizations, include implementing a Lean Enterprise System, applying
differentiators also might include your relative influence Six Sigma methodology, using ISO 9000 standards, or
with decision makers, ratio of administrative costs to employing other process improvement and innovation tools.
programmatic contributions, reputation for program or A growing number of organizations have implemented
service delivery, and wait times for service. specific processes for meeting goals in product and process
N2. Strategic challenges and advantages (P.2b) might relate
to technology, products, your operations, your customer N4. Nonprofit organizations frequently are in a very
support, your industry, globalization, your value chain, and competitive environment; they often must compete with
people. other organizations and with alternative sources for similar
services to secure financial and volunteer resources,
N3. Performance improvement (P.2c) is an assessment
membership, visibility in appropriate communities, and
dimension used in the Scoring System to evaluate the
maturity of organizational approaches and deployment (see
pages 47-49). This question is intended to help you and the N5. For nonprofit organizations, the term “business” (P.2b)
Texas Award for Performance Excellence Examiners set an is used throughout the Criteria to refer to your main mission
overall context for your approach to performance area or enterprise activity.
For additional description of this Item, see pages 34–35
For Texas Award for Performance Excellence applicants, the Organizational Profile is limited to five pages. These pages are not
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counted in the overall application page limit. Typing and formatting instructions for the Organizational Profile are the same as
for the application. These instructions are given in the Texas Award for Performance Excellence Application Forms, which can
be downloaded at www.texas-quality.org.
1 LEADERSHIP (120 PTS.)
The Leadership Category examines HOW your organization’s SENIOR LEADERS personal actions
guide and sustain your organization. Also examined are your organization’s GOVERNANCE system
and HOW your organization fulfills its legal, ethical, and societal responsibilities and supports its
1.1 Senior Leadership: How do your senior leaders lead? (70 pts.) Process
Describe HOW SENIOR LEADERS’ action guide and sustain your organization. Describe HOW SENIOR LEADERS
communicate with your WORKFORCE and encourage HIGH PERFORMANCE.
Within your response, include answers to the following questions:
a. VISION, VALUES and MISSION
(1) HOW do SENIOR LEADERS set organizational VISION and VALUES? HOW do SENIOR LEADERS DEPLOY your
organization’s VISION and VALUES through your LEADERSHIP SYSTEM, to the WORKFORCE, to KEY suppliers and
PARTNERS, and to CUSTOMERS and other STAKEHOLDERS, as appropriate? HOW do SENIOR LEADERS’ personal
actions reflect a commitment to the organization’s VALUES?
(2) HOW do SENIOR LEADERS personally promote an organizational environment that fosters, requires, and
results in legal and ETHICAL BEHAVIOR?
(3) HOW do SENIOR LEADERS create a SUSTAINABLE organization? HOW do they create an environment for
organizational PERFORMANCE improvement, the accomplishment of your MISSION and STRATEGIC OBJECTIVES,
INNOVATION, competitive or role model PERFORMANCE leadership, and organizational agility? HOW do they
create an environment for organizational and WORKFORCE LEARNING? HOW do they develop and enhance
their personal leadership skills? HOW do they participate in organizational LEARNING, succession planning, and
in the development of future organizational leaders?
b. Communication and Organizational PERFORMANCE
(1) HOW do SENIOR LEADERS communicate with and engage the entire WORKFORCE? HOW do SENIOR LEADERS
encourage frank, two-way communication throughout the organization? HOW do SENIOR LEADERS
communicate KEY decisions? HOW do they take an active role in reward and recognition programs to
reinforce HIGH PERFORMANCE and a CUSTOMER and business focus?
(2) HOW do SENIOR LEADERS create a focus on action to accomplish the organization’s objectives, improve
PERFORMANCE, and attain its VISION? What PERFORMANCE MEASURES do SENIOR LEADERS regularly review
to identify needed actions? HOW do SENIOR LEADERS include a focus on creating and balancing VALUE for
CUSTOMERS and other STAKEHOLDERS in their organizational PERFORMANCE expectations?
N1. Organizational vision (1.1a) should set the context for concept of innovation includes both technological and
strategic objectives and action plans, which are described in organizational innovation to succeed in the future. A
Items 2.1 and 2.2. sustainable organization also ensures a safe and secure
environment for the workforce and other key stakeholders.
N2. A sustainable organization (1.1a) is capable of
An organization’s contributions to environmental, social,
addressing current business needs and possesses the agility
and economic systems beyond those of its workforce and
and strategic management to prepare successfully for its
immediate stakeholders are considered in its societal
future business and market environment. In this context, the
responsibilities (Item 1.2).
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N3. A focus on action (1.1b) considers the strategy, the N4. Your organizational performance results should be
workforce, the work systems, and the hard assets of your reported in Items 7.1–7.6.
organization. It includes both innovation and ongoing
N5. For nonprofit organizations that rely on volunteers to
improvements in productivity that may be achieved through
accomplish their work, responses to 1.1b(1) also should
eliminating waste or reducing cycle time, and it might use
discuss your efforts to communicate with and engage the
techniques such as Six Sigma and Lean. It also includes the
actions to accomplish your organization’s strategic
For additional description of this Item, see page 35.
1.2 Governance and Societal Responsibilities: How do you govern and address
your societal responsibilities? (50 pts.) Process
Describe your organization’s GOVERNANCE system and APPROACH to leadership improvement. Describe HOW your
organization assures legal and ETHICAL BEHAVIOR, fulfills its societal responsibilities, and supports its key communities.
Within your response, include answers to the following questions:
a. Organizational GOVERNANCE
(1) HOW does your organization review and achieve the following KEY aspects of your GOVERNANCE system:
•accountability for management’s actions
•transparency in operations and selection of and disclosure policies for GOVERNANCE board members, as appropriate
•independence in internal and external audits
•protection of STAKEHOLDER and stockholder interests, as appropriate
(2) HOW do you evaluate the PERFORMANCE of your SENIOR LEADERS, including the chief executive? HOW do you evaluate
the PERFORMANCE of members of your GOVERNANCE board, as appropriate? HOW do SENIOR LEADERS and your
GOVERNANCE board use these PERFORMANCE reviews to further develop and to improve both their personal leadership
EFFECTIVENESS and that of your board and LEADERSHIP SYSTEM, as appropriate?
b. Legal and ETHICAL BEHAVIOR
(1) HOW do you address any adverse impacts on society of your products and operations? HOW do you anticipate public
concerns with current and future products operations? HOW do you prepare for these concerns in a proactive manner,
including conserving natural resources and using effective supply chain management PROCESSES, as appropriate? What
are your KEY compliance PROCESSES, MEASURES, and GOALS for achieving and surpassing regulatory and legal
requirements, as appropriate? What are your KEY PROCESSES, MEASURES, and GOALS for addressing risks associated
with your products and operations?
(2) HOW does your organization promote and ensure ETHICAL BEHAVIOR in all your interactions? What are your KEY
PROCESSES and MEASURES or INDICATORS for enabling and monitoring ETHICAL BEHAVIOR in your GOVERNANCE
structure, throughout your organization, and in interactions with CUSTOMERS, PARTNERS, suppliers, and other
STAKEHOLDERS? HOW do you monitor and respond to breaches of ETHICAL BEHAVIOR?
c. Societal Responsibilities and Support of KEY Communities
(1) HOW do you consider societal well-being and benefit as part of your strategy and daily operations? HOW do you
consider the well-being of environmental, social, and economic systems to which your organization does or may
(2) HOW does your organization actively support and strengthen your KEY communities? What are your KEY communities?
HOW do you identify these communities and determine areas for organizational involvement, including areas related to
your CORE COMPETENCIES? HOW do your SENIOR LEADERS, in concert with your WORKFORCE, contribute to improving
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