SlideShare a Scribd company logo
1 of 10
Download to read offline
by Tyler Gaskill, contributing editor
Financial institution elevates
performance with culture
change and process
approach
Elevating
Excellence
In 50 Words
Or Less
•	 Elevations Credit Union
(ECU) became the first
credit union to receive a
Baldrige award after re-
vamping its culture with
a process mindset.
•	 Eliminating fear of ask-
ing tough questions,
training employees on
quality tools and using
a structured approach
to planning and deci-
sion making helped ECU
thrive during the recent
recession.
October 2015 • QP 33
BALDRIGE AWARD
THERE’S RARELY ONE miraculous
innovation or change that suddenly launches
an organization into the performance strato-
sphere. Author Jim Collins describes an or-
ganization’s transition from good to great as
a process of slow gains reaped through deep
commitment to improvement and arduous
effort. He calls this the flywheel effect.1
Initially producing even a slight move-
ment in a heavy, metal, horizontal flywheel
requires extreme effort, but as the wheel
makes its first revolution, momentum picks
up, and it moves faster and more easily. This
happens each time around until the wheel
has built enough velocity to easily sustain
tremendous speed.
Gerry Agnes, president and CEO of Eleva-
tions Credit Union (ECU) in Boulder, CO,
explained this was how it seemed when ECU
started its journey toward revolutionizing
the organization and receiving the Malcolm
Baldrige National Quality Award.
QP • www.qualityprogress.com34
“The momentum started picking up with those small
victories and turning into larger and larger victories,”
Agnes said. “The whole team was rallying behind this
framework, and it realized that through this journey, we
were not only going to create a successful environment
for today, but also for generations to come.”
ECU—a member-owned credit union with 11
branches and 380 employees serving more than
110,000 people—was a 2014 Baldrige award recipient
in the nonprofit category, and it was the first credit
union to receive a Baldrige award.
Of 22 applicants, two healthcare organizations and
a business advisory service also received the award
(see “2014 Baldrige Recipients,” pp. 38-39). The Bald-
rige award is the highest presidential award for per-
formance excellence. Before an organization can be
considered for the award, it must receive its state’s top
excellence award.
ECU won the Rocky Mountain Performance Excel-
lence Peak award in February 2014 and applied for the
Baldrige award soon after.2
Receiving the Baldrige
award was recognition of the financial institution’s
five-year journey, which boosted its performance to
new levels (see Figure 1).
From 2009-2014, ECU experienced significant im-
provement in its annual growth rates of membership,
assets and capital. Its annual capital growth rate from
2009-2014 was 15 times greater than its rate the previ-
ous four years, almost twice that of its peer group.
The financial milestones also were a reflection of
ECU’s dedicated employees, whose engagement rose
from 69 to 82% between 2010-2015. (See the online side-
bar “Engaged and Loyal” on this article’s webpage at
www.qualityprogess.com to learn how ECU improved
engagement.) In mortgage market share, ECU moved
from ranking sixth or seventh in Boulder County to
No. 1 (see Figure 2), and many of these financial and
cultural successes occurred during one of the worst
economic crises since the Great Depression.3
“If I were to summarize it this way, it took us 55
years to grow our capital to about $63.5 million,” Ag-
nes said. “And in the next seven years, we’re just under
$150 million.
“Credit unions are community-based organizations
designed to exist in perpetuity. But not all of them
do. That last financial crisis showed that, and so our
purpose was to create an organization that was sus-
tainable and successful regardless of what that future
economic or operating environment is,” he said.
Big, hairy, audacious goal
Agnes interviewed for the CEO position in July 2008,
and Baldrige was a factor in hiring him. “They asked,
‘What approach might you bring?’” Agnes said. “It was
very clear to me that it would be centered around re-
ally audacious excellence, and Baldrige would be the
framework for that.”
He joined ECU in August 2008, a month before the
fourth-largest U.S. investment bank, Lehman Brothers
Holdings Inc., filed for Chapter 11 bankruptcy protec-
tion.4
“It was a very, very important time for Elevations
to be asking a serious question about what framework
[the organization] would deploy to ensure success re-
gardless of the economic environment,” Agnes said.
In April 2009, ECU adopted what it called its big,
hairy, audacious goal of receiving the Baldrige award.
Before and after Baldrige journey results / FIGURE 1
3%
10%
5%
0%
1%
6%
8%
2004−2008 2009−2014
Capital
Annual growth rate
Members
Annual growth rate
Assets
Annual growth rate
Peer group average
Elevations Credit Union
Peer group average
Elevations Credit Union
Peer group average
Elevations Credit Union
10%
5%
0%
2004−2008 2009−2014
10%
5%
0%
2004−2008 2009−2014
6%
1% 1%
7%
8%
6%
15%
9%
October 2015 • QP 35
Agnes described the beginning of the journey as a pain
curve (see Figure 3, p. 37). The pain came after the
organization took a hard look at the details of its per-
formance results and realized its perception of itself
didn’t match reality.
Challenging questions
Before ECU could overcome the pain curve, it faced
a serious cultural obstacle: fear. For 15 years prior to
2011, ECU had run on the same core operating sys-
tem—used for all transactions that went through the
organization. If ECU was a body, the core operating sys-
tem was its heart. According to Agnes, its heart wasn’t
healthy, and the organization was like a patient afraid to
ask the doctor about the truth of its condition.
“During a strategic planning session,” Agnes said,
“one of our leaders boldly asked, ‘When are we going
to address our core operating system?’ And when that
question got asked, you could hear a pin drop in the
room. Everybody was kind of uncomfortable in their
chairs. What it told me was … it was really not safe to
ask hard questions.”
To learn more, Agnes started asking frontline staff
members what they thought about the system, and he
discovered they hated it. Agnes asked IT personnel for
their feedback, thinking that if the frontline hated it,
the back office would love it, but IT hated it, too.
ECU’s board of directors approved $10 million (15%
of its capital that took 55 years to accumulate) to per-
form an organizational heart transplant and install a
new system. It went live in 2011.
“What that demonstrated to our team was: It’s not
only OK, but we actually encourage you to challenge
our processes and ask the hard questions,” Agnes said.
“To have an environment where it’s safe to ask and an-
swer these really important questions … that’s when
we started gaining momentum.”
Intramural to professional
Prior to using the Baldrige criteria, ECU had proce-
dures, but Pete Reicks, ECU’s senior vice president
of enterprise performance excellence, explained that
they weren’t governed, weren’t always accurate, didn’t
consider up or downstream effects, and were not
embedded in the overall processes they supported.
Today, ECU has 460 documented and governed
A USE CASE is mapped through processes using string.ECU EMPLOYEES DETERMINE process inputs and outputs.
(Photos courtesy of Elevations Credit Union)
BALDRIGE AWARD
Growth in mortgage market
share / FIGURE 2
Boulder County
30%
20%
10%
0%
JPMorgan
Chase
Wells
Fargo
Elevations
Credit Union
2011 2012 2013 2014
QP • www.qualityprogress.com36
processes. The turnaround is an achievement of
ECU’s business process management (BPM): a meth-
od that helps employees build documented work pro-
cesses that are understood and agreed on, and create
detailed views of in-process strategy executions. It
provided a clearer picture of the organization’s activi-
ties and their measurements for success, allowing for
more meaningful employee performance feedback
and effective learning cycles.
Reicks said deploying the BPM method was compa-
rable to an athlete’s move from an intramural sport to
a professional league.
“[In intramural sports], everybody shows up and
they try really hard,” Reicks said. “But there’s no going
into the game with a plan or a sense for what your per-
formance measures of success will look like afterward
other than the ultimate-outcome scoreboard. [BPM] is
competing in a way where you build a strategy that un-
derstands what you’re good at and how you’re going to
deliver that value against the competition to your cus-
tomers. And then doing it in a way where you actually
have your activities documented, understood, agreed
upon, practiced and then executed.”
A survey of ECU employees revealed 87% of employ-
ees worked without systematic documented process-
es.5
For deep process knowledge, ECU often depended
on a handful of key individual performers who had ev-
erything documented, but the documents existed only
in their heads. This hoarded knowledge led to delays
in decision making for items with cross-functional im-
pacts.
“We had a culture that focused on doing the right
things,” said Michael Calcote, ECU’s CFO. “But not
enough with regard to written-down processes. If you
were to go to any one of our 11 different branches, you
might have 11 different experiences as a member be-
cause we weren’t systematic in how we were deliver-
ing our services.”
Getting these experts to document knowledge as-
sets (items such as desk-level procedures, letters,
notices or forms) and their processes was another
cultural hurdle. Some feared documenting their ex-
pertise, questioning whether they’d still be of value
after it was available to anyone.
“The answer was most definitely, ‘You’re still of val-
ue,’” Reicks said. “More people understand what you
understand. More people are able to give feedback.
Together, we’re smarter than apart.”
Before using the BPM method, ECU researched
other quality improvement approaches, such as Six
Sigma and lean. When ECU decided to use BPM, it
didn’t isolate the improvement efforts to a few indi-
viduals in a corner of the organization.
“Instead of just trying to drop a couple lean Six
ECU’S SPECIAL FORCES Team stands for a team photo.
October 2015 • QP 37
Sigma Black Belts into a specific value stream,” Reicks
said, “and then say, ‘Hey look people. We saved so
much money. How can you not do this in your area?
We’ll parachute in and do it for you.’ Instead, we took a
different approach. We involved the entire leadership
team and, by default, the entire organization. And we
kept it pretty basic.”
Peanut butter and SIPOC
ECU conducted staff training sessions in which the pro-
cesses they owned were mapped on walls with sticky
notes, and use cases were tested with string and col-
ored markers. While educating staff, ECU recognized
the importance of keeping it simple and fun. For exam-
ple, a suppliers, inputs, process, outputs and customers
(SIPOC) diagram was taught using a peanut butter and
jelly sandwich as an example.
The team was asked seemingly simple questions.
Q: If you’re going to make a peanut butter and jelly
sandwich, who’s your supplier?
A: The grocery store.
Q: What are your inputs?
A: Bread, peanut butter and jelly.
When the team was asked, “What are your process-
es?” it had fun arguing about whether peanut butter
or jelly goes on first, or how to make one sandwich
versus many. For the outcome, some people kept the
sandwiches whole, and others cut them into squares
or triangles. Then everyone was asked, “Who’s your
customer?”
“And we flashed up a screen of a bunch of kids with
peanut butter and jelly smeared all over their faces,”
Reicks said. “Did you ask these customers what they
BALDRIGE AWARD
The pain curve / FIGURE 3
Baldrige internal
assessment
2008
Good
Great
Actual
Perception
2009 2010 2011 2012 2013 2014 2015
RMPEX organizational
profile feedback
RMPEX = Rocky Mountain Performance Excellence
RMPEX Peak feedback:
close, but not quite
RMPEX Peak award
Baldrige award
Performanceexcellence
Humility
Flywheel effect
Confirmation
RMPEX Timberline award
Core conversion; online
banking conversion;
centralized lending;
merger*
* Elevations Credit Union (ECU) merged with St. Vrain Valley Credit Union in 2011. That year, ECU said it took on too many projects and
threw a large amount of resources at its improvement efforts (core operating and online banking systems conversion, and moving
lending decisions from branches into a centralized department).
Before process After process Quantifiable
improvement
30-day average
funding of home
equity loans
14.5-day average
funding of home equity
loans
51% reduction in time
from loan application
to funding
11.5-day average
funding of vehicle
loans
4.5-day average funding
of vehicle loans
60% reduction in time
from loan application
to funding
175 loans per
underwriter/month
capacity
300 loans per
underwriter/month
capacity
71% increase in
loans handled per
underwriter
BPM = business process management
BPM’s effect on loan funding
and underwriter capacity / TABLE 1
QP • www.qualityprogress.com38
ST. DAVID’S HEALTHCARE (SDH)
Because low quality can lead to lost lives, healthcare organiza-
tions understand improvement never stops. SDH, which includes
more than 90 locations in central Texas, was honored to receive
the Malcolm Baldrige National Quality Award in 2014, but David
Huffstutler, SDS president and chief executive officer, recognized
it as a testament to the organization’s efforts, not the end of a
journey.
“To whom much is given, much is expected. We all recognize
that with this designation comes tremendous responsibility … We’ll
continue to raise the bar and push ourselves to be the very best
for our patients, physicians, employees and our community,” said
Huffstutler.
SDH has more than 8,000 employees and operates six hospitals,
six ambulatory surgery centers, four emergency departments, four
urgent care clinics, and several physician practices and rehabilita-
tion facilities.
Since 2009, SDH’s composite performance on Centers for Medi-
care and Medicaid Services (CMS) reported core measurements
have been in the top 10% of healthcare organizations. Its door-to-
balloon time in treating heart attacks—in which a clot completely
blocks the coronary artery—has been ranked in the top 10% by the
American College of Cardiology since 2010.
SDH was named one of the “top 100 best places to work” by
Modern Healthcare magazine. It has an integrated labor productiv-
ity management process, which uses volume forecasts, historical
and benchmark data, and internal staffing standards to assess
staffing needs. The organization works to retain its high-performing
nurses through its specialty nurse accelerated program. The pro-
gram speeds a nurse’s progression from novice to expert through
specialty training or certification.
Its patient satisfaction scores improved each year since 2009
and were addressed through its service excellence initiative, which
aims to meet patients’ needs at every stage of their experience.
SDH also invests in the needs of its community and has given 6% of
its net revenue to charity since 2007.
SOURCES:	
“Baldrige Awards Ceremony,” Youtube.com, http://tinyurl.com/sdhceremony.
National Institute of Standards and Technology, “Malcolm Baldrige National Quality Award
2014 Award Recipient, healthcare category,” NIST.gov, http://tinyurl.com/sdhrelease.
National Institute of Standards and Technology, St. David’s Healthcare 2014 Malcolm Baldrige
National Quality Award Application, NIST.gov, http://tinyurl.com/stdavidsapplication.
PR Newswire, “St. David’s Healthcare Earns Malcolm Baldrige Award, Nation’s Highest
Presidential Honor for Performance Excellence,” Bizjournals.com, http://tinyurl.com/
stdavidbaldrige.
HILL COUNTRY MEMORIAL (HCM)
On Valentine’s Day, 1971, HCM opened, and nearly the entire popu-
lation of Fredericksburg, TX, (about 5,000 people at the time) came
to tour the facility. Most of them had a vested interest in seeing it:
HCM was built with financial support from 93% of the community.
Its 2014 Baldrige award is recognition that it continues to deliver a
return on the rural community’s investment.
HCM is a nonprofit organization serving 10 counties in Texas
Hill Country—a 25-county region in central Texas. Its main campus
in Fredericksburg includes an 86-bed hospital and other facilities,
such as emergency and rehabilitation centers, a wellness center
and a hospice.
HCM has delivered on the community’s investment by being list-
ed in the top 10% nationally for patient safety, general surgery, joint
replacement and gastrointestinal care by Healthgrades.com. It also
ranked in the top 10% for patient experience scores according to
the CMS, and its Restore Joint Center was No. 1 in 2013 for patient
experience among 5,000 hospitals nationally. It was selected as one
of the “Top 100 Great Community Hospitals” by Becker’s Hospital
Review in 2014, and HCM’s pay-for-healthcare-performance (a
CMS program linking payment systems to value-based systems
to improve quality of care) was the best in Texas and ranked 57th
nationally.
A cross-functional team applied lean and plan-do-check-act
cycles to HCM’s operating room (OR) suites. By standardizing pre
and postoperative processes, streamlining workflows and creating
a new staffing model, on-time starts improved from 72 to 81%, OR
suite capacity increased 16% (equivalent to 40 operating days with
the same resource utilization), and surgical volume increased 7.6%.
Employee engagement and satisfaction is a priority for HCM.
Its scores ranked in the top 10% two years in a row. Using a “team
of champions” system, HCM defines effective plans, policies and
strategies to address staff development, workforce capability and
capacity needs, and recruitment.
“We are indebted to our community, supporters, physicians,
volunteers and every single staff member for this remarkable ac-
complishment,” said Jayne Pope, HCM CEO “We understand the
importance of rural healthcare in America, and we believe rural
healthcare [here] is world class.”
SOURCES:
“Hill Country Memorial 2014 Malcolm Baldrige National Quality Recipient,” Youtube.com,
http://tinyurl.com/hcmrecipient.
Hill Country Memorial, “About HCM,” http://tinyurl.com/abouthcm.
National Institute of Standards and Technology, Application for the 2014 Malcolm Baldrige
National Quality Award Application, NIST.gov, http://tinyurl.com/stdavidsapplication.
National Institute of Standards and Technology, “Malcolm Baldrige National Quality Award 2014
Award Recipient, Health Care Category,” NIST.gov, http://tinyurl.com/hcmrelease.
2014 BALDRIGE RECIPIENTS
October 2015 • QP 39
BALDRIGE AWARD
wanted? Because you made them a crust-off, wheat,
chunky peanut butter, grape-jelly sandwich. And
they wanted a crust-on, white, smooth peanut butter,
strawberry-jelly sandwich. Everything you just went
through was for naught.”
The exercise took the focus away from memoriz-
ing new jargon, and it illustrated how the concept
was something people did implicitly every day.
“With our kids, we ultimately figure out what it is
they want after we’ve made a few sandwiches that
they don’t eat,” Reicks said. “So why don’t we do that
with our customers? And so we just scaled up. We
went from something safe and innocuous, like pea-
nut butter and jelly sandwiches, to consumer lend-
ing, mortgage lending and ensuring we provide great
service for our membership.”
ECU eventually created an enterprise process
map: Every activity that delivered value to the fi-
nancial institution’s membership could be identified
by the activity necessary to deliver that value from
start to finish. Employees stopped viewing process-
es by department or profession and started break-
ing down organizational silos, helping them better
understand their roles and how the organization
PRICEWATERHOUSECOOPERS PUBLIC
SECTOR PRACTICE (PWC PSP)
With an upcoming U.S. presidential election, there will un-
doubtedly be much discussion about government effective-
ness and waste. While the nation focuses on the talk, PwC PSP
will be busy actually doing hands-on work to improve it.
PwC PSP—located in McLean, VA, with nearly 1,100 employ-
ees—is a business unit of PwC, providing advisory services in
management, technology and risk management for customers
such as the U.S. federal government, and state and local gov-
ernments. Receiving the Baldrige award in 2014 was a testa-
ment to PwC PSP’s dedication to its customers, staff develop-
ment and innovations.
In 2014, PwC PSP received a Gold Intranet Innovation Award
from Step Two Designs, a global firm that recognizes innovative
intranet ideas. PwC PSP received the award for its knowledge
gateway—a tool used to review and share knowledge through
a web-based platform and to allow employees to collaborate,
create insights and develop their skills.
Another tool employed by PwC PSP is its engagement man-
agement process (EMP). Used to listen for and seek actionable
feedback on the quality of its services throughout a project’s
life cycle, EMP has three phases: plan (understanding client re-
quirements), execute (project leaders monitor project activities
and hold recurring status meetings with clients) and contribute
(a closeout meeting for the client to provide additional perfor-
mance feedback).
EMP has led to impressive customer satisfaction scores in
the federal government’s contractor performance assessment
reports. In the “exceptional” or “very good” categories, PwC
PSP’s scores increased from 50% in
2008 to almost 100% in 2010 through
2014.
Its four-step strategic planning
process (observe, orient, decide and act)
has helped increase revenue growth
from $41 million in 2005 to $265 million
in 2014. Of firms serving the U.S. federal
government, PwC PSP was one of the
fastest growing organizations between
2011 and 2014.
PwC understands that by improving
itself, what it does can ultimately trickle
down to improve the lives of U.S. citi-
zens. “Across PwC, we are committed to
delivering quality, innovation and value
to all our stakeholders,” said Bob Moritz,
U.S. chairman and senior partner of
PwC. ”Our public sector practice exemplifies this commitment,
not only for the public entities and organizations we serve, but
ultimately for those they serve.”
SOURCES:
National Institute of Standards and Technology, Malcolm Baldrige National Quality Award
2014 Award Recipient, Service Category, NIST.gov, http://tinyurl.com/pwcpsprelease.
National Institute of Standards and Technology, PricewaterhouseCoopers Public Sector
2014 Malcolm Baldrige National Quality Award Application, NIST.gov, http://tinyurl.com/
pwcpspapplication.
Pricewaterhousecoopers, “PwC’s Public Sector Practice Receives the 2014 Baldrige
Award,” PWC.com, http://tinyurl.com/pwcbaldrige.
—T.G.
functioned as a team. In addition to unifying staff
members, BPM helped reduce loan processing times
(see Table 1, p. 37).
Process mapping transitioned from yarn and
sticky-note-covered walls to a digital cloud by using
Blueworks Live software, a business process map-
ping tool that allowed people to view and work on
processes simultaneously, keep audit trails and link
everything together.
The software ignited staff members’ interest in
creating processes, and their contribution quickly
spread. “People were truly going viral in their abil-
ity to build processes,” said Carla Wolfe, ECU’s vice
president of enterprise performance excellence.6
Today, a team called BPM Special Forces helps
leverage and improve ECU’s use of the method. This
volunteer group of employees is from all levels of the
organization, and they receive special training and
act as ECU’s licensed Blueworks users.
In early 2013, ECU introduced knowledge asset
governance and a reference desk, a central repository
of knowledge assets. On Oct. 1, 2014, 100% of the as-
sets were validated.
“The biggest thing BPM allowed us to do was make
that transition from a traditional organization kind of
built upon a line and box chart—with traditional de-
partments coming together to do various things—to
an organization that’s more focused on our custom-
ers and what it takes to drive value from a market
opportunity all the way to value delivered to a cus-
tomer,” Reicks said. “We can then assess how we did,
and take that information and put it right back into
the organization to get better.”
Get rhythm
While getting serious about process improvement,
ECU looked for a better approach to make, commu-
nicate and carry out decisions. It found operational
rhythm through a systematic series of monthly meet-
ings with clear objectives.
Before using operational rhythm and the Baldrige
criteria, Reicks described ECU’s performance re-
view, planning and decision-making processes as “a
lot of muscle power” that involved working harder,
longer and adding more meetings to already-filled
calendars.
“We had so many things going on that we coined a
term,” Reicks said. “We called it random acts of good-
ness. All the ideas were good, but they weren’t all nec-
essarily driving in the same direction.”
With operational rhythm, meetings became for-
malized forums with clear objectives, expected out-
puts and decision action items that would flow as
input into the next forum. Operational rhythm also
defined who would attend a meeting not by job title,
but by functional responsibility in a process the per-
son represented. ECU also adopted cross-functional
teams as part of its member loyalty improvements,
which you can read about in the online sidebar “En-
gaged and Loyal.”
ECU’s operational rhythm is accomplished by us-
ing three sequential monthly meetings called:
1.	Run the business.
2.	Production.
3.	Decide, plan and align.
Run the business—The organization checks
for friction points in its processes that go into value
streams for membership from start to finish. A car
loan application meeting, for example, will include
representatives from every related process catego-
ry—from the moment ECU contacted the member to
processing the loan, funding it, asking for member
feedback, and taking and applying that feedback.
Production—ECU’s products and services are re-
viewed to ensure they’re meeting goals. The organiza-
tion distills and harvests the best results from these
meetings and passes the information to the decide,
plan and align meeting.
Decide, plan and align—This meeting verifies
that ECU’s monthly operations align with its stra-
tegic direction and, if necessary, it makes adjust-
ments.
Having deployed processes allowed leaders to ar-
ticulate what was happening in their areas of the or-
ganization with meaningful data instead of anecdotal
information and showed other leaders the power of
documented processes. Focusing on data also helped
conversations become less emotional and reduced
the discomfort employees might feel when they’re
told their units are underperforming.
“The Baldrige framework is really about culture
change.” Reicks said. “[It’s] about transitioning from
a bunch of hardworking, passionate people who care
about what they’re doing to providing the framework
by which they can work together as a team.”
Organizations will continue seeking one cure-all
QP • www.qualityprogress.com40
BALDRIGE AWARD
October 2015 • QP 41
improvement despite knowing better, and Reicks has advice
for them, especially those that view the Baldrige criteria as a
fast-acting, magic elixir:
“Just go ahead and put that 58-page booklet down because
that won’t work. Baldrige is an all-in effort. Everybody’s got
to be included.” He added, “If you’re looking for a quick-fix
win, continue to play that until you hit bottom and realize
there are no quick fixes. And if [those organizations] have
truly hit bottom in that area, they’ll be able to embrace the
Baldrige framework.” QP
REFERENCES
1.	Jim Collins, “Good to Great,” Fast Company, October 2001, http://tinyurl.com/
goodtogreatjc.
2.	“Malcolm Baldrige National Quality Award 2014 Recipient, Nonprofit Category,”
NIST.gov, http://tinyurl.com/ecubaldrige1.
3.	Brian Domitrovic, “The Worst Economic Crisis Since When?” Forbes, Feb. 5, 2013,
http://tinyurl.com/economiccrisissince.
4.	Yalman Onaran and Christopher Scinta, “Lehman Files Biggest Bankruptcy Case as
Suitors Balk,” Bloomberg, Sept. 15, 2008, http://tinyurl.com/fourthlargest.
5.	“Carla Wolfe on Elements of Excellence at 2015 Quest for Excellence Conference,”
YouTube.com, http://tinyurl.com/ora7vkq.
6.	Ibid.
Auditor Certification
ISO 9001 QMS /
ISO 14001 EMS
BY TRA CERTIFICATION INT’L
700 E Beardsley Ave., Ste 4A – Elkhart, IN 46514
800-398-9282 www.traCertification.com
Registration:
ISO Standards 9001, 14001,
50001, TL 9001, 22001,
27001, 29990, OHSAS 18001
Your key to Increased Sales & Profitability!
Management Systems
Do you have a funny, touching or
intriguing quality story to tell? Would you
like to share your story on your journey
into quality? If yes, the QP staff—and QP
readers—want to hear from you.
Over the years, Quality in the First Person
authors have written about using quality
tools and methods in their homes or a
chronicled a roundabout way they got in
the quality profession.
If you’d like your quality story to be
considered for Quality in the First Person,
please e-mail editor@asq.org.
Calling All
Quality
Writers

More Related Content

Viewers also liked

Medios Publicitarios
Medios PublicitariosMedios Publicitarios
Medios Publicitarios
logan2908
 
SES Fall 2015: Exiting Students from Special Education
SES Fall 2015: Exiting Students from Special EducationSES Fall 2015: Exiting Students from Special Education
SES Fall 2015: Exiting Students from Special Education
Fagen Friedman & Fulfrost
 

Viewers also liked (8)

Medios Publicitarios
Medios PublicitariosMedios Publicitarios
Medios Publicitarios
 
WEBD 162 Week 02 LWD4e
WEBD 162 Week 02 LWD4eWEBD 162 Week 02 LWD4e
WEBD 162 Week 02 LWD4e
 
Los productos que son comercializados dentro del esquema de la economía soci...
Los productos que son comercializados dentro del esquema  de la economía soci...Los productos que son comercializados dentro del esquema  de la economía soci...
Los productos que son comercializados dentro del esquema de la economía soci...
 
Mj Productions
Mj ProductionsMj Productions
Mj Productions
 
18 sept 2015 a
18 sept 2015 a18 sept 2015 a
18 sept 2015 a
 
Dicas de excel (10): PAYBACK SIMPLES (PAYBACK PERIOD)
Dicas de excel (10): PAYBACK SIMPLES (PAYBACK PERIOD)Dicas de excel (10): PAYBACK SIMPLES (PAYBACK PERIOD)
Dicas de excel (10): PAYBACK SIMPLES (PAYBACK PERIOD)
 
SES Fall 2015: Exiting Students from Special Education
SES Fall 2015: Exiting Students from Special EducationSES Fall 2015: Exiting Students from Special Education
SES Fall 2015: Exiting Students from Special Education
 
English for business - short notes
English for business - short notesEnglish for business - short notes
English for business - short notes
 

Similar to elevating-excellence

3 organizational effectiveness report
3 organizational effectiveness report3 organizational effectiveness report
3 organizational effectiveness report
mikegggg
 
3. Audit Committee May 2013
3. Audit Committee May 20133. Audit Committee May 2013
3. Audit Committee May 2013
Zowie Murray
 
gpi_cs_03-07-pdf.pdf
gpi_cs_03-07-pdf.pdfgpi_cs_03-07-pdf.pdf
gpi_cs_03-07-pdf.pdf
Madushan3
 

Similar to elevating-excellence (20)

Does your approach to Performance Management ‘Sing’ or ‘Sting’?
Does your approach to  Performance Management  ‘Sing’ or ‘Sting’?Does your approach to  Performance Management  ‘Sing’ or ‘Sting’?
Does your approach to Performance Management ‘Sing’ or ‘Sting’?
 
3 organizational effectiveness report
3 organizational effectiveness report3 organizational effectiveness report
3 organizational effectiveness report
 
QA Corporate Compliance Newsletter
QA Corporate Compliance NewsletterQA Corporate Compliance Newsletter
QA Corporate Compliance Newsletter
 
Credit Union Find Communication is the Foundation to Successful Merger
Credit Union Find Communication is the Foundation to Successful MergerCredit Union Find Communication is the Foundation to Successful Merger
Credit Union Find Communication is the Foundation to Successful Merger
 
2008 Employee Engagement Overview
2008 Employee Engagement Overview2008 Employee Engagement Overview
2008 Employee Engagement Overview
 
Eliza Bryant
Eliza BryantEliza Bryant
Eliza Bryant
 
What prevents work from flowing smoothly? Making sense of organization impedi...
What prevents work from flowing smoothly? Making sense of organization impedi...What prevents work from flowing smoothly? Making sense of organization impedi...
What prevents work from flowing smoothly? Making sense of organization impedi...
 
Webinar - 2023 New Year HR and Comp Panel.pdf
Webinar - 2023 New Year HR and Comp Panel.pdfWebinar - 2023 New Year HR and Comp Panel.pdf
Webinar - 2023 New Year HR and Comp Panel.pdf
 
Leading from Within
Leading from WithinLeading from Within
Leading from Within
 
Understanding-Business-Excellence rajesh.vesawkar@facebook.com sms +91-09321...
Understanding-Business-Excellence  rajesh.vesawkar@facebook.com sms +91-09321...Understanding-Business-Excellence  rajesh.vesawkar@facebook.com sms +91-09321...
Understanding-Business-Excellence rajesh.vesawkar@facebook.com sms +91-09321...
 
Pay and Demise of Performance Management
Pay and Demise of Performance ManagementPay and Demise of Performance Management
Pay and Demise of Performance Management
 
Feedback from the frontlines
Feedback from the frontlinesFeedback from the frontlines
Feedback from the frontlines
 
FREE 17 Sample Engineering Reports In PD
FREE 17 Sample Engineering Reports In PDFREE 17 Sample Engineering Reports In PD
FREE 17 Sample Engineering Reports In PD
 
The State of The Chief Compliance Officer 2018 - SAI Global
The State of The Chief Compliance Officer 2018 - SAI GlobalThe State of The Chief Compliance Officer 2018 - SAI Global
The State of The Chief Compliance Officer 2018 - SAI Global
 
HOSTILE TAKE-OVER: The Change Story of the Merger of IBPLC/ACCESS Bank Nigeri...
HOSTILE TAKE-OVER: The Change Story of the Merger of IBPLC/ACCESS Bank Nigeri...HOSTILE TAKE-OVER: The Change Story of the Merger of IBPLC/ACCESS Bank Nigeri...
HOSTILE TAKE-OVER: The Change Story of the Merger of IBPLC/ACCESS Bank Nigeri...
 
Bpefs 2014-pdfw
Bpefs 2014-pdfwBpefs 2014-pdfw
Bpefs 2014-pdfw
 
50 best workplaces of the year 2019
50 best workplaces of the year 201950 best workplaces of the year 2019
50 best workplaces of the year 2019
 
Strategic management
Strategic managementStrategic management
Strategic management
 
3. Audit Committee May 2013
3. Audit Committee May 20133. Audit Committee May 2013
3. Audit Committee May 2013
 
gpi_cs_03-07-pdf.pdf
gpi_cs_03-07-pdf.pdfgpi_cs_03-07-pdf.pdf
gpi_cs_03-07-pdf.pdf
 

elevating-excellence

  • 1. by Tyler Gaskill, contributing editor Financial institution elevates performance with culture change and process approach Elevating Excellence In 50 Words Or Less • Elevations Credit Union (ECU) became the first credit union to receive a Baldrige award after re- vamping its culture with a process mindset. • Eliminating fear of ask- ing tough questions, training employees on quality tools and using a structured approach to planning and deci- sion making helped ECU thrive during the recent recession.
  • 2. October 2015 • QP 33 BALDRIGE AWARD THERE’S RARELY ONE miraculous innovation or change that suddenly launches an organization into the performance strato- sphere. Author Jim Collins describes an or- ganization’s transition from good to great as a process of slow gains reaped through deep commitment to improvement and arduous effort. He calls this the flywheel effect.1 Initially producing even a slight move- ment in a heavy, metal, horizontal flywheel requires extreme effort, but as the wheel makes its first revolution, momentum picks up, and it moves faster and more easily. This happens each time around until the wheel has built enough velocity to easily sustain tremendous speed. Gerry Agnes, president and CEO of Eleva- tions Credit Union (ECU) in Boulder, CO, explained this was how it seemed when ECU started its journey toward revolutionizing the organization and receiving the Malcolm Baldrige National Quality Award.
  • 3. QP • www.qualityprogress.com34 “The momentum started picking up with those small victories and turning into larger and larger victories,” Agnes said. “The whole team was rallying behind this framework, and it realized that through this journey, we were not only going to create a successful environment for today, but also for generations to come.” ECU—a member-owned credit union with 11 branches and 380 employees serving more than 110,000 people—was a 2014 Baldrige award recipient in the nonprofit category, and it was the first credit union to receive a Baldrige award. Of 22 applicants, two healthcare organizations and a business advisory service also received the award (see “2014 Baldrige Recipients,” pp. 38-39). The Bald- rige award is the highest presidential award for per- formance excellence. Before an organization can be considered for the award, it must receive its state’s top excellence award. ECU won the Rocky Mountain Performance Excel- lence Peak award in February 2014 and applied for the Baldrige award soon after.2 Receiving the Baldrige award was recognition of the financial institution’s five-year journey, which boosted its performance to new levels (see Figure 1). From 2009-2014, ECU experienced significant im- provement in its annual growth rates of membership, assets and capital. Its annual capital growth rate from 2009-2014 was 15 times greater than its rate the previ- ous four years, almost twice that of its peer group. The financial milestones also were a reflection of ECU’s dedicated employees, whose engagement rose from 69 to 82% between 2010-2015. (See the online side- bar “Engaged and Loyal” on this article’s webpage at www.qualityprogess.com to learn how ECU improved engagement.) In mortgage market share, ECU moved from ranking sixth or seventh in Boulder County to No. 1 (see Figure 2), and many of these financial and cultural successes occurred during one of the worst economic crises since the Great Depression.3 “If I were to summarize it this way, it took us 55 years to grow our capital to about $63.5 million,” Ag- nes said. “And in the next seven years, we’re just under $150 million. “Credit unions are community-based organizations designed to exist in perpetuity. But not all of them do. That last financial crisis showed that, and so our purpose was to create an organization that was sus- tainable and successful regardless of what that future economic or operating environment is,” he said. Big, hairy, audacious goal Agnes interviewed for the CEO position in July 2008, and Baldrige was a factor in hiring him. “They asked, ‘What approach might you bring?’” Agnes said. “It was very clear to me that it would be centered around re- ally audacious excellence, and Baldrige would be the framework for that.” He joined ECU in August 2008, a month before the fourth-largest U.S. investment bank, Lehman Brothers Holdings Inc., filed for Chapter 11 bankruptcy protec- tion.4 “It was a very, very important time for Elevations to be asking a serious question about what framework [the organization] would deploy to ensure success re- gardless of the economic environment,” Agnes said. In April 2009, ECU adopted what it called its big, hairy, audacious goal of receiving the Baldrige award. Before and after Baldrige journey results / FIGURE 1 3% 10% 5% 0% 1% 6% 8% 2004−2008 2009−2014 Capital Annual growth rate Members Annual growth rate Assets Annual growth rate Peer group average Elevations Credit Union Peer group average Elevations Credit Union Peer group average Elevations Credit Union 10% 5% 0% 2004−2008 2009−2014 10% 5% 0% 2004−2008 2009−2014 6% 1% 1% 7% 8% 6% 15% 9%
  • 4. October 2015 • QP 35 Agnes described the beginning of the journey as a pain curve (see Figure 3, p. 37). The pain came after the organization took a hard look at the details of its per- formance results and realized its perception of itself didn’t match reality. Challenging questions Before ECU could overcome the pain curve, it faced a serious cultural obstacle: fear. For 15 years prior to 2011, ECU had run on the same core operating sys- tem—used for all transactions that went through the organization. If ECU was a body, the core operating sys- tem was its heart. According to Agnes, its heart wasn’t healthy, and the organization was like a patient afraid to ask the doctor about the truth of its condition. “During a strategic planning session,” Agnes said, “one of our leaders boldly asked, ‘When are we going to address our core operating system?’ And when that question got asked, you could hear a pin drop in the room. Everybody was kind of uncomfortable in their chairs. What it told me was … it was really not safe to ask hard questions.” To learn more, Agnes started asking frontline staff members what they thought about the system, and he discovered they hated it. Agnes asked IT personnel for their feedback, thinking that if the frontline hated it, the back office would love it, but IT hated it, too. ECU’s board of directors approved $10 million (15% of its capital that took 55 years to accumulate) to per- form an organizational heart transplant and install a new system. It went live in 2011. “What that demonstrated to our team was: It’s not only OK, but we actually encourage you to challenge our processes and ask the hard questions,” Agnes said. “To have an environment where it’s safe to ask and an- swer these really important questions … that’s when we started gaining momentum.” Intramural to professional Prior to using the Baldrige criteria, ECU had proce- dures, but Pete Reicks, ECU’s senior vice president of enterprise performance excellence, explained that they weren’t governed, weren’t always accurate, didn’t consider up or downstream effects, and were not embedded in the overall processes they supported. Today, ECU has 460 documented and governed A USE CASE is mapped through processes using string.ECU EMPLOYEES DETERMINE process inputs and outputs. (Photos courtesy of Elevations Credit Union) BALDRIGE AWARD Growth in mortgage market share / FIGURE 2 Boulder County 30% 20% 10% 0% JPMorgan Chase Wells Fargo Elevations Credit Union 2011 2012 2013 2014
  • 5. QP • www.qualityprogress.com36 processes. The turnaround is an achievement of ECU’s business process management (BPM): a meth- od that helps employees build documented work pro- cesses that are understood and agreed on, and create detailed views of in-process strategy executions. It provided a clearer picture of the organization’s activi- ties and their measurements for success, allowing for more meaningful employee performance feedback and effective learning cycles. Reicks said deploying the BPM method was compa- rable to an athlete’s move from an intramural sport to a professional league. “[In intramural sports], everybody shows up and they try really hard,” Reicks said. “But there’s no going into the game with a plan or a sense for what your per- formance measures of success will look like afterward other than the ultimate-outcome scoreboard. [BPM] is competing in a way where you build a strategy that un- derstands what you’re good at and how you’re going to deliver that value against the competition to your cus- tomers. And then doing it in a way where you actually have your activities documented, understood, agreed upon, practiced and then executed.” A survey of ECU employees revealed 87% of employ- ees worked without systematic documented process- es.5 For deep process knowledge, ECU often depended on a handful of key individual performers who had ev- erything documented, but the documents existed only in their heads. This hoarded knowledge led to delays in decision making for items with cross-functional im- pacts. “We had a culture that focused on doing the right things,” said Michael Calcote, ECU’s CFO. “But not enough with regard to written-down processes. If you were to go to any one of our 11 different branches, you might have 11 different experiences as a member be- cause we weren’t systematic in how we were deliver- ing our services.” Getting these experts to document knowledge as- sets (items such as desk-level procedures, letters, notices or forms) and their processes was another cultural hurdle. Some feared documenting their ex- pertise, questioning whether they’d still be of value after it was available to anyone. “The answer was most definitely, ‘You’re still of val- ue,’” Reicks said. “More people understand what you understand. More people are able to give feedback. Together, we’re smarter than apart.” Before using the BPM method, ECU researched other quality improvement approaches, such as Six Sigma and lean. When ECU decided to use BPM, it didn’t isolate the improvement efforts to a few indi- viduals in a corner of the organization. “Instead of just trying to drop a couple lean Six ECU’S SPECIAL FORCES Team stands for a team photo.
  • 6. October 2015 • QP 37 Sigma Black Belts into a specific value stream,” Reicks said, “and then say, ‘Hey look people. We saved so much money. How can you not do this in your area? We’ll parachute in and do it for you.’ Instead, we took a different approach. We involved the entire leadership team and, by default, the entire organization. And we kept it pretty basic.” Peanut butter and SIPOC ECU conducted staff training sessions in which the pro- cesses they owned were mapped on walls with sticky notes, and use cases were tested with string and col- ored markers. While educating staff, ECU recognized the importance of keeping it simple and fun. For exam- ple, a suppliers, inputs, process, outputs and customers (SIPOC) diagram was taught using a peanut butter and jelly sandwich as an example. The team was asked seemingly simple questions. Q: If you’re going to make a peanut butter and jelly sandwich, who’s your supplier? A: The grocery store. Q: What are your inputs? A: Bread, peanut butter and jelly. When the team was asked, “What are your process- es?” it had fun arguing about whether peanut butter or jelly goes on first, or how to make one sandwich versus many. For the outcome, some people kept the sandwiches whole, and others cut them into squares or triangles. Then everyone was asked, “Who’s your customer?” “And we flashed up a screen of a bunch of kids with peanut butter and jelly smeared all over their faces,” Reicks said. “Did you ask these customers what they BALDRIGE AWARD The pain curve / FIGURE 3 Baldrige internal assessment 2008 Good Great Actual Perception 2009 2010 2011 2012 2013 2014 2015 RMPEX organizational profile feedback RMPEX = Rocky Mountain Performance Excellence RMPEX Peak feedback: close, but not quite RMPEX Peak award Baldrige award Performanceexcellence Humility Flywheel effect Confirmation RMPEX Timberline award Core conversion; online banking conversion; centralized lending; merger* * Elevations Credit Union (ECU) merged with St. Vrain Valley Credit Union in 2011. That year, ECU said it took on too many projects and threw a large amount of resources at its improvement efforts (core operating and online banking systems conversion, and moving lending decisions from branches into a centralized department). Before process After process Quantifiable improvement 30-day average funding of home equity loans 14.5-day average funding of home equity loans 51% reduction in time from loan application to funding 11.5-day average funding of vehicle loans 4.5-day average funding of vehicle loans 60% reduction in time from loan application to funding 175 loans per underwriter/month capacity 300 loans per underwriter/month capacity 71% increase in loans handled per underwriter BPM = business process management BPM’s effect on loan funding and underwriter capacity / TABLE 1
  • 7. QP • www.qualityprogress.com38 ST. DAVID’S HEALTHCARE (SDH) Because low quality can lead to lost lives, healthcare organiza- tions understand improvement never stops. SDH, which includes more than 90 locations in central Texas, was honored to receive the Malcolm Baldrige National Quality Award in 2014, but David Huffstutler, SDS president and chief executive officer, recognized it as a testament to the organization’s efforts, not the end of a journey. “To whom much is given, much is expected. We all recognize that with this designation comes tremendous responsibility … We’ll continue to raise the bar and push ourselves to be the very best for our patients, physicians, employees and our community,” said Huffstutler. SDH has more than 8,000 employees and operates six hospitals, six ambulatory surgery centers, four emergency departments, four urgent care clinics, and several physician practices and rehabilita- tion facilities. Since 2009, SDH’s composite performance on Centers for Medi- care and Medicaid Services (CMS) reported core measurements have been in the top 10% of healthcare organizations. Its door-to- balloon time in treating heart attacks—in which a clot completely blocks the coronary artery—has been ranked in the top 10% by the American College of Cardiology since 2010. SDH was named one of the “top 100 best places to work” by Modern Healthcare magazine. It has an integrated labor productiv- ity management process, which uses volume forecasts, historical and benchmark data, and internal staffing standards to assess staffing needs. The organization works to retain its high-performing nurses through its specialty nurse accelerated program. The pro- gram speeds a nurse’s progression from novice to expert through specialty training or certification. Its patient satisfaction scores improved each year since 2009 and were addressed through its service excellence initiative, which aims to meet patients’ needs at every stage of their experience. SDH also invests in the needs of its community and has given 6% of its net revenue to charity since 2007. SOURCES: “Baldrige Awards Ceremony,” Youtube.com, http://tinyurl.com/sdhceremony. National Institute of Standards and Technology, “Malcolm Baldrige National Quality Award 2014 Award Recipient, healthcare category,” NIST.gov, http://tinyurl.com/sdhrelease. National Institute of Standards and Technology, St. David’s Healthcare 2014 Malcolm Baldrige National Quality Award Application, NIST.gov, http://tinyurl.com/stdavidsapplication. PR Newswire, “St. David’s Healthcare Earns Malcolm Baldrige Award, Nation’s Highest Presidential Honor for Performance Excellence,” Bizjournals.com, http://tinyurl.com/ stdavidbaldrige. HILL COUNTRY MEMORIAL (HCM) On Valentine’s Day, 1971, HCM opened, and nearly the entire popu- lation of Fredericksburg, TX, (about 5,000 people at the time) came to tour the facility. Most of them had a vested interest in seeing it: HCM was built with financial support from 93% of the community. Its 2014 Baldrige award is recognition that it continues to deliver a return on the rural community’s investment. HCM is a nonprofit organization serving 10 counties in Texas Hill Country—a 25-county region in central Texas. Its main campus in Fredericksburg includes an 86-bed hospital and other facilities, such as emergency and rehabilitation centers, a wellness center and a hospice. HCM has delivered on the community’s investment by being list- ed in the top 10% nationally for patient safety, general surgery, joint replacement and gastrointestinal care by Healthgrades.com. It also ranked in the top 10% for patient experience scores according to the CMS, and its Restore Joint Center was No. 1 in 2013 for patient experience among 5,000 hospitals nationally. It was selected as one of the “Top 100 Great Community Hospitals” by Becker’s Hospital Review in 2014, and HCM’s pay-for-healthcare-performance (a CMS program linking payment systems to value-based systems to improve quality of care) was the best in Texas and ranked 57th nationally. A cross-functional team applied lean and plan-do-check-act cycles to HCM’s operating room (OR) suites. By standardizing pre and postoperative processes, streamlining workflows and creating a new staffing model, on-time starts improved from 72 to 81%, OR suite capacity increased 16% (equivalent to 40 operating days with the same resource utilization), and surgical volume increased 7.6%. Employee engagement and satisfaction is a priority for HCM. Its scores ranked in the top 10% two years in a row. Using a “team of champions” system, HCM defines effective plans, policies and strategies to address staff development, workforce capability and capacity needs, and recruitment. “We are indebted to our community, supporters, physicians, volunteers and every single staff member for this remarkable ac- complishment,” said Jayne Pope, HCM CEO “We understand the importance of rural healthcare in America, and we believe rural healthcare [here] is world class.” SOURCES: “Hill Country Memorial 2014 Malcolm Baldrige National Quality Recipient,” Youtube.com, http://tinyurl.com/hcmrecipient. Hill Country Memorial, “About HCM,” http://tinyurl.com/abouthcm. National Institute of Standards and Technology, Application for the 2014 Malcolm Baldrige National Quality Award Application, NIST.gov, http://tinyurl.com/stdavidsapplication. National Institute of Standards and Technology, “Malcolm Baldrige National Quality Award 2014 Award Recipient, Health Care Category,” NIST.gov, http://tinyurl.com/hcmrelease. 2014 BALDRIGE RECIPIENTS
  • 8. October 2015 • QP 39 BALDRIGE AWARD wanted? Because you made them a crust-off, wheat, chunky peanut butter, grape-jelly sandwich. And they wanted a crust-on, white, smooth peanut butter, strawberry-jelly sandwich. Everything you just went through was for naught.” The exercise took the focus away from memoriz- ing new jargon, and it illustrated how the concept was something people did implicitly every day. “With our kids, we ultimately figure out what it is they want after we’ve made a few sandwiches that they don’t eat,” Reicks said. “So why don’t we do that with our customers? And so we just scaled up. We went from something safe and innocuous, like pea- nut butter and jelly sandwiches, to consumer lend- ing, mortgage lending and ensuring we provide great service for our membership.” ECU eventually created an enterprise process map: Every activity that delivered value to the fi- nancial institution’s membership could be identified by the activity necessary to deliver that value from start to finish. Employees stopped viewing process- es by department or profession and started break- ing down organizational silos, helping them better understand their roles and how the organization PRICEWATERHOUSECOOPERS PUBLIC SECTOR PRACTICE (PWC PSP) With an upcoming U.S. presidential election, there will un- doubtedly be much discussion about government effective- ness and waste. While the nation focuses on the talk, PwC PSP will be busy actually doing hands-on work to improve it. PwC PSP—located in McLean, VA, with nearly 1,100 employ- ees—is a business unit of PwC, providing advisory services in management, technology and risk management for customers such as the U.S. federal government, and state and local gov- ernments. Receiving the Baldrige award in 2014 was a testa- ment to PwC PSP’s dedication to its customers, staff develop- ment and innovations. In 2014, PwC PSP received a Gold Intranet Innovation Award from Step Two Designs, a global firm that recognizes innovative intranet ideas. PwC PSP received the award for its knowledge gateway—a tool used to review and share knowledge through a web-based platform and to allow employees to collaborate, create insights and develop their skills. Another tool employed by PwC PSP is its engagement man- agement process (EMP). Used to listen for and seek actionable feedback on the quality of its services throughout a project’s life cycle, EMP has three phases: plan (understanding client re- quirements), execute (project leaders monitor project activities and hold recurring status meetings with clients) and contribute (a closeout meeting for the client to provide additional perfor- mance feedback). EMP has led to impressive customer satisfaction scores in the federal government’s contractor performance assessment reports. In the “exceptional” or “very good” categories, PwC PSP’s scores increased from 50% in 2008 to almost 100% in 2010 through 2014. Its four-step strategic planning process (observe, orient, decide and act) has helped increase revenue growth from $41 million in 2005 to $265 million in 2014. Of firms serving the U.S. federal government, PwC PSP was one of the fastest growing organizations between 2011 and 2014. PwC understands that by improving itself, what it does can ultimately trickle down to improve the lives of U.S. citi- zens. “Across PwC, we are committed to delivering quality, innovation and value to all our stakeholders,” said Bob Moritz, U.S. chairman and senior partner of PwC. ”Our public sector practice exemplifies this commitment, not only for the public entities and organizations we serve, but ultimately for those they serve.” SOURCES: National Institute of Standards and Technology, Malcolm Baldrige National Quality Award 2014 Award Recipient, Service Category, NIST.gov, http://tinyurl.com/pwcpsprelease. National Institute of Standards and Technology, PricewaterhouseCoopers Public Sector 2014 Malcolm Baldrige National Quality Award Application, NIST.gov, http://tinyurl.com/ pwcpspapplication. Pricewaterhousecoopers, “PwC’s Public Sector Practice Receives the 2014 Baldrige Award,” PWC.com, http://tinyurl.com/pwcbaldrige. —T.G.
  • 9. functioned as a team. In addition to unifying staff members, BPM helped reduce loan processing times (see Table 1, p. 37). Process mapping transitioned from yarn and sticky-note-covered walls to a digital cloud by using Blueworks Live software, a business process map- ping tool that allowed people to view and work on processes simultaneously, keep audit trails and link everything together. The software ignited staff members’ interest in creating processes, and their contribution quickly spread. “People were truly going viral in their abil- ity to build processes,” said Carla Wolfe, ECU’s vice president of enterprise performance excellence.6 Today, a team called BPM Special Forces helps leverage and improve ECU’s use of the method. This volunteer group of employees is from all levels of the organization, and they receive special training and act as ECU’s licensed Blueworks users. In early 2013, ECU introduced knowledge asset governance and a reference desk, a central repository of knowledge assets. On Oct. 1, 2014, 100% of the as- sets were validated. “The biggest thing BPM allowed us to do was make that transition from a traditional organization kind of built upon a line and box chart—with traditional de- partments coming together to do various things—to an organization that’s more focused on our custom- ers and what it takes to drive value from a market opportunity all the way to value delivered to a cus- tomer,” Reicks said. “We can then assess how we did, and take that information and put it right back into the organization to get better.” Get rhythm While getting serious about process improvement, ECU looked for a better approach to make, commu- nicate and carry out decisions. It found operational rhythm through a systematic series of monthly meet- ings with clear objectives. Before using operational rhythm and the Baldrige criteria, Reicks described ECU’s performance re- view, planning and decision-making processes as “a lot of muscle power” that involved working harder, longer and adding more meetings to already-filled calendars. “We had so many things going on that we coined a term,” Reicks said. “We called it random acts of good- ness. All the ideas were good, but they weren’t all nec- essarily driving in the same direction.” With operational rhythm, meetings became for- malized forums with clear objectives, expected out- puts and decision action items that would flow as input into the next forum. Operational rhythm also defined who would attend a meeting not by job title, but by functional responsibility in a process the per- son represented. ECU also adopted cross-functional teams as part of its member loyalty improvements, which you can read about in the online sidebar “En- gaged and Loyal.” ECU’s operational rhythm is accomplished by us- ing three sequential monthly meetings called: 1. Run the business. 2. Production. 3. Decide, plan and align. Run the business—The organization checks for friction points in its processes that go into value streams for membership from start to finish. A car loan application meeting, for example, will include representatives from every related process catego- ry—from the moment ECU contacted the member to processing the loan, funding it, asking for member feedback, and taking and applying that feedback. Production—ECU’s products and services are re- viewed to ensure they’re meeting goals. The organiza- tion distills and harvests the best results from these meetings and passes the information to the decide, plan and align meeting. Decide, plan and align—This meeting verifies that ECU’s monthly operations align with its stra- tegic direction and, if necessary, it makes adjust- ments. Having deployed processes allowed leaders to ar- ticulate what was happening in their areas of the or- ganization with meaningful data instead of anecdotal information and showed other leaders the power of documented processes. Focusing on data also helped conversations become less emotional and reduced the discomfort employees might feel when they’re told their units are underperforming. “The Baldrige framework is really about culture change.” Reicks said. “[It’s] about transitioning from a bunch of hardworking, passionate people who care about what they’re doing to providing the framework by which they can work together as a team.” Organizations will continue seeking one cure-all QP • www.qualityprogress.com40 BALDRIGE AWARD
  • 10. October 2015 • QP 41 improvement despite knowing better, and Reicks has advice for them, especially those that view the Baldrige criteria as a fast-acting, magic elixir: “Just go ahead and put that 58-page booklet down because that won’t work. Baldrige is an all-in effort. Everybody’s got to be included.” He added, “If you’re looking for a quick-fix win, continue to play that until you hit bottom and realize there are no quick fixes. And if [those organizations] have truly hit bottom in that area, they’ll be able to embrace the Baldrige framework.” QP REFERENCES 1. Jim Collins, “Good to Great,” Fast Company, October 2001, http://tinyurl.com/ goodtogreatjc. 2. “Malcolm Baldrige National Quality Award 2014 Recipient, Nonprofit Category,” NIST.gov, http://tinyurl.com/ecubaldrige1. 3. Brian Domitrovic, “The Worst Economic Crisis Since When?” Forbes, Feb. 5, 2013, http://tinyurl.com/economiccrisissince. 4. Yalman Onaran and Christopher Scinta, “Lehman Files Biggest Bankruptcy Case as Suitors Balk,” Bloomberg, Sept. 15, 2008, http://tinyurl.com/fourthlargest. 5. “Carla Wolfe on Elements of Excellence at 2015 Quest for Excellence Conference,” YouTube.com, http://tinyurl.com/ora7vkq. 6. Ibid. Auditor Certification ISO 9001 QMS / ISO 14001 EMS BY TRA CERTIFICATION INT’L 700 E Beardsley Ave., Ste 4A – Elkhart, IN 46514 800-398-9282 www.traCertification.com Registration: ISO Standards 9001, 14001, 50001, TL 9001, 22001, 27001, 29990, OHSAS 18001 Your key to Increased Sales & Profitability! Management Systems Do you have a funny, touching or intriguing quality story to tell? Would you like to share your story on your journey into quality? If yes, the QP staff—and QP readers—want to hear from you. Over the years, Quality in the First Person authors have written about using quality tools and methods in their homes or a chronicled a roundabout way they got in the quality profession. If you’d like your quality story to be considered for Quality in the First Person, please e-mail editor@asq.org. Calling All Quality Writers