The Baldrige Performance Excellence Program operates as a public-private partnership to educate organizations on performance excellence management and administer the Malcolm Baldrige National Quality Award. It was established by the 1987 Malcolm Baldrige National Quality Improvement Act to recognize role model businesses, establish best practice criteria, and promote sharing of successful strategies. The award is named after Howard Malcolm Baldrige Jr, a former US Secretary of Commerce known for his leadership and management excellence. The Baldrige criteria define organizational performance excellence and are used by many public and private sector organizations across the US to improve competitiveness, quality and productivity.

1. Baldrige PerformanceBaldrige Performance
Excellence ProgramExcellence Program
By: MBA, Sajad NazariBy: MBA, Sajad Nazari
Janus Aries SimbilloJanus Aries Simbillo
nazary_sajjad@yahoo.comnazary_sajjad@yahoo.com

2. What is the Baldrige Program?What is the Baldrige Program?
► Operates as a unique public-private partnershipOperates as a unique public-private partnership
► Educates organizations on performanceEducates organizations on performance
excellence managementexcellence management
► Manages the Malcolm Baldrige National QualityManages the Malcolm Baldrige National Quality
AwardAward
Baldrige is Performance Excellence: OrganizationsBaldrige is Performance Excellence: Organizations
Achieve and the U.S. SucceedsAchieve and the U.S. Succeeds

3. PurposePurpose
► It enhances the competitiveness, quality, andIt enhances the competitiveness, quality, and
productivity of U.S. organizations for the benefit ofproductivity of U.S. organizations for the benefit of
all citizens.all citizens.
► It develops and disseminates evaluation criteriaIt develops and disseminates evaluation criteria
and manages the Malcolm Baldrige Nationaland manages the Malcolm Baldrige National
Quality Award in close cooperation with the privateQuality Award in close cooperation with the private
sector.sector.
► It also provides global leadership inIt also provides global leadership in
promoting performance excellence and in thepromoting performance excellence and in the
learning and sharing of successful performancelearning and sharing of successful performance
practices, principles, and strategies.practices, principles, and strategies.

4. HistoryHistory
The Malcolm Baldrige National Quality ImprovementThe Malcolm Baldrige National Quality Improvement
Act of 1987, Public Law 100-107Act of 1987, Public Law 100-107
► Created Award Program toCreated Award Program to
 identify/recognize role-model businessesidentify/recognize role-model businesses
 establish criteria for evaluating improvement effortsestablish criteria for evaluating improvement efforts
 disseminate/share best practicesdisseminate/share best practices
► Expanded to health care and education (1998)Expanded to health care and education (1998)
► Expanded to nonprofit (+ Government) sector –Expanded to nonprofit (+ Government) sector –
(2005)(2005)

5. The Man BehindThe Man Behind
► Howard Malcolm Baldrige, Jr. (October 4, 1922 – July 25, 1987) was theHoward Malcolm Baldrige, Jr. (October 4, 1922 – July 25, 1987) was the
26th United States Secretary of Commerce.26th United States Secretary of Commerce.
► During his tenure, Baldrige played a major role in developing and carrying outDuring his tenure, Baldrige played a major role in developing and carrying out
Administration trade policy.Administration trade policy.
► He took the lead in resolving difficulties in technology transfersHe took the lead in resolving difficulties in technology transfers
with China and India.with China and India.
► He held the first Cabinet-level talks with the Soviet Union in seven years whichHe held the first Cabinet-level talks with the Soviet Union in seven years which
paved the way for increased access for U.S. firms to the Soviet market.paved the way for increased access for U.S. firms to the Soviet market.
► Leading the Administration's effort to pass the Export Trading Company Act ofLeading the Administration's effort to pass the Export Trading Company Act of
1982, Baldrige was named by the President to chair a Cabinet-level Trade Strike1982, Baldrige was named by the President to chair a Cabinet-level Trade Strike
Force to search out unfair trading practices and recommend ways to end thoseForce to search out unfair trading practices and recommend ways to end those
practices.practices.
► Baldrige's award-winning managerial excellence contributed to long-termBaldrige's award-winning managerial excellence contributed to long-term
improvement in economy, efficiency, and effectiveness in government. Withinimprovement in economy, efficiency, and effectiveness in government. Within
the Commerce Department, Baldrige reduced the budget by more than 30% andthe Commerce Department, Baldrige reduced the budget by more than 30% and
administrative personnel by 25%.administrative personnel by 25%.
► Baldrige died July 25, 1987, in John Muir Hospital, Walnut Creek, California,Baldrige died July 25, 1987, in John Muir Hospital, Walnut Creek, California,
after a rodeo accident in Brentwood, Contra Costa County, in Northernafter a rodeo accident in Brentwood, Contra Costa County, in Northern
California.California.

6. Performance ExcellencePerformance Excellence
An integratedAn integrated approachapproach to organizationalto organizational
performance management thatperformance management that resultsresults inin
delivery of ever-improving value to customersdelivery of ever-improving value to customers
and stakeholders, contributing to organizationaland stakeholders, contributing to organizational
sustainabilitysustainability
improvement of overall organizationalimprovement of overall organizational
effectiveness and capabilitieseffectiveness and capabilities
organizational and personal learningorganizational and personal learning

7. Program ParticipantsProgram Participants
►86 Award recipients (91 Awards)86 Award recipients (91 Awards)
►1,458 Baldrige Award applications1,458 Baldrige Award applications
►More than 5,800 trained ExaminersMore than 5,800 trained Examiners
►Widespread participationWidespread participation
►Private-sector contributions providePrivate-sector contributions provide
over 90 percent of Program supportover 90 percent of Program support

8. Award Recipients’ ContributionsAward Recipients’ Contributions
►Increase competitiveness of U.S.Increase competitiveness of U.S.
organizationsorganizations
►Give presentations to all sectorsGive presentations to all sectors
►Give presentations at The Quest forGive presentations at The Quest for
Excellence® and the regional conferencesExcellence® and the regional conferences
►Influence customers/suppliersInfluence customers/suppliers
►Host seminars and workshopsHost seminars and workshops
►Write articlesWrite articles

9. Applying for the Baldrige AwardApplying for the Baldrige Award
►ManufacturingManufacturing
►ServiceService
►Small business (manufacturing or service)Small business (manufacturing or service)
►Education (for-profit and nonprofit)Education (for-profit and nonprofit)
►Health care (for-profit and nonprofit)Health care (for-profit and nonprofit)
►Nonprofit, including charities andNonprofit, including charities and
government agenciesgovernment agencies

10. The Baldrige CriteriaThe Baldrige Criteria
► Are considered a validated organizational performance assessmentAre considered a validated organizational performance assessment
tooltool
► Define performance excellenceDefine performance excellence
► Are used to identify Award recipientsAre used to identify Award recipients
► Are used by diverse organizations in all sectors of the U.S. economyAre used by diverse organizations in all sectors of the U.S. economy
► Comprise an Organizational Profile and seven Categories—anComprise an Organizational Profile and seven Categories—an
integrated management frameworkintegrated management framework
► Are updated regularly (currently every two years)Are updated regularly (currently every two years)

11. Seven Categories of theSeven Categories of the
Business/Nonprofit CriteriaBusiness/Nonprofit Criteria
►LeadershipLeadership
►Strategic PlanningStrategic Planning
►Customer FocusCustomer Focus
►Measurement, Analysis, and KnowledgeMeasurement, Analysis, and Knowledge
ManagementManagement
►Workforce FocusWorkforce Focus
►Process ManagementProcess Management
►ResultsResults

13. Core Values and ConceptsCore Values and Concepts
► Visionary LeadershipVisionary Leadership
 An organization’s senior leaders have a central role inAn organization’s senior leaders have a central role in
setting directions and creating a customer focus. Theysetting directions and creating a customer focus. They
must convey clear and visible values and highmust convey clear and visible values and high
expectations.expectations.
► Customer-Driven ExcellenceCustomer-Driven Excellence
 Performance and quality are judged by anPerformance and quality are judged by an
organization’s customers.organization’s customers.
► Organizational and Personal LearningOrganizational and Personal Learning
 Organizational learning refers to continuousOrganizational learning refers to continuous
improvement of existing approaches and significantimprovement of existing approaches and significant
change or innovation, leading to new goals andchange or innovation, leading to new goals and
approaches.approaches.

14. Core Values and ConceptsCore Values and Concepts
► Valuing Workforce Members and PartnersValuing Workforce Members and Partners
 An organization’s success depends increasingly on an engaged workforceAn organization’s success depends increasingly on an engaged workforce
and on the diverse backgrounds, knowledge, skills, creativity, andand on the diverse backgrounds, knowledge, skills, creativity, and
motivation of its workforce and partners.motivation of its workforce and partners.
► AgilityAgility
 Success in today’s ever-changing, globally competitive environmentSuccess in today’s ever-changing, globally competitive environment
demands agility—a capacity for rapid change and flexibility.demands agility—a capacity for rapid change and flexibility.
► Focus on the FutureFocus on the Future
 The pursuit of sustainable growth and sustained performance leadershipThe pursuit of sustainable growth and sustained performance leadership
requires a strong future orientation and a willingness to make long-termrequires a strong future orientation and a willingness to make long-term
commitments to key stakeholderscommitments to key stakeholders
► Managing for InnovationManaging for Innovation
 Innovation is no longer strictly the purview of research and developmentInnovation is no longer strictly the purview of research and development
departments.departments.

15. Core Values and ConceptsCore Values and Concepts
► Management by FactManagement by Fact
 Performance improvement requires measurement and analysis.Performance improvement requires measurement and analysis.
► Societal ResponsibilitySocietal Responsibility
 Leaders should stress responsibilities to the public, ethical behavior, andLeaders should stress responsibilities to the public, ethical behavior, and
the need to consider societal well-being and benefit, which refers tothe need to consider societal well-being and benefit, which refers to
leadership and support—within the limits of an organization’s resources—leadership and support—within the limits of an organization’s resources—
of publicly important purposes.of publicly important purposes.
► Focus on Results and Creating ValueFocus on Results and Creating Value
 Results should be used to create and balance value for your keyResults should be used to create and balance value for your key
stakeholders.stakeholders.
► Systems PerspectiveSystems Perspective
 A systems perspective means managing the whole organization, as well asA systems perspective means managing the whole organization, as well as
its key processes, to achieve results—and strive for performanceits key processes, to achieve results—and strive for performance
excellence.excellence.

16. Baldrige Criteria Framework:Baldrige Criteria Framework:
A Systems PerspectiveA Systems Perspective

17. Steps Toward MatureSteps Toward Mature
ProcessesProcesses

18. Organizational ProfileOrganizational Profile
P.1 Organizational DescriptionP.1 Organizational Description
P.2 Organizational SituationP.2 Organizational Situation
►Starting point for self-assessment andStarting point for self-assessment and
application preparationapplication preparation
►Basis for early action planningBasis for early action planning

19. Category Point ValuesCategory Point Values
11 LeadershipLeadership 120120
22 Strategic PlanningStrategic Planning 8585
33 Customer FocusCustomer Focus 8585
44 Measurement, Analysis, andMeasurement, Analysis, and
Knowledge ManagementKnowledge Management 9090
55 Workforce FocusWorkforce Focus 8585
66 Process ManagementProcess Management 8585
77 ResultsResults 450450
TOTAL POINTSTOTAL POINTS 1,0001,000

20. 1. Leadership (120 pts.)1. Leadership (120 pts.)
Addresses Senior Leaders’ Actions, Governance, and SocietalAddresses Senior Leaders’ Actions, Governance, and Societal
ResponsibilitiesResponsibilities
► 1.1 Senior Leadership (70 pts.)1.1 Senior Leadership (70 pts.)
 Asks “How do your senior leaders lead?”Asks “How do your senior leaders lead?”
 ItIt focuses on how senior leaders set organizational vision and values;focuses on how senior leaders set organizational vision and values;
create an environment that fosters, requires, and results in legal and ethicalcreate an environment that fosters, requires, and results in legal and ethical
behavior; create a sustainable organization; and create an environment forbehavior; create a sustainable organization; and create an environment for
organizational improvement.organizational improvement.
► 1.2 Governance and Societal Responsibilities1.2 Governance and Societal Responsibilities
(50 pts.)(50 pts.)
 Asks “How do you govern and fulfill your societal responsibilities?”Asks “How do you govern and fulfill your societal responsibilities?”
 It examines several key aspects of your organization’s governance systemIt examines several key aspects of your organization’s governance system
and approach to leadership.and approach to leadership.

21. 2. Strategic Planning (85 pts.)2. Strategic Planning (85 pts.)
Addresses Strategic and Action Planning andAddresses Strategic and Action Planning and
Deployment of PlansDeployment of Plans
► 2.1 Strategy Development (40 pts.)2.1 Strategy Development (40 pts.)
 Asks “How do you develop your strategy?”Asks “How do you develop your strategy?”
 It examines how your organization establishes its strategy toIt examines how your organization establishes its strategy to
address its strategic objectives and leverage its strategicaddress its strategic objectives and leverage its strategic
advantages.advantages.
► 2.2 Strategy Implementation (45 pts.)2.2 Strategy Implementation (45 pts.)
 Asks “How do you deploy your strategy?”Asks “How do you deploy your strategy?”
 It examines how your organization converts its strategic objectivesIt examines how your organization converts its strategic objectives
into action plans to accomplish these objectives and how it deploysinto action plans to accomplish these objectives and how it deploys
and assesses progress on its action plans.and assesses progress on its action plans.

22. 3.Customer Focus (85 pts.)3.Customer Focus (85 pts.)
Addresses How an Organization EngagesAddresses How an Organization Engages
its Customers and Listens to theits Customers and Listens to the
Voice of the CustomerVoice of the Customer
► 3.1 Voice of the Customer (45 pts.)3.1 Voice of the Customer (45 pts.)
 Asks “How do you engage customers to serve their needsAsks “How do you engage customers to serve their needs
and build relationships?”and build relationships?”
 It asks how your organization determines product offeringsIt asks how your organization determines product offerings
and mechanisms to support customers’ use of your products.and mechanisms to support customers’ use of your products.
► 3.2 Customer Engagement (40 pts.)3.2 Customer Engagement (40 pts.)
 Asks “How do you obtain and use information from yourAsks “How do you obtain and use information from your
customers?”customers?”
 It examines how your organization listens to its customers,It examines how your organization listens to its customers,
acquires satisfaction and dissatisfaction information, andacquires satisfaction and dissatisfaction information, and
uses customer information to improve its marketplaceuses customer information to improve its marketplace
success.success.

23. 4. Measurement, Analysis, and4. Measurement, Analysis, and
Knowledge Management (90Knowledge Management (90
pts.)pts.)
Addresses Analysis, Review, and Improvement ofAddresses Analysis, Review, and Improvement of
Organizational Performance and Management of Data,Organizational Performance and Management of Data,
Knowledge, and Information ResourcesKnowledge, and Information Resources
► 4.1 Measurement, Analysis, and Improvement of4.1 Measurement, Analysis, and Improvement of
Organizational Performance (45 pts.)Organizational Performance (45 pts.)
 Asks “How do you measure, analyze, and then improve organizationalAsks “How do you measure, analyze, and then improve organizational
performance?”performance?”
 It covers your performance data and information at all levels and in allIt covers your performance data and information at all levels and in all
parts of the organization.parts of the organization.
► 4.2 Management of Information, Knowledge, and4.2 Management of Information, Knowledge, and
Information Technology (45 pts.)Information Technology (45 pts.)
 Asks “How do you manage your information, organizational knowledge,Asks “How do you manage your information, organizational knowledge,
and information technology?”and information technology?”
 It addresses the availability and quality of needed data, information,It addresses the availability and quality of needed data, information,
hardware, and software for your workforce, suppliers, partners,hardware, and software for your workforce, suppliers, partners,
collaborators, and customers.collaborators, and customers.

24. 5. Workforce Focus (855. Workforce Focus (85
pts.)pts.)
Addresses How an Organization Engages,Addresses How an Organization Engages,
Develops, and Manages Its Workforce and BuildsDevelops, and Manages Its Workforce and Builds
an Effective Workforce Environmentan Effective Workforce Environment
► 5.1 Workforce Environment (40 pts.)5.1 Workforce Environment (40 pts.)
 Asks “How do you engage your workforce to achieve organizationalAsks “How do you engage your workforce to achieve organizational
and personal success?”and personal success?”
 It examines how your organization engages, compensates, andIt examines how your organization engages, compensates, and
rewards your workforce to achieve high performance.rewards your workforce to achieve high performance.
► 5.2 Workforce Engagement (45 pts.)5.2 Workforce Engagement (45 pts.)
 Asks “How do you build an effective and supportive workforceAsks “How do you build an effective and supportive workforce
environment?”environment?”
 It addresses how your organization manages workforce capabilityIt addresses how your organization manages workforce capability
and capacity to accomplish its work and how it maintains a safe,and capacity to accomplish its work and how it maintains a safe,
secure, and supportive work climate.secure, and supportive work climate.

25. 6. Process Management (856. Process Management (85
pts.)pts.)
Addresses How an Organization Designs Its Work Systems;Addresses How an Organization Designs Its Work Systems;
Prepares for Emergencies; and Designs, Manages, andPrepares for Emergencies; and Designs, Manages, and
Improves Its Work ProcessesImproves Its Work Processes
► 6.1 Work Systems (45 pts.)6.1 Work Systems (45 pts.)
 Asks “How do you design your work systems?”Asks “How do you design your work systems?”
 It addresses how your organization designs its work systems andIt addresses how your organization designs its work systems and
determines its key processes to deliver customer value, prepare fordetermines its key processes to deliver customer value, prepare for
potential emergencies, and achieve organizational success andpotential emergencies, and achieve organizational success and
sustainability.sustainability.
► 6.2 Work Processes (40 pts.)6.2 Work Processes (40 pts.)
 Asks “How do you design, manage, and improve your keyAsks “How do you design, manage, and improve your key
organizational work processes?”organizational work processes?”
 It examines how your organization designs, implements, manages, andIt examines how your organization designs, implements, manages, and
improves its key work processes to deliver customer value and achieveimproves its key work processes to deliver customer value and achieve
organizational success and sustainability.organizational success and sustainability.

26. 7. Results (450 pts.)7. Results (450 pts.)
Addresses an Organization’s PerformanceAddresses an Organization’s Performance
and Improvement in Key Areas and Includesand Improvement in Key Areas and Includes
Current Performance Levels, Trends, andCurrent Performance Levels, Trends, and
Comparative DataComparative Data
► 7.1 Product and Process Outcomes (100 pts.)7.1 Product and Process Outcomes (100 pts.)
 Asks “What are your product performance results?”Asks “What are your product performance results?”
 It also asks for segmented results and appropriate comparativeIt also asks for segmented results and appropriate comparative
data.data.
► 7.2 Customer-Focused Outcomes (90 pts.)7.2 Customer-Focused Outcomes (90 pts.)
 asks “What are your customer-focused performance results?”asks “What are your customer-focused performance results?”
 It examines results for customer satisfaction, dissatisfaction, andIt examines results for customer satisfaction, dissatisfaction, and
engagement.engagement.

27. 7. Results (450 pts.)7. Results (450 pts.)
► 7.3 Financial and Market Outcomes (80 pts.)7.3 Financial and Market Outcomes (80 pts.)
 Asks “What are your financial and marketplace performanceAsks “What are your financial and marketplace performance
results?”results?”
 These results might include aggregate measures of financial return,These results might include aggregate measures of financial return,
measures of financial viability or budgetary performance, andmeasures of financial viability or budgetary performance, and
measures of marketplace performance, such as market share ormeasures of marketplace performance, such as market share or
position, market or market share growth, and new markets entered.position, market or market share growth, and new markets entered.
► 7.4 Workforce-Focused Outcomes (80 pts.)7.4 Workforce-Focused Outcomes (80 pts.)
 Asks “What are your workforce-focused performance results?”Asks “What are your workforce-focused performance results?”
 It examines results relating to workforce engagement andIt examines results relating to workforce engagement and
satisfaction, workforce and leader development, workforcesatisfaction, workforce and leader development, workforce
capability and capacity, and the workforce climate.capability and capacity, and the workforce climate.

28. 7. Results (450 pts.)7. Results (450 pts.)
► 7.5 Process Effectiveness Outcomes (20 pts.)7.5 Process Effectiveness Outcomes (20 pts.)
 Asks “What are your process effectiveness results?”Asks “What are your process effectiveness results?”
 It examines your key operational performance results thatIt examines your key operational performance results that
contribute to the achievement of organizational effectiveness,contribute to the achievement of organizational effectiveness,
including your organization’s readiness for emergencies.including your organization’s readiness for emergencies.
► 7.6 Leadership and Governance Outcomes (80 pts.)7.6 Leadership and Governance Outcomes (80 pts.)
 Asks “What are your leadership results?”Asks “What are your leadership results?”
 It examines your organization’s key governance and seniorIt examines your organization’s key governance and senior
leadership results, including evidence of strategic planleadership results, including evidence of strategic plan
accomplishments, fiscal accountability, legal compliance, ethicalaccomplishments, fiscal accountability, legal compliance, ethical
behavior, societal responsibility, and support of key communities.behavior, societal responsibility, and support of key communities.

29. Program AchievementsProgram Achievements
►Created a national and internationalCreated a national and international
standard for performance excellencestandard for performance excellence
►Produced role modelsProduced role models
►Shared best management practicesShared best management practices
►Generated award programsGenerated award programs
►Raised U.S. competitivenessRaised U.S. competitiveness
►Established outreach and educationEstablished outreach and education
systemssystems

30. 2012 Baldrige Award Recipients2012 Baldrige Award Recipients
►Lockheed Martin Missiles and FireLockheed Martin Missiles and Fire
ControlControl, Grand Prairie, Texas, Grand Prairie, Texas
(manufacturing)(manufacturing)
►MESA Products Inc.MESA Products Inc. , Tulsa, Okla. (small, Tulsa, Okla. (small
business)business)
►North Mississippi Health ServicesNorth Mississippi Health Services ,,
Tupelo, Miss. (health care)Tupelo, Miss. (health care)
►City of IrvingCity of Irving , Irving, Texas (nonprofit), Irving, Texas (nonprofit)

31. Improvement ToolsImprovement Tools
►These improvement tools areThese improvement tools are
complementary, not mutually exclusive. Forcomplementary, not mutually exclusive. For
example, Baldrige, Lean, and Six Sigma allexample, Baldrige, Lean, and Six Sigma all
 focus on resultsfocus on results
 use a team approachuse a team approach
 require management by factrequire management by fact
 are customer- and market-focusedare customer- and market-focused
 require strong leadership for long-termrequire strong leadership for long-term
effectivenesseffectiveness

32. DifferencesDifferences
► the Baldrige Criteria serve as a comprehensivethe Baldrige Criteria serve as a comprehensive
framework for performance excellence. They focusframework for performance excellence. They focus
on business results as well as organizationalon business results as well as organizational
improvement and innovation improvement and innovation systemssystems..
► Lean and Six Sigma methodologies drive wasteLean and Six Sigma methodologies drive waste
and inefficiencies out of and inefficiencies out of processes.processes.
► ISO 9000 is a series ofISO 9000 is a series of standardsstandards for an efficient for an efficient
quality conformance system.quality conformance system.
► Overall, ISO 9000 registration covers less than 10Overall, ISO 9000 registration covers less than 10
percent of the Baldrige Criteria.percent of the Baldrige Criteria.

33. Integration of the Baldrige CriteriaIntegration of the Baldrige Criteria
and Other Improvement Toolsand Other Improvement Tools
►use Baldrige to develop an overalluse Baldrige to develop an overall
performance map, identify areas forperformance map, identify areas for
improvement, and track resultsimprovement, and track results
►use Six Sigma, Lean, or other tools touse Six Sigma, Lean, or other tools to
design operations or improve processesdesign operations or improve processes

34. “Don't lower your expectations to meet your performance. Raise your
level of performance to meet your expectations. Expect the best of
yourself, and then do what is necessary to make it a reality.”
Ralph Marston