Malcolm Baldrige Criteria – A Business Excellence Model

Malcolm Baldrige Award Criteria was developed into its respective seven categories. Each of these seven categories focus on a key process to achieve performance excellence.

The Malcolm baldrige Criteria emphasize on alignment of all these key processes. The Baldrige values and Concepts are build into the criteria to attain alignment of the seven categories yet without displaying the values and concepts specifically in the criteria itself.

The Malcolm Baldrige Criteria used to be revised on a yearly basis and has changed to a once in two years basis effective 2009 with the introduction of the Malcolm Baldrige Award Criteria 2009-2010 version. The Malcolm Badrige Award is given to the best organization of its respective award categories. Each award Applicant has to exhits the highest standards of Approach, Deployement of their key process in relation to the seven categories in the Malcolm Baldrige Criteria.

The effectiveness of the Approach and Deployement are assessed in the area of its Results. Hence, the Baldrige Award Assessment Approach took into consideration an aligned actions of the Approach, Deployement and Results of strategies, key actions and plan in the organization. Whenever a Baldrige Award Assessment is carried out to an applicant, the Baldrige Assessor will evaluate how well the values and concepts are being deployed as a way of life in the organization.

To be awarded the Malcolm Baldrige Award winners, the applicant has to show an holistic approach to all the seven cetegories as well as a high level of Implementing Malcolm Baldrige Award Criteria.

One way to provide information about the implementation of the Malcolm Baldrige Criteria is to provide an award application report to the Malcolm Baldrige Award authority which is used as a basis for Baldrige assessment.

Key changes in 2009 Malcolm Baldrige Criteria

Effective from 2009 Malcolm Baldrige Criteria, the revision of the criteria will be from a yearly revision cycle to a formal two-year revision cycle, and the 2009-2010 Malcolm Baldrige Criteria is the first version of this change and the criteria structure is new and improved. Among others, the most significant revision to the Malcolm Baldrige Criteria addresses three primary areas:

1. customer focus
2. organizational core competencies
3. sustainability and societal responsibilities

These three key areas are inter-linked each others and are embeded into the seven Performance Excellence Categories in the Malcolm Baldrige Criteria.

Malcolm Baldrige Criteria – Customer Focus, it refered to an increased focus on customer (or patient/stakeholder or student/stakeholder) engagement. This category has been redesigned and considered “customer engagement” and the “voice of the customer.” And it emphasis on building a customer culture (focused on customer retention and loyalty), and measuring, and using customer satisfaction data.

Malcolm Baldrige Criteria – Organizational Core Competencies – It is enhanced and emphase on core competencies that stresses their importance amd aligned to an organization’s Vision & mission, organization values, strategy, and business sustainability. In the criteria, there is a greater emphasis on aligning “core competencies” with their strategic significance. The term “core competencies” refers to your organization’s areas of greatest expertise.

Malcolm Baldrige Criteria – Sustainability and Societal Responsibilities – It is enhanced and focused on societal responsibilities and organizational sustainability. The Baldrige criteria is intended to ensure that organizations will pay increased attention to their suppliers’ or vendors’ actions, responding to changes to the environmental, social, and economic systems (societal responsibilities). Whereas, sustainability refers to your organization’s capability effectiveness in addressing ever-changing business needs.

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While the above are key changes to the Malcolm Baldrige Criteria, there have been some changes in all criteria items. You can obtain full 2009-2010 version of the Malcolm Baldrige Criteria at NIST website http://quality.nist.gov ( look for Malcolm Baldrige Criteria Section )

Global Insights. A monthly newsletter from the performance excellence team at Global Performance Systems, Inc. Past copies are archived on our web site: http://gpsinc.us. Copyright 2003-2009 Craig Anderson. All rights reserved.
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Summary Analysis of Baldrige Scoring Data: Key Observations and Lessons Learned

The Malcolm Baldrige National Quality Award Office released publicly for the first time scoring data for all applications submitted from 1990 to 2006. The data is presented in a way that protects the privacy of the applicants and is available in PDF and Excel formats at http://www.baldrige.nist.gov/Data_Analysis/index.htm.

The data is interesting and may be useful for organizations at any point on their Baldrige journey. The following key lessons are drawn from an analysis of the data from 1999, when the Award formally added the Education and Health Care sectors, through 2006.

Finding 1: Many Applications Score Poorly
Fewer than one-third of the applications scored over 500. Small Business and Education applicants were the outliers, with only 27% and 23%, respectively, reaching 500. Our view is that 500 is a baseline performance for a Baldrige aspirant, to reach the corresponding 50% to 65% scoring band, an applicant must consistently demonstrate an Approach in each Performance Category that is:

1. An effective, systematic response to the overall requirements of the item.
2. Well-deployed, with some variance across areas and work units.
3. Improving key work processes in a fact-based, systematic manner.
4. Aligned with key organizational needs.

The fact that two-thirds of applicants at the national level are falling short indicates that we all have a lot of work to do.

Finding 2: Health Care is the Toughest Sector
Twenty-five percent of all applicants that receive a score of at least 500 will receive the Baldrige Award. This varies significantly by sector, however. Around 40% of Manufacturing, Service, and Small Business applicants scoring over 500 will receive the Award, but only 27% of Education applicants and 11% of Health Care applicants will do likewise. This may reflect the high number of Health Care applicants (161 out of 459 applications from 1999 to 2006) but it makes it clear that the path to an Award is more difficult for this sector.

Finding 3: Small Business and Education Scores are Lower
Average scores for Small Business (392) and Education (396) applicants were significantly lower than Health Care (456), Service (437), and Manufacturing (430). It is not clear without further research what accounts for these gaps, and certainly there have been outstanding Award recipients in the Small Business and Education sectors.

Finding 4: Application Numbers are Down
Seventy applications were submitted in 2009, down from an average of 85 for 2006 through 2008 (Non-Profit sector applications were accepted beginning in 2006). This may reflect the difficult economic climate, but it highlights an ongoing challenge. Health Care applications outnumbered Manufacturing applications by a 20-1 ratio.

Thanks for being part of the expanding global readership of Global Insights. To learn more about any aspect of the Baldrige Total Performance Excellence System and how it can dramatically improve your quality and competitive position, please contact our President, Craig Anderson, directly at 240-506-6922, or via email at canderson@gpsinc.us.

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“If you have an apple and I have an apple and we exchange these apples then you and I will still each have one apple. But if you have an idea and I have an idea and we exchange these ideas, then each of us will have two ideas.” — George Bernard Shaw (1856-1950)
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