Archive for Steve George
I've been involved with Baldrige since writing my first award application in 1989. I have worked with five Baldrige Award winners and several state award winners and have researched, written, edited, and evaluated dozens of Baldrige assessments. I've also written four Baldrige-related books, been a Baldrige examiner, provided Baldrige training, and written and edited Baldrige case studies. My goal for Baldrige.com is to create an online community for sharing information and best practices, answering questions, and elevating the quality of the organizations we buy from, work for, supply, and get services from. Our vision is: Every Organization a Baldrige Organization!
Juran Institute Acquires Baldrige.com
I am pleased to announce the sale of Baldrige.com to the Juran Institute. Founded by quality guru Dr. Joseph M. Juran in 1979, the Juran Institute offers a broad range of services to help organizations improve performance, including Baldrige Assessment and consulting, Lean and Six Sigma, change management, quality planning, team building, and the Juran Management System. You can learn more about the company here.
Dr. Juran was a vocal advocate for the Baldrige program. I interviewed him in 1991 for my first book on the Baldrige model and he was kind enough to write a reference for the book. At the end of the interview, he not only invited me to his annual conference, then called IMPRO, but he offered to pay all of my expenses to attend. Before the conference, Dr. Juran delivered, “Making Quality Happen,” which remains one of the most informative sessions I’ve ever taken part in about the value of a systems approach to quality management and improvement.
I quoted him in my book, The Baldrige Quality System: “Prior to the Baldrige Award, any company that didn’t have a quality revolution was confused. Quality consultants were tugging them in different directions. We lost a decade that way. The criteria can become the focal point around which the renaissance can be built.”
Dr. Juran’s prediction has not come true—yet. While Baldrige still has the potential to inspire a quality and performance renaissance, it has not gained the traction enjoyed by programs such as Lean and Six Sigma, in part because…
23Jan2012 | Steve George | 0 comments | ContinuedBenefit-to-Cost Ratio for Baldrige: 820-to-1
A new study of the net social value of the Baldrige Performance Excellence Program concludes that the program “creates great value for the U.S. economy.”
Economists Albert N. Link from the University of North Carolina and John T. Scott from Dartmouth College published their evaluation of 45 Baldrige Award applicants on December 16, 2011. The report is available here (pdf). The Baldrige program asked the 274 organizations that submitted applications from 2007 to 2010 to participate in the study and 45 accepted the invitation. Link and Scott used a counterfactual evaluation method to determine the benefit-to-cost ratio, asking what the private sector would have had to invest to achieve the same level of benefits through the Baldrige program. Benefits were realized in three areas:
- Savings to the applicants in investment costs to achieve the same level of benefits from their performance excellence strategies as they realized from the Baldrige program
- Gains by consumers in greater satisfaction from higher quality products and services
- Gains to the economy from saving scarce resources because the Baldrige Criteria were available
As I understand it, the counterfactual evaluation case made by the study is that organizations that integrate Baldrige increase demand because they offer higher quality products and services and they reduce costs because of more efficient operations. They earn more and spend less.
Link and Scott describe the methodology in their report. They concluded that the ratio of social benefits to social costs among the 45 organizations that responded to the survey was 351:1 while the ratio for all Baldrige Award…
19Jan2012 | Steve George | 0 comments | ContinuedA Systematic Approach to Change
The decision to do a Baldrige assessment is a decision to change the organization. Questions will be asked that prompt leaders to reconsider the way they do things. Gaps in the day-to-day conduct of business will be exposed. Unacceptable results will shine light on ineffective processes. Cursed with new knowledge, senior leaders can either ignore it and accept that the current management system is unable to achieve the results they desire or embrace change.
The opportunities for improvement revealed by a Baldrige assessment contain the logic for acting upon them: Your results are flat or negative because this or that process is broken. Fix the process and improve your results. Measure your progress. Validate it with your customers. Repeat.
Unfortunately, the logic of the change is usually lost to everyone but the leaders who enact it, which can render it ineffective. In a recent article on Forbes, author Carol Kinsey Goman explains why human beings resist change. According to brain analysis technology, our work habits are controlled by a part of the brain called the basal ganglia. When we do things the way we’ve always done them, we feel good. Change stimulates the prefrontal cortex, which is linked to the amygdala, which controls our “fight or flight” response. When change overwhelms the prefrontal cortex, the amygdale triggers physical and psychological disorientation and pain. Even if we know logically that a change is necessary and positive, our brains can react negatively.
Goman offers six suggestions for helping your workforce handle change:
- Trust people to see the…
10 Insights into Strategic Planning
Joan Magretta wrote a guide to strategy guru Michael Porter’s work called Understanding Michael Porter. As she worked on the book, she kept a list of insights, including “that most companies think they have a strategy when they don’t,” as she noted in an article on HBR.
Here are her ten insights and how they relate to the Baldrige model:
- You gain a competitive advantage by creating unique value for customers. Customer-driven excellence is a Baldrige core value, defined as an organization’s performance and quality being judged by its customers. If customers rate your performance and quality high, you will gain a competitive advantage.
- Your strategy must also clarify what the organization will not do. The Baldrige model asks several questions about how you develop strategies that will help you prioritize your strategies.
- “Competition is about profits, not market share,” writes Magretta. You grow a company by increasing profits, not market share.
- Brilliant strategies will not lead to performance excellence unless you execute them. The Baldrige Criteria devote an entire section to strategy implementation.
- Good strategies are interconnected and build on core competencies. The Baldrige Criteria ask how your strategic objectives capitalize on your core competencies and balance short- and longer-term challenges and opportunities.
- While it’s important to be flexible, your organization must stand for and excel at something. You must have the resources and capabilities to execute the plan
- You need not predict the future to commit to a strategy.
- “Vying to be the best is an intuitive but self-destructive approach to competition,” Magretta writes.
- You need both a distinctive value proposition and…
Baldrige Is a Continuous Improvement Program
Those leaders who decide to give Baldrige a spin often focus on the obvious step: conducting a Baldrige assessment. Some may apply for a state award or the Baldrige Award, but most do an internal assessment, which identifies strengths and opportunities for improvement. If the assessment is done right and professionally evaluated, the list of opportunities is long—much longer than any organization can address is one year. As a result, too many organizations only conduct that one assessment, thus missing their opportunity to build a world-class management system.
Baldrige Award winners integrate Baldrige by performing regular—usually annual—Baldrige assessments. The process of producing assessments and prioritizing and acting on the opportunities they reveal institutionalizes a culture of continuous improvement. It keeps everyone focused on what is most important for the organization to grow and excel. It improves the alignment of people and processes with the organization’s goals, objectives, and strategies. Best of all, it delivers results, as the award application summaries of Baldrige Award winners show.
IndustryWeek recently reported on a survey it conducted with TBM Consulting about the impact of continuous-improvement programs on three financial metrics: anticipated revenue growth, operating income growth, and cash flow over the past year. “Across the board, companies with no continuous improvement programs performed worse across all three measures,” Jill Jusko concluded here:
- More than 50% of respondents with no continuous improvement program said they expect revenue growth to be 3% or less in 2012, compared to fewer than 20% of companies with mature continuous improvement programs.
- Nearly half of…
Improving Team Performance
When is a metric not a metric?
In “Five New Management Metrics You Need to Know,” James Slavet suggests new metrics that great teams should measure. Few are new, and even fewer could be considered metrics since they are largely unmeasurable, but being aware of them may help your team improve performance, so here they are:
- Flow State Percentage. How many hours a day team members are “in the flow”—focused on a task without interruption—divided by the number of hours they work. According to Slavet, “studies have shown that each time flow state in disrupted it takes 15 minutes to get back into flow, if you can get back at all.” Find ways to reduce interruptions and productivity will go up.
- Anxiety-Boredom Continuum. People are more productive when they are challenged without being overwhelmed, and they tend to be unproductive when they are bored. Observe team members for signs of boredom (low energy, showing up late and leaving early) or anxiety (reacting to setbacks with anger or frustration, getting sick a lot), ask them where they are on the continuum, and strike an effective balance.
- Meeting Promoter Score. At the end of each meeting, “ask the participants to each rate from 1 to 10 how effective the meeting was, with one suggestion for making the meeting better,” Slavet writes. Then act on the suggestions.
- Compound Weekly Learning Rate. The “ability to learn is like the compounding interest on an investment: after two or three years, a relentless learner stands head and shoulders above his peers,” states Slavet. One way to…
Still Passionate about Baldrige
“There is no question that our adherence to the Baldrige performance criteria has made us a much more efficient university, and helped us weather repeated cuts in state aid without affecting educational quality,” write Charles W. Sorensen and Julie Furst-Bowe, chancellor and provost at the University of Wisconsin-Stout (article here).
UW-Stout earned the Baldrige Award in 2001. Ten years later it remains passionate about the value of integrating Baldrige. According to Sorenson and Furst-Bowe, “The most important change brought about by our Baldrige experience, which is now part of our culture, was the establishment of an inclusive planning process to ensure that, in Baldrige speak, ‘all arrows are pointing in the same direction,’ and not at cross-purposes.”
Having worked with five Baldrige Award winners, I can attest to the value of aligning processes and people with the goals, strategies, and objectives of the organization. Whether you are in business, healthcare, or education, the ability to focus all activities on shared goals dramatically improves performance and is a major reason Baldrige Award winners achieve world-class results.
Sorenson and Furst-Bowe also state that “the Baldrige model…also led to a number of important innovations, including our e-Scholar or student laptop program, our designation as Wisconsin’s polytechnic university, and our Discovery Center for applied research and economic development outreach.”
Most organizations embrace Baldrige because they want to improve quality and performance and reduce waste. Few think about being more innovative, but “managing for innovation” is a core value of the Baldrige model. As organizations understand and improve their…
3Jan2012 | Steve George | 0 comments | Continued
