“Management of a system requires knowledge of the interrelationship between all the subprocesses within the system and of everybody that works in it. Management’s job is to optimize the entire system, to coordinate the activities of each component. It is their task to see to it that the activity of each component contributes to the aim of the system.” – W. Edwards Deming

Deming wasn’t a big fan of the Baldrige Award. It was nothing personal; he just didn’t believe awards were effective incentives. I doubt he felt the same way about the Baldrige model, however, because the Baldrige model delivers the knowledge he valued.

First, it offers a systems perspective of how an organization works and of how all the subprocesses within the system are interrelated. This is no small feat, yet the Baldrige model manages to cover everything in seven categories and to link those categories to each other to describe a complete management system.

If you are a leader, your job, according to Deming, is to optimize your entire management system, coordinate the activities of each component, and make sure each component contributes to the aim of the system. Baldrige helps you do that. In fact, it’s hard to see how any leader can accomplish this without integrating the Baldrige model. He or she may be able to generate short-term gains in some areas, such as financial performance, or change a culture to be more innovative or customer focused, but those are subprocesses. You cannot optimize an entire system unless you understand that system and how each component contributes to it.

I’ve worked with several very successful organizations, leaders in their industries, and the first time they did a Baldrige assessment, they inevitably scored in the 300 point range out of 1,000 possible points. Several scored lower. Why? They lacked knowledge of how their management systems worked, of the interrelationship of various subprocesses, and of how each component needed to be aligned to achieve their mission and vision. They became better organizations when they gained that knowledge.

The Baldrige model has been refined for more than 20 years. It’s the foundation for award programs around the world. If you want to understand how your management system works and how you can improve it, a Baldrige assessment can help you learn how to optimize the entire system.

Which, if you are a leader, is your job.

To find out more about the Baldrige model and assessment process, read:

• Baldrige Is the Enemy of Good
• Is Baldrige Right for Your Organization
• 10 Steps to World Class
• How to Integrate Baldrige
• The Baldrige Criteria
• 10 Steps to an Effective Baldrige Assessment

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