Baldrige and Financial Performance

Leaders looking for reasons to consider integrating Baldrige should be aware that the Baldrige model focuses on results. Whatever your organization’s goals, evaluating and improving your management system through regular Baldrige assessments will help you achieve them.

You can test the validity of that statement by looking at the results of organizations that have received the Baldrige Award. In this article, let’s consider the key financial results of a sampling of Award recipients:

  • Maintained steady per-bushel costs from FY2006 to FY2008 despite 50-80% increase in energy costs, 30% increase in chemical costs, and 10% increase in maintenance costs (Cargill Corn Milling)
  • Per-pupil expenditures among the lowest in North Carolina while being ranked academically in the state’s top 10 school systems (Iredell-Statesville Schools)
  • Average charge $2,000 lower than that of its main competitor (Poudre Valley Health System)
  • Revenue per associate approximately $4 million, nearly four times the IndustryWeek 90th percentile benchmark (PRO-TEC)
  • Revenue increase from $33 million in 1989 to $847 million in 2006 (Mercy Health System)
  • Increased revenue by 56% from 2001 to 2006 (Sharp HealthCare)
  • Overall revenue increased from $640 million in FY2001 to over $1 billion in FY2007 (ARDEC)
  • Operating margin grew from 35% in 2003 to 50% in 2006, while operating expenses remained well below those of its largest competitor (Premier)
  • Sales increased 93% from 2000 to 2006, with total revenues nearly doubling (MESA Products, Inc.)
  • Care-based cost management saved more than $11 million in last six years (North Mississippi Medical Center)
  • Since receiving its first Baldrige Award in 1999, increased revenues 93% by 2005 (Sunny Fresh Foods)
  • Gross profit percentage increased by 51.3% from 2000 to 2004 (Park Place Lexus)
  • Sales increased 72% from 1999 to 2004 in a relatively flat industry (The Bama Companies, Inc.)
  • Revenue doubled in four years (Boeing AS)
  • Revenue growth of 15%/year since 1998 (Medrad)
  • Sales increased 400% from 1990 to 2003 (Stoner)
  • Profits up 54% while industry declined 35% (Caterpillar Financial)
  • 7% return on assets from 1999 to 2002 while industry declined (Motorola CGISS)
  • Net income increased by 60% in five years (Los Alamos National Bank)

You can learn more about these and other Baldrige Award recipients’ results—and the processes that produced them—online at the Baldrige program’s Web site.

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