Baldrige Criteria - Business Excellence

P1 - Preface : Organization Profile

The Organizational Profile is a snapshot of your organization, the key influences on how you operate, and the key challenges you face.

P.1 Organizational Description

Describe your organization's business environment and your key relationships with customers, suppliers, and other partners.

Within your response, include answers to the following questions:

a. Organizational Environment

(1) What are your organization’s main products and/or services? Include a description of how they are delivered to customers.

(2) What is your organizational context/culture? Include your purpose, vision, mission, and values, as appropriate.

(3) What is your employee profile? Include educational levels, workforce and job diversity, bargaining units, use of contract employees, and special safety requirements, as appropriate.

(4) What are your major technologies, equipment, and facilities?

(5) What is the regulatory environment under which your organization operates? Include occupational health and safety regulations; accreditation requirements; and environmental, financial, and product regulations.

b. Organizational Relationships

(1) What are your key customer groups and/or market segments? What are their key requirements for your products and services? Include how these requirements differ among customer groups and/or market segments, as appropriate.

(2) What are your most important types of suppliers and dealers and your most important supply chain requirements? What are your key supplier and customer partnering relationships and communication mechanisms?

P.2 Organizational Challenges

Describe your organization's competitive environment, your key strategic challenges, and your system for performance improvement.

Within your response, include answers to the following questions:

a. Competitive Environment

(1) What is your competitive position? Include your relative size and growth in your industry and the numbers and types of your competitors.

(2) What are the principal factors that determine your success relative to your competitors? Include any changes taking place that affect your competitive situation.

b. Strategic Challenges

What are your key strategic challenges? Include operational, human resource, business, and global challenges, as appropriate.

c. Performance Improvement System

How do you maintain an organizational focus on performance improvement? Include your approach to systematic evaluation and improvement of key processes and to fostering organizational learning and knowledge sharing.

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Category 1 - Leadership (120 pts)

Approach-Deployment

The Leadership Category examines how your organization's senior leaders address values, directions, and performance expectations, as well as a focus on customers and other stakeholders, empowerment, innovation, learning, and organizational directions. Also examined is how your organization addresses its responsibilities to the public and supports its key communities.

Area To Address :

1.1 Organizational Leadership (80 pts.)

Describe how senior leaders guide your organization, including how they review organizational performance.

Within your response, include answers to the following questions:

a. Senior Leadership Direction

(1) How do senior leaders set and deploy organizational values, short- and longer-term directions, and performance expectations, including a focus on creating and balancing value for customers and other stakeholders? Include how senior leaders communicate values, directions, and expectations through your leadership system and to all employees.

(2) How do senior leaders create an environment for empowerment, innovation, organizational agility, and organizational and employee learning?

b. Organizational Performance Review

(1) How do senior leaders review organizational performance and capabilities to assess organizational success, competitive performance, progress relative to short- and longer-term goals, and the ability to address changing organizational needs? Include the key performance measures regularly reviewed by your senior leaders. Also, include your key recent performance review findings.

(2) How are organizational performance review findings translated into priorities for improvement and opportunities for innovation? How are they deployed throughout your organization and, as appropriate, to your suppliers/partners to ensure organizational alignment?

(3) How do senior leaders use organizational performance review findings to improve both their own leadership effectiveness and your leadership system?

1.2 Public Responsibility and Citizenship (40 pts.)

Describe how your organization addresses its responsibilities to the public and practices good citizenship.

Within your response, include answers to the following questions:

a. Responsibilities to the Public

(1) How do you address the impacts on society of your products, services, and operations? Include your key processes, measures, and targets for regulatory and legal requirements and for addressing risks associated with your products, services, and operations.

(2) How do you anticipate public concerns with current and future products, services, and operations? How do you prepare for these concerns in a proactive manner?

(3) How do you accomplish ethical business practices in all stakeholder transactions and interactions?

b. Support of Key Communities

How do your organization, your senior leaders, and your employees actively support and strengthen your key communities? Include how you identify key communities and determine areas of emphasis for organizational involvement and support.

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Category 2 - Strategic Planning (85pts)

Aproach-Deployment

The Strategic Planning Category examines how your organization develops strategic objectives and action plans. Also examined are how your chosen strategic objectives and action plans are deployed and how progress is measured.

Area To Address :

2.1 Strategy Development (40 pts.)

Describe how your organization establishes its strategic objectives, including enhancing its competitive position and overall performance.

Within your response, include answers to the following questions:

a. Strategy Development Process

(1) What is your overall strategic planning process? Include key steps, key participants, and your short- and longer-term planning time horizons.

(2) How do you ensure that planning addresses the following key factors? Briefly outline how relevant data and information are gathered and analyzed to address these factors:

• customer and market needs/expectations/opportunities

• your competitive environment and your capabilities relative to competitors

• technological and other key changes that might affect your products/services and/or how you operate

• your strengths and weaknesses, including human and other resources

• your supplier/partner strengths and weaknesses

• financial, societal, and other potential risks

b. Strategic Objectives

(1) What are your key strategic objectives and your timetable for accomplishing them?     Include key goals/targets, as appropriate.

(2) How do your strategic objectives address the challenges identified in response to P.2 in your Organizational Profile? How do you ensure that your strategic objectives balance the needs of all key stakeholders?

2.2 Strategy Deployment (45 pts.)

Describe how your organization converts its strategic objectives into action plans. Summarize your organization's action plans and related key performance measures/indicators. Project your organization's future performance on these key performance measures/indicators.

Within your response, include answers to the following questions:

a. Action Plan Development and Deployment

(1) How do you develop and deploy action plans to achieve your key strategic objectives? Include how you allocate resources to ensure accomplishment of your action plans.

(2) What are your key short- and longer-term action plans? Include key changes, if any, in your products/services, your customers/markets, and how you operate.

(3) What are your key human resource plans that derive from your short- and longer-term strategic objectives and action plans?

(4) What are your key performance measures/indicators for tracking progress relative to your action plans?

How do you ensure that your overall action plan measurement system achieves organizational alignment and covers all key deployment areas and stakeholders?

b. Performance Projection

What are your performance projections for your key measures/indicators for both your short- and longerterm planning time horizons? How does your projected performance compare with competitors’ performance, key benchmarks, goals, and past performance, as appropriate?

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Process Model: "How To Conduct Strategic Planning Process"

Category 3 - Customer & Market Focus (85pts)

Approach-Deployment

The Customer and Market Focus Category examines how your organization determines requirements, expectations, and preferences of customers and markets. Also examined is how your organization builds relationships with customers and determines the key factors that lead to customer acquisition, satisfaction, [and] retention and to business expansion.

Area To Address :

3.1 Customer and Market Knowledge (40 pts.)

Describe how your organization determines requirements, expectations, and preferences of customers and markets to ensure the continuing relevance of your products/services and to develop new opportunities.

Within your response, include answers to the following questions:

a. Customer and Market Knowledge

(1) How do you determine or target customers, customer groups, and/or market segments? How do you include customers of competitors and other potential customers and/or markets in this determination?

(2) How do you listen and learn to determine key customer requirements (including product/service features) and their relative importance/value to customers’ purchasing decisions for purposes of product/service planning, marketing, improvements, and other business development? In this determination, how do you use relevant information from current and former customers, including marketing/sales information, customer retention data, won/lost analysis, and complaints? If determination methods vary for different customers and/or customer groups, describe the key differences in your determination methods.

(3) How do you keep your listening and learning methods current with business needs and directions?

3.2 Customer Relationships and Satisfaction (45 pts.)

Describe how your organization builds relationships to acquire, satisfy, and retain customers and to develop new opportunities. Describe also how your organization determines customer satisfaction.

Within your response, include answers to the following questions:

a. Customer Relationships

(1) How do you build relationships to acquire and satisfy customers and to increase repeat business and positive referrals?

(2) How do you determine key customer contact requirements and how they vary for differing modes of access? How do you ensure that these contact requirements are deployed to all people involved in the response chain? Include a summary of your key access mechanisms for customers to seek information, conduct business, and make complaints.

(3) What is your complaint management process? Include how you ensure that complaints are resolved effectively and promptly and that all complaints are aggregated and analyzed for use in improvement throughout your organization and by your partners, as appropriate.

(4) How do you keep your approaches to building relationships and providing customer access current with business needs and directions?

b. Customer Satisfaction Determination

(1) How do you determine customer satisfaction and dissatisfaction and use this information for improvement?

Include how you ensure that your measurements capture actionable information that predicts customers’ future business with you and/or potential for positive referral. Describe significant differences in determination methods for different customer groups.

(2) How do you follow up with customers on products/services and transactions to receive prompt and actionable feedback?

(3) How do you obtain and use information on your customers’ satisfaction relative to customers’ satisfaction with competitors and/or benchmarks, as appropriate?

(4) How do you keep your approaches to determining satisfaction current with business needs and directions?

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Category 4 - Information & Anaylsys (90pts)

Approach-Deployment

The Information and Analysis Category examines your organization's information management and performance measurement systems and how your organization analyzes performance data and information.

Area To Address :

4.1 Measurement and Analysis of Organizational Performance ( 50 pts)

Describe how your organization provides effective performance management systems for aligning, analyzing, and improving performance at all levels and in all parts of your organization.

Within your response, include answers to the following questions:

a. Performance Measurement

(1) How do you gather and integrate data and information from all sources to support daily operations and organizational decision making?

(2) How do you select and align measures/indicators for tracking daily operations and overall organizational performance?

(3) How do you select and ensure the effective use of key comparative data and information?

(4) How do you keep your performance measurement system current with business needs and directions?

b. Performance Analysis

(1) What analyses do you perform to support your senior leaders’ organizational performance review and your organization’s strategic planning?

(2) How do you communicate the results of organizational-level analysis to work group and/or functionallevel operations to enable effective support for decision making?

(3) How do you align the results of organizational-level analysis with your key business results, strategic objectives, and action plans? How do these results provide the basis for projections of continuous and breakthrough improvements in performance?

4.2 Information Management (40 pts.)

Describe how your organization ensures the quality and availability of needed data and information for employees, suppliers/partners, and customers.

Within your response, include answers to the following questions:

a. Data Availability

(1) How do you make needed data and information available? How do you make them accessible to employees, suppliers/partners, and customers, as appropriate?

(2) How do you ensure data and information integrity, reliability, accuracy, timeliness, security, and confidentiality?

(3) How do you keep your data and information availability mechanisms current with business needs and directions?

b. Hardware and Software Quality

(1) How do you ensure that hardware and software are reliable and user friendly?

(2) How do you keep your software and hardware systems current with business needs a and directions?

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Category 5 - Human Resource Focus ( 85pts )

Approach-Deployment

The Human Resource Focus Category examines how your organization motivates and enables employees to develop and utilize their full potential in alignment with your organization's overall objectives and action plans. Also examined are your organization's efforts to build and maintain a work environment and an employee support climate conducive to performance excellence, and to personal and organizational growth.

Area To Address :

5.1 Work Systems (35 pts.)

Describe how your organization's work and jobs, compensation, career progression, and related workforce practices motivate and enable employees and the organization to achieve high performance.

Within your response, include answers to the following questions:

a. Work Systems

(1) How do you organize and manage work and jobs to promote cooperation, initiative/innovation, your organizational culture, and the flexibility to keep current with business needs? How do you achieve effective communication and knowledge/skill sharing across work units, jobs, and locations, as appropriate?

(2) How do you motivate employees to develop and utilize their full potential? Include formal and/or informal mechanisms you use to help employees attain job- and career-related development/learning objectives and the role of managers and supervisors in helping employees attain these objectives.

(3) How does your employee performance management system, including feedback to employees, support high performance and a customer and business focus? How do your compensation, recognition, and related reward/incentive practices reinforce these objectives?

(4) How do you accomplish effective succession planning for senior leadership and throughout the organization?

(5) How do you identify characteristics and skills needed by potential employees? How do you recruit, hire, and retain new employees? How do your work systems capitalize on the diverse ideas, cultures, and thinking of the communities with which you interact (your employee hiring and customer communities)?

5.2 Employee Education, Training, and Development (25 pts.)

Describe how your organization's education and training support the achievement of your overall objectives, including building employee knowledge, skills, and capabilities and contributing to high performance.

Within your response, include answers to the following questions:

a. Employee Education,Training, and Development

(1) How do education and training contribute to the achievement of your action plans? How does your education and training approach balance short- and longer-term organizational objectives and employee needs, including development, learning, and career progression?

(2) How do you seek and use input from employees and their supervisors/managers on education and training needs and delivery options?

(3) How do you address in your employee education, training, and development your key organizational needs associated with technological change, management/leadership development, new employee orientation, safety, performance measurement/improvement, and diversity?

(4) How do you deliver education and training? Include formal and informal delivery, including mentoring and other approaches, as appropriate. How do you evaluate the effectiveness of education and training, taking into account individual and organizational performance?

(5) How do you reinforce the use of knowledge and skills on the job?

5.3 Employee Well-Being and Satisfaction (25 pts.)

Describe how your organization maintains a work environment and an employee support climate that contribute to the well-being, satisfaction, and motivation of all employees.

Within your response, include answers to the following questions:

a. Work Environment

How do you improve workplace health, safety, and ergonomics? How do employees take part in improving them? Include performance measures and/or targets for each key environmental factor. Also include significant differences, if any, based on varying work environments for employee groups and/or work units.

b. Employee Support and Satisfaction

(1) How do you determine the key factors that affect employee well-being, satisfaction, and motivation? How are these factors segmented for a diverse workforce and for varying categories and types of employees, as appropriate?

(2) How do you support your employees via services, benefits, and policies? How are these tailored to the needs of a diverse workforce and different categories and types of employees, as appropriate?

(3) What formal and/or informal assessment methods and measures do you use to determine employee well-being, satisfaction, and motivation? How do you tailor these methods and measures to a diverse workforce and to different categories and types of employees, as appropriate? How do you use other indicators, such as employee retention, absenteeism, grievances, safety, and productivity, to assess and improve employee well-being, satisfaction, and motivation?

(4) How do you relate assessment findings to key business results to identify priorities for improving the work environment and employee support climate?

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Category 6 - Process Management (85pts)

Approach-Deployment

The Process Management Category examines the key aspects of your organization's process management, including customer-focused design, product and service delivery, key business, and support processes . This Category encompasses all key processes and all work units.

Area To Address :

6.1 Product and Service Processes (45 pts.)

Describe how your organization manages key processes for product and service design and delivery.

Within your response, include answers to the following questions:

a. Design Processes

(1) What are your design processes for products/services and their related production/delivery systems and processes?

(2) How do you incorporate changing customer/market requirements into product/service designs and production/delivery systems and processes?

(3) How do you incorporate new technology, including e-technology, into products/ services and into production/delivery systems and processes, as appropriate?

(4) How do your design processes address design quality and cycle time, transfer of learning from past projects and other parts of the organization, cost control, new design technology, productivity, and other efficiency/effectiveness factors?

(5) How do you design your production/delivery systems and processes to meet all key operational performance requirements?

(6) How do you coordinate and test your design and production/delivery systems and processes? Include how you prevent defects/rework and facilitate trouble-free and timely introduction of products/services.

b. Production/Delivery Processes

(1) What are your key production/delivery processes and their key performance requirements?

(2) How does your day-to-day operation of key production/delivery processes ensure meeting key performance requirements?

(3) What are your key performance measures/indicators used for the control and improvement of these processes? Include how in-process measures and real-time customer and supplier/partner input are used

in managing your product and service processes, as appropriate.

(4) How do you perform inspections, tests, and process/performance audits to minimize warranty and/or rework costs, as appropriate? Include your prevention-based processes for controlling inspection and test costs, as appropriate.

(5) How do you improve your production/delivery systems and processes to achieve better process performance and improvements to products/services, as appropriate? How are improvements shared with other organizational units and processes and your suppliers/partners, as appropriate?

6.2 Business Processes (25 pts.)

Describe how your organization manages its key processes that lead to business growth and success.

Within your response, include answers to the following questions:

a. Business Processes

(1) What are your key business processes for business growth and success?

(2) How do you determine key business process requirements, incorporating input from customers and suppliers/partners, as appropriate? What are the key requirements for these processes?

(3) How do you design and perform these processes to meet all the key requirements?

(4) What are your key performance measures/indicators used for the control and improvement of these processes? Include how in-process measures and customer and supplier feedback are used in managing your business processes, as appropriate.

(5) How do you minimize overall costs associated with inspections, tests, and process/performance audits, as appropriate?

(6) How do you improve your business processes to achieve better performance and to keep them current with business needs and directions? How are improvements shared with other organizational units and processes, as appropriate?

6.3 Support Processes (15 pts.)

Describe how your organization manages its key processes that support your daily operations and your employees in delivering products and services.

Within your response, include answers to the following questions:

a. Support Processes

(1) What are your key processes for supporting your daily operations and your employees in delivering products and services?

(2) How do you determine key support process requirements, incorporating input from internal customers, as appropriate? What are the key operational requirements (such as productivity and cycle time) for these processes?

(3) How do you design these processes to meet all the key requirements?

(4) How does your day-to-day operation of key support processes ensure meeting key performance requirements?

(5) What are your key performance measures/indicators used for the control and improvement of these processes? Include how in-process measures and internal customer feedback are used in managing your support processes, as appropriate.

(6) How do you minimize overall costs associated with inspections, tests, and process/performance audits?

(7) How do you improve your support processes to achieve better performance and to keep them current with business needs and directions? How are improvements shared with other organizational units and processes, as appropriate?

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Category 7 - Business Results (450pts)

The Business Results Category examines your organization's performance and improvement in key business areas-customer satisfaction, product and service performance, financial and marketplace performance, human resource results, and operational performance. Also examined are performance levels relative to those of competitors.

Area To Address :

7.1 Customer-Focused Results (125 pts.)

Summarize your organization's key customer-focused results, including customer satisfaction and product and service performance results. Segment your results by customer groups and market segments, as appropriate. Include appropriate comparative data.

Provide data and information to answer the following questions:

a. Customer Results

(1) What are your current levels and trends in key measures/indicators of customer satisfaction and dissatisfaction, including comparisons with competitors’ levels of customer satisfaction?

(2) What are your current levels and trends in key measures/indicators of customer-perceived value, customer retention, positive referral, and/or other aspects of building relationships with customers, as appropriate?

b. Product and Service Results

What are your current levels and trends in key measures/indicators of product and service performance that are important to your customers.

7.2 Financial and Market Results (125 pts.)

Summarize your organization's key financial and marketplace performance results by market segments, as appropriate. Include appropriate comparative data.

Provide data and information to answer the following questions:

a. Financial and Market Results

(1) What are your current levels and trends in key measures/indicators of financial performance, including aggregate measures of financial return and/or economic value, as appropriate?

(2) What are your current levels and trends in key measures/indicators of marketplace performance, including market share/position, business growth, and new markets entered, as appropriate?

7.3 Human Resource Results (80 pts.)

Summarize your organization's key human resource results, including employee well-being, satisfaction, and development and work system performance. Segment your results to address the diversity of your workforce and the different types and categories of employees, as appropriate. Include appropriate comparative data.

Provide data and information to answer the following questions:

a. Human Resource Results

(1) What are your current levels and trends in key measures/indicators of employee well-being, satisfaction and dissatisfaction, and development?

(2) What are your current levels and trends in key measures/indicators of work system performance and effectiveness?

7.4 Organizational Effectiveness Results (120 pts.)

Summarize your organization's key performance results that contribute to the achievement of organizational effectiveness. Include appropriate comparative data.

Provide data and information to answer the following questions:

a. Operational Results

(1) What are your current levels and trends in key measures/indicators of the operational performance of key design, production, delivery, business, and support processes? Include productivity, cycle time, supplier/partner performance, and other appropriate measures of effectiveness and efficiency.

(2) What are your results for key measures/indicators of accomplishment of organizational strategy?

b. Public Responsibility and Citizenship Results

What are your results for key measures/indicators of regulatory/legal compliance and citizenship?

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