Malcolm Baldrige Quality Circle

No Comments

Print Friendly, PDF & Email

The Malcolm Baldrige framework is based on Deming’s PDCA cycle and quality circle. The quality award is provided to organisations that utilise certain criteria proving performance excellence under this framework.  This criteria is embodied in 7 distinct categories:

1. Leadership

2. Strategic Planning

3. Customer Focus

4. Measurement, Analysis and Knowledge Management

5. Workforce Focus

6. Process Management

7. Results

1. Leadership

An organization’s senior leaders should set directions and create a customer focus, clear and visible values and high expectations. The directions, values and expectations should balance the needs of all the stakeholders of an organization. Leaders should ensure the creation of strategies, systems and methods for achieving performance excellence, stimulating innovation, building knowledge and capabilities and ensuring organizational sustainability. The defined values and strategies should help guide all the activities and decisions. Leaders should inspire and encourage your entire workforce to contribute, to develop and learn, to be innovative and to embrace change. Leaders should be responsible to an organization’s governance body for their action and performance. The governance body should be responsible ultimately to all the stakeholders for the ethics, actions and performance of an organization and its senior leaders.

2. Strategic Planning

Focus on the Future

Creating a sustainable organization requires understand the short and longer term factors that affect an organization and the marketplace. The pursuit of sustainable growth and sustained performance leadership requires a strong future orientation and a willingness to make long-term commitments to key stakeholders-customers, workforce, suppliers, partners and stakeholders; the public and community.

Managing for Innovation

Innovation means meaningful change to improve an organizations products, services, programs, processes, operations and business model to create new value for the organization’s stakeholders. Innovation should lead an organization to new dimensions of performance. Innovation is no longer strictly the purview of research and development departments; it is important for all aspects of your operations and all work systems and work processes. Organizations should be led and managed so that innovation becomes part of the learning culture. Innovation should be integrated into daily work and should be supported by performance improvement system. Systematic processes for innovation should reach across an entire organization.

3. Customer Focus

Customer-Driven Excellence

Customer-drive excellence is a strategic concept. It is directed towards customer retention and loyalty, market share gain and growth. It demands constant sensitivity to changing and emerging customer and market requirements and to the factors that drive customer engagement. It demands close attention to the voice of the customer. It demands anticipating changes in the marketplace. It demands a customer-focussed culture.

Societal Responsibility

“Societal well-being and benefit” refers to leadership and support – within the limits of an organization’s resources- of publicly important purposes. Such purposes might include improving education and health care in your community, pursuing environmental excellence, being a role model for socially important issues, practicing resource conservation, performing community services, improving industry and business practices and sharing non-proprietary information.

4. Measurement, Analysis and Knowledge Management

Management by Fact

Organizations depend on the measurement and analysis of performance. Such measurements should derive from business needs and strategy and they should provide critical data and information about key processes, outputs and results. Many types of data and information are needed for performance management. Performance measurement should include customers, product and process performance; comparisons of operational, market and competitive performance; supplier, workforce, partner, cost and financial performance and governance and compliance outcomes. Data should be segmented by, for example, markets, product lines and workforce groups to facilitate analysis.

Focus on Results and Create Value

An organization’s performance measurements need to focus on key results. Results should be used to create and balance value for your key stakeholders – your customers, workforce, stockholders, suppliers and partners; the public and the community. By creating value for your key stakeholders, an organization builds loyalty, contributes to growing the economy and contributes to society. To meet the sometimes conflicting and changing aims that balancing value implies, organizational strategy explicitly should include key stakeholder requirements – which will help ensure that plans and actions meet differing stakeholder needs and avoid adverse impacts on any stakeholders. The use of a balanced composite of leading and lagging performance measures offers an effective means to communicate short and longer term priorities, monitor actual performance and provide a clear basis for improving results.

5. Workforce Focus

Organization and personal learning

Achieving the highest levels of organizational performance requires a well-executed approach to organizational and personal learning that includes sharing knowledge via systematic processes. Organizational learning includes both continuous improvement of existing approaches and significant change or innovation, leading to new goals and approaches. Learning needs to be embedded in the way an organization operates.

Valuing Workforce Members and Partners

An organization’s success depends increasingly on an engaged workforce that benefits from meaningful work, clear organizational direction and performance accountability and that has a safe, trusting and cooperative environment. Additionally, the successful organization capitalizes on the diverse backgrounds, knowledge, skills, creativity and motivation of its workforce and partners.

6. Process Management

Agility

Success in today’s ever-changing, globally competitive environment demands agility-a capacity for rapid change and flexibility. Organizations face ever-shorter cycles for the introduction of new/improved products and non-profit and government organizations are increasingly being asked to respond rapidly to new or emerging social issues. Major improvements in response times often require new work systems, simplification of work units and processes, or the ability for rapid changeover from one process to another. A cross-trained and empowered workforce is a vital asset in such a demanding environment.

7. Results

Within an organization, the results need to be managed across different parameters and outcomes:

  • Product outcomes
  • Customer-focused outcomes
  • Financial and market outcomes
  • Workforce-focused outcomes
  • Process Effectiveness outcomes
  • Leadership outcomes