malcolm baldrige
TRANSCRIPT
TEAM MEMBERS:Gaju Kamini
Gobin Hemant
Goolamally Shehnaaz
Greedharry Chandinee
Gungadin Khooshal
Gunness Kishan
Introduction Howard Malcolm Baldrige (1894 – 1985)
Malcolm Baldrige National Quality Award (MBNQA)
Baldrige Criteria for Performance Excellence1.Leadership2.Strategic Planning3.Customer Focus4.Measurement, Analysis and Knowledge
Management5.Workforce Focus6.Process Management7.Results
The Baldrige Theory and Concepts:
The Baldrige Theory and Concepts (Cont’d):
Baldrige Core Concepts and Values:
1.Visionary Leadership
2.Customer-driven Excellence
3.Organizational and Personal Learning
4.Valuing Workforce Members and Partners
5.Agility
6.Focus on the Future
The Baldrige Theory and Concepts (Cont’d):
Baldrige Core Concepts and Values:
7. Managing for Innovation
8. Management by Fact
9.Societal Responsibility
10.Focus on Results and Creating Value
11.Systems Perspectives
Traits of Visionary Leadership ( Leonard, 2006)Ability to motivate workers for better performance
Ability to motivate workers to work towards a
sense of mission with regards to the organization
Setting up of internal mechanism of controls rather
than external
Sense of communion
Managing for Innovation
The MBNQA defines Managing for innovation
“as the means of making meaningful change
to improve an organization’s programs,
services, and processes and to create new
value for the organization’s stakeholders”.
Customer-Driven Excellence
Quality is judged by customers.
Product and services that contribute values to
customers leads to customer satisfaction.
Customer-driven excellence has both current
and future components, that is, understanding
today’s customers’ desires and as well as future
innovations.
Customer-Driven Excellence (Cont’d)
“The totality of features and characteristics of
a product or service that bear on its ability to
satisfy or implied needs”. – For instance; ISO
9000 Series Standards.
Juran- “ Quality is fitness for purpose”.
Importance of customer to achieve quality based on
Input-Process-Output Model
“Making things right for the customer”, stated
by Philip Crosby in his contribution to quality
Many organisations do the same mistake of
perceiving input as raw materials and other
components needed to provide a service or
for production.
Importance of customer to achieve quality based on Input-Process-Output Model (Cont’d)
Customer Driven is equal to Quality whereby
quality is useless if customer needs are
unknown for the manufacturing of a product
THE KYC MODEL – KNOWING YOUR CUSTOMER AND DIGGING
OUT FUTURE NEEDS (1)Without knowing your customers,
companies risk of failure are not just higher
but they can even face great difficulties in
producing quality products or delivering
superior service, hence it is essential to
know your customer.
THE KYC MODEL – KNOWING YOUR CUSTOMER AND DIGGING
OUT FUTURE NEEDS (2)
David Limehouse (1999), ‘technologies are
being put to practice in order to deliver
important information about customers;
hence the KYC has become a theory to
achieve quality for many firms.’
CUSTOMERS PERCEPTION TO QUALITY
Hill suggests that the role of quality has
"changed from an order winner to a qualifier".
Hill's order winners are the attributes of a
marketing mix that are important to the
customer and that an organization excels in,
which result in customer satisfaction and long-
term relationships.
CUSTOMERS PERCEPTION TO QUALITY (Cont’d)
Some influences about quality taking into
consideration customer’s perception are:
1.Performance that is fitness for use, hence
meeting customers need
2.Features – secondary characteristics of a
product which are untold nut expected by the
customer
CUSTOMERS PERCEPTION TO QUALITY (Cont’d)
3. Service – good service creating a customer –
added value strategy
4. Warranty – reliability on the product for a
longer life span
5. Price – the higher the price the higher the
value
6. Reputation – brand name
TOOLS FOR IDENTIFYING CUSTOMER NEEDS
1. Comment card – on time of purchase
attached with product
2. Customer questionnaire - surveys address by
mail o telephones which is quite costly.
3. Focus group – select customers to
interviewing them
TOOLS FOR IDENTIFYING CUSTOMER NEEDS (Cont’d)
4. Toll- free telephones – call for free to give
opinions
5. Customer visits
6. Report card – sent to customers on a
quarterly basis for continual improvement
7. The internet and computers.
RITZ – CARLTON Hotel RITZ – CARLTON Hotel situated along the European
countries is one of the companies holding customer
in the highest esteem, according to the expert
magazine and Gerard van Grisven area manager of
the hotel. The vision of RITZ-CARLTON hotel is
“exemplary customer vision”, so they opted for a
customer driven strategy rather than operational one
which differentiate them from that of competitors.
Valuing Workforce Members and Partners
Valuing employee means committing to their
satisfaction, development, and well being.
Valuing only employees is not also the key to
success but according to the Baldrige concept,
it is also essential to value the other partners
that are the key investors without whom there
will no capital, customers and also suppliers
The Hartman's value theory - Jan Mattsson in the year of
1998This theory is commonly base on measurement
of value for employees; it shows how much a
company is valuing its employees and what is to
be done to value them more.
This theory shows concern for valuing employees
and also various forms are using this theory.
Challenges in Valuing employees
Demonstrating your leader that it’s necessary to have
the commitment of your employees
Recognition that go beyond the regular compensation
system
Development and progression within your organization
Knowledge sharing to your employees
Creating an environment that encourages risk taking
Importance for valuing external partners
Just in time purpose.
Customer relationship, customer loyalty.
Switch to substitute products.
Availability of funds from investors
Companies implementing the concept of valuing partners
and employees
BASF – THE CHEMICAL COMPANY CHINA
ROYAL BANK OF CANADA
BASF – THE CHEMICAL COMPANY CHINA
One of the successful chemical organization
nowadays is the BASF which is situated in
china and according to its managers the
reason for its success is due to valuing its
employees by making them feel that all of
them works like a family.
ROYAL BANK OF CANADA
According to CATHY BARROW the editor of
CRM magazines, the royal bank known for its
excellent supplier relation approach of
business has adopted the CRM approach
(CUSTOMER RELATION MEASUREMENT) for
further improvement of its service and now
also involves its line employees.
Defining “Agility”
Agility – gaining importance
Agility is the capacity for rapid change and
flexibility.
Agility
A major success factor in meeting competitive
challenges is the design- to- introduction.
Product or service feature initiation on
innovation cycle time.
Agility
Applying the “Agility Concepts” in Microsoft
Industry.
Emerging information Technology sector
Microsoft Windows Vista – Premium Edition
replaced by the “Ultimate Edition”
Defining “Focus on the Future”
Based on the creation of a sustainable
organization
Requires understanding of the short and long
term factors
Long-term commitment to key stakeholders;
for instance; customers, workforce, suppliers,
public among others
Organizations' planning should anticipate:
Customer expectations
New opportunities
The increasing global market place
The technological developments
The evolving e-commerce environment
New customers and market segments
Organizations' planning should anticipate (Cont’d)
The evolving regulatory requirements
Societal expectations and strategic moves by
competitors
An example applied to Malcolm Baldrige “Focus on the Future” Apple
Incorporation
Pioneered technological appliances for the next
generation:
Computers
IPods
I phones
Latest I pads
Supports human at their ease of doing routine tasks
Measurements should derive from business
needs and strategy, and should provide
critical data and information about key
business processes, output and results
Information and Analysis
Area 1:
Leadership
Strategic Planning
Customer and Market focus
Information and Analysis (cont’d)
Area 2:
Human Resource Focus
Process Management
Business Results
Information and Analysis (cont’d)
Area 3:
Information and Analysis
Strategic Quality Management (SQM)
Customer focus
Leadership
Continuous improvement
Strategic quality planning
Design quality, speed and prevention
People participation and partnership
Fact-based management.
Generic concepts for management by fact
Demonstrating Value
Putting Value into operation
How operation translates into results
Continuous improvement
Davis in 2001 identified three types of responsibilities, namely:
Economic Responsibility
Environmental Responsibility
Social Responsibility
Definition of social responsibility
The responsibility of any organization towards
the society.
Types of stakeholders:
Internal stakeholders
Interface stakeholders
External stakeholders
Schrader (2003): the instruments for corporate community involvement
Sponsoring
Cause-related marketing
Establish a foundation
Partner with NGO
Employee Community involvement
Corporate Community roundtable
Pyramid Of Corporate Social Responsibilities: Schwartz and
Carroll
What is Organisational Learning?
AGYRIS AND SCHÖN, 1978
"the detection and correction of error"
FIOL AND LYLES, 1985
"the process of improving actions through better
knowledge and understanding"
What is Organisational Learning?Cont‘d
HUBER, 1991)
"if through its processing of information, the range of
its [organization's] potential behaviours is changed"
What does Organisational Learning comprise?
Learning form the bulk of an organisation but organisational
learning is more than the sum of the parts
Individuals form the bulk of the organisation – they must
establish the necessary forms and processes to enable
organisational learning
Learning systems not only influence immediate members but
also future members due to the accumulation of histories,
experiences, norms, and stories
Personal Learning
Personal is defined as something which has to do with the self.
Therefore with regards to personal learning it can be defined
as learning that is done mostly by oneself for growth and
personal benefit.
It can be said that the learning potential of an organization lies
behind the learning capabilities of its employees.
How Individuals Learn:Individual Learning Capabilities
Verbal or declarative knowledge
e.g. facts and organised information
Intellectual skills
e.g. the ability to apply rules to specific instances
Cognitive strategies
e.g. practices of retrieving and thinking
How Individuals Learn:Individual Learning Capabilities
Attitudes
e.g. factors influencing personal decisions towards
knowledge assets
Motor skills
e.g. muscular movements enabling the precise
execution of procedures
Importance of Organizational and Personal
LearningTo increase competitive advantage, innovation and
effectiveness
To become more adaptable to change
Important for the growth and development of organisations
Learning increases information sharing, communication,
understanding, and the quality of decisions made in
organisations
The greater the uncertainty in the environment the greater the
need for learning.
Ending phrase
Organisations learn only through individuals who learn.
Individual learning however does not guarantee
organizational learning but without it there cannot be
organizational learning.
Focus on Results and Creating Value
Was implemented as a result of shortcoming of many
early total quality management efforts.
Why?
When results were measured, organizations generally
measured what was available and easy, and not what was
important
However with the implementation of the Baldrige
program over the last decade, a set of "results
imperatives" have been developed – stating what to
measure and how to use the measurements.
These result imperatives are as follows:
Results should be tied to key business and customer
requirements.
Results should be tied to key product/service and
support processes.
Results should gauge progress on key strategic
objectives and their associated action plans.
These result imperatives are as follows (cont’d):
Results need to track "levels and trends." Tracking
the level of performance means knowing where one
stands relative to goals and examples of high
performance (obtained through benchmarking).
Tracking trends ensures that the progress made and
the rates of progress are acceptable.
These result imperatives are as follows (cont’d):
Results must be linked and produce the measures
senior leaders use for their organizational analysis and
decision-making.
Results must be actionable and action generating.
Creating Value:
Following the importance of results we now see the link of an
organization’s performance measurements and its need to
focus on key results.
Results should be used to create and balance value for key
stakeholders of an organization.
Those stakeholders are:
customers, workforce, stockholders, suppliers and partners,
the public, and the community.
By creating value for its key stakeholders, an organization
builds loyalty and contributes to growing the economy, and
contributes to society.
Importance:
Focus on results is of much importance because the end result,
that is the product, will state whether the organization has been
able to provide the value the customer was looking for in the
product/service.
System PerspectiveThe system theory
The Perception theory
in line with the system theory
It provides an analytical framework of the
organisational processes
Example: CEO perspective v/s Bottom line workers
perspective
System Theory
Viewing “Organisation” as an “Organism”- Such that all the elements are interrelated
Von Bertalanffy (1930s) termed the system theory as “a set of related components that work together in a particular environment to achieve the system's objective.”
Why is the system theory so complete?
Systems Theory Terms:The ProblemGoal SeekingInput – Output – FeedbackInternal & External EnvironmentInterdependence – “Subsystem”
System Perspective – The Baldrige Framework
System Perspective – The Baldrige Framework con’d
Leadership Triad- Category 1 – Leadership- Category 2 – Strategic Planning- Category 3 – Customer/ Market focus
System Perspective – The Baldrige Framework con’d
Result triad- Category 5 – Workforce focus- Category 6 – Process management - Category 7 – Results
Linker- Category 4 – Measurement, Analysis and
Knowledge management
Category 6 – Process Management
Key model in Baldrige Framework
- Organisation = Process v/s function oriented
- Focus on “Function” leads to ‘Departmental Barriers’.
- Achieving “QUALITY” = Process Focus
Sum-up system perspective
American Motto
“United we stand – divided we fall”
NB: Integration builds on alignment
System Perspective – The Flowchart
Affiliation of Baldrige concepts to Quality Gurus’ theories
Among the most complete quality achieving model in the world.
Deming, Juran and Crosby has always perceived “Quality” as a philosophy
But Baldrige has been able to fit “Quality” in a program.
Among the few models that quantifies “Quality”.
MBNQA v/s European Quality Awards (EQA)
Both awards are based on a points system
MBNQA’s primary concern is to promote awareness of quality to increase competitiveness while EQA considers human resource development and management strategies more vital.
EQA covers financial, information, and material resources while MBNQA covers only the management of quality and performance
Conclusion
Malcolm Baldrige gives value-added feedback
for organization to move forward and sustain
for the future.
Baldrige model encloses all the possible ways
of applying quality to outstand the organization
amongst others as it is not restricted to a single
component of assessing quality.
Conclusion (cont’d)Therefore, it can be concluded that though
the Malcolm Baldrige have got certain
limitations, yet it is classified to be one of the
best model existing to implement quality in
any organizational context.
