ASQ / AQA Meeting – November 9, 2011

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Topic: Designing and Deploying Performance Metrics

The presentation provides an overview of how managers and supervisors can design and deploy performance measurement systems to improve the productivity of their areas.  It also instructs managers on the most important task – how to use the measurement system to encourage excellence in performance through developing people, processes, systems and procedures.

 What is the Focus of the Presentation?

The presentation discusses the concept of productivity and why productivity is so important to an organization.  It highlights the relationship between high quality and high productivity and emphasizes the importance of measurement in producing both high quality and high productivity.  It teaches the properties of a well designed measurement system and provides instruction on how to design, align and report with performance metrics.

 Presentation Purpose:

As a result of this presentation, the audience will understand:

• The Value of Designing and Deploying Quality and Performance Metrics.  (Why measure!)
• The Benefits of Systematically Measuring Performance.
• The Properties of a Well Designed Measurement System.  (Best Practices)
• Measurement System Development and Reporting

The Verdict Is In — Baldrige Is About Revenue and Jobs!

Posted by Harry Hertz, the Baldrige Cheermudgeon

In these days of careful scrutiny of all business investments, a common request of us is “Prove Baldrige is worth the effort.” We have data of all types, including data shared by Cargill about performance of their business units correlated with their use of the Baldrige-based Cargill Excellence framework. It seemed one additional clear piece of evidence would be to look at the five businesses that are two-time recipients of the Baldrige Award. Why them? For two reasons: 1. They clearly used Baldrige for an extended period, since at least six years must elapse before they can re-apply after receiving the Award, and 2. They represent a significant time span, reflecting the history and evolution of the Baldrige Program and Criteria. Solectron received its second Baldrige Award in 1997 and MEDRAD in 2010. The other two-time winners are Ritz-Carlton Hotel Company, Texas Nameplate and Sunny Fresh Foods (now Cargill Kitchen Solutions).  As a group, they represent large business, small business, manufacturing, and service.

We looked at three areas of potential growth: sites, revenue, and jobs. While individual results are proprietary for some of the companies, we could clearly see common patterns and the medians for the group are impressive! The median growth in number of sites was 67%. The median growth in revenue was 93%. And the median growth in jobs was 63%.

What would it be like, if every U.S. business and organization used Baldrige for six or more years? Would they all achieve these results? I don’t know, but I certainly would like to know. I am sure we would all be better off as a nation!

A Passing Fad—Not!

Originally Posted by Pamela Wong

You’ve probably heard someone somewhere describe Baldrige as a “flavor of the month.” Our award winners, however, quickly dispel that judgment.

Take, for example, the University of Wisconsin–Stout, which in 2001 became the first university to receive the Baldrige Award. Since 2001, here are some examples of the university’s achievements:  

• It’s enrollment grew from about 8,000 students to a record 9,339 in 2010.
• Despite our nation’s economic woes, 98 percent of its first-year graduates report that they are employed this year.
• Through its two-year-old Discovery Center, UW-Stout collaborates with businesses, industries, and communities in dealing with their challenges. Discovery Center clients report increased sales, cost savings, investments, and jobs.

 UW–Stout remains a strong supporter of the Baldrige Program and the Criteria for Performance Excellence. At the 23^rd Quest for Excellence last April, their representatives presented a session on the use of social media in higher education. Social media is part of the 2011–2012 Criteria (item 3.1) as an important method for listening to customers.

Far from being a passing fad, maintaining its “quest for excellence” is a theme at Stout. The university’s provost, Dr. Julie Furst-Bowe, is traveling three times this year through the Fulbright Specialists Program to the Azerbaijan Diplomatic Academy in Baku, Azerbaijan.

 “This project will help the academy build and develop its internal quality assurance processes,” Furst-Bowe said. “I will assist the faculty and administrators in developing policies and procedures and work with them to create new academic programs to meet the needs of a growing student population.”

 Furst-Bowe will be speaking on September 27 at the Baldrige Regional Conference in Birmingham, AL. Join us and hear more of UW–Stout’s story!