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GOOD MORNING

MALCOLM BALDRIGE CORE CONCEPTS

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)

The Baldrige Theory and Concepts:


Baldrige Criteria for Performance Excellence 1. Leadership 2. Strategic Planning 3. Customer Focus 4. Measurement, Analysis and Knowledge Management 5. Workforce Focus 6. Process Management 7. Results

The Baldrige Theory and Concepts (Contd):


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 (Contd):


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

Visionary Leadership

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

Managing for Innovation


The MBNQA defines Managing for innovation as the

means of making meaningful change to improve an

organizations programs, services, and processes


and to create new value for the organizations stakeholders.

Knowledge management and Innovation

Customer-Driven Excellence

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 todays customers desires and as well as future innovations.

Customer-Driven Excellence (Contd)


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 InputProcess-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-ProcessOutput Model (Contd)


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 (Contd)


Some influences about quality taking into

consideration customers 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 (Contd)


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 (Contd)


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 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 1998


This 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 its 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.

Agility

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

Focus on the Future

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 (Contd)


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

Management by Fact

A company cannot improve what it cannot measure.

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 (contd)


Area 2:

Human Resource Focus


Process Management

Business Results

Information and Analysis (contd)


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

Societal Responsibility

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

Organizational and Personal Learning

What is Organisational Learning?


AGYRIS AND SCHN, 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?Contd


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 Learning


To 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

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 (contd):


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 (contd):


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

organizations 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 Perspective

System Perspective
The 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 Problem Goal Seeking Input Output Feedback Internal & External Environment Interdependence Subsystem

System Perspective The Baldrige Framework

System Perspective The Baldrige Framework cond


Leadership Triad

- Category 1 Leadership - Category 2 Strategic Planning - Category 3 Customer/ Market focus

System Perspective The Baldrige Framework cond


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
MBNQAs 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 management of quality and performance

the

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 (contd)
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.

Question Time ?

Thank You!!

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