Lucelo, Camille Joy D.

Total Quality Management

BSA 2-2 Chapter 7: Performance Measurement
THE MALCOLM BALDRIGE
NATIONAL QUALITY AWARD (MBNQA)
CRITERIA
The Baldrige award
An award established by the U.S. Congress in 1987 to raise awareness of quality management
and recognize U.S. companies that have implemented successful quality management systems. The
Malcolm Baldrige National Program and the award was established after President Reagan signed into
law the Malcolm Baldrige National Quality Improvement Act of 1987.
Awards can be given annually in six categories: manufacturing, service, small business,
education, healthcare and nonprofit. The award is named after the late Secretary of Commerce Malcolm
Baldrige, a proponent of quality management. The U.S. Commerce Departments National Institute of
Standards and Technology manages the award, and ASQ administers it.

The BALDRIGE CRITERIA
The Criteria take a holistic, systems
approach in viewing an organizations
performance management system across
seven categories (see the diagram at right).
With an emphasis on feedback and a fact-
based, knowledgedriven system for
improving performance and competitiveness,
the Criteria have helped thousands of
organizations in the United States and
around the world report results such as:
Growth in customer satisfaction,
engagement, and loyalty
World-class product and service
outcomes
Role model process efficiency
Increased workforce and volunteer satisfaction and engagement
Growth in revenue and market share, and improved financial results
Increased student learning outcomes
Dramatically improved patient outcomes, safety, and loyalty
The Criteria focus on your results in the key areas of products and processes, customers,
workforce, leadership and governance, and finance and markets. This composite of measures ensures
that your strategies are balancedthat they do not inappropriately trade off among important
stakeholders, objectives, or short- and longer-term goals.

Criteria and Items
Point
Values
LEADERSHIP 120
STRATEGIC PLANNING 85
CUSTOMER FOCUS 85
MEASUREMENT, ANALYSIS, AND KNOWLEDGE MANAGEMENT 90
WORKFORCE FOCUS 85
OPERATIONS FOCUS 85
RESULTS 450
TOTAL 1000

1 Leadership (120 pts.)
The Leadership category asks how senior leaders personal actions guide and sustain your organization. It also asks about
your organizations governance system; how your organization fulfills its legal, ethical, and societal responsibilities; and how it
supports its key communities.
1.1 Senior Leadership: How do your senior leaders lead? (70 pts.)
Describe how senior leaders personal actions guide and sustain your organization. Describe how senior leaders
create an environment for customer engagement, innovation, and high performance. Describe how senior leaders
communicate with your workforce and key customers.
In your response, include answers to the following questions:
a. Vision, Values, and Mission
(1) Vision and Values How do senior leaders set your organizations vision and values? How do senior leaders deploy the vision
and values through your leadership system, to the workforce, to key suppliers and partners, and to customers and other
stakeholders, as appropriate? How do senior leaders actions reflect a commitment to those values?
(2) Promoting Legal and Ethical Behavior How do senior leaders actions demonstrate their commitment to legal
and ethical behavior? How do they promote an organizational environment that requires it?
(3) Creating a Sustainable Organization How do senior leaders create a sustainable organization? How do they
create an environment for the achievement of your mission, improvement of organizational performance,
performance leadership, and organizational and personal learning;
create a workforce culture that delivers a consistently positive customer experience and fosters customer engagement;
create an environment for innovation and intelligent risk taking, achievement of your strategic objectives, and
organizational agility; and
participate in succession planning and the development of future organizational leaders?
b. Communication and Organizational Performance
(1) Communication How do senior leaders communicate with and engage the entire workforce and key customers? How
do they encourage frank, two-way communication, including effective use of social media? How do they
communicate key decisions? How do they take an active role in motivating the workforce, including participation
in reward and recognition programs, to reinforce high performance and a customer and business focus?
(2) Focus on Action How do senior leaders create a focus on action that will achieve the organizations objectives, improve its
performance, enable innovation and intelligent risk taking, and attain its vision? How do senior leaders identify needed actions? In
setting expectations for organizational performance, how do senior leaders include a focus on creating and balancing value for
customers and other stakeholders?
1.2 Governance and Societal Responsibilities: How do you govern and
fulfill your societal responsibilities? (50 pts.)
Describe your organizations approach to responsible governance and leadership improvement. Describe how
you ensure legal and ethical behavior, fulfill your societal responsibilities, and support your key
communities.
In your response, include answers to the following questions:
a. Organizational Governance
(1) Governance System How does your organization review and achieve the following key aspects of its governance
system?
Accountability for the managements actions
Fiscal accountability
Transparency in operations, selection of governance board members, and disclosure policies for those mem-
bers, as appropriate
Independence and effectiveness of internal and external audits
Protection of stakeholder and stockholder interests, as appropriate
Succession planning for senior leaders
(2) Performance Evaluation How do you evaluate the performance of your senior leaders, including the chief executive?
How do you use these performance evaluations in determining executive compensation? How do you evaluate your
governance board members performance, as appropriate? How do your senior leaders and governance board use these
performance evaluations to advance their development and improve both their own effectiveness as leaders and that
of your board and leadership system, as appropriate?
b. Legal and Ethical Behavior
(1) Legal and Regulatory Behavior How do you address any adverse impacts of your products and operations
on society? How do you anticipate public concerns with your current and future products and operations? How
do you prepare for these impacts and concerns proactively, including through conservation of natural resources
and effective supply-chain management processes, as appropriate? What are your key compliance processes, measures,
and goals for meeting and surpassing regulatory and legal requirements, as appropriate? What are your key
processes, measures, and goals for addressing risks associated with your products and operations?
(2) Ethical Behavior How do you promote and ensure ethical behavior in all interactions? What are your key processes and
measures or indicators for enabling and monitoring ethical behavior in your governance structure, throughout your
organization, and in interactions with your workforce, customers, partners, suppliers, and other stakeholders? How do
you monitor and respond to breaches of ethical behavior?
c. Societal Responsibilities and Support of Key Communities
(1) Societal Well-Being How do you consider societal well-being and benefit as part of your strategy and daily
operations? How do you contribute to the well-being of your environmental, social, and economic systems?
(2) Community Support How do you actively support and strengthen your key communities? What are your key
communities? How do you identify them and determine areas for organizational involvement, including areas that leverage
your core competencies? How do your senior leaders, in concert with your workforce, contribute to improving these communities?

2 Strategic Planning (85 pts.)
The Strategic Planning category asks how your organization develops strategic objectives and action plans, implements them,
changes them if circumstances require, and measures progress.
2.1 Strategy Development: How do you develop your strategy? (45 pts.)
Describe how your organization establishes a strategy to address its strategic challenges and leverage its
strategic advantages and strategic opportunities. Describe how your organization makes key work system decisions.
Summarize your organizations key work systems and its key strategic objectives and their related goals.
In your response, include answers to the following questions:
a. Strategy Development Process
(1) Strategic Planning Process How do you conduct your strategic planning? What are the key process steps? Who
are the key participants? What are your short- and longer-term planning horizons? How does your strategic
planning process address these planning horizons? How does your strategic planning process address the need for
organizational agility and operational flexibility?
(2) Innovation How do you create an environment that supports innovation? How do you identify strategic opportunities?
How do you decide which strategic opportunities are intelligent risks for pursuing? What are your key strategic
opportunities?
(3) Strategy Considerations How do you collect and analyze relevant data and develop information on these key
elements as part of your strategic planning process?
Your strategic challenges and strategic advantages
Risks to your organizations sustainability
Potential blind spots in your strategic planning process and information
Your ability to execute the strategic plan
(4) Work Systems and Core Competencies What are your key work systems? How do you make work system decisions?
How do you decide which key processes will be accomplished by external suppliers and partners? How do those
decisions consider your core competencies and the core competencies of potential suppliers and partners? How do you
determine future organizational core competencies?
b. Strategic Objectives
(1) Key Strategic Objectives What are your organizations key strategic objectives and your timetable for achieving them?
What are your most important goals for these strategic objectives? What key changes, if any, are planned in your
products, your customers and markets, your suppliers and partners, and your operations?
(2) Strategic Objective Considerations How do your strategic objectives
address your strategic challenges and leverage your core competencies, strategic advantages, and strategic opportunities;
balance the short- and longer-term time horizons; and
consider and balance the needs of all key stakeholders?
2.2 Strategy Implementation: How do you implement your strategy? (40
pts.)
Describe how you convert your strategic objectives into action plans. Summarize your action plans, how you deploy
them, and your key measures or indicators of progress. Project your future performance on these measures or
indicators relative to key comparisons.
In your response, include answers to the following questions:
a. Action Plan Development and Deployment
(1) Action Plan Development How do you develop your action plans? What are your key short- and longer-term action
plans, and what is their relationship to your strategic objectives?
(2) Action Plan Implementation How do you deploy your action plans throughout the organization to your workforce
and to key suppliers and partners, as appropriate, to ensure that you achieve your key strategic objectives? How do you
ensure that you can sustain the key outcomes of your action plans?
(3) Resource Allocation How do you ensure that financial and other resources are available to support the
achievement of your action plans while you meet current obligations? How do you allocate these resources to
support the plans? How do you manage the financial and other risks associated with the plans to ensure your
financial viability?
(4) Workforce Plans What are your key workforce plans to support your short- and longer-term strategic objectives and
action plans? How do the plans address potential impacts on your workforce members and any potential changes in
workforce capability and capacity needs?
(5) Performance Measures What key performance measures or indicators do you use to track the achievement and
effectiveness of your action plans? How do you ensure that your overall action plan measurement system reinforces
organizational alignment?
(6) Action Plan Modification How do you establish and implement modified action plans if circumstances require a
shift in plans and rapid execution of new plans?
b. Performance Projections
For the key performance measures or indicators identified in 2.2a(5), what are your performance projections for your short- and your
longer-term planning horizons? How does your projected performance on these measures or indicators compare with the
projected performance of your competitors or comparable organizations and with key benchmarks, as appropriate? If there are
gaps in performance against your competitors or comparable organizations, how will you address them?

3 Customer Focus (85 pts.)
The Customer Focus category asks how your organization engages its customers for long-term marketplace success, including
how your organization listens to the voice of the customer, builds customer relationships, and uses customer information to improve
and to identify opportunities for innovation.
3.1 Voice of the Customer: How do you obtain information from your
customers? (40 pts.)
Describe how you listen to your customers and gain information on their satisfaction, dissatisfaction, and
engagement.
In your response, include answers to the following questions:
a. Customer Listening
(1) Listening to Current Customers How do you listen to, interact with, and observe customers to obtain actionable
information? How do your listening methods vary for different customers, customer groups, or market segments? How
do you use social media and Web-based technologies to listen to customers, as appropriate? How do your
listening methods vary across the customer life cycle? How do you seek immediate and actionable feedback from
customers on the quality of products, customer support, and transactions?
(2) Listening to Potential Customers How do you listen to former customers, potential customers, and competitors
customers to obtain actionable information and to obtain feedback on your products, customer support, and
transactions, as appropriate?
b. Determination of Customer Satisfaction and Engagement
(1) Satisfaction and Engagement How do you determine customer satisfaction and engagement? How do your
determination methods differ among your customer groups and market segments, as appropriate? How do your
measurements capture actionable information to use in exceeding your customers expectations and securing
your customers engagement for the long term?
(2) Satisfaction Relative to Competitors How do you obtain information on your customers satisfaction
relative to their satisfaction with your competitors? How do you obtain information on your customers
satisfaction relative to the satisfaction of customers of other organizations that provide similar products or relative
to industry benchmarks, as appropriate?
(3) Dissatisfaction How do you determine customer dissatisfaction? How do your measurements capture actionable
information to use in meeting your customers requirements and exceeding their expectations in the future?
3.2 Customer Engagement: How do you serve customers needs to engage
them and build relationships? (45 pts.)
Describe how you determine product offerings and communication mechanisms to support your customers.
Describe how you build customer relationships.
In your response, include answers to the following questions:
a. Product Offerings and Customer Support
(1) Product Offerings How do you determine customer and market requirements for product offerings and
services? How do you identify and adapt product offerings to meet the requirements and exceed the
expectations of your customer groups and market segments (identified in the Organizational Profile)? How do you
identify and adapt product offerings to enter new markets, to attract new customers, and to create opportunities
to expand relationships with current customers, as appropriate?
(2) Customer Support How do you enable customers to seek information and support? How do you enable them to
conduct business with you and give feedback on your products and customer support? What are your key means
of customer support, including your key communication mechanisms? How do they vary for different customers,
customer groups, or market segments? How do you determine your customers key support requirements? How do you
ensure that these requirements are deployed to all people and processes involved in customer support?
(3) Customer Segmentation How do you use information on customers, markets, and product offerings to identify
current and anticipate future customer groups and market segments? How do you consider competitors customers and
other potential customers and markets in this segmentation? How do you determine which customers, customer
groups, and market segments to emphasize and pursue for business growth?
b. Building Customer Relationships
(1) Relationship Management How do you market, build, and manage relationships with customers to
acquire customers and build market share;
retain customers, meet their requirements, and exceed their expectations in each stage of the customer life cycle;
and
increase their engagement with you?
How do you leverage social media to enhance customer engagement and relationships with your organization?
(2) Complaint Management How do you manage customer complaints? How do you ensure that complaints are resolved
promptly and effectively? How does your management of customer complaints enable you to recover your customers confidence
and enhance their satisfaction and engagement?
4 Measurement, Analysis, and
Knowledge Management (90 pts.)
The Measurement, Analysis, and Knowledge Management category asks how your organization selects, gathers, ana-
lyzes, manages, and improves its data, information, and knowledge assets; how it learns; and how it manages information
technology. The category also asks how your organization uses review findings to improve its performance.
4.1 Measurement, Analysis, and Improvement of Organizational
Performance: How do you measure, analyze, and then improve
organizational performance? (45 pts.)
Describe how you measure, analyze, review, and improve organizational performance by using data and
information at all levels and in all parts of your organization. Describe how your organization uses
comparative and customer data to support decision making.
In your response, include answers to the following questions:
a. Performance Measurement
(1) Performance Measures How do you select, collect, align, and integrate data and information to use in tracking
daily operations and overall organizational performance, including progress on achieving strategic objectives and
action plans? What are your key organizational performance measures, including key short-term and longer-term
financial measures? How frequently do you track these measures? how do you use these data and information to
support organizational decision making, continuous improvement, and innovation?
(2) Comparative Data How do you select and ensure the effective use of key comparative data and information to
support operational and strategic decision making and innovation?
(3) Customer Data How do you select and ensure the effective use of voice-of-the-customer and market data and
information (including aggregated data on complaints) to build a more customer-focused culture and to support
operational and strategic decision making and innovation? How do you use data and information gathered through
social media, as appropriate?
(4) Measurement Agility How do you ensure that your performance measurement system can respond to rapid or
unexpected organizational or external changes?
b. Performance Analysis and Review
How do you review organizational performance and capabilities? How do you use your key organizational performance
measures in these reviews? What analyses do you perform to support these reviews and ensure that conclusions are
valid? How do your organization and its senior leaders use these reviews to assess organizational success, competitive
performance, financial health, and progress on achieving your strategic objectives and action plans? How do your
organization and its senior leaders use these reviews to assess your ability to respond rapidly to changing
organizational needs and challenges in your operating environment? How does your governance board review the
organizations performance and its progress on strategic objectives and action plans, if appropriate?
c. Performance Improvement
(1) Best Practices How do you identify organizational units or operations that are high performing? How do you
identify their best practices for sharing?
(2) Future Performance How do you use performance review findings (addressed in 4.1b) and key comparative and
competitive data in projecting future performance? How do you reconcile any differences between these projections
of future performance and performance projections developed for your key action plans (addressed in 2.2b)?
(3) Continuous Improvement and Innovation How do you use performance review findings (addressed in 4.1b) to develop
priorities for continuous improvement and opportunities for innovation? How do you deploy these priorities and opportunities
to work group and functional-level operations throughout your organization? When appropriate, how do you deploy the
priorities and opportunities to your suppliers, partners, and collaborators to ensure organizational alignment?

4.2 Knowledge Management, Information, and Information Technology:
How do you manage your organizational knowledge assets,
information, and information technology? (45 pts.)
Describe how your organization manages and grows its knowledge assets and learns. Describe how you
ensure the quality and availability of the data, information, software, and hardware needed by your
workforce, suppliers, partners, collaborators, and customers.
In your response, include answers to the following questions:
a. Organizational Knowledge
(1) Knowledge Management How do you
collect and transfer workforce knowledge;
transfer relevant knowledge from and to customers, suppliers, partners, and collaborators;
share and implement best practices; and
assemble and transfer relevant knowledge for use in your innovation and strategic planning processes?
(2) Organizational LearningHow do you use your knowledge and resources to embed learning in the way your
organization operates?
b. Data, Information, and Information Technology
(1) Data and Information Properties How do you manage your organizational data and information to ensure
their accuracy, their integrity and reliability, their timeliness, and their security and confidentiality?
(2) Data and Information Availability How do you make needed data and information available in a user-
friendly format to your workforce, suppliers, partners, collaborators, and customers, as appropriate?
(3) Hardware and Software Properties How do you ensure that hardware and software are reliable, secure, and
user-friendly?
(4) Emergency Availability In the event of an emergency, how do you ensure that hardware and software systems and data
and information continue to be available to effectively serve customers and business needs?

5 Workforce Focus (85 pts.)
The Workforce Focus category asks how your organization assesses workforce capability and capacity needs and builds a workforce
environment conducive to high performance. The category also asks how your organization engages, manages, and develops
your workforce to utilize its full potential in alignment with your organizations overall mission, strategy, and action plans.
5.1 Workforce Environment: How do you build an effective and supportive
workforce environment? (40 pts.)
Describe how you manage workforce capability and capacity to accomplish your organizations work. Describe
how you maintain a supportive and secure work climate.
In your response, include answers to the following questions:
a. Workforce Capability and Capacity
(1) Capability and Capacity How do you assess your workforce capability and capacity needs, including the skills,
competencies, certifications, and staffing levels you need?
(2) New Workforce Members How do you recruit, hire, place, and retain new workforce members? How do you ensure
that your workforce represents the diverse ideas, cultures, and thinking of your hiring and customer community?
(3) Work Accomplishment How do you organize and manage your workforce to
accomplish your organizations work,
capitalize on your organizations core competencies,
reinforce a customer and business focus, and
exceed performance expectations?
(4) Workforce Change Management How do you prepare your workforce for changing capability and capacity needs?
How have these needs, including staffing levels, changed over time? How do you manage your workforce, its
needs, and your needs to ensure continuity, prevent workforce reductions, and minimize the impact of such
reductions, if they become necessary? How do you prepare for and manage periods of workforce growth?
b. Workforce Climate
(1) Workplace Environment How do you address workplace environmental factors to ensure and improve work-
force health and security and workplace accessibility? What are your performance measures and improvement goals
for each of these workforce factors? For your different workplace environments, what significant differences are
there in these factors and their performance measures or targets?
(2) Workforce Benefits and Policies How do you support your workforce via services, benefits, and policies? How do you tailor
these to the needs of a diverse workforce and different workforce groups and segments? What key benefits do you offer your
workforce?

5.2 Workforce Engagement: How do you engage your workforce to achieve
organizational and personal success? (45 pts.)
Describe how you develop workforce members, managers, and leaders to achieve high performance, including
how you engage them in improvement and innovation.
In your response, include answers to the following questions:
a. Workforce Performance
(1) Elements of Engagement How do you determine the key elements that affect workforce engagement? How do you
determine these elements for different workforce groups and segments?
(2) Organizational Culture How do you foster an organizational culture that is characterized by open
communication, high-performance work, and an engaged workforce? How do you ensure that your organizational
culture benefits from the diverse ideas, cultures, and thinking of your workforce?
(3) Performance Management How does your workforce performance management system support high performance and
workforce engagement? How does it consider workforce compensation, reward, recognition, and incentive practices?
How does it reinforce intelligent risk taking to achieve innovation, reinforce a customer and business focus, and
reinforce achievement of your action plans?
b. Assessment of Workforce Engagement
(1) Assessment of Engagement How do you assess workforce engagement? What formal and informal assessment
methods and measures do you use to determine workforce engagement, including satisfaction? How do these methods
and measures differ across workforce groups and segments? How do you use other indicators, such as workforce retention,
absenteeism, grievances, safety, and productivity, to assess and improve workforce engagement?
(2) Correlation with Business Results How do you relate findings from your assessment of workforce engagement to
key business results reported in category 7 to identify opportunities for improvement in both workforce engagement
and business results?
c. Workforce and Leader Development
(1) Learningand Development System How does your learning and development system support the organiza-
tions needs and the personal development of your workforce members, managers, and leaders? How does the
system
address your organizations core competencies, strategic challenges, and achievement of its short-term and long-term
action plans;
support organizational performance improvement and innovation;
support ethics and ethical business practices;
improve customer focus;
ensure the transfer of knowledge from departing or retiring workforce members; and
ensure the reinforcement of new knowledge and skills on the job?
(2) Effectiveness of Learningand Development How do you evaluate the effectiveness and efficiency of your learning
and development system?
(3) Career Progression How do you manage effective career progression for your workforce members? How do you carry out
effective succession planning for management and leadership positions?

6 Operations Focus (85 pts.)
The Operations Focus category asks how your organization designs, manages, and improves its products and work processes
and improves operational effectiveness to deliver customer value and achieve organizational success and sustainability.
6.1 Work Processes: How do you design, manage, and improve your key
products and work processes? (45 pts.)
Describe how you design, manage, and improve your key work processes to deliver products that achieve
customer value and organizational success and sustainability. Summarize your organizations key work processes.
In your response, include answers to the following questions:
a. Product and Process Design
(1) Design Concepts How do you design your products and work processes to meet all key requirements? How do you
incorporate new technology, organizational knowledge, product excellence, and the potential need for agility
into these products and processes?
(2) Product and Process Requirements How do you determine key product requirements? How do you determine
key work process requirements? What are your organizations key work processes? What are the key requirements for
these work processes?
b. Process Management
(1) Process Implementation How does your day-to-day operation of work processes ensure that they meet key process
requirements? What key performance measures or indicators and in-process measures do you use to control and improve
your work processes? How do these measures relate to end-product quality and performance?
(2) Support Processes How do you determine your key support processes? What are your key support processes? How
does your day-to-day operation of these processes ensure that they meet key business support requirements?
(3) Product and Process Improvement How do you improve your work processes to improve products and performance and
reduce variability?
6.2 Operational Effectiveness: How do you ensure effective management of
your operations on an ongoing basis and for the future? (40 pts.)
Describe how you control costs, manage your supply chain, offer a safe workplace, prepare for potential
emergencies, and innovate for the future to ensure effective operations and deliver customer value.
In your response, include answers to the following questions:
a. Cost Control
How do you control the overall costs of your operations? How do you incorporate cycle time, productivity, and other
efficiency and effectiveness factors into your work processes? How do you prevent defects, service errors, and rework and
minimize warranty costs or customers productivity losses, as appropriate? How do you minimize the costs of
inspections, tests, and process or performance audits, as appropriate? How do you balance the need for cost control with
the needs of your customers?
b. Supply-Chain Management
How do you manage your supply chain? How do you select suppliers and ensure that they are qualified and
positioned to enhance your performance and your customers satisfaction? How do you measure and evaluate your
suppliers performance? How do you provide feedback to your suppliers to help them improve? How do you deal with
poorly performing suppliers?
c. Safety and Emergency Preparedness
(1) Safety How do you provide a safe operating environment? How does your safety system address accident
prevention, inspection, root-cause analysis of failures, and recovery?
(2) Emergency Preparedness How do you ensure that your organization is prepared for disasters or
emergencies? How does your disaster and emergency preparedness system consider prevention, continuity of
operations, and recovery?
d. Innovation Management
How do you manage innovation? How do you pursue the strategic opportunities that you determine are intelligent risks? How do you
make the financial and other resources available to pursue these opportunities? How do you discontinue pursuing
opportunities at the appropriate time to enhance support for higher-priority opportunities?
7 Results (450 pts.)
The Results category asks about your organizations performance and improvement in all key areasproduct and process results,
customer-focused results, workforce-focused results, leadership and governance results, and financial and market results. The category
asks about performance levels relative to those of competitors and other organizations with similar product offerings.
7.1 Product and Process Results: What are your product performance and
process effectiveness results? (120 pts.)
Summarize your key product performance and process effectiveness and efficiency results. Include results for
processes that directly serve your customers and that impact your operations and supply chain. Segment your
results by product offerings, customer groups and market segments, and process types and locations, as
appropriate. Include appropriate comparative data.
Provide data and information to answer the following questions:
a. Customer-Focused Product and Process Results
What are your current levels and trends in key measures or indicators of the performance of products and processes that are
important to and directly serve your customers? How do these results compare with the performance of your competitors
and other organizations with similar offerings?
b. Work Process Effectiveness Results
(1) Process Effectiveness and Efficiency What are your current levels and trends in key measures or indicators of the
operational performance of your key work and support processes, including productivity, cycle time, and other appropriate
measures of process effectiveness, efficiency, and innovation?
(2) Emergency Preparedness What are your current levels and trends in key measures or indicators of the effectiveness
of your organizations preparedness for disasters or emergencies?
c. Supply-Chain Management Results
What are your results for key measures or indicators of the performance of your supply chain, including its contribution to
enhancing your performance?

7.2 Customer-Focused Results: What are your customer-focused
performance results? (85 pts.)
Summarize your key customer-focused results, including those for customer satisfaction and engagement. Segment
your results by product offerings, customer groups, and market segments, as appropriate. Include appropriate
comparative data.
Provide data and information to answer the following questions:
a. Customer-Focused Results
(1) Customer Satisfaction What are your current levels and trends in key measures or indicators of customer satisfaction
and dissatisfaction? How do these results compare with those of your competitors and other organizations
providing similar products?
(2) Customer Engagement What are your current levels and trends in key measures or indicators of customer engagement, including those
for building customer relationships? How do these results compare over the course of your customer life cycle, as appropriate?

7.3 Workforce-Focused Results: What are your workforce-focused
performance results? (85 pts.)
Summarize your key workforce-focused results, including results for your workforce environment and for
workforce engagement. Segment your results to address the diversity of your workforce and to address your workforce
groups and segments, as appropriate. Include appropriate comparative data.
Provide data and information to answer the following questions:
a. Workforce Results
(1) Workforce Capability and Capacity What are your current levels and trends in key measures of workforce capability and
capacity, including appropriate skills and staffing levels?
(2) Workforce Climate What are your current levels and trends in key measures or indicators of your workforce climate,
including those for workforce health, safety, and security and workforce services and benefits, as appropriate?
(3) Workforce Engagement What are your current levels and trends in key measures or indicators of workforce engagement and
workforce satisfaction?
(4) Workforce Development What are your current levels and trends in key measures or indicators of workforce and leader
development?
7.4 Leadership and Governance Results: What are your senior leadership
and governance results? (80 pts.)
Summarize your key senior leadership and governance results, including those for fiscal accountability, legal
compliance, ethical behavior, societal responsibility, support of key communities, and strategy achievement.
Segment your results by organizational units, as appropriate. Include appropriate comparative data.
Provide data and information to answer the following questions:
a. Leadership, Governance, and Societal Responsibility Results
(1) Leadership What are your results for key measures or indicators of senior leaders communication and engagement
with the workforce and customers to deploy your vision and values, encourage two-way communication, and create a
focus on action?
(2) Governance What are your key current findings and trends in key measures or indicators of governance and internal and
external fiscal accountability, as appropriate?
(3) Law and Regulation What are your results for key measures or indicators of meeting and surpassing regulatory and
legal requirements?
(4) Ethics What are your results for key measures or indicators of ethical behavior and of stakeholder trust in your senior leaders
and governance? What are your results for key measures or indicators of breaches of ethical behavior?
(5) Society What are your results for key measures or indicators of your fulfillment of your societal responsibilities and
support of your key communities?
b. Strategy Implementation Results
What are your results for key measures or indicators of the achievement of your organizational strategy and action plans, including
taking intelligent risks and building and strengthening core competencies?

7.5 Financial and Market Results: What are your financial and marketplace
performance results? (80 pts.)
Summarize your key financial and marketplace performance results by market segments or customer groups, as
appropriate. Include appropriate comparative data.
Provide data and information to answer the following questions:
a. Financial and Market Results
(1) Financial Performance What are your current levels and trends in key measures or indicators of financial performance,
including aggregate measures of financial return, financial viability, and budgetary performance, as appropriate?
(2) Marketplace Performance What are your current levels and trends in key measures or indicators of marketplace performance,
including market share or position, market and market share growth, and new markets entered, as appropriate?

Scoring System
The scoring of responses to Baldrige Criteria for Performance Excellence items is based on
two evaluation dimensions: process (categories 16) and results (category 7).
To score Criteria responses, consider the following information relative to the item requirements and the scoring
guidelines (pages 3233):
The key business factors presented in the Organizational Profile
The maturity of the approaches, the breadth of their deployment, and the strengths of the learning and improvement
process and of the results presented
Scoring Dimensions
Process
Process refers to the methods your organization uses and improves to address the requirements in categories 16. The four
factors used to evaluate process are approach, deployment, learning, and integration (ADLI). Baldrige-based feedback
reflects strengths and opportunities for improvement in these factors. A score for a process item is a composite based on
overall performance, taking into account the four process factors.
Approach comprises
the methods used to carry out the process,
the appropriateness of these methods to the item requirements and your operating environment,
the effectiveness of your use of the methods, and
the degree to which the approach is repeatable and based on reliable data and information (i.e., systematic).
Deployment is the extent to which
your approach is applied in addressing item requirements that are relevant and important to your organization,
your approach is applied consistently, and
your approach is used by all appropriate work units.
Learning comprises
the refinement of your approach through cycles of evaluation and improvement,
the encouragement of breakthrough change to your approach through innovation, and
the sharing of refinements and innovations with other relevant work units and processes in your organization.
See From Fighting Fires to Innovation on the next page, which illustrates a progression through the levels of maturity
for this scoring dimension.
Integration is the extent to which
your approach is aligned with the organizational needs identified in the Organizational Profile and other process
items;
your measures, information, and improvement systems are complementary across processes and work units; and
your plans, processes, results, analyses, learning, and actions are harmonized across processes and work units to
support organization-wide goals.
In scoring process items, keep in mind that approach, deployment, learning, and integration are linked. Descriptions of
approach should always indicate the deploymentconsistent with the specific requirements of the item and your
organization. As processes mature, the description should also show cycles of learning (including innovation), as well as
integration with other processes and work units (see Steps toward Mature Processes, page 30).
Results
Results are the outputs and outcomes your organization achieves in meeting the requirements in category 7. The four
factors used to evaluate results are levels, trends, comparisons, and integration (LeTCI). A score for a results item is a
composite based on overall performance, taking into account the four results factors.
Levels are
your current performance on a meaningful measurement scale.
Trends comprise
your rate of performance improvement or continuation of good performance (i.e., the slope of data points over
time) and
the breadth (i.e., the extent of deployment) of your performance results.
Comparisons comprise
your performance relative to that of other, appropriate organizations, such as competitors or organizations similar
to yours, and
your performance relative to benchmarks or industry leaders.
Integration is the extent to which
your results measures (often through segmentation) address important performance requirements relating to
customers, products, markets, processes, and action plans identified in your Organizational Profile and in process
items;
your results include valid indicators of future performance; and
your results are harmonized across processes and work units to support organization-wide goals.
In the scoring of results items, look for data on performance levels, trends, and relevant comparisons for key measures and
indicators of your organizations performance, as well as integration with your organizations key requirements. Results
items should also show data on the breadth of the performance results reported. This is directly related to deployment and
organizational learning; if improvement processes are widely shared and deployed, there should be corresponding results.