1
CHAPTER 10
The Baldrige Framework for Performance Excellence
Teaching Notes
This chapter introduces the Malcolm Baldrige National Quality Award and Excellence Framework,
which is the basis for Part III of this book. It also discusses other international quality and
performance excellence programs, many of which have their roots in Baldrige.
In addition, the Ch 10 – Supplementary Readings folder contains documents that you might
wish to use in your class:
• Baldrige Application Review and Scoring Process
• The Baldrige Criteria and Deming’s 14 Points
• The Deming Prize
Key learning objectives for this chapter are:
• To understand the history and evolution of the Baldrige Award.
• To know that the award examination is based upon a rigorous set of criteria, called the
Criteria for Performance Excellence, designed to encourage companies to enhance their
competitiveness through an aligned approach to organizational performance management
• To learn about the eleven Core Values and Concepts provide a set of key principles that
characterize a culture of performance excellence.
• To understand the Baldrige Award process and it’s four key evaluation factors: approach,
deployment, learning, and integration.
• To learn that many organizations use the Baldrige Criteria for self-assessment or internal
recognition programs, even if they do not intend to apply for the award. The Baldrige Award
The Baldrige Framework for Performance Excellence 2
important organizational results; ISO focuses on product and service conformity for
guaranteeing equity in the marketplace and concentrates on fixing quality system problems
and product and service nonconformities; and Six Sigma focuses on measuring product
quality and driving process improvement and cost savings throughout the organization.
ANSWERS TO QUALITY IN PRACTICE FEATURES
Leveraging Baldrige at AtlantiCare
1. How might the different categories of the Baldrige Criteria relate to the strategic challenges
that AtlantiCare faced? Specifically, clearly explain how effective approaches to the questions
in the Criteria will help address these challenges.
The nine strategic challenges AtlantiCare identified as keys to organizational success were:
Healthcare delivery
• Engaging physicians in new models of collaboration and partnership.
• Creating sustainable growth outside of the primary service area.
• Identifying and prioritizing healthcare service opportunities for investment and
recruitment.
Health engagement
• Developing new business and care models to support and grow primary care.
• Identifying and improving critical success factors for community health and wellness.
Health information
These can be related to the seven Baldrige criteria of:
• Leadership: This category examines how an organization’s senior leaders’ personal
actions guide and sustain the organization. The key questions are: How do your
senior leaders lead? Also, how do you govern and fulfill your societal
responsibilities? By addressing the Healthcare Delivery issues, listed above, senior
The Baldrige Framework for Performance Excellence 3
leadership plays a vital role in ensuring that the organization continues to succeed
in a changing and demanding environment.
• Strategy: This category examines how an organization develops strategic
objectives and action plans. Key questions are: How do you develop, and how do
you implement your strategy? Critical components of the strategic emphasis at
• Customers: This category examines the question of “How do you obtain information
from your customers?” and a related question: “How do you engage customers to
serve their needs and build relationships?” These questions can be answered through
attention to Health Engagement and Health Information initiatives.
• Measurement, Analysis, and Improvement of Organizational Performance: This
category seeks to answer the questions of: How does the organization measure,
• Workforce: Questions which pertain to this category include: How do you build an
effective and supportive workforce environment? and, How do you engage your
workforce to achieve organizational and personal success? The strategic challenge
related to this is: Recruiting, training, and retaining a highly skilled workforce.
• Operations: This category asks How do you design, manage, and improve your work
systems? Also asked are How do you design, manage, and improve your key work
processes? Key strategic issues of increasing quality of care through clinical
• Results: This category asks questions related to an organization’s performance results
in key business areas – What are your product performance and process effectiveness
outcomes, your customer-focused outcomes, your workforce-focused outcomes, your
The Baldrige Framework for Performance Excellence 4
2. What lessons can other organizations learn from AtlantiCare’s experience?
Through use of the Baldrige categories, AtlantiCare was able to ask the hard questions and better
understand how to define the challenges they faced and what actions might be needed to improve on
these challenges. With insights gained through use of the criteria, they were able to design the
structures necessary for improvement. Their strategic development included shared corporate and
business unit goals, ensuring alignment and clarity of purpose throughout the organization. Training
at all levels ensures competency and establishes a culture of empowerment and engagement.
Branch-Smith Printing Division’s Baldrige Journey
1. Identify what Baldrige Core Values and Concepts are reflected in the strength and
opportunity for improvement comments cited in this case.
Baldrige Core Values and Concepts are reflected in the strength and opportunity for improvement
comments cited in this case. They include:
• Visionary Leadership – Branch-Smith Printing Division collects inputs, either directly or
indirectly, from customers, employees, suppliers, peer groups within the industry, professional
organizations, and benchmark organizations outside of the industry. Senior leaders use that
information to set short-range and longer-range objectives that align with each of its four
major goals.
The Baldrige Framework for Performance Excellence 5
• Valuing people – BSPD values workforce members by involving them in the strategic and
operational planning process. An examiner said: Employee teams create action plans to meet
those (strategic) goals and objectives.
• Focus on success – Branch-Smith appeared to have an early strength in its understanding and
leading in technological areas, but needed to focus on the future in changes in the marketplace.
Development of Branch-Smith Printing Division’s design and delivery processes appears to
focus on the availability of new technology to a greater degree than on changes in the
• Managing for Innovation – Similar to the Focus on the Future, by 2001, the company’s
deployment of innovation approaches was described as: There are no major gaps in
deployment, and a commitment exists to organizational learning and sharing. Improvement
trends and/or good performance are reported for most areas of importance.
• Management by Fact – Early on, a Texas Quality Award examiner said: Branch-Smith Printing
Division uses a fact-based systematic planning process throughout the organization, from
setting its overall organization direction to details such as determining its recognition and
reward system. Also, in 2001, Branch-Smith was praised for: An organization with this scoring
profile typically demonstrates an effective, systematic approach responsive to many of the
Areas to Address and to key organizational needs, with a fact-based evaluation and
improvement process in place in key Areas.
• Delivering Value and Results – Branch-Smith’s focus on results was critiqued as: [The
scoring] range is indicative of organizations that have effective approaches and good results in
most categories, but deployment in some key areas is still too new to demonstrate results.
Further deployment measures and results are needed to demonstrate integration, continuity,
and maturity.
• Systems Perspective – the systems perspective is obvious throughout Branch-Smith’s
operations. For example, Branch-Smith Printing Division has an extensive system for
Examiners also pointed to some weaknesses (opportunities for improvement) such as:
Branch-Smith Printing Division does not provide results information about several areas that
The Baldrige Framework for Performance Excellence 6
seem important to its success. These areas include market share, the level of errors and the
level of errors that reach customers, the effectiveness of its education and training programs,
customer loyalty and referral, results measuring responsibility to the public other than VOC
emissions.
2. What value can you see in David Branch, the CEO, becoming an award examiner?
David Branch, the CEO, became an award examiner. Then, using the Quality Texas feedback as well
as the experience of participating in site visits, David gained considerable insight into how to apply
the Baldrige criteria to his company. Among these insights were the importance of aligned goals and
ANSWERS TO REVIEW QUESTIONS
1. Summarize the purposes of the Baldrige Award.
The purposes of the Malcolm Baldrige Award are to:
• Help stimulate American companies to improve quality and productivity for the pride of
recognition while obtaining a competitive edge through increased profits.
• Recognize the achievements of those companies that improve the quality of their goods and
2. Describe the key issues addressed in each of the seven categories of the Criteria for
Performance Excellence.
The seven categories in the Baldrige Criteria for Performance Excellence and the key issues that are
addressed include:
• Leadership: This category examines how an organization’s senior leaders’ personal
actions guide and sustain the organization. Also examined are an organization’s
governance system and how the organization fulfills its ethical, legal, and societal
responsibilities, and supports its key communities.
The Baldrige Framework for Performance Excellence 7
• Strategy: This category examines how an organization develops strategic objectives and
action plans. Also examined is how the chosen objectives and plans are deployed and
changed if circumstances require, and how progress is measured.
• Workforce: This category examines how an organization engages, manages, and develops its
workforce to utilize its full potential in alignment with the organization’s overall mission,
strategy, and action plans. Also examined is the organization’s ability to assess workforce
capability and capacity needs and to build a workforce environment conducive to high
performance.
3. Explain the logic of the Baldrige Criteria framework and why each element is important in
any organization.
See Figure 10.1. The seven categories form an integrated management system. This structure
emphasizes the systems nature of Baldrige. Integration plays a key role, emphasizing that no single
piece of the system can operate independently. In this fashion, the seven categories represent a
logical approach to planning, executing, and reviewing performance that is reminiscent of the
Deming cycle. Every activity performed in an organization falls somewhere in this framework.
4. List the Baldrige Core Values and Concepts. Why do you think they are important for any
organization to pursue?
• Systems Perspective
The Baldrige Framework for Performance Excellence 8
• Valuing People
• Organizational Learning and Agility
• Focus on Success
• Managing for Innovation
5. What is organizational sustainability? Why is it vital to business success?
Organizational sustainability refers to an organization’s ability to address current business needs, to
have the agility and strategic management to prepare successfully for the future, and to prepare for
6. Describe the Baldrige Award process. How does it ensure that organizations are truly
worthy of receiving the Award?
Organizations that apply for the Award submit a 50-page application responding to the questions in
the criteria. The Baldrige Award evaluation and selection process is rigorous, and designed to be
objective and tamper proof against political pressures. In the first stage, each application is
thoroughly reviewed by approximately 7 examiners chosen from among leading professionals in
business, education, healthcare, and nonprofits (all of whom are volunteers). Examiners evaluate the
applicant’s response to each examination item, listing major “strengths” and “opportunities for
The Baldrige Framework for Performance Excellence 9
harmonized across process and work units to support organization-wide goals.
The examiner team conducts a consensus process in which they discuss variations in
individual scores and comments, and arrive at a consensus for each item. A national Panel of Judges
then selects the applicants that they believe have the potential to be a recipient for site visits. At this
point, an examiner team visits the company for up to a week to verify information contained in the
written application and resolve issues that are unclear. The judges use the site visit reports to
recommend award recipients. Judges do not participate in discussions or vote on applications in
7. Explain the concepts of approach, deployment, learning, and integration in Baldrige
assessment.
Approach refers to the methods used to accomplish the process, the appropriateness of the methods
to the item requirements and the organization’s operating environment, the effectiveness of the use
of the methods, and the degree to which the approach is repeatable and based on reliable data and
information (i.e., systematic). Deployment refers to the extent to which the approach is applied in
addressing item requirements relevant and important to the organization, the approach is applied
8. What are the characteristics that distinguish Baldrige Award recipients from other
organizations?
Organizations that receive the Baldrige Award are highly-regarded role models for others.
Characteristics that distinguish them from other organizations – even those that reach the site visit
stage but are not selected for the Award – are:
• Achievement in Results These organizations achieved significant results across all areas:
product (e.g., health care outcomes) and process, customers, workforce, leadership and
governance, and financials and marketplace. Results were trended over time, and
The Baldrige Framework for Performance Excellence 10
• Agility These organizations are strategic in their decision making and in their ability to adjust
strategy. When conditions change or are anticipated to change, they are ready to adapt, look
for new markets, and adjust to sustain themselves and their stakeholders. Strategic plans do
not sit on their shelves gathering dust, and these plans are developed with processes that
cause and monitor execution. These organization track the execution of their plans with
metrics, and the ability to make change is part of the execution process.
9. Describe some approaches that organizations use to conduct Baldrige self-assessments.
Many organizations use the Baldrige Criteria for self-assessment or internal recognition programs,
even if they do not intend to apply for the award. The benefits of using the criteria for self–
assessment include accelerating improvement efforts, energizing employees, and learning from
feedback—particularly if external examiners are involved.
The approaches used for self-assessment vary. They may include simple questionnaires
developed from the criteria, for which answers are compiled and used as a basis for an improvement
The Baldrige Framework for Performance Excellence 11
through the process.
10. What are some of the impacts that the Baldrige program has provided, both in the United
States and around the world?
An economic evaluation study of the Baldrige program by the U.S. Department of Commerce
released in December 2011 estimated the net social value of the Baldrige Performance Excellence
Program. The study concluded that the benefit-to–cost ratio for the group of surveyed applicants was
820 to 1, supporting the belief that the program creates great value for the U.S. economy. More
importantly, the program changed the way in which many organizations around the world manage
their operations, and helped significantly to bring the principles of TQ and performance excellence
into the daily culture of these organizations. The true benefactors are the customers and other
11. How does Baldrige support Deming’ s 14 Points?
The Baldrige Criteria support Deming’s 14 Points by emphasizing the central importance of
leadership, organization-wide quality management, customer focus and feedback, attention to
employee well-being, satisfaction, and teamwork through a human resource focus, and continuous
improvement of processes. The detailed explanation of the criteria includes the need for management
commitment to quality improvement, and the need for training of all employees in quality and other
techniques in order to attain performance excellence.
12. Explain the differences between the Baldrige framework and the EFQM framework.
In comparing the frameworks of the European Quality Award with the framework of the Baldrige
award, several key differences are apparent. For both the Baldrige and the European Quality Award,
results — including customer satisfaction, people (employee) satisfaction, and impact on society —
are important, but are treated somewhat differently. “Enablers” — the means by which an
organization approaches its business responsibilities, drive results in the European Award. These are
roughly similar to the Baldrige criteria. The “impact on society” results category focuses on the
perceptions of the company by the community at large and the company’s approach to the quality of
The Baldrige Framework for Performance Excellence 12
13. What is the role of national culture in adapting the Baldrige framework to a particular
country?
A study of national cultural differences can help to understand and explain why the Baldrige
framework has been adapted in various ways in various countries. Research has shown that the
Baldrige framework is better suited to some national cultures than to others. Receptiveness to
change differs greatly among cultures, suggesting the need for countries to adapt their quality award
14. What are the similarities and differences among Six Sigma, ISO 9000, and the Baldrige
approaches?
The three approaches are all process-focused, data-based, and management-led, but each offers a
different emphasis in helping organizations improve performance and increase customer satisfaction.
The Baldrige framework focuses on performance excellence for the entire organization in an overall
management framework, identifying and tracking important organizational results; ISO focuses on
15. Why can Baldrige, ISO 9000, and Six Sigma be used together in an organization?
As pointed out in the chapter, many organizations have successfully blended ISO 9000, Six Sigma,
and/or Baldrige in their practices. Honeywell used the analogy of taking a journey to performance
excellence. ISO 9000 is the driver’s license, and provides the discipline and the rules to follow. Six
Sigma is the car: the tool that gets you to your destination. Baldrige is the roadmap. All work
harmoniously together.
The Baldrige Framework for Performance Excellence 13
ANSWERS TO DISCUSSION QUESTIONS
1. In 2012, the House Appropriations Committee of the U.S. Congress targeted dozens of
federal programs for elimination to reduce the federal budget by at least $1.5 billion.
Unfortunately, even though the portion of its budget that came from federal funding was
miniscule (only $9.6 million), the Baldrige program was among them, and Congress approved
the committee’s recommendation. (In 2018, support was reinstated.) Do you believe that
eliminating federal funding for the Baldrige Program was appropriate, given that it was
originally established by an act of Congress? Critics have suggested that the loss of interest by
manufacturing companies and the surge in health care applications has taken the program
away from its roots. Do you agree or not?
Obviously, students may take either side of this debate. Some, who favor eliminating waste in
government may applaud the savings of some $3 million from the federal budget. In this same vein,
others may say the award has not been proven to save U.S. jobs, even if it has saved millions or
billions of dollars for companies who follow the Baldrige precepts. For those who are fans of
Baldrige (and your authors are admittedly and unashamedly in that that camp) Baldrige has proven
2. Obtain a copy of the current Baldrige Criteria. Examine the questions asked in the
Criteria. Select what you believe are the “top 10” most difficult questions for an organization
to answer and justify your reasoning.
Student answers will vary greatly, but based on our experience, some of the “top 10” most difficult
questions typically are:
Category 1 – How do senior leaders create a sustainable organization?
Category 2 – How do you determine your core competencies, strategic challenges, and strategic
advantages? What are your performance projections for both your short- and longer-term
planning time horizons?
Category 3 – How do you market, build, and manage relationships with customers to increase
their engagement with you?
The Baldrige Framework for Performance Excellence 14
Category 4 – How do you ensure that your performance measurement system is able to respond
to rapid or unexpected organizational or external changes?
3. We introduced the Baldrige Core Values and Concepts in this chapter. Look back at
Deming’s 14 Points and System of Profound Knowledge in Chapter 2, and discuss how
Deming’s philosophy is reflected in the Core Values and Concepts.
The Core Values and Concepts include:
• Systems Perspective
• Visionary Leadership
• Customer-Focused Excellence
• Valuing People
Deming’s philosophy, as expressed by the 14 Points and their elaboration in the System of Profound
Knowledge can be seen reflected in the Baldrige Core Values and Concepts.
1. Statement of
Purpose:
Strategy development requires a mission and vision. Commitment to aims
a
n
d
purposes by senior leaders is
specifically
addressed in the Visionary Leadership value and in
enhancing
c
u
s
t
o
m
e
r
focus and
r
e
l
a
t
i
o
n
s
h
i
p
s
.
2. Learn the New Philosophy:
Communication of values, expectations, customer focus, and
The Baldrige Framework for Performance Excellence 15
4. End Price Tag
Decisions:
This is implicitly addressed by a systems perspective
a
n
d
in the
Core Value’s emphasis on overall performance and linkages
among processes and results through
Management by Fact.
5. Improve Constantly
:
Managing for Innovation through organizational and personal learning are
part of the core values. Approaches to evaluation and improvement of key o
r
g
a
n
i
z
a
t
i
o
n
a
l
processes
are an important part of the Baldrige
scoring guidelines.
6. Institute
Training:
Valuing People recognizes the importance of workforce and leader
development, as does Organizational Learning and Agility in meeting performance objectives.
7. Teach and Institute
Leadership:
Visionary Leadership reinforces concept that leadership, is the
principal driver of the management system in the Baldrige framework.
8. Drive Out Fear and
Innovate:
Again, as in Deming’s Point 5, Managing for Innovation, coupled
with Valuing People, Customer Focus, and a Focus on Success support this
p
o
i
nt
.
4. Refer to the example of how K&N Management addressed some of the questions in the
Senior Leadership category of the Baldrige Criteria in this chapter. Explain what practices
address each of the specific questions:
a. How do senior leaders set your organization’s vision and values?
b. How do senior leaders deploy your organization’s vision and values through your leadership
system, to the workforce, to key suppliers and partners, and to customers and other
stakeholders, as appropriate?
c. How do senior leaders’ actions reflect a commitment to the organization’s values?
Referring to the example of how K&N Management addressed some of the questions in the Senior
Leadership category of the Baldrige Criteria in this chapter, the following practices address each of
these specific questions:
The Baldrige Framework for Performance Excellence 16
benchmarking visit to Pal’s Sudden Service in 2002. Their vision reflects the passion for guest
delight while their mission statement defines the role of each team member in achieving that vision.
b. How do senior leaders deploy the organization’s vision and values through the leadership system,
to the workforce, to key suppliers and partners, and to customers and other stakeholders, as
appropriate? The core values were set by senior leaders with input from team members about what
they felt was most fundamentally important about the organization’s culture. Their passion for guest
The mission and vision are printed on all business cards. Guests can easily view our mission, vision,
values, and KBDs posted on the walls of our restaurants, the Mighty Fine website, and demonstrated
through the attitudes of our team members. Organizational values are communicated to our key
suppliers through a key vendor scorecard conducted annually by the executive director. The criteria
5. Discuss how the Baldrige Core Values and Concepts define a high-performance culture.
How
might they be used as a starting point for self-assessment, without actually answering the
formal questions in the Baldrige Criteria?
As indicated in the answer to review question #4, the Core Values and Concepts summarize the
essentials of the Criteria. They help to define a high performance culture by promoting an awareness
of productivity and quality, fostering information exchange, encouraging firms to adopt quality and
6. Create a matrix diagram in which each row is a category of the Baldrige Award criteria
and four columns correspond to a level of organizational maturity with respect to quality: