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The Baldrige Framework for Performance Excellence 20
four dimensions implied in these comments are addressed below.
a. The applicant presents limited evidence of systematic evaluation and refinement of
several key leadership approaches that may support operational excellence and enhance
b. A systematic process is not evident to create and balance value for the applicant’s
customers and stakeholders (regulators, shareholders, and the community). For example,
the applicant does not describe the activities, people, and steps involved in the Leadership
c. Several key leadership approaches do not appear to be fully deployed. For example, it is
unclear how the Mission/Vision/Values (MVV) are deployed to key suppliers and
partners; how development opportunities are deployed to all workforce members; and
d. It is not evident that the applicant deploys its approaches to ethical behavior to
interactions with customers, partners, suppliers, and other stakeholders. For example, the
applicant describes only one approach focused on non-workforce stakeholders, and no
SUGGESTIONS FOR PROJECTS. ETC.
1. This website is an excellent location for information about the Baldrige process, events,
and news items.
The Baldrige Framework for Performance Excellence 21
2. This exercise helps students to identify strengths of applicants, which fit the Baldrige
criteria. To be a “role-model” practice, it should be unique in approach, deployment, and
3. This project allows student to “map” the core values and concepts versus the questions in
each of the six categories of the Baldrige process. The goal is to have students discover
that the Criteria are, indeed, closely integrated with the core values and concepts.
4. This exercise is designed to involve students in assessing specific quality categories and
prepare a Baldrige application by organizations which apply for the Award.
5. Since approximately 45 out of the 50 states do have awards, most students will discover
ANSWERS TO CASE QUESTIONS
I. TriView National Bank: Understanding Key Organizational Factors
Note: The Triview National Bank Case Study (see Baldrige Materials folder on the
Premium website for complete case) was prepared for use in the 2011 Malcolm Baldrige
National Quality Award Examiner Preparation Course. It used the 2011-12 Baldrige
criteria, which may have some key differences in the criteria questions as compared to
later versions of the criteria, however these differences are not relevant for this case.
Students are asked to:
Read the Organizational Profile, which is a description of the organizational
environment, relationships, and challenges that impact the company’s performance
excellence approaches. In examining the scope of the first six categories (excluding
The Baldrige Framework for Performance Excellence 22
Item 1.2, and one would expect to see that their response to the questions in this item
would address this issue. Similarly, in Figure P.1-1, TNB states that one of their core
competencies is Operational Excellence: demonstrating process and performance
discipline. If so, one would expect to see strong practices in Category 6, Operations
Focus.
Category 1.1 Senior Leadership:
1. Mission – to provide customers with financial services and promote the growth
and economic well- being of all the communities we serve.
Vision – To be recognized as the number one community bank in Legendary Service.
Values – Integrity: keeping our word and dealing honestly and transparently with all
stakeholders to build trust; Customer-driven focus: providing Legendary Service;
Management for results: relying on data and holding people accountable; Operational
excellence: performing every process effectively and efficiently; Innovation: constantly
striving to improve and implement the best ideas from anywhere
4. Stakeholder Requirements and Expectations: Regulators: proactive compliance
with regulations, responsiveness to requests for information, timely and full access to
information, appropriate risk assessment and mitigation. Shareholders: accurate
The Baldrige Framework for Performance Excellence 23
community banks), integrating the operations and workforce of Widmark into the
applicant’s mortgage division, maintaining effective cost controls, meeting the need for
more technical capacity and capability as online banking grows, meeting the need for
Category 2.1 Strategic Planning:
1. Mission – to provide customers with financial services and promote the growth
and economic well- being of all the communities we serve. Vision – To be
recognized as the number one community bank in Legendary Service. Values –
Integrity: keeping our word and dealing honestly and transparently with all
2. Core competencies include “Legendary Service”: understanding and exceeding
customer expectations; “Operational Excellence”: demonstrating process and
performance discipline; and “Agility”: making and implementing decisions quickly. The
applicant is developing a core competency in mergers and acquisitions.
4. Strategic Challenges: Addressing the many changes in banking regulations and more
regulations coming in the future, meeting earnings targets while serving increasing
numbers of customers using low-margin services, addressing the loss of public confidence
The Baldrige Framework for Performance Excellence 24
5. Strategic Advantages: Taking advantage of low-cost TARP funds (5%) through 2013,
hometown bank with reputation for stability and integrity, resulting in increasing market
Category 3.1 Customer Focus:
1. The applicant’s main products are consumer, small business and commercial
financial which are delivered through a branch network, a phone center, and an online
system with customer access 24 hours day/7 days week/365 days per year (24/7/365).
2. Mission – to provide customers with financial services and promote the growth
and economic well- being of all the communities we serve. Vision – To be
3. Core competencies include “Legendary Service”: understanding and exceeding
customer expectations; “Operational Excellence”: demonstrating process and
performance discipline; and “Agility”: making and implementing decisions quickly. The
applicant is developing a core competency in mergers and acquisitions.
5. Customer segments and requirements: Consumer (C), Small Business (SB),
Commercial (CM): security of deposits and information (C, SB), convenience to access
Category 4.1 Measurement, Analysis, and Knowledge Management:
1. Management for results: relying on data and holding people accountable;
2. Operations Center houses several banking systems that run in the data center (e.g.
TriView Management Information System provides customer, account, financial
The Baldrige Framework for Performance Excellence 25
3. Key changes include increased focus on customer satisfaction and loyalty; customers
who are willing to trade off higher interest rates for security, peace of mind, and their
confidence in local bankers; increased consumer deposits which are at an all-time high;
and an increasingly regulated environment which could limit opportunities for innovation
in products.
4. Comparative data sources include: Community Alliance of Bankers (CAB) - ROI;
Bankers Alliance of America – asset classifications; Junovia Index – efficiency indices;
Baldrige Award recipients – service benchmarks; Blooming & Flowers Solutions – IT
Category 5. Workforce Focus:
1. Applicant has 1,080 associates. 682 CSRs, Administrative 158 Staff, 157 Professional
3. No organized bargaining units.
4. Workforce engagement factors: Environment of empowerment (all), Opportunity for
career progression/promotion/career path (all), Desire to serve customers (CSRs),
Opportunity to contribute to TNB/local community/state/profession (professional and
management staff).
5. Workforce satisfaction factors: job security, resources and skills to succeed;
Competitive compensation and benefits; Ability to work on teams (CSRs, Admin);
Physical safety and security (CSRs); Schedule flexibility (CSRs, Admin, Professional);
Ability to invest in career; Challenging and rewarding work (Professional, Management).
The Baldrige Framework for Performance Excellence 26
Category 6.1 Process Management:
1. Services include Demand Deposit Accounts, debit cards, money market accounts,
certificates of deposits, IRAs, securities services, financial planning services,
2. Core competencies include “Legendary Service”: understanding and exceeding
customer expectations; “Operational Excellence”: demonstrating process and
performance discipline; and “Agility”: making and implementing decisions quickly. The
applicant is developing a core competency in mergers and acquisitions.
5. Stakeholder Requirements and Expectations: Regulators: proactive compliance
with regulations, responsiveness to requests for information, timely and full access to
information, appropriate risk assessment and mitigation. Shareholders: accurate
financial records, transparency and objective decision making, appropriate risk
II. TriView National Bank – Assessing Customer Focus
Note: The Triview National Bank Case Study (see Baldrige Materials folder on the
Premium website for complete case) was prepared for use in the 2011 Malcolm Baldrige
National Quality Award Examiner Preparation Course. It used the 2011-12 Baldrige
criteria, which may have some key differences in the criteria questions as compared to
later versions of the criteria, however these differences are not relevant for this case.
The Baldrige Framework for Performance Excellence 27
Students are asked to: In a typical Baldrige assessment, examiners identify strengths and
opportunities for improvement based on an applicant’s response to the Criteria questions.
Category 3.1
Strengths
++
Strength
Item Ref.
The applicant demonstrates its customer-driven focus through its multiple listening and learning
mechanisms to engage and obtain actionable information from all of its customer groups (Figure
3.1-1). Data are entered into Service Advantage (which integrates with the SMARTER system);
analyzed; deployed to appropriate staff members; and used to study customer behavior, anticipate
customer needs, and build multiproduct relationships. The Customer Outreach Program and Drill
Down Research follow up with customers.
a(1)
Opportunities for Improvement
--
Opportunity for Improvement
Item Ref.
X
It is unclear how listening/learning approaches and methods for determining satisfaction and
engagement vary at different stages in the Customer Life Cycle Matrix (Figure 3.2-4), which also are
identified as customer segments, and Customer Engagement Cycle (Figure 3.2-5). Also, the use of
social media for younger customers may provide opportunities to gather actionable information from
students and young professionals.
a(1),
b(1)
The Baldrige Framework for Performance Excellence 28
It is unclear that the organization’s efforts to listen to departing and former customers yield
actionable information. For example, a systematic process is not evident for using the
Category 3.2
Strengths
++
Strength
Item Ref.
Supporting the overarching strategy to provide Legendary Service while increasing the number of
products per household, the Customer Life Cycle Matrix (Figure 3.2-4) helps associates manage
customer relationships and build multiproduct relationships with customers based on their life stages
and dependent status. Strategies segmented by stage (Figure 3.2-5) help retain customers, meet their
requirements, and exceed their expectations.
b(1)
Through its systematic VOC Process (Figure 3.2-1), the applicant enhances its efforts to develop loyal
customers for life. The applicant uses customer, competitor, and industry data to identify
Opportunities for Improvement
The Baldrige Framework for Performance Excellence 29
--
Opportunity for Improvement
Item Ref.
A systematic approach is not evident for using information such as the opportunities highlighted in
the Customer Life Cycle Matrix (Figure 3.2-4) and Customer Engagement Cycle (Figure 3.2-5) to
anticipate customer groups and market segments. Without a systematic process in this area, the
applicant may miss opportunities to identify and pursue the most promising customers and markets
for its products.
a(3)
III. TriView National Bank – Assessing Workforce Focus
Note: The Triview National Bank Case Study (see Baldrige Materials folder on the Premium
website for complete case) was prepared for use in the 2011 Malcolm Baldrige National Quality
Award Examiner Preparation Course. It used the 2011-12 Baldrige criteria, which may have
some key differences in the criteria questions as compared to later versions of the criteria,
however these differences are not relevant for this case.
Students are asked to: In a typical Baldrige assessment, examiners identify strengths and
opportunities for improvement based on an applicant’s response to the Criteria questions. Read
The Baldrige Framework for Performance Excellence 30
Category 5.1
Strengths
++
Strength
Item Ref.
A proactive approach helps the applicant increase capability and flexibility without increasing
staffing levels. The applicant formalizes workforce planning through the ACCPP (Figure
5.1-1), aligned with the SPP. The Legendary Workforce Database provides information for
departmental planning and facilitates management of current and emerging capability and
capacity needs. The organization avoids workforce reduction by controlling costs and
backfilling positions selectively for specific skills.
a(1),(4)
Collectively, the applicant’s systematic workforce climate approaches create an environment
Opportunities for Improvement
--
Opportunity for Improvement
Item Ref.
It is not clear how the applicant’s plan to manage workforce change addresses periods of
workforce growth, as all efforts appear to be focused on maintaining current capability and
capacity. Considering the recent Widmark acquisition and the emerging core competency of
mergers and acquisitions, planning to address possible workforce growth may be of particular
significance
a(4)
It is not clear how the Hiring the Best program or other approaches are systematically used to
retain the workforce or to ensure diversity when hiring (e.g., the organization currently hires
a(2)
Category 5.2
Strengths
The Baldrige Framework for Performance Excellence 31
++
Strength
Item Ref.
By providing structured reward and recognition, the applicant encourages high performance, associate
retention, and agility in a competitive and growing marketplace. The PMDP is integrated with the SPP
and cascaded to all associates to coincide with individual performance reviews. The TriView
Excellent Associate Recognition (TEAR) program (Figure
5.2-1), which is refined through the annual associate engagement survey, includes rewards for innovation
and for community service.
a(3)
The applicant’s approach to determining workforce engagement and satisfaction supports its strategic
The applicant provides career progression opportunities for its leaders through the Legendary
Leader Development Program (LLDP), which includes cross-training of leaders and addresses
Opportunities for Improvement
--
Opportunity for Improvement
Item Ref.
There is limited evidence of a systematic process or cycles of improvement to ensure that the
organization benefits from the diverse ideas, cultures, and thinking of the workforce. For example, it is
not clear how mechanisms such as Diversity Month are systematically used and evaluated. A systematic
approach in these areas may enhance the organizational culture and support implementing the best ideas
from anywhere, part of the value of innovation.
a(2)
It is unclear that workforce engagement assessment findings, such as results from a 2011 associate
The Baldrige Framework for Performance Excellence 32
Some elements of the applicant’s approach to workforce and leader development are in early stages of
deployment. These include organizational performance improvement and innovation, transfer of
Instructor Reserve Materials
Quality in Practice
Building Business Excellence in Hungary
Latent needs are one of the challenging issues that Westel, and other telecommunications
companies, in general, must address. Customers and other stakeholders are often not aware of
their needs and the possibilities for use of technology because the technology changes so rapidly.
In order to manage this, Westel needs (and has developed) a systematic process for determining
shareholder needs, customer needs, and employee and partner needs. This requires use of
sophisticated customer/stakeholder surveys; help lines; and tracking, information management,
and data mining systems.
It is doubtful if the results for these Hungarian firms could have been realized without using self-
Six Sigma Integration at Samsung
Samsung Electronics Co. (SEC) was refocusing its strategy on developing internal resources,
especially its people, as well as putting innovation first in its development and design of products
and services. The difficulties that may have been encountered included: leadership support for a
The Baldrige Framework for Performance Excellence 33
workforce. SEC had used a number of quality tools and techniques for process and product
improvement, so the quality emphasis was already a part of the corporate culture. Six Sigma was
added to upgrade these techniques and improve SEC's competitive position in world markets.
SEC obvious had a number of opportunities for Six Sigma projects within its supply chain. These
could include: “design for Six Sigma” in product development, improving procurement
Cases
I. TecSmart Electronics
1. TecSmart Electronics’ strengths (abbreviated) may be numbered for identification, as follows:
Senior leaders set company objectives and guide cross-functional teams to review and develop
individual plans.
Senior leaders participate in quarterly communication meetings with all employees to discuss
company issues and answer questions.
Senior leaders teach courses in TecSmart University; meet with customers, suppliers, and
benchmarking partners; and are actively engaged in professional and community organizations.
The company collects operational data in every department and evaluates its information.
All employees receive customer relationship training.
All complaints are handled by the Vice President of Sales and resolved within 2 days.
Customer satisfaction data is acquired from sales representatives, etc. and these data are
reviewed and compared by the executive team during the strategic planning process.
TecSmart uses self-managed work groups where employees make most day-to-day decisions
The Baldrige Framework for Performance Excellence 34
New product introduction teams work with design engineers and customers to ensure that design
requirements are met and SPC is used to monitor variation, provide a basis for corrective action,
and optimize processes.
When related to Deming’s new version of his 14 points we can see:
1. Create a Statement of Purpose. TecSmart has a focus on quality, service, and value. This is
also reinforced by #1 and #2. By making plans (#1), and cascading them down the organization,
the leadership team can focus on the three key values. By holding quarterly communication
meetings (#2), senior leaders can reinforce their statement of purpose.
2. Learn the New Philosophy. A dedication to learning is shown in #3, #7, and #13. The best way
to learn is to teach something, as the executives do in #3. They are also learning as they gather
inputs for the strategic planning process in #7. Finally, in #13, provision is made not only for
training, but learning through the quality/service-related training sessions.
3. Understand Inspection. Inspection is not explicitly addresses, but items 4, 5, 6, and 8, among
others, show that decisions based on facts, which can involve inspection, are routinely made.
4. End Price Tag Decisions. The basis on which decisions are made for purchasing parts and
services is not discussed. However, item #18 states that suppliers are involved in early stages of a
product development program. That implies that there is a close working relationship between
the company and suppliers, and that cost concerns are discussed and worked out to minimize
quality issues.
5. Improve Constantly. A process is in place to train employees in a 5-step problem solving
process (#6), and new processes are documented and variation in ongoing processes is monitored
for corrective action (#16).
6. Institute Training. As stated earlier, training and learning seem to be built into the “fabric” of
the company, such that executives teaching courses at TecSmart University (#3). Customer
relationship training is also required for all employees (#9). Also, in #13, provision is made for
72 hours of training on service/quality topics, and sales, engineers, office staff, and managers
must all be trained.
The Baldrige Framework for Performance Excellence 35
11. Eliminate Quotas and MBO; Institute Improvement; and Understand Processes. Again, no
mention is made of quotas or MBO. Understanding of the need for improvement, and to know
the characteristics of processes abounds.
12. Remove Barriers. #12 states that “Hourly workers can make process changes with the
2. TecSmart Electronics’ strengths (abbreviated – see above) can also be classified according to the
Baldrige criteria, as follows.
The seven categories in the Baldrige Criteria for Performance Management include:
1. Leadership. Items 1, 2, 3, and 7.
2. Strategic Planning. Items 1 and 7.
3. Customer and Market Focus. Items 8, 9, 10, 11, 15, and 17.
4. Measurement, Analysis, and Knowledge Management. Items 4, 5, 7, 8, 11, 16,
and 17.
5. Human Resource Focus. Items 1, 6, 9, 12, and 14.
6. Process Management. Items 4, 8, 16, and 18.
7. Business Results. Items 2, 3, 4, 7 and 17.
3. It’s difficult to find “obvious” opportunities for improvement because TecSmart Electronics
II. Catalan Bar and Grille
1. How do these practices fit into the Baldrige criteria?
2. In what categories and items?
The Baldrige Framework for Performance Excellence 36
Note that some items appear more than once since they may relate to two or three categories. The
seven categories in the Baldrige Criteria for Performance Management and Josh’s ideas relating
to each of them include:
Leadership.
Customer and Market Focus.
Use an Enterprise Resource Planning system to manage information, along with a Customer
Relationship Management module to process customer intelligence. This system will help to
generate accurate forecasts of demand and manage the supply chain.
Give a small discount for customers who complete a comment card on selected days.
Customize service a much as possible to develop customer loyalty.
Measurement, Analysis, and Knowledge Management.
Use an Enterprise Resource Planning system to manage information, along with a Customer
Relationship Management module to process customer intelligence. This system will help to
generate accurate forecasts of demand and manage the supply chain.
Learn about industry best practices for supply chain management and work with suppliers to
Human Resource Focus.
Compensate performance based on teamwork.
Give employees who leave for school and find a replacement a bonus.
The Baldrige Framework for Performance Excellence 37
Train and empower the staff.
Process Management.
Have weekly shift meetings to relay information about current issues and generate ideas for
process improvements. Review this information at monthly management meetings and quarterly
planning sessions.
Make teams the central focus of all jobs and allow all staff to process customer requests; for
example, a busser can order an additional beverage without first getting a server to process the
transaction.
Develop efficient methods for disposal of grease and recyclable goods.
Learn about industry best practices for supply chain management and work with suppliers to
3. What aspects of the Baldrige criteria are lacking?
The three areas that may initially need more work are leadership, strategic planning, and business
results. Josh needs some leadership assistance in the form of a board of directors that should
include people with expertise in as many of the criteria as possible. They can give him good
4. What other things should he consider doing?
He should consider developing a focus group of customers so that he can test out reactions to
new recipes. He might also develop a system to benchmark competitors, as well as join his local
5. Students should be encouraged to visit their local restaurant association for more information.
This will serve the dual purpose of raising their awareness that such trade organizations exist and
The Baldrige Framework for Performance Excellence 38
