The Path to Performance Excellence and Beyond

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1 The Path to Performance Excellence and Beyond Presenta5on to the Kansai Produc5vity Center Educa5on Improvement Study Mission August 19, 2008 at the Monfort College of Business University of Northern Colorado Greeley, Colorado 8/21/08 1 John Latham PhD, CQE Director, Monfort Ins5tute john.latham@unco.edu

2 A Never Ending Journey Every morning in Africa, a gazelle wakes up. It knows it must outrun the fastest lion or it will be KILLED Every morning in Africa, a lion wakes up. It knows it must run faster than the slowest gazelle or it will STARVE It doesn t matter whether you re a lion or a gazelle when the sun comes up, you d better be RUNNING 8/21/08 2 Source: HodgeXs, 1993, p. 116

3 The Baldrige System Organizational Profile: Environment, Relationships, and Challenges Strategic Planning Workforce Focus Leadership Customer and Market Focus Process Management Measurement, Analysis, and Knowledge Management 8/21/08 3 Source: NIST 2008 p. iv

4 The Comprehensive Baldrige Scorecard 7.1 Product and Service Outcomes 7.2 Customer Focused 7.3 Financial and Market 7.5 Organiza5onal Effec5veness 7.4 Human Resource 7.6 Leadership and Social Responsibility Requirements 8/21/08 4 Source: Latham & Vinyard, 2008, p. 43

5 Core Values and Concepts Good Company Great Company Direc5ve Leadership Product/Service Driven Meet Standards or status quo Suppliers and Unions as Adversaries Respond in Time AlloXed Focus on Next Quarter s Employees Follow Procedures Management by Intui5on Compliance with Regula5on Focus on $ bo)om line Exclusively Func5onal Perspec5ve Visionary Leadership Customer Driven Excellence Organiza5onal and Personal Learning Valuing Employees & Partners Agility Focus on the Future Managing for Innova5on Management by Fact Social Responsibility Focus on and Crea5ng Value Systems Perspec5ve Good is the enemy of Great Jim Collins (2001) 8/21/08 5 Source: Latham & Vinyard, 2008, p. 11

6 Path to Performance Excellence Reacting to Problems Systematic Approach Alignment Integration Organiza1onal Learning Key stakeholders initially very excited but ultimately disappointed when you can t execute Boom Bust Curve! Integration Strategic Leadership Alignment Systematic Approach Great services but not meeting the needs of the key stakeholders Reacting to Problems Execu1on Excellence 8/21/08 6 Source: Latham & Vinyard, 2008, p. 35

7 Monfort College of Business R5 Word of Mouth Referral R2 Student Sa5sfac5on (EBI)* Selec5on Rate R7 Pool of Applicants R6 MCB Reputa5on Reinforcing Loop R8 Quality of Incoming Students R1 Student Performance (ETS exam) R4 Stakeholder Sa5sfac5on P1a High Touch P1b Wide Tech P1c Professional Depth P1 Program Design & Delivery Enablers Quality of Student Experience P2 Program Management & Improvement R2 Student Sa5sfac5on (EBI) R3 High Value (ROI) E1 Accountability Redefined E2 Focus E3 Faculty Involvement and Buy in E4 Constancy of Purpose Student Centered Process Framework: P2b Management Control System P2c Performance Review System P2d Strategic Management System P2a MBNQA Self Assessment and Organiza5onal Learning Cost (Tui5on) 8/21/08 7 Source: Alexander, Jares, and Latham, 2007, p. 35

8 and Beyond Redefining Excellence How do you sustain the gains and take the organiza5on to the next level? * Baldrige Score Original journey to performance excellence Compe55ve in a Global Environment with Increasing pressures from a wide variety of stakeholders Sustainable Profits, Environment, and Society * Note: Score is approximate range Time 8/21/08 8 Baldrige Award Source: Latham, 2008

9 References Alexander, J. F., Jares, T. E., and Latham, J. R. (2007). "Performance Excellence in Higher Educa5on: One Business School's Journey." Palme)o Review 10: 12. Collins, J. (2001). Good to Great: Why Some Companies Makes the Leap...and Others Don't. New York, Harper Business. HodgeXs, R. M. (1993). Blueprints for ConQnuous Improvement: Lessons from the Baldrige Winners. New York, American Management Associa5on. Latham, J. R. (2008). "Building Bridges Between Researchers And Prac55oners: A Collabora5ve Approach To Research In Performance Excellence." Quality Management Journal 15(1): 19. Latham, J. R. and Vinyard, J. (2008). Baldrige User's Guide: OrganizaQon Diagnosis, Design, and TransformaQon. Hoboken, NJ, John Wiley and Sons. NIST (2008). Malcolm Baldrige NaQonal Quality Award: Criteria for Performance Excellence. Gaithersburg, Maryland, NIST Na5onal Ins5tute of Standards and Technology. 8/21/08 9