PLUS. Leading an Organization Using The Baldrige Criteria 1. What was my epiphany? Leading an Organization Using The Baldrige Criteria

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1 Leading an Organization Using The Baldrige Criteria E. David Spong Leading an Organization Using The Baldrige Criteria 1. What was my epiphany? 2. How did I get it started 3. Most effective things I learned. Baldrige Program Update 1 2 My Epiphany Observations 1998 Malcolm Baldrige Award Ceremony Baldrige winning organizations have great cultures: Collaborative Integrated Aligned Sharing Trusting Caring There are no Silver Bullets 3 I Did All the Usual Stuff! Met with each member of the Leadership Team Met with the Customers Held meetings with the People Tried to understand the Business PLUS Launched Continuous Improvement! 5 Initiatives Deployment Business Excellence Office Sites AS Businesses Business Excellence Debbie Collard Business Excellence Organization Reporting to the Office of the President Functions 6 1

2 Number Plus! Personal Commitment Knowledgeable Staffed BE Office with: Believers Experts Consultants Lot s of personal time Dealt with non-believers Consistent & Persistent with Passion OPERATING PRINCIPLES We insist on integrity, first and foremost We tell it like it is We communicate openly and candidly in all our dealings We respect, honor, and trust one another We work toward consensus Disagreement is healthy and encouraged, but once a decision is made, we proactively support it We have one conversation at a time Our silence is consent We focus on issues and ideas rather than titles or personalities We actively listen and question to understand We do not attack the messenger We identify clear objectives and expectations for our meetings We start on time, observe time limits, and end on time We praise in public, we coach in private We have a bias for velocity Have Fun... Enjoy the journey and each other 7 8 Convert Direct Reports Conversion to Zealots Spong 100 SLT Percent Sign on (10) We re From Missouri +5.8 Zealots (10) (commitment) Bus & Site LT s 0 Show Me (compliant) (5) All the way to the people who do real work! 20 0 Let s use our future leaders! Bye Bye!(0) OMDB (0) Day 1 The Journey Day N 9 10 How best to achieve conversion to Zealots Zealot Distribution 10 2x s? Leadership Passion? Start the Journey? Have a Plan? Get Trained? Quest for Excellence? Positive Results? Go for an award Mean =5.8 3 Yes to all of the above, except no 2x s and especially go for an award to get Feedback Rating

3 Baldrige Principles Personal Quality Journey Executive Champion Requirements Spong is here today! (/02) Spong was here in , Zealot/Proselytize Learn & understand the criteria for your assigned element Identify needed improvements 5, Believer/Influence Work with Business Excellence Office to drive improvements Communicate throughout the organization Champion world-class approaches & lead by example 0, Non-Believer/Resist Time Make a personal commitment to the Leadership Team for the improvement of your element Where Are You? 13 1 Matrix A - Approach Matrix B - Deployment AEROSPACE SUPPORT BUSINESS MODEL APPROACH RESPONSIBILITY MATRIX AEROSPACE SUPPORT BUSINESS MODEL DEPLOYMENT RESPONSIBILITY MATRIX Major AS Site Site Leader Site BE Focal Point Model Category Element Exec Champ Category Item LT Item Champion Element Focal Wichita Tom Stringer DeAnn White Org Profile Debbie Collard - Jim Walden St. Louis Jeff Deckelbaum Doug Engemann 1.1 Org Leadership Debbie Collard Jim Walden Category 1 David Spong 1.2 Social Resp. Paul Guse Leslie York 2.1 Strat Development Tony Robertson Fred Mickel Category 2 Tony Robertson 2.2 Strat Deployment Jim Brunke Fred Mickel 3.1 Cust/Market Knowledge Tom Bell Tom Conard Category 3 Ben Park 3.2 Cust Rel & Satisfaction Norma Clayton Jason Beckmann San Antonio BAL So Cal Philadelphia Dennis Stuart David Gray Gus Urzua John Gilbride Sharon Pedersen Michael Whipps Vince Marizzaldi Frank D'Agosta.1 Measurement & Analysis Jeff Deckelbaum Bud Schlichting Category Jay Kappmeier.2 Info & Know Mgmt Raj Kanungo Mike Lafser Oklahoma City Larry Kennedy Bob Byrne/Henry Gilson Category 5 Ken Mraz 5.1 Work Systems Lissa Hollenbeck Larry Simonds 5.2 Emp Lrng & Motivation Keith Hertzenberg Greg Lemaster Fort Walton Beach Bill Grant Danny Jones 5.3 Well-being & Satisfaction Mark Sullivan Kay Moorefield Mesa Dan Anglim Fred Lantigua 6.1 Value Creation Processes Tom Stringer/Tom Peterson Susan Gregory Category 6 Jeff Deckelbaum 6.2 Support Processes Steve Blake Susan Gregory June June EMPLOYEE INVOLVEMENT (EI) Matrix C Results Tracking AEROSPACE SUPPORT BUSINESS MODEL RESULTS RESPONSIBILITY MATRIX Category Executive Element Model Element Category Item LT Item Champion Champion Focal 7.1 Cust Focused Results Ben Park Jason Beckmann 7.2 Prod/Svc Results Bill Grant Vic Finazzo 7.3 Fin/Mkt Results Steve Blake Kathy Phillips Category 7 - Business Results Jay Kappmeier/ Jeff Deckelbaum 7. HR Results Ken Mraz Gregg LeMaster 7.5 Org Eff Results Terry Prickett Bud Schlichting 7.6 Gov & Social Resp Results Paul Guse Leslie York Is it a Culture? Is it a Belief? Is it a Way of Life? Is it Teams? Is it Belonging? Is it a Process? "It is not a new program, project or process. EI is a cultural change in the way we treat each other and work together. It is a journey in which people apply their skills to improve individual, team and organizational performance continuously. This leads to employee satisfaction and improved business results. Raj Kanungo June

4 Focused Offsites Focused Survey Not a Business Performance Review Business Model Internal Assessment Gaps Process to close gaps Progress IDS 58 Questions 1 Narrative question Results to only the Business, Function, Department? Level Results not actionable Aerospace Support 58 Questions 3 Narrative questions + 28 Focused questions Results to the Business, Program, Function, Site, to the manager level with 5 or more D/R Results actionable Summary for 17 key issues Exec summaries for each Bus, Site, & Function Observations 1 Observations Check List for Leading an Organization using the Baldrige Criteria Have a Debbie Support her/cherish her visibly (has no formal authority) Establish a BE team Support them visibly (have no formal authority) Hire a consultant Establish a set of Operating Principles and live by them Convert your direct reports Hold accountable Executive champs Improve-the-business Offsites Deal with non believers Some will/must go bye-bye 23 Check List for Leading an Organization using the Baldrige Criteria Champion Employee Involvement Always visibly walk-the-talk Messages Support Ask questions Focus on quality Conduct annual survey Employee Satisfaction Leadership Effectiveness 2

5 Summary Summary 25 CC ppt Don t study it long Don t change it! Just Do it! 26 Recent History Baldrige Foundation In 2012 the Approx. $10M of annual funding from the USG was eliminated A group was formed called the Baldrige Enterprise to work collaboratively to save the Baldrige Program The Baldrige Enterprise has members from the Baldrige Program, the Alliance of State Programs, the American Society for Quality & the Baldrige Foundation Committed endowment funds to support program Committed to a major fundraising campaign Hired a Major Gifts Director and an Associate Director, Research & Prospect Management Engaged in fundraising efforts Expanding and transforming its Board Working closely with Missouri program to support goals of the Potterfield gift challenge re: Missouri School Districts Baldrige Program Developed new business model and business plan Eliminated, re-scoped, or leaned out every major process Restructured operations and reduced staff by more than 0% Reduced operating costs by nearly 50% Developed and implemented new revenue streams: Executive Fellows, Collaborative Assessments, Examiner Training Experience Criteria sales, Sponsorships Modified award eligibility rules to require Top Level state award before applying to Baldrige Continue to provide materials to Alliance programs in support of their award programs free of charge: Criteria, Training materials, Case studies, BOSS examiner software program Alliance Encourage top level recipients to apply for Baldrige Award Agreed to standard process requirements for top level awards Partner with BPEP to pilot a distributed Baldrige Examiner Training model Partner with BPEP to develop and pilot revised examiner training curriculum to be used by and available to all

6 American Society for Quality Proactively helped identify cost saving opportunities in their contract with BPEP Participate along with BPEP and Alliance members in working groups focused on: Marketing, Communications, Tiered award best practice sharing, Regional examiner training, and Examiner training curriculum redesign 31 6