4 2017–2018 Criteria for Performance Excellence

4 2017–2018 Criteria for Performance Excellence

Criteria for Performance Excellence Begin    with    the    Organizational    Profile The Organizational Profile is the most appropriate starting point for self-assessment and for writing an application. It is criti- cally important for the following reasons:

• It helps you identify gaps in key information and focus on key performance requirements and results.

• You can use it as an initial self-assessment. If you identify topics for which conflicting, little, or no information is avail- able, use these topics for action planning.

• It sets the context for and allows you to address unique aspects of your organization in your responses to the Criteria requirements in categories 1–7.

P    Organizational    Profile The Organizational Profile is a snapshot of your organization, the key influences on how it operates, and your competitive environment.

P.1 Organizational Description: What are your key organizational characteristics?

a. Organizational Environment

(1) Product Offerings What are your main product offerings (see the note on the next page)? What is the relative importance of each to your success? What mechanisms do you use to deliver your products?

(2) Mission, Vision, and Values What are your stated mission, vision, and values? What are your organization’s core competencies, and what is their relationship to your mission?

(3) Workforce    Profile    What is your workforce profile? What recent changes have you experienced in work- force composition or in your needs with regard to your workforce? What are

• your workforce or employee groups and segments,

• the educational requirements for different employee groups and segments, and

• the key drivers that engage them in achieving your mission and vision?

What are your organized bargaining units (union representation)? What are your organization’s special health and safety requirements?

(4) Assets What are your major facilities, technologies, and equipment?

(5) Regulatory Requirements What is the regulatory environment under which you operate? What are the key applicable occupational health and safety regulations; accreditation, certification, or registration requirements; industry standards; and environmental, financial, and product regulations?

b. Organizational Relationships

(1) Organizational Structure What are your organizational leadership structure and governance system? What are the reporting relationships among your governance board, senior leaders, and parent organization, as appropriate?

(2) custoMers and stakeholders What are your key market segments, customer groups, and stakeholder groups, as appropriate? What are their key requirements and expectations for your products, customer support services, and operations? What are the differences in these requirements and expectations among market seg- ments, customer groups, and stakeholder groups?

(Continued on the next page)

From Baldrige Performance Excellence Program. 2017. 2017–2018 Baldrige Excellence Framework: A Systems Approach to Improving Your Organization's Performance. Gaithersburg, MD: U.S. Department of Commerce, National Institute of Standards and Technology. https://www.nist.gov/baldrige.

Organizational Profile 5

(3) Suppliers and Partners What are your key types of suppliers, partners, and collaborators? What role do they play

• in your work systems, especially in producing and delivering your key products and customer support services; and

• in enhancing your competitiveness?

What are your key mechanisms for two-way communication with suppliers, partners, and collaborators? What role, if any, do these organizations play in contributing and implementing innovations in your organization? What are your key supply-chain requirements?

Terms in small caps are defined in the Glossary of Key Terms (pages 47–54).

Notes P. Your responses to the Organizational Profile questions are very important. They set the context for understanding your organization and how it operates. Your responses to all other questions in the Baldrige Criteria should relate to the organizational context you describe in this profile. Your responses to the Organizational Profile questions thus allow you to tailor your responses to all other questions to your organization’s uniqueness.

P.1a(1). Product offerings and products are the goods and services you offer in the marketplace. Mechanisms for delivering products to your end-use customers might be direct or might be indirect, through dealers, distributors, collaborators, or channel partners. Nonprofit (including gov- ernment) organizations might refer to their product offerings as programs, projects, or services.

P.1a(2). If your organization has a stated purpose as well as a mission, you should include it in your response. Some organizations define a mission and a purpose, and some use the terms interchangeably. In some organizations, purpose refers to the fundamental reason that the organization exists. Its role is to inspire the organization and guide its setting of values.

P.1a(2). Core competencies are your organization’s areas of greatest expertise. They are those strategically important, possibly specialized capabilities that are central to fulfilling your mission or provide an advantage in your marketplace or service environment. Core competencies are frequently challenging for competitors or suppliers and partners to imitate and frequently preserve your competitive advantage.

P.1a(3). Workforce or employee groups and segments (including organized bargaining units) might be based on type of employment or contract-reporting relationship, loca- tion (including telework), tour of duty, work environment, use of certain family-friendly policies, or other factors.

P.1a(3). Organizations that also rely on volunteers and unpaid interns to accomplish their work should include these groups as part of their workforce.

P.1a(5). Industry standards might include industrywide codes of conduct and policy guidance. In the Criteria, indus- try refers to the sector in which you operate. For nonprofit (including government) organizations, this sector might be charitable organizations, professional associations and societies,

religious organizations, or government entities—or a subsector of one of these. Depending on the regions in which you operate, environmental regulations might cover greenhouse gas emissions, carbon regulations and trading, and energy efficiency.

P.1b(1). For some nonprofit (including government) organiza- tions, governance and reporting relationships might include relationships with major funding sources, such as granting agencies, legislatures, or foundations.

P.1b(1). The governance or oversight system for privately held businesses, nonprofit organizations, and government agencies may comprise an advisory board, a family council, or local/regional leaders who are assembled to provide guidance.

P.1b(2). Customers include the users and potential users of your products. For some nonprofit (including government) organizations, customers might include members, taxpayers, citizens, recipients, clients, and beneficiaries, and market seg- ments might be referred to as constituencies.

P.1b(2). For government agencies, the legislature (as a source of funds) may be a key stakeholder.

P.1b(2). Customer groups might be based on common expectations, behaviors, preferences, or profiles. Within a group, there may be customer segments based on differ- ences, commonalities, or both. You might subdivide your market into segments based on product lines or features, distribution channels, business volume, geography, or other defining factors.

P.1b(2). The requirements of your customer groups and market segments might include on-time delivery; low defect levels; safety; security, including cybersecurity; ongoing price reductions; the leveraging of technology; rapid response; after-sales service; and multilingual services. The requirements of your stakeholder groups might include socially responsible behavior and community service. For some nonprofit (including government) organizations, these requirements might also include administrative cost reductions, at-home services, and rapid response to emergencies.

P.1b(2), P.1b(3). Customer, stakeholder, and operational requirements and expectations will drive your organization’s sensitivity to the risk of product, service, support, and

6 2017–2018 Criteria for Performance Excellence

P.2 Organizational Situation: What is your organization’s strategic situation?

a. Competitive Environment

(1) Competitive Position What is your competitive position? What are your relative size and growth in your industry or the markets you serve? How many and what types of competitors do you have?

(2) Competitiveness Changes What key changes, if any, are affecting your competitive situation, including changes that create opportunities for innovation and collaboration, as appropriate?

(3) Comparative Data What key sources of comparative and competitive data are available from within your industry? What key sources of comparative data are available from outside your industry? What limitations, if any, affect your ability to obtain or use these data?

b. Strategic Context

What are your key strategic challenges and advantages in the areas of business, operations, societal responsi- bilities, and workforce?

c. PerforMance Improvement System

What are the key elements of your performance improvement system, including your processes for evaluation and improvement of key organizational projects and processes?

Terms in small caps are defined in the Glossary of Key Terms (pages 47–54).

supply-chain interruptions, including those due to natural disasters and other emergencies.

P.1b(3). Communication mechanisms should use under- standable language, and they might involve in-person contact; email, social media, or other electronic means; or the telephone. For many organizations, these mechanisms

may change as marketplace, customer, or stakeholder requirements change.

For additional guidance on this item, see the Criteria Commentary (https://www.nist.gov/baldrige/baldrige -criteria-commentary).

Notes P.2a. Like for-profit businesses, nonprofit organizations are frequently in a highly competitive environment. Nonprofit organizations must often compete with other organizations and alternative sources of similar services to secure financial and volunteer resources, membership, visibility in appropriate communities, and media attention.

P.2b. Strategic challenges and advantages might relate to technology, products, finances, operations (including data and information security), organizational structure and cul- ture, your parent organization’s capabilities, customers and markets, brand recognition and reputation, your industry, globalization, climate change, your value chain, and people. Strategic advantages might include differentiators such as price leadership, design services, innovation rate, geographic proximity, accessibility, and warranty and product options. For some nonprofit (including government) organizations, differentiators might also include relative influence with decision makers, ratio of administrative costs to programmatic contributions, reputation for program or service delivery, and wait times for service.

P.2b. Throughout the Criteria, “business” refers to a nonprofit (or government) organization’s main mission area or enterprise activity.

P.2c. The Baldrige Scoring System (pages 31–36) uses performance improvement through learning and integration as a dimension in assessing the maturity of organizational approaches and their deployment. This question is intended to set an overall context for your approach to performance improvement. The approach you use should be related to your organization’s needs. Approaches that are compatible with the overarching systems approach provided by the Baldrige framework might include implementing a Lean Enterprise System, applying Six Sigma methodology, using PDCA methodology, using standards from ISO (e.g., the 9000 or 14000 series), using decision science, or employing other improvement tools.

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