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Baldrige Business - Nonprofit Criteria for Performance Excellence 2011-2012 

04-16-2020 12:58


Changes from The 2009–2010 Criteria

The Criteria for Performance Excellence have evolved significantly over time to help organizations address a dynamic environment, focus on strategy-driven performance, and address concerns about customer and workforce engagement, governance and ethics, societal responsibilities, and long-term organizational sustainability. The Criteria have continually progressed toward a comprehensive, integrated systems perspective of organizational performance management.

The year-to-year changes to the Baldrige Criteria have been evolutionary. However, since the Baldrige Program’s inception over 20 years ago, the changes to the Criteria have been revolutionary. They have evolved from having a specific focus on manufacturing quality to having a comprehensive strategic focus on overall organizational performance, competitiveness, and sustainability. With each update of the Criteria, the Baldrige Program must balance two important stakeholder considerations. On one hand, there is a need for the Criteria to be at the leading edge of validated management practice to help users address the increasingly complex challenges they face; on the other hand, there is a desire for the Criteria to remain stable in order to provide users with a basis for continuity in their performance assessments. Starting in 2009, the Baldrige Program moved to a formal two-year revision cycle for the Criteria. Since that two-year cycle continues to meet the dual demands on the Criteria stated above, we have decided to retain that approach, making these the 2011–2012 Criteria for Performance Excellence.

The most significant revisions to the Criteria this year address two areas of importance: (1) dealing with complexity in enterprise leadership and management, and (2) customer engagement.

Complexity is a fact of organizational life. To succeed in today’s global, competitive, uncertain environment, organizations must accept complexity. The Baldrige Criteria are complex because achieving organizational sustainability in a global economy is complex. However, the Criteria provide a holistic frame of reference. While the Criteria require complex thinking, they also provide the path to clear identification of an organization’s relevant issues and strategic advantages, followed by identification of key data, and then analyses for decision making. Handling complexity requires agility and the ability to execute with a sufficient degree of simplicity. One of the key foci for the current revisions is to help your organization achieve that simplicity in execution. Each group of questions (the numbered paragraphs in each item) now has a subhead that summarizes the content. With the outline formed by the category and item titles, titles for the areas to address, and these subheads, Criteria users now have a simple guide to performance excellence. All the significant aspects of a performance management system are covered in this outline, and the individual questions provide added guidance and details when you need those. We also have strengthened the line of sight from strategic challenges and advantages to core competencies, to strategy, and then to work systems and work processes. This clear set of linkages should move an organization from the strategic environment in which it functions to the execution of its operations in a logical sequence. While each of these concepts is complex, the line of sight should simplify the execution. Strategy development in our global marketplace will increasingly require some degree of intelligent risk taking, which is introduced as a new consideration in 2011 to place all important considerations in the Criteria user’s purview.

The concept of customer engagement has continued to receive increasing attention as organizations compete in the global marketplace and in competitive local markets. We have reorganized the flow of logic in the customer focus category to address this concept better. The responsibility for establishing an organizational culture that fosters customer engagement for mutual success and customer loyalty begins with the senior leadership and is a part of creating a sustainable organization. We have placed the responsibility for a customer-focused culture in the senior leadership item. Listening and learning from and about the customer has taken on new dimensions with the advent of wide-scale use of social media. This concept has been added to questions on how your organization listens to customers.

The most significant changes in the Criteria items and the Criteria booklet are summarized as follows:

■ The number of areas to address has been reduced from 41 to 40, and the number of Criteria items has been reduced from 18 to 17, plus 2 in the Preface: Organizational Profile section.
■ The question that appeared in numerous items about keeping systems current with changing business needs and directions has been removed from the Criteria. This topic should be covered in strategic planning and also is a sign of organizational maturity, which is reflected in the scoring guidelines as a function of learning and integration.

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