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Baldrige Business - Nonprofit Criteria for Performance Excellence 2017-2018
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04-16-2020 14:08
Anonymous User
Changes from the 2015–2016 Baldrige Excellence Framework
Revisions have one overarching purpose: for the framework and the Criteria to reflect the leading edge of validated leadership and performance practice.
As the drivers of competitiveness and long-term success have evolved, so, too, have the Baldrige Excellence Framework and the Criteria for Performance Excellence. The Criteria for Performance Excellence initially helped the nation address the quality crisis of the 1980's by enabling and encouraging businesses to adopt a robust, leadership-driven, customer-focused quality management system. Through significant and intentional evolution, today the Baldrige Excellence Framework offers organizations of all kinds a non-prescriptive leadership and management guide that facilitates a systems approach to achieving organization-wide excellence.
As the Baldrige framework and the Criteria evolve, they must balance two important considerations. On the one hand, the Criteria need to reflect a national standard for performance excellence, educating organizations in all aspects of establishing an integrated performance management system. On the other hand, the Criteria need to be accessible and user-friendly for a variety of organizations at varying levels of maturity.
To strike this balance, changes to the 2017–2018 Baldrige Excellence Framework focus on strengthening two areas of growing importance to organizations’ long-term success and on making the Criteria more logical from the users’ perspective. The two areas that have been strengthened are cybersecurity and enterprise risk management (ERM). To address the consideration of making the Criteria more accessible and logical from the users’ perspective, several Criteria items have been simplified, and some requirements have been moved, removed, or the wording changed to aid understanding. Also, in 2015, the Baldrige Program for the first time published an abridged version of the Baldrige framework, the Baldrige Excellence Builder, consisting of the most important questions for organizations seeking to improve their performance. A new Baldrige Excellence Builder based on the 2017–2018 Baldrige Excellence Framework will be published in early 2017.
Cybersecurity.
There were an estimated 300 million cyberattacks in 2015—only 90 million of which were detected—and such attacks are increasing at an annual rate of approximately 40 percent. For businesses and organizations of all kinds, managing and reducing cyber risks to data, information, and systems have become a necessity. While the Criteria have addressed the security of information systems and the confidentiality of information since 2001, Criteria requirements and notes now reflect the growing importance of protecting against the loss of sensitive information about employees, customers, and organizations; protecting intellectual property; and protecting against the financial, legal, and reputational aspects of breaches.
Enterprise risk management.
No organization is risk free. Intelligent risk management requires an enterprise to decide when and how risks should be taken and managed. Such management can mean the difference between extinction, survival, or role-model performance. Through a systems perspective of organizational performance management, the Baldrige framework has long addressed ERM, defined by ISO 31000: Risk Management—Principles and Guidelines as an organization’s coordinated activities to direct and control the effect of uncertainty on achieving its objectives. The future competitive advantage that will flow from good ERM is based on the holistic addressing of risk and the actions taken—including the pursuit of intelligent risks—as part of an overall strategic approach to managing organizational performance. In this revision, some Criteria requirements and notes have been revised to highlight (1) that risk is inherent in everything organizations do and (2) that the challenge is to balance the level of risk taken with the sustainability of the organization and the opportunity for innovation.
The most significant changes to the Criteria items and related sections are summarized as follows.
Category 1: Leadership
Item 1.1, Senior Leadership, now presents leaders’ actions to guide and sustain the organization in three areas to address: vision and values, communication, and mission and organizational performance. This change addresses Criteria users’ questions about the logical relationship of leaders’ actions.
Category 2: Strategy
In item 2.1, Strategy Development, questions about strategy considerations now emphasize these considerations as elements of managing strategic risk in your organization. Questions on work systems are now organized to emphasize the fundamental decisions that lead to decisions on work processes and effective work systems.
Category 4: Measurement, Analysis, and Knowledge Management
Item 4.1, Measurement, Analysis, and Improvement of Organizational Performance, has been revised to improve clarity and focus. Several requirements were reduced or
Changes from the 2015–2016 Baldrige Excellence Framework
Revisions have one overarching purpose: for the framework and the Criteria to reflect the leading edge of validated leadership and performance practice.
46 2017–2018 Baldrige Excellence Framework
combined to remove redundancy. The requirement related to best practices has been moved to item 4.2 as part of managing organizational knowledge.
Item 4.2, now Information and Knowledge Management, has been reordered and realigned to focus on the quality and availability of data and information and on organizational knowledge, including the sharing of best practices. Requirements around cybersecurity and management of information systems have been moved to item 6.2, since they are key components of operational effectiveness.
Category 5: Workforce
Item 5.1, Workforce Environment, now asks how you ensure that new workforce members fit your organizational culture, recognizing that your culture is a driver of the workforce engagement addressed in item 5.2.
Item 5.2, Workforce Engagement, now asks how you consider the learning and development desires of workforce members in your learning and development system.
Category 6: Operations
Item 6.1, Work Processes, now asks about your key work processes as an overall requirement, in recognition of the importance of clearly articulating these processes. It also asks about your consideration of risk in product and process design. Supply-chain management is now addressed in this item, reflecting its importance as a key work process.
Item 6.2, Operational Effectiveness, now asks about your management of information systems, including how you ensure their reliability, security, and cybersecurity during normal operations and as part of business continuity during disasters or emergencies.
Category 7: Results
Item 7.1, Product and Process Results, now asks for results related to your security and cybersecurity processes and your safety system. This again recognizes not only the importance of these processes but also the importance of monitoring results of their performance as a basis for further action.
Items 7.2 and 7.3 are now called Customer Results and Workforce Results, respectively.
Item 7.4, Leadership and Governance Results, now asks for your results for managing risk and taking intelligent risks, recognizing that risk is inherent in delivering ongoing organizational success.
Scoring System
The Scoring System section continues to emphasize that the importance of individual item requirements is dependent on the organization’s key business factors and is a critical consideration in scoring. In addition, no one evaluation factor should serve as a “gate” that automatically keeps the score out of a higher range.
In the Process Scoring Guidelines and the Results Scoring Guidelines, the descriptors in the 70–85% range for Approach and for Levels have been reworded. This revision is intended to clarify the difference between the 70–85% ranges for Approach and for Levels (now “responsive to multiple requirements in the item”) and the 90–100% ranges (“fully responsive to the multiple requirements of the item”). To score in the 70–85% range for Approach or Levels, an organization does not need to be responsive to all of the multiple requirements.
Core Values and Concepts
The description of visionary leadership now refers to leaders’ authenticity and willingness to share missteps and opportunities for improvement. These are valuable contributors to building trust in leaders.
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