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Strategy Execution and Sustainability: Using the Baldrige Leadership Model to Overcome Evasive Organizational Challenges
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07-28-2020 10:20
Jerry Rees
by Jennifer Strahan, MS, LSSMBB, FACHE
Chief Operations Officer, SOAR Vision Group
Introduction
Based on the historical patterns of health care spending in the United States, it is no surprise that health care industry predictions for 2019 focus on aspects of consumerism, innovation, artificial intelligence (AI), and analytics as mechanisms to improve quality and reduce costs (Das, 2018; Trzcinski, 2018). The conundrum of high costs and poor outcomes continues to plague the United States compared to other high-income nations. The Commonwealth Fund summarizes the U.S. health care industry as spending more on care, covering fewer lives with insurance, paying more for physician and pharmaceutical services, running more tests, and resulting in people living shorter lives compared to those in other wealthy nations (Papanicolas, 2018).
The competition of the global economy across industries is what led the United States to establish the Malcolm Baldrige National Quality Improvement Act of 1987, to which health care was added in 1998 ("Baldrige Performance Excellence Program: History," 2010; Garvin, 1991). The Baldrige Performance Excellence Program is housed under the U.S. National Institute of Standards and Technology (NIST) within the Department of Commerce and manages the Malcolm Baldrige National Quality Award ("Baldrige Performance Excellence Program," 2009). The prestigious Baldrige National Quality Award analyzes organizational self-assessments to identify and recognize role-model organizations through cultural and performance accomplishments across six sectors: Health Care, Education, Small Business, Manufacturing, Nonprofit and Government, and Service ("Baldrige Performance Excellence Program: History," 2010).
Given the rigor and standardization of the review and award process, the leadership and management principles are widely accepted by both academicians and practitioners (Calhoun, Griffith, & Sinioris, 2007). The Baldrige Performance Excellence Framework assesses seven categories of performance including (1) Leadership; (2) Strategy; (3) Customers, (4) Measurement, Analysis, and Knowledge Management; (5) Workforce; (6) Operations; and (7) Results.
SOAR Vision Group reframes the seven Baldrige categories as an Organizational Hierarchy of Needs in which successful organizations must fulfill each layer of the Hierarchy to achieve the desired results (see Figure 2) (SOAR Vision Group, 2017). Although the Baldrige criteria are specific in their evaluation, they are non-prescriptive, allowing organizations to adapt the criteria to their own culture and operations (Goonan & Stoltz, 2004). The Baldrige framework provides self-awareness for the organization through a comprehensive review of strengths and opportunities for improvement across cultural, strategic, and operational viewpoints (Goonan & Stoltz, 2004; Griffith, 2017).
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