1. How the latest Baldrige award winners manage for innovation

    June 3, 2016 by ahmed

     

    Originally posted Blogrige by Christine Schaefer

    The Baldrige Excellence Framework (which includes the Criteria for Performance Excellence) fosters an approach to innovation that is systematic and integrated throughout an organization. Innovation, as defined in the glossary of the 2015–2016 Baldrige framework booklet, means “making meaningful change to improve products, processes, or organizational effectiveness and create new value for stakeholders. Innovation involves adopting an idea, process, technology, product, or business model that is either new or new to its proposed application.”

    This contrasts with a popular conception of innovation focused more narrowly on new products made possible by technological advancements. While it certainly includes “breakthrough” product changes as innovations, the Baldrige definition also encompasses discontinuous changes in any of an organization’s key processes and even in its structure or business model.

    Underlining the importance of such significant changes in products, processes, and/or the business model that yield a discontinuous change in results and contribute to an organization’s long-term success, managing for innovation is one of the core values of the Baldrige framework.

    Successful organizational innovation, according to the Baldrige glossary, “is a multistep process of development and knowledge sharing, a decision to implement, implementation, evaluation, and learning.” Given this definition, it follows that the Baldrige Criteria for Performance Excellence ask an organization to define its innovation process (“How do you manage for innovation”), making the question an overall requirement in the “Operations” category (i.e., the key question for item 6.1c).

    So how do high-performing organizations respond to this question? In other words, what do good-to-excellent innovation processes look like? Consider the responses of the four organizations that most recently earned the prestigious Baldrige Award. The 2015 award recipients (honored at an April 2016 ceremony) are Charleston Area Medical Center Health System (a large health care organization), Charter School of San Diego (a K-12 education organization that is part of the county’s public school system), Mid-America Transplant (a nonprofit), and MidwayUSA (a small business and two-time Baldrige Award recipient). These Baldrige Award-winning organizations offer exemplary innovation processes for learning and inspiration from four different sectors.

    Baldrige Program Director Emeritus Harry Hertz observes in his Spring 2016 “Insights on the Road to Performance Excellence” column that the 2015 Baldrige Award recipients “have demonstrated a new level of maturity and commitment to fostering innovation.” Hertz’s column is based on his attendance at multiple presentations of the four organizations at the Baldrige Program’s annual Quest for Excellence® Conference in April.

    Hertz attributes the organizations’ success with innovation to their “leaders’ setting the environment and establishing formal innovation processes” so that “innovation has become truly embedded in the very core of how these organizations operate.” He also notes that “all four organizations clearly demonstrate the key ingredients for innovation: a supportive environment and intelligent risk taking.”

    Fortunately, for those interested in learning from national role models identified through the Baldrige Award, application summaries for all award recipients are publicly available on the Baldrige Program’s website (on the data-rich award recipient page). Drawing from those posted documents, following are descriptions of the innovation processes of the 2015 recipients.

    Charleston Area Medical Center (CAMC) Health System

    CAMC Health System describes and depicts its Innovation Management System at 6.1c in its Baldrige Award application. The process begins with three key sources for innovation: strategic opportunities identified during the Strategic Planning Process, ideas that come from internal performance reviews, and unanticipated sources.

    “Once analysis is completed and we determine through the use of intelligent risk criteria … that the strategic opportunity should be pursued,” states the organization, “we develop the implementation plan, seek approval from the appropriate decision-making group … , staff, and pilot the innovation” and “make financial and other resources available to pursue these opportunities through adjustments to budgets.”

    The organization then monitors progress and either scales up and fully deploys innovations that meet key success measures or discontinues those that don’t meet targets as part of the ongoing review process in order to support higher-level opportunities. CAMC Health System depicts this innovation process in a flow chart (below).

    CAMC-Health-System-Innovation-Management-Process

    Charter School of San Diego (CSSD)

    According to its Baldrige Award application, CSSD’s innovation management process begins with determining strategic opportunities to pursue through consideration of internal and external success factors: “Once an idea or opportunity is received through the listening methods, senior leaders determine alignment to the vision, mission, and values; strategic initiatives, and the core competency,” states the organization. “A champion is identified based on his/her capability and capacity. Research is conducted and data [are] gathered through the [Process Design and Improvement System] PDIS. Senior leaders consider the data to determine if financial and other resources should be made available to support the idea or opportunity. Specific measures are identified to test the viability of the process.”

    CSSD relies on effective financial management to make financial and other resources available to support innovation and risk taking. In addition to “responsible cash flow management, budget controls, revenue enhancement, and expenditure controls,” CSSD’s maintenance of reserve accounts is a “key component to financing innovation.” As it states in its application, CSSD has three reserve funds available, with one targeted to support innovation. CSSD makes decisions to discontinue pursuing an opportunity through analysis of measures during its PDIS process.

    Beyond its process for managing innovation, as Hertz has pointed out, “CSSD was created with innovation at its core. Every system and process was a design innovation.” In addition, as CSSD shared at the Baldrige Program’s Quest Conference and Hertz subsequently describes, “The organization’s July strategic initiatives meeting includes an education reform and innovation plan for the short term (two years or less) and the long term.”

    Mid-America Transplant

    In its Baldrige Award application summary, Mid-America Transplant (MTS) states that “innovation is a core value and core competency at MTS and is embedded in the culture from the governance level with a Board of Directors vested in intelligent risk taking through the mission-driven workforce.” According to Hertz, at the 2016 Quest conference MTS CEO Diane Brockmeier described the five characteristics of her organization’s innovation culture as (1) visionary leadership with a sense of urgency; (2) transparent, two-way communication; (3) mission-driven, cross-functional teams; (4) a commitment to learning; and (5) effective external collaboration.”

    Mid-America-Transplant-Improvement-and-Innovation-Process

    MTS both describes and depicts its Improvement and Innovation Process (IIP; shown above) in its Baldrige Award application summary at 6.1c. “Innovation is initiated and managed through the IIP (Figure 6.1-2), which is an integral part of the [Operational Management Process] OMP, Learning and Development System] LDS, and the [Strategic Thinking Process] STP,” states the nonprofit organization.

    According to MTS’s application, after discussion of an innovation originates in the STP, OMP, or LDS, a business plan is developed. The Leadership Team prioritizes plans in Strategic Discussions (SDs), and an innovation team composed of staff members from multiple departments may be formed. Innovation teams use performance improvement tools and data analysis to develop new processes to test and implement. Plans determined to be aligned with the organization’s vision, mission, and values may be implemented in MTS operations during the “Deploy Plan” step of the IIP process; those determined to be intelligent risks are managed through a method called the MTS Incubator. After that, states MTS, “deployment and integration of plans include effectiveness checks and re-evaluation as needed.”

    Embedded in the IIP is MTS’s Priority Matrix, which helps MTS identify intelligent risks and validate (at LT meetings) the scope, schedule, and resources of those it decides to pursue. Decisions to discontinue such opportunities are also evaluated through the IIP, states MTS. “The Effectiveness Check and Priority Matrix, key components of the IIP, allow for a systematic review of current projects as well as proposed projects and ensure the agility to enhance support for higher-priority opportunities.”

    MidwayUSA

    “We manage innovation by developing, categorizing, prioritizing, and implementing strategically important ideas,” states two-time Baldrige Award recipient MidwayUSA in its 2015 Baldrige Award application summary. Among the means that the small business cites for developing innovation are strategic planning meetings, annual process reviews, and customer input methods, as well as numerous methods and meetings that focus on knowledge sharing, organizational performance (based on the Baldrige framework), and future opportunities.

    MidwayUSA’s 2015 Baldrige application summary also references formal calls for innovation, including employee focus groups. The organization records all innovation ideas in its Performance Improvement System (PIS), which all employees can access to add ideas. “We currently have over 3,400 ideas captured in our PIS in various stages of consideration and implementation,” states MidwayUSA’s application. “Since 2011 we have implemented over 2,000 ideas.”

    MidwayUSA describes how it reviews and prioritizes innovative ideas to pursue through its strategic and departmental performance meetings as well as its Work Process Management Process and Continuous Improvement meetings. The company captures innovation ideas that it identifies as strategically important in its “Bucket List” in the PIS, and it reviews these ideas for consideration as action plans to be included in its strategic plan.

    How does your organization manage for innovation?


  2. Four U.S. organizations honored with 2015 Baldrige National Quality Award

    December 25, 2015 by ahmed

    Baldrige 2015

    Originally posted on Department of Commerce website

    U.S. Commerce Secretary Penny Pritzker today named four U.S. organizations as the 2015 recipients of the Malcolm Baldrige National Quality Award, the nation’s highest Presidential honor for performance excellence. The honorees are recognized for their outstanding commitment to sustainable excellence through innovation, improvement and visionary leadership. This year’s recipients represent four different sectors and include a two-time winner for the seventh time in Baldrige history.
     
    The 2015 Baldrige Award recipients – listed with their category – are:

    • MidwayUSA, Columbia, Mo. (small business; won in the same category in 2009)
    • Charter School of San Diego, San Diego, Calif. (education)
    • Charleston Area Medical Center Health System, Charleston, W.V. (health care)
    • Mid-America Transplant Services, St. Louis, Mo. (nonprofit)

    “This year’s Baldrige Award honorees have demonstrated an unwavering commitment to improving their performance in all facets of their organizations, and they have served as role models for others to follow,” said Secretary Pritzker. “As America’s Innovation Agency, the Commerce Department is honored to support innovators and job creators who power our economy and help keep America open for business.”
     
    The Commerce Department’s National Institute of Standards and Technology (NIST) manages the Baldrige Award in cooperation with the private sector. An independent board of examiners recommended this year’s Baldrige Award recipients from a field of 26 applicants after evaluating them in seven areas defined by the Baldrige Criteria: leadership; strategy; customers; measurement, analysis and knowledge management; workforce; operations; and results. An organization may compete for the award in one of six categories: manufacturing, service, small business, health care, education and nonprofit (including government agencies).
     
    “Achieving sustainable excellence through the Baldrige Excellence Framework [which includes the Baldrige Criteria for Performance Excellence] takes time and commitment, but it is an effort that thousands of organizations worldwide have made the cornerstone of their leadership, management and improvement programs,” said Robert Fangmeyer, director of the Baldrige Performance Excellence Program. “Time and time again, organizations using the framework demonstrate positive transformation and growth, impressive metrics and outcomes, and lasting benefits for management, employees, customers and stakeholders.”
     
    To date, more than 1,600 U.S. organizations have applied for the Baldrige Award, and there are more than 30 independent Baldrige-based state and regional award programs covering nearly all 50 states. Internationally, the program has served as a model for nearly 100 excellence programs. In addition, many organizations use the Baldrige framework for its improvement and innovation strategies without applying for any of these awards.
    During the period 2010-2014, more than 4 million copies of the Baldrige Criteria for Performance Excellence were distributed. Their widespread acceptance and use both nationally and globally has dramatically impacted all types of organizations. Take for example, these achievements by the 2015 Baldrige Award winners:

    • Over the past 11 years, MidwayUSA has been one of the fastest-growing firms in the outdoor and recreational sport equipment industry, sustaining a 43.8 percent average annual growth rate in net income and a 21.3 percent average annual growth rate in gross sales.
    • At The Charter School of San Diego, where students enter academically behind and at risk of never receiving a high school diploma, 94-98 percent of those enrolled have graduated from the charter school or have successfully transitioned back to a traditional high school.
    • For the past two years, the Charleston Area Medical Center Health System has ranked in the top 5 percent for quality inpatient service by Healthgrades, a national service that rates the performance of physicians, hospitals and health care providers, and received the group’s Distinguished Hospital Award.
    • In 2001, Mid-America Transplant Services built the nation’s first stand-alone organ recovery facility, a system that has significantly reduced the expense of procuring organs compared to the cost of in-hospital organ procurement. Since 2012, the cost-per-donor for in-house cases has decreased from approximately $7,000 to under $4,000, compared to approximately $20,000 when completed in the hospital.

     
    The Baldrige judges also may recognize best practices in one or more of the Baldrige Criteria categories by organizations that are candidates for the award but are not selected as a recipient. This year, the judges have chosen to honor Memorial Hermann Sugar Land Hospital (Sugar Land, Texas) for its best practices in the strategy criterion.
     
    The 2015 Baldrige Award will be presented at an April 2016 ceremony during the Quest for Excellence conference in Baltimore, Md.
     
    The Baldrige Program raises awareness about the importance of performance excellence in driving the U.S. and global economy; provides organizational assessments, training, tools and criteria; educates leaders in businesses, schools, health care organizations, and government and nonprofit organizations; shares the best practices of national role models; and recognizes those role models with the Baldrige Award.
     
    The Baldrige Award was established by Congress in 1987 and is not given for specific products or services. Since the first group was recognized in 1988, 109 awards have been presented to 102 organizations (including seven repeat recipients).


  3. Winners of the 4th International Best Practice Competition

    December 1, 2015 by ahmed

    BPC01

    The 4th International Best Practice Competition was held at the Novotel Manila Araneta Center, Philippines on 26th/27th November. The Best Practice Competition encourages organizations to share their best operational and managerial practices, processes, systems, and initiatives and learn from the experience of others. It provides an opportunity to celebrate the achievements of individuals and teams that have been responsible for creating and/or managing the introduction and deployment of best practices. The Best Practice Competition has been designed by the Centre for Organisational Excellence Research (COER), the developers of the Business Performance Improvement Resource. Presentation videos will be on the BPIR early next year.

    bpc2015cAl Jazeera International Catering Company (JIC) and Dubai Corporation For Ambulance Services (DCAS) teams with final session judges

    Two winners:

    • Our Planet – Our Responsibility – CSR Engagement Strategy for Sustainability Excellence, Robby Thommy, Managing Director, and Loganathan Murthy, HEAD – HSE and Training, Al Jazeera International Catering LLC, UAE.

    • Cultural Sensitivity Gives Birth to a Maternity Care, Dr. Omer Ahmed Zain Al Sakaf, Director of Medical & Technical Affairs and Dr. Tanveer Ahmed Mohamed Ishaque Yadgir, Acting Head of Research & Studies Unit, Dubai Corporation for Ambulance Services (DCAS), UAE.

    Three runners up:

    • Single Window Transaction (SWiT) Modified Business One-Stop Shop (MBOSS), Glenda Zamora-Aninon, City Government Department Head III, City Government of Muntinlupa, Philippines.

    • ONE SHARE (Share History and Reduce Excursion) – Best Practice Sharing Tool, Penelope Jas Dizon, Manager/ One SHARE Champion, Texas Instruments Philippines, Philippines.

    • Strategic Focused Budgeting, Nancy Bartlett, Chief Performance Officer, City of El Paso, United States.

    For event photos click here


  4. Singapore Business Excellence Award Winners 2015

    October 20, 2015 by ahmed

    SPRING2015

    Originally posted on SPRING Singapore

    1- Four organisations have clinched top honours for their commitment towards the business excellence journey, achieving outstanding business performance. The winners are two local home-grown brands and two public sector agencies. They will receive their trophies from Mr S Iswaran, Minister for Trade and Industry (Industry) at the Business Excellence Awards Ceremony on 14 October.

    2- The Immigration & Checkpoints Authority of Singapore (ICA) and Singapore Civil Defence Force (SCDF) have been conferred the Singapore Quality Award with Special Commendation (SQA SC). It is the highest accolade recognising organisations that have achieved the pinnacle of business excellence. Jumbo Group of Restaurants Pte Ltd has been awarded the People Excellence Award (PEA), while Sheng Siong Group Ltd was conferred the Innovation Excellence Award (IEA), in recognition of their exceptional performance in the respective categories.

    3- All four winners share a visionary leadership committed to innovation, people development and customer-centric excellence, which has resulted in greater productivity and business growth. They will join the ranks of 100 past Business Excellence Award winners that have distinguished themselves in the various aspects of excellence.

    4- “As we celebrate the achievements of the winning organisations, we are encouraged to see over 1,500 organisations embarking on this Business Excellence journey. Amidst the uncertain global economic environment, it becomes even more crucial for organisations to strengthen their business fundamentals and be future-ready to take on any challenges that come their way. Organisations must strive towards excellence to be globally competitive. This can be achieved through continuous learning, innovation, investing in people, and sound management practices,” said Professor Cham Tao Soon, Chairman, SQA Governing Council.

    2015 Business Excellence Award Winners

    5- The first SQA SC winner, the Immigration & Checkpoints Authority (ICA), has been continuously innovating, leveraging technology to develop and deploy robust border security and identification processes and systems. With an emphasis on creating win-win partnerships for better Customer Experience, ICA involves both internal stakeholders (officers and work units) and external partners (suppliers, academia and customers) to co-create high performance innovation projects. These include the Application for Passports on-line (APPLES), Enhanced Immigration Automated Clearance System (eIACS), iCollect and Biometric Identification of Motorbikers 2 (BIKES 2). As the world’s firsts, these innovation projects testify to the strong innovation culture in the organisation. ICA has also set a global benchmark for border management excellence, and was awarded the inaugural “Excellence in Border Management Award” by BORDERPOL last year.

    6- The second SQA SC winner, the Singapore Civil Defence Force (SCDF) is one of the leanest emergency organisations internationally. Despite this, it has demonstrated a strong innovation culture, leveraging technology and state-of-the-art equipment to strengthen its emergency response capabilities. This includes developing solutions internally, such as the Light Fire Attack Vehicle, 4th Generation Red Rhino (LF4G) and the Responders’ Performance Module. The SCDF also believes in equipping its officers with diverse skills to respond to emergencies. For example, SCDF’s 995 Operations Centre Specialists are trained to coach callers in administering CPR for cardiac arrest before SCDF arrives. Beyond national shores, SCDF has also participated in numerous overseas rescue missions. SCDF’s Operation Lionheart Contingent has obtained the International Search and Rescue Advisory Group (INSARAG) External Classification as a Heavy Urban Search Rescue (USAR) Team, being the first in Asia to attain this classification in 2008, and later recertified in 2013.

    7- Winner of the People Excellence Award, JUMBO Group of Restaurants, puts people at the heart of its business. Adopting a people-centric philosophy, it believes that by focusing on its employees’ well-being first, they in turn will take good care of their customers. The company places strong emphasis on delivering superior customer experience and service excellence. This is validated by the increase in number of compliments received from 79% in 2012 to 84% in 2014. Given the manpower challenges in the food services sector, the company has introduced a wide-range of innovative, progressive people practices to enhance its hiring and retention practices. JUMBO distinguishes itself from its competitors by providing bonus payouts and CPF contributions to attract casual workers. This group of workers forms a significant 22% of JUMBO’s existing workforce. The leadership’s ability and commitment to identify talented employees and internally groom them for higher positions through its in-house FAST Track Programme has also helped JUMBO stay ahead of the curve.

    8- Since its inception, the Innovation Excellence Award winner, Sheng Siong Group, has placed creation of value for customers at the heart of its innovation endeavours. Noting the difficulties faced by customers using conventional self-checkout machines at other retailers, Sheng Siong became the first supermarket to develop a hybrid self-checkout system. This allowed scanning of products to be done by the cashiers, while customers use the self-service kiosk to make payment by cash or electronic means. This has resulted in 33 man-hour savings per day, while replacing five traditionally-manned counters with three hybrid counters. The impetus to drive productivity has also seen Sheng Siong introducing several back-end process innovations such as the Individually Quick Frozen (IQF) technology. Adapted from the fishing industry, this technology keeps fish fresh for a longer time, from 2 to 7 days, and also improves productivity in the processing of fish, resulting in the reduction of manpower required by 50%.

    Building Operational Excellence Capabilities within Manufacturing Industry

    9- Recognising challenges faced by industries in this time of economic restructuring, coupled with intensifying regional competition, enterprise development agency SPRING Singapore has partnered industry players within the manufacturing and construction industries to raise their levels of efficiency and quality.

    10- Within the manufacturing industry, SPRING has developed a diagnostic toolkit based on the Operational Excellence model. Endorsed by key industry partner, the Singapore Precision Engineering and Technology Association (SPETA), the diagnostic toolkit provides a developmental roadmap for SMEs to enhance their competencies and capabilities, and deliver consistent, sustainable performance. The toolkit embeds the fundamentals of business excellence and the stringent requirements MNCs and large organisations impose on their suppliers.

    11- This came after a series of consultations with SMEs and MNCs to understand the key challenges and attributes larger organisations looked out for in their suppliers. Operational Excellence was identified as a key driver for overall business growth within the manufacturing industry, as it focused on managing the entire supply chain – from procurement, production, materials management to delivery. SMEs that adopt the Operational Excellence model would be in a more favourable position to be the supplier of choice for large organisations and MNCs.

    12- A network of industry experts, honing years of manufacturing experience, has also been established to guide SMEs in diagnosing and strengthening their capabilities in operational excellence. A pilot will be conducted within the Precision Engineering sector, across 10 companies.

    13- RUI, a precision engineering company, has benefitted from this pilot initiative, Mr Kelvin Lee, Director of RUI said, “The diagnostic exercise has helped us identify our operational gaps. We subsequently embarked on a 5S system and data analysis to improve our business processes and our productivity. This initiative has helped RUI reposition the company to retain its competitiveness and achieve greater business growth.”

    Boosting Competitiveness through Integrated BE-ISO9001 Assessment

    14- The construction industry, together with the rest of the Built Environment industry, is also undergoing rapid transformation. The Building and Construction Authority (BCA) and industry players have placed strong emphasis on quality management practices within the Built Environment industry to ensure productivity, sustainability and to achieve health, safety and environmental standards. The adoption of standards such as ISO 9001 for quality management systems is a requirement by BCA for companies to be registered in the higher-tiered Contractors Registration System, which serves the procurement needs of government agencies, statutory boards and other public sector organisations.

    15- In a boost to increase growth and competitiveness of the Built Environment enterprises, SPRING and BCA are embarking on an integrated assessment of both Business Excellence and ISO 9001 standards. The integrated assessment will provide companies a more comprehensive approach towards building their capabilities and developing sustainable long-term plans, ultimately working towards achieving a superior performance and surpassing industry benchmarks. This initiative will be piloted next year, after further consultations with the industry.

    16- Mr Stephen Wong, Managing Director, Davis Langdon KPK, welcomed this initiative. “We look forward to embarking on the integrated BE and ISO 9001 assessment as it provides Davis Langdon KPK the opportunity to internally align our processes with a strategic view on addressing future challenges. While ISO 9001 has become an industry requirement, the BE framework has transformed the thinking of the company into one that is excellence-oriented.”

    17- “We are encouraged to see more companies embarking on the business excellence journey and seeing the benefits translate down to their people and customers. SPRING Singapore will continue to work closely with the industry to understand their unique challenges and find solutions to increase the growth and competitiveness of enterprises. For the manufacturing industry, enterprises can now look forward to the new diagnostic toolkit to strengthen their capabilities and achieve operational excellence, “said Ms Choy Sauw Kook, SPRING’s Assistant Chief Executive (Quality & Excellence).


  5. What makes an effective CX management process?

    August 26, 2015 by ahmed

    This is the question that the Cranfield Management Forum (CCMF) set out to answer in its recent white paper: Stages of customer experience management: Case studies from the UK Customer Experience Awards.

    Researcher Dr Farah Arkadan studied the winning entries from the UK Customer Experience Awards 2015 in order to gain insights into how organisations manage and deliver a superior customer experience across seven stages of customer experience.

    To read the full article about the seven management stages of customer experience and download the free white paper