customer satisfaction efforts and results. That does not mean that a
recipient’s products or services are endorsed.
Why are the Baldrige Award recipients asked to share their successful
strategies?
One of the main purposes of the award is to pass on information about the
recipient’s performance excellence strategies that other organizations can
tailor for their own needs. Representatives from the award recipients
willingly have shared their organizations’ performance strategies and
methods with thousands.
To what extent are they asked to share their strategies?
The managers of each recipient must decide how much time and effort to
devote to activities such as speaking engagements and tours of facilities.
The requirements of the award program are minimal. Recipients are asked to
participate in the award’s annual conference and several co-sponsored
regional conferences, to provide basic materials to those who request it on
their organization’s performance strategies and methods, and to answer news
media inquiries.
Do advertising and publicity diminish the image and prestige of the award?
The law establishing the award states that an award recipient may publicize
its receipt of such award and use the award in its advertising. Promoting
public and business awareness of quality improvement is one of the prime
goals of the program, and advertising is one way to meet this goal.
Guidelines help organizations assure their advertising is appropriate in
representing their Baldrige Award recognition.
Are organizations simply chasing after the award and ignoring the lessons
of performance improvement?
The perception by some that receiving the award is the goal of U.S.
organizations is not supported by the facts. Says Earnest Deavenport,
chairman and chief executive officer of Eastman Chemical Company, “Eastman,
like other Baldrige Award winners, didn’t apply the concepts of total
quality management to win an award. We did it to win customers. We did it
to grow. We did it to prosper and to remain competitive in a world
marketplace.” Thousands of organizations are using Baldrige Award
performance excellence criteria to assess their organization and to
improve. The program has helped to stimulate an amazing movement to improve
U.S. organizations, including companies; academic institutions; and
federal, state, and local government agencies.
If this is a federal government program, why are organizations charged a
fee to apply?
Federal funding for this program is about $5 million annually and is used
by NIST to manage the program. The application fees are charged to cover
expenses associated with distribution and review of applications and
development of feedback reports. The application and review process is
considered to be a very cost-effective and comprehensive business health
audit. For an application fee ranging from $5,000 for large organizations
to $500 for non-profit education institutions, organizations receive at
least 300 hours of review by a minimum of eight business and quality
experts. Site-visited organizations receive over 1,000 hours of in-depth
review. Every applicant receives an extensive feedback report highlighting
strengths and areas to improve. An article in the Journal for Quality and
Participation said, “The Baldrige feedback report is arguably the best
bargain in consulting in America.”
May an organization hire a consultant to help prepare answers for the
Baldrige application?
Applicants for the award are asked to supply facts and data to substantiate
their claims concerning their management practices. Consultants, including
members of the Board of Examiners, may provide services on performance
management issues as well as the Baldrige Award process. However, since
there are no secret answers or even right or wrong answers to the Baldrige
application, the award cannot be received by hiring someone to fill in the
blanks.
An organization must show through facts and data that it has a world-class
management system in place and that it is continually looking for ways to
improve.
As a final check before recommending recipients, members of the Board of
Examiners visit the more outstanding candidates for the award. During these
site visits, examiners interview employees and review pertinent records and
data. The objective is to verify the information provided in the
application and to answer questions raised during the board’s review. An
organization that hired someone to fill out its application would never
make it through this rigorous review if its performance management system
was not supported by facts and data.
Is it a conflict of interest for members of the Board of Examiners to work
as consultants?
No. Members of the Board of Examiners are experts in evaluating performance
management systems. They are in demand as speakers, as information
resources, and as consultants. These activities serve as a way to make more
people aware of performance improvement techniques and the Baldrige Award.
However, since the examiners and judges on the board review applications
for the award and are involved in recommending award recipients,
precautions are taken to prevent a conflict of interest or even the
appearance of conflict. Rigorous rules are followed at every stage of the
review.
Primarily, this means all members of the board must abide by a code of
ethics requiring, among other things, that they disclose all business
affiliations that might create a conflict. In such cases, they cannot
review an application, comment on it, or make any judgments that could
affect it. It is a violation of the code for board members even to ask for
information on applications other than those to which they are assigned.
Other safeguards and checks also are built into the four-step review
process. For example, during the first step, each application is evaluated
independently by at least eight different examiners. By the time the review
is over, some applicants will have gone through over 1,000 hours of
evaluation.
Is the number of applications for the award an indicator of interest about
quality and the Baldrige Award?
The number of applicants for the national Baldrige Award is not an
indicator of overall interest in quality or the award program. Interest
continues to grow both nationwide and internationally.
For example, participation in state and local award programs has increased
steadily. In 1991, fewer than 10 states had award programs. Now, 44 states
have or are establishing award programs. Most are modeled after the
Baldrige Award, and many organizations opt to compete for them first before
considering a Baldrige Award application. Many of the Baldrige Award
recipients also have won state quality awards.
Internationally, nearly 60 quality programs are in place. Most have been
established within the past several years, and many are based on the
Baldrige Award. In Japan, home of the Deming Prize, an award that closely
resembles the Baldrige Award has been established.
Also, it is important to remember the award program is much more than a
contest. While recognizing organizations that have successful performance
management systems is the most visible part of the program, its intent is
much broader. Equally important is the award’s role in raising awareness
about quality by encouraging all U.S. businesses and organizations to set
up performance improvement programs whether or not they intend, or are even
eligible, to apply for the award.
How does the Baldrige Award differ from ISO 9000?
The purpose, content, and focus of the Baldrige Award and ISO 9000 are very
different. The Baldrige Award was created by Congress in 1987 to enhance
U.S. competitiveness. The award program promotes quality awareness,
recognizes quality achievements of U.S. organizations, and provides a
vehicle for sharing successful strategies. The Baldrige Award criteria
focus on results and continuous improvement. They provide a framework for
designing, implementing, and assessing a process for managing all business
operations.
ISO 9000 is a series of five international standards published in 1987 by
the International Organization for Standardization (ISO), Geneva,
Switzerland. Companies can use the standards to help determine what is
needed to maintain an efficient quality conformance system. For example,
the standards describe the need for an effective quality system, for
ensuring that measuring and testing equipment is calibrated regularly and
for maintaining an adequate record-keeping system. ISO 9000 registration
determines whether a company complies with its own quality system.
Overall, ISO 9000 registration covers less than 10 percent of the Baldrige
Award criteria.
Is the Baldrige Award a U.S. version of Japan’s Deming award?
The basic purposes of both awards are the same: to promote recognition of
quality achievements and to raise awareness of the importance and
techniques of quality improvement. However, the Baldrige Award:
. focuses more on results and service,
. relies upon the involvement of many different professional and trade
groups,
. provides special credits for innovative approaches to quality,
. includes a strong customer and human resource focus, and
. stresses the importance of sharing information.
Why was NIST selected by Congress to manage the award and what is the role
of ASQ?
NIST is a non-regulatory agency of the Commerce Department’s Technology
Administration. NIST develops and promotes measurements, standards, and
technology to enhance productivity, facilitate trade, and improve the
quality of life. NIST was selected by Congress to design and manage the
award program because of its role in helping U.S. organizations compete,
its world-renowned expertise in quality control and assurance, and its
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