BUILDING AND

SUSTAINING QUALITY
AND PERFORMANCE
EXCELLENCE
TOPIC 6
 Group Members
TOPIC 6

SHEINA PARNONCILLON JOVIE MAE BOY MARIA ROSE YAGONIA

BETTY MAY MUTAS ARSHLY JAYE DELA CRUZ ROSELYN NARCISO

BSMA 2B
 SUBTOPICS

STRATEGIES THE JOURNEY

ORGANIZATIONAL FOR QUALITY TOWARD A VIEW
CULTURE AND AND PERFORMANCE TOWARDS THE
CHANGE PERFORMANCE EXCELLENCE FUTURE
EXCELLENCE

BUILDING AND SUSTAINING QUALITY AND PERFORMANCE EXCELLENCE

Organizational Culture
and Change

SUBTOPIC
 WHAT IS
ORGANIZATIONAL
CULTURE ?
ORGANIZATIONAL CULTURE
An organization's culture defines the proper way to
behave within the organization. This culture consists of
shared beliefs and values established by leaders and
then communicated and reinforced through various
methods, ultimately shaping employee perceptions,
behaviors and understanding. Organizational culture sets
the context for everything an enterprise does.

BUILDING AND SUSTAINING QUALITY AND PERFORMANCE EXCELLENCE

 Building and Sustaining Quality and
Performance Excellence
It requires effective leadership, a commitment to change and long-term
sustainability, the adoption of sound practices and implementation strategies, and
continual organizational learning. To sustain performance excellence demands
continual learning and adaption to the changing global business landscape.
For quality and performance excellence to truly succeed in an organization,
it must define and drive the culture of the organization. Culture(specifically,
corporate culture) is an organization’s value system and its collection of guiding
principles.
BUILDING AND SUSTAINING QUALITY AND PERFORMANCE EXCELLENCE
DIFFERENCE BETWEEN
STRATEGIC CHANGE
AND PROCESS CHANGE
 STRATEGIC
CHANGE
Stems from strategic
objectives, which are generally
externally focused and relate
to significant customer,
market, product/service, or
technological opportunities and
challenges.
An organization must change
these aspects to remain or
become competitive.
DIFFERENCE BETWEEN STRATEGIC CHANGE AND PROCESS CHANGE
PROCESS
CHANGE
Deals with the operations of an
organization. Developing
process change management
involves a continuous
improvement procedure that
aims to address significant
concerns as they come along
and modify them until the
whole process reaches the
desired stage or outcome.
 5 PRINCIPLES
OF
ORGANIZATIONAL
CULTURE
 Trust is one of the most foundational aspects
of human relationships. Culture change in the
workplace just isn’t going to happen without
Changing it.
Everything flows from trust, and when we
Organizational think about foundational moments in our lives
Culture by at work, we often see that trust (or a lack
thereof) is critical.
Building Trust An organization that’s filled with mistrust is
going to fail to achieve results. Workers who
fear retribution and don’t trust their bosses
aren’t going to admit failure.

5 PRINCIPLES OF ORGANIZATIONAL CULTURE

 Conflict is a part of all relationships — when
conflict is healthy, respectful, and productive,
Changing it leads to positive change. When conflict is
unhealthy, disrespectful, and mean, it ruins
Organizational relationships.
Culture by Changing company culture is difficult, but an
organization that trusts itself can master the
Mastering art of healthy conflict, and an organization
which does that can achieve something critical
Conflict to reaching high levels of quality and
productivity and commitment to decisions.

5 PRINCIPLES OF ORGANIZATIONAL CULTURE

 Achieving commitment doesn’t mean
getting everyone to agree — it means getting
everyone to understand what’s and why's
Changing happening, and to support the direction of the
organization and the choices
Organizational whether they agree or not. that are made
Culture by Clear goals in an organization filled with
trusting people who understand how to have
Achieving healthy conflict is great, but when not
everyone agrees (and when some people have
Commitment performance or behavior issues),
accountability is required to stay the course.

5 PRINCIPLES OF ORGANIZATIONAL CULTURE

 True accountability isn’t possible if your
team members don’t trust each other. No one
is going to feel the need to be accountable if
Changing they don’t believe they’ll be given a fair
hearing, and they will actively hide
Organizational shortcomings and issues to protect
themselves and their paycheck.
Culture by With accountability, trust is solidified. Team
Embracing members feel they can trust colleagues
because they know they’ll be held
accountable if they don’t perform or
Accountability misbehave. With all the proper pieces in
place, real results can be built.
5 PRINCIPLES OF ORGANIZATIONAL CULTURE
 When employees are focused only on their
own status and personal success, when
teams only care if their team looks good
Changing every quarter, unhealthy conflict emerges,
and results fall victim to petty infighting and
Organizational office politics.
For all employees, teams, and departments to
Culture by forgo personal status or reward when the
Focusing on results of the organization are on the line, for
teams to be willing to support a goal even if it
Results means they don’t get the largest reward or
greatest recognition, requires a lot of trust
and real buy-in.
5 PRINCIPLES OF ORGANIZATIONAL CULTURE
Strategies for Quality
and Performance
Excellence

SUBTOPIC
 ORGANIZATIONAL QUALITY AND
PERFORMANCE EXCELLENCE
Many organizations face common challenges when it comes to achieving quality and high levels of
performance. Organizations of all kinds— business, governmental, health care, and educational—
create products or services to meet particular sets of consumer needs. To the extent that an
organization achieves success and stability, the structures, systems, policies, work practices, and
leadership styles that are associated with those accomplishments become accepted and
standardized over time. In the short run, these patterns are often a prescription for continued
success and vitality. However, in the longer term, these same patterns can lead to rigidity,
insulation, lack of innovation, and gradual distancing from the needs of the marketplace and the
expectations of consumers.

BUILDING AND SUSTAINING QUALITY AND PERFORMANCE EXCELLENCE

 QUALITY/PERFORMANCE
EXCELLENCE APPROACH
The quality/performance excellence approach is an interdisciplinary
approach to organizational behavior and leadership. The approach
addresses significant and enduring issues, and it integrates theories,
concepts, and methods from various disciplines and traditions of
organizational thought.
6 CORE CONCEPTS
 6 CORE CONCEPTS
Originally called "TQM" (total quality management), "the quality/performance
excellence approach" has achieved remarkable acceptance as a philosophy and
method for addressing quality and performance challenges and dynamics and
for identifying and reducing the gaps that confront many contemporary
organizations.
Though the terminology varies somewhat from setting to setting, author to
author, and program to program, there are six key values that transcend the
various approaches to organizational quality and performance excellence: (1)
service orientation, (2) leadership, (3) information use, (4) collaboration, (5)
communication, and (6) continuous improvement.
BUILDING AND SUSTAINING QUALITY AND PERFORMANCE EXCELLENCE
 SERVICE ORIENTATION
A service orientation directs attention to the needs, expectations,
and satisfaction levels of the groups that are served by a private-or
public-sector organization. Within the quality framework, these
groups are variously referred to as "customers," "constituencies,"
"stakeholders," "consumers," "publics," "clients," "audiences,"
"beneficiaries," or "users." The focus on service to consumers is
based on a recognition that it is ultimately their judgments of the
quality of a product, service, or institution—translated into
marketplace behaviors— that are necessary for the continuing
viability of the product or service organization.
6 CORE CONCEPTS
 3 ESSENTIAL CONCEPTS OF
SERVICE ORIENTATION

(1) (2) (3)

Identify external Determine and Satisfy, ideally
constituencies for anticipate their exceed, those
which the needs and needs and
organization provides expectations expectations.
products or services
 LEADERSHIP
A fundamental tenet of the quality approach is that leaders are most
effective when they are personally involved in creating,
communicating, explaining, reinforcing, and exemplifying the
organization's mission, vision, values, and service orientation. These
directions must be clear, visible, and well integrated into
management systems. Leaders should serve as role models through
their active involvement and leadership in public and professional
activities.

6 CORE CONCEPTS
 INFORMATION USE
The basic concept underlying the value of information use is that
organizational well-being and an external focus are possible only
with effective systems for information acquisition, analysis, and
application. This includes identifying, studying, and comparing an
organization's own activities to those of "benchmark"
organizations—organizations that represent a standard of
excellence and are therefore a focal point for performance
comparison and improvement.

6 CORE CONCEPTS
Specific kinds of information to be collected
and used would include the answers to the
following questions:
How do key external consumer groups evaluate products and/or services?
What criteria do consumers use in assessing products/services?
What is the relative importance of these criteria?
Who are the key competitors?
How do products, services, management approaches, and operational
performance compare to those of competitors?
How do employees evaluate the organization, its performance,
management, quality of life, products/services, and processes?
How do suppliers and gatekeepers evaluate the organization and its
products/services?
6 CORE CONCEPTS
 COLLABORATION
Organizations are considered to be complex systems with
numerous internal and external constituencies that interact with
and depend on one another. These interactions may take the form
of exchanges of goods, services, capital, or information. The
viability of organizations as systems and their ability to meet
expectations of external constituencies depend largely on
whether and how these internal interactions take place. Vertical
structures, sometimes termed "silos," facilitate interaction
within functional divisions.

6 CORE CONCEPTS
 COMMUNICATION
Communication is the means through which information is
gathered and disseminated to and from stakeholders or
consumers, and it is the mechanism through which work process
collaboration occurs. It is also the process through which
relationships are formed and developed—relation-ships that are
essential to the creation of a culture and spirit of teamwork that
is necessary to support and maintain an external focus,
collaboration, and a good overall organizational quality.

6 CORE CONCEPTS
CONTINUOUS IMPROVEMENT
Quality and high levels of performance do not occur naturally.
Rather, they require a substantial commitment of time and
resources to a process of continuous improvement and ongoing
change, what many people writing in the quality area have called a
"journey."
Continuous improvement implies a commitment by everyone
within the organization to a recursive process, consisting of
planning and testing improvements, evaluating outcomes,
learning from failures, implementing and sustaining successes,
planning and testing improvements, and so on.
6 CORE CONCEPTS
 2 PHASES OF QUALITY
STRATEGIES AND PROCESSES
ASSESSMENT
It is a strategy for evaluating the current
level of performance of an organization in
relationship to the expectations of its
constituencies and the organization's
mission and vision. It allows for the
identification of service quality gaps,
which become priorities for improvement.
STRATEGIES FOR QUALITY AND PERFORMANCE EXCELLENCE
QUALITY IMPROVEMENT
The process of quality improvement
usually involves two steps: (1)
identifying, planning, and implementing
improvement and (2) integrating
improvements. Basic to the
improvement process are groups, or
teams. A team simply is a group
composed of individuals who represent
various facets and levels of a unit and
improvement.
Assessment
One of the most widely used assessment tools is the Malcolm Baldrige
National Quality Award. The Baldrige Award, signed into federal law on August
2, 1987, was initiated with the intent of improving quality and workmanship in
the United States. The National Institute of Standards and Technology (NIST)
directs the award program. Organizations that are interested in being
considered for the award must complete a comprehensive self-study and
application process. Awards are given in five categories: manufacturing,
service, small business, education, and health care.

2 PHASES OF QUALITY
STRATEGIES AND PROCESSES
Quality Improvement
The team includes individuals who have a broad base of knowledge and experience with
the processes that are being addressed. The team members work together to develop an
approach for ongoing monitoring, evaluation, and improvement. Team activities typically
consist of the following: attending meetings, planning improvements, understanding the
process to be improved, understanding the problem, collecting information, using tools
and techniques to analyze and interpret the information, identifying solutions, and
implementing and managing changes. Other improvement tools besides teams include
strategic planning, advisory groups, work process design or redesign groups, quality and
service skills training, partnerships with corporations that are experienced with quality
programs, and external consultation.

2 PHASES OF QUALITY
STRATEGIES AND PROCESSES
 Five Ways to Achieve
Quality Excellence

1 2 3 4 5
A Strategic Time to Identifying Changing the Understanding
Quality Set Past mindset the
Planning Team Expectations Mistakes of the Customer
employees
STRATEGIES FOR QUALITY AND PERFORMANCE EXCELLENCE
1) Strategic Quality Planning Team
Before anything else, the organization needs to assemble a
team of quality professionals who will help develop a
strategic quality plan. In the quest to improve quality,
moving aimlessly from workshops or employee training
sessions can do more harm than good. A carefully selected
team of employees can pinpoint areas of weaknesses and
strengths in a company and create a day to day quality
management plan.
FIVE WAYS TO ACHIEVE
QUALITY EXCELLENCE
2) Time to Set Expectations
Quality cannot be achieved unless the very concept is defined.
Every one of your employees should be made aware of what
the organization’s core values are. Clearly demarcated goals
and acceptable standards have to be disseminated and
maintained at all times. That said, this does not mean
individual effort and creativity is hindered. Rather, an open
environment that offers an even playing field and
transparency is what makes all the difference.

FIVE WAYS TO ACHIEVE

QUALITY EXCELLENCE
3) Identifying Past Mistakes
For a quality excellence plan to be successful, an in-depth
study of the organization’s past is a must. The team must
spend time analysing and discussing what methods have
been used before, how successful these initiatives have
been, and what factors have contributed to their failures.
Narrowing down the field in this way will help determine the
correct methodology to use — be it personal accountability
or proactive group training.

FIVE WAYS TO ACHIEVE

QUALITY EXCELLENCE
4) Changing the Mindset of the Employees
One surefire way to improve quality is to change the way
your employees think. An “us vs. them” mindset will never
result in transparency and accountability amongst the
workforce. A steady and honest dialogue between
management and employees is necessary to create an
environment of acceptance and a common goal of
excellence. Such an open environment will also help bring to
the forefront any inconsistencies in the system.

FIVE WAYS TO ACHIEVE

QUALITY EXCELLENCE
5) Understanding the Customer
When a product meets customer demands it implies a
certain level of quality. But to meet these demands, it is
important to first understand the customer — what
motivates them, what are their priorities and needs and what
concerns can be addressed by the company. This type of
investigation and collation of data will result in competitive
positioning and quality service and delivery. The higher the
customer satisfaction, the greater the customer retention.

FIVE WAYS TO ACHIEVE

QUALITY EXCELLENCE
The Journey Toward
Performance
Excellence

SUBTOPIC
The urgency to improve organizational performance is at an all-time high.
Today’s customers expect more value for every dollar, knowledgeable
employees are difficult to find and retain, competition is fierce,
technology and data grow increasingly complex, and business models
evolve ever more quickly. Given all of that and the complexity of modern
organizations, a scatter-shot approach to improvement is not enough.
Organizations need a systematic approach to incremental change that
will drive them toward the ultimate goal of performance excellence.

THE JOURNEY TOWARD PERFORMANCE EXCELLENCE

 It was developed in 1987 as a public-private partnership to
be managed by the Department of Commerce, specifically
the National Bureau of Standards (now called the National
The Institute of Standards and Technology – or NIST), provides
a structure that organizations can use to diagnose
Baldrige weaknesses and set priorities for improvement. The
approach has been proven to help organizations transform
Framework with respect to customer satisfaction, employee
engagement, leadership effectiveness, resource
optimization, and ultimately performance excellence.

THE JOURNEY TOWARD PERFORMANCE EXCELLENCE

The History of
THE BALDRIGE FRAMEWORK FOR PERFORMANCE EXCELLENCE
The period following World War II was a productive and economically lucrative one for
American manufacturers. The public appetite for products like TVs, cars, and home
appliances was strong, and factories were operating at near peak capacity. Between
1950 and 1975 America experienced one of its longest eras of economic expansion.
The more stuff businesses made, the more people bought, so quality and customer
value became something of an afterthought.

THE JOURNEY TOWARD PERFORMANCE EXCELLENCE

W. Edwards Deming, considered the father of the
modern quality movement, took his talents, which were
mostly unappreciated in the US, to Japan. There he
helped organizations improve processes, reduce
defects, and focus on what workers and customers
value. Organizations like Toyota, Sony, and others
became competitive and started gaining market share
that had previously been enjoyed by American firms.

THE JOURNEY TOWARD PERFORMANCE EXCELLENCE

By the time the 1980's rolled around, the American economy was in trouble. The unemployment rate
and interest rates skyrocketed. Several factors contributed to these conditions, including a savings
and loan collapse, but America’s lack of attention to manufacturing quality products that customers
wanted undoubtedly played a role as well.

In 1987, Congress passed legislation creating the Malcolm Baldrige National Quality Award. The
program is managed by the National Bureau of Standards and Technology within the Department of
Commerce. The first goal of the program was to recognize organizations that demonstrated
outstanding quality and performance excellence. The second and more important objective was to
highlight best practices and principles of performance excellence that lead to better results.

The Baldrige Framework has become the standard definition of performance excellence across the
globe. Almost 100 countries have similar models and award programs, all based on the Baldrige
Framework. Thousands of organizations are using it in the US across all sectors including healthcare
system, professional service organizations, nonprofits, educational institutions, government agencies,
and, of course, manufacturing. The industry doesn’t matter to the model because the principles of
quality apply to processes of any type.

THE JOURNEY TOWARD PERFORMANCE EXCELLENCE

CORE VALUES & PRINCIPLES
THE BALDRIGE MODEL DEFINES
PERFORMANCE EXCELLENCE AS:
(1) Delivery of ever-improving value to
customers and stakeholders,
contributing to ongoing organizational
success.
(2) Improvement of your organization’s
overall effectiveness and capabilities
(3) Learning for the organization and for
people in the workforce.

THE JOURNEY TOWARD PERFORMANCE EXCELLENCEN THINKING

D esc ri p ti on s A d ap te d
fr om t he Ba l d r ige
Exc el l e n c e F ra me w ork
2018
SYSTEMS PERSPECTIVE
The organization should be managed as a unified whole with all components
working in sync to achieve customer value and quality.

VISIONARY LEADERSHIP
Leaders operate as role models and set the mission, vision, and values of the
organization. They must demonstrate those values, focus on the customer, and
set high expectations for the workforce. Leaders practice strategy deployment
and create the systems and methods necessary to accomplish the
organization’s key objectives.

DESCRIPTIONS ADAPTED FROM THE BALDRIGE EXCELLENCE FRAMEWORK

2018
CUSTOMER FOCUSED EXCELLENCE
The ultimate judge of an organization’s performance and quality is the
customer. A customer-focused organization understands and improves the
entire customer experience. It delivers more than the baseline requirements,
offering unique features and value that differentiates it from competitors.

VALUING PEOPLE
Valuing people means committing to provide the best possible outcomes for
customers, community members, employees, shareholders, and any other
groups that are impacted by the organization’s actions. Success is dependent
on an engaged workforce that enjoys meaningful work, clear direction, personal
growth opportunities, and accountability.

DESCRIPTIONS ADAPTED FROM THE BALDRIGE EXCELLENCE FRAMEWORK

2018
ORGANIZATIONAL LEARNING & AGILITY
Performance excellence depends on an organization’s ability to adapt to
changing conditions and continually learn. Operations must be flexible, with
managed change and mitigated risk. Learning and agility apply to both
incremental improvement of existing processes and breakthrough innovation
that leads to new market opportunities. Learning must be built-in to
organizational operations.

FOCUS ON SUCCESS
Leaders should be focused on success today and into the future with a sharp
understanding of both short and long-term factors that will impact the
organization and market. This means developing a strong future orientation
and the will to make investments that don’t pay off immediately but lead to
success in the future.

DESCRIPTIONS ADAPTED FROM THE BALDRIGE EXCELLENCE FRAMEWORK

2018
MANAGING FOR INNOVATION
Innovation certainly applies to significant changes to an organization’s products and
services that create new value for customers and other stakeholders. It applies
equally to the daily task of improving the organization’s processes, operations, and
work systems.

MANAGEMENT BY FACT
Management by fact happens when decisions are made based on essential data about
outputs, results, outcomes, processes, competitors, and the industry. What get
measured is derived from the strategy and organizational needs.

SOCIAL RESPONSIBILITY
it means that leaders support the environmental, social, and economic systems within
the organization’s sphere of influence. Organizations demonstrating performance
excellent see meeting all local, state, and federal laws and other regulatory
requirements as only the baseline and recognize the opportunity to excel beyond
minimal compliance.

DESCRIPTIONS ADAPTED FROM THE BALDRIGE EXCELLENCE FRAMEWORK

2018
ETHICS AND TRANSPARENCY
Leaders should demand highly ethical behavior from every member of the
organization and monitor stakeholder transactions and interactions to ensure
that it is achieved. They serve as role models of ethics and transparency and
ensure that expectations are explicit. Transparency requires consistent and
honest communications on the part of all leaders and managers. When an
organization is ethical and transparent, trust builds among all stakeholders.

DELIVERING VALUE AND RESULTS

Value must be produced and balanced across all stakeholders. There are often
conflicting goals and priorities, but the strategy should include ways to provide
value and meet stakeholder requirements. Performance metrics are focused on
critical results with a mix of financial, process, quality, customer satisfaction,
workforce engagement, and social impact.

DESCRIPTIONS ADAPTED FROM THE BALDRIGE EXCELLENCE FRAMEWORK

2018
 S e v en Cate g o r i e s
for the Performance
Excellence Framework
THE BALDRIGE MODEL CONSISTS
OF SEVEN CATEGORIES
These categories define an organization’s processes and the results it
achieves. All of the elements are interrelated, and excellence is
demonstrated through outstanding results.
The questions included in the Baldrige Criteria for Performance Excellence
change every couple of years as the organization studies and understanding
what high performing organizations are doing to achieve amazing results.
They verify those practices and then including them in updated versions of
the Criteria. That’s why the Baldrige Framework has become what’s now
considered the “leading edge of validated management practice.”
The Criteria form a set of best practices against which any organization can
gauge their performance, find weaknesses, maximize resources, see rapid
improvement and sustain results. The Framework is useful because it’s not a
guess or theory, but instead an evidence-based system that has been proven
to truly drive outcomes.

THE JOURNEY TOWARD PERFORMANCE EXCELLENCE

CATEGORY 1:
LEADERSHIP
T h e L e a d e rs h i p c a t e g ory a s k s how s e n i or l e a d e rs ’
a c t ion s g ui d e a nd s us t a i n t he org a n i za t i on . It
a d d re s s e s t h e org a ni za t ion ’s g ove rn a nc e s ys t e m
a n d how i t ful fi l l s it s l e g a l , e t h i c a l , a n d s oc ie t a l
re s p ons i bil i t ie s .
Q u es ti on s i n clu de:
H ow d o your s e n ior l e a d e rs l e a d t he
org a n i za t i on?
H ow d o you g ove rn your org a ni za t i on a nd
ful fil l your s oc i e t a l re s p on s i bi l i t i e s ?
CATEGORY 2:
STRATEGY
T h e St ra t e g y c a t e g ory c ove rs how t he
org a n i za t i on c ra ft s s t ra t e g i c obj e c t ive s a nd a c t i on
p l a n s , i m p l e m e nt s t h e m , re vi s e s t he m w he n
ne e d e d , a n d m e a s ure s p rog re s s .

Q u es ti on s i n clu de:
H ow d o you d e ve l op your s t ra t e g y?

H ow d o you im p l e m e nt your s t ra t e g y?
CATEGORY 3:
CUSTOMERS
T h e Cus t om e rs c a t e g ory d e a l s w i t h how a n
org a n i z a t i on e n g a g e s i t s c us t om e rs for l ong - t e rm
m a rk e t p l a c e s uc c e s s , i n c l ud in g how it
org a n i z a t i on l i s t e n s t o t h e voic e of t he c us t om e r,
s e rve s a n d e xc e e d s c us t om e rs ’ e xp e c t a t ions , a nd
bui l d s c us t om e r re l a t i on s hi p s .
Q u es ti on s i n clu de:

H ow d o you obt a i n i n form a t i on from your

c us t om e rs ?

H ow d o you e ng a g e c us t om e rs by s e rvi ng t he ir
n e e d s a nd bui l d in g re l a t i on s hi p s ?
CATEGORY 4:
MEASUREMENT, ANALYSIS, AND
KNOWLEDGE MANAGEMENT
T h e Me a s ure m e nt , Ana l ys i s , a nd K n ow l e d g e Ma n a g e m e nt
c a t e g ory a s k s h ow t he org a n iz a t i on s e l e c t s , g a t he rs ,
a n a l yz e s , m a na g e s , a n d i m p rove s i t s d a t a , i nform a t ion,
a n d k now l e d g e a s s e t s ; how i t us e s t h e s e fi nd i ng s t o
i m p rove i t s p e rform a n c e ; a n d how i t l e a rns .
Q u es ti on s i n clu de:
H ow d o you m e a s ure , a n a l yze , a nd t h e n i m p rove
org a n i za t i on a l p e rform a n c e ?
H ow d o you m a na g e your in form a t i on a nd your
org a n i za t i on a l k n ow l e d g e a s s e t s ?
CATEGORY 5:
WORKFORCE
T h e W ork forc e c a t e g ory i s a bout h ow t he org a ni za t ion
a s s e s s e s w ork forc e c a p a bi l it y a nd c a p a c it y n e e d s a nd
bui l d s a w ork forc e e n vi ronm e n t c on d uc i ve t o
p e rform a n c e e xc e l l e n c e . Th e c a t e g ory a l s o d e a l s w it h
h ow t he org a ni za t ion e ng a g e s , m a na g e s , a nd d e ve l op s
i t s w ork forc e t o ut i l i ze i t s ful l p ot e nt i a l i n a l i g nm e n t
w it h t h e org a n i za t i on’s ove ra l l n e e d s .
Q u es ti on s i n clu de:
H ow d o you bui l d a n e ffe c t i ve a n d s up p ort i ve
w ork forc e e n viron m e nt ?

H ow d o you e n g a g e your w ork forc e t o a c hi e ve a

hi g h - p e rform a n c e w ork e n vi ron m e n t ?
CATEGORY 6:
OPERATIONS
T h e O p e ra t i on s c a t e g ory a d d re s s e s how t he
org a n i z a t i on d e s i g n s , m a n a g e s , i m p rove s , a nd
i nn ova t e s i t s p rod uc t s a n d w ork p roc e s s e s a n d
i m p rove s op e ra t i on a l e ffe c t i ve n e s s t o d e l i ve r c us t om e r
va l ue a nd a c h i e ve ong oi n g org a ni za t iona l s uc c e s s .
Q u es ti on s i n clu de:
H ow d o you d e s ig n, m a n a g e , a n d i m p rove your k e y
p rod uc t s a n d w ork p roc e s s e s

H ow d o you e n s ure e ffe c t i ve m a n a g e m e n t of your

op e ra t i on s ?
CATEGORY 7:
RESULTS
T h e R e s ul t s c a t e g ory a s k s a bout t h e org a ni z a t ion’s
p e rform a n c e a n d i m p rove m e n t i n a l l c ri t ic a l a re a s — p rod uc t
a n d p roc e s s re s ul t s , c us t om e r re s ul t s , w ork forc e re s ul t s ,
l e a d e rs hi p a n d g ove rna nc e re s ul t s , a n d fi na nc ia l a nd m a rk e t
re s ul t s . T he c a t e g ory a s k s a bout p e rform a nc e l e ve l s re l a t i ve
t o t h os e of c om p e t i t ors a n d ot he r org a n i za t ions w i t h s im i l a r
p rod uc t offe ri n g s .
Q u es ti on s i n clu de:

Wh a t a re your p rod uc t p e rform a n c e a nd p roc e s s

e ffe c t i ve ne s s re s ul t s ?
Wh a t a re your c us t om e r- foc us e d p e rform a nc e re s ul t s ?
Wh a t a re your w ork forc e - foc us e d p e rform a n c e re s ul t s ?
Wh a t a re your s e n ior l e a d e rs h i p a n d g ove rna nc e re s ul t s ?
Wh a t a re your re s ul t s for fi na n c i a l vi a bil it y?
USING THE BALDRIGE FRAMEWORK TO ACHIEVE
PERFORMANCE EXCELLENCE
The Baldrige framework doesn’t tell leaders how to run their organizations. It is
intentionally non-prescriptive. The Framework doesn’t say that an organization must
use a business management model like Lean or Six Sigma to achieve performance
excellence.
The Framework becomes a benchmark against which organizations can gauge their
own operations. The assessment usually begins by appointing a “champion” for each
Category and then assembling Category teams to answer all of the related
questions. The NIST provides tools to help including a Self-Analysis Worksheet.

The Baldrige Framework is a valuable tool for driving organizations toward

excellence. By knowing where your organization sits regarding each of the
Categories and internalizing the principles of excellence, you’ll find opportunities for
improvement and growth. Organizations that embrace the criteria for performance
excellence and incorporate them into their operational practices can expect to
achieve results superior to their competitors.

THE JOURNEY TOWARD PERFORMANCE EXCELLENCE

A View Towards the Future

SUBTOPIC
CORE DEFINITION OF TQM
A core definition of total quality management (TQM) describes a management approach
to long-term success through customer satisfaction. In a TQM effort, all members of an
organization participate in improving processes, products, services, and the culture in
which they work.
The concept of “quality” has evolved to mean far more than the integrity of a
manufactured product. Quality now represents a philosophy, a system of methodologies
and practices, and an ongoing commitment to business excellence that encompasses all
issues – and engages all individuals – within an organization. This paper traces the
evolution of quality management, highlights some of the thought leaders who
contributed to the science and practice of quality, and identifies leading methodologies
in use today. Some of the misconceptions and mistakes leading to quality system
failures will be also be examined, along with emerging trends.

A VIEW TOWARDS THE FUTURE

Methods in Implementing Quality Improvement
• ISO – Guidance on use for process improvement and process capability determination.

• QFD – quality function deployment, also known as the House of Quality approach, that focuses
on customer wants or needs in the (re)design of a product or service.

• Kaizen – Japanese for change for the better; the common English term is continuous
improvement.

• Zero Defect Program – created by NEC Corporation of Japan, based upon statistical process
control and one of the inputs for the inventors of Six Sigma.

• Six Sigma – combines established methods such as statistical process control, design of
experiments and failure mode and effects analysis (FMEA) in an overall framework.

THE JOURNEY TOWARD PERFORMANCE EXCELLENCE

• PDCA – Shewhart/Deming's plan, do, check, act cycle for quality control purposes. Six Sigma's
DMAIC method (define, measure, analyze, improve, control) may be viewed as derivation of this.

• Taguchi methods — statistical oriented methods including quality robustness, quality loss
function, and target specifications.

• The Toyota Production System – reworked in the west into “Lean manufacturing”.

• TQM – total quality management is a strategy aimed at embedding awareness of quality in all
organizational processes. First promoted in Japan with the Deming prize, it has been adapted in the
U.S. as the Malcolm Baldrige National Quality Award and in Europe as the European Foundation for
Quality Management award (each with their own variations).

• BPR – business process reengineering, a management approach aiming at 'clean slate'

improvements (abandon existing practices).

THE JOURNEY TOWARD PERFORMANCE EXCELLENCE

THE KEY ELEMENTS OF TOTAL QUALITY
MANAGEMENT

1 2 3 4
Strategic, Customer Total Employee Continual
Systematic Focused Involvement Improvement
Approach to and
Leadership/ Empowerment
Management

THE JOURNEY TOWARD PERFORMANCE EXCELLENCE

Strategic, Systematic Approach to
Leadership/Management
A critical part of the management of quality is the strategic
and systematic approach to achieving an organization’s
vision, mission, and goals. This process, called strategic
planning or strategic management, includes the formulation
of a strategic plan that integrates quality as a core
component.

THE KEY ELEMENTS OF TOTAL QUALITY MANAGEMENT

 Customer - Focused
The customer ultimately determines the level of quality. No
matter what an organization does to foster quality
improvement—training employees, integrating quality into
the design process, or upgrading computers or software—
the customer determines whether the efforts were
worthwhile.

THE KEY ELEMENTS OF TOTAL QUALITY MANAGEMENT

Total Employee Involvement and
Empowerment
All employees participate in working toward common goals.
Total employee commitment can only be obtained after fear
has been driven from the workplace, when empowerment
has occurred, and when management has provided the
proper environment. High-performance work systems
integrate continuous improvement efforts with normal
business operations. Self-managed work teams are one
form of empowerment.
THE KEY ELEMENTS OF TOTAL QUALITY MANAGEMENT
Continual Improvement
A large aspect of TQM is continual process
improvement. Continual improvement drives an
organization to be both analytical and creative in finding
ways to become more competitive and more effective
at meeting stakeholder expectations.

THE KEY ELEMENTS OF TOTAL QUALITY MANAGEMENT

 4 TRENDS SHAPING
THE FUTURE OF TOTAL QUALITY
MANAGEMENT

TQM ENVIRONMENTAL
SUSTAINABILITY
EXPANDING ACCOUNTABILITY
BACKED BY STANDARDS BOUNDARIES
SIX SIGMA OF
TQM

THE JOURNEY TOWARD PERFORMANCE EXCELLENCE

 TQM Backed By Six Sigma
Although Six Sigma is a newer quality management concept than TQM, it
was never meant to replace it. Rather, the two strategies are
complementary. Whereas TQM focuses on internal departments and
customer satisfaction, the key goal of Six Sigma is to reduce the number of
defects.
Forward-thinking businesses are starting to implement both concepts into
their quality management approaches. Specifically, Six Sigma strategies
can be used to help businesses meet the “continuous improvement” goal of
TQM.
4 TRENDS SHAPING
THE FUTURE OF TOTAL QUALITY MANAGEMENT
Environmental Sustainability Standards
As environmental health continues to become a global concern, ISO has
developed new standards designed to help organizations manage their
environmental responsibilities. ISO 14001 specifies the requirements for an
environmental management system that an organization can use to enhance
its environmental performance.
The the intended outcomes of this environmental management system include:
Enhancement of environmental performance
Fulfilment of compliance obligations
Achievement of environmental objectives
Future revisions of ISO standards are expected to further emphasize the
importance of environmental sustainability within the scope of TQM.
4 TRENDS SHAPING
THE FUTURE OF TOTAL QUALITY MANAGEMENT
Expanding Boundaries of TQM
In the early years, TQM was only applied to manufacturing
operations. Today, it is implemented in a wide variety of non-
manufacturing organizations, and this number is only expected to
grow in the coming years and decades. From finance to healthcare
to education, processes founded upon quality management
concepts are starting to become the rule rather than the exception.

4 TRENDS SHAPING
THE FUTURE OF TOTAL QUALITY MANAGEMENT
 Accountability
One of the vital components of TQM is the idea that every
employee must be actively engaged in the effort to improve
quality. As new tools and technologies for tracking
employee performance become available, accountability will
become an increasingly important part of TQM. Every
employee must have a clear idea of their requirements and
expectations, in addition to the standards that will be used
to access their performance.
4 TRENDS SHAPING
THE FUTURE OF TOTAL QUALITY MANAGEMENT
Input from Quality Professionals on why QMS Initiatives
have Failed, including:
Lack
•• Lack of
ofVision
clarity in business objectives
No urgency for growth
• Lack proper understanding of customers and competition
Lack
•• Lack of
ofManagement Support
understanding/interest in quality concepts within the organization
Lack
•• Weak of interest/commitment
management and from
leadership top management
Failure to allocate proper resources
Incorrect timing
• Implementation of a QMS without building the quality culture
Incorrect approach
• Not properly understanding customer demands
Lack of
•• Failure review
to define& recognition
objectives mechanisms
that link QMS strategically with business goals
Failure to train the improvement team
• QMS stakeholders (employees, customers, suppliers) not fully engaged
A VIEW TOWARDS THE FUTURE
 THE FUTURE OF QUALITY
MANAGEMENT
W. Edwards Deming proposed that an organization’s commitment to quality signaled its intent to stay in
business. At the 2010 Global Forum on ISO Updates, a new category of standards for Social Responsibility
and sustainability were introduced as well as increased sectoral standards for local governments, oil and
gas, education. With healthcare reform’s call for bundled services, accountable care and pay for
performance, quality management is rapidly becoming as firmly entrenched in the culture of service
organizations as it has been in manufacturing. And the healthcare industry’s need is fueling the growth of
integrated quality management systems (IMS) to find the correct balance between quality, risk,
environmental and social responsibility costs and efficiencies. Moreover, the lightning speed at which
technology is changing products, services and delivery methods requires large organizations to be ever
more adaptable and agile.The challenge for quality managers moving into the future is largely about allowing
for change in a field that relies on constants. While so much attention today is paid to the bottom line,
quality has a profound impact on the top line as well –remaining fluid to recognize, respond to and anticipate
customer wants and needs to drive satisfaction and loyalty – a focus that grounds the future firmly in the
concepts taught by the original quality leaders over 60 years ago.
“CHANGE AND INNOVATION ARE AS MUCH ATTRIBUTES OF
QUALITY AND HOW WE MANAGE QUALITY AS THEY ARE OF
THE PRODUCTS, PROCESSES, AND SERVICES THAT ARE
PRODUCED AND DELIVERED.”
– A.V. Feigenbaum
BOY / A.DELA CRUZ / MUTAS / NARCISO / PARNONCILLON, YAGONIA
BSMA 2B