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Return on “Investing in Quality”

Return on “Investing in Quality”. Problem – Data and evidence are available that using the Baldrige Criteria and investing in Quality improves the performance of organizations, but apparently these data are not compelling! Objective

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Return on “Investing in Quality”

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  1. Return on “Investing in Quality” Problem – Data and evidence are available that using the Baldrige Criteria and investing in Quality improves the performance of organizations, but apparently these data are not compelling! Objective – To develop compelling “Return on Investment” evidence that demonstrate that investment in “Quality” and using the Malcolm Baldrige Criteria is worthwhile

  2. Pearl River

  3. Pearl RiverSchool District School Reform MissionMore Effective Schools 1989 1992 NYS Governor’s Excelsior Award Excelsior Award WinnerPalisades Institute Award Winner 1994 1995 Baldrige Education Pilot 1997 USA Today/RIT Quality Cup 1999 Baldrige Applicant 2000 Baldrige Applicant 2001

  4. Pearl RiverSchool District Student Achievement, Market Share, Stakeholder Satisfaction 95% 93% 90% 85% 75% 71% 63% 65% 55% 55% 45% 42% 35% 1991 2004 Regents Diploma Rate Market Share Budget Vote Plurality

  5. Pearl RiverSchool District Cost Efficiency Annual Per Pupil Expenditure vs. Consumer Price Index RESULTS

  6. Chugach

  7. High School Graduation Qualifying Exam 2000 Chugach vs Comparable Districts 90% 80% 70% Sophomores Who Passed 60% Reading Writing Math 50% 40% 30% 20% 10% 0% * * Chugach Wrangell Haines Lower Yupiit Yukon * Benchmark

  8. Consolidated District 15 Fast Facts • Our 20 schools: • 15 elementary, 4 junior high, 1 alternative school • Our enrollment: • 12,956 students • 37.5% minority • 24.0% low-income • 32.0% limited English proficiency

  9. Lessons Learned Ç Good 100% target State Top 3%

  10. Results Ç Good 90% target

  11. Measurement/Results

  12. Pal’s Fast Food

  13. Pal’s Fast Food - Customer Counts Customers Pals Best Competitor 1996 1997 1998 1999 2000 2001 Higher is Better

  14. Pal’s Fast Food Complaintsper 1000 Customers Pal's Best Competitor 1995 1996 1997 1998 1999 2000 2001 Lower is Better 14

  15. Boeing

  16. After Baldrige Before Baldrige C-17 Earnings Performance 1994 1995 1996 1997 1998 $ in Millions 1992 1993 PLAN ACTUALS

  17. Cost Of Quality ($M/unit) RONA ROS It appears to correlate! WHAT’S THE CORRELATION? 7 600 6 550 500 5 25 450 400 4 20 300 3 15 Assessment Score 200 2 10 1 5 0 0 1992 1993 1994 1995 1996 1997 1998 1999

  18. Boeing Aerospace Support’sRevenue Performance Started Baldrige 2000 2001 2002 2003 PLAN ACTUALS AVG GROWTH

  19. Boeing Aerospace Support’sEarnings Performance Started Baldrige 2000 2001 2002 2003 PLAN ACTUALS

  20. Boeing Aerospace Support’s employees are more motivated Started Baldrige 66 ESI 62 EI 50% 58 54 50 2003 2001 2002 1999 2000

  21. Baldrige Stock Index

  22. THE BALDRIGE STOCK INDEX 600 500 400 Percent Return On Shareholder Investment Award Recipients 300 S&P 500 200 100 0 All Recipients 1991-01 Whole Company Sites Visited 1991-01 Recipients 1991-01 Baldrige Index Outperforms S&P 500 by 2.94 to 1 for the Same Period

  23. Georgia Tech Study

  24. GEORGIA TECH STUDY ON USE OF MB Percentage Change Performance Measures

  25. So let’s Brainstorm on what else we can try!

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