Quality, Strategy & IT

1. Quality, Strategy & IT

2. Malcolm Baldrige Award • Created in 1987 by US Congress • Purpose – to recognize importance of quality and performance to competitiveness • Given annually in 7 areas • manufacturing, service, small business, education, health care and nonprofit

3. Performance Excellence Criteria • Leadership —how senior executives guide the organization and how the organization addresses its responsibilities to the public and practices good citizenship. • Strategic planning—how the organization sets strategic directions and how it determines key action plans. • Customer and market focus—how the organization determines requirements and expectations of customers and markets; builds relationships with customers; and acquires, satisfies, and retains customers. • Measurement, analysis, and knowledge management—the management, effective use, analysis, and improvement of data and information to support key organization processes and the organization’s performance management system. • Workforce focus—how the organization enables its workforce to develop its full potential and how the workforce is aligned with the organization’s objectives. • Process management—aspects of how key production/delivery and support processes are designed, managed, and improved. • Results —the organization’s performance and improvement in its key business areas and how the organization performs relative to competitors. (Source: http://www.nist.gov/public_affairs/factsheet/baldfaqs.htm)

4. ISO 9000 • ISO 9000 is a series of five international standards published in 1987 by the International Organization for Standardization (ISO), Geneva, Switzerland. • 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.

5. Deming Award • The Deming Application Prize is awarded to organization by the Union of Japanese Scientists and Engineers (JUSE) • It was established in 1951 in commemoration of the late Dr. William Edwards Deming who contributed greatly to Japan's proliferation of statistical quality control after the World War II. • Cyclical four stage improvement process: Plan - Do - Study - Act. The process is promotes continual improvement.

6. Balanced Scorecard • The Balanced Scorecard (BSC) is a performance management tool which began as a concept for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy. • Four perspectives: Financial, Customer, Internal Business Processes and Learning and Growth

7. Finance(but these lag) Cash flow Return on investment Financial returns Return on capital employed Customer Customer retention Customer satisfaction Delivery performance Market Share Internal Bus Process Number of Activities per process Accident ratio Process Bottlenecks Learning & Growth Turnover Internal promotions % Gender ratios Training/learning opportunities Source: http://www.businessballs.com/balanced_scorecard.htm Key Performance Indicators