Chapter 1: Understanding the Malcolm Baldrige National Quality Award

OVERVIEW

The Malcolm Baldrige Award is the highest honor any business can receive, and after 15 years has remained very difficult to win. As the criteria have changed over the years, the Baldrige has become an award for overall effectiveness of an organization, as opposed to an organization that simply has high quality products/services. The Baldrige process allows winners and nonwinners alike to receive feedback on how well they meet the criteria. The overall purpose of the Baldrige Award application and award process is to strengthen the competitiveness of U.S. companies. According to the 2003 criteria booklet, the award process plays three additional roles:

• To help improve organizational performance practices, capabilities, and results.

• To facilitate communication and sharing of best practices information among U.S. organizations of all types.

• To serve as a working tool for understanding and managing performance, for guiding planning, and opportunities for learning. (p. 1)

The dual goals of the Baldrige criteria are to improve value to customers, which results in marketplace success, and to improve overall financial and company performance to meet the needs of shareholders, owner, and other stakeholders. Baldrige winners have shown that it is not necessary to trade off financial results for satisfied employees or customers. Baldrige winners have demonstrated that they can achieve exemplary financial results, delight their customers, and provide their employees with a good work environment. This balance is what the 2003 Baldrige criteria are all about.

The 2003 Baldrige criteria are slightly different from earlier versions of the criteria.