MinutesoftheMalcolmBaldrigeNationalQualityAwardBoardofOverseers/Judges'PanelMeeting

BaldrigePerformanceExcellenceProgram•NationalInstituteofStandardsandTechnologyJune13,2013•AdministrationBuilding,LectureRoomA

Attendees

Overseers:BryanBushick,RobertHagans,WarrenHarris,TerryHolliday,BrianLassiter,StephenPerry,LizaNickersonSeltzer,RulonF.Stacey(chair),MaxSummers,PaulWestbrook.Notattending:GailL.Hendrickson,StephenPerry,MargaretTownsend

Judges:JackieR.Beede,KathleenBergeson,DianeBosworth,JohnJasinski(chair),DonaldLighter,PaigeLillard,GeraldineMarkley,SharonMuret-Wagstaff,MichaelR.Sather,SunilK.Sinha,JohnSwaim,RogerM.Triplett

NIST:Jamie Ambrosi,DawnBailey,SandraByrne,RobertFangmeyer,EllenGarshick,ElifKarakas,ReneeNorris,PhillipSingerman,SuzanneSullivan,BarbaraUglik,NancyYoung

U.S.DepartmentofCommerce:EricOsterman,OfficeoftheGeneralCounsel

RulonStaceycalledthemeetingtoorder at8:15a.m.Hewelcomedthejudges,overseers,andNISTstaff.TheminutesfromtheDecember2012meeting wereunanimouslyapproved.

NISTAssociateDirectorforInnovationandIndustryServices PhillipSingermanwelcomed thejudgesandoverseersandthankedthemfortheirserviceandcommitment.Singermanprovidedanupdate ontheprocessforhiringanewBaldrigeProgramDirector,notingthatitisaSeniorExecutive Serviceposition.

ProgramUpdate

Tosetthecontextforthemeeting,ActingProgramDirectorRobertFangmeyerreviewedthechangesintheBaldrigeProgramresultingfromthelossoffederalfundinginFY2012andtheneedtorecovercoststhroughnewandexisting revenue streams.Changesincludeddevelopingandimplementinganewbusiness model,creatinganewbusinessplan,buildingcapabilityand capacityinnewproductandserviceofferings,co­leadingBaldrigeEnterprisedevelopmentandimplementation,andreorganizingagreatlyreducedworkforce.

Fangmeyersaidthattheprogram's currentfocusisonrebalancingeffortsfromaprimaryfocusontheBaldrigeAwardtowarddiverseproductsand services thathelporganizationsimprovetheirperformance.

2013Events

Fangmeyerreviewedrecenteventsheldbytheprogram.InApril,theprogramculminatedits25thanniversaryyearwithagalathatincludedavideofromPresidentBillClinton.TheprogramalsoreceivedlettersfromformerPresidentGeorgeH.W.BushandtheRonaldReaganPresidentialLibraryandMuseum,as wellaslettersfromperformanceexcellenceprogramsaroundtheworld.Atthe2012BaldrigeAwardCeremony,ActingSecretaryofCommerceRebecca Blankrecognizedfourawardrecipients.Theceremony alsoincludedavideomessagefromPresidentBarackObama.

The25thAnnualQuestforExcellenceConferenceincludedthesharingofbestpracticesbyabout20formerrecipients, thefournewrecipients,andaplenarysessionwithinternationalguestsrepresentingaward recipientorganizationsfromamongthemembersoftheGlobalExcellenceModel(GEM)Council.

BaldrigeEnterprise

FangmeyerreviewedthegoalsandprogressofeachEnterprisesubteam:theEnterpriseIntegrationTeam;theAwardProcessStandardizationTeam;theCriteriaSalesTeam;theIntegratedExaminerTrainingTeam;andtheMarketing,Promotions,andCommunicationsTeam.

ThejudgesandoverseersdiscussedtheadvantagesandchallengesoftheIntegratedExaminerTrainingTeam'sgoalofmovingexaminertrainingtoorsupplementingitwithintegratedstateorregionalofferings.BrianLassiter,chairoftheAllianceforPerformanceExcellence,saidthattheEnterpriseisdeterminingtheintersectionsbetweenthenationalprogramandtheindependent,diverseAllianceprogramsthatwillgrowrevenueandshareexpenses.Henotedthatthisconceptisembeddedintheworkofthesubteams,withstandardsfortop-tierawardsatBaldrige-basedprogramsasafirststep.

FangmeyersaideachEnterprisepartnerisindividuallyundertakingamajortransformation:(1)theBaldrigeProgrammustcontinuetoimplementthenewbusinessmodeltoremainsustainable;(2)theFoundation mustbecomeafundraisingbodyratherthanamanagerofanendowment;and(3)thestateandlocalawardprogramsareinthemidstofsignificantconsolidation.FortheEnterpriseto succeed,alloftheseentitiesmuststrengthenthemselvesthroughthesetransformations.

BusinessPlanandProgramFunding

FangmeyersaidthattheprogramhasexceededexpectationsinbeinggoodstewardsoftheFoundation'sgiftbycontrollingcostsandsuccessfullybringingonlinenewrevenuesources.Hedetailedtheprogram's operatingincomesources:awardprocessfees,sponsorshipandexhibitfees,Criteriasalesfees,ExaminerTrainingfees,andBaldrigeExecutiveFellowsProgramfees.

Fangmeyerthencommentedoneachrevenuesourceandnotedperformanceagainstprojections.Ofnote,revenuefromsalesofthe 2013-2014CriteriaforPerformanceExcellencehasbeennegativelyaffectedbycontinueduseofthe2011-2012Criteria,whicharestillavailablefreeofcharge,andthefactthatcustomersmay besharingdownloadsofthenewCriteria.

FangmeyersaidthattheBaldrigeExecutiveFellows Program, nowinitsthirdyear, continuestobeagreatsuccess,withexcellentreviewsbyparticipants.CurrentoverseerandformerBaldrigeFellowRobHagansagreed.Fangmeyernotedthattheprogram'sintention,inpart,istoengagemanufacturingorganizationswithBaldrige.FangmeyeraskedtheoverseersandjudgesforsuggestionsforFellows,specificallymanufacturingexecutivevicepresidentsorthoseinhigherpositions.AFellowsscholarshipisavailabletoK-12seniorleaders.

FangmeyerdescribedtheBaldrigeCollaborativeAssessment.Hesaidthat,afterthreepilotassessments,theprogramcurrentlyhasthecapacityforuptoeightassessmentsperyearandaskedthejudgesandoverseersforrecommendationson potentialclientsforsuchanassessment.HealsosaidthattheBaldrigeCollaborativeAssessmentopensupopportunitiesforstateprogramsandconsultantstoprovide ancillaryservices.Ataskgroupconsistingof Baldrigestaffmembers,state programdirectors,andBaldrige-basedconsultantshas begunmeetingto establishacontinuumof offerings.

TerryHollidaynotedthatleadersmightbecomeFellowsandthenbringtheirorganizationsbackforaBaldrigeCollaborativeAssessment.Staceycommentedthatthisassessmentmayholdsome promiseforBaldrigeAwardrecipients,notingthathisorganizationmighthavebenefitedfromsuchanassessmentintheyearsfollowingreceiptoftheaward.PaulWestbrooksaidthat,forhealth careorganizations,thecost

oftheBaldrigeCollaborativeAssessmentisnothigh.Hesuggestedhighlightingtheoutcomes,features,andbenefitsoftheassessmentforeachsector.

BaldrigeFoundationFundraisingUpdate

FangmeyernotedthattheBaldrigeProgram,asafederalentity,isnotallowedtoparticipateinactualfundraising.TheBaldrigeFoundation, whichdoescollectfunds,isindependentoftheprogram;thishelpstoprotecttheintegrityoftheBaldrigeProgramandBaldrigeAwardprocess.

FangmeyerreportedthattheFoundation'scontractwiththefundraisingconsultancyfirmCCS hasended.TheFoundationhasestablishedanOfficeofDevelopment,hashiredKellieGlennas majorgiftsdirector,andwillhireanassociatedirectorofresearchandprospectmanagementbyJuly1.MaryannBrennanservesaschiefofstafftoGeorgeBenson,andThomasSchambergercontinuesintheroleofexecutive

director.Otheractivitiesarethepreparationofmarketingmaterials,thecaseforsupport,andaboard retreatfocusedonmembers'roleinfundraising.

Staceynotedthattheoverseersmayhavearoleinfundraising,butthattheyalsoneedtoraiseawarenessoftheprogramsothatwhendonationsarerequested,the valueoftheprogramisclear.

EthicsReview

EricOsterman,OfficeoftheGeneralCounsel,DepartmentofCommerce,deliveredtheannualethics reviewrequiredforthejudgesandoverseers.

ApplicantsandEligibility

FangmeyerreviewedchangesinBaldrigeAward eligibilityrulesin2012andfeesin2013.Therulechangesrequiredmostorganizationstoreceivethetop-tieraward fromastateBaldrige-basedprogrambeforeapplyingforthenationalaward,andin2013fees doubledformostorganizations.Theresultwas39applicantsin2012,asplanned,withapplicantsinallsixeligibilitycategories,and22applicantsin2013,withnoapplicantsinthemanufacturing,service,orsmall businesscategories.

Fangmeyersaidthataslightdecreasewasanticipated,asawardwinnerscannotimmediatelyreapply,otherapplicantstakeayearofftoimplementtherecommendationsinthefeedback,andothersdonotapplyinthefirst yearofaneweditionoftheCriteriaforPerformanceExcellence.Customersurveydataandpersonalphonecallsto eachofthenonreturningorganizationsconfirmedthesereasons,alongwiththeincreaseinfees.Basedonthose conversations,theprogramexpectsanincreaseinapplicationsfor2014.

Thejudgesandoverseersdiscussedtheseand otherfactorsthatmayaffectthenumberofawardapplicationsinthe future.Theseincludedvariabilityinstateprograms,thefactthatsomestate winnersdonotapplyfortheBaldrigeAward,thepossibilitythatcurrenteligibilityrules mayexcludetoomanyorganizations,theneedtoreach outsidethecurrentcommunitytoattractneworganizationstoBaldrige,andthefactthatsomeorganizationsmay resist goingto astateprogramfirst.

Afterdiscussion, thejudgesandoverseerssuggestedthattheprogramconsiderredesigningtheeligibilityfilter toensurethattherightorganizationsareapplyingandincreasethenumberofeligibleorganizations.

DonaldLightermovedthattheprogrameliminatetherestrictiononthenumberofsubunitsfromagivenorganizationthatcanapplyfortheawardinagivenyear.MichaelSathersecondedthemotion,whichwascarriedunanimously.

Thejudgesandoverseersalsosuggestedthattheprogram,workingwithataskforceconsistingofKathleenBergeson,BrianLassiter,GeriMarkley,andLizaSeltzer,createaproposalforopeningadditionalpathwaystoBaldrigeAwardeligibilitywhileretainingthepathwaythroughthestateprograms.Theoverseerswillconsiderthisproposalatavirtualmeetingheldintimefortheprogramtoincorporateanynewrulesintothe2014awardprocess.

IssuesfromtheJune12Judges'PanelMeeting

Jasinskireviewedimprovementstothejudgingprocessarisingfromtheprevious day'smeeting.Themeetingwasadjournedat1:30p.m.

18 July 2013

Date