2019-2020 Baldrige Excellence Framework Business-Nonprofit Examiner Use Only

What People Are Saying
I have always envisioned

Stellar to be a company that
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The ratio of the Baldrige Program’s benefits
how we can ensure that we are
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2019–2020 Baldrige Excellence Framework

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Baldrige Award
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Celeste Ford
CEO and Founder
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BALDRIGE
Palo Alto, CA
EXCELLENCE
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role models. Baldrige Award recipient
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FRAMEWORK
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2010–2018 award applicants represent
We believe that government
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Darin Atteberry
services in 2018.
City Manager LEADERSHIP
City of Fort Collins
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State Baldrige-based examiners Baldrige Award recipient
volunteered around $29 million in CUSTOMERS
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Baldrige Performance Excellence Program
The Malcolm Baldrige
Created by Congress in 1987, the Baldrige Program is National Quality Award
Baldrige Performance Excellence Program managed by the National Institute of Standards and
Technology (NIST), an agency of the U.S. Department
www.nist.gov/baldrige/baldrige-award
National Institute of Standards and Technology (NIST) • United States Department of Commerce
of Commerce. This unique public-private partnership
is dedicated to helping organizations improve their The Malcolm Baldrige National Quality Award, created
performance and succeed in the global marketplace. by Public Law 100-107 in 1987, is the highest level of
The program administers the Presidential Malcolm national recognition for performance excellence that
Baldrige National Quality Award. In collaboration a U.S. organization can receive. The award promotes
with the greater Baldrige community, we address
critical national needs through • awareness of performance excellence as an
January 2019 increasingly important element in U.S.
• a systems approach to achieving organizational
competitiveness and
excellence;
To order copies of this publication or obtain other Baldrige Program products and services, contact
• organizational self-assessment tools and analysis • the sharing of successful performance strategies
Baldrige Performance Excellence Program of organizational strengths and opportunities for and information on the benefits of using
Administration Building, Room A600, 100 Bureau Drive, Stop 1020, Gaithersburg, MD 20899-1020 improvement by a team of trained experts; these strategies.
www.nist.gov/baldrige | 301.975.2036 | [email protected] • training, executive education, conferences, and
workshops on proven best management practices The President of the United States traditionally
and on using the Baldrige Excellence Framework presents the award. A 22-karat, gold-plated medallion
The Baldrige Program welcomes your comments on the Baldrige Excellence Framework and other Baldrige products and to improve; and that bears the name of the award and “The Quest for
services. Please direct your comments to the address above. Excellence” on one side and the Presidential Seal on
• Baldrige-based approaches to cybersecurity risk the other.
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The Baldrige Excellence Framework® is an official publication of NIST under the authority of the Malcolm Baldrige National Quality management and community excellence.
knockout for glue .4375 for .1875 spine

Improvement Act of 1987 (Public Law 100-107; codified at 15 U.S.C. § 3711a). This publication is a work of the U.S. Government and Organizations apply for the award in one of six
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is not subject to copyright protection in the United States under Section 105 of Title 17 of the United States Code. The U.S. Department eligibility categories: manufacturing, service, small
of Commerce, as represented by NIST, holds copyright to the publication in all countries outside of the United States. business, education, health care, and nonprofit.
Foundation for the Malcolm Baldrige
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Up to 18 awards may be given annually across
BALDRIGE EXCELLENCE FRAMEWORK®, BALDRIGE CRITERIA FOR PERFORMANCE EXCELLENCE®, BALDRIGE PERFORMANCE National Quality Award the six categories.
EXCELLENCE PROGRAM®, BALDRIGE COLLABORATIVE ASSESSMENT®, BALDRIGE EXAMINER®, BALDRIGE EXCELLENCE BUILDER®,
PERFORMANCE EXCELLENCE®, THE QUEST FOR EXCELLENCE®, and the MALCOLM BALDRIGE NATIONAL QUALITY AWARD® medal The mission of the Baldrige Foundation is to ensure
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and depictions or representations thereof are federally registered trademarks and service marks of the U.S. Department of Commerce,
National Institute of Standards and Technology. The unauthorized use of these trademarks and service marks is prohibited.
the long-term financial growth and viability of the
Baldrige Performance Excellence Program and to support The Annual Quest for
organizational performance excellence in the United States
Excellence Conference
®
NIST, an agency of the U.S. Department of Commerce, manages the Baldrige Program. NIST has a 100-plus-year track record of and throughout the world. To learn more about the Baldrige
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serving U.S. industry, science, and the public with the mission to promote U.S. innovation and industrial competitiveness by advancing Foundation, see www.baldrigefoundation.org. Official conference of the Malcolm Baldrige National Quality Award
measurement science, standards, and technology in ways that enhance economic security and improve our quality of life. NIST carries
out its mission in three cooperative programs, including the Baldrige Program. The other two are the NIST laboratories, conducting www.nist.gov/baldrige/qe
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research that advances the nation’s technology infrastructure and is needed by U.S. industry to continually improve products and
services; and the Hollings Manufacturing Extension Partnership, a nationwide network of local centers offering technical and Alliance for Performance Excellence Gaylord National Harbor
business assistance to small manufacturers.
The Alliance (www.baldrigealliance.org) is a national National Harbor, Maryland (near Washington, D.C.)
in
network of Baldrige-based organizations and supporting

Suggested citation: Baldrige Performance Excellence Program. 2019. 2019–2020 Baldrige Excellence Framework: Proven Leadership
members with a mission to grow performance excellence
April 7–10, 2019
and Management Practices for High Performance. Gaithersburg, MD: U.S. Department of Commerce, National Institute of Standards
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and Technology. https://www.nist.gov/baldrige. in support of a thriving Baldrige community. Members March 24–27, 2020
contribute nearly 300,000 volunteer hours and more than April 11–14, 2021
$30 million per year in tools, resources, and expertise
to assist organizations on their journeys to excellence. Each year at The Quest for Excellence Conference,
The Baldrige Program thanks the Baldrige Foundation for supporting the program’s mission This includes annually evaluating and recognizing over
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and the following organizations for supporting the publication of this booklet. Baldrige Award recipients share their exceptional
1,000 organizations that use the Baldrige Excellence
performance practices with leaders of business,
Framework and serving as the feeder system for the
national Baldrige Award. education, health care, and nonprofit organizations
and inspire attendees to apply the insights they
gain within their own organizations.
American Society for Quality Plan to attend and learn about the recipients’ best
The American Society for Quality (ASQ; https://asq.org) management practices, participate in educational
assists in administering the award program under contract presentations on the Baldrige Excellence Framework,
to NIST. ASQ’s vision is to make quality a global priority, an and network with Baldrige Award recipients and
organizational imperative, and a personal ethic and, in the other attendees.
process, to become the community for all who seek quality
concepts, technology, or tools to improve themselves and
their world.
For more information:

www.nist.gov/baldrige | 301.975.2036 | [email protected]
Contents
ii About the Baldrige Excellence Framework
The Baldrige framework empowers your organization to reach its goals, improve results, and become more
competitive. The framework consists of the Criteria, the core values and concepts, and the scoring guidelines.
v How to Use the Baldrige Excellence Framework

You can use this booklet as a reference, for self-assessment, or as the basis of an external assessment.
1 Criteria for Performance Excellence Overview and Structure

The Criteria include the Organizational Profile and seven interconnected categories.
3 Criteria for Performance Excellence Items and Point Values

4 Criteria for Performance Excellence
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4 Organizational Profile
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7 1 Leadership
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10 2 Strategy
13 3 Customers
15 4 Measurement, Analysis, and Knowledge Management
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18 5 Workforce
21 6 Operations
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24 7 Results
29 Scoring System
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Performance against Criteria items is scored on two evaluation dimensions: process and results.
32 Process Scoring Guidelines
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33 Results Scoring Guidelines

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35 How to Respond to the Criteria

This section explains how to respond most effectively to the Criteria item questions.
38 Core Values and Concepts

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These embedded beliefs and behaviors form the foundation of the Criteria.
44 Changes from the 2017–2018 Baldrige Excellence Framework

46 Glossary of Key Terms
The glossary includes definitions of terms in SMALL CAPS in the Criteria and scoring guidelines.
54 Index of Key Terms

58 List of Contributors
On the Web
Criteria Commentary (https://www.nist.gov/baldrige/baldrige-criteria-commentary)
This commentary provides the “why” behind the Criteria, as well as additional examples and guidance.
i
About the Baldrige Excellence Framework
The Baldrige Excellence Framework empowers your organization to reach its goals, improve
results, and become more competitive.
Thousands of organizations around the world use the Baldrige Excellence Framework to improve and get sustainable
results. Those recognized as national role models receive the Malcolm Baldrige National Quality Award, a Presidential
award. More than 100 recipients have broadly shared their best practices with others. Through that sharing, many
thousands of organizations have improved their operations and results, and thus their contributions to the U.S. and
global economies.
What can Baldrige do for my organization?

Whether your organization is new, is growing, or has existed for many years, it faces daily and long-term challenges. It
also has strengths that have served you well so far. The Baldrige Excellence Framework helps you identify and leverage
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your strengths and prepare to face your challenges. It helps you address issues that are important to your organization:
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• Understanding what it takes to be competitive and achieve long-term success in your environment
• Getting your leaders, managers, and workforce all on the same page
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• Ensuring that your employees understand and can contribute to the drivers of your organization’s success
• Understanding, and meeting or exceeding, customer requirements and expectations
•
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Ensuring that your operations are efficient and lead to short- and long-term success
As a result, you will be better able to position your organization to succeed and accomplish your mission—with a
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sense of greater clarity and with alignment among your leaders, employees, customers, and key partners.
How do I know if Baldrige is right for my organization?

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Baldrige is adaptable to any organization’s needs. It does not prescribe how you should structure your organization or
its operations. In the Organizational Profile (pages 4–6), you describe what is important to your organization. Baldrige
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encourages you to use creative, adaptive, innovative, and flexible approaches and to choose the tools (e.g., Lean,
Six Sigma, International Organization for Standardization [ISO] series, a balanced scorecard, Plan-Do-Check-Act
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[PDCA]) that are best suited to your organization and are the most effective in driving improvements and sustainable
high performance
How does Baldrige work?

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The Baldrige framework helps you answer three questions: Is your organization doing as well as it needs to? How do you
know? What and how should your organization improve or change?
The Baldrige framework helps you manage all the components of your organization as a unified whole to achieve
your mission, ongoing success, and performance excellence (called a systems perspective). The building blocks and
integrating mechanisms are the Baldrige core values and concepts, the seven interrelated Criteria categories, and the
scoring guidelines.
I see the Baldrige process as a powerful set of mechanisms for disciplined people
engaged in disciplined thought and taking disciplined action to create great
organizations that produce exceptional results.
—Jim Collins, author of Good to Great: Why Some Companies Make the Leap . . .
and Others Don’t
ii 2019–2020 Baldrige Excellence Framework

Core values and concepts. The Criteria for Performance Excellence are based on a set of beliefs and behaviors found
in high-performing organizations (see pages 38–43):
• Systems perspective
• Visionary leadership
• Customer-focused excellence
• Valuing people
• Organizational learning and agility
• Focus on success
• Managing for innovation
• Management by fact
• Societal contributions
• Ethics and transparency
• Delivering value and results
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Criteria for Performance Excellence. By answering the questions in the Criteria for Performance Excellence
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(pages 4–28), you explore your strengths and your opportunities for improvement in seven critical aspects of managing
and performing as an organization (called categories):
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1. Leadership: How do you share your vision and lead your organization? How do you ensure good governance?
2. Strategy: How do you prepare for the future?
3.
4.
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Customers: How do you listen to, satisfy, and engage your customers?
Measurement, analysis, and knowledge management: How do you use reliable data and information to
make decisions?
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5. Workforce: How do you engage and empower your people?
6. Operations: How do you ensure efficient and effective operations that deliver customer value?
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7. Results: How well are you doing?

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The linkages among these categories provide a systems perspective on your organization. Some of these linkages
are (1) the connections between your approaches in categories 1–6 and the results you achieve (category 7); (2) the
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connection between workforce planning and strategic planning; and (3) the need for customer and market knowledge
in creating your strategy and action plans.
Scoring guidelines. With Baldrige, just having stated processes or sets of results is not enough. You can assess the
maturity of your responses based on four evaluation dimensions for the process categories and four for the results
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category (see the scoring guidelines on pages 32–33).

Processes are the methods your organization uses to accomplish its work. With the Baldrige framework, you assess and
improve your processes along four dimensions:
1. Approach: How do you accomplish your organization’s work? How systematic and effective are your key
approaches?
2. Deployment: How consistently are your key approaches used in relevant parts of your organization?
3. Learning: How well have you evaluated and improved your key approaches? How well have improvements been
shared within your organization? Has new knowledge led to innovation?
4. Integration: How well do your approaches reflect your current and future organizational needs? How well are
processes and operations harmonized across your organization to achieve key organization-wide goals?
About the Baldrige Excellence Framework iii

With Baldrige, you assess your results along these four dimensions:
1. Levels: What is your current performance on a meaningful measurement scale?
2. Trends: Are the results improving, staying the same, or getting worse?
3. Comparisons: How does your performance compare with that of competitors, or with benchmarks or
industry leaders?
4. Integration: Are you tracking results that are important to your organization? Are you using the results in
decision making?
As you respond to the Criteria questions and assess your responses against the scoring guidelines, you will begin
to identify strengths and gaps—first within the Criteria categories and then among them. The coordination of key
processes, and feedback between your processes and your results, will lead to cycles of improvement. As you continue
to use the framework, you will learn more and more about your organization and begin to define the best ways to
build on your strengths, close gaps, and innovate.
What is the impact of Baldrige nationally and globally?

The Baldrige framework and Criteria play three roles in strengthening U.S. competitiveness:
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• They help improve organizational processes, capabilities, and results.
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• They facilitate the communication and sharing of best practices among U.S. organizations through the
Baldrige Award, the Quest for Excellence® Conference, the Baldrige Executive Fellows Program, and other
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educational offerings.
• They serve as a working tool for understanding and managing organizational performance, guiding your strategic
thinking, and providing opportunities to learn. se
Baldrige works with public and private sector partners to address critical national needs related to long-term success
and sustainability, including cybersecurity risk management (see https://www.nist.gov/baldrige/products-services
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/baldrige-cybersecurity-initiative) and excellence in U.S. communities (see Communities of Excellence 2026,
http://www.communitiesofexcellence2026.org).
Within the United States, state, regional, sector, and organizational performance excellence programs use the Baldrige
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framework to help organizations improve their competitiveness and results. Globally, many performance or business
excellence programs use the Baldrige framework or a derivative as their organizational excellence model.
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How do I get started?

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However you plan use the Baldrige framework, the Baldrige community is there to help your organization learn, grow,
and improve. See the following pages and visit https://www.nist.gov/baldrige to see the possibilities.
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The [Baldrige] Criteria help you link your strategy, your human capital process, your
leadership development process, and all of your core operations together and help them
focus on what your customers actually want.
—Scott McIntyre, President and CEO, Managing Partner, Guidehouse (formerly Baldrige Award
recipient PricewaterhouseCoopers Public Sector Practice)
iv 2019–2020 Baldrige Excellence Framework

How to Use the Baldrige Excellence Framework
Whether your organization is large or small, you can use the Baldrige Excellence Framework for
improvement. Your experience with Baldrige will help you decide where to begin.
If your organization is in the education or health care sector, you should use the education or health care version
of this booklet, respectively. See https://www.nist.gov/baldrige/publications to obtain a copy.
If you are just learning about the Baldrige framework . . .

Here are some ways to begin using the Baldrige framework to improve your organization.
Scan the questions in the Organizational Profile (pages 4–6). Discussing the answers to these questions with your
senior leadership team might be your first Baldrige self-assessment.
Study the 11 Baldrige core values and concepts (pages 38–43). Consider how your organization measures up in
relation to the core values. Are there any improvements you should be making?
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Answer the questions in the titles of the 17 Criteria for Performance Excellence items to reach a basic under-
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standing of the Criteria and your organization’s performance.
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See a simple outline of a holistic performance management system by reading the headings in blue in the
Criteria section of this booklet (pages 4–28). Are you considering all of these dimensions in establishing your leader-
ship system and measuring performance?
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Use the Baldrige framework and its supporting material as a general resource on organizational performance
improvement. This booklet and the materials online (https://www.nist.gov/baldrige/publications) may help you think
in a different way or give you a fresh frame of reference.
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Attend the Quest for Excellence® Conference, the Baldrige Fall Conference, or a state or regional Baldrige-
based conference. These events highlight the role-model approaches of recipients of the Baldrige Award or Baldrige-
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based awards. These organizations have used the Baldrige framework to improve performance, innovate, and achieve
world-class results. Workshops on Baldrige self-assessment are often offered in conjunction with these conferences.
Become an examiner or attend the Baldrige Examiner Training Experience (https://www.nist.gov/baldrige
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/products-services). Examiners receive valuable training, evaluate award applications, and learn to apply the Criteria to
their organizations.
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Become a Baldrige Executive Fellow. Baldrige Fellows (C-suite and rising executives) participate in an executive
development program (see https://www.nist.gov/baldrige/products-services), learning from each other and from
Baldrige Award recipients.
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If you are ready to assess your organization using Baldrige . . .

To assess your organization with the Baldrige framework, follow one or more of the suggestions below.
Check your progress on achieving organizational excellence and improve communication among your work-
force members and leadership team with two simple questionnaires: Are We Making Progress? and Are We Making
Progress as Leaders? (https://www.nist.gov/baldrige/self-assessing/improvement-tools).
Identify gaps in your understanding of your organization and compare your organization with others with
easyInsight: Take a First Step toward a Baldrige Self-Assessment (https://www.nist.gov/baldrige/self-assessing
/improvement-tools). This assessment is based on the Organizational Profile.
Complete the Organizational Profile (pages 4–6). Have your leadership team answer the questions. If you identify
topics for which you have conflicting, little, or no information, use these topics for action planning. For many organi-
zations, this approach serves as a first Baldrige self-assessment.
Answer the questions in the Baldrige Excellence Builder (https://www.nist.gov/baldrige/publications). This assess-
ment tool includes key questions for improving your organization’s performance. They are the questions in black
boldface in the Criteria section of this booklet.
How to Use the Baldrige Excellence Framework v

Use the full set of Criteria questions as a personal guide to everything that is important in leading your
organization. You may discover blind spots or areas where you should place additional emphasis.
Review the scoring guidelines (pages 32–33). They help you assess your organizational maturity, especially when
used in conjunction with “Steps toward Mature Processes” (page 31) and “From Fighting Fires to Innovation:
An Analogy for Learning” (page 34).
Answer the questions in one Criteria category in which you know you need improvement, either yourself or
with leadership team colleagues. Then assess your strengths and opportunities for improvement, and develop action
plans. Be aware, though, that this kind of assessment limits the benefits of the systems perspective embodied in the
Baldrige framework.
Have your leadership team assess your organization. At a retreat, have your leadership team develop responses to
the Organizational Profile and the seven Criteria categories using the Baldrige Excellence Builder (https://www.nist
.gov/baldrige/publications), and record the responses. Then assess your strengths and opportunities for improvement,
and develop action plans.
Conduct a full Baldrige self-assessment. Set up teams within your organization to develop responses to the
Organizational Profile and Criteria categories. For details, see https://www.nist.gov/baldrige/self-assessing and the
slide presentation “Self-Assessing Your Organization with the Baldrige Excellence Framework” (https://www.nist.gov
/baldrige/community/baldrige-ambassadors).
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Contact your state, local, or sector-specific Baldrige-based program (see the Alliance for Performance Excellence,
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https://www.baldrigealliance.org). Many programs provide networking opportunities, training, coaching, and self-
assessment services in addition to an award program.
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Contact a Baldrige Award recipient. Organizations that receive the Baldrige Award advocate for performance
improvement, share their strategies, and serve as role models. Many undertake ongoing self-assessments of their
organizations and can share their experiences with you. See https://www.nist.gov/baldrige/award-recipients for award
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recipients and their contact information.
If you are ready for external feedback . . .

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Here are some resources for receiving external feedback on your organization’s strengths and opportunities for
improvement.
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Apply to your state, local, or sector-specific Baldrige-based award program (see the Alliance for Performance
Excellence, https://www.baldrigealliance.org). A team of experts will examine your organization objectively and
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identify your organization’s strengths and its opportunities to improve.

Arrange for a Baldrige Collaborative Assessment (https://www.nist.gov/baldrige/products-services). In this on-site
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assessment, a team of Baldrige examiners works with your leaders and staff to give your organization immediate,
actionable feedback.
Apply for the Malcolm Baldrige National Quality Award. Once you meet eligibility requirements, apply for the
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highest level of national recognition for performance excellence that a U.S. organization can receive: the Malcolm
Baldrige National Quality Award.
Award applicants say that the Baldrige evaluation process is one of the best, most cost-effective, most comprehensive
performance assessments you can find, whether or not they receive the Baldrige Award. See https://www.nist.gov
/baldrige/baldrige-award for more information. In the Baldrige process, everyone is a learner.
vi 2019–2020 Baldrige Excellence Framework

Criteria for Performance Excellence
Overview and Structure
Criteria for Performance Excellence Overview: A Systems Perspective

The performance system consists of the six categories in the center of the figure. These categories define your processes and
the results you achieve.
Performance excellence requires strong Leadership and is demonstrated through outstanding Results.
The word “integration” at the center of the figure shows that all the elements of the system are interrelated.
The center horizontal arrowheads show the critical linkage between the leadership triad (on the left) and the results triad
(on the right) and the central relationship between the Leadership and Results categories.
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The center vertical arrowheads point to the Organizational Profile and the system foundation, which provide information on
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and feedback to key processes and the organizational environment.
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The Organizational Profile
sets the context for your The results triad (Workforce,
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organization. It serves as the Operations, and Results)
The leadership triad (Leader- includes your workforce-focused
ship, Strategy, and Customers) background for all you do.
processes, your key operational
emphasizes the importance of processes, and the performance
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a leadership focus on strategy results they yield.
and customers.
Organizational Profile
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Strategy Workforce
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Leadership Integration RESULTS

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Customers Operations
Measurement, Analysis, and Knowledge Management
The system All actions

foundation lead to
(Measurement, Results—a
Analysis, and
Core s
Values and Concept
composite of product
Knowledge Management) and process, customer,
is critical to effective workforce, leadership
management and to a and governance, and
fact-based, knowledge- financial, market, and
driven, agile system for strategy results.
improving performance The basis of the Criteria is a set of Core Values and Concepts that
and competitiveness. are embedded in high-performing organizations (see pages 38–43).
Criteria for Performance Excellence Overview and Structure 1

Criteria for Performance Excellence Structure
The seven Baldrige Criteria for Performance Excellence categories are subdivided into items and
areas to address.
Items Areas to Address

There are 17 Criteria items (plus 2 in the Organizational Each item includes one or more areas to address (labeled a,
Profile), each with a particular focus. These items are divided b, c, and so on).
into three groups according to the kinds of information they
ask for: Item Questions
• The Organizational Profile asks you to define your Item questions are expressed on three levels:
organizational environment. • Basic questions are expressed in the item titles.
• Process items (categories 1–6) ask you to define your • Overall questions are expressed in boldface in the
organization’s processes. shaded box. These leading questions are the starting
point for responding.
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• Results items (category 7) ask you to report results for
your organization’s processes. • Multiple questions are the individual ones under each
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See page 3 for a list of item titles and point values. area to address, including the one in boldface. That
first question expresses the most important one in
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Item Notes that group.
Item notes (1) clarify terms or questions, (2) give instructions
and examples for responding, and (3) indicate key linkages se Key Terms
to other items. Item notes in italics pertain specifically to Terms in SMALL CAPS are defined in the Glossary of Key
nonprofit (including government) organizations. Terms (pages 46–53).
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Item title and Key term in Type of information

basic question small caps Item point value to provide in
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response to this item

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Item number
3.1 Customer Expectations: How do you listen to your customers and determine
products and services to meet their needs? (40 pts.)
Area to a. CUSTOMER Listening
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address (1) Current CUSTOMERS HOW do you listen to, interact with, and observe customers to obtain actionable infor-
PROCE S S
mation? HOW do your listening methods vary for different CUSTOMERS, CUSTOMER groups, or market SEGMENTS?
Headings HOW do your listening methods vary across the CUSTOMER life cycle? HOW do you seek immediate and actionable
feedback from CUSTOMERS on the quality of products, CUSTOMER support, and transactions?
summarizing (2) Potential CUSTOMERS HOW do you listen to potential CUSTOMERS to obtain actionable information? HOW do
multiple you listen to former CUSTOMERS, competitors’ CUSTOMERS, and other potential CUSTOMERS to obtain actionable Overall
information on your products, CUSTOMER support, and transactions, as appropriate?
questions questions
Terms in SMALL CAPS are defined in the Glossary of Key Terms (pages 46–53).
Notes Multiple
3.1. Your results on performance relative to key product 3.1a(1). The customer life cycle begins in the product questions
features should be reported in item 7.1. concept or pre-sale period and continues through all stages
3.1. For additional considerations on the products and business of your involvement with the customer. These stages might
of nonprofit (including government) organizations, see the include relationship building, the active business relation-
notes to P.1a(1) and P.2b. ship, and an exit strategy, as appropriate.
Item 3.1a(1). Your customer listening methods might include For additional guidance on this item, see the Criteria
Commentary (https://www.nist.gov/baldrige/baldrige
notes social media and web-based technologies. Listening through
-criteria-commentary).
social media may include monitoring comments on social
media outlets you moderate and on those you do not.
Link to
Criteria
Commentary
Note in italics for nonprofit organizations
2 2019–2020 Baldrige Excellence Framework

Items and Point Values
See pages 29–34 for the scoring system used with the Criteria items in a Baldrige assessment.
P Organizational Profile
P.1 Organizational Description
P.2 Organizational Situation
Categories and Items Point Values

1 Leadership 120
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1.1 Senior Leadership 70
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1.2 Governance and Societal Contributions 50
2 Strategy 85
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2.1 Strategy Development 45
3
2.2 Strategy Implementation
Customers
se 40
85
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3.1 Customer Expectations 40
3.2 Customer Engagement 45
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4 Measurement, Analysis, and Knowledge Management 90

4.1 Measurement, Analysis, and Improvement of
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Organizational Performance 45
4.2 Information and Knowledge Management 45
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5 Workforce 85
5.1 Workforce Environment 40
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5.2 Workforce Engagement 45
6 Operations 85
6.1 Work Processes 45
6.2 Operational Effectiveness 40
7 Results 450
7.1 Product and Process Results 120
7.2 Customer Results 80
7.3 Workforce Results 80
7.4 Leadership and Governance Results 80
7.5 Financial, Market, and Strategy Results 90
TOTAL POINTS 1,000
Criteria for Performance Excellence Items and Point Values 3

Begin with the Organizational Profile
The Organizational Profile is the most appropriate starting point for self-assessment and for writing an application. It is criti-
cally important for the following reasons:
• You can use it as an initial self-assessment. If you identify topics for which conflicting, little, or no information is available,
use these topics for action planning.
• It sets the context for understanding your organization and how it operates, and allows you to address unique aspects
of your organization in your responses to the Baldrige Criteria questions in categories 1–7. Your responses to all other
questions in the Criteria should relate to the organizational context you describe in this profile.
• It helps you identify gaps in key information about your organization and focus on key performance requirements
and results.
P Organizational Profile
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The Organizational Profile is a snapshot of your organization and its strategic environment.
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P.1 Organizational Description: What are your key organizational characteristics?
a. Organizational Environment se
(1) Product Offerings What are your main product offerings (see the note on the next page)? What is the relative
importance of each to your success? What mechanisms do you use to deliver your products?
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(2) MISSION, VISION, VALUES, and Culture What are your MISSION, VISION, and VALUES? Other than VALUES, what
are the characteristics of your organizational culture, if any? What are your organization’s CORE COMPETENCIES, and
what is their relationship to your MISSION?
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(3) WORKFORCE Profile What is your WORKFORCE profile? What recent changes have you experienced in WORKFORCE
composition or in your needs with regard to your WORKFORCE? What are
in
• your WORKFORCE or employee groups and SEGMENTS;

• the educational requirements for different employee groups and SEGMENTS;
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• the KEY drivers that engage them;

• your organized bargaining units (union representation), if any; and
• your special health and safety requirements, if any?
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(4) Assets What are your major facilities, equipment, technologies, and intellectual property?
(5) Regulatory Environment What are your KEY applicable occupational health and safety regulations; accredita-
tion, certification, or registration requirements; industry standards; and environmental, financial, and product
regulations?
b. Organizational Relationships
(1) Organizational Structure What are your organizational leadership structure and GOVERNANCE structure? What
structures and mechanisms make up your organization’s LEADERSHIP SYSTEM? What are the reporting relationships
among your GOVERNANCE board, SENIOR LEADERS, and parent organization, as appropriate?
(2) CUSTOMERS and STAKEHOLDERS What are your KEY market SEGMENTS, CUSTOMER groups, and STAKEHOLDER
groups, as appropriate? What are their KEY requirements and expectations for your products, CUSTOMER support
services, and operations, including any differences among the groups?
(Continued on the next page)
4 2019–2020 Criteria for Performance Excellence

(3) Suppliers, PARTNERS, and COLLABORATORS What are your KEY types of suppliers, PARTNERS, and COLLABORATORS?
What role do they play in producing and delivering your KEY products and CUSTOMER support services, and in
enhancing your competitiveness? What role do they play in contributing and implementing INNOVATIONS in your
organization? What are your KEY supply-network requirements?
Notes
P.1a(1). Product offerings are the goods and services guidance. For some nonprofit (including government) organi-
you offer in the marketplace. Mechanisms for delivering zations, governance and reporting relationships might include
products to your customers might be direct or might be relationships with major funding sources, such as granting
indirect, through dealers, distributors, collaborators, or chan- agencies, legislatures, or foundations.
nel partners. Nonprofit (including government) organizations P.1b(1). The Organizational Profile asks for the “what” of
might refer to their product offerings as programs, projects, your leadership system (its structures and mechanisms).
or services. Questions in categories 1 and 5 ask how the system is used.
P.1a(2). If your organization has a stated purpose as well P.1b(2). For some nonprofit (including government) organiza-
as a mission, you should include it in your response. Some
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tions, customers might include members, taxpayers, citizens,
organizations define a mission and a purpose, and some use recipients, clients, and beneficiaries, and market segments
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the terms interchangeably. In some organizations, purpose might be referred to as constituencies. For government agencies,
refers to the fundamental reason that the organization the legislature (as a source of funds) may be a key stakeholder.
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exists. Its role is to inspire the organization and guide its
setting of values. P.1b(2). Customer groups might be based on common
expectations, behaviors, preferences, or profiles. Within a
P.1a(2). Your values are part of your organization’s culture. se group, there may be customer segments based on differ-
Other characteristics of your organizational culture might ences, commonalities, or both. You might subdivide your
include shared beliefs and norms that contribute to the market into segments based on product lines or features,
uniqueness of the environment within your organization. distribution channels, business volume, geography, or other
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P.1a(3). Workforce or employee groups and segments defining factors.
(including organized bargaining units) might be based on P.1b(2). Customer, stakeholder, and operational require-
type of employment or contract-reporting relationship,
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ments and expectations will drive your organization’s

location (including telework), tour of duty, work environ- sensitivity to the risk of product, service, support, and
ment, use of certain family-friendly policies, or other factors. supply-network interruptions, including those due to natural
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Organizations that also rely on volunteers and interns to disasters and other emergencies.
accomplish their work should include these groups as part
P.1b(3). Your supply network consists of the entities
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of their workforce.
involved in producing your products and services and deliv-
P.1a(5). In the Criteria, industry refers to the sector in which ering them to your customers. For some organizations, these
you operate. Industry standards might include industrywide entities form a chain, in which one entity directly supplies
codes of conduct and policy guidance. For nonprofit (includ- another. Increasingly, however, these entities are interlinked
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ing government) organizations, this sector might be charitable and exist in interdependent rather than linear relationships.
organizations, professional associations and societies, religious The Criteria use the term supply network, rather than
organizations, or government entities—or a subsector of one supply chain, to emphasize the interdependencies among
of these. Depending on the regions in which you operate, organizations and their suppliers.
environmental regulations might cover greenhouse gas
emissions, carbon regulations and trading, and energy For additional guidance on this item, see the Criteria
efficiency. Commentary (https://www.nist.gov/baldrige/baldrige
P.1b(1). The governance or oversight structure for privately
held businesses, nonprofit organizations, and government
agencies may comprise an advisory board, a family council,
or local/regional leaders who are assembled to provide
Organizational Profile 5
P.2 Organizational Situation: What is your organization’s strategic situation?
a. Competitive Environment
(1) Competitive Position What are your relative size and growth in your industry or the markets you serve? How
many and what types of competitors do you have?
(2) Competitiveness Changes What KEY changes, if any, are affecting your competitive situation, including changes
that create opportunities for INNOVATION and collaboration, as appropriate?
(3) Comparative Data What KEY sources of comparative and competitive data are available from within your indus-
try? What KEY sources of comparative data are available from outside your industry? What limitations, if any, affect
your ability to obtain or use these data?
b. Strategic Context
What are your KEY STRATEGIC CHALLENGES and ADVANTAGES?
c. PERFORMANCE Improvement System
What is your PERFORMANCE improvement system, including your PROCESSES for evaluation and improvement of KEY
organizational projects and PROCESSES?
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Notes
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P.2a. Nonprofit organizations must often compete with other P.2c. The Baldrige Scoring System (pages 29–34) uses
organizations and alternative sources of similar services to performance improvement through learning and integration
secure financial and volunteer resources, membership, visibility
in appropriate communities, and media attention.
seas a dimension in assessing the maturity of organizational
approaches and their deployment. This question is intended
P.2b. Strategic challenges and advantages might be in the to set an overall context for your approach to performance
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areas of business, operations, societal contributions, and improvement. The approach you use should be related to
workforce. They might relate to products, finances, organi- your organization’s needs. Approaches that are compatible
zational structure and culture, emerging technology, digital with the overarching systems approach provided by the
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integration, data and information security, brand recognition Baldrige framework might include implementing a Lean
and reputation, your supply network, globalization, and the Enterprise System, applying Six Sigma methodology, using
environment and climate. Throughout the Criteria, “business” PDCA methodology, using standards from ISO (e.g., the
in
refers to a nonprofit (or government) organization’s main mis- 9000 or 14000 series, or sector-specific standards), using
sion area or enterprise activity. decision science, or employing other improvement tools.
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For additional guidance on this item, see the Criteria

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1 Leadership (120 pts.)
The Leadership category asks HOW SENIOR LEADERS’ personal actions guide and sustain your organization. It also asks about
your organization’s GOVERNANCE system; HOW your organization fulfills its legal and ethical responsibilities; and HOW it makes
societal contributions.
1.1 Senior Leadership: How do your senior leaders lead the organization? (70 pts.)
a. VISION and VALUES
(1) Setting VISION and VALUES HOW do SENIOR LEADERS set your organization’s VISION and VALUES? HOW do
P R O C ESS
SENIOR LEADERS DEPLOY the VISION and VALUES through your LEADERSHIP SYSTEM, to the WORKFORCE, to KEY
suppliers and PARTNERS, and to CUSTOMERS and other STAKEHOLDERS, as appropriate? HOW do SENIOR LEADERS’
personal actions reflect a commitment to those VALUES?
(2) Promoting Legal and ETHICAL BEHAVIOR HOW do SENIOR LEADERS’ personal actions demonstrate their
commitment to legal and ETHICAL BEHAVIOR? HOW do SENIOR LEADERS promote an organizational environment
that requires it?
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b. Communication
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HOW do SENIOR LEADERS communicate with and engage the entire WORKFORCE, KEY PARTNERS, and KEY CUSTOMERS?
HOW do they
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• encourage frank, two-way communication;
• communicate KEY decisions and needs for organizational change; and
• take a direct role in motivating the WORKFORCE toward HIGH PERFORMANCE and a CUSTOMER and
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business focus?
c. MISSION and Organizational PERFORMANCE
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(1) Creating an Environment for Success HOW do SENIOR LEADERS create an environment for success now
and in the future? HOW do they
• create an environment for the achievement of your MISSION;
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• create and reinforce your organizational culture, and a culture that fosters CUSTOMER and WORKFORCE
ENGAGEMENT;
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• cultivate organizational agility, accountability, organizational and individual LEARNING, INNOVATION, and
INTELLIGENT RISK taking; and
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• participate in succession planning and the development of future organizational leaders?

(2) Creating a Focus on Action HOW do SENIOR LEADERS create a focus on action that will achieve the
organization’s MISSION? HOW do SENIOR LEADERS
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• create a focus on action that will improve the organization’s PERFORMANCE;

• identify needed actions;
• in setting expectations for organizational PERFORMANCE, include a focus on creating and balancing VALUE for
CUSTOMERS and other STAKEHOLDERS; and
• demonstrate personal accountability for the organization’s actions?
Notes
1.1. Your organizational performance results should be 1.1b. Two-way communication may include use of social
reported in items 7.1–7.5. Results related to the effectiveness media, such as delivering periodic messages through inter-
of leadership and the leadership system should be reported nal and external websites, tweets, blogging, and customer
in item 7.4. and workforce electronic forums, as well as monitoring
1.1a(1). Your organization’s vision should set the context external social media outlets and responding, when
for the strategic objectives and action plans you describe in appropriate.
items 2.1 and 2.2.
1 Leadership 7
1.1b. Senior leaders’ direct role in motivating the workforce cal and organizational innovation. Other factors include
may include participating in reward and recognition risks and opportunities arising from emerging technology,
programs. data integration, data and information security, and environ-
mental considerations.
1.1b. Organizations that rely heavily on volunteers to
accomplish their work should also discuss efforts to com- 1.1c(2). Senior leaders’ focus on action considers your strat-
municate with and engage the volunteer workforce. egy, workforce, work systems, and assets. It includes taking
intelligent risks, implementing innovations and ongoing
1.1c(1). A successful organization is capable of addressing improvements in performance and productivity, taking the
current business needs and, by addressing risk, agility, and actions needed to achieve your strategic objectives (see
strategic management, is capable of preparing for its future 2.2a[1]), and possibly establishing plans for managing major
business, market, and operating environment. In creating organizational change or responding rapidly to significant
an environment for success, leaders should consider both new information.
external and internal factors. Factors might include risk
appetite and tolerance, organizational culture, work systems, For additional guidance on this item, see the Criteria
the potential need for transformational changes in structure Commentary (https://www.nist.gov/baldrige/baldrige
and culture, workforce capability and capacity, resource -criteria-commentary).
availability, core competencies, and the need for technologi-
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1.2 Governance and Societal Contributions: How do you govern your organization and
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make societal contributions? (50 pts.)
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a. Organizational GOVERNANCE
(1) GOVERNANCE System HOW does your organization ensure responsible GOVERNANCE? HOW does your
PROC ESS
GOVERNANCE system review and achieve the following?
• Accountability for SENIOR LEADERS’ actions

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• Accountability for strategy
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• Fiscal accountability
• Transparency in operations
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• Selection of GOVERNANCE board members and disclosure policies for them, as appropriate
• Independence and EFFECTIVENESS of internal and external audits
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• Protection of STAKEHOLDER and stockholder interests, as appropriate

• Succession planning for SENIOR LEADERS
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(2) PERFORMANCE Evaluation HOW do you evaluate the PERFORMANCE of your SENIOR LEADERS and your
GOVERNANCE board? HOW do you use PERFORMANCE evaluations in determining executive compensation? HOW
do your SENIOR LEADERS and GOVERNANCE board use these PERFORMANCE evaluations to advance their develop-
ment and improve the effectiveness of leaders, the board, and the LEADERSHIP SYSTEM, as appropriate?
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b. Legal and ETHICAL BEHAVIOR

(1) Legal and Regulatory Compliance HOW do you address current and anticipate future legal, regulatory, and
community concerns with your products and operations? HOW do you
• address any adverse societal impacts of your products and operations,
• anticipate public concerns with your future products and operations, and
• prepare for these impacts and concerns proactively?
What are your KEY compliance PROCESSES, MEASURES, and GOALS for meeting and surpassing regulatory and legal
requirements, as appropriate? What are your KEY PROCESSES, MEASURES, and GOALS for addressing risks associated
with your products and operations?
(2) ETHICAL BEHAVIOR HOW do you promote and ensure ETHICAL BEHAVIOR in all interactions? What are your
KEY PROCESSES and MEASURES or INDICATORS for promoting and ensuring ETHICAL BEHAVIOR in your GOVERNANCE
structure; throughout your organization; and in interactions with your WORKFORCE, CUSTOMERS, PARTNERS, suppli-
ers, and other STAKEHOLDERS? HOW do you monitor and respond to breaches of ETHICAL BEHAVIOR?
(Continued on the next page)

c. Societal Contributions
(1) Societal Well-Being HOW do you consider societal well-being and benefit as part of your strategy and daily
operations? HOW do you contribute to the well-being of your environmental, social, and economic systems?
(2) Community Support HOW do you actively support and strengthen your KEY communities? What are your
KEY communities? HOW do you identify them and determine areas for organizational involvement? HOW do your
SENIOR LEADERS, in concert with your WORKFORCE, contribute to improving these communities?
Notes
1.2. Societal contributions in areas critical to your ongoing 1.2b(2). Measures or indicators of ethical behavior might
marketplace success should also be addressed in Strategy include the percentage of independent board members,
Development (item 2.1) and Operations (category 6). Key measures of relationships with stockholder and non-
societal results should be reported as Leadership and stockholder constituencies, instances of ethical conduct or
Governance Results (item 7.4). compliance breaches and responses to them, survey results
showing workforce perceptions of organizational ethics,
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1.2. The health and safety of your workforce are not
ethics hotline use, and results of ethics reviews and audits.
addressed in this item; you should address these workforce
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Measures or indicators of ethical behavior might also include
factors in items 5.1 and 6.2, respectively.
evidence that policies, workforce training, and monitoring
1.2a(1). The governance board’s review of organizational
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systems are in place for conflicts of interest; protection and
performance and progress, if appropriate, is addressed in use of sensitive data, information, and knowledge generated
4.1(b). through synthesizing and correlating these data; and proper
1.2a(1). Transparency in the operations of your governance se use of funds.
system should include your internal controls on governance 1.2c. Some charitable organizations may contribute to society
processes. For some privately held businesses and nonprofit and support their key communities totally through the mission-
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(including government) organizations, an external advisory related activities described in response to other Criteria ques-
board may provide some or all governance board functions. tions. In such cases, it is appropriate to respond here with any
For nonprofit (including government) organizations that serve “extra efforts” through which you support these communities.
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as stewards of public funds, areas of emphasis are stewardship

1.2c(1). Areas of societal well-being and benefit to report
of those funds and transparency in operations.
are those that are in addition to the compliance processes
1.2a(2). The evaluation of leaders’ performance might be
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you describe in 1.2b(1). They might include organizational or

supported by peer reviews, formal performance manage- collaborative efforts to improve the environment; strengthen
ment reviews, and formal or informal feedback from and local community services, education, health, and emergency
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surveys of the workforce and other stakeholders. For some preparedness; address societal inequities; and improve the
privately held businesses and nonprofit and government practices of trade, business, or professional associations.
organizations, external advisory boards might evaluate the
1.2c(2). Areas for organizational involvement in supporting
performance of senior leaders and the governance board.
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your key communities might include areas that leverage

1.2b(1). Proactively preparing for any adverse societal your core competencies.
impacts and concerns may include conservation of natural
resources and effective supply-network management
processes, as appropriate. Nonprofit organizations should
report, as appropriate, how they meet and surpass regulatory
and legal requirements and standards that govern fundraising
and lobbying.
1 Leadership 9
2 Strategy (85 pts.)
The Strategy category asks HOW your organization develops STRATEGIC OBJECTIVES and ACTION PLANS, implements them,
changes them if circumstances require, and measures progress.
2.1 Strategy Development: How do you develop your strategy? (45 pts.)
a. Strategy Development PROCESS
(1) Strategic Planning PROCESS HOW do you conduct your strategic planning? What are the KEY PROCESS steps?
P R O C ESS
Who are the KEY participants? What are your short- and longer-term planning horizons? HOW are they addressed
in the planning PROCESS? HOW does your strategic planning PROCESS address the potential need for transforma-
tional change, prioritization of change initiatives, and organizational agility?
(2) INNOVATION HOW does your strategy development PROCESS stimulate and incorporate INNOVATION? HOW
do you identify STRATEGIC OPPORTUNITIES? HOW do you decide which STRATEGIC OPPORTUNITIES are INTELLIGENT
RISKS to pursue? What are your KEY STRATEGIC OPPORTUNITIES?
(3) Strategy Considerations HOW do you collect and analyze relevant data and develop information for use in
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your strategic planning PROCESS? In this collection and ANALYSIS, HOW do you include these KEY elements of risk?
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• Your STRATEGIC CHALLENGES and STRATEGIC ADVANTAGES
• Potential changes in your regulatory and external environment
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• Potential blind spots in your strategic planning PROCESS and information
• Your ability to execute the strategic plan
(4) WORK SYSTEMS and CORE COMPETENCIES HOW do you decide which KEY PROCESSES will be accomplished
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by your WORKFORCE and which by external suppliers, PARTNERS, and COLLABORATORS? HOW do those decisions
consider your STRATEGIC OBJECTIVES, your CORE COMPETENCIES, and the CORE COMPETENCIES of potential suppli-
ers, PARTNERS, and COLLABORATORS? HOW do you determine what future organizational CORE COMPETENCIES and
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WORK SYSTEMS you will need?
b. STRATEGIC OBJECTIVES
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(1) KEY STRATEGIC OBJECTIVES What are your organization’s KEY STRATEGIC OBJECTIVES and timetable for
achieving them? What are your most important GOALS for these STRATEGIC OBJECTIVES? What KEY changes, if any,
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are planned in your products, CUSTOMERS and markets, suppliers and PARTNERS, and operations?
(2) STRATEGIC OBJECTIVE Considerations HOW do your STRATEGIC OBJECTIVES achieve appropriate balance among
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varying and potentially competing organizational needs? HOW do your STRATEGIC OBJECTIVES
• address your STRATEGIC CHALLENGES and leverage your CORE COMPETENCIES, STRATEGIC ADVANTAGES, and
STRATEGIC OPPORTUNITIES;
• balance short- and longer-term planning horizons; and
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• consider and balance the needs of all KEY STAKEHOLDERS?
Notes
2.1. This item deals with your overall organizational prise risk. To make decisions and allocate resources, you
strategy, which might include changes in customer engage- might use various types of forecasts, projections, options,
ment processes and product offerings. However, you should scenarios, knowledge (see 4.2b for relevant organizational
describe the customer engagement and product design knowledge), analyses, or other approaches to envisioning
strategies, respectively, in items 3.2 and 6.1, as appropriate. the future. Strategy development might involve key sup-
pliers, collaborators, distributors, partners, and customers.
2.1. Strategy development refers to your organization’s
For some nonprofit organizations, strategy development might
approach to preparing for the future. In developing your
involve organizations providing similar services or drawing
strategy, you should consider your level of acceptable enter-
from the same donor population or volunteer workforce.

2.1. The term “strategy” should be interpreted broadly. Strat- ucts, services, or areas; your ability to prevent and respond
egy might be built around or lead to any or all of the follow- to disasters and emergencies; changes in the local, national,
ing: new products; redefinition of key customer groups or or global economy; requirements for and strengths and
market segments; definition or redefinition of your role in weaknesses of your partners and supply network; changes
your business ecosystem (your network of partners, suppli- in your parent organization; and other factors unique to
ers, collaborators, competitors, customers, communities, and your organization.
other relevant organizations inside and outside your sector 2.1a(3). Your strategic planning should address your ability
or industry that serve as potential resources); differentiation to mobilize the necessary resources and knowledge to
of your brand; new core competencies; revenue growth; execute the strategic plan. It should also address your ability
divestitures; mergers and acquisitions; new partnerships, to execute contingency plans or, if circumstances require, to
alliances, or roles within them; and new employee or volun- shift strategy and rapidly execute new or changed plans.
teer relationships. It might also be directed toward meeting
a community or public need. 2.1a(4). Your work systems are the coordinated combination
of internal work processes and external resources you need
2.1a(1). Organizational agility refers to the capacity for to develop and produce products, deliver them to your cus-
rapid change in strategy and the ability to adjust your opera- tomers, and succeed in your marketplace. External resources
tions as opportunities or needs arise. might include partners, suppliers, collaborators, competitors,
2.1a(3). Integration of data from all sources to generate customers, and other entities or organizations that are part
strategically relevant information is a key consideration. of your business ecosystem. Decisions about work systems
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Data and information might relate to customer and market involve protecting intellectual property, capitalizing on core
requirements, expectations, opportunities, and risks; competencies, and mitigating risk.
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financial, societal, ethical, regulatory, technological, security 2.1b(1). Strategic objectives should focus on your specific
and cybersecurity, and other potential opportunities and challenges, advantages, and opportunities—those most
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risks; your core competencies; the competitive environment important to your ongoing success and to strengthening
and your performance now and in the future relative to your overall performance and your success now and in the
competitors and comparable organizations; your product life future.
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cycle; technological and other key innovations or changes
that might affect your products and services and the way For additional guidance on this item, see the Criteria
you operate, as well as the rate of innovation; workforce and Commentary (https://www.nist.gov/baldrige/baldrige
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other resource needs; your ability to capitalize on diversity; -criteria-commentary).
opportunities to redirect resources to higher-priority prod-
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2 Strategy 11
2.2 Strategy Implementation: How do you implement your strategy? (40 pts.)
a. ACTION PLAN Development and DEPLOYMENT
(1) ACTION PLANS What are your KEY short- and longer-term ACTION PLANS? What is their relationship to your
PR O C ESS
STRATEGIC OBJECTIVES? HOW do you develop your ACTION PLANS?
(2) ACTION PLAN Implementation HOW do you DEPLOY your ACTION PLANS? HOW do you DEPLOY your ACTION
PLANS to your WORKFORCE and to KEY suppliers, PARTNERS, and collaborators, as appropriate, to ensure that you
achieve your KEY STRATEGIC OBJECTIVES? HOW do you ensure that you can sustain the KEY outcomes of your
ACTION PLANS?
(3) Resource Allocation HOW do you ensure that financial and other resources are available to support the
achievement of your ACTION PLANS while you meet current obligations? HOW do you allocate these resources to
support the plans? HOW do you manage the risks associated with the plans to ensure your financial viability?
(4) WORKFORCE Plans What are your KEY WORKFORCE plans to support your short- and longer-term STRATEGIC
OBJECTIVES and ACTION PLANS? HOW do the plans address potential impacts on your WORKFORCE members and
any potential changes in WORKFORCE CAPABILITY and CAPACITY needs?
(5) PERFORMANCE MEASURES What KEY PERFORMANCE MEASURES or INDICATORS do you use to track the achieve-
ment and EFFECTIVENESS of your ACTION PLANS? HOW does your overall ACTION PLAN measurement system
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reinforce organizational ALIGNMENT?
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(6) PERFORMANCE PROJECTIONS For these KEY PERFORMANCE MEASURES or INDICATORS, what are your PERFORMANCE
PROJECTIONS for your short- and longer-term planning horizons? If there are gaps between your projected PER-
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FORMANCE and that of your competitors or comparable organizations, HOW do you address them in your ACTION
PLANS?
b. ACTION PLAN Modification se

HOW do you recognize and respond when circumstances require a shift in ACTION PLANS and rapid execution of
new plans?
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Notes
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2.2. The development and deployment of your strategy and • Category 6: how you address changes to your work
action plans are closely linked to other Criteria items. The processes resulting from action plans
following are examples of key linkages:
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• Item 7.1: specific accomplishments relative to your

• Item 1.1: how your senior leaders set and communi- organizational strategy and action plans
cate organizational direction
• Item 7.5: results for overall strategy and action plan
• Category 3: how you gather customer and market achievement
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knowledge as input to your strategy and action plans

2.2a(6). Projected performance might consider new
and to use in deploying action plans
ventures; organizational acquisitions or mergers; new value
• Category 4: how you measure and analyze data and creation; market entry and shifts; new legislative mandates,
manage knowledge to support key information needs, legal requirements, or industry standards; and significant
support the development of strategy, provide an effec- anticipated innovations in services and technology. Your pro-
tive basis for performance measurements, and track cess for projecting future performance should be reported in
progress on achieving strategic objectives and action 4.1c(1).
plans
• Category 5: how you meet workforce capability and Commentary (https://www.nist.gov/baldrige/baldrige
capacity needs, determine needs and design your -criteria-commentary).
workforce learning and development system, and
implement workforce-related changes resulting from
action plans

3 3 Customers (85 pts.)
The CUSTOMERS category asks HOW your organization engages its CUSTOMERS for ongoing marketplace success, including
HOW your organization listens to the VOICE OF THE CUSTOMER, serves and exceeds CUSTOMERS’expectations, and builds long-
term CUSTOMER relationships.
3.1 Customer Expectations: How do you listen to your customers and determine
products and services to meet their needs? (40 pts.)
a. CUSTOMER Listening
(1) Current CUSTOMERS HOW do you listen to, interact with, and observe CUSTOMERS to obtain actionable infor-
P R O C ESS
mation? HOW do your listening methods vary for different CUSTOMERS, CUSTOMER groups, or market SEGMENTS?
HOW do your listening methods vary across the CUSTOMER life cycle? HOW do you seek immediate and actionable
feedback from CUSTOMERS on the quality of products, CUSTOMER support, and transactions?
(2) Potential CUSTOMERS HOW do you listen to potential CUSTOMERS to obtain actionable information? HOW do
you listen to former CUSTOMERS, competitors’ CUSTOMERS, and other potential CUSTOMERS to obtain actionable
information on your products, CUSTOMER support, and transactions, as appropriate?
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b. CUSTOMER Segmentation and Product Offerings
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(1) CUSTOMER Segmentation HOW do you determine your CUSTOMER groups and market SEGMENTS? HOW do you
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• use information on CUSTOMERS, markets, and product offerings to identify current and anticipate future
CUSTOMER groups and market SEGMENTS; and
• determine which CUSTOMERS, CUSTOMER groups, and market SEGMENTS to emphasize and pursue for business
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growth?
(2) Product Offerings HOW do you determine product offerings? HOW do you
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• determine CUSTOMER and market needs and requirements for product offerings and services;
• identify and adapt product offerings to meet the requirements and exceed the expectations of your CUSTOMER
groups and market SEGMENTS; and
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• identify and adapt product offerings to enter new markets, to attract new CUSTOMERS, and to create opportuni-
ties to expand relationships with current CUSTOMERS, as appropriate?
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Notes
3.1. Your results on performance relative to key product 3.1b(2). In identifying product offerings, you should
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features should be reported in item 7.1. consider all the important characteristics of products and
3.1. For additional considerations on the products and business services and their performance throughout their full life
of nonprofit (including government) organizations, see the cycle and the full consumption chain. The focus should be
notes to P.1a(1) and P.2b. on features that affect customers’ preference for and loyalty
to you and your brand—for example, features that differenti-
3.1a(1). Your customer listening methods might include ate your products due to their unique or innovative nature
social media and web-based technologies. Listening through or that differentiate them from competing offerings or other
social media may include monitoring comments on social organizations’ services. Those latter features might include
media outlets you moderate and on those you do not price, reliability, value, delivery, timeliness, product custom-
control. ization, ease of use, customer or technical support, and the
3.1a(1). The customer life cycle begins in the product sales relationship. Key features might also consider how
concept or pre-sale period and continues through all stages transactions occur and factors such as emerging technology
of your involvement with the customer. These stages might and the privacy and security of customer data.
include relationship building, the active business relation- For additional guidance on this item, see the Criteria
ship, and an exit strategy, as appropriate. Commentary (https://www.nist.gov/baldrige/baldrige
3 Customers 13
3.2 Customer Engagement: How do you build relationships with customers and
determine satisfaction and engagement? (45 pts.)
a. CUSTOMER Relationships and Support
(1) Relationship Management HOW do you build and manage CUSTOMER relationships? HOW do you market,
P R O C ESS
build, and manage relationships with CUSTOMERS to
• acquire CUSTOMERS and build market share;
• manage and enhance your brand image;
• retain CUSTOMERS, meet their requirements, and exceed their expectations in each stage of the
CUSTOMER life cycle?
(2) CUSTOMER Access and Support HOW do you enable CUSTOMERS to seek information and support? HOW do
you enable them to conduct business with you? What are your KEY means of CUSTOMER support and communica-
tion? HOW do they vary for different CUSTOMERS, CUSTOMER groups, or market SEGMENTS, as appropriate?
HOW do you
• determine your CUSTOMERS’ KEY support requirements, and
• DEPLOY these requirements to all people and PROCESSES involved in CUSTOMER support?
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(3) Complaint Management HOW do you manage CUSTOMER complaints? HOW do you resolve complaints
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promptly and EFFECTIVELY? HOW does your management of complaints enable you to recover your CUSTOMERS’
confidence, enhance their satisfaction and ENGAGEMENT, and avoid similar complaints in the future?
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b. Determination of CUSTOMER Satisfaction and ENGAGEMENT
(1) Satisfaction, Dissatisfaction, and ENGAGEMENT HOW do you determine CUSTOMER satisfaction, dissatisfaction,
and ENGAGEMENT? HOW do your determination methods differ among your CUSTOMER groups and market
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SEGMENTS, as appropriate? HOW do your measurements capture actionable information?
(2) Satisfaction Relative to Other Organizations HOW do you obtain information on CUSTOMERS’ satisfaction
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with your organization relative to other organizations? HOW do you obtain information on your CUSTOMERS’
satisfaction
• relative to their satisfaction with your competitors; and
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• relative to the satisfaction of CUSTOMERS of other organizations that provide similar PRODUCTS or to industry
BENCHMARKS, as appropriate?
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c. Use of VOICE-OF-THE-CUSTOMER and Market Data

HOW do you use VOICE-OF-THE-CUSTOMER and market data and information? HOW do you use VOICE-OF-THE-
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CUSTOMER and market data and information to build a more CUSTOMER-focused culture and support operational
decision making?
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Notes
3.2. Results for customer perceptions and actions 3.2c. Customer data and information should be used to
(outcomes) should be reported in item 7.2. support the overall performance reviews addressed in 4.1b.
Voice-of-the-customer and market data and information to
3.2b(1). Determining customer dissatisfaction should be use might include aggregated data on complaints and, as
seen as more than reviewing low customer satisfaction appropriate, data and information from social media.
scores. It should be independently determined to identify
root causes and enable a systematic remedy to avoid future For additional guidance on this item, see the Criteria
dissatisfaction. Commentary (https://www.nist.gov/baldrige/baldrige
3.2b(2). Information on relative satisfaction may include
comparisons with competitors, comparisons with other
organizations that deliver similar products in a noncompeti-
tive marketplace, or comparisons obtained through trade
or other organizations. Such information may also include
information on why customers choose your competitors
over you.

4 Measurement, Analysis, and Knowledge Management (90 pts.)
The Measurement, ANALYSIS, and Knowledge Management category asks HOW your organization selects, gathers,
analyzes, manages, and improves its data, information, and KNOWLEDGE ASSETS; HOW it uses review findings to improve its
PERFORMANCE; and HOW it learns.
4.1 Measurement, Analysis, and Improvement of Organizational Performance:

How do you measure, analyze, and then improve organizational performance? (45 pts.)
a. PERFORMANCE Measurement
(1) PERFORMANCE MEASURES HOW do you track data and information on daily operations and overall organiza-
P R O C ESS
tional PERFORMANCE? HOW do you
• select, collect, align, and integrate data and information to use in tracking daily operations and overall organiza-
tional PERFORMANCE; and
• track progress on achieving STRATEGIC OBJECTIVES and ACTION PLANS?
What are your KEY organizational PERFORMANCE MEASURES, including KEY short- and longer-term financial
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MEASURES? How frequently do you track these MEASURES?
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(2) Comparative Data HOW do you select comparative data and information to support fact-based decision
making?
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(3) Measurement Agility HOW do you ensure that your PERFORMANCE measurement system can respond to rapid
or unexpected organizational or external changes and provide timely data?
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HOW do you review your organization’s PERFORMANCE and capabilities? HOW do you use your KEY organizational
PERFORMANCE MEASURES, as well as comparative data, in these reviews? What ANALYSES do you perform to support
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these reviews and ensure that conclusions are valid? HOW do your organization and its SENIOR LEADERS use these
reviews to
• assess organizational success, competitive PERFORMANCE, financial health, and progress on achieving your
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STRATEGIC OBJECTIVES and ACTION PLANS; and

• respond rapidly to changing organizational needs and challenges in your operating environment?
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HOW does your GOVERNANCE board review the organization’s PERFORMANCE and its progress on STRATEGIC OBJECTIVES
and ACTION PLANS, if appropriate?
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c. PERFORMANCE Improvement
(1) Future PERFORMANCE HOW do you project your organization’s future PERFORMANCE? HOW do you use findings
from PERFORMANCE reviews and KEY comparative and competitive data in your PROJECTIONS?
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(2) Continuous Improvement and INNOVATION HOW do you use findings from PERFORMANCE reviews to develop
priorities for continuous improvement and opportunities for INNOVATION? HOW do you DEPLOY these priorities
and opportunities
• to work group and functional-level operations; and
• when appropriate, to your suppliers, PARTNERS, and COLLABORATORS to ensure organizational ALIGNMENT?
Notes
4.1. The questions in this item are closely linked to should inform your organizational performance
each other and to other Criteria items. The following are reviews (4.1b).
examples of key linkages:
• Organizational performance reviews (4.1b) should
• Your organizational performance measurement reflect your strategic objectives and action plans
(4.1a)—including the comparative data and informa- (category 2), and the results of organizational
tion you select, and the performance measures performance analysis and review should inform
reported throughout your Criteria item responses— your strategy development and implementation, and

your priorities for improvement and opportunities for processes or business models, new competitor offerings,
innovation (4.1c). or productivity enhancements. Responses to such changes
might involve, for example, adopting different performance
• Your performance projections for your key action plans
measures or adjusting the intervals between measurements.
should be reported in 2.2a(6).
4.1b. Performance analysis includes examining performance
• Your organizational performance results should be
trends; organizational, industry, and technology projec-
reported in items 7.1–7.5.
tions; and comparisons, cause-effect relationships, and
4.1a. Data and information from performance measurement correlations. This analysis should support your performance
should be used to support fact-based decisions that set and reviews, help determine root causes, and help set priorities
align organizational directions and resource use at the work for resource use. Accordingly, such analysis draws on all
unit, key process, department, and organization levels. types of data: product performance, customer-related,
financial and market, operational, and competitive. The
4.1a(2). The comparative data and information you select
analysis should also draw on publicly mandated measures,
should be used to support operational and strategic decision
when appropriate, and might also be informed by internal
making. Comparative data and information are obtained
or external Baldrige assessments.
by benchmarking and by seeking competitive comparisons.
Benchmarking is identifying processes and results that rep- 4.1b. Rapid response to changing organizational needs
resent best practices and performance for similar activities, and challenges may include responding to the need for
inside or outside your industry. Competitive comparisons transformational change in your organizational structure
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relate your performance to that of competitors and other and work systems.
organizations providing similar products and services.
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4.1a(3). Agility in your measurement system might be Commentary (https://www.nist.gov/baldrige/baldrige
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needed in response to regulatory changes, other changes
in the political environment, innovations in organizational
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4.2 Information and Knowledge Management: How do you manage your information and
your organizational knowledge assets? (45 pts.)
a. Data and Information
(1) Quality HOW do you verify and ensure the quality of organizational data and information? HOW do you
P R O C ESS
manage electronic and other data and information to ensure their accuracy and validity, integrity and reliability,
and currency?
(2) Availability HOW do you ensure the availability of organizational data and information? HOW do you make
needed data and information available in a user-friendly format and timely manner to your WORKFORCE, suppliers,
PARTNERS, COLLABORATORS, and CUSTOMERS, as appropriate? HOW do you ensure that your information technol-
ogy systems are reliable and user-friendly?
b. Organizational Knowledge
(1) Knowledge Management HOW do you build and manage organizational KNOWLEDGE? HOW do you
• collect and transfer WORKFORCE knowledge;
• blend and correlate data from different sources to build new knowledge;
• transfer relevant knowledge from and to CUSTOMERS, suppliers, PARTNERS, and COLLABORATORS; and
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• assemble and transfer relevant knowledge for use in your INNOVATION and strategic planning PROCESSES?
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(2) Best Practices HOW do you share best practices in your organization? HOW do you identify internal and
external organizational units or operations that are HIGH PERFORMING? HOW do you identify best practices for
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sharing and implement them across your organization, as appropriate?
(3) Organizational LEARNING HOW do you use your knowledge and resources to embed LEARNING in the way
your organization operates? se
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Notes
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4.2a(2). Information technology systems include, for 4.2b(3). Embedding learning in the way your organization
example, physical devices and systems (hardware); software operates means that learning (1) is a part of everyday work;
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platforms and applications; and externally based information (2) results in solving problems at their source; (3) is focused
systems, such as those stored in the cloud or outside your on building and sharing knowledge throughout your orga-
organization’s control. nization; and (4) is driven by opportunities to bring about
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significant, meaningful change and to innovate.

4.2a(2). The security of your information technology sys-
tems is not addressed in this item. You should address this as For additional guidance on this item, see the Criteria
part of your overall security and cybersecurity management Commentary (https://www.nist.gov/baldrige/baldrige
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in item 6.2. -criteria-commentary).

4.2b(1). Blending and correlating data from different
sources may involve handling big data sets and disparate
types of data and information, such as data tables, video,
and text, and may involve data analytics and data science
techniques. Organizational knowledge constructed from
these data may be speculative and may reveal sensitive
information about organizations or individuals that must be
protected from use for any other purposes.

5 Workforce (85 pts.)
The WORKFORCE category asks HOW your organization assesses WORKFORCE CAPABILITY and CAPACITY needs and builds a
WORKFORCE environment that is conducive to HIGH PERFORMANCE. The category also asks HOW your organization engages, man-
ages, and develops your WORKFORCE to utilize its full potential in ALIGNMENT with your organization’s overall business needs.
5.1 Workforce Environment: How do you build an effective and supportive workforce
environment? (40 pts.)
a. WORKFORCE CAPABILITY and CAPACITY
(1) CAPABILITY and CAPACITY Needs HOW do you assess your WORKFORCE CAPABILITY and CAPACITY needs? HOW
P R O C ESS
do you assess the skills, competencies, certifications, and staffing levels you need?
(2) New WORKFORCE Members HOW do you recruit, hire, and onboard new WORKFORCE members? HOW do you
ensure that your WORKFORCE represents the diverse ideas, cultures, and thinking of your hiring and CUSTOMER
communities? HOW do you ensure the fit of new WORKFORCE members with your organizational culture?
(3) WORKFORCE Change Management HOW do you prepare your WORKFORCE for changing CAPABILITY and
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CAPACITY needs? HOW do you
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• balance the needs of your WORKFORCE and your organization to ensure continuity, prevent WORKFORCE reduc-
tions, and minimize the impact of any necessary reductions;
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• prepare for and manage any periods of WORKFORCE growth; and
• prepare your WORKFORCE for changes in organizational structure and WORK SYSTEMS, when needed?
(4) Work Accomplishment HOW do you organize and manage your WORKFORCE? HOW do you organize and
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manage your WORKFORCE to
• accomplish your organization’s work,
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• capitalize on your organization’s CORE COMPETENCIES,
• reinforce a CUSTOMER and business focus, and
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• exceed PERFORMANCE expectations?

b. WORKFORCE Climate
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(1) Workplace Environment HOW do you ensure workplace health, security, and accessibility for the
WORKFORCE? What are your PERFORMANCE MEASURES and improvement GOALS for your workplace environmental
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factors?
(2) WORKFORCE Benefits and Policies HOW do you support your WORKFORCE via services, benefits, and policies?
HOW do you tailor these to the needs of a diverse WORKFORCE and different WORKFORCE groups and SEGMENTS?
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Notes
5. Results related to workforce environment and engage- 5.1a(3). Preparing your workforce for changing capability
ment should be reported in item 7.3. People supervised by a and capacity needs might include training, education,
contractor should be addressed in categories 2 and 6 as part frequent communication, consideration of workforce
of your larger work system strategy and your internal work employment and employability, career counseling, and
processes. For organizations that also rely on volunteers, outplacement and other services.
workforce includes these volunteers.
5.1a(3), 5.1a(4). Organizing and managing your workforce
5.1a(1). Your assessment of workforce capability and may involve organizing the workforce for change as you
capacity needs should consider not only current needs, but address changes in technology, your external environment,
also future requirements based on the strategic objectives culture, or strategic objectives.
and action plans you identify in category 2 and the future
performance you discuss in 4.1c(1).

5.1b(1). Workplace accessibility maximizes productivity by different workplace environments, you should include these
eliminating barriers that can prevent people with disabilities differences in your response. You should address workplace
from working to their potential. A fully inclusive workplace safety in item 6.2 as part of your overall safety system.
is physically, technologically, and attitudinally accessible. For additional guidance on this item, see the Criteria
5.1b(1). If workplace environmental factors and their Commentary (https://www.nist.gov/baldrige/baldrige
performance measures or targets differ significantly for your -criteria-commentary).
5.2 Workforce Engagement: How do you engage your workforce for retention and
high performance? (45 pts.)
a. Assessment of WORKFORCE ENGAGEMENT
(1) Drivers of ENGAGEMENT HOW do you determine the KEY drivers of WORKFORCE ENGAGEMENT? HOW do you
P R O C ESS
determine these drivers for different WORKFORCE groups and SEGMENTS?
(2) Assessment of ENGAGEMENT HOW do you assess WORKFORCE ENGAGEMENT? What formal and informal assess-
ment methods and MEASURES do you use to determine WORKFORCE satisfaction and WORKFORCE ENGAGEMENT?
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HOW do these methods and MEASURES differ across WORKFORCE groups and SEGMENTS? HOW do you also use
other INDICATORS to assess and improve WORKFORCE ENGAGEMENT?
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b. Organizational Culture HOW do you foster an organizational culture that is characterized by open
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communication, HIGH PERFORMANCE, and an engaged WORKFORCE? HOW do you reinforce your organizational
culture? HOW do you ensure that your organizational culture supports your VISION and VALUES, and benefits from
the diverse ideas, cultures, and thinking of your WORKFORCE? HOW do you EMPOWER your WORKFORCE?
c. PERFORMANCE Management and Development
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(1) PERFORMANCE Management HOW does your WORKFORCE PERFORMANCE management system support HIGH
PERFORMANCE? HOW does it consider WORKFORCE compensation, reward, recognition, and incentive practices?
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HOW does it reinforce INTELLIGENT RISK taking, a CUSTOMER and business focus, and achievement of your ACTION
PLANS?
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(2) PERFORMANCE Development HOW does your LEARNING and development system support the personal
development of WORKFORCE members and your organization’s needs? HOW does it consider the LEARNING
and development desires of WORKFORCE members, support organizational PERFORMANCE improvement and
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INTELLIGENT RISK taking, and support ethics and ethical business practices?
(3) LEARNING and Development EFFECTIVENESS HOW do you evaluate the EFFECTIVENESS and efficiency of your
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LEARNING and development system? HOW do you
• correlate LEARNING and development outcomes with findings from your assessment of WORKFORCE
ENGAGEMENT and with KEY business RESULTS, and
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• use these correlations to identify opportunities for improvement both in WORKFORCE ENGAGEMENT and in
LEARNING and development offerings?
(4) Career Development HOW do you manage career development for your WORKFORCE and your future lead-
ers? HOW do you carry out succession planning for management, leadership, and other KEY positions?
Notes
5.2a(1). Drivers of workforce engagement (identified in 5.2a(2). Other indicators to use in assessing and improving
P.1a[3]) refer to the drivers of workforce members’ commit- workforce engagement might include workforce retention,
ment, both emotional and intellectual, to accomplishing the absenteeism, grievances, safety, and productivity.
organization’s work, mission, and vision.
5.2c(1). In some government organizations, compensation
systems are set by law or regulation; therefore, reward and
recognition systems must use other options.
5 Workforce 19
5.2c(2). Your response should include how you address reinforcement of new knowledge and skills on the job. Your
any considerations for workforce development, learning, response should also consider the breadth of development
and career progression that are unique to your organiza- opportunities you might offer, including education, training,
tion. These might include development opportunities that coaching, mentoring, and work-related experiences.
address your organization’s core competencies, strategic
challenges, and action plans; organizational change and
innovation; improvements in customer focus; and the
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6 Operations (85 pts.)
The Operations category asks HOW your organization designs, manages, improves, and innovates its products and WORK
PROCESSES and improves operational EFFECTIVENESS to deliver CUSTOMER VALUE and achieve ongoing organizational success.
6.1 Work Processes: How do you design, manage, and improve your key products and
work processes? (45 pts.)
a. Product and PROCESS Design
(1) Determination of Product and PROCESS Requirements HOW do you determine KEY product and WORK
P R O C ESS
PROCESS requirements?
(2) KEY WORK PROCESSES What are your organization’s KEY WORK PROCESSES? What are the KEY requirements for
these WORK PROCESSES?
(3) Design Concepts HOW do you design your products and WORK PROCESSES to meet requirements? HOW do
you incorporate new technology, organizational knowledge, product excellence, CUSTOMER VALUE, consideration
of risk, and the potential need for agility into these products and PROCESSES?
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b. PROCESS Management and Improvement
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(1) PROCESS Implementation HOW does your day-to-day operation of WORK PROCESSES ensure that they meet
KEY PROCESS requirements? What KEY PERFORMANCE MEASURES or INDICATORS and in-process MEASURES do you
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use to control and improve your WORK PROCESSES? HOW do these MEASURES relate to end-product quality and
PERFORMANCE MEASURES?
(2) Support PROCESSES HOW do you determine your KEY support PROCESSES? What are your KEY support
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PROCESSES? HOW does your day-to-day operation of these PROCESSES ensure that they meet KEY business
requirements?
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(3) Product and PROCESS Improvement HOW do you improve your WORK PROCESSES and support PROCESSES to
improve products and PROCESS PERFORMANCE, enhance your CORE COMPETENCIES, and reduce variability?
c. Supply-Network Management
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HOW do you manage your supply network? HOW do you select suppliers that are qualified and positioned to
meet your operational needs, enhance your PERFORMANCE, support your STRATEGIC OBJECTIVES, and enhance your
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CUSTOMERS’ satisfaction? HOW do you
• promote ALIGNMENT and collaboration within your supply network;

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• ensure supply-network agility in responding to changes in CUSTOMER, market, and organizational requirements;
and
• communicate PERFORMANCE expectations, measure and evaluate suppliers’ PERFORMANCE, provide feedback to
help them improve, and deal with poorly performing suppliers?
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d. INNOVATION Management
HOW do you pursue your opportunities for INNOVATION? HOW do you pursue the STRATEGIC OPPORTUNITIES that
you determine are INTELLIGENT RISKS? HOW do you make financial and other resources available to pursue these
opportunities? HOW do you decide to discontinue pursuing opportunities at the appropriate time?
Notes
6.1. The results of improvements in product and process to change as a result of overall work system changes, such
performance should be reported in item 7.1. as bringing a supply-network product or process in-house
to avoid disruptions in supply due to unpredictable external
6.1a(3). Process design also includes the need to extensively
events, or outsourcing a product or process formerly carried
redesign a process due to changes in requirements or other
out in-house.
factors. Agility may be needed when work processes need
6 Operations 21
6.1b(2). Your key support processes should support your or form alliances among multiple organizations within
value-creation processes. They might include processes that the supply network for mutual benefit. Communication of
support leaders and other workforce members engaged in, expectations and feedback to suppliers should be two-way,
for example, product design and delivery, customer interac- allowing suppliers to express what they need from you and
tions, and business and enterprise management. Examples other organizations within the supply network. For many
might include accounting and purchasing. organizations, these mechanisms may change as market-
place, customer, or stakeholder requirements change.
6.1b(3). Your approaches to improve process performance
and reduce variability should be part of the performance 6.1d. Your process for managing opportunities for innova-
improvement system you describe in P.2c in the Organiza- tion should capitalize on strategic opportunities identified in
tional Profile. 2.1a(2).
6.1c. To ensure that suppliers are positioned to meet For additional guidance on this item, see the Criteria
operational needs and enhance your performance and your Commentary (https://www.nist.gov/baldrige/baldrige
customers’ satisfaction, you might partner with suppliers -criteria-commentary).
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6.2 Operational Effectiveness: How do you ensure effective management of your
operations? (40 pts.)
a. PROCESS Efficiency and EFFECTIVENESS
HOW do you manage the cost, efficiency, and EFFECTIVENESS of your operations? HOW do you
P R O C ESS
• incorporate CYCLE TIME, PRODUCTIVITY, and other efficiency and EFFECTIVENESS factors into your WORK
PROCESSES;
• prevent defects, service errors, and rework;
• minimize warranty costs or CUSTOMERS’PRODUCTIVITY losses, as appropriate;
• minimize the costs of inspections, tests, and PROCESS or PERFORMANCE audits, as appropriate; and
• balance the need for cost control and efficiency with the needs of your CUSTOMERS?
b. Security and Cybersecurity
HOW do you ensure the security and cybersecurity of sensitive or privileged data and information and of
KEY assets? HOW do you manage physical and electronic data, information, and KEY operational systems to ensure
confidentiality and only appropriate physical and electronic access? HOW do you
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• maintain your awareness of emerging security and cybersecurity threats;
• ensure that your WORKFORCE, CUSTOMERS, PARTNERS, and suppliers understand and fulfill their security and
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cybersecurity roles and responsibilities;
• identify and prioritize KEY information technology and operational systems to secure; and
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• protect these systems from potential cybersecurity events, detect cybersecurity events, and respond to and
recover from cybersecurity incidents?
c. Safety and Emergency Preparedness
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(1) Safety HOW do you provide a safe operating environment? HOW does your safety system address accident
prevention, inspection, root-cause ANALYSIS of failures, and recovery?
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(2) Business Continuity HOW do you ensure that your organization is prepared for disasters or emergencies?
HOW does your disaster and emergency preparedness system consider prevention, continuity of operations, and
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recovery? HOW does your disaster and emergency preparedness system take into account your reliance on your
WORKFORCE, supply network, and PARTNERS? HOW do you ensure that your information technology systems
continue to be secure and available to serve CUSTOMERS and meet business needs?
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Notes
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6.2b. For examples of what your information technology 6.2c(2). Disasters and emergencies might be related to
systems might include, see the note to 4.2a(2). weather, climate, utilities, security, or a local or national
emergency. The extent to which you prepare for disasters
6.2b. Managing cybersecurity includes protecting against
or emergencies will depend on your organization’s
the loss of sensitive information about employees, custom-
environment and its sensitivity to disruptions of operations.
ers, and organizations; protecting assets, including intellec-
Acceptable levels of risk will vary depending on the nature
tual property; and protecting against the financial, legal, and
of your products, services, supply network, and stakeholder
reputational aspects of breaches. There are many sources for
needs and expectations.
general and industry-specific cybersecurity standards and
practices. Many are referenced in the Framework for Improv- For additional guidance on this item, see the Criteria
ing Critical Infrastructure Cybersecurity (https://www.nist Commentary (https://www.nist.gov/baldrige/baldrige
.gov/cyberframework). The Baldrige Cybersecurity Excellence -criteria-commentary).
Builder (https://www.nist.gov/baldrige/products-services)
is a self-assessment tool incorporating the concepts of
the Cybersecurity Framework and the Baldrige systems
perspective.
6 Operations 23
7 Results (450 pts.)
The RESULTS category asks about your organization’s PERFORMANCE and improvement in all KEY areas—product and PROCESS
RESULTS; CUSTOMER RESULTS; WORKFORCE RESULTS; leadership and GOVERNANCE RESULTS; and financial, market, and strategy
RESULTS.
7.1 Product and Process Results: What are your product performance and process
effectiveness results? (120 pts.)
a. CUSTOMER-Focused Product and Service RESULTS
What are your RESULTS for your products and your CUSTOMER service PROCESSES? What are your RESULTS for
R E S U LT S
KEY MEASURES or INDICATORS of the PERFORMANCE of products and services that are important to and directly serve
your CUSTOMERS? How do these RESULTS differ by product offerings, CUSTOMER groups, and market SEGMENTS, as
appropriate?
b. WORK PROCESS EFFECTIVENESS RESULTS
(1) PROCESS EFFECTIVENESS and Efficiency What are your PROCESS EFFECTIVENESS and efficiency results? What are
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your RESULTS for KEY MEASURES or INDICATORS of the operational PERFORMANCE of your KEY WORK and support
PROCESSES, including PRODUCTIVITY, CYCLE TIME, and other appropriate MEASURES of PROCESS EFFECTIVENESS,
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efficiency, security and cybersecurity, and INNOVATION? How do these RESULTS differ by PROCESS types, as
appropriate?
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(2) Safety and Emergency Preparedness What are your safety and emergency preparedness RESULTS? What
are your RESULTS for KEY MEASURES or INDICATORS of the EFFECTIVENESS of your organization’s safety system
and its preparedness for disasters or emergencies? How do these RESULTS differ by location or PROCESS type, as
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appropriate?
c. Supply-Network Management RESULTS
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What are your supply-network management RESULTS? What are your RESULTS for KEY MEASURES or INDICATORS of
the PERFORMANCE of your supply network, including its contribution to enhancing your PERFORMANCE?
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Notes
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7. There is not a one-to-one correspondence between and by seeking competitive comparisons. In a few cases,
results items and Criteria categories 1–6. Results should be such as results for projects or processes that are unique to
considered systemically, with contributions to individual your organization, comparative data may not be available or
results items frequently stemming from processes in more appropriate.
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than one Criteria category.

7.1a. Results for your products and customer service
The Baldrige scoring system (pages 29–34) asks for current, processes should relate to the key customer requirements
trended, comparative, and segmented data, as appropriate, and expectations you identify in P.1b(2), which are based
to provide key information for analyzing and reviewing your on information gathered through processes you describe
organizational performance (item 4.1), to demonstrate use in category 3. The measures or indicators should address
of organizational knowledge (item 4.2), and to provide the factors that affect customer preference, such as those listed
operational basis for customer-focused results (item 7.2) and in the notes to P.1b(2) and 3.1b.
financial, market, and strategy results (item 7.5).
7.1a. For some nonprofit (including government) organiza-
In a few areas, your results may be qualitative in nature or tions, funding sources might mandate product or service
not amenable to trending over time. Some examples are performance measures. These measures should be identified and
results for governance accountability, training hours for sup- reported here.
pliers on new products or processes, and results for limited 7.1b. Results should address the key operational require-
or one-time projects or processes. ments you identify in the Organizational Profile and in
Comparative data and information are obtained by bench- category 6.
marking (inside and outside your industry, as appropriate)

7.1b. Appropriate measures and indicators of work process 7.1c. Appropriate measures and indicators of supply-
effectiveness might include defect rates; rates and results network performance might include supplier and partner
of product, service, and work system innovation; results for audits; just-in-time delivery; and acceptance results for
simplification of internal jobs and job classifications; waste externally provided products, services, and processes.
reduction; work layout improvements; changes in supervi- Measures and indicators of contributions to enhancing your
sory ratios; Occupational Safety and Health Administration performance might include those for improvements in sub-
(OSHA)-reportable incidents; measures or indicators of the assembly performance and in supplier services to customers.
success of emergency drills or simulations, such as cycle For additional guidance on this item, see the Criteria
time, containment, and meeting of standards; and results for Commentary (https://www.nist.gov/baldrige/baldrige
work relocation or contingency exercises. -criteria-commentary).
7.2 Customer Results: What are your customer-focused performance results? (80 pts.)
a. CUSTOMER-Focused RESULTS
(1) CUSTOMER Satisfaction What are your CUSTOMER satisfaction and dissatisfaction RESULTS? What are your
R E S U LT S
RESULTS for KEY MEASURES or INDICATORS of CUSTOMER satisfaction and dissatisfaction? How do these RESULTS
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differ by product offerings, CUSTOMER groups, and market SEGMENTS, as appropriate?
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(2) CUSTOMER ENGAGEMENT What are your CUSTOMER ENGAGEMENT RESULTS? What are your RESULTS for KEY
MEASURES or INDICATORS of CUSTOMER ENGAGEMENT, including those for building CUSTOMER relationships?
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How do these RESULTS compare over the course of your CUSTOMER life cycle, as appropriate? How do these
RESULTS differ by product offerings, CUSTOMER groups, and market SEGMENTS, as appropriate?
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Note
7.2. Results for customer satisfaction, dissatisfaction, and For additional guidance on this item, see the Criteria
engagement should relate to the customer groups and Commentary (https://www.nist.gov/baldrige/baldrige
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market segments you identify in P.1b(2) and the listening -criteria-commentary).

and determination methods you report in category 3.
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7 Results 25
7.3 Workforce Results: What are your workforce-focused performance results? (80 pts.)
a. WORKFORCE-Focused RESULTS
(1) WORKFORCE CAPABILITY and CAPACITY What are your WORKFORCE CAPABILITY and CAPACITY RESULTS? What are
R E S U LT S
your RESULTS for KEY MEASURES of WORKFORCE CAPABILITY and CAPACITY, including appropriate skills and staffing
levels? How do these RESULTS differ by the DIVERSITY of your WORKFORCE and by your WORKFORCE groups and
SEGMENTS, as appropriate?
(2) WORKFORCE Climate What are your WORKFORCE climate RESULTS? What are your RESULTS for KEY MEASURES or
INDICATORS of your WORKFORCE climate, including those for WORKFORCE health, security, accessibility, and services
and benefits, as appropriate? How do these RESULTS differ by the DIVERSITY of your WORKFORCE and by your
WORKFORCE groups and SEGMENTS, as appropriate?
(3) WORKFORCE ENGAGEMENT What are your WORKFORCE ENGAGEMENT RESULTS? What are your RESULTS for KEY
MEASURES or INDICATORS of WORKFORCE satisfaction and WORKFORCE ENGAGEMENT? How do these RESULTS differ
by the DIVERSITY of your WORKFORCE and by your WORKFORCE groups and SEGMENTS, as appropriate?
(4) WORKFORCE Development What are your WORKFORCE and leader development RESULTS? What are your
RESULTS for KEY MEASURES or INDICATORS of WORKFORCE and leader development? How do these RESULTS differ
by the DIVERSITY of your WORKFORCE and by your WORKFORCE groups and SEGMENTS, as appropriate?
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Notes
7.3. Results reported in this item should relate to the seFor additional guidance on this item, see the Criteria
processes, measures, and indicators you report in category 5. Commentary (https://www.nist.gov/baldrige/baldrige
Your results should also respond to the key work process -criteria-commentary).
needs you report in category 6 and to the action plans and
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workforce plans you report in item 2.2. Organizations that
rely on volunteers or interns should report results for them,
as appropriate.
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7.4 Leadership and Governance Results: What are your senior leadership and governance
results? (80 pts.)
a. Leadership, GOVERNANCE, and Societal Contribution RESULTS
(1) Leadership What are your RESULTS for SENIOR LEADERS’ communication and engagement with the WORKFORCE,
R E S U LT S
PARTNERS, and CUSTOMERS? What are your RESULTS for KEY MEASURES or INDICATORS of SENIOR LEADERS’ com-
munication and engagement with the WORKFORCE, PARTNERS, and CUSTOMERS to DEPLOY your VISION and VALUES,
encourage two-way communication, and create a focus on action? How do these RESULTS differ by organizational
units and CUSTOMER groups, as appropriate?
(2) GOVERNANCE What are your RESULTS for GOVERNANCE accountability? What are your RESULTS for KEY MEASURES
or INDICATORS of GOVERNANCE and internal and external fiscal accountability, as appropriate?
(3) Law and Regulation What are your legal and regulatory RESULTS? What are your RESULTS for KEY MEASURES
or INDICATORS of meeting and surpassing regulatory and legal requirements? How do these RESULTS differ by
organizational units, as appropriate?
(4) Ethics What are your RESULTS for ETHICAL BEHAVIOR? What are your RESULTS for KEY MEASURES or INDICATORS
of ETHICAL BEHAVIOR, breaches of ETHICAL BEHAVIOR, and STAKEHOLDER trust in your SENIOR LEADERS and
GOVERNANCE? How do these RESULTS differ by organizational units, as appropriate?
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(5) Society What are your RESULTS for societal well-being and support of your KEY communities? What are your
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RESULTS for KEY MEASURES or INDICATORS of your societal contributions and support of your KEY communities?
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Notes
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7.4. Responses should relate to the communication pro- 7.4a(4). For examples of measures of ethical behavior and
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cesses you identify in item 1.1 and the governance, legal and stakeholder trust, see the note to 1.2b(2).
regulatory, ethics, and societal contribution processes and 7.4a(5). Measures of contributions to societal well-being
measures you report in item 1.2. Workforce-related occu- might include those for reduced energy consumption, the
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pational safety and health results (e.g., OSHA-reportable use of renewable energy resources and recycled water,
incidents) should be reported in 7.1b(2) and 7.3a(2). reduction of your carbon footprint, waste reduction and
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7.4a(2). Responses might include financial statement utilization, alternative approaches to conserving resources
issues and risks, important internal and external auditor (e.g., increased virtual meetings), and the global use of
recommendations, and management’s responses to these enlightened labor practices.
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matters. Some nonprofit organizations might also report results For additional guidance on this item, see the Criteria
of IRS 990 audits. Commentary (https://www.nist.gov/baldrige/baldrige
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7 Results 27
7.5 Financial, Market, and Strategy Results: What are your results for financial viability
and strategy implementation? (90 pts.)
a. Financial and Market RESULTS
(1) Financial PERFORMANCE What are your financial PERFORMANCE RESULTS? What are your RESULTS for KEY
R E S U LT S
MEASURES or INDICATORS of financial PERFORMANCE, including aggregate MEASURES of financial return, financial
viability, and budgetary PERFORMANCE, as appropriate? How do these RESULTS differ by market SEGMENTS and
CUSTOMER groups, as appropriate?
(2) Marketplace PERFORMANCE What are your marketplace PERFORMANCE RESULTS? What are your RESULTS for
KEY MEASURES or INDICATORS of marketplace PERFORMANCE, including market share or position, market and
market share growth, and new markets entered, as appropriate? How do these RESULTS differ by market SEGMENTS
and CUSTOMER groups, as appropriate?
b. Strategy Implementation RESULTS
What are your RESULTS for the achievement of your organizational strategy and ACTION PLANS? What are your
RESULTS for KEY MEASURES or INDICATORS of the achievement of your organizational strategy and ACTION PLANS? What
are your RESULTS for taking INTELLIGENT RISKS?
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Notes
7.5a. Results should relate to the financial measures you 7.5a(2). For nonprofit organizations, responses might include
report in 4.1a(1) and the financial management approaches semeasures of charitable donations or grants and the number of
you report in item 2.2. new programs or services offered.
7.5a(1). Aggregate measures of financial return might 7.5b. Measures or indicators of strategy and action plan
include those for return on investment (ROI), operating achievement should relate to the strategic objectives and
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margins, profitability, or profitability by market segment goals you report in 2.1b(1), the elements of risk you report
or customer group. Measures of financial viability might in 2.1a(3), and the action plan performance measures and
include those for liquidity, debt-to-equity ratio, days cash on projected performance you report in 2.2a(5) and 2.2a(6),
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hand, asset utilization, and cash flow. For nonprofit (includ- respectively.
ing government) organizations, measures of performance to
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budget might include additions to or subtractions from reserve

funds; cost avoidance or savings; responses to budget decreases;
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lowering of costs to customers or return of funds as a result of

increased efficiency; administrative expenditures as a percent-
age of budget; and the cost of fundraising versus funds raised.
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Scoring System
The scoring of responses to Baldrige Criteria for Performance Excellence items is based on two
evaluation dimensions: process (categories 1–6) and results (category 7).
To score Criteria responses, consider the following informa- • the sharing of refinements and innovations with
tion relative to the item questions and the scoring guidelines other relevant work units and processes in your
(pages 32–33): organization.
• The key business factors presented in the Organiza- See “From Fighting Fires to Innovation” on page 34, which
tional Profile illustrates a progression through the maturity levels for this
scoring dimension.
• The maturity and appropriateness of the approaches,
the breadth of their deployment, and the strengths of Integration is the extent to which
the learning and improvement process
• your approach is aligned with the organizational
• The level of performance and how results compare to needs identified in the Organizational Profile and
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those of other, relevant organizations or benchmarks other process items;
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• your measures, information, and improvement
Scoring Dimensions systems are complementary across processes and work
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units; and
Process
• your plans, processes, results, analyses, learning, and
Process refers to the methods your organization uses and se actions are harmonized across processes and work
improves. Processes address the questions in categories units to support organization-wide goals.
1–6. The four factors used to evaluate process are approach,
deployment, learning, and integration (ADLI). Baldrige-based In scoring process items, keep in mind that approach,
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feedback reflects strengths and opportunities for improve- deployment, learning, and integration are linked. Descrip-
ment in these factors. A score for a process item is based on tions of approach should always indicate the deployment—
a holistic assessment of your overall performance, taking consistent with the specific questions in the item and your
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into account the four process factors. organization. As processes mature, the description should
also show cycles of learning (including innovation), as well
Approach comprises as integration with other processes and work units (see
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• the methods used to carry out the process, “Steps toward Mature Processes,” page 31).
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• the appropriateness of these methods to the item Results

questions and your operating environment,
Results are the outputs and outcomes your organization
• the effectiveness of your use of the methods, and achieves, which address the questions in category 7. The
four factors used to evaluate results are levels, trends,
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• the degree to which the approach is repeatable

comparisons, and integration (LeTCI). A score for a results
and based on reliable data and information
item is based on a holistic assessment of your overall perfor-
(i.e., systematic).
mance, taking into account the four results factors.
Deployment is the extent to which
Levels are your current performance on a meaningful
• your approach addresses item questions that are measurement scale.
relevant and important to your organization,
Trends comprise your rate of performance improvement or
• your approach is applied consistently, and continuation of good performance in areas of importance
(i.e., the slope of data points over time).
• your approach is used by all appropriate work units.
Comparisons comprise your performance relative to that
Learning comprises
of other, appropriate organizations, such as competitors or
• the refinement of your approach through cycles of organizations similar to yours, or benchmarks.
evaluation and improvement,
Integration is the extent to which your results measures
• the encouragement of breakthrough change to your (often through segmentation) address important per-
approach through innovation, and formance requirements relating to customers, products,
Scoring System 29
markets, processes, action plans, and organization-wide
goals identified in your Organizational Profile and in
How to Score an Item Response
process items. Follow these steps in assigning a score to an item response.
In the scoring of results items, look for data on performance Read the scoring guidelines (pages 32–33).
levels, trends, and relevant comparisons for key measures Choose the scoring range (e.g., 30–45%, 50–65%, or
and indicators of your organization’s performance, as well 70–85%) that is most descriptive of the organization’s
as integration with your organization’s key requirements. achievement level as presented in the item response.
Results items should also show data on the breadth of the
performance results reported. This is directly related to Choose this range based on a holistic view of either the four
deployment and organizational learning; if improvement process factors (ADLI) or the four results factors (LeTCI) in
processes are widely shared and deployed, there should be aggregate. In this holistic view, the scoring range to assign
corresponding results. is the one that best reflects the applicant’s response as a
whole; do not tally or average independent assessments of
each of the four factors. No one evaluation factor serves as a
“Importance” as a “gate” that keeps the score out of a higher range.
Scoring Consideration The “most descriptive” range is not necessarily a perfect
A critical consideration in Baldrige evaluation and feedback fit. It often reflects some gaps between the response and
is the importance of your reported processes and results to the description of one or more of the factors in the chosen
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your key business factors. The areas of greatest importance scoring range.
should be identified in your Organizational Profile and
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Read the next higher and the next lower scoring ranges.
in items such as 2.1, 2.2, 3.2, 5.1, 5.2, and 6.1. Your key
Assign a score (e.g., 75% or 80%) within the chosen range
customer requirements, competitive environment, workforce
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by evaluating whether the item response as a whole is
needs, key strategic objectives, and action plans are particu-
closer to the statements in the next higher or the next lower
larly important.
scoring range.
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Steps toward Mature Processes
An Aid for Assessing and Scoring Process Items
Reacting to Problems Strategic

(0–25%) and Operational
Goals
Operations are characterized by activities rather than by processes, and

they are largely responsive to immediate needs or problems. Goals are
poorly defined.
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Early Systematic
Strategic and
Approaches Operational
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(30–45%) Goals
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The organization is beginning to carry out operations with repeatable
processes, evaluation, and improvement, and there is some early coordination
among organizational units. Strategy and quantitative goals are being defined.
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Aligned Strategic
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and Operational
Approaches
Goals
(50–65%)
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Operations are characterized by repeatable processes that are regularly

evaluated for improvement. Learnings are shared, and there is coordination
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among organizational units. Processes address key strategies and goals.
Integrated Strategic
Approaches and Operational
Goals
(70–100%)
Operations are characterized by repeatable processes that are regularly

evaluated for change and improvement in collaboration with other affected
units. The organization seeks and achieves efficiencies across units through
analysis, innovation, and the sharing of information and knowledge.
Processes and measures track progress on key strategic and operational goals.
Scoring System 31
Process Scoring Guidelines (For Use with Categories 1–6)
SCORE DESCRIPTION
• No SYSTEMATIC APPROACH to item questions is evident; information is ANECDOTAL. (A)

• Little or no DEPLOYMENT of any SYSTEMATIC APPROACH is evident. (D)
0% or 5%
• An improvement orientation is not evident; improvement is achieved by reacting to problems. (L)
• No organizational ALIGNMENT is evident; individual areas or work units operate independently. (I)
• The beginning of a SYSTEMATIC APPROACH to the BASIC QUESTION in the item is evident. (A)
• The APPROACH is in the early stages of DEPLOYMENT in most areas or work units, inhibiting progress in
10%, 15%, achieving the BASIC QUESTION in the item. (D)
20%, or 25% • Early stages of a transition from reacting to problems to a general improvement orientation are
evident. (L)
• The APPROACH is ALIGNED with other areas or work units largely through joint problem solving. (I)
• An EFFECTIVE, SYSTEMATIC APPROACH, responsive to the BASIC QUESTION in the item, is evident. (A)
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• The APPROACH is DEPLOYED, although some areas or work units are in early stages of DEPLOYMENT. (D)
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30%, 35%, • The beginning of a SYSTEMATIC APPROACH to evaluation and improvement of KEY PROCESSES is
40%, or 45% evident. (L)
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• The APPROACH is in the early stages of ALIGNMENT with the basic organizational needs identified in
response to the Organizational Profile and other process items. (I)
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• An EFFECTIVE, SYSTEMATIC APPROACH, responsive to the OVERALL QUESTIONS in the item, is evident. (A)
• The APPROACH is well DEPLOYED, although DEPLOYMENT may vary in some areas or work units. (D)
• A fact-based, SYSTEMATIC evaluation and improvement PROCESS and some organizational LEARNING,
50%, 55%,
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including some INNOVATION, are in place for improving the efficiency and EFFECTIVENESS of
60%, or 65%
KEY PROCESSES. (L)
• The APPROACH is ALIGNED with your overall organizational needs as identified in response to the
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Organizational Profile and other process items. (I)
• An EFFECTIVE, SYSTEMATIC APPROACH, responsive to MULTIPLE QUESTIONS in the item, is evident. (A)
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• The APPROACH is well DEPLOYED, with no significant gaps. (D)

• Fact-based, SYSTEMATIC evaluation and improvement and organizational LEARNING, including
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70%, 75%,
INNOVATION, are KEY management tools; there is clear evidence of refinement as a result of
80%, or 85%
organizational-level ANALYSIS and sharing. (L)
• The APPROACH is INTEGRATED with your current and future organizational needs as identified in
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• An EFFECTIVE, SYSTEMATIC APPROACH, fully responsive to the MULTIPLE QUESTIONS in the item, is
evident. (A)
• The APPROACH is fully DEPLOYED without significant weaknesses or gaps in any areas or work units. (D)
90%, 95%, • Fact-based, SYSTEMATIC evaluation and improvement and organizational LEARNING through
or 100% INNOVATION are KEY organization-wide tools; refinement and INNOVATION, backed by ANALYSIS and
sharing, are evident throughout the organization. (L)
• The APPROACH is well INTEGRATED with your current and future organizational needs as identified in

Results Scoring Guidelines (For Use with Category 7)
SCORE DESCRIPTION
• There are no organizational PERFORMANCE RESULTS, or the RESULTS reported are poor. (Le)
• TREND data either are not reported or show mainly adverse TRENDS. (T)
0% or 5% • Comparative information is not reported. (C)
• RESULTS are not reported for any areas of importance to the accomplishment of your organization’s
MISSION. (I)
• A few organizational PERFORMANCE RESULTS are reported, responsive to the BASIC QUESTION in the item,
and early good PERFORMANCE LEVELS are evident. (Le)
10%, 15%, • Some TREND data are reported, with some adverse TRENDS evident. (T)
20%, or 25% • Little or no comparative information is reported. (C)
• RESULTS are reported for a few areas of importance to the accomplishment of your organization’s
MISSION. (I)
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• Good organizational PERFORMANCE LEVELS are reported, responsive to the BASIC QUESTION in the item.
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(Le)
30%, 35%, • Some TREND data are reported, and most of the TRENDS presented are beneficial. (T)
40%, or 45% • Early stages of obtaining comparative information are evident. (C)
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• RESULTS are reported for many areas of importance to the accomplishment of your organization’s
MISSION. (I)
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• Good organizational PERFORMANCE LEVELS are reported, responsive to the OVERALL QUESTIONS in the
item. (Le)
• Beneficial TRENDS are evident in areas of importance to the accomplishment of your organization’s
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50%, 55%, MISSION. (T)
60%, or 65% • Some current PERFORMANCE LEVELS have been evaluated against relevant comparisons and/or
BENCHMARKS and show areas of good relative PERFORMANCE. (C)
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• Organizational PERFORMANCE RESULTS are reported for most KEY CUSTOMER, market, and PROCESS
requirements. (I)
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• Good-to-excellent organizational PERFORMANCE LEVELS are reported, responsive to MULTIPLE

QUESTIONS in the item. (Le)
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• Beneficial TRENDS have been sustained over time in most areas of importance to the accomplishment of
your organization’s MISSION. (T)
70%, 75%,
• Many to most TRENDS and current PERFORMANCE LEVELS have been evaluated against relevant
80%, or 85%
comparisons and/or BENCHMARKS and show areas of leadership and very good relative
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PERFORMANCE. (C)
• Organizational PERFORMANCE RESULTS are reported for most KEY CUSTOMER, market, PROCESS, and
ACTION PLAN requirements. (I)
• Excellent organizational PERFORMANCE LEVELS are reported that are fully responsive to the MULTIPLE
QUESTIONS in the item. (Le)
• Beneficial TRENDS have been sustained over time in all areas of importance to the accomplishment of
90%, 95%,
your organization’s MISSION. (T)
or 100%
• Industry and BENCHMARK leadership is demonstrated in many areas. (C)
• Organizational PERFORMANCE RESULTS and PROJECTIONS are reported for most KEY CUSTOMER, market,
PROCESS, and ACTION PLAN requirements. (I)
Scoring System 33
From Fighting Fires to Innovation: An Analogy for Learning
1
Learning is an essential attribute of high-
performing organizations. Effective, well-deployed
organizational learning can help an organization
improve from the early stages of reacting to
problems to the highest levels of organization-
wide improvement, refinement, and innovation.
Reacting to the problem (0–5%)

Run with the hose and put out the fire.
2 3
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General improvement orientation (10–25%) Systematic evaluation and improvement (30–45%)
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Install more fire hoses to get to the fires quickly Evaluate which locations are most susceptible to fire.
and reduce their impact. Install heat sensors and sprinklers in those locations.
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4 5
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Learning and strategic improvement (50–65%) Organizational analysis and innovation (70–100%)
Install systemwide heat sensors and a sprinkler system Use fireproof and fire-retardant materials. Replace combustible
that is activated by the heat preceding fires. liquids with water-based liquids. Prevention is the primary
approach for protection, with sensors and sprinklers as the
secondary line of protection. This approach has been shared
with all facilities and is practiced in all locations.

How to Respond to the Criteria
These guidelines explain how to respond most effectively to the questions in the 17 process and
results Criteria items. This information is intended mainly for applicants for Baldrige-based
awards, but it is also useful to organizations that are using the Criteria for self-assessment. See also
the Scoring System, including the scoring guidelines (pages 29–34), which describes how to assess
responses and determine your organization’s performance accomplishments.
First Steps performance management system, and the results of the

improvement process. The “goodness” of your responses to
the Criteria questions is determined through consideration
1. Learn about the Baldrige framework.
of the evaluation dimensions (ADLI/LeTCI; see “Respond-
Become familiar with the following sections, which provide ing to Process Items” and “Responding to Results Items”
a full orientation to the Baldrige framework: below).
• Criteria for Performance Excellence (pages 4–28)
4. Understand the meaning of key terms.
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• Scoring System (pages 29–34)
Many terms in the Criteria and scoring guidelines have
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• Glossary of Key Terms (pages 46–53) meanings that may differ somewhat from common mean-
ings. When this is the case, the term is printed in SMALL
• Criteria Commentary (https://www.nist.gov/baldrige
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CAPS and defined in the Glossary of Key Terms (pages
/baldrige-criteria-commentary)
46–53). Understanding these terms can help you accurately
self-assess your organization and communicate your
2. Understand how to read and se
processes and results to those reviewing your responses and
respond to a Criteria item. planning your improvement efforts.
Review the Criteria for Performance Excellence Structure
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(page 2), which shows the types of items, the different parts 5. Start with the Organizational Profile.
of the items, and the role of each part. Pay particular atten-
The Organizational Profile (pages 4–6) is the most appropri-
tion to the multiple questions within the areas to address
ate starting point. Whether you are using the Criteria as a
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and the notes.

leadership and management guide, or for self-assessment,
Some item questions include multiple parts. To respond writing an application, or reviewing either of these, the
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fully, address all the questions, as missing information will Organizational Profile helps you understand what is most
be interpreted as a gap in your performance management relevant and important to your organization’s business,
system. Taken together, the multiple questions express the mission, and performance.
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full meaning of the area to address. In responding, you may

want to group responses to these questions in a way that is
appropriate to your organization. You do not need to answer
Responding to Process Items
each question separately. Although the Criteria focus on key organizational
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performance results, these results by themselves offer little

3. Review the scoring guidelines. diagnostic value. For example, if some results are poor or are
Consider both the Criteria and the scoring guidelines (pages improving at rates slower than your competitors’ or com-
32–33) as you prepare your responses. In responding to parable organizations’ results, you need to understand why
the questions in the process items (categories 1–6), include this is so and what you might do to accelerate improvement.
information on the process evaluation factors in the scoring Your responses to process items (categories 1–6) permit
guidelines: the maturity of your approaches, the extent of you or those who are reviewing your responses to diagnose
their deployment, the extent of learning, and the extent your organization’s most important processes—the ones
of integration with other elements of your performance that contribute most to organizational performance
management system. improvement and result in key outcomes or performance
Similarly, in responding to the questions in the results items results. This diagnosis and the quality of the feedback you
(category 7), include information on the results evaluation receive depend heavily on the content and completeness of
factors in the scoring guidelines: the actual performance your responses. For this reason, respond to these items by
levels, the significance of the results trends, relevant com- providing information on your key processes. Guidelines for
parative data, integration with important elements of your organizing and reviewing such information follow.
How to Respond to the Criteria 35

1. Understand the meaning of how. Responding to Results Items
In responding to questions in process items that begin with
how, give information on your key processes with regard 1. Focus on your organization’s
to approach, deployment, learning, and integration (ADLI; most critical performance results.
see the Scoring System, page 29). Responses lacking such Report results that cover the most important requirements
information, or merely providing an example, are referred to for your organization’s success, as highlighted in the
in the scoring guidelines as anecdotal information. Organizational Profile and in the Leadership, Strategy,
Show that approaches are systematic. Systematic approaches Customers, Workforce, and Operations categories.
are repeatable and use data and information to enable learn-
ing. In other words, approaches are systematic if they build in 2. Report levels, trends, and
the opportunity for evaluation, improvement, innovation, and comparisons, and show integration.
knowledge sharing, thereby enabling a gain in maturity. Report performance levels on a meaningful measurement
Show deployment. In your responses, summarize how scale.
your approaches are implemented in different parts of your Report trends to show the directions of results and rates
organization. of change in areas of importance. A minimum of three
Show evidence of learning. Give evidence of evaluation historical data points is generally needed to ascertain the
and improvement cycles for processes, as well as the beginnings of a trend. Trends represent historic and current
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potential for innovation. Show that process improvements performance, not projected (future) performance.
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are shared with other appropriate units of your organization There is no minimum period for trend data; time intervals
to enable organizational learning. between data points should be meaningful for the
measure(s) you report. Trends might span five or more years
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Show integration. Integration is alignment and harmo-
nization among processes, plans, measures, actions, and or less than one year, depending on what is meaningful. For
results. This harmonization greatly increases organizational important results, include new data even if trends are not
effectiveness and efficiencies. yet well established. Explain trends that show a significant
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beneficial or adverse change.
Showing alignment in the process items and tracking
corresponding measures in the results items should improve Report comparisons to show how your results compare
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organizational performance. In your responses, show align- with those of other, appropriately selected organizations or
ment in four areas: benchmarks.
Show integration by including all results that are important
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• In the Organizational Profile, make clear what is

important to your organization. to your organization and segmenting them appropriately
(e.g., by important customer, workforce, process, and
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• In Strategy (category 2), including the strategic objec- product-line groups, usually outlined in the Organizational
tives, action plans, and core competencies, highlight Profile).
your organization’s areas of greatest focus and
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describe how you deploy your strategic plan.

Responding Efficiently
• In describing organizational-level analysis and review
(item 4.1), show how you analyze and review perfor- 1. Cross-reference when appropriate.
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mance information as a basis for setting priorities. Ensure that each item response is as self-contained as
• In Strategy (category 2) and Operations (category 6), possible and that responses to different items are mutually
highlight the work systems and work processes that reinforcing. To accomplish this, refer to other responses
are key to your organization’s overall performance. rather than repeat information. In such cases, give key pro-
cess information in the item requesting that information. For
2. Understand the meaning of what. example, you would describe workforce development and
learning systems in item 5.2. Discussions about workforce
What questions set the context for showing alignment
development and learning elsewhere in your application
and integration in your performance management system.
would then reference but not repeat details given in
For example, when you identify key strategic objectives,
item 5.2.
your action plans, some performance measures, and some
results in category 7 are expected to relate to those strategic
objectives.
2. Use a compact format.
To make the best use of space, use flowcharts, tables, and
Two types of questions in process items begin with what. lists to present information concisely. Page limits for Baldrige
The first requests basic information on key processes and Award and Baldrige-based award applications are designed
how they work. The second asks you to report key findings, to force your organization to consider what is most impor-
plans, objectives, goals, or measures. tant in managing your enterprise and reporting your results.

3. Use graphs and tables. • The organization projects improved performance,
You can report many results compactly by using graphs including discontinuous or breakthrough improve-
and tables. When you report results over time or compare ment in 2019 relative to prior performance for product
them with others, “normalize” them (i.e., present them in line B. The text should explain this breakthrough
a way—for example, as ratios—that takes size factors into change and might refer to critical learning from
account). For example, if the number of employees has product line A as the basis for the projected change.
varied over the period or if you are comparing your results Interpreting the graph with the scoring guidelines in mind
to those of organizations differing in size, safety trends will would result in the following observations on the organiza-
be more meaningful if you report them as lost workdays per tion’s performance and maturity level:
100 employees rather than as total lost workdays.
• The current overall organizational performance level
The graph below shows one part of a possible response to is excellent. This conclusion is supported by company
item 7.1, Product and Process Results. In the Organizational performance trends, the comparison with industry
Profile, the organization has identified Six Sigma as a key competitors, and a “world-class” level for product
element of its performance improvement system. Defects line A.
per million opportunities is one of its measures.
• The overall organization shows beneficial improve-
The graph illustrates a number of characteristics of clear and ment trends sustained over time.
effective results reporting:
• Product line A is the current performance leader—
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• Both axes and units of measure are clearly labeled. showing sustained high performance (at approxi-
mately 5 defects per million) since 2015. Product
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• Levels and trends are reported for a key performance
measure—defects per million opportunities. line B shows rapid improvement. Its performance is
close to that of the best industry competitor but trails
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• Results are presented for several years. product line A.
• An arrow indicates that a downward trend is good for • Product line C—identified in the text as a new
this measure.
• Appropriate comparisons are shown clearly.
se product—is having early problems with defects but
is projecting a turnaround. (The organization should
briefly explain these problems and the basis for the
• In a single graph, the organization segments its results
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turnaround.)
for its three product lines, showing that they are
tracked separately. • The organization has projected improvements in the
defect rates of all its product lines. Product line C
er
continues to lag behind the others; product line A is

projected to meet its Six Sigma goals by 2020.
in
Figure 7.1-3 Defects per Million Opportunities

am
50
Good
45
Ex
40
Defects/Million Opportunities
35
Product line A
30
Product line B
25
Product line C
20
15 Overall company
10 Best competitor
3.4 5 World-class level
(6σ)
0
2014 2015 2016 2017 2018 2019 2020
(proj.) (proj.)
Year
How to Respond to the Criteria 37

Core Values and Concepts
These beliefs and behaviors are embedded in high-performing organizations. They are the
foundation for integrating key performance and operational requirements within a results-oriented
framework that creates a basis for action, feedback, and ongoing success.
The Baldrige Criteria are built on the following set of inter- arise and needs change. For your business ecosystem,
related core values and concepts: synthesis means understanding your organization as part
of a larger whole. It incorporates the key attributes that you
• Systems perspective
contribute to and need from your partners, collaborators,
• Visionary leadership competitors, customers, communities, and other relevant
organizations.
• Customer-focused excellence
These concepts are depicted in the Baldrige Criteria
• Valuing people
overview (page 1). When your organization takes a systems
• Organizational learning and agility perspective, your senior leaders focus on strategic directions
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and customers. Your senior leaders monitor, respond to,
• Focus on success
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and manage performance based on your results. With a
• Managing for innovation systems perspective, you use your measures, indicators, core
competencies, and organizational knowledge to build your
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• Management by fact key strategies, link these strategies with your work systems
• Societal contributions and key processes, manage risk, and align your resources
to improve your overall performance and your focus on
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• Ethics and transparency customers and stakeholders. The core values and concepts,
• Delivering value and results the seven Criteria categories, and the scoring guidelines are
the system’s building blocks and integrating mechanism.
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Systems Perspective
A systems perspective means managing all the components
Visionary Leadership
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of your organization as a unified whole to achieve your Your organization’s senior leaders should set a vision for
mission, ongoing success, and performance excellence. A the organization, create a customer focus, demonstrate
clear and visible organizational values and ethics, and set
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systems perspective also means managing your organization

within the context of an interconnected ecosystem of orga- high expectations for the workforce. The vision, values,
nizations that presents opportunities for new and possibly and expectations should balance the needs of all your
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innovative relationships. stakeholders. Your leaders should also ensure the creation
of strategies, systems, and methods for building knowledge
Successfully managing overall organizational performance and capabilities, stimulating innovation, managing risk,
requires realization of your organization as a system with requiring accountability, achieving performance excellence,
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interdependent operations. Organization-specific synthesis, and thereby ensuring ongoing organizational success.
alignment, and integration make the internal system suc-
cessful. Synthesis means understanding your organization The values and strategies leaders define should help guide
as a whole. It incorporates key business attributes, including all of your organization’s activities and decisions. Senior
your core competencies, strategic objectives, action plans, leaders should inspire and encourage your entire workforce
work systems, and workforce needs. Alignment means to contribute, to develop and learn, to be innovative, and
using key organizational linkages to ensure consistency to embrace meaningful change. Senior leaders should be
of plans, processes, measures, and actions. Integration responsible to your organization’s governance body for their
builds on alignment, so that the individual components of actions and performance, and the governance body should
your performance management system operate in a fully be responsible ultimately to all your stakeholders for your
interconnected, unified, and mutually beneficial manner to organization’s and its senior leaders’ ethics, actions, and
deliver anticipated results. performance.
In addition, your organization exists within a business Senior leaders should serve as role models through their
ecosystem—a network of organizations, including your ethical behavior and their personal involvement in planning,
partners, suppliers, collaborators, competitors, customers, providing a supportive environment for innovation, commu-
communities, and other relevant organizations inside and nicating, coaching and motivating the workforce, developing
outside your sector or industry. Within this larger system, future leaders, reviewing organizational performance, and
roles between organizations may be fluid as opportunities recognizing workforce members. As role models, they can

reinforce ethics, values, and expectations while building
leadership, commitment, and initiative throughout your
Valuing People
organization. Senior leaders should demonstrate authentic- An organization’s success depends on an engaged workforce
ity and admit to their missteps and opportunities for that benefits from meaningful work, clear organizational
improvement. direction, the opportunity to learn, and accountability for
performance. That engaged workforce must also have a safe,
trusting, and cooperative environment. The successful orga-
Customer-Focused Excellence nization has a culture of inclusion that capitalizes on the
Your customers are the ultimate judges of your performance diverse backgrounds and characteristics, knowledge, skills,
and the quality of your products and services. Thus, your creativity, and motivation of its workforce, partners, and col-
organization must consider all product and service features laborators. Such an organization values all people who have
and characteristics and all modes of customer access a stake in the organization, including customers, community
and support that contribute value to your customers. members, stockholders, and other people affected by the
Such behavior leads to customer acquisition, satisfaction, organization’s actions.
preference, and loyalty; positive referrals; and, ultimately,
Valuing the people in your workforce means committing to
the ongoing success of your business. Customer-focused
their engagement, development, and well-being. Increas-
excellence has both current and future components:
ingly, this may involve offering flexible work practices that
understanding today’s customer desires and anticipating
are tailored to varying workplace and life needs. Major
future customer desires and marketplace potential.
challenges in valuing your workforce members include
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Many factors may influence value and satisfaction over the (1) demonstrating your leaders’ commitment to their
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course of your customers’ experience with your organization. success, (2) providing motivation and recognition that go
These factors include your organization’s customer relation- beyond the regular compensation system, (3) offering devel-
opment and progression within your organization, (4) shar-
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ship management, which helps build trust, confidence,
and loyalty. ing your organization’s knowledge so that your workforce
can better serve your customers and contribute to achieving
Customer-focused excellence means much more than reduc- your strategic objectives, (5) creating an environment that
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ing defects and errors, merely meeting specifications, or encourages intelligent risk taking to achieve innovation,
reducing complaints. Nevertheless, these factors contribute (6) developing a system of workforce and organizational
to your customers’ view of your organization and thus are accountability for performance, and (7) creating an inclusive
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also important parts of customer-focused excellence. In environment for a diverse workforce.
addition, your success in recovering from defects, service
errors, and mistakes is crucial for retaining customers and The success of your workforce members—including
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engaging them for the long term. The security and privacy of your leaders—depends on their having opportunities to
customer information are necessary attributes for customer learn. This learning includes preparing people for future
retention. organizational core competencies. On-the-job training offers
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a cost-effective way to cross-train and to link training more

A customer-focused organization addresses not only closely to your organization’s capacity needs and priorities.
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the product and service characteristics that meet basic If your organization relies on volunteers, their personal
customer requirements but also those unique features development and learning are also important to consider.
and characteristics that differentiate the organization from
competitors. This differentiation may be based on innovative To accomplish their overall goals, successful organizations
build internal and external partnerships and multilateral
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offerings, combinations of product and service offerings,

price, customized offerings, multiple access and outward alliances with people and with other organizations. Internal
communication mechanisms, rapid response, or special rela- partnerships might include cooperation between labor and
tionships, such as participation in alliances or collaborative management. Forming internal partnerships might also
networks of organizations that drive efficiency, effectiveness, involve creating network relationships among people across
and innovation. work units and locations or between employees and volun-
teers to improve flexibility, responsiveness, and knowledge
Customer-focused excellence is thus a strategic concept. It is sharing.
directed toward customer acquisition, retention and loyalty,
stronger brand recognition, market share gain, and growth. As products and services become more and more multidis-
It demands constant sensitivity to changing and emerging ciplinary, organizations may need new alliances, partnership
customer and market requirements and to the factors that arrangements, consortia, value networks, and business
drive customer engagement. It demands close attention models to accomplish their goals. All of these arrangements
to the voice of the customer. It demands anticipating can contribute to your organization’s ongoing success.
changes in the marketplace. Therefore, customer-focused
excellence demands a customer-focused culture and
organizational agility.
Core Values and Concepts 39

Organizational Learning process or one location to another. A cross-trained and
empowered workforce and effective management of up-
and Agility to-date organizational knowledge are vital assets in such a
Success in today’s ever-changing, globally competitive demanding environment.
environment demands continual organizational learning Organizational learning includes both continuous improve-
and agility. Agility requires a capacity for rapid change and ment of existing approaches and significant change or
for flexibility in operations. Organizations face ever-shorter innovation, leading to new goals, approaches, products,
cycles for introducing new or improved products and and markets.
services, and nonprofit and government organizations
are increasingly being asked to respond rapidly to new Learning needs to be embedded in the way your organiza-
or emerging issues. Disruptive events are occurring more tion operates. This means that learning (1) is a regular
frequently, triggered by innovative technologies or product part of daily work; (2) results in solving problems at their
introductions, economic upheaval or stress, major weather source (root cause); (3) is focused on building and sharing
events, or social or societal demands. Organizations must knowledge throughout your organization; and (4) is driven
be capable of managing risk and making transformational by opportunities to effect significant, meaningful change
changes on an ever-shorter cycle time. Major improvements and to innovate. Sources for learning include employees’
in response times often require new work systems, the and volunteers’ ideas, research and development, customers’
simplification of work processes, agile supplier and partner input, best-practice sharing, competitors’ performance, and
networks, or the ability for rapid changeover from one benchmarking.
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The Role of Core Values and Concepts
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(Criteria category 7)

Organizational learning can result in (1) enhanced value including changing economic conditions; workforce capacity
to customers through new and improved products and and capability needs; the competitive global marketplace;
customer services; (2) the development of new business technological developments; security and cybersecurity risks;
opportunities; (3) the development of new and improved changes in customer and market segments; new business
processes or business models; (4) reduced errors, defects, models; evolving regulatory requirements; changes in com-
waste, and related costs; (5) increased productivity and munity and societal expectations and needs; and strategic
effectiveness in the use of all your resources; (6) enhanced moves by competitors. Your strategic objectives and resource
performance in making societal contributions; and allocations need to accommodate these influences. A focus
(7) greater agility in managing change and disruption. on success includes developing your leaders, workforce,
and suppliers; accomplishing effective succession planning;
A major success factor in meeting competitive challenges
creating a supportive environment for taking intelligent
is design-to-introduction time (the time it takes to initiate
risks and encouraging innovation; and anticipating areas for
a product or service feature) or innovation cycle time.
societal contributions and societal concerns.
To meet the demands of rapidly changing markets, your
organization needs to carry out stage-to-stage integration of
activities from research or concept to commercialization or Managing for Innovation
implementation.
Innovation means making meaningful change to improve
All aspects of time performance are now more critical, your organization’s products, services, programs, processes,
and cycle time is a key process measure. Other important operations, and business model, with the purpose of creat-
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benefits can be derived from this focus on time; time ing new value for stakeholders. Innovation should lead your
improvements often drive simultaneous improvements or organization to new dimensions of performance. Innovation
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changes in your work systems, organization, quality, cost, requires a supportive environment, a process for identifying
supply-network integration, productivity, and ongoing suc- strategic opportunities, and the pursuit of intelligent risks.
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cess in a challenging economy. Innovation and incremental continuous improvement are
different, but complementary, concepts. Successful organiza-
Organizational learning and agility can also be achieved tions use both approaches to improve performance.
through strategic partnerships or alliances, which might
offer complementary core competencies that allow entry
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Innovation is no longer strictly the purview of research and
into new markets or a basis for new products or services. development departments; innovation is important for all
Partnerships and alliances might also permit you to address aspects of your operations and all work systems and work
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common issues by blending your organization’s core processes. Your organization should be led and managed so
competencies or leadership capabilities with other organiza- that identifying strategic opportunities and taking intelligent
risks become part of the learning culture. Innovation should
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tions’ complementary strengths and capabilities, creating

a new source of strategic advantage. The result may be be integrated into daily work and be supported by your
broad, interdependent collaborative networks that include performance improvement system. Systematic processes for
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traditional partners and collaborators as well as competitors, identifying strategic opportunities should reach across your
customers, communities, and organizations outside the entire organization and should explore strategic alliances
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sector or industry. with complementary organizations and with organizations

that have historically not been a part of your collaborative
network.
Focus on Success
Innovation may arise from adapting innovations in other
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Ensuring your organization’s success now and in the future

industries to achieve a breakthrough in your industry. It
requires an understanding of the short- and longer-term
builds on the accumulated knowledge of your organization
factors that affect your organization and its marketplace.
and its people and the innovations of partners, collaborators,
Ensuring this ongoing success requires managing
competitors, customers, and other relevant organizations.
uncertainty in the environment, as well as balancing some
It may involve collaboration among people who do not
stakeholders’ short-term demands with the organization’s
normally work together and are in different parts of the
and stakeholders’ needs to invest in long-term success. The
organization, as well as people in different organizations
pursuit of sustained growth and performance leadership
within a collaborative network. Therefore, the ability to
requires a strong future orientation and a willingness to
rapidly disseminate and capitalize on new and accumulated
make long-term commitments to key stakeholders—your
knowledge is critical to driving organizational innovation.
customers, workforce, suppliers, partners, and stockholders;
the public; and the community. It also requires the agility
to modify plans, processes, and relationships when circum- Management by Fact
stances warrant.
Management by fact requires you to measure and analyze
Your organization’s planning and resource allocation should your organization’s performance, both inside the organiza-
anticipate many factors, such as customers’ short- and tion and in your competitive environment. Measurements
long-term expectations; new business models; new col- should derive from business needs and strategy, and they
laboration and partnering opportunities; potential crises, should provide critical data and information about key

processes, outputs, results, outcomes, and competitor Your organization should meet all local, state, and federal
and industry performance. Organizations need many laws and regulatory requirements and should also treat
types of data and information to effectively manage their these and related requirements as opportunities to excel
performance. Data and information may come in many beyond minimal compliance. Considering societal well-
forms, such as numerical, graphical, or qualitative, and from being and benefit means leading and supporting—within
many sources, including internal processes, surveys, and the the limits of your resources—the environmental, social, and
Internet (including social media). Performance measurement economic systems in your organization’s sphere of influence.
should include measurement of customer, product, and Such leadership and support might include improving edu-
process performance; comparisons of operational, market, cation, health care, and other services in your community;
and competitive performance; supplier, workforce, partner, pursuing environmental excellence; being a role model for
cost, and financial performance; governance and compliance socially important issues; practicing resource conservation;
results; and accomplishment of strategic objectives. reducing your carbon footprint; performing community ser-
vice and charity; improving industry and business practices;
A major consideration in performance improvement and
and sharing nonproprietary information.
change management is the selection and use of performance
measures or indicators. The measures or indicators you For a role-model organization, leadership also entails influ-
select should best represent the factors that lead to improved encing other organizations, private and public, to partner for
customer, operational, financial, and societal performance. A these purposes.
comprehensive yet carefully culled set of measures or indicators
Managing societal contributions requires your organization
tied to customer and organizational performance requirements
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to use appropriate measures and your leaders to assume
provides a clear basis for aligning all processes with your orga-
responsibility for those measures.
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nization’s goals. You may need measures and indicators to
support you in making decisions in a rapidly changing envi-
Ethics and Transparency
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ronment. By analyzing data from your tracking processes,
you can evaluate the measures or indicators themselves and
Your organization should stress ethical behavior in all stake-
change them to better support your goals.
holder transactions and interactions. Your organization’s
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Analysis means extracting larger meaning from data governance body should require highly ethical conduct and
and information to support evaluation, decision making, monitor all conduct accordingly. Your senior leaders should
improvement, and innovation. It entails using data to deter- be role models of ethical behavior and make their expecta-
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mine trends, projections, and cause-and-effect relationships tions of the workforce very clear.
that might not otherwise be evident. Analysis supports a
Your organization’s ethical principles are the foundation
variety of purposes, such as planning, reviewing your overall
for your culture and values. They distinguish right from
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performance, improving operations, comparing your perfor-

wrong. Clearly articulated ethical principles, along with
mance with competitors’ or with best-practice benchmarks,
your organizational values, empower your people to make
and managing change. To facilitate analysis, data may need
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effective decisions and may serve as boundary conditions for

to be aggregated from various sources. Data may also need
determining organizational norms and prohibitions.
to be segmented by, for example, markets, product lines, and
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workforce groups to gain deeper understanding. Transparency is characterized by consistently candid and
open communication, accountability, and the sharing
Societal Contributions of clear and accurate information by leadership and
management. The benefits of transparency are manifold.
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Your organization’s leaders should stress contributions to Transparency is a key factor in workforce engagement and
the public and the consideration of societal well-being and allows people to see why actions are being taken and how
benefit. Leaders should be role models for your organization they can contribute. Transparency and accountability are also
and its workforce in the protection of public health, safety, important in interactions with customers and other stake-
and the environment. This protection applies to any impact holders, giving them a sense of involvement, engagement,
of your organization’s operations, as well as the life cycles and confidence in your organization.
of your products. Also, your organization should emphasize
Ethical behavior and transparency build trust in the
resource conservation, recycling, and waste reduction at
organization and its leaders and engender a belief in the
the source. Planning should anticipate adverse impacts
organization’s fairness and integrity that is valued by all key
from the production, distribution, transportation, use, and
stakeholders.
disposal of your products. Effective planning should reduce
or prevent problems; provide for a forthright response if
problems occur; and make available the information and
support needed to maintain public awareness, safety, and
confidence.

Delivering Value and Results Your organization’s performance measurements need to
focus on key results. Results should be used to deliver and
By delivering and balancing value for key stakeholders, balance value for your key stakeholders—your customers,
your organization builds loyalty, contributes to growing the workforce, stockholders, suppliers, partners, and collabora-
economy, and contributes to society. To meet the sometimes tors; the public; and the community. Thus results need to
conflicting and changing aims that balancing value requires, be a composite of measures that include not just financial
your organizational strategy should explicitly include key results, but also product and process results; customer and
stakeholder requirements. This will help ensure that plans workforce satisfaction and engagement results; and leader-
and actions meet differing stakeholder needs and avoid ship, strategy, and societal performance.
adverse impacts on any stakeholders. A balanced composite
of leading and lagging performance measures is an effective
means to communicate short- and longer-term priorities,
monitor actual performance, and provide a clear basis for
improving results.
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Changes from the 2017–2018
Baldrige Excellence Framework
Revisions have one overarching purpose: for the framework and the Criteria to reflect the leading
edge of validated leadership and performance practice while ensuring that they are as concise and
user-friendly as possible.
Over the more than 30 years since their creation, the Criteria Supply network. Related to the concept of ecosystems,
for Performance Excellence have evolved along with the organizations’ means of producing products and services
drivers of organizational competitiveness and long-term and delivering them to their customers increasingly involve
success. Through this gradual evolution, today the Baldrige more than a simple chain from supplier, to supplier, to
Excellence Framework offers organizations of all kinds a organization. Complex organizations may coordinate the
nonprescriptive leadership and management guide that activities of many suppliers, and some organizations may
facilitates a systems approach to achieving organization- be a part of a complex network of organizations, each with
wide excellence. a vital role in production or delivery. Increasingly, these
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entities are interlinked and exist in interdependent rather
As the Baldrige framework and the Criteria evolve, they
than linear relationships. Success depends on recognizing
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must balance two important considerations. On the one
and managing these interdependencies to achieve align-
hand, the Criteria need to reflect a national standard for
ment. The Criteria now use the term supply network to
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performance excellence, educating organizations in all
refer to the entities involved in producing an organization’s
aspects of establishing an integrated performance manage-
products and services and delivering them to customers.
ment system. On the other hand, the Criteria need to be
There is increased emphasis on supply-network alignment,
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accessible and user-friendly for a variety of organizations at
collaboration, and agility.
varying levels of maturity.
Culture. Organizational culture—the shared beliefs, norms,
To strike this balance, changes reflected in the 2019–2020
and values that create the unique environment within
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Baldrige Excellence Framework focus on raising organizations’
an organization—can have a profound effect on decision
awareness of business ecosystems, organizational culture,
making, workforce engagement, customer engagement, and
supply networks, and cybersecurity, and on making the
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organizational success. Since 2000, the Criteria have asked

Criteria more accessible from the users’ perspective. For
about organizational values, a key element of organizational
organizations that prefer an abridged version of the Baldrige
culture. In the years since then, questions relating to
framework, a new Baldrige Excellence Builder based on the
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culture—some using the term, and some referencing

2019–2020 Baldrige Excellence Framework will be published
behaviors underlying culture—have been incorporated into
in early 2019.
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the Criteria. The Criteria now ask explicitly about other

Business ecosystems. As organizations increasingly offer characteristics of your organizational culture and how lead-
multidisciplinary products and services, leaders need to lead ers and the organization create and reinforce that culture.
their organizations as part of interrelated cross-industry,
Security and cybersecurity. The Criteria have addressed
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domestic and sometimes global systems—called ecosystems.

the security of information systems and the confidentiality
These broad, interdependent collaborative networks may
of information since 2001, with a significant expansion of
include traditional partners and collaborators, but also
these considerations in 2017–2018. As cybersecurity con-
competitors, organizations outside the sector, communities,
tinues to grow in importance to all organizations, Criteria
and customers. Organizational growth may depend on the
questions on cybersecurity have been expanded.
collective growth of the ecosystem and its ability to prepare
for the future. And as competition comes from organizations Simplification. Several Criteria items have been simplified,
in different industries, organizations may be able to stand and some questions and notes have been removed, reorga-
out from their competitors through new and novel offerings, nized, streamlined, moved, or the wording changed to aid
possibly through the ecosystem. In an expansion of the understanding. The content from some questions has been
systems perspective offered by the Criteria, the term appears moved to notes as examples for organizations to consider.
in the Core Values and Concepts section and in notes to the
Criteria questions (formerly requirements). The basic,
Criteria. In the Criteria themselves, the addition of consider-
overall, and multiple questions in the Criteria items ask
ations for suppliers, partners, collaborators, customers, and
about processes, practices, and results found in high-
competitors to some questions and notes emphasizes the
performing organizations. These questions vary in their
importance of thinking broadly about business ecosystems.
importance to different organizations depending on the

factors that enable and ensure that organization’s success tion and Product Offerings. Item 3.2, Customer Engagement,
and sustainability. Especially at the multiple level, these includes three areas to address: Customer Relationships
questions are not a checklist of requirements that all and Support, Determination of Customer Satisfaction
organizations must meet. To better convey this idea, these and Engagement, and Use of Voice-of-the-Customer and
questions are no longer called “requirements” but simply Market Data.
“questions.” Baldrige Award applicants are still expected to
respond to these questions, but if they believe that some are Category 5: Workforce
not important to their current or future success, they should Item 5.2, Workforce Engagement, now asks how you
indicate why. As subject-matter experts, Baldrige examiners reinforce your organizational culture. In recognition of the
should consider that explanation but also use their industry close relationship between performance management and
and Criteria knowledge to make their own judgment workforce development, a newly titled area to address,
about the importance of the questions to the applicant (see Performance Management and Development, includes
“‘Importance’ as a Scoring Consideration,” page 30). questions on learning and development, learning and
development effectiveness, and career development.
The most significant changes to the Criteria items and
related sections are summarized as follows. Category 6: Operations
In item 6.1, Work Processes, the third area to address, now
called Supply-Network Management, includes questions on
Item P.1, Organizational Description, now asks about the
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supply-network alignment, collaboration, and agility, and
characteristics of your organizational culture in addition to on communication with your suppliers.
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values, and about the structures and mechanisms of your
leadership system. In item 6.2, the second area to address now includes ques-
tions about the roles of your workforce, customers, partners,
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Category 1: Leadership and suppliers in ensuring cybersecurity and about the
protection of key assets.
Item 1.1, Senior Leadership, now includes questions about
creating and reinforcing your organizational culture.
In item 1.2 and elsewhere in the Criteria, societal respon-
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Category 7: Results
The Baldrige scoring system (pages 29–34) asks for current,
sibilities are now referred to as societal contributions. As trended, comparative, and segmented data in response
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the concept of corporate social responsibility has become to results items. To reduce confusion about redundancy
accepted, high-performing organizations see contributing to between the Criteria questions and the results scoring
society as more than something they must do. Going above
er
guidelines, terms reflecting the evaluation factors of levels,

and beyond responsibilities in contributing to society can trends, and comparisons have been removed from the
be a driver of customer and workforce engagement and a results items. Organizations should still include this infor-
in
market differentiator. mation, as appropriate, in their responses.
Category 3: Customers Item 7.5, now called Financial, Market, and Strategy Results,
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asks for your results for implementing your strategy,

The areas to address in category 3 have been reorganized
recognizing that strategy implementation is closely related
to make the Criteria more logical from a user’s perspective.
to financial and market success.
Item 3.1, retitled Customer Expectations, includes two areas
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to address: Customer Listening, and Customer Segmenta-
Changes from the 2017–2018 Baldrige Excellence Framework 45

Glossary of Key Terms
The terms below are those in SMALL CAPS in the Baldrige Criteria for Performance Excellence and
scoring guidelines. Each term is followed by a definition in boldface. The rest of the first paragraph
elaborates on this definition. The paragraphs that follow provide examples, descriptive information,
or key linkages to other information in the Baldrige framework.
ACTION PLANS. Specific actions that your organization ANECDOTAL. In a response to a Criteria item, informa-
takes to reach its strategic objectives. These plans specify tion that lacks specific methods; measures; deployment
the resources committed to and the time horizons for mechanisms; and evaluation, improvement, and
accomplishing the plans. Action plan development is the learning factors. Anecdotal information frequently consists
critical stage in planning when you make strategic objectives of examples and describes individual activities rather than
and goals specific so that you can effectively deploy them systematic processes. For example, in an anecdotal response
throughout the organization in an understandable way. In to how senior leaders deploy performance expectations,
the Criteria, deploying action plans includes creating aligned you might describe a specific occasion when a senior
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measures for all affected departments and work units. leader visited all of your organization’s facilities. On the
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Deployment might also require specialized training for some other hand, in describing a systematic process, you might
workforce members or recruitment of personnel. include the methods all senior leaders use to communicate
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performance expectations regularly to all locations and
For example, a strategic objective for a supplier in a highly
workforce members, the measures leaders use to assess the
competitive industry might be to develop and maintain price
effectiveness of the methods, and the tools and techniques
leadership. Action plans could entail designing efficient
you use to evaluate and improve the methods.
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processes, creating an accounting system that tracks activity-
level costs, and aligning processes and accounting systems See also SYSTEMATIC.
across the organization. To deploy the action plans, the
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supplier might need to train work units and teams in setting APPROACH. The methods your organization uses to
priorities based on costs and benefits. Organizational-level carry out its processes. Besides the methods themselves,
analysis and review would likely emphasize productivity approach refers to the appropriateness of the methods
er
growth, cost control, and quality. to the item questions and your organization’s operating
environment, as well as how effectively your organization
See also STRATEGIC OBJECTIVES.
uses those methods.
in
ALIGNMENT. A state of consistency among plans, Approach is one of the factors considered in evaluating pro-
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processes, information, resource decisions, workforce cess items. For further description, see the Scoring System
capability and capacity, actions, results, and analyses (pages 29–34).
that support key organization-wide goals. Effective align-
ment requires a common understanding of purposes and BASIC QUESTION. The most central concept of a Criteria
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goals. It also requires the use of complementary measures item, as presented in the item title question. For an
and information for planning, tracking, analysis, and illustration, see Criteria for Performance Excellence Structure
improvement at three levels: the organizational level, the (page 2).
key process level, and the work unit level.
BENCHMARKS. Processes and results that represent
See also INTEGRATION.
the best practices and best performance for similar
activities, inside or outside your organization’s industry.
ANALYSIS. The examination of facts and data to provide
Organizations engage in benchmarking to understand the
a basis for effective decisions. Analysis often involves
current dimensions of world-class performance and to
determining cause-effect relationships. Overall organiza-
achieve discontinuous (nonincremental) or “breakthrough”
tional analysis guides you in managing work systems and
improvement.
work processes toward achieving key business results and
attaining strategic objectives. Benchmarks are one form of comparative data. Other forms
include industry data collected by a third party, data on
Although individual facts and data are important, they do
competitors’ performance, and comparisons with similar
not usually provide an effective basis for acting or setting
organizations that are in the same geographic area or that
priorities. Effective actions depend on an understanding
provide similar products and services in other geographic
of relationships, which is derived from the analysis of facts
areas.
and data.

CAPABILITY, WORKFORCE. See WORKFORCE CAPABILITY. CYCLE TIME. The time required to fulfill commitments
or complete tasks. Cycle time refers to all aspects of time
CAPACITY, WORKFORCE. See WORKFORCE CAPACITY. performance, such as time to market, order fulfillment time,
delivery time, changeover time, customer response time,
COLLABORATORS. Organizations or individuals who and other key measures of time. Improvement in cycle time
cooperate with your organization to support a particular might involve any or all of these.
activity or event or who cooperate intermittently when
Time performance and speed are important to improving
their short-term goals are aligned with or are the same
competitiveness and overall performance.
as yours. Typically, collaborations do not involve formal
agreements or arrangements.
DEPLOYMENT. The extent to which your organization
See also PARTNERS. applies an approach in addressing the questions in a
Criteria item. Evaluation of deployment considers how
CORE COMPETENCIES. Your organization’s areas of broadly and deeply the approach is applied in relevant work
greatest expertise; those strategically important, pos- units throughout your organization.
sibly specialized capabilities that are central to fulfilling
Deployment is one of the factors considered in evaluating
your mission or that provide an advantage in your
process items. For further description, see the Scoring
marketplace or service environment. Core competencies
System (pages 29–34).
are frequently challenging for competitors or suppliers and
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partners to imitate, and they may provide an ongoing com-
DIVERSITY. Personal differences among workforce
petitive advantage or create opportunities in your business
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members that enrich the work environment and are
ecosystem. The absence of a needed core competency may
representative of your hiring and customer communi-
result in a significant strategic challenge or disadvantage for
ties. These differences address many variables, such as race,
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your organization in the marketplace.
religion, color, gender, national origin, disability, sexual ori-
Core competencies may involve technological expertise, entation, age and generation, education, geographic origin,
unique service offerings, a marketplace niche, or business and skill characteristics, as well as ideas, thinking, academic
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acumen in a particular area (e.g., business acquisitions). disciplines, and perspectives.
The Criteria refer to valuing and benefiting from the diver-
CUSTOMER. An actual or potential user of your organi-
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sity of your workforce hiring and customer communities.
zation’s products, programs, or services (all referred to
Capitalizing on both in building your workforce increases
as products in the Criteria). Customers include the end
your opportunities for high performance; customer,
users of your products, as well as others who are immedi-
er
workforce, and community satisfaction; and customer and

ate purchasers or users, such as distributors, agents, or
workforce engagement.
organizations that process your product as a component of
in
theirs. The Baldrige framework addresses customers broadly,

EFFECTIVE. How well a process or a measure addresses
referencing your current and future customers, as well as
its intended purpose. Determining effectiveness requires
your competitors’ customers.
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(1) evaluating how well the process is aligned with the

Customer-focused excellence is a Baldrige core value organization’s needs and how well it is deployed, or
embedded in the beliefs and behaviors of high-performing (2) evaluating the outcome of the measure as an indicator
organizations. Customer focus impacts and should be a of process or product performance.
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factor in integrating your organization’s strategic directions,

work systems and work processes, and business results. EMPOWERMENT. Giving people the authority and
responsibility to make decisions and take actions. When
See also STAKEHOLDERS for the relationship between cus-
people are empowered, decisions are made closest to the
tomers and others who might be affected by your products.
front line, where work-related knowledge and understand-
ing reside.
CUSTOMER ENGAGEMENT. Your customers’ investment
in or commitment to your brand and product offerings. The purpose of empowering people is to enable them to
It is based on your ongoing ability to serve their needs and satisfy customers on first contact, improve processes and
build relationships so that they will continue using your increase productivity, and improve your organization’s
products. Characteristics of engaged customers include performance results, as well as to encourage collaboration.
retention, brand loyalty, willingness to make an effort to An empowered workforce requires information to make
do business—and increase their business—with you, and appropriate decisions; thus, your organization must provide
willingness to actively advocate for and recommend your that information in a timely and useful way.
brand and product offerings.
ENGAGEMENT, CUSTOMER. See CUSTOMER ENGAGEMENT.
ENGAGEMENT, WORKFORCE. See WORKFORCE

ENGAGEMENT.
Glossary of Key Terms 47

ETHICAL BEHAVIOR. The actions your organization document the rights and responsibilities of each of the
takes to ensure that all its decisions, actions, and parties and describe how they will direct and control your
stakeholder interactions conform to its moral and organization to ensure (1) accountability to owners/share-
professional principles of conduct. These principles holders and other stakeholders, (2) transparency of opera-
should support all applicable laws and regulations and are tions, and (3) fair treatment of all stakeholders. Governance
the foundation for your organization’s culture and values. processes may include the approval of strategic direction, the
They distinguish right from wrong. monitoring and evaluation of the CEO’s performance, the
establishment of executive compensation and benefits, suc-
Senior leaders should be role models for these principles
cession planning, financial and other fiduciary auditing, risk
of behavior. The principles apply to all people involved in
management, disclosure, and shareholder reporting. Ensur-
your organization, from temporary workforce members to
ing effective governance is important to stakeholders’ and
members of the board of directors. These principles benefit
the larger society’s trust and to organizational effectiveness.
from regular communication and reinforcement. Although
the Baldrige framework does not prescribe a particular
HIGH PERFORMANCE. Ever-higher levels of overall
model for ensuring ethical behavior, senior leaders have the
organizational and individual performance, including
responsibility for the alignment of your organization’s mis-
quality, productivity, innovation rate, and cycle time.
sion and vision with its ethical principles. Ethical behavior
High performance results in improved service and value for
encompasses interactions with all stakeholders, including
customers and other stakeholders.
your workforce, shareholders, customers, partners, suppliers,
and local community. Approaches to high performance vary in their form, their
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function, and the incentive systems used. High performance
Well-designed and clearly articulated ethical principles
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stems from and enhances workforce engagement. It involves
empower people to make effective decisions with great
cooperation between the management and the workforce,
confidence. In some organizations, ethical principles also
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which may involve workforce bargaining units; cooperation
serve as boundary conditions restricting behavior that
among work units, often involving teams; empowerment
otherwise could have adverse impacts on your organization
of your people, including personal accountability; and
and/or society. se
workforce input into planning. It may involve learning
See also the related core value, Ethics and Transparency and building individual and organizational skills; learning
(page 42). from other organizations; creating flexible job design and
work assignments; maintaining a flattened organizational
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EXCELLENCE. See PERFORMANCE EXCELLENCE. structure, where decision making is decentralized and
decisions are made closest to the front line; and effectively
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GOALS. Future conditions or performance levels that using performance measures, including comparisons. Many
your organization intends or desires to attain. Goals can organizations encourage high performance with monetary
be both short and longer term. They are ends that guide and nonmonetary incentives based on factors such as orga-
in
actions. Quantitative goals, frequently referred to as targets, nizational performance, team and individual contributions,
include a numerical point or range. Targets might be desired and skill building. Also, approaches to high performance
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performance based on comparative or competitive data. usually seek to align your organization’s structure, core
Stretch goals are goals for desired major, discontinuous competencies, work, jobs, workforce development, and
(nonincremental) or “breakthrough” improvements, usually incentives.
in areas most critical to your organization’s future success.
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HOW. The systems and processes that your organization

Goals can serve many purposes, including
uses to achieve its mission requirements. In responding
• clarifying strategic objectives and action plans to to “how” questions in Criteria categories 1–6, you should
indicate how you will measure success, include information on approach (methods and measures),
deployment, learning, and integration.
• fostering teamwork by focusing on a common end,
• encouraging out-of-the-box thinking (innovation) to INDICATORS. See MEASURES AND INDICATORS.
achieve a stretch goal, and
INNOVATION. Making meaningful change to improve
• providing a basis for measuring and accelerating
products, processes, or organizational effectiveness
progress.
and create new value for stakeholders. Innovation
See also PERFORMANCE PROJECTIONS. involves adopting an idea, process, technology, product, or
business model that is either new or new to its proposed
GOVERNANCE. The system of management and controls application. The outcome of innovation is a discontinuous
exercised in the stewardship of your organization. Gov- or “breakthrough” improvement in results, products, or
ernance includes the responsibilities of your organization’s processes. Innovation benefits from a supportive environ-
owners/shareholders, board of directors, and senior leaders. ment, a process for identifying strategic opportunities, and a
Corporate or organizational charters, bylaws, and policies willingness to pursue intelligent risks.

Successful organizational innovation is a multistep process ents, databases, documents, guides, policies and procedures,
of development and knowledge sharing, a decision to imple- and technical drawings. Knowledge assets also reside within
ment, implementation, evaluation, and learning. Although customers, suppliers, and partners.
innovation is often associated with technological innovation,
Knowledge assets are the know-how that your organiza-
it is applicable to all key organizational processes that
tion has available to use, invest, and grow. Building and
can benefit from change through innovation, whether
managing knowledge assets are key components of creating
breakthrough improvement or a change in approach or
value for your stakeholders and sustaining a competitive
outputs. Innovation could include fundamental changes in
advantage.
an organization’s structure or business model to accomplish
work more effectively.
LEADERSHIP SYSTEM. The way leadership is exercised,
See also INTELLIGENT RISKS and STRATEGIC OPPORTUNITIES. formally and informally, throughout your organization;
the basis for key decisions and the way they are made,
INTEGRATION. The harmonization of plans, processes, communicated, and carried out. A leadership system
information, resource decisions, workforce capability includes structures and mechanisms for making decisions;
and capacity, actions, results, and analyses to support ensuring two-way communication; selecting and develop-
key organization-wide goals. Effective integration goes ing leaders and managers; and reinforcing values, ethical
beyond alignment and is achieved when the individual behavior, directions, and performance expectations.
components of an organizational performance management
An effective leadership system respects workforce members’
system operate as a fully interconnected unit.
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and other stakeholders’ capabilities and requirements, and
Integration is one of the factors considered in evaluating it sets high expectations for performance and performance
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both process and results items. For further description, see improvement. It builds loyalties and teamwork based
the Scoring System (pages 29–34). on your organization’s vision and values and the pursuit
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of shared goals. It encourages and supports initiative,
See also ALIGNMENT.
innovation, and appropriate risk taking; subordinates
organizational structure to purpose and function; and avoids
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INTELLIGENT RISKS. Opportunities for which the poten-
chains of command that require long decision paths. An
tial gain outweighs the potential harm or loss to your
effective leadership system includes mechanisms for leaders
organization’s future success if you do not explore them.
to conduct self-examination, receive feedback, and improve.
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Taking intelligent risks requires a tolerance for failure and
an expectation that innovation is not achieved by initiating
LEARNING. New knowledge or skills acquired through
only successful endeavors. At the outset, organizations must
evaluation, study, experience, and innovation. The
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invest in potential successes while realizing that some will

Baldrige framework refers to two distinct kinds of learning:
lead to failure.
organizational learning and learning by the people in your
in
The degree of risk that is intelligent to take will vary by the workforce. Organizational learning is achieved through
pace and level of threat and opportunity in the industry. In research and development, evaluation and improvement
a rapidly changing industry with constant introductions of cycles, ideas and input from the workforce and stakeholders,
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new products, processes, or business models, there is an the sharing of best practices, and benchmarking. Workforce
obvious need to invest more resources in intelligent risks learning is achieved through education, training, and devel-
than in a stable industry. In the latter, organizations must opmental opportunities that further individual growth.
monitor and explore growth potential and change but, most
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To be effective, learning should be embedded in the way

likely, with a less significant commitment of resources.
your organization operates. Learning contributes to a
See also STRATEGIC OPPORTUNITIES. competitive advantage and ongoing success for your organi-
zation and workforce.
KEY. Major or most important; critical to achieving your
For further description of organizational and personal learn-
intended outcome. The Criteria, for example, refer to key
ing, see the related core values and concepts: Valuing People,
challenges, plans, work processes, and measures—those that
and Organizational Learning and Agility (pages 39–40).
are most important to your organization’s success. They are
the essential elements for pursuing or monitoring a desired Learning is one of the factors considered in evaluating pro-
outcome. Key is generally defined as around the most cess items. For further description, see the Scoring System
significant five (e.g., around five key challenges). (pages 29–34).
KNOWLEDGE ASSETS. Your organization’s accumulated LEVELS. Numerical information that places or positions
intellectual resources; the knowledge possessed by your your organization’s results and performance on a
organization and its workforce in the form of informa- meaningful measurement scale. Performance levels permit
tion, ideas, learning, understanding, memory, insights, evaluation relative to past performance, projections, goals,
cognitive and technical skills, and capabilities. These and appropriate comparisons.
knowledge assets reside in your workforce, software, pat-

MEASURES AND INDICATORS. Numerical information The Criteria address four types of performance: (1) product,
that quantifies the input, output, and performance (2) customer-focused, (3) operational, and (4) financial and
dimensions of processes, products, programs, projects, marketplace.
services, and the overall organization (outcomes). Product performance is performance relative to measures
Measures and indicators might be simple (derived from one and indicators of product and service characteristics that are
measurement) or composite. important to customers. Examples include product reliability,
The Criteria do not distinguish between measures and on-time delivery, customer-experienced defect levels, and
indicators. However, some users of these terms prefer “indi- service response time. For some service organizations,
cator” (1) when the measurement relates to performance but including nonprofit organizations, examples might include
does not measure it directly (e.g., the number of complaints program and project performance in the areas of rapid
is an indicator but not a direct measure of dissatisfaction) response to emergencies, at-home services, or multilingual
and (2) when the measurement is a predictor (“leading services.
indicator”) of some more significant performance (e.g., Customer-focused performance is performance relative to
increased customer satisfaction might be a leading indicator measures and indicators of customers’ perceptions, reac-
of market share gain). tions, and behaviors. Examples include customer retention,
complaints, and survey results.
MISSION. Your organization’s overall function. The
mission answers the question, “What is your organization Operational performance is workforce, leadership, and
organizational performance (including ethical and legal
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attempting to accomplish?” The mission might define cus-
tomers or markets served, distinctive or core competencies, compliance) relative to measures and indicators of effective-
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or technologies used. ness, efficiency, and accountability. Examples include cycle
time, productivity, waste reduction, workforce turnover,
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MULTIPLE QUESTIONS. The details of a Criteria item, as workforce cross-training rates, regulatory compliance, fiscal
expressed in the individual questions under each let- accountability, strategy accomplishment, and community
tered area to address. The first question in a set of multiple involvement. Operational performance might be measured
questions expresses the most important one in that group.
The questions that follow expand on or supplement that
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at the work-unit, key work process, and organizational
levels.
question. For an illustration, see Criteria for Performance Financial and marketplace performance is performance
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Excellence Structure (page 2). relative to measures of cost, revenue, and market position,
Even high-performing, high-scoring users of the Baldrige including asset utilization, asset growth, and market share.
framework are not likely to be able to address all the Examples include returns on investments, value added per
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multiple questions with equal capability or success. employee, debt-to-equity ratio, returns on assets, operating
margins, performance to budget, the amount in reserve
funds, cash-to-cash cycle time, other profitability and liquid-
in
OVERALL QUESTIONS. The most important features of

a Criteria item, as elaborated in the first question (the ity measures, and market gains.
leading question in boldface) in each paragraph under
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each lettered area to address. For an illustration, see PERFORMANCE EXCELLENCE. An integrated approach
Criteria for Performance Excellence Structure (page 2). to organizational performance management that results
in (1) delivery of ever-improving value to customers and
PARTNERS. Key organizations or individuals who are stakeholders, contributing to ongoing organizational
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working in concert with your organization to achieve a success; (2) improvement of your organization’s overall
common goal or improve performance. Typically, partner- effectiveness and capabilities; and (3) learning for
ships are formal arrangements for a specific aim or purpose, the organization and for people in the workforce. The
such as to achieve a strategic objective or deliver a specific Baldrige Organizational Profile, Criteria, core values and
product. concepts, and scoring guidelines provide a framework and
assessment tool for understanding your organization’s
Formal partnerships usually last for an extended period and strengths and opportunities for improvement and, thus, for
involve a clear understanding of the partners’ individual and guiding your planning toward achieving higher performance
mutual roles and benefits. and striving for excellence.
See also COLLABORATORS.
PERFORMANCE PROJECTIONS. Estimates of your
PERFORMANCE. Outputs and their outcomes obtained organization’s future performance. Projections should
from processes, products, and customers that permit be based on an understanding of past performance,
you to evaluate and compare your organization’s results rates of improvement, and assumptions about future
to performance projections, standards, past results, internal changes and innovations, as well as assumptions
goals, and other organizations’ results. Performance can about changes in the external environment that result in
be expressed in nonfinancial and financial terms. internal changes. Thus, performance projections can serve as
a key tool in managing your operations and in developing
and implementing your strategy.

Performance projections state your expected future parisons; the rate, breadth, and importance of performance
performance. Goals state your desired future performance. improvements; and the relationship of results measures to
Performance projections for your competitors or similar key organizational performance requirements.
organizations may indicate challenges facing your orga-
Results are one of the two dimensions evaluated in a
nization and areas where breakthrough performance or
Baldrige-based assessment. This evaluation is based on four
innovation is needed. In areas where your organization
factors: levels, trends, comparisons, and integration. For
intends to achieve breakthrough performance or innovation,
further description, see the Scoring System (pages 29–34).
your performance projections and your goals may overlap.
See also GOALS. SEGMENT. One part of your organization’s customer,
market, product offering, or workforce base. Segments
PROCESS. Linked activities with the purpose of produc- typically have common characteristics that allow logical
ing a product or service for a customer (user) within or groupings. In Criteria results items, segmentation refers
outside your organization. Generally, processes involve to disaggregating results data in a way that allows for
combinations of people, machines, tools, techniques, materi- meaningful analysis of your organization’s performance. It is
als, and improvements in a defined series of steps or actions. up to each organization to determine the factors that it uses
Processes rarely operate in isolation and must be considered to segment its customers, markets, products, and workforce.
in relation to other processes that impact them. In some
Understanding segments is critical to identifying the distinct
situations, processes might require adherence to a specific
needs and expectations of different customer, market, and
sequence of steps, with documentation (sometimes formal)
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workforce groups and to tailoring product offerings to meet
of procedures and requirements, including well-defined
their needs and expectations. For example, you might seg-
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measurement and control steps.
ment your market based on distribution channels, business
In the delivery of services, particularly those that directly volume, geography, or technologies employed. You might
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involve customers, process is used more generally to spell segment your workforce based on geography, skills, needs,
out what delivering that service entails, possibly including a work assignments, or job classifications.
preferred or expected sequence. If a sequence is critical, the se
process needs to include information that helps customers SENIOR LEADERS. Your organization’s senior manage-
understand and follow the sequence. Such service processes ment group or team. In many organizations, this consists
also require guidance for service providers on handling of the head of the organization and his or her direct reports.
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contingencies related to customers’ possible actions or
behaviors. STAKEHOLDERS. All groups that are or might be
affected by your organization’s actions and success. Key
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In knowledge work, such as strategic planning, research,

stakeholders might include customers, the workforce, part-
development, and analysis, process does not necessarily
ners, collaborators, governing boards, stockholders, donors,
imply formal sequences of steps. Rather, it implies general
in
suppliers, taxpayers, regulatory bodies, policy makers,

understandings of competent performance in such areas
funders, and local and professional communities.
as timing, options to include, evaluation, and reporting.
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Sequences might arise as part of these understandings. See also CUSTOMER.

Process is one of the two dimensions evaluated in a
Baldrige-based assessment. This evaluation is based on four STRATEGIC ADVANTAGES. Those marketplace benefits
factors: approach, deployment, learning, and integration. For that exert a decisive influence on your organization’s
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further description, see the Scoring System (pages 29–34). likelihood of future success. These advantages are
frequently sources of current and future competitive success
relative to other providers of similar products. Strategic
PRODUCTIVITY. Measures of the efficiency of resource
advantages generally arise from either or both of two
use.
sources: (1) core competencies, which focus on building and
Although the term is often applied to single factors, such expanding on your organization’s internal capabilities, and
as the workforce (labor productivity), machines, materials, (2) strategically important external resources, which your
energy, and capital, the concept also applies to the total organization shapes and leverages through key external
resources used in producing outputs. Using an aggregate relationships and partnerships.
measure of overall productivity allows you to determine
When an organization realizes both sources of strategic
whether the net effect of overall changes in a process—
advantage, it can amplify its unique internal capabilities
possibly involving resource trade-offs—is beneficial.
by capitalizing on complementary capabilities in other
organizations.
PROJECTIONS, PERFORMANCE. See PERFORMANCE
PROJECTIONS. See STRATEGIC CHALLENGES and STRATEGIC OBJECTIVES
for the relationship among strategic advantages, strategic
RESULTS. Outputs and outcomes achieved by your challenges, and the strategic objectives your organization
organization. Results are evaluated based on current articulates to address its challenges and advantages.
performance; performance relative to appropriate com-

STRATEGIC CHALLENGES. Those pressures that exert a TRENDS. Numerical information that shows the direc-
decisive influence on your organization’s likelihood of tion and rate of change of your organization’s results
future success. These challenges are frequently driven by or the consistency of its performance over time. Trends
your organization’s anticipated competitive position in the show your organization’s performance in a time sequence.
future relative to other providers of similar products. While
Ascertaining a trend generally requires a minimum of three
not exclusively so, strategic challenges are generally exter-
historical (not projected) data points. Defining a statistically
nally driven. However, in responding to externally driven
valid trend requires more data points. The cycle time of the
strategic challenges, your organization may face internal
process being measured determines the time between the
strategic challenges.
data points for establishing a trend. Shorter cycle times
External strategic challenges may relate to customer or mar- demand more frequent measurement, while longer cycle
ket needs or expectations; product or technological changes; times might require longer periods for a meaningful trend.
or financial, societal, and other risks or needs. Internal
Examples of trends called for by the Criteria and scoring
strategic challenges may relate to capabilities or human and
guidelines include data on product performance, results
other resources.
for customer and workforce satisfaction and dissatisfaction,
See STRATEGIC ADVANTAGES and STRATEGIC OBJECTIVES financial performance, marketplace performance, and opera-
for the relationship among strategic challenges, strategic tional performance, such as cycle time and productivity.
advantages, and the strategic objectives your organization
articulates to address its challenges and advantages. VALUE. The perceived worth of a product, process, asset,
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or function relative to its cost and possible alternatives.
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STRATEGIC OBJECTIVES. The aims or responses that
Organizations frequently use value considerations to deter-
your organization articulates to address major change
mine the benefits of various options relative to their costs,
or improvement, competitiveness or social issues, and
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such as the value of various product and service combina-
business advantages. Strategic objectives are generally
tions to customers. Your organization needs to understand
focused both externally and internally and relate to
what different stakeholder groups value and then deliver
significant customer, market, product, or technological se
value to each group. This frequently requires balancing value
opportunities and challenges (strategic challenges). Broadly
among customers and other stakeholders, such as your
stated, they are what your organization must achieve to
workforce and the community.
remain or become competitive and ensure its long-term suc-
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cess. Strategic objectives set your organization’s longer-term
VALUES. The guiding principles and behaviors that
directions and guide resource allocation and redistribution.
embody how your organization and its people are
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See ACTION PLANS for the relationship between strategic expected to operate. Values influence and reinforce your
objectives and action plans and for an example of each. organization’s desired culture. They support and guide the
decisions made by every workforce member, helping your
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STRATEGIC OPPORTUNITIES. Prospects for new or organization accomplish its mission and attain its vision
changed products, services, processes, business models appropriately. Examples of values include demonstrating
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(including strategic alliances), or markets. They arise integrity and fairness in all interactions, exceeding customer
from outside-the-box thinking, brainstorming, capitalizing expectations, valuing individuals and diversity, protecting
on serendipity, research and innovation processes, nonlinear the environment, and striving for performance excellence
extrapolation of current conditions, and other approaches to every day.
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imagining a different future.

VISION. Your organization’s desired future state. The
The generation of ideas that lead to strategic opportunities
vision describes where your organization is headed, what it
benefits from an environment that encourages nondirected,
intends to be, or how it wishes to be perceived in the future.
free thought. Choosing which strategic opportunities to
pursue involves consideration of relative risk, financial and
VOICE OF THE CUSTOMER. Your process for capturing
otherwise, and then making intelligent choices (intelligent
customer-related information. Voice-of-the-customer
risks).
processes are intended to be proactive and continuously
See also INTELLIGENT RISKS. innovative to capture stated, unstated, and anticipated
customer requirements, expectations, and desires. The goal
SYSTEMATIC. Well-ordered, repeatable, and exhibiting is to achieve customer engagement. Listening to the voice of
the use of data and information so that learning is the customer might include gathering and integrating vari-
possible. Approaches are systematic if they build in the ous types of customer data, such as survey data, focus group
opportunity for evaluation, improvement, and sharing, findings, social media data and commentary, warranty data,
thereby permitting a gain in maturity. To see the term in use, marketing and sales information, and complaint data, that
refer to the Process Scoring Guidelines (page 32). affect customers’ purchasing and engagement decisions.

WORK PROCESSES. Your organization’s most important WORKFORCE CAPABILITY. Your organization’s ability
internal value-creation processes. They might include to accomplish its work processes through its people’s
product design, production, and delivery; customer support; knowledge, skills, abilities, and competencies.
supply-network management; business; and support
Capability may include the ability to build and sustain rela-
processes. They are the processes that involve the majority
tionships with customers; to innovate and transition to new
of your organization’s workforce and produce customer,
technologies; to develop new products and work processes;
stakeholder, and stockholder value.
and to meet changing business, market, and regulatory
Your key work processes are always accomplished by your demands.
workforce. They frequently relate to your core competencies,
the factors that determine your success relative to competi- WORKFORCE CAPACITY. Your organization’s ability
tors, and the factors your senior leaders consider important to ensure sufficient staffing levels to accomplish its
for business growth. In contrast, projects are unique work work processes and deliver your products to custom-
processes intended to produce an outcome and then go out ers, including the ability to meet seasonal or varying
of existence. demand levels.
WORK SYSTEMS. The coordinated combination of inter- WORKFORCE ENGAGEMENT. The extent of workforce
nal work processes and external resources that you need members’ emotional and intellectual commitment to
to develop and produce products, deliver them to your accomplishing your organization’s work, mission, and
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customers, and succeed in your marketplace. Within vision. Organizations with high levels of workforce engage-
your work systems, internal processes are those that involve ment are often characterized by high-performance work
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your workforce. External resources may include processes environments in which people are motivated to do their
performed by your key suppliers, partners, contractors, and utmost for their customers’ benefit and the organization’s
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collaborators, as well as other components of your supply success.
network needed to produce and deliver your products
In general, workforce members feel engaged when they
and carry out your business and support processes. These
find personal meaning and motivation in their work and
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internal processes and external resources function together
receive interpersonal and workplace support. An engaged
to accomplish your organization’s work.
workforce benefits from trusting relationships, a safe
Decisions about work systems are strategic, as you must and cooperative environment, good communication and
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decide whether to use internal processes or external information flow, empowerment, and accountability for per-
resources for maximum efficiency and sustainability in your formance. Key factors contributing to engagement include
marketplace. These decisions involve protecting intellectual training and career development, effective recognition and
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property, capitalizing on core competencies, and mitigating reward systems, equal opportunity and fair treatment, and
risk. The decisions you make have implications for your family-friendliness.
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organizational structure, people, work processes, and

equipment/technology.
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WORKFORCE. All people actively supervised by your

organization and involved in accomplishing your
organization’s work, including paid employees (e.g.,
permanent, part-time, temporary, on-site, and remote
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employees, as well as contract employees supervised by

your organization) and volunteers, as appropriate. Your
workforce includes team leaders, supervisors, and managers
at all levels.

Index of Key Terms
Page numbers in boldface indicate definitions in the Glossary of Key Terms (pages 46–53).
A community support, 9, 11, 41, 42 D

comparisons, iv, 6, 11, 12, 14, 15, 16,
About the Baldrige Excellence 24, 29, 30, 33, 35, 36, 37, 42, 45, 46, data
Framework, ii–iv 48, 49, 50, 51 analysis and use of, iii, 9, 10, 11, 12,
action plans, iii, v, vi, 4, 7, 10, 12, 15, competitors, iv, 6, 11, 12, 13, 14, 16, 14, 15, 16, 17, 24, 36, 42, 45, 46,
16, 18, 19, 26, 28, 30, 33, 36, 38, 46, 29, 35, 37, 38, 39, 40, 41, 42, 44, 46, 51, 52
48, 52 47, 51, 53 comparative/competitive, iv, 6, 11,
development and deployment of, complaints, management of, 14, 39 12, 14, 15, 16, 24, 29, 30, 33, 35,
vi, 10, 12, 46 compliance, legal and regulatory, 8, 36, 37, 42, 45, 46, 48, 49, 50, 51
ADLI (approach, deployment, 9, 42, 50 delivering value and results, iii, 38,
learning, integration). See Scoring core competencies, 4, 8, 9, 10, 11, 18, 40, 43
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System and individual terms 20, 21, 36, 38, 39, 41, 47, 48, 50, 51, deployment, iii, 6, 7, 12, 14, 15, 27, 29,
agility, iii, 1, 7, 8, 10, 11, 15, 16, 21, 38, 30, 32, 34, 35, 36, 46, 47, 48, 51
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53
39, 40, 41, 44, 45, 49 Core Values and Concepts, 38–43 diversity, 11, 18, 19, 26, 39, 47, 52
alignment, ii, 12, 15, 16, 18, 21, 29, 32,
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Criteria for Performance Excellence,
36, 38, 42, 44, 45, 46, 47, 48, 49 4–28 E
analysis, iii, 1, 3, 10, 12, 15, 16, 17, 23, items and point values, 3 ecosystem (business), 11, 38, 44, 47
24, 29, 31, 32, 36, 40, 41, 42, 46, 49, se
overview and structure, 1 effective (meaning of), 47
51
culture, organizational, 4, 5, 6, 7, 8, emergency preparedness, 9, 23, 24, 25
anecdotal, 32, 36, 46
14, 18, 19, 39, 41, 42, 44, 45, 48, 52 empowerment, iii, 19, 40, 42, 47, 48,
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approach (as evaluation factor), iii,
customer-focused excellence, iii, 38, 53
29, 32, 35, 36, 46, 48, 51, 52
39, 40, 47 engagement
area to address, 2, 35, 50
Customers (category 3), iii, 1, 3, 12, of customers, 7, 10, 13, 14, 25, 39,
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13–14, 24, 36, 40, 45 43, 44, 45, 47, 52

B customers, iii, 1, 3, 4, 5, 7, 8, 10, 11, of workforce, 3, 4, 7, 8, 18, 19, 26,
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basic (item) questions, 2, 32, 33, 46 12, 13–15, 16, 17, 18, 19, 21, 22, 23, 39, 42, 43, 44, 45, 47, 48, 53
benchmarks, iv, 14, 16, 24, 29, 33, 36, 24, 25, 27, 28, 29, 30, 33, 36, 38, 39, environment
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40, 42, 46, 49 40, 41, 42, 43, 44, 45, 47, 48, 49, 50, competitive, 6, 11, 30, 40, 41
best practices, ii, iv, 16, 17, 40, 42, 46, 51, 52, 53 organizational/operating, 1, 2, 4, 5,
49 dissatisfaction of, 14, 25, 50, 52 7, 8, 9, 15, 18, 19, 23, 29, 38, 41,
engagement of, 7, 10, 13, 14, 25, 39, 42, 46, 47, 50
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C 43, 44, 45, 47, 52 protection of, 5, 6, 8, 9, 42, 52

groups (segments), 4, 5, 11, 13, 14, regulatory, 4, 10
capability and capacity, workforce, 8, 24, 25, 27, 28, 36, 41, 45, 51
12, 18, 26, 41, 46, 49, 53 workforce, 3, 18, 19, 38, 39, 41, 47,
listening to, 13, 45, 52. See also 48, 52, 53
Changes from the 2017–2018 voice of the customer
Criteria, 44–45 ethics
loyalty of, 39, 47 and ethical behavior, 13, 14, 15, 17,
collaborators, 5, 10, 11, 15, 17, 38, 39, relationships with, 13, 25, 39, 45, 53
41, 43, 44, 47, 51, 53 19, 27, 38, 39, 40, 42, 48, 49, 50
requirements and expectations of, and transparency, iii, 38, 40, 42, 48
communication ii, 4, 5, 11, 13, 14, 21, 22, 23, 24,
with customers, 7, 14, 27, 39, 42 evaluation factors, iii, iv, 29–30, 35–36
30, 33, 39, 41, 42, 51, 52 excellence. See performance
by senior leaders, 7, 8, 12, 27, 38, retention of, 39, 50
42, 48, 49 excellence
satisfaction of, 13, 14, 21, 22, 25, 39,
with suppliers, partners, and 43, 45, 47, 50, 52
collaborators, 7, 21, 22, 27, 45 F
support of, 5, 13, 14, 39, 45, 53
with the workforce, v, 7, 8, 18, 19, cybersecurity, iv, 17, 23, 24, 41, 44, 45 focus on success, iii, 38, 40, 41
38, 42, 53 cycle time, 23, 24, 25, 40, 41, 47, 48, From Fighting Fires to Innovation, 34
communities, key, 9, 27 50, 52

G L P
Glossary of Key Terms, 54–56 leaders. See senior leaders partners, ii, 5, 7, 8, 10, 11, 12, 15, 17,
goals, ii, iii, 8, 10, 18, 28, 29, 30, 31, leadership, visionary, iii, 38, 40 23, 25, 27, 38, 39, 40, 41, 42, 43, 44,
36, 37, 39, 40, 42, 46, 47, 48, 49, Leadership (category 1), iii, 1, 3, 5, 45, 47, 48, 49, 50, 51, 53
50, 51 7–9, 36, 40, 45 performance, 50
governance, iii, 1, 3, 4, 5, 7, 8, 9, 15, leadership system, v, 4, 5, 7, 8, 45, 49 customer-focused, 24, 25, 50
24, 27, 38, 40, 42, 48, 51 learning, iii, vi, 6, 7, 17, 19, 20, 29, 30, financial market, and strategy, 28,
31, 32, 34, 35, 36, 37, 39, 40, 41, 46, 42, 52
H 48, 49, 50, 51, 52 improvement of, iii, iv, v, vi, 1, 3, 6,
organizational, 17, 30, 32, 34, 36, 7, 8, 15, 24, 29, 35, 36, 37, 38, 41,
high performance, ii, iii, 1, 7, 17, 18,
38, 40, 41, 49, 50 42, 47, 49, 50
19, 37, 38, 45, 47, 48, 50, 51
learning and development, measures and indicators of, 8, 9,
how (meaning of), 36, 48
workforce, 12, 19, 20, 36, 39, 45, 49, 12, 15, 16, 18, 19, 21, 24, 25, 26,
How to Respond to the Criteria,
50 27, 28, 29, 30, 36, 38, 42, 43, 46,
35–37
legal and regulatory compliance, 8, 9, 47, 48, 49, 50, 51
How to Use the Baldrige Excellence
42, 50 operational, 24, 50, 52
Framework, v–vi
LeTCI (levels, trends, comparisons, product, 13, 16, 21, 24, 37, 42, 47, 50
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integration). See Scoring System projections of, 10, 12, 15, 16, 28, 33,
I and individual terms 36, 37, 42, 49, 50–51, 52
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improvement levels (as evaluation factor), iv, 29, 30, workforce, 19, 42, 50
breakthrough, 29, 37, 46, 48, 49, 51 33, 35, 36, 37, 45, 48, 49, 51 performance excellence, ii, iv, vi, 1,
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continuous, 21, 40, 41 38, 44, 50, 52
cycles of, iv, 29, 35, 36, 49 M process (meaning of), 51
opportunities for, iii, vi, 19, 29, 36, se Process Scoring Guidelines, 32
management by fact, iii, 38, 41–42
39, 50, 52 processes. See also support processes;
managing for innovation, iii, 38, 40,
of performance, iii, iv, v, vi, 1, 3, 6, work processes
41
7, 8, 15, 24, 29, 35, 36, 37, 38, 41, design of, 21, 46
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Measurement, Analysis, and
42, 47, 49, 50 improvement of, iii, iv, 6, 21, 22, 36,
Knowledge Management
of products and processes, iii, iv, 6, 40, 41, 46, 47, 48
(category 4), iii, 1, 3, 12, 15–17, 40
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13, 21, 22, 36, 40, 41, 46, 47, 48 management of, 23
measures and indicators (of
tools for, ii, 6, 46 requirements for, 21, 30, 33, 51
performance), 8, 9, 12, 15, 16, 18,
indicators. See measures and productivity, 8, 16, 19, 23, 24, 41, 46,
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19, 21, 24, 25, 26, 27, 28, 29, 30, 36,
indicators of performance 38, 42, 43, 46, 47, 48, 49, 50, 51 47, 48, 50, 51, 52
information technology, 17, 23 mission, ii, 4, 5, 6, 7, 9, 19, 33, 35, 38, products, iii, 1, 4, 5, 6, 8, 10, 11, 13,
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innovation, iii, iv, v, vi, 5, 6, 7, 8, 10, 47, 48, 50, 52, 53 14, 16, 21, 22, 23, 24, 25, 29, 36, 37,
11, 12, 15, 16, 17, 20, 21, 22, 24, 25, 39, 40, 41, 42, 44, 46, 47, 48, 49, 50,
multiple (item) questions, 2, 32, 33,
29, 31, 32, 34, 36, 38, 39, 40, 41, 42, 51, 52
35, 50
48, 49, 50, 51, 52 design of, 10, 13, 21, 22, 41, 53
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managing for, iii, 38, 40, 41 improvement of, 13, 21, 40, 41, 48
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integration, iii, iv, 1, 6, 29, 30, 31, 32, performance of, 13, 16, 21, 24, 37,
33, 35, 36, 38, 41, 47, 48, 49, 50, 51 Operations (category 6), iii, 1, 3, 9, 12, 42, 47, 50
intelligent risks, 7, 8, 16, 19, 21, 28, 19, 21–23, 24, 25, 36, 40, 45 requirements for, 21, 29
39, 41, 48, 49, 52 opportunities for improvement, iii, vi, projections of performance, 10, 12,
items (Criteria), 2, 3 19, 20, 29, 36, 39, 50, 52 15, 16, 28, 33, 36, 37, 42, 49, 50–51,
organizational learning and agility, iii, 52
K 38, 40–41, 49
organizational learning, 17, 30, 32, R
key (meaning of), 49 34, 36, 38, 40, 41, 49, 50
knowledge, organizational, 10, 17, 21, Organizational Profile (preface), ii, v, recruitment of workforce, 18, 46
24, 38, 39, 40, 41 vi, 1, 2, 3, 4–6, 22, 24, 29, 30, 32, 35, regulatory and legal compliance, 8, 9,
knowledge assets, 15, 17, 49 36, 37, 45, 50 42, 50
knowledge management, iii, 1, 3, 12, overall (item) questions, 2, 32, 33, 50 requirements
15, 17, 40 of customers, ii, 4, 5, 11, 13, 14, 21,
22, 23, 24, 30, 33, 39, 41, 42, 51, 52
Index of Key Terms 55

legal and regulatory, 4, 8, 9, 12, 27, segment, 4, 5, 11, 13, 14, 18, 19, 24, V
41, 42 25, 26, 27, 28, 29, 36, 37, 41, 42, 45,
for processes, 21, 30, 33, 51 51 value, 7, 12, 13, 21, 22, 39, 41, 43, 48,
for products, 21, 29 senior leaders, v, 3, 4, 7, 8, 9, 12, 15, 49, 50, 52, 53
resource allocation, 10, 11, 12, 16, 21, 27, 38, 39, 42, 45, 46, 48, 51, 53 delivering, iii, 43
38, 41, 52 societal contributions, iii, 3, 6, 7, 8, 9, values, 4, 5, 7, 19, 27, 38, 39, 42, 44,
results, ii, iii, iv, v, 1, 2, 3, 4, 7, 9, 12, 27, 38, 40, 41, 42, 45 48, 49, 52
13, 14, 15, 16, 18, 19, 24–28, 29, 30, stakeholders, 4, 5, 7, 8, 9, 10, 22, 23, valuing people, iii, 38, 39, 40, 47, 49
33, 35, 36, 37, 38, 40, 42, 43, 45, 46, 27, 38, 41, 42, 43, 48, 49, 50, 51, 52, vision, iii, 4, 7, 19, 27, 38, 48, 49, 52,
47, 48, 49, 50, 51, 52 53 53
customer, 1, 3, 14, 24, 25, 40, 43 Steps toward Mature Processes, 31 visionary leadership, iii, 38–39, 40
financial, market, and strategy 1, 3, strategic advantages, 6, 10, 41, 51 voice of the customer, 13, 14, 39, 45,
12, 24, 28, 40, 43, 45 strategic challenges, 6, 10, 20, 47, 52 52
leadership and governance, 1, 3, 7, strategic objectives, 7, 8, 10, 11, 12, volunteers, 5, 6, 8, 10, 11, 18, 26, 39,
9, 24, 27, 40 15, 18, 21, 28, 30, 36, 38, 39, 41, 42, 40, 53
product and process, 1, 3, 13, 24, 46, 48, 50, 52
37, 40, 43 strategic opportunities, 10, 21, 22, 41, W
workforce, 1, 3, 18, 24, 26, 40, 43 48, 52 what (meaning of), 36
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Results (category 7), iii, 1, 3, 24–28, strategic planning process, iii, 10, 11, work processes, 3, 11, 12, 18, 21, 23,
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29, 35, 36, 40, 45 17 24, 25, 26, 36, 40, 41, 45, 46, 47, 49,
Results Scoring Guidelines, 33 Strategy (category 2), iii, 1, 3, 10–12, 50, 53
15, 18, 36, 40
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retention work systems, 8, 10, 11, 16, 18, 21, 25,
customer, 39, 50 strengths, ii, iii, iv, vi, 11, 29, 41, 50 36, 38, 40, 41, 46, 47, 53
workforce, 19, 50 succession planning, 7, 8, 19, 41, 48 workforce
risk, 4, 5, 8, 10, 11, 12, 21, 23, 27, 28,
38, 40, 41, 48, 49, 52
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suppliers and supply network, 5, 6, 7,
8, 9, 10, 11, 12, 15, 17, 21, 22, 23, 24,
capability and capacity of, 8, 12, 18,
26, 41, 46, 49, 53
intelligent, 7, 8, 16, 20, 21, 28, 39, 25, 38, 40, 41, 42, 43, 44, 45, 46, 47, engagement of, 3, 4, 7, 8, 18, 19, 26,
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41, 48, 49, 52 48, 49, 51, 53 39, 42, 43, 44, 45, 47, 48, 53
support processes, 21, 22, 24, 53 learning and development of, 12,
S systematic, iii, 14, 29, 31, 32, 34, 36, 19, 20, 36, 39, 45, 49, 50
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40, 41, 46, 52 performance of, 19, 42, 50

safety, 4, 9, 19, 23, 24, 25, 27, 37, 39, systems perspective, ii, iii, vi, 1, 23,
42, 53 recruitment of, 18, 46
38, 40, 44
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Scoring Guidelines retention and turnover of, 19, 50

Process, 32 Workforce (category 5), iii, 1, 3, 5, 12,
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Results, 33 18–20, 26, 36, 40, 45

Scoring System, 29–34 trends, iv, 16, 29, 30, 33, 35, 36, 37, 42, workforce environment, 3, 18, 19, 38,
45, 51, 52 39, 41, 47, 48, 52, 53
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List of Contributors
The Baldrige Program thanks the following groups and individuals for contributing to the
development of the 2019–2020 Baldrige Excellence Framework.
Diane Akers Maureen Frye John Molenda

Alliance for Performance Excellence Chris Gallegos Sharon Muret-Wagstaff
Jelili A. Apalara Dawn Garcia Joe Muzikowski
Caroline Bartha Janice Garfield Suresh Nirody
Daniel Barton Linda Parker Gates Michael Novak
Michael Belter Gregory Gibson Larry Owen
Mark Blazey Douglas Gilbert Tamera Parsons
Board of Examiners of the Malcolm Baldrige Kathie Gilbert Theron Post
National Quality Award Toby Gouker Larry Potterfield
Board of Overseers of the Malcolm Baldrige Paul Grizzell MaryAnn Pranke
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National Quality Award Glenn Hamamura Bruce Requa
Glenn Bodinson Marcia Harrington Rob Rouzer
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Steven Bonk Denise Haynes Terri Runyan
Linda Bounds Robert Henke C. W. Russ Russo
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Sherry Bright Deanna Herwald Lara Salazar
Cheryl Brown Margot Hoffman Jerry Salkowe
Debbie Cardello Cary Hill Conley Salyer
Allison Carter
Candy Cates
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Tim Holtsman
Jerry Isikoff
Robert Scanlon
Doug Serrano
M. M. “Mickey” Christensen Cheryl Jones Janoski Denise Shields
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Ceu Cirne-Neves Kathy Jenson Patricia Skriba
Adam Cohen Jan Johnson Morgan Smyth
William Craddock Nancy Jokovich Efrain Solis
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Catherine Craver Marylynne Kelts Kristin Stehouwer

Glenn Crotty Kay Kendall Henry Stevenson-Perez
Jake Dablemont Nusrat Noureen Khan James Swofford
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Michele Dane Joe Kilbride JoAnn Tipton

Stephen Davidow Reatha Clark King Sam D. Turner Jr.
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Kenneth Dean Laura Kinney James Turnham

Albert Doeve Lori Kirkland John Vinyard
Margaret Dospiljulian Miriam Kmetzo Polly Walker
Tammy Dye Raina Knox Anne Warner
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Cyrus Engineer Sandra Kube Robert W. Warren

Mark Erath Pat Lapekas Steffani Webb
Joel Ettinger Brian Lassiter Jeffrey Weinrach
Craig Fairlee Jack Lynch Vicki Wetenkamp
Joel Felten Cindy Manjounes Phil Wilson
Matt Fleming Deborah Manzo Sonja Wulff
Eric Fletcher Anita Marx James Youngquist
Gary Floss Donald McCary
Stan Frink Emily Miller

2019–2020 Baldrige Performance Excellence Framework
Criteria Commentary
This commentary provides brief summaries of the Baldrige Criteria for Performance Excellence categories and items. It also
includes examples and guidance to supplement the notes that follow each Criteria item in the Baldrige Excellence
Framework booklet. For additional free content, and to purchase the booklet, see www.nist.gov/baldrige/publications.
Your Organizational Profile provides a framework for understanding your organization. It also helps you guide and
prioritize the information you present in response to the Criteria items in categories 1–7.
The Organizational Profile gives you critical insight into the key internal and external factors that shape your operating
environment. These factors, such as your organization’s vision, culture and values, mission, core competencies,
competitive environment, and strategic challenges and advantages, impact the way your organization is run and the
decisions you make. As such, the Organizational Profile helps you better understand the context in which you operate;
the key requirements for current and future business success; and the needs, opportunities, and constraints placed on
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your management systems.
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P.1 Organizational Description
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Purpose
This item addresses the key characteristics and relationships that shape your organizational environment. The aim is to
set the context for your organization.
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Commentary
Understand your organization. The use of such terms as vision, values, culture, mission, and core competencies varies
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depending on the organization, and you may not use one or more of these terms. Nevertheless, you should have a clear
understanding of the essence of your organization, why it exists, and where your senior leaders want to take it in the
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future. This clarity enables you to make and implement strategic decisions affecting your organization’s future.
Understand your core competencies. A clear identification and thorough understanding of your organization’s core
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competencies are central to success now and in the future and to competitive performance. Executing your core
competencies well is frequently a marketplace differentiator. Keeping your core competencies current with your strategic
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directions can provide a strategic advantage, and protecting intellectual property contained in your core competencies
can support your organization’s future success.
Understand your regulatory environment. The regulatory environment in which you operate places requirements on
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your organization and affects how you run it. Understanding this environment is key to making effective operational and
strategic decisions. Furthermore, it allows you to identify whether you are merely complying with the minimum
requirements of applicable laws, regulations, and standards of practice or exceeding them, a hallmark of leading
organizations and a potential source of competitive advantage.
Identify governance roles and relationships. Role-model organizations—whether they are publicly or privately held, or
are government or nonprofit organizations—have well-defined governance systems with clear reporting relationships. It
is important to clearly identify which functions are performed by your senior leaders and, as applicable, by your
governance board and parent organization. Board independence and accountability are frequently key considerations in
the governance structure.
Understand your customers’ requirements. The requirements of your customer groups and market segments might
include on-time delivery; low defect levels; safety; security, including cybersecurity; ongoing price reductions; the
leveraging of technology; rapid response; after-sales service; and multilingual services. The requirements of your
stakeholder groups might include socially responsible behavior and community service. For some nonprofit (including
government) organizations, these requirements might also include administrative cost reductions, at-home services, and
rapid response to emergencies.
2019–2020 Baldrige Excellence Framework: Criteria Commentary A-1

Understand the role of suppliers. In most organizations, suppliers play critical roles in processes that are important to
running the business and to maintaining or achieving a sustainable competitive advantage. Supply-network
requirements might include on-time or just-in-time delivery, flexibility, variable staffing, research and design capability,
process and product innovation, and customized manufacturing or services.
Understand your ecosystem. With the increase in multidisciplinary products and services, as well as globalization, many
organizations rely ever more heavily on a business ecosystem—a network of suppliers, partners, collaborators, and even
customers and competitors, with these roles shifting as necessary. Taking advantage of these ecosystems may result in
new business models, new customers, new talent pools, and much greater efficiency in meeting customer expectations. In
some cases, the organization’s growth may depend on the collective growth of the ecosystem and its ability to prepare for
the future. And as competition comes from organizations in different industries, organizations may be able to stand out
from their competitors through new and novel offerings, possibly through the ecosystem.
P.2 Organizational Situation

Purpose
This item asks about the competitive environment in which your organization operates, including your key strategic
challenges and advantages. It also asks how you approach performance improvement and learning. The aim is to help
you understand your key organizational challenges and your system for establishing and preserving your competitive
advantage.
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Commentary
Know your competitors. Understanding who your competitors are, how many you have, and their key characteristics is
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essential for determining your competitive advantage in your industry and marketplace. Leading organizations have an
in-depth understanding of their current competitive environment, including key changes taking place.
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Sources of comparative and competitive data might include industry publications, benchmarking activities, annual
reports for publicly traded companies and public organizations, conferences, local networks, and industry associations.
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Strategic challenges and advantages. Operating in today’s highly competitive marketplace means facing strategic
challenges that can affect your ability to sustain performance and maintain your competitive position. Understanding
your strategic advantages is as important as understanding your strategic challenges. They are the sources of competitive
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advantage to capitalize on and grow while you continue to address key challenges. Strategic challenges and advantages
might relate to technology, products, finances, operations, organizational structure and culture, your parent
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organization’s capabilities, customers and markets, brand recognition and reputation, your industry, globalization, your
value network, and people.
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Know your strategic challenges. These challenges might include the following:
• Your operational costs (e.g., materials, labor, or geographic location)
•
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Expanding or decreasing markets

• Mergers or acquisitions by your organization and your competitors
• Economic conditions, including fluctuating demand and local and global economic downturns
• The cyclical nature of your industry
• The introduction of new or substitute products
• Rapid technological changes
• Data and information security, including cybersecurity
• New competitors entering the market
• The availability of skilled labor
• The retirement of an aging workforce
Know your strategic advantages. These advantages might include the following:
• Industry innovation leadership
• Customer service recognition
• Brand recognition
• Agility
• Supply-network integration
• Price leadership

• Reputation for quality and reliability
• Environmental (“green”) stewardship
• Social responsibility and community involvement
• Geographic proximity
• Accessibility
• Warranty and product options
For some nonprofit (including government) organizations, differentiators might also include relative influence with
decision makers, ratio of administrative costs to programmatic contributions, reputation for program or service delivery,
and wait times for service.
Prepare for disruptive technologies. A particularly significant challenge is being prepared for a disruptive technology
that threatens your competitive position or your marketplace. Recently, such technologies have included smart phones
challenging traditional forms of communication, computing, and commerce of all types; online stores challenging brick-
and-mortar establishments; email, messaging, and social media challenging all other means of communication; and app-
based ride services challenging traditional transportation services. Today, organizations need to be scanning the
environment inside and outside their immediate industry to detect such challenges at the earliest possible point in time.
Four emerging technologies that continue to drive change in many industries are mobile solutions, cognitive computing
(or artificial intelligence), cloud computing, and the Internet of Things. Organizations need to be aware of the potential
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for these technologies to create challenges and opportunities in their own marketplace.
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Leadership (Category 1)
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This category asks how senior leaders’ personal actions and your governance system guide and sustain your
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1.1 Senior Leadership
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Purpose
This item asks about the key aspects of your senior leaders’ responsibilities, with the aim of creating an organization that
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is successful now and in the future.

Commentary
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The role of senior leaders. Senior leaders play a central role in setting values and directions, creating and reinforcing an
organizational culture, communicating, creating and balancing value for all stakeholders, and creating an organizational
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focus on action, including transformational change in the organization’s structure and culture, when needed. Success
requires a strong orientation to the future; an understanding that risk is a part of planning and conducting operations; a
commitment to improvement, innovation, and intelligent risk taking; and a focus on organizational sustainability.
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Increasingly, this requires creating an environment for empowerment, agility, change, and learning.
Role-model senior leaders. In highly respected organizations, senior leaders are committed to establishing a culture of
customer engagement, developing the organization’s future leaders, and recognizing and rewarding contributions by
workforce members. They personally engage with key customers. Senior leaders enhance their personal leadership skills.
They participate in organizational learning, the development of future leaders, succession planning, and recognition
opportunities and events that celebrate the workforce. Development of future leaders might include personal mentoring,
coaching, or participation in leadership development courses. Role-model leaders recognize the need for
transformational change when warranted and then lead the effort through to full fruition. They demonstrate authenticity,
admit to missteps, and demonstrate accountability for the organization’s actions.
Legal and ethical behavior. In modeling ethical behavior, leaders must often balance the demand for delivery of short-
term results with setting the tone for an ethical climate and a policy of integrity first.
Creating an environment for innovation. Leading for innovation starts by setting a clear direction. Leaders need to
communicate about the problems or opportunities the organization is trying to address, and then create a supportive
environment and clear process that will encourage and approve intelligent risk taking.

1.2 Governance and Societal Contributions
Purpose
This item asks about key aspects of your governance system, including the improvement of leaders and the leadership
system. It also asks how the organization ensures that everyone in the organization behaves legally and ethically, how it
fulfills its societal contributions, and how it supports its key communities.
Commentary
Organizational governance. This item addresses the need for a responsible, informed, transparent, and accountable
governance or advisory body that can protect the interests of key stakeholders (including stockholders) in publicly
traded, private, and nonprofit organizations. This body should have independence in review and audit functions, as well
as a function that monitors organizational and CEOs’ or chief administrators’ performance.
Legal compliance, ethics, and risks. An integral part of performance management and improvement is proactively
addressing (1) the need for ethical behavior, (2) all legal and regulatory requirements, and (3) risk factors. Ensuring high
performance in these areas requires establishing appropriate measures or indicators that senior leaders track. You should
be sensitive to issues of public concern, whether or not these issues are currently embodied in laws and regulations. Role-
model organizations look for opportunities to excel in areas of legal and ethical behavior. Role-model organizations also
recognize the need to accept risk, identify appropriate levels of risk for the organization, and make and communicate
policy decisions on risk.
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Public concerns. Public concerns that charitable and government organizations should anticipate might include the cost
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of programs and operations, timely and equitable access to their offerings, and perceptions about their stewardship of
resources.
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Conservation of natural resources. Conservation might be achieved through the use of “green” technologies, reduction
of your carbon footprint, replacement of hazardous chemicals with water-based chemicals, energy conservation, use of
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cleaner energy sources, or recycling of by-products or wastes.
Societal contributions. As the concept of corporate social responsibility has become accepted, high-performing
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organizations see contributing to society as more than something they must do. Going above and beyond their
responsibilities in contributing to society can be a driver of customer and workforce engagement and a market
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differentiator. Societal contributions imply going beyond a compliance orientation. Opportunities to contribute to the
well-being of environmental, social, and economic systems and opportunities to support key communities are available
to organizations of all sizes. The level and breadth of these contributions will depend on the size of your organization and
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your ability to contribute. Increasingly, decisions to engage with an organization include consideration of its societal
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contributions.
Community support. Examples of organizational community involvement include
• partnering with schools and school boards to improve education;
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• partnering with health care providers to improve health in the local community by providing education and
volunteer services to address public health issues; and
• partnering to influence trade, business, and professional associations to engage in beneficial, cooperative
activities, such as voluntary standards activities or sharing best practices to improve overall U.S. global
competitiveness and ethical and societal well-being.
Some nonprofits may contribute to society and support their key communities totally through their mission-related
activities. In such cases, community support includes any “extra efforts,” such as partnering with other nonprofit
organizations or businesses to improve the overall performance and stewardship of public and charitable resources.
Strategy (Category 2)
This category asks how you develop strategic objectives and action plans, implement them, change them if circumstances
require, and measure progress.
The category stresses that your organization’s long-term organizational success and competitive environment are key
strategic issues that need to be integral parts of your overall planning. Making decisions about your organization’s core

competencies and work systems is an integral part of ensuring your organization’s success now and in the future, and
these decisions are therefore key strategic decisions.
While many organizations are increasingly adept at strategic planning, executing plans is still a significant challenge. This
is especially true given market demands to be agile and be prepared for unexpected change, such as volatile economic
conditions or disruptive technologies that can upset an otherwise fast-paced but more predictable marketplace. This
category highlights the need to focus not only on developing your plans, but also on your capability to execute them.
The Baldrige framework emphasizes three key aspects of organizational excellence that are important to strategic
planning:
• Customer-focused excellence is a strategic view of excellence. The focus is on the drivers of customer
engagement, new markets, and market share—key factors in competitiveness, profitability, and long-term
organizational success.
• Operational performance improvement and innovation contribute to short- and longer-term productivity
growth and cost/price competitiveness. Building operational capability—including speed, responsiveness, and
flexibility—is an investment in strengthening your organizational fitness.
• Organizational learning and learning by workforce members are necessary strategic considerations in today’s
fast-paced environment. The Criteria emphasize that improvement and learning need to be embedded in work
processes. The special role of strategic planning is to align work systems and learning initiatives with your
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organization’s strategic directions, thereby ensuring that improvement and learning prepare you for and
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reinforce organizational priorities.
This category asks how you
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• consider key elements of risk in your strategic planning process, including strategic opportunities, challenges,
and advantages, and the potential need for transformational change in organizational structure or culture;
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• optimize the use of resources, ensure the availability of a skilled workforce, and bridge short- and longer-term
requirements that may entail capital expenditures, technology development or acquisition, supplier
development, and new partnerships or collaborations; and
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• ensure that implementation will be effective—that there are mechanisms to communicate requirements and
achieve alignment on three levels: (1) the organization and executive level, (2) the key work system and work
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process level, and (3) the work unit and individual job level.
The questions in this category encourage strategic thinking and acting in order to develop a basis for a distinct
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competitive position in the marketplace. These questions do not imply the need for formal planning departments, specific
planning cycles, or a specified way of visualizing the future. They do not imply that all your improvements could or
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should be planned in advance. An effective improvement system combines improvements of many types and degrees of
involvement. This requires clear strategic guidance, particularly when improvement alternatives, including major change
or innovation, compete for limited resources. In most cases, setting priorities depends heavily on a cost, opportunity, and
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threat rationale. However, you might also have critical requirements, such as societal contributions, that are not driven by
cost considerations alone.
2.1 Strategy Development

Purpose
This item asks how you establish a strategy to address your organization’s challenges and leverage its advantages and
how you make decisions about key work systems and core competencies. It also asks about your key strategic objectives
and their related goals. The aim is to strengthen your overall performance, competitiveness, and future success.
Commentary
A context for strategy development. This item calls for basic information on the planning process and for information on
all key influences, risks, challenges, and other requirements that might affect your organization’s future opportunities
and directions—taking as long term a view as appropriate and possible from the perspectives of your organization and
your industry or marketplace. This approach is intended to provide a thorough and realistic context for developing a
customer- and market-focused strategy to guide ongoing decision making, resource allocation, and overall management.
A future-oriented basis for action. This item is intended to cover all types of businesses, for-profit, and nonprofit
(including government) organizations, competitive situations, strategic issues, planning approaches, and plans. The

questions explicitly call for a future-oriented basis for action. Even if your organization is seeking to create an entirely
new business, you still need to set and test the objectives that define and guide critical actions and performance.
Competitive leadership. This item emphasizes competitive leadership, which usually depends on revenue growth and
operational effectiveness. Competitive leadership requires a view of the future that includes not only the markets or
segments in which you compete but also how you compete. How to compete presents many options. Deciding how to
compete requires that you understand your and your competitors’ strengths and weaknesses and also involves decisions
on taking intelligent risks in order to gain or retain market leadership. Although no specific time horizons are included,
the thrust of this item is sustained competitive leadership.
Data and information for strategic planning. Data and information may come from a variety of internal and external
sources and in a variety of forms, and they are available in increasingly greater volumes and at greater speeds. The ability
to capitalize on data and information, including large datasets (“big data”), is based on the ability to analyze the data,
draw conclusions, and pursue actions, including intelligent risks.
Blind spots. Blind spots arise from incorrect, incomplete, obsolete, or biased assumptions or conclusions that cause gaps,
vulnerabilities, risks, or weaknesses in your understanding of the competitive environment and strategic challenges your
organization faces. Blind spots may arise from new or replacement offerings or business models coming from inside or
outside your industry.
Managing strategic risk. Your decisions about addressing strategic challenges, changes in your regulatory and external
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business environment, blind spots in your strategic planning, and gaps in your ability to execute the strategic plan may
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give rise to organizational risk. Analysis of these factors is the basis for managing strategic risk in your organization.
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Work systems. Efficient and effective work systems require
• effective design;
• a prevention orientation;
•
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linkage to customers, suppliers, partners, and collaborators;
• a focus on value creation for all key stakeholders; operational performance improvement; cycle time reduction;
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and evaluation, continuous improvement, innovation, and organizational learning; and
• regular review to evaluate the need for fundamental changes in the way work is accomplished.
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Work systems must also be designed in a way that allows your organization to be agile and protect intellectual property.
In the simplest terms, agility is the ability to adapt quickly, flexibly, and effectively to changing requirements. Depending
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on the nature of your strategy and markets, agility might mean the ability to change rapidly from one product to another,
respond rapidly to changing demands or market conditions, or produce a wide range of customized services. Agility and
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protection of intellectual property also increasingly involve decisions to outsource, agreements with key suppliers, and
novel partnering arrangements.
Work systems and ecosystems. Organizations should view the ecosystem strategically. They need to be open to new
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partnership arrangements, consortia, value webs, and business models that support the organization’s vision and goals.
The organization’s growth may depend on the collective growth of the ecosystem and its ability to prepare for the future.
And as competition comes from organizations in different industries, organizations may be able to stand out from their
competitors through new and novel offerings, possibly through the ecosystem. Your strategy should take into account
your role and your desired role within the ecosystem (as a partner, collaborator, supplier, competitor, or customer—or
several of these).
Strategic objectives. Strategic objectives might address product and service quality enhancements, workforce capability
and capacity, rapid response, customization, co-location with major customers or partners, specific joint ventures, virtual
manufacturing, rapid or market-changing innovation, ISO quality or environmental systems registration, and societal
contribution actions or leadership.
2.2 Strategy Implementation

Purpose
This item asks how you convert your strategic objectives into action plans to accomplish the objectives and how you
assess progress relative to these action plans. The aim is to ensure that you deploy your strategies successfully and
achieve your goals.

Commentary
Developing and deploying action plans. Accomplishing action plans requires resources and performance measures, as
well as alignment among the plans of your work units, suppliers, and partners. Of central importance is how you achieve
alignment and consistency—for example, via work systems, work processes, and key measurements. Also, alignment and
consistency provide a basis for setting and communicating priorities for ongoing improvement activities—part of the
daily work of all work units. In addition, performance measures are critical for tracking performance. Action plan
implementation and deployment may require modifications in organizational structures and operating modes. The
success of action plans benefits from visible short-term wins as well as long-term actions.
Performing analyses to support resource allocation. You can perform many types of analyses to ensure that financial
resources are available to support the accomplishment of your action plans while you meet current obligations. For
current operations, these efforts might include the analysis of cash flows, net income statements, and current liabilities
versus current assets. For investments to accomplish action plans, the efforts might include analysis of discounted cash
flows, return on investment, or return on invested capital.
Analyses also should evaluate the availability of people and other resources to accomplish your action plans while
continuing to meet current obligations. Financial resources must be supplemented by capable people and the necessary
facilities and support.
The specific types of analyses performed will vary from organization to organization. These analyses should help you
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assess the financial viability of your current operations and the potential viability of and risks associated with your action
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plan initiatives.
Creating workforce plans. Action plans should include human resource or workforce plans that are aligned with and
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support your overall strategy. Examples of possible plan elements are
• a redesign of your work organization and jobs to increase workforce empowerment and decision making;
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• initiatives to promote greater labor-management cooperation, such as union partnerships;
• consideration of the impacts of outsourcing on your current workforce and initiatives;
• initiatives to prepare for future workforce capability and capacity needs;
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• initiatives to foster knowledge sharing and organizational learning;
• modification of your compensation and recognition systems to recognize team, organizational, stock market,
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customer, or other performance attributes; and

• education and training initiatives, such as developmental programs for future leaders, partnerships with
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universities to help ensure the availability of an educated and skilled workforce, and training programs on new
technologies important to the future success of your workforce and organization.
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Projecting your future environment. An increasingly important part of strategic planning is projecting the future
competitive and collaborative environment. This includes the ability to project your own future performance, as well as
that of your competitors. Such projections help you detect and reduce competitive threats, shorten reaction time, and
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identify opportunities. Depending on your organization’s size and type, the potential need for new core competencies,
the maturity of markets, the pace of change, and competitive parameters (e.g., price, costs, or the innovation rate), you
might use a variety of modeling, scenarios, or other techniques and judgments to anticipate the competitive and
collaborative environment.
Projecting and comparing your performance. Projections and comparisons in this item are intended to improve your
organization’s ability to understand and track dynamic, competitive performance factors. Projected performance might
include changes resulting from new business ventures, entry into new markets, the introduction of new technologies,
product innovations, or other strategic thrusts that might involve a degree of intelligent risk.
Through this tracking, you should be better prepared to take into account your organization’s rate of improvement and
change relative to that of competitors or comparable organizations and relative to your own targets or stretch goals. Such
tracking serves as a key diagnostic tool for you to use in deciding to start, accelerate, or discontinue initiatives and to
implement needed organizational change.

Customers (Category 3)
This category asks how you engage customers for long-term marketplace success, including how you listen to customers,
serve and exceed customers’ expectations, and build customer relationships.
The category stresses customer engagement as an important outcome of an overall learning and performance excellence
strategy. Your customer satisfaction and dissatisfaction results provide vital information for understanding your
customers and the marketplace. In many cases, the voice of the customer provides meaningful information not only on
your customers’ views but also on their marketplace behaviors and on how these views and behaviors may contribute to
your organization’s current and future success in the marketplace.
3.1 Customer Listening

Purpose
This item asks about your processes for listening to your customers and determining customer groups and segments. It
also asks about your processes for determining and customizing product offerings that serve your customers and
markets. The aim is to capture meaningful information in order to exceed your customers’ expectations and improve
marketing.
Commentary
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Customer listening. Selection of voice-of-the-customer strategies depends on your organization’s key business factors.
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Most organizations listen to the voice of the customer via multiple modes. Some frequently used modes include focus
groups with key customers, close integration with key customers, interviews with lost and potential customers about
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their purchasing or relationship decisions, customer comments posted on social media, win/loss analysis relative to
competitors and other organizations providing similar products, and survey or feedback information.
Actionable information. This item emphasizes how you obtain actionable information from customers. Information is
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actionable if you can tie it to key product offerings and business processes and use it to determine the cost and revenue
implications of setting particular improvement goals and priorities for change.
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Listening/learning and business strategy. In a rapidly changing technological, competitive, economic, and social
environment, many factors may affect customer expectations and loyalty and your interface with customers in the
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marketplace. This makes it necessary to continually listen and learn. To be effective, listening and learning need to be
closely linked with your overall business strategy.
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Social media. Customers are increasingly turning to social media to voice their impressions of your products and
customer support. They may provide this information through social interactions you mediate or through independent or
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customer-initiated means. All of these can be valuable sources of information for your organization. Negative
commentary can be a valuable source for improvement, innovation, and immediate service recovery. Organizations need
to become familiar with vehicles for monitoring and tracking this information.
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Social media is both a means of listening to customers and a means of communication, outreach, and engagement.
Effective use of social media has become a significant factor in customer engagement, and ineffective use can be a driver
of disengagement and relationship deterioration or destruction.
Customer and market knowledge. Knowledge of customers, customer groups, market segments, former customers, and
potential customers allows you to tailor product offerings, support and tailor your marketing strategies, develop a more
customer-focused workforce culture, develop new business, evolve your brand image, and ensure long-term
organizational success.
3.2 Customer Engagement

Purpose
This item asks about your processes for building relationships with customers; enabling them to seek information and
support; and managing complaints. The item also asks how you determine customer satisfaction and dissatisfaction, and
how you use the voice-of-the-customer data that you collect. The aim of these efforts is to build a more customer-focused
culture and enhance customer loyalty.

Commentary
Engagement as a strategic action. Customer engagement is a strategic action aimed at achieving such a degree of loyalty
that the customer will advocate for your brand and product offerings. Achieving such loyalty requires a customer-
focused culture in your workforce based on a thorough understanding of your business strategy and your customers’
behaviors and preferences.
Customer relationship strategies. A relationship strategy may be possible with some customers but not with others. The
relationship strategies you do have may need to be distinctly different for each customer, customer group, and market
segment. They may also need to be distinctly different during various stages of the customer life cycle. Building customer
relationships might include developing partnerships or alliances with customers.
Brand management. Brand management is aimed at positioning your product offerings in the marketplace. Effective
brand management leads to improved brand recognition and customer loyalty. Brand management is intended to build
the customer’s emotional attachment for the purpose of differentiating yourself from the competition and building
loyalty.
Customer support. The goal of customer support is to make your organization easy to do business with and responsive
to your customers’ expectations.
Determining customer satisfaction and dissatisfaction. You might use any or all of the following to determine customer
satisfaction and dissatisfaction: surveys, formal and informal feedback, customer account histories, complaints, field
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reports, win/loss analysis, customer referral rates, and transaction completion rates. You might gather information on the
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web, through personal contact or a third party, or by mail.
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Complaint management. Complaint aggregation, analysis, and root-cause determination should lead to effective
elimination of the causes of complaints and to the setting of priorities for process and product improvements. Successful
outcomes require effective deployment of information throughout your organization.
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Customers’ satisfaction with competitors. A key aspect of determining customers’ satisfaction and dissatisfaction is
determining their comparative satisfaction with competitors, competing or alternative offerings, and/or organizations
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providing similar products. Such information might be derived from win/loss analyses, your own comparative studies, or
independent studies. The factors that lead to customer preference are critically important in understanding factors that
drive markets and potentially affect your organization’s longer-term competitiveness and success.
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Measurement, Analysis, and Knowledge Management (Category 4)

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In the simplest terms, category 4 is the “brain center” for the alignment of your operations with your strategic objectives.
It is the main point within the Criteria for all key information on effectively measuring, analyzing, and improving
performance and managing organizational knowledge to drive improvement, innovation, and organizational
competitiveness. Central to this use of data and information are their quality and availability. Furthermore, since
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information, analysis, and knowledge management might themselves be primary sources of competitive advantage and
productivity growth, this category also includes such strategic considerations.
4.1 Measurement, Analysis, and Improvement of Organizational Performance

Purpose
This item asks how you select and use data and information for performance measurement, analysis, and review in
support of organizational planning and performance improvement. The item serves as a central collection and analysis
point in an integrated performance measurement and management system that relies on financial and nonfinancial data
and information. The aim of performance measurement, analysis, review, and improvement is to guide your process
management toward the achievement of key organizational results and strategic objectives, anticipate and respond to
rapid or unexpected organizational or external changes, and identify best practices to share.
Commentary
Aligning and integrating your performance management system. Alignment and integration are key concepts for
successfully implementing and using your performance measurement system. The Criteria view alignment and
integration in terms of how widely and how effectively you use that system to meet your needs for organizational
performance assessment and improvement and to develop and execute your strategy.

Alignment and integration include how measures are aligned throughout your organization and how they are integrated
to yield organization-wide data and information. Organization-wide data and information are key inputs to
organizational performance reviews and strategic decision making. Alignment and integration also include how your
senior leaders deploy performance measurement requirements to track work group and process-level performance on
key measures that are targeted for their organization-wide significance or for improvement.
Big data. The challenge, and the potential, of ever-increasing amounts of and modalities for data lies in choosing,
synthesizing, analyzing, and interpreting both quantitative and qualitative data, turning them into useful information,
and then acting operationally and strategically. This requires not just data, but knowledge, insight, and a mindset for
intelligent risk taking and innovation.
Information analytics. For operational improvement, analysis of data comparing two important measurement
dimensions (e.g., productivity, profitability, ROI, customer satisfaction characteristics and their relative importance) is
usually sufficient. A third dimension, such as time or segmentation (e.g., by customer segments), might be added. In the
strategic domain, more advanced information analytics can provide a three-dimensional image, with a fourth dimension
of current state and desired or predicted future states of organizational performance, technologies, people, and markets
served. From those data-based, fact-based pictures, organizations need to develop strategy or strategic scenarios.
The case for comparative data. The use of comparative data and information is important to all organizations. The major
premises for their use are the following:
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• Your organization needs to know where it stands relative to competitors and to best practices.
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• Comparative information and information obtained from benchmarking often provide the impetus for
significant (“breakthrough”) improvement or transformational change.
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• Comparing performance information frequently leads to a better understanding of your processes and their
performance.
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Comparative performance projections and competitors’ performance may reveal organizational advantages as
well as challenge areas where innovation is needed.
Comparative information may also support business analysis and decisions relating to core competencies, partnering,
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and outsourcing.
Selecting comparative data. Effective selection of comparative data and information requires you to determine needs and
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priorities and establish criteria for seeking appropriate sources for comparisons—from within and outside your industry
and markets.
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Reviewing performance. The organizational review called for in this item is intended to cover all areas of performance.
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This includes not only current performance but also how you project your future performance. The expectation is that the
review findings will provide a reliable means to guide both improvements and opportunities for innovation that are tied
to your key objectives, core competencies, and measures of success. Review findings may also alert you to the need for
transformational change in your organization’s structure and work systems. Therefore, an important component of your
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organizational review is the translation of the review findings into actions that are deployed throughout your
organization and to appropriate suppliers, partners, collaborators, and key customers. Use of comparative data in
reviews. Effective use of comparative data and information allows you to set stretch goals and to promote major
nonincremental (“breakthrough”) improvements in areas most critical to your competitive strategy.
Analyzing performance. Analyses that you conduct to gain an understanding of performance and needed actions may
vary widely depending on your organization’s type, size, competitive environment, and other factors. Here are some
examples of possible analyses:
• How product improvements or new products correlate with key customer indicators, such as satisfaction,
loyalty, and market share
• Return on investment for intelligent risks that you pursue
• Cost and revenue implications of customer-related problems and effective problem resolution
• Interpretation of market share changes in terms of customer gains and losses and changes in customer
engagement
• Trends in key operational performance indicators, such as productivity, cycle time, defect levels, waste
reduction, carbon footprint, and new product introduction

• Relationships among learning by workforce members, organizational learning, and the value added per
employee
• Financial benefits derived from improvements in workforce capacity, safety, absenteeism, and turnover
• Benefits and costs associated with education and training
• Benefits and costs associated with improved organizational knowledge management and sharing
• The relationship between knowledge management and innovation
• How the ability to identify and meet workforce capability and capacity needs correlates with retention,
motivation, and productivity
• Cost and revenue implications of workforce-related problems and effective problem resolution
• Individual or aggregate measures of productivity and quality relative to competitors’ performance
• Cost trends relative to competitors’ trends
• Relationships among product quality, operational performance indicators, and overall financial performance
trends as reflected in indicators such as operating costs, revenues, asset utilization, and value added per
employee
• Allocation of resources among alternative improvement projects based on cost/benefit implications or
environmental and societal impact
• Net earnings or savings derived from improvements in quality, operational, and workforce performance
• Comparisons among business units showing how quality and operational performance affect financial
performance
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• Contributions of improvement activities to cash flow, working capital use, and shareholder value
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• Impacts of customer loyalty on profit
• Cost and revenue implications of new market entry, including product-line and geographic expansion
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• Market share versus profits
• Trends in economic, market, and stakeholder indicators of value and the impact of these trends on long-term
organizational success
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Aligning analysis, performance review, and planning. Individual facts and data do not usually provide an effective
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basis for setting organizational priorities. This item emphasizes the need for close alignment between your analysis and
your organizational performance review and between your performance review and your organizational planning. This
ensures that analysis and review are relevant to decision making and that decisions are based on relevant data and
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information. In addition, your historical performance, combined with assumptions about future internal and external
changes, allows you to develop performance projections. These projections may serve as a key planning tool.
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Understanding causality. Action depends on understanding causality among processes and between processes and
results. Process actions and their results may have many resource implications. Organizations have a critical need to
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provide an effective analytical basis for decisions because resources for innovation and improvement are limited.
4.2 Information and Knowledge Management

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Purpose
This item asks how you build and manage your organization’s knowledge assets and ensure the quality and availability
of data and information. The aim of this item is to improve organizational efficiency and effectiveness and stimulate
innovation.
Commentary
Information management. Managing information can require a significant commitment of resources as the sources of
data and information grow dramatically. The continued growth of information within organizations’ operations—as part
of organizational knowledge networks; through the web and social media; and in business-to-business, organization-to-
organization, and business-to-consumer communications—challenges organizations’ ability to ensure reliability and
availability in a user-friendly format. The ability to blend and correlate disparate types of data, such as video, text, and
numbers, provides opportunities for a competitive advantage.
Data and information availability. Data and information are especially important in business or organizational
networks, partnerships, and supply networks. You should take into account this use of data and information and
recognize the need for rapid data validation, reliability assurance, and security, given the frequency and magnitude of
electronic data transfer and the challenges of cybersecurity.

Knowledge management. The focus of your knowledge management is on the knowledge that your people need to do
their work; improve processes, products, and services; and innovate to add value for the customer and your organization.
Your organization’s knowledge management system should provide the mechanism for sharing your people’s and your
organization’s knowledge to ensure that high performance is maintained through transitions. You should determine
what knowledge is critical for your operations and then implement systematic processes for sharing this information.
This is particularly important for implicit knowledge (i.e., knowledge personally retained by workforce members)
Organizational learning. One of the many issues facing organizations today is how to manage, use, evaluate, and share
their ever-increasing organizational knowledge. Leading organizations benefit from the knowledge assets of their
workforce, customers, suppliers, collaborators, and partners, who together drive organizational learning and innovation.
Workforce (Category 5)
This category addresses key workforce practices—those directed toward creating and maintaining a high-performance
environment and toward engaging your workforce to enable it and your organization to adapt to change and succeed.
To reinforce the basic alignment of workforce management with overall strategy, the Criteria also cover workforce
planning as part of overall strategic planning in category 2.
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5.1 Workforce Environment
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Purpose
This item asks about your workforce capability and capacity needs, how you meet those needs to accomplish your
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organization’s work, and how you ensure a supportive work climate. The aim is to build an effective environment for
accomplishing your work and supporting your workforce. se
Commentary
Workforce capability and capacity. Many organizations confuse the concepts of capability and capacity by adding more
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people with incorrect skills to compensate for skill shortages or by assuming that fewer highly skilled workers can meet
capacity needs for processes requiring less skill or different skills but more people to accomplish. Having the right
number of workforce contributors with the right skill set is critical to success. Looking ahead to predict those needs for
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the future allows for adequate training, hiring, relocation times, and preparation for work system changes.
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Change management. Change management is a process that involves transformational organizational change controlled
and sustained by leaders. It requires dedication, involvement of employees at all levels, and constant communication.
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Transformational change is strategy-driven and stems from the top of the organization. Its origin may be needs identified
within the organization, and it requires the active engagement of the whole organization.
Workforce support. Most organizations, regardless of size, have many opportunities to support their workforce. Some
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examples of services, facilities, activities, and other opportunities are personal and career counseling; career development
and employability services; recreational or cultural activities; on-site health care and other assistance; formal and
informal recognition; non-work-related education; child and elder care; special leave for family responsibilities and
community service; flexible work hours and benefits packages; outplacement services; and retiree benefits, including
ongoing access to services.
5.2 Workforce Engagement

Purpose
This item asks about your systems for managing workforce performance and developing your workforce members to
enable and encourage all of them to contribute effectively and to the best of their ability. These systems are intended to
foster high performance, to address your core competencies, and to help accomplish your action plans and ensure your
organization’s success now and in the future.
Commentary
High performance. The focus of this item is on a workforce capable of achieving high performance. Understanding the
characteristics of high-performance work environments, in which people do their utmost for their customers’ benefit and
the organization’s success, is key to understanding and building an engaged workforce. High performance is

characterized by flexibility, innovation, empowerment and personal accountability, knowledge and skill sharing, good
communication and information flow, alignment with organizational objectives, customer focus, and rapid response to
changing business needs and marketplace requirements.
Workforce engagement and performance. Many studies have shown that high levels of workforce engagement have a
significant, positive impact on organizational performance. Research has indicated that engagement is characterized by
performing meaningful work; having clear organizational direction and accountability for performance; and having a
safe, trusting, effective, and cooperative work environment. In many organizations, employees and volunteers are drawn
to and derive meaning from their work because it is aligned with their personal values.
Drivers of workforce engagement. Although satisfaction with pay and pay increases are important, these two factors
generally are not sufficient to ensure workforce engagement and high performance. Some examples of other factors to
consider are effective problem and grievance resolution; development and career opportunities; the work environment
and management support; workplace safety and security; the workload; effective communication, cooperation, and
teamwork; the degree of empowerment; job security; appreciation of the differing needs of diverse workforce groups;
and organizational support for serving customers.
Factors inhibiting engagement. It is equally important to understand and address factors inhibiting engagement. You
could develop an understanding of these factors through workforce surveys, focus groups, blogs, or exit interviews with
departing workforce members.
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Compensation and recognition. Compensation and recognition systems should be matched to your work systems.
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Recognition can include monetary and nonmonetary, formal and informal, and individual and group mechanisms. To be
effective, compensation and recognition might include promotions and bonuses tied to performance, demonstrated skills,
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skills acquired, adaptation to new work systems and culture, and other factors. Approaches might also include profit
sharing; mechanisms for expressing simple “thank yous”; rewards for exemplary team or unit performance; and linkage
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to customer engagement measures, achievement of organizational strategic objectives, or other key organizational
objectives.
Other indicators of workforce engagement. In addition to direct measures of workforce engagement through formal or
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informal surveys, other indicators include absenteeism, turnover, grievances, and strikes.
Performance development. Organizations today need employees who are versatile and who can continually upgrade
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their work skills. High-performing organizations address this need by meeting employees’ rising expectations for career-
relevant learning and development. In performance development, employees pursue personal growth and growth in the
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organization through both internal and external learning. This learning involves engaging work assignments,
opportunities, and personal learning to reach the next level of organizational and personal performance.
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Performance development needs. Depending on the nature of your organization’s work, workforce responsibilities, and
stage of organizational and personal development, performance development needs might vary greatly. These needs
might include gaining skills for knowledge sharing, communication, teamwork, and problem solving; interpreting and
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using data; exceeding customer requirements; analyzing and simplifying processes; reducing waste and cycle time;
working with and motivating volunteers; and setting priorities based on strategic alignment or cost-benefit analysis.
Education needs might also include advanced skills in new technologies or basic skills, such as reading, writing,
language, arithmetic, and computer skills.
Learning and development locations and formats. Learning and development opportunities might occur inside or
outside your organization and could involve on-the-job, classroom, e-learning, or distance learning, as well as
developmental assignments, coaching, or mentoring.
Individual learning and development needs. To help people realize their full potential, many organizations prepare an
individual development plan with each person that addresses his or her career and learning objectives and desires.
Customer contact training. Although this item does not specifically ask you about training for customer contact
employees, such training is important and common. It frequently includes gaining critical skills and knowledge about
your products and customers, how to listen to customers, how to recover from problems or failures, and how to
effectively manage and exceed customer expectations.

Learning and development effectiveness. Measures to evaluate the effectiveness and efficiency of your workforce and
leader development and learning systems might address the impact on individual, unit, and organizational performance;
the impact on customer-related performance; and costs versus benefits.
Operations (Category 6)
This category asks how you focus on your organization’s work, product design and delivery, innovation, and operational
effectiveness to achieve organizational success now and in the future.
6.1 Work Processes

Purpose
This item asks about the management of your key products, your key work processes, and innovation, with the aim of
creating value for your customers and achieving current and future organizational success.
Commentary
Work process requirements. Your design approaches could differ appreciably depending on the nature of your product
or service offerings—whether the products and services are entirely new, are variants, are customized, or involve major
or minor work process changes. Your design approaches should consider the key requirements for your products and
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services. Factors that you might need to consider in work process design include safety, long-term performance,
environmental impact, your carbon footprint and “green” manufacturing, measurement capability, process capability,
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manufacturability, maintainability, variability in customer expectations requiring product or support options, supplier
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capability, and documentation.
Effective design must also consider the cycle time and productivity of production and delivery processes. This might
involve detailed mapping of manufacturing or service processes and the redesign (“reengineering”) of those processes to
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achieve efficiency, as well as to meet changing customer requirements.
Key product-related and business processes. Your key work processes include your product- and service-related
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processes and those nonproduct business processes that your senior leaders consider important to organizational success
and growth. These processes frequently relate to your organization’s core competencies, strategic objectives, and critical
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success factors. Key business processes might include technology acquisition, information and knowledge management,
mergers and acquisitions, global expansion, project management, and sales and marketing. For some nonprofit
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organizations, key business processes might include fundraising, media relations, and public policy advocacy. Given the
diverse nature of these processes, the requirements and performance characteristics might vary significantly for different
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processes.
Work process design. Many organizations need to consider requirements for suppliers, partners, and collaborators at the
work process design stage. Overall, effective design must take into account all stakeholders in the value chain. If many
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design projects are carried out in parallel or if your products utilize parts or supplies, equipment, personnel, and facilities
that are used for other products or processes, coordination of resources might be a major concern, but it might also offer a
means to significantly reduce unit costs and time to market.
In-process measures. This item refers specifically to in-process measurements. These measurements require you to
identify critical points in processes for measurement and observation. These points should occur as early as possible in
processes to minimize problems and costs that may result from deviations from expected performance.
Process performance. Achieving expected process performance frequently requires setting in-process performance levels
or standards to guide decision making. When deviations occur, corrective action is required to restore the performance of
the process to its design specifications. Depending on the nature of the process, the corrective action could involve
technology, people, or both. Proper corrective action involves changes at the source (root cause) of the deviation and
should minimize the likelihood of this type of variation occurring again or elsewhere in your organization.
When customer interactions are involved, evaluation of how well the process is performing must consider differences
among customers. This is especially true of professional and personal services. In some organizations, cycle times for key
processes may be a year or longer, which may create special challenges in measuring day-to-day progress and identifying
opportunities for reducing cycle times, when appropriate.

Key support processes. Your key work processes include those processes that support your daily operations and your
product and service delivery but are not usually designed in detail with the products. Support process requirements do
not usually depend significantly on product characteristics. Such requirements usually depend significantly on internal
requirements, and they must be coordinated and integrated to ensure efficient and effective linkage and performance.
Support processes might include processes for finance and accounting, facilities management, legal services, human
resource services, public relations, and other administrative services.
Process improvement. This item calls for information on how you improve processes to achieve better performance.
Better performance means not only better quality from your customers’ perspectives, but also better financial and
operational performance—such as productivity—from your other stakeholders’ perspectives. A variety of process
improvement approaches are commonly used. Examples include
• using the results of organizational performance reviews;
• sharing successful strategies across your organization to drive learning and innovation;
• performing process analysis and research (e.g., process mapping, optimization experiments, error proofing);
• conducting technical and business research and development;
• using quality improvement tools like Lean, Six Sigma, and Plan-Do-Check-Act (PDCA);
• benchmarking;
• using alternative technology; and
• using information from customers of the processes—within and outside your organization.
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Process improvement approaches might use financial data to evaluate alternatives and set priorities. Together, these
approaches offer a wide range of possibilities, including a complete redesign (“reengineering”) of processes.
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Supply networks. Rather than a one-to-one-to-one supply chain, organizations must increasingly rely on a supply
network to manage assets outside traditional organizational boundaries. Suppliers, partners, and collaborators are
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receiving increasing strategic attention as organizations reevaluate their core competencies and their place within their
business ecosystem. To optimize the value of its supply network, organizations need to position themselves to take
advantage of an agile, interdependent network of suppliers.
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Supply-network management. For many organizations, supply-network management has become a key factor in
achieving productivity and profitability goals and overall organizational success. Supplier processes should fulfill two
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purposes: to help improve the performance of suppliers and partners and to help them contribute to improving your
overall operations. Supply-network management might include processes for selecting suppliers, with the aim of
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reducing the total number of suppliers and increasing preferred supplier and partner agreements.
Supply-network communication. Mechanisms for communicating with suppliers should use understandable language.
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They might involve in-person contact; email, social media, or other electronic means; or the telephone. For many
organizations, these mechanisms may change as marketplace, customer, or stakeholder requirements change.
Innovation management. In an organization that has a supportive environment for innovation, there are likely to be
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many more ideas than the organization has resources to pursue. This leads to two critical decision points in the
innovation cycle: (1) commensurate with resources, prioritizing opportunities to pursue those opportunities with the
highest likelihood of a return on investment (intelligent risks) and (2) knowing when to discontinue projects and
reallocate the resources either to further development of successful projects or to new projects.
6.2 Operational Effectiveness

Purpose
This item asks how you ensure effective operations in order to have a safe workplace environment and deliver customer
value. Effective operations frequently depend on controlling the overall costs of your operations and maintaining the
reliability, security, and cybersecurity of your information systems.
Commentary
Cost control. Cost and cycle-time reduction may be achieved through Lean process management strategies. Defect
reduction and improved product yield may involve Six Sigma projects. It is crucial to utilize key measures for tracking all
aspects of your operations management.

Security and cybersecurity. Given the frequency and magnitude of electronic data transfer and storage, the prevalence of
cybersecurity attacks, and customer and business requirements around securing assets and information, managing
cybersecurity is an essential component of operational effectiveness. Proper management of cybersecurity requires a
systems approach that focuses on using key business factors to guide cybersecurity activities and integrating
cybersecurity with your overall leadership and management approaches. In a dynamic and challenging environment of
new threats, risks, and solutions, managing cybersecurity means taking into account your organization’s unique threats,
vulnerabilities, and risk tolerances. It means determining activities that are important to critical service delivery and to
your customers, and prioritizing investments to protect them. Cybersecurity may involve training workforce members
not directly involved in information technology matters and educating customers, suppliers, and partners. It may also
involve communicating with these stakeholders to inform them of potential cyber threats, inform them of breaches, and
report recovery efforts in order to maintain their confidence in your organization.
Workplace safety. All organizations, regardless of size, are required to meet minimum regulatory standards for
workplace and workforce safety; however, high-performing organizations have processes in place to ensure that they not
only meet these minimum standards but also go beyond a compliance orientation to a safety-first commitment. This
includes designing proactive processes, with input from people directly involved in the work, to ensure a safe working
environment.
Business continuity. Efforts to ensure the continuity of operations in an emergency should consider all facets of your
operations that are needed to provide your products and services to customers, including supply-network availability.
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The specific level of operations that you will need to provide will be guided by your mission and your customers’ needs
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and requirements. For example, a public utility is likely to have a higher need for services than organizations that do not
provide an essential function. Nonprofit (including government) organizations whose mission is to respond to
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emergencies will have a high need for service readiness. You should also coordinate your continuity-of-operations efforts
with your efforts to ensure the availability of data and information (item 4.2).
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You should carefully plan how you will continue to provide an information technology infrastructure, data, and
information in the event of either a natural or human-caused disaster. These plans should consider the needs of all your
stakeholders, including the workforce, customers, suppliers, partners, and collaborators. The plans should be coordinated
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with your overall plan for business continuity and cybersecurity.
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Results (Category 7)
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This category provides a systems focus that encompasses all results necessary to sustaining an enterprise: your key
process and product results, your customer-focused results, your workforce results, your leadership and governance
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system results, and your overall financial and market performance.

This systems focus maintains the purposes of the Baldrige Excellence Framework—superior value of offerings as viewed
by your customers and the marketplace, superior organizational performance as reflected in your operational indicators,
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organizational learning, and learning by workforce members. Category 7 thus provides “real-time” information
(measures of progress) for evaluating, improving, and innovating processes and products, in alignment with your overall
organizational strategy. While category 7 asks about results broadly, you should place a premium on monitoring
outcomes that are the consequence of your operational performance and serve as predictors of future performance.
7.1 Product and Process Results

Purpose
This item asks about your key product and operational performance results, which demonstrate product and service
quality and value that lead to customer satisfaction and engagement.
Commentary
Measures of product performance. This item emphasizes measures of product performance that serve as indicators of
customers’ views and decisions relative to future purchases, interactions and relationships. These measures of product
performance are derived from customer-related information gathered in category 3.
Examples of product measures. Product and service measures appropriate for inclusion might be based on the following:
internal quality measurements, field performance of products, defect levels, service errors, response times, and data

collected from your customers by other organizations on ease of use or other attributes, as well as customer surveys on
product and service performance.
Product performance and customer indicators. The correlation between product and service performance and customer
indicators is a critical management tool with multiple uses: (1) defining and focusing on key quality and customer
requirements, (2) identifying product and service differentiators in the marketplace, and (3) determining cause-effect
relationships between your product or service attributes and evidence of customer satisfaction and engagement. The
correlation might reveal emerging or changing market segments, the changing importance of requirements, or even the
potential obsolescence of offerings.
Process effectiveness and efficiency measures. Measures and indicators of process effectiveness and efficiency might
include the following:
• Work system performance that demonstrates improved cost savings or higher productivity by using internal
and/or external resources
• Reduced emission levels, carbon footprint, or energy consumption
• Waste-stream reductions, by-product use, and recycling
• Internal responsiveness indicators, such as cycle times, production flexibility, lead times, setup times, and time to
market
• Improved performance of administrative and other support functions
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• Indicators of the effectiveness of security and cybersecurity approaches
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Business-specific indicators, such as innovation rates and increased product and process yields, Six Sigma
initiative results, and acceptable product performance at the time of delivery
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Supply-network indicators, such as reductions in inventory and incoming inspections, increases in quality and
productivity, improvements in electronic data exchange, and reductions in supply-network management costs
• Third-party assessment results, such as ISO 9001 audits
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Measures of organizational and operational performance. This item encourages you to develop and include unique and
innovative measures to track key processes and operational improvement. Unique measures should consider cause-effect
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relationships between operational performance and product quality or performance. All key areas of organizational and
operational performance, including your organization’s readiness for emergencies, should be evaluated by measures that
are relevant and important to your organization.
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7.2 Customer-Focused Results

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Purpose
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This item asks about your customer-focused performance results, which demonstrate how well you have been satisfying
your customers and engaging them in loyalty-building relationships.
Commentary
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Your performance as viewed by your customers. This item focuses on all relevant data to determine and help predict
your performance as viewed by your customers. Relevant data and information include the following:
• Customer satisfaction and dissatisfaction
• Retention, gains, and losses of customers and customer accounts
• Customer complaints, complaint management, effective complaint resolution, and warranty claims
• Customer-perceived value based on quality and price
• Customer assessment of access and ease of use (including courtesy in service interactions)
• Customer advocacy for your brand and product offerings
• Awards, ratings, and recognition from customers and independent rating organizations
Relative satisfaction. For customers’ satisfaction with your products relative to satisfaction with those of competitors and
comparable organizations, measures and indicators might include information and data from your customers, from
competitors’ customers, and from independent organizations.
Results that go beyond satisfaction. This item places an emphasis on customer-focused results that go beyond
satisfaction measurements, because customer engagement and relationships are better indicators and measures of future
success in the marketplace and of organizational sustainability.

7.3 Workforce-Focused Results
Purpose
This item asks about your workforce-focused performance results, which demonstrate how well you have been creating
and maintaining a productive, caring, engaging, and learning environment for all members of your workforce.
Commentary
Workforce results factors. Results reported might include generic or organization-specific factors. Generic factors might
include safety, absenteeism, turnover, satisfaction, and complaints (grievances). For some measures, such as absenteeism
and turnover, local or regional comparisons might be appropriate. Organization-specific factors are those you assess to
determine workforce climate and engagement. These factors might include the extent of training, retraining, or cross-
training to meet capability and capacity needs; the extent and success of workforce empowerment; the extent of union-
management partnering; or the extent of volunteer involvement in process and program activities.
Workforce capacity and capability. Results reported for indicators of workforce capacity and capability might include
staffing levels across organizational units and certifications to meet skill needs. Additional factors may include
organizational restructuring, as well as job rotations designed to meet strategic directions or customer requirements.
Backlogs or reductions in backlogs could be indicators of capacity or capability challenges or improvements, respectively.
Workforce engagement. Results measures reported for indicators of workforce engagement and satisfaction might
include improvement in local decision making, organizational culture, and workforce knowledge sharing. Input data,
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such as the number of cash awards, might be included, but the main emphasis should be on data that show effectiveness
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or outcomes. For example, an outcome measure might be increased workforce retention resulting from establishing a
peer recognition program or the number of promotions into leadership positions that have resulted from the
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organization’s leadership development program.
7.4 Leadership and Governance Results

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Purpose
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This item asks about your key results in the areas of senior leadership and governance, which demonstrate the extent to
which your organization is fiscally sound, ethical, and socially responsible.
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Commentary
Importance of high ethical standards. Independent of an increased national focus on issues of governance and fiscal
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accountability, ethics, and leadership accountability, it is important for organizations to practice and demonstrate high
standards of overall conduct. Governance bodies and senior leaders should track relevant performance measures
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regularly and emphasize this performance in stakeholder communications.

Results to report. Your results should include environmental, legal, and regulatory compliance; results of oversight
audits by government or funding agencies; noteworthy achievements in these areas, as appropriate; and organizational
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contributions to societal well-being and support for key communities.

Sanctions or adverse actions. If your organization has received sanctions or adverse actions under law, regulation, or
contract during the past five years, you should summarize the incidents, their current status, and actions to prevent
reoccurrence.
7.5 Financial, Market, and Strategy Results

Purpose
This item asks about your key financial and market results, which demonstrate your financial sustainability and your
marketplace achievements. It also asks about the achievement of your strategy.
Commentary
Senior leaders’ role. Measures to report in this item are those that senior leaders track on an ongoing basis to assess your
organization’s financial performance and viability.
Appropriate measures. In addition to the measures included in the note to 7.5a(1), appropriate financial measures and
indicators might include revenues, budgets, profits or losses, cash position, net assets, debt leverage, cash-to-cash cycle
time, earnings per share, financial operations efficiency (collections, billing, receivables), and financial returns.

Marketplace performance measures might include measures of business growth, new products and markets entered, or
the percentage of revenues derived from new products.
Measures of strategy implementation. Because many organizations have difficulty determining appropriate measures,
measuring progress in accomplishing their strategy is a key challenge. Frequently, organizations can discern these
progress measures by first defining the results that would indicate end-goal success in achieving a strategic objective and
then using that end-goal to define intermediate measures.
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Baldrige Performance Excellence Program
The Malcolm Baldrige
Created by Congress in 1987, the Baldrige Program is National Quality Award
Baldrige Performance Excellence Program managed by the National Institute of Standards and
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American Society for Quality Plan to attend and learn about the recipients’ best
The American Society for Quality (ASQ; https://asq.org) management practices, participate in educational
assists in administering the award program under contract presentations on the Baldrige Excellence Framework,
to NIST. ASQ’s vision is to make quality a global priority, an and network with Baldrige Award recipients and
organizational imperative, and a personal ethic and, in the other attendees.
process, to become the community for all who seek quality
concepts, technology, or tools to improve themselves and
their world.
For more information:

www.nist.gov/baldrige | 301.975.2036 | [email protected]
What People Are Saying
I have always envisioned

Stellar to be a company that
is built to last. . . . And if you ask
The ratio of the Baldrige Program’s benefits
how we can ensure that we are
for the U.S. economy to its costs is estimated
built to last, I would say the
820 to 1.
2019–2020 Baldrige Excellence Framework

at answer is Baldrige.
Baldrige Award
110
winners serve as national
Celeste Ford
CEO and Founder
Stellar Solutions
BALDRIGE
Palo Alto, CA
EXCELLENCE
y
role models. Baldrige Award recipient
nl
FRAMEWORK
O
2010–2018 award applicants represent
We believe that government
641,693 jobs
se
can be great. We believe that Proven leadership and management
,
practices for high performance
local government can be great.
U
3,072 work sites, over $166 billion in
revenue/budgets, and about 451 million And we believe that the
er
customers served. Baldrige framework is ideally

business
in
suited to help local government

nonprofit
go from here to here
am
352 Baldrige examiners volunteered government
roughly $7.9 million in

[low to high].
Ex
Darin Atteberry
services in 2018.
City Manager LEADERSHIP
City of Fort Collins
Fort Collins, CO STRATEGY
State Baldrige-based examiners Baldrige Award recipient
volunteered around $29 million in CUSTOMERS
services in 2017.
MEASUREMENT, ANALYSIS, AND
CONNECT WITH BALDRIGE KNOWLEDGE MANAGEMENT
@BaldrigeProgram #Baldrige
WORKFORCE
2019 OPERATIONS
RESULTS
T1550
2020 www.nist.gov/baldrige

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What People Are Saying

I have always envisioned

2019–2020 Baldrige Excellence Framework

roughly $7.9 million in

knockout for glue .4375 for .1875 spine

network of Baldrige-based organizations and supporting

For more information:

v How to Use the Baldrige Excellence Framework

1 Criteria for Performance Excellence Overview and Structure

3 Criteria for Performance Excellence Items and Point Values

33 Results Scoring Guidelines

35 How to Respond to the Criteria

38 Core Values and Concepts

44 Changes from the 2017–2018 Baldrige Excellence Framework

54 Index of Key Terms

What can Baldrige do for my organization?

How do I know if Baldrige is right for my organization?

How does Baldrige work?

ii 2019–2020 Baldrige Excellence Framework

7. Results: How well are you doing?

category (see the scoring guidelines on pages 32–33).

About the Baldrige Excellence Framework iii

What is the impact of Baldrige nationally and globally?

How do I get started?

iv 2019–2020 Baldrige Excellence Framework

If you are just learning about the Baldrige framework . . .

If you are ready to assess your organization using Baldrige . . .

How to Use the Baldrige Excellence Framework v

If you are ready for external feedback . . .

identify your organization’s strengths and its opportunities to improve.

vi 2019–2020 Baldrige Excellence Framework

Criteria for Performance Excellence Overview: A Systems Perspective

Leadership Integration RESULTS

Measurement, Analysis, and Knowledge Management

The system All actions

Criteria for Performance Excellence Overview and Structure 1

Items Areas to Address

Item title and Key term in Type of information

response to this item

2 2019–2020 Baldrige Excellence Framework

Categories and Items Point Values

4 Measurement, Analysis, and Knowledge Management 90

5.2 Workforce Engagement 45

TOTAL POINTS 1,000

Criteria for Performance Excellence Items and Point Values 3

• your WORKFORCE or employee groups and SEGMENTS;

• the KEY drivers that engage them;

(Continued on the next page)

4 2019–2020 Criteria for Performance Excellence

ments and expectations will drive your organization’s

For additional guidance on this item, see the Criteria

6 2019–2020 Criteria for Performance Excellence

• participate in succession planning and the development of future organizational leaders?

• create a focus on action that will improve the organization’s PERFORMANCE;

• Accountability for SENIOR LEADERS’ actions

• Protection of STAKEHOLDER and stockholder interests, as appropriate

b. Legal and ETHICAL BEHAVIOR

(Continued on the next page)

8 2019–2020 Criteria for Performance Excellence