This document provides an overview of the Malcolm Baldrige National Quality Award. It discusses that the award was established in 1988 and is given annually by the US government to organizations that achieve exceptional performance. It is named after former Secretary of Commerce Malcolm Baldrige, who initiated quality management efforts. The document outlines the seven criteria used to evaluate organizations: leadership, strategic planning, customer focus, measurement, human resources, process management, and business results. Winning organizations, like Baptist Hospital, demonstrate high satisfaction scores, improved clinical outcomes, strong processes, and employee engagement.

1. Malcolm Baldrige
MALCOLM BALDRIGE NATIONAL QUALITY AWARD
AATMIKI SINGH - PB1201
SUBARNO PAUL – PB1231
RAVI KUMAR RAHUL - PB1222

2. AGENDA
 What is Malcolm Baldrige National Quality Award?
 Malcolm Baldrige, the man
 Reasons for establishment of the award
 How award helps an organization
 How organization is chosen
 7 pillars of Malcolm Baldrige
 Real Example : Dr. B.V. Krishnamurthy
 Quick exercise

3. What is Malcolm Baldrige National
Quality Award?
 Malcolm Baldrige National Quality Award is a kind of annual award given
by the government of the United States to every organization in the United
States (both profit and non profit), which is considered to achieve
exceptional performance or excellent.
 This annual award was introduced in 1988 and has provided significant
contribution for quality improvement and business performance.
 Malcolm Baldrige itself is taken from the name of former U.S. Secretary of
Commerce who initiated the activities of this award.
 At present, USA govt. has stopped funding Malcolm Baldrige.

4. Malcolm Baldrige
 Secretary of Commerce from 1981 to 1987
 He was a very big proponent of quality management at a
time when quality was not a large issue.
 He helped draft one of the early versions of the Quality
Improvement Act.
 In the recognition of his contributions in showing the
importance of quality, the award was named after him.

5. Reasons for establishment of the
award
 Government officials saw that quality improvement was no longer
an option for American Business, but a necessity.
 Many businesses did not think quality was an important issue.
 Others knew that it was important, but did not know where to
begin the improvement process.

6. How award helps an organization
 The criteria for winning the award are very demanding and
simply trying to align a company to them is highly beneficial.
 It can be used as a motivational toll for workers to rally behind a
common goal.
 Simply by competing for the award an organization sees the
importance of quality in their business.
 The criteria they use is also known as 7 Pillars of Malcolm
Baldrige. Where the 7 criteria is indeed a very important role in
determining the success of an organization

7. How organization is chosen
 55% of evaluation is based on how the organization is run, 45%
on the basis of performance.
 Every major part of the organization is accessed.
 Continuous improvement and revaluation is very important.

8. 7 pillars of Malcolm Baldrige
Leadership
Strategic Planning
Customer and Market Focus
Performance Measurement
Human Resource Development & Management
Process Management
Business Result

10. Point Values for 7 pillars of
Evaluation
 110 points – Leadership
 80 points – Strategic Planning
 80 points - Customer and Market Focus
 80 points - Performance Management
 100 points – Human Resource Development and Management
 100 points – Process Management
 450 points – Business Result

11. The Board of Examiners
 Independent board research each competing
organization, and follows the specific criteria previously
mentioned.
 Site visits consist of 4-6 examiners.
 Examiners are all volunteers.
 Appointment to the Board of Examiners is a very prestigious
honour.

12. Real Example:
1. Dr. B.V. KrishnaMurthy
 Winner of Creative Solution Award, MB based criteria, World Conference
on Quality & Improvement - Anaheim, CA, USA 2012
 Winner of Star Award for Quality Implementation, ASQ – Louis
Elle, KY, USA Nov. 2012
 1st Recipient of Teaching Excellence Award for Asia, MB excellence
based criteria – ACBSP, USA June 2012
 Recipient of Education Leader of Year 2012, based on contribution to
the institution building, strategic planning, stakeholder
satisfaction, teaching effectiveness, scholarly publications and service
orientation by International Assembly for Collegiate Business Education (
IACBE ), USA April 2012
 More focused for education not any other service or sector.

13. 2. Baptist Hospital, Inc. (BHI)
Winner of MBNQA 2003
 Baptist Hospital, a 492-bed tertiary care and referral hospital, and
Gulf Breeze Hospital, a 60-bed medical and surgical hospital — and
an ambulatory care complex, Baptist Medical Park. The organization
employs 2,252 people.
 The organization shows extremely high overall patient satisfaction
marks, as measured in Press Ganey Associates surveys.
 Clinical Accountability Report of Excellence tool, which uses an index
scoring method to capture more than 50 results.
 One CARE indicator is the hospital-wide medication event rate: only
1.5 events occurred per 10,000 doses in fiscal year 2000 (compared
to the Voluntary Hospitals of America benchmark of 18).

14.  Another CARE indicator measures the rate at which patients develop
pressure ulcers, which dropped to 3.5 percent in fiscal year 2002
(compared to the VHA benchmark of 7 percent).
 The overall CARE score is above the 80 percent minimum identified as
a goal by BHI senior leaders.
 The organization employs several listening and learning approaches
to determine customer needs, including surveys and customer value
analysis to examine patient loyalty.
 Information is analysed in a customer relationship management
database to identify key requirements for each customer group and
as input for strategic planning, service design, and performance
improvement.

15.  BHI’s Hospital Information System gathers, connects, integrates, and
distributes data from clinical systems, employees, patients, financial
systems, decision support systems, and physicians. The system is
accessed via mobile terminals, a data access system for physicians,
and kiosks throughout the organization.
 Employee turnover at Baptist Hospital has dropped from 27 percent
in 1997 to 13.9 percent in 2003, and at Gulf Breeze Hospital the
turnover rate has dropped from 31 percent to 14 percent during the
same period. Positive morale rose from 47 percent in 1996 to 84
percent in 2001.

16.  All employees must receive 60 hours of learning per year. All leaders
and employees get together in a ―daily line-up‖ to communicate
important operational information and reinforce values.
 A Bright Ideas program solicits suggestions for improvement; the
number of ideas implemented has soared from 370 in 1998 to 5,000 in
2003.

17. Exercise
 How many companies are given MBNQA each year?
More than 6 companies are given MBNQA each year.
 How much Board of examiners paid for their position?
Nothing, the board is a group of volunteers of experts from
industry, education, government and non-profit
organizations.

18. THANK YOU