...Applying the Balanced Scorecard to Education DEMETRIUS KARATHANOS PATRICIA KARATHANOS Southeast Missouri State University Cape Girardeau, Missouri T he concept of the balanced scorecard (BSC) was first introduced by Robert S. Kaplan and David P. Norton (1992) in their now widely cited Harvard Business Review article, “The Balanced Scorecard—Measures that Drive Performance.” The widespread adoption and use of the BSC is well documented. For example, Kaplan and Norton (2001) reported that by 2001 about 50% of the Fortune 1000 companies in North America and 40% to 45% of companies in Europe were using the BSC. The basic premise of the BSC is that financial results alone cannot capture value-creating activities (Kaplan & Norton, 2001). In other words, financial measures are lagging indicators and, as such, are not effective in identifying the drivers or activities that affect financial results. Kaplan and Norton (1992) suggested that organizations, while using financial measures, should develop a comprehensive set of additional measures to use as leading indicators, or predictors, of financial performance. They suggested that measures should be developed that address four perspectives: 1. The financial perspective. Measures in this perspective should answer the question, “How should we appear to our shareholders?” 2. The customer perspective. These measures should answer the question, ABSTRACT. Although the application of the balanced scorecard (BSC) in the business sector...
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...The Deming Approach W. Edward Deming's philosophy is one that focuses on continuous improvement at all levels of an organization for all products and services. The philosophy is articulated in Deming's 14 Points and Seven Deadly Diseases. Deming's philosophy and TQM go hand in hand. You would be hard-pressed to find a TQM implementation that did not have Deming's philosophy as part of its foundation. Deming noted the villain was variation, and variation exists in everything. Our challenge is to identify and reduce variation in order to improve the quality of the items produced or services provided. For years, many struggled with Deming's points. Some complained that many of the points were not realistic, asking, for example, how can you run a business without using numbers? Doing so was just not possible, they said. In his 1993 book, The New Economics for Industry, Government & Education, Deming provided insight into his thinking. In the text is a chapter titled Theory of Profound Knowledge. Here, Deming outlined the basic thinking for creating change. There were some who intuitively understood his theory years before it was published. Those were the people and groups that had been successful in implementing TQM. The changes required to implement Deming's philosophy are not easy and will take time, but the rewards are worth the changes. We only need to look a Toyota to see just what can be accomplished! For many, if not most, U.S. businesses, Deming's ideas are revolutionary...
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...The Malcolm Baldrige National Quality Award (herein referred to as Baldrige) was enacted into law in 1987 in order to encourage U. S. industry to pursue competitive improvements. The major thrust being the improvement of quality of product and services. The award was named after a former Secretary of Commerce who was killed in a rodeo accident. It is administered by the National Institute of Standards and Technology (NIST) that in the Commerce Department. The award winners are required to share (non-proprietary) information on successful performance strategies and actions, and benefits derived. Eligibility allows for two awards in each of three categories: • Manufacturing companies • Service companies • Small businesses • Education • Health Care (Education and Health Care were added in 1999) The following is an outline of the formal Baldrige process: 1. Applicants prepare an application, i.e. a description, of their quality/management system following the Baldrige guidelines. 2. For Phase I, five to seven examiners evaluate the application and address each category/item of the criteria. The strengths and areas needing improvement are noted for each item and the point score allocated. All seven guideline categories allow for 1000 point possibility. 3. The best applications based on the examiners' comments and scores are submitted to the Baldrige judges. The judges screen the examiner’s reports and select the best applications for a Phase II (consensus) review. ...
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...of a Quality Management System Organizational Structure Responsibilities Methods Data Management Processes Resources Customer Satisfaction Continuous Improvement Product Quality [edit] Concept of quality - historical background The concept of quality as we think of it now first emerged out of the Industrial Revolution. Previously goods had been made from start to finish by the same person or team of people, with handcrafting and tweaking the product to meet 'quality criteria'. Mass production brought huge teams of people together to work on specific stages of production where one person would not necessarily complete a product from start to finish. In the late 19th century pioneers such as Frederick Winslow Taylor and Henry Ford recognized the limitations of the methods being used in mass production at the time and the subsequent varying quality of output. Birland established Quality Departments to oversee the quality of production and rectifying of errors, and Ford emphasized standardization of design and component standards to ensure a standard product was produced. Management of quality was the responsibility of the Quality department and was implemented by Inspection of product output to 'catch' defects. Application of statistical control came later as a result of World War production methods. Quality management systems are the outgrowth of work done by W. Edwards Deming, a statistician, after whom the Deming Prize for quality is named. Quality, as...
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...• DM -conscious process of making choices among >1 alternatives - achieve some desired outcomes.(M-O-T) • When no of options increases & *information X all quantified, OL must rely on intuition /gut feeling to MD. • leaders most likely to make right decision using feeling are 1 with S-A. able to discriminate {}irrelevant, misleading / correct feelings. • means EI enables leader to tune into gut feelings r most accurate &helpful in making difficult decisions (C & G) • Sometimes emotions form preferences before we consciously evaluate choices, leading to potentially inaccurate or more risky decisions. depending on moods & emotions of leaders, decisions fluctuate & is refore inconsistent. In such situations, decision made by leaders could become ineffective. essay, a comparative study made to assess how EI can eir -> more effective DM/ some circumstances lead to ineffective decision. Supporting case studies drawn to assist evaluation of both sides comparison. • • EI is a person’s basic underlying capability to recognise & use emotion. (Gowing), combination of competencies x5. (Goleman) • Gardner,ability to recognise own emotions & to express those feelings to ors is *for leaders to take advantage & use ir positive emotions to facilitate organisational performance. extent to which leaders use emotions -> direct cognition is *in workplace, with leaders MD based on emotional information can make more effective & efficient...
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...Quality Management Organizations MGT/420 October 1, 2012 Albert La Pierre Quality Management Organizations Schneck Memorial Hospital and MEDRAD are two quality management organizations who have won the Malcolm Baldridge National Quality award. The award raises awareness on quality management issues and recognizes companies that successfully implement quality management systems. Schneck is an organization that exists at the local level in Indiana and MEDRAD is an organization that exists at the national level with global headquarters. Jackson County Schneck Memorial Hospital is a not-for profit county hospital located in Seymour, Indiana. Schneck Medical Center (SMC) sustains a legacy of providing excellent healthcare by leveraging their culture and making infrastructural investments. SMC differentiates its healthcare services from other providers by leveraging their core competency of putting patient first in every decision that is made. The principal factors that determine SMC’s success relative to their competitors are the patient first culture, strong financial foundation, technology integration, quality and stability of the workforce, and focus on excellence. Each of these key factors link directly to their four pillars of excellence: quality of care, customer service, human resources, and fiscal and operations. (NIST, 2012) MEDRAD is a worldwide market-leading manufacturer and distributor of high tech medical devices. Products include fluid injection systems...
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...luxury lifestyle experience. Ritz-Carlton is the leading brand of luxury hotels and resorts with 84 properties located in major cities and resorts in 26 countries worldwide. Making it to the top and the only service company in America that has won Malcolm Baldrige National Quality Award not only once but twice. Its legacy continues and in 1997, Marriott International purchased The Ritz-Carlton which operated as a wholly owned subsidiary. When it comes to style, quality and unsurpassed service, the Ritz-Carlton Hotel Company has set the Gold Standards in giving their highest level customers satisfaction. It is compromised by five elements: “The Credo,” “The Motto,” “Three Steps of Service,” “The 6th Diamond,” and “Employee Promise.” Their reputation for going above and beyond their customers’ expectations and cultivation brand loyalty has made devotees of their service model in the hospitality industry and beyond. It’s simply their motto “We are Ladies and Gentlemen serving Ladies and Gentlemen,” suits their legendary customer service. Discussion Questions: 1. In what ways could the Ritz-Carlton monitor its success in achieving quality? Ritz-Carlton is process-oriented company, to achieve its quality, Ritz-Carlton created its targeted selection process to ensure a successful match of potential employees to employment. When it comes to their employees, “They select, don’t hire.” The applicants undergo in comprehensive process that...
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...Chapter 3: Philosophies and Framework * Deming Chain Reaction – focuses on continual improvements in product and service quality by reducing uncertainty and variability in design, manufacturing, and service process. * Deming’s System of Profound Knowledge 1. Appreciation for a system 2. Understanding variation 3. Theory of Knowledge 4. Psychology * Systems * most are cross-functional * work together * have a purpose * aim is for everyone to benefit over the long term * Variation * excessive variation = product failures, unhappy customers, unnecessary costs * statistical methods can be used to identify and quantify variation * Theory of Knowledge * experience only describes theory not establishes * theory shows cause and effect relationships that can be used for prediction * Psychology * people are motivated intrinsically (most powerful) and extrinsically * fear is demotivating * Deming’s 14 Points 1. Create and publish a company mission statement and commit to it. 2. Learn the new philosophy. 3. Understand the purpose of inspection. 4. End business practices driven by price alone. 5. Constantly improve system of production and service. 6. Institute training. 7. Teach and institute leadership. 8. Drive out fear and create trust. 9. Optimize team and individual efforts. 10. Eliminate exhortations for work force. 11. Eliminate numerical quotas...
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...healthcare industry is characterized by constant changes and dynamism with the aim of providing quality care that is affordable. “Motivation is a state of feeling or thinking in which one is energized or aroused to perform a task or engage in a particular behavior”(Steers and Porter,1987 as cited by Burns et al 2011). Sharp healthcare’s major objective is to increase the satisfaction of its employees, physicians and patients. To achieve this, the organization adopts techniques such as open communication among workers, re-recruitment of current employees and the development of the workforce. Although these techniques may successfully motivate some workers it may not be as successful in motivating other workers because they are intrinsic factors which do not necessarily motivate everyone. In November 2007, Sharp HealthCare received the Malcolm Baldrige National Quality Award, the nation's highest presidential honor for quality and organizational performance excellence. (Sharp Healthcare, 2015) Due to its success a number of organizations have adopted the sharp’s approach to staff motivation. Analysis of Sharp’s Successful Approach to Motivation In 2001, Sharp healthcare set up six pillars of excellence which served as a bedrock for its healthcare vision. All operations and activities of the Sharp healthcare system were set up to align with the following six pillars of excellence: quality, people, service, finance, growth and community (Wong, 2012).Three of these pillars...
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...Total Quality Management Total Quality Management (TQM) is a methodology to business, which basically takes a gander at the items and administrations of an organization to get complete client fulfilment. In TQM exertion, each part of an association take an interest in enhancing courses of action, administrations, items and the society in which they put effort. It intends to outfit the anthropological and material possessions (of an association) in the best approach to attain the association's targets. TQM utilizes method, information, and powerful interchanges to coordinate the quality control into the society and exercises of the association. TQM incorporates the saying "Total" in light of the fact that it includes everything the organization ensures i.e. all its methods and representatives at each end. It is the total of three properties i.e. i. Total: Any choice or activity transpiring in a specific division is not restricted to that office yet thusly impacts the whole arrangement of that association. Subsequently, each matter ought to be concentrated on in general. ii. Quality: Quality is the incorporation of value in creation, amenities and administration process. iii. Management: Administration is a specialty of achieving activities through others. Basically TQM is composed of 10 basic or key elements. Which are listed below 1. Process Thinking 2. Customer Satisfaction 3. Total Employee Commitment 4. Team Work and Quality Chain 5. Strategic...
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...第十五屆決策分析研討會 The Malcolm Baldrige National Quality Award Case Study: Ritz-Carlton Hotel Company, L.L.C. Chakrit Chansukko William Firman Ha Tuan Anh Abstract The Malcolm Baldrige National Quality Award framework is probably the best-known excellence award model, and the world’s most widely used excellence framework for self-assessment. The criteria are designed to help organizations improve their competitiveness by focusing on two goals: continually delivering improved value to customers, and improving overall organizational performance. Our final project concentrates on Ritz-Carlton Hotel Company, which receives the Malcolm Baldrige National Quality Award in the service category. The Ritz-Carlton Hotel Company manages thirty six luxury hotels in North America, Europe, Asia, Australia, the Middle East, Africa, and the Caribbean. All have received four- or five-star ratings from the Mobil Travel Guide and diamond ratings from the American Automobile Association. The Ritz-Carlton company has received all the major awards the hospitality industry and leading consumer organizations can bestow. It is the first and only hotel company twice honored with the Malcolm Baldrige National Quality Award from the United States Department of Commerce. The Ritz-Carlton method is close attention to performance data collection and a broad educational platform to deliver the findings. In this report, we will study deeply about The Ritz-Carlton Company, the external and internal performance...
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...1. Explain the significance of integrating different quality perspectives in the value chain. A: All the perspectives together make a value chain. There are certain type of Quality perspectives namely Value perspective, Transcendent perspective, Customer perspective, Product perspective, User perspective, Manufacturing perspective. All these perspectives are primarily concentrated on the quality and performance assurance of a particular product to the customer. For a company or business of manufacturing any goods to be successful it should ensure the excellence of the product, durability for intended use, quality products for a reasonable price and of course exceeding the expectations always counts. All these qualities are assured using the quality perspectives. This is the significance of integrating different quality perspectives in the value chain. 2. Discuss the “quality revolution” that took place in the United States after 1960s. A: In USA statistical quality control was terminated after the end of the war and government contracts. At this particular time in US Japanese produced the goods with high quality and low price by “total quality” approach. Looks like they didn’t just rely on product inspection. As American mangers were unaware of this trend, Japanese manufacturers began increasing their shares in American markets. As a result manufacturers began loosing market share and the economy suffered unfavorable trade balances. At first US...
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...Our group have found a publicly trade company named MidwayUSA which won the Malcolm Baldrige National Quality Award at least five years ago. The MidwayUSA Company had already won this award for about 3 times, in 2006, 2009 and 2015. MidwayUSA is an Internet retailer offering “Just About Everything” for shooting, hunting, and the outdoors. In 2009, the annual revenues of MidwayUSA is $185 million, and in 2015 their gross sales in excess of $350 million. Over the past 11 years, the company has been one of the fastest growing in its industry, sustaining a 43.8 percent average annual growth rate in net income and a 21.3 percent average annual growth rate in gross sales. These dramatically exceed the national benchmarks of 4 percent and 6.9 percent, respectively. Return on assets has averaged 80 percent for the past five years, a rate significantly better than the 20 percent benchmark of the Risk Management Association. In 2009, based in Columbia, Missouri, MidwayUSA has 243 fulltime and 100 part-time employees. In 2015, MidwayUSA employs more than 350 at its facility in Columbia, Mo. Many in the company’s workforce have a deep passion for shooting, hunting, and outdoor sports, allowing them to use personal knowledge and insight to better serve their Customers. At my point of view, this company success by putting customers first, MidwayUSA is a customer driven, customer connected kind of company. What’s more, they care for neighbors and nature. For example, MidwayUSA’s overall customer...
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...goal is to be the best place to work, the best place to practice medicine, and the best place to receive care in San Diego. In 2008 Sharp HealthCare ranked fifth in the California “best places to work program” in the large-employer category and was rated 47th out of the top 100 places to work in the United States by Modern Healthcare. Since launching the healthcare experience in 2001, Sharp has dedicated itself to transforming the health care experience for employees, physicians, and customers. The focus on purpose, worthwhile work, and making a difference has led to increased employee, physician, and patient satisfaction, enhanced loyalty, and improved outcomes. In 2007 Sharp HealthCare won the prestigious Malcolm Baldrige National Quality Award. Pillars of Excellence Since 2001, Sharp has adopted six pillars of excellence as the foundation for its vision of the health care experience. These six pillars are the basis for everything from strategic planning, organizational goal setting, priority setting, management performance evaluation, and other agendas. There are measures and targets set under each pillar that align each individual leader’s goal with their department, division, and the entire Sharp system. With the pillars as a guide, communications and work planning are...
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...2005 Baldrige National Quality Program Criteria for Performance Excellence THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD PROGRAM A Public-Private Partnership Building active partnerships in the private sector—and among the private sector and all levels of government—is fundamental to the success of the Baldrige National Quality Program in improving national competitiveness. Privatesector support for the Program in the form of funds, volunteer efforts, and participation in information transfer continues to grow. To ensure the continued growth and success of these partnerships, each of the following organizations plays an important role. Board of Overseers The Board of Overseers advises the Department of Commerce on the Baldrige National Quality Program. The board is appointed by the Secretary of Commerce and consists of distinguished leaders from all sectors of the U.S. economy. The Board of Overseers evaluates all aspects of the Program, including the adequacy of the Criteria and processes for determining Award recipients. An important part of the board’s responsibility is to assess how well the Program is serving the national interest. Accordingly, the board makes recommendations to the Secretary of Commerce and to the Director of NIST regarding changes and improvements in the Program. Foundation for the Malcolm Baldrige National Quality Award The Foundation for the Malcolm Baldrige National Quality Award was created to foster the success of the Program. The...
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