Commitment to Excellence in a Bad Economy

Every day the news reminds us that organization after organization in all sectors continue to cut back their operations, reduce their workforces, and frantically seek to cut costs.  It certainly doesn't seem like the time to invest in performance excellence -- or does it?

Seventy organizations submitted applications for the Baldrige Award for Performance Excellence this year.  The judges recently met and selected 15 of those applicants to move forward to the site visit stage of the award process.  That's two manufacturing, two small business, one education, eight health care, and two nonprofit organizations.

What do these organizations have that many others lack in these tough times?  I'd guess visionary leadership, valuing workforce members and partners, and a focus on the future -- just three of the Core Values that serve as a foundation for the Baldrige Criteria.

Many organizations view using the Baldrige framework as something extra on their plates, but excellent organizations see it as an investment in their capabilities and a means to stay focused on customers, students, patients, and stakeholders in times where it could be easy to get distracted.

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I would add that in tough times a key stakeholder group is the people of the organization, the men and women who provide dedicated service to customers, patients, and students. In role model organizations, the workforce is informed of the organization's current situation on an ongoing basis. Transparency is the commitment of the day in a tough economy. Even if an organization can't be generous (layoffs and pay cuts may be necessary), they are genuine in their relations with all key stakeholders.

Is that a benchmark your organization is meeting?

Kay, I worry about chasing costs to the exclusion of improving the enterprise. Dr. Deming might call this meddling. Dr. Ackoff would warn about unintended consequence. That's way the Baldrige framework should be a valued guide in these times. Balance is called for. Yes, waste, in all its forms, should be eliminated but a frenetic reduction of cost without consideration of the larger system of the enterprise is a recipe for disaster.

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