Case study: Baldrige assessment makes priorities clear and kickstarts revenue growth
Problem: Conflicts arise between divisions as limited budgets must stretch to cover the costs of new products designed to stem customer loss
A consumer services company wanted to add services to attract new customers and to “re-attract” customers who had gone to the company’s competitors. Divisions began internal bickering as pressure increased from higher up. Without new resources or a clear path to achieve these results, departments were expected, yet unable to grow revenue. In addition, the company wanted to improve customer service to retain customers far longer than was currently the case. Making so many changes all at once created conflicts between divisions as people fought for money, employee headcount, status and management attention.
Solution: Lead a rapid-cycle full-company assessment to identify priorities for improvements leading to greater customer satisfaction, retention and revenue growth
We completed a full-company assessment to establish clear priorities for process and product quality improvement. We helped management and each division to agree on their common goals. The leadership team wanted to identify priorities to remain competitive with changing times. With a more versatile market and growing competition, customer loyalty decreased as the number of choices available to fill customers’ needs grew. It was especially important for the company to compete efficiently and profitably. To do that, it was essential for priorities to be clear in all parts of the company, and for actions and resources to clearly support goals.
The project manager selected the Malcolm Baldrige National Quality Award criteria as the framework for a full company assessment. He knew that other companies had used the Baldrige criteria to create performance excellence and world-class results. The project manager needed two experienced national Baldrige examiners to lead the process and so I was hired to join the team.
The three of us – two experienced Baldrige examiners and the company project manager – collaborated to lead the team. With the clock ticking, we turned a group of 12 people who barely knew each other into a finely-tuned assessment team. We completed the full-company evaluation, from kick-off and training to presentation of the final report, in an intense but invigorating five-week project.
We prepared and trained the team to use the Baldrige criteria, and assigned sub-teams to evaluate one of the seven Baldrige categories, such as leadership, strategic planning and process management. We then coached the sub-teams using a rigorous yet very effective process. We also supervised the quality of their field work and analysis. At the end of the overall assessment, we managed the creation and production of a 50-page report of their findings, including key recommendations. The report was similar to a real Malcolm Baldrige National Quality Award application.
The team presented final results to the Board of Directors. It included their recommendations of priorities, changes and improvements. In addition, the summary was distributed and used throughout the company to focus attention, resources, and action on common goals as the company moved forward.
Results: Assessment leads to clear agreements about company priorities for process and quality improvements and kickstarts action to begin implementation of improvements
The full-company assessment provided a prioritized target for process and quality improvement for the next few years. It also gave the assessment team members valuable leadership training stretching far beyond use of the team’s work at the company. The assessment report and recommendations provided compelling, well-received changes. In addition, because they were based on a tested national performance excellence framework, the Malcolm Baldrige National Quality Award criteria, it was easy for the leadership team to accept the recommendations. They all finally began to move forward.
The assessment proved invaluable. The comprehensive recommendations and the results exceeded expectations.
Since the team was comprised mainly of staff members, their newly developed skills proved beneficial within the company long after the work was complete. Each team member put their new leadership, communication and process management skills to work immediately upon returning to their normal jobs.