Hundreds of thousands of organizations around the world, representing most industries, have pursued the development and registration of their quality management systems (QMS) to the ISO 9000 series of standards since their release in 1987. The registration process is perceived by many organizations as the first step in their pursuit of world-class performance.

So what can you do if you want to push your organization beyond this baseline level of performance? Consider evolving your QMS into a business management system (BMS) using the Malcolm Baldrige National Quality Award criteria. The QMS established during ISO 9000 implementation efforts can easily be expanded to support the addition of key processes that will sustain a world-class organization based on the Baldrige criteria.

Mapping the Baldrige criteria to your QMS

Most organizations with an existing ISO 9000-based QMS document their quality systems according to ISO 9001's 20 elements (or ISO 9002's 19 elements). To expand a QMS into a BMS, it is first necessary to understand how to map Baldrige criteria to a current QMS. Figure 1 provides an overview that contrasts the Baldrige Award categories with ISO 9001's elements.

Figure 1: Baldrige Criteria for Performance Excellence
Framework vs. ISO 9001 Elements

Table 1: Management Review Agenda Matrix

The existing corrective and preventive action system (ISO 9000 element 4.14) evolves into a continuous improvement system. Such a system allows all employees to easily initiate and track improvement efforts identified anywhere in the BMS.

The quality records system (ISO 9000 element 4.16) expands to include the additional records created as a result of initiating and managing a strategic planning process using the business operating system.

The existing internal audit system (ISO 9000 element 4.17) expands to include internal audits of new processes as they are defined and implemented. The existing auditor pool may need to grow, and all internal auditors will need training on the newly documented processes.

Training (ISO 9000 element 4.18) may be necessary to give employees the new skills needed to support the implementation of the Baldrige criteria. In addition, the organization should conduct a needs assessment.

Since the Baldrige criteria emphasizes tracking both external and internal performance and using performance data to target continuous improvement opportunities, the statistical techniques section (ISO 9000 element 4.20) of the QMS may also expand greatly.

All other ISO 9000 elements should be reviewed as a part of the implementation process to ensure that all Baldrige criteria have been addressed. Because of the expanded scope of the internal audit system, documenting any new processes in the evolving BMS ensures that the new processes will be in compliance.

Conducting a needs assessment

The first step in moving an ISO 9000-based QMS toward a Baldrige-based BMS is to conduct a needs assessment, based on the Baldrige criteria, of the current system. Prior to the assessment, a steering team (the senior management team) should be identified to provide oversight on the implementation efforts and to start becoming familiar with the Baldrige criteria.

During the assessment, attention should also be given to the organization's training needs. A training matrix shows most of the training that personnel may need to support the implementation effort and indicates which functional areas will be impacted (see Table 2). The additional training will be focused on three broadly defined groups within the organization. The first group is the management team, whose training emphasizes leadership skills, strategic planning and the creation of a business operating system. The second group includes the organization's functional-area personnel, whose training teaches teamwork skills, use of teamwork tools and problem solving. The third group comprises the specialists within the organization, whose training supports process management improvement efforts.

Table 2: Training Matrix

Once team structure and guidelines have been defined, training should be conducted to support the teams as they work to become high-performing teams. This training should begin with the senior management team, but eventually should be provided to all teams. Specific training should be conducted just before it's needed to support a part of the implementation plan.

After the needs assessment has been finalized, the steering team must review the results to develop an implementation plan.

Creating an implementation plan

The transition to a Baldrige-based BMS must be driven by the creation of an implementation plan that allows for the gaps in the current system, the time frame within which the organization wants to work, the budget available to support the development and implementation of new processes, and the current state of a team structure within the organization. Someone on the senior management team should act as champion for the effort, and regular reviews should be held to ensure that changes are taking place according to plan. A series of functional teams should be created (if one isn't already in place) to support the tactical efforts associated with moving the plan forward.

Shifting an organization to a BMS could take as little time as one year or as much as five years. The first stage should involve learning about the new criteria, planning the effort, raising the organization's awareness of the new desired system and establishing a teamwork structure within the organization.

A second stage of activities should center around training, defining new processes, updating and evolving the existing documented QMS into a BMS, initiating the strategic planning process, and establishing baseline data to support the development of an operating system that will track business performance.

A third stage of activities includes using the internal audit system to ensure that newly defined processes are suitable and effective, using the business operating system to ensure that performance is in keeping with goals established in the strategic planning process, and providing specific training for topical experts.

Creating a team-oriented environment

The Baldrige criteria put emphasis on how work is accomplished and how the teams are assembled to support performance excellence. The organization should define a teamwork structure that is a mix of functional, cross-functional, project and improvement teams. Each team should have a leader, and everyone on the team should have a clear understanding of the team goals. Although the definition of the team structure can come quickly, turning newly formed teams into high-performing teams may take time and could require the help of a trained facilitator.

Strategic planning process

When part of your organization's mission is to become world-class, the strategic planning process drives the effort because it allows you to analyze where the organization currently stands and where it should stand and provides the road map to get there. This process requires the creation of a vision, key strategies, long-term goals, and tactical (annual) goals and plans, and the identification of key measurables to track the desired results as they are achieved.

The strategic planning process starts at the top, where the senior management team conducts a situational diagnosis, reviews and updates the long-term strategy, and provides the goals needed to support the plan of achievement. Management then distributes this information to functional areas of the organization, which help create tactical plans and functional targets in support of the goals. This process should move up and down the organization until all teams have accepted and invested in the plan and have accepted appropriate levels of responsibility and accountability for achieving the goals and targets.

Business operating system

The business operating system is the process used to track performance as an organization strives for excellence. Goals and targets identified during the strategic planning process should be reviewed on a monthly basis to ensure that the organization is performing as planned. Monthly reviews allow timely action to be taken where improvement is needed. Measurables that support the plan should be trended and compared to the goals and targets. This data can be recorded and be communicated to the organization (see Table 3).

Table 3: Business Operating System Summary

ISO 9000-based standards are an excellent starting point for organizations working to improve their performance, but they should be viewed as only a first step. To achieve world-class performance, organizations must move beyond ISO 9000. The Baldrige Award criteria can help them get there.

References

1. American Society for Quality Standards Committee, 1994, ANSI/ISO/ASQC Q9001-1994, Quality Systems--Model for Quality Assurance in Design, Development, Production, Installation, and Servicing, Milwaukee, American Society for Quality.

2. National Institute of Standards and Technology, 1999, Malcolm Baldrige National Quality Award 1999 Criteria for Performance Excellence, Gaithersburg, Maryland, National Institute of Standards and Technology.

About the author

Anthony C. Fletcher is a principal and director of operations for Eagle Group USA Inc. In this capacity, he manages new product development, consulting and training activities, and the business operating system. He is a RAB QS-LA and an ASQ CQE. He can be reached by phone at (248) 355-4421, by fax at (248) 355-4623 or via e-mail at tfletcher@qualitydigest.com .