ACCA SBL Syllabus H. Innovation, Performance Excellence & Change Management - The Baldrige Model - Notes ^{1 / 2}

The Baldrige Criteria for Performance Excellence is a framework for improving performance and achieve excellence.

It helps the organisation find its own strengths (and areas for improvement), and prioritises those which sustain the organisation

It can be used by not-for-profit organisations too

The framework uses core values and concepts which are found in high-performing organisations:

Visionary leadership

Focus on success

Ethics and transparency

Societal responsibility

Organisational learning and agility

Valuing people

Customer-focussed excellence

Delivering value and results

Management by fact: an emphasis on feedback, and a fact-based, knowledge-driven system for improving performance and competitiveness

Elements of the Baldrige Assessment

Organisational profile:

The organisation describes what is important to it — its operating environment, competitive environment, key relationships.

1. Leadership

   Leaders set direction and expectations. Areas looked at are:

   The role of senior leadership
   Governance and social responsibilities

2. Strategy

   This focuses on:

   Strategy development
   Strategy implementation

3. Customers

   Needs of customers must be met

   It focuses on:

   Listening to the customer
   Customer engagement

4. Measurement, Analysis and Knowledge Management

   Feedback (measurement) is vital

   The focus here is on:
   Measurement, analysis and improvement of organisational performance
   Knowledge, management, information and information technology (IT)

5. Workforce

   Skilled and Motivated staff are vital

   'Workforce' focuses on:
   Working environment
   Workforce engagement

6. Operations

   Efficient and effective processes are vital 

   'Operations' focuses on:
   Work processes
   Operational effectiveness

Results (compared to other organisations, and over time)

As well as assessing each criteria individually, the framework also highlights the importance of integration between each other in delivering results

This means excellence across the ENTIRE organisation, not the individual criteria resulting in better financial results; satisfied,
loyal customers; improved products and services; and an engaged workforce.

The Criteria are evaluated against the following 4 Dimensions

1. Approach 

   How is work done? How effective are its key approaches?

2. Deployment  

   How consistently are key processes used in relevant parts of the organisation?

3. Learning 

   How improved are the key approaches? 
   How have these been shared?
   What is the potential for innovation?

4. Integration  

   Are approaches aligned to needs? 
   Are processes / targets harmonised?

Results are also evaluated across 4 dimensions:

1. Levels  

   What is the current performance level?

2. Trends  

   Are results in this aspect of performance improving?

3. Comparisons  

   How does performance compare with others, or against benchmarks/targets?

4. Integration  

   Are results tracked and do they consider key stakeholder needs?
   Are performance tracking results used in decision making?