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Organizational Self-Assessment: The Journey to Business Excellence
American Productivity & Quality Center (APQC), Aug 1999, Pages: 24
Over the past two decades, the never-ending road to quality and continuous improvement has taken various forms and experienced many changes in direction. In the early 1980s, companies began embracing continuous improvement philosophies such as total quality management, quality function deployment, and Kaizen. Moving onward through the ’90s brought popular principles such as activitybased management and balanced scorecard measurements. Now, as we approach the new millennium, organizations have become compelled to raise the bar where improvement is concerned. As such, leading organizations are beginning to move toward a relatively new concept in their pursuit of excellence—organizational self-assessment.
The whole notion of organizational self-assessment stems from firms’ desires to prepare and apply for the United States’ management excellence award, the Malcolm Baldrige National Quality Award (MBNQA). The award, which was first administered in 1988 with the help of the American Productivity & Quality Center (APQC), is designed to showcase leading firms that exhibit competencies in management excellence. The award promotes understanding of the requirements for performance excellence, sharing of successful performance strategies, and understanding of the benefits derived from self-assessment strategies. The award is named for Malcolm Baldrige, who served as Secretary of Commerce from 1981 to 1987. His managerial excellence contributed to long-term improvement in efficiency and effectiveness of government.
APQC’s first study in the area of assessments was conducted in 1998 and was entitled Baldrige-Based Self-Assessment. This study focused on best-practice strategies for creating and implementing an effective selfassessment process.* As a natural progression to this work, in 1999 APQC led a research effort to calibrate and build upon last year’s findings. This newest research, entitled Organizational Self-Assessment, examined innovative assessment strategies currently being implemented in best-practice firms.
Both studies were guided by the seven areas of focus outlined in the 1997–98 MBNQA criteria:
Category One: Leadership
Category Two: Strategic Planning
Category Three: Customer and Market Focus
Category Four: Information and Analysis
Category Five: Human Resource Development and Management
Category Six: Process Management
Category Seven: Business Results
STUDY PARTICIPANTS
Thirteen companies, referred to as “best-practice” organizations within this report, were identified as leaders in the area of selfassessment and provided the data and information that substantiate the conclusions presented here. Those companies are as follows:
- AMP Incorporated
- AT&T Corporation—Consumer Markets Division
- AlliedSignal Aerospace
- Cargill, Inc.
- Carrier Corporation
- Dow Chemical Company
- Eaton Corporation
- Honeywell, Inc.
- Johnson & Johnson
- Merrill Lynch Credit Corporation
- Sprint Corporation
- Weyerhaeuser
- Xerox Business Services
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