Abstract

Pal's Sudden Service isn't a large, sophisticated corporation, but that didn't stop the Tennessee-based restaurant chain from winning the Malcolm Baldrige National Quality Award (MBNQA). Pal's two executives believe there is a process for everything organizational and operational, and nothing is done without a thorough analysis of the impact on customer satisfaction. Pal's approach to the Baldrige award was gradual and relentless, resulting in a Tennessee Quality Award in 1995, followed by three years of applications before winning the Baldrige award in 2001. The leadership team applies strategic planning to determine future course and opportunities while using input from all key stakeholders. Pal's frontline staff training includes extensive training of effective listening skills for gathering information about customer needs, expectations, and satisfaction. Other quality management tools used include a performance measurement and analysis system and a balanced scorecard to select the processes to be benchmarked. As for business results, the number of customers is up while complaints are down, sales and market shares have grown, and profit percentage have improved. By applying Baldrige award criteria, Pal's became the first company in the restaurant industry to win the coveted award. Sidebar articles show how Pal's competed against the giants, and ten lessons learned from Pal's.