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The Impact of Baldrige on Organizational Performance

The Impact of Baldrige on Organizational Performance

Publication:
Journal for Quality and Participation
Date:
April 2012
Issue:
Volume 35 Issue 1
Pages:
pp. 4-7
Author(s):
Hertz, Harry S.
Organization(s):
National Institute of Standards and Technology, Washington, DC

Abstract

Many organizational leaders are unaware of or unwilling to commit to the Baldrige criteria despite their demonstrable return on investment. One reason for this may be the incorrect belief that the return only applies to award-winning organizations. A number of studies demonstrate that this is not the case. In 2001 and 2011 studies by Albert N. Link of the University of North Carolina at Greensboro and John T. Scott of Dartmouth College found dramatic increases in benefit-to-cost ratio from organizations not using Baldrige criteria to those who did use it, with the increases even more dramatic as the gains from increased customer satisfaction and higher sales were factored in, even among organizations not eligible for the Baldrige award. Another 2011 study by David A. Foster found that hospitals which received site visits or won a Baldrige award were more likely to be among the Top 100 Hospitals. Shortly after the Baldrige Award expanded to include educational institutions, the ACT reported that adoption of Baldrige principles could fundamentally improve primary and secondary education.

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