If you want to learn a lot about your business, apply for a Forward Award
By Mark Crawford
Created in 1997 by former Gov. Tommy Thompson and the Council for Workforce Development, the Wisconsin Forward Award (WFA) was designed to increase the competitiveness and economic stability of Wisconsin companies by promoting continuous improvement, best practices and performance excellence.
“The Forward process, using the internationally famous Malcolm Baldrige National Quality Award criteria, provides organizations with a great roadmap to improve results,” said Neil Fauerbach, director of business development and marketing for Smith & Gesteland LLP, who was part of the original task force that put the program together and continues as vice chairman.
The Baldrige Award is the most prestigious recognition of quality management for U.S. business and industry. It provides rigorous standards, a proven measurement system and improvement benchmarks for organizations that are serious about improving their global competitiveness.
“State-level programs like WFA (there are currently about 44) provide key support and training for organizations and offer more opportunities for feedback and technical assistance, whether they are just beginning, or are already a high performer,” said Elizabeth Clark Menzer, executive director for WFA and a senior Baldrige examiner. This kind of hands-on assistance from WFA prepares businesses well for the national Baldrige Award contest, where Wisconsin companies typically excel.
As a result, Wisconsin is among the top states for Baldrige applications, site visits and awards. “During the past three years, five Wisconsin organizations made it to the Baldrige finals by earning national site visits,” Menzer said.
Wisconsin claims three national winners: UW-Stout (the first-ever winner in the higher education sector), SSM Healthcare and St. Mary’s Hospital (first-ever winner in the health-care sector) and Mercy Health System in Janesville.
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It’s not the award,
it’s the process
The Wisconsin Forward Award recognizes four levels of progress: commitment, proficiency, mastery and excellence. Participants receive written feedback at the end of the evaluation process, which is carried out by volunteers who are experts in performance management and quality assessment.
The report identifies strengths and opportunities for improvement according to WFA criteria. By identifying gaps in systems and improvement strategies, the feedback can be used to pinpoint immediate ways to improve strategic and business planning processes.
“When you write the 50-page application, you’ll learn more about your organization than you ever thought possible,” reported Sister Mary Jean Ryan, president and CEO of SSM Healthcare. “You’ll begin to see what you are doing well, what you’re not doing well and what you’re not doing that you thought you were doing.”
Gregg McManners, director of operations for Monona Terrace Convention Center, agreed. “The biggest surprise is what we learned about ourselves,” he said. Monona Terrace staff discussed the WFA in December 2006 and decided to pursue it.
“We felt that we’re a world-class convention center but wanted a method in which to prove it,” McManners said. “We learned we are good at where we concentrate our efforts including our organizational culture, participatory management and decision-making methods and customer service philosophy. Conversely, we are not so good at the areas we tend not to deem a priority. The process teaches that you need to concentrate equally on all those areas that have a bearing on the success of your organization.”
Studies by the National Institute of Standards and Technology and other organizations have found that investing in quality principles and performance excellence pays off in increased productivity, satisfied employees and customers, and improved profitability both for customers and investors. According to Menzer, organizations that use a quality award process as a basis for continuous improvement have achieved:
• 59 percent higher stock price
• 111 percent higher operating income
• 116 percent higher sales
• 114 percent higher total assets
Results from a 2006 WFA survey of participants also showed impressive results:
• 75 percent made changes to their leadership structure that were directly related to the WFA review process
• 77 percent reported improvements in customer service
• 72 percent reported improvements in maintaining a well-trained, motivated and satisfied workforce
• 56 percent showed financial gains directly related to the WFA review and feedback process
In 2001, after a period of sustained rapid growth, Mercy Health System wanted to improve its organizational excellence strategy and performance. “As we studied the Baldrige process, we discovered the comprehensive framework was an excellent match for us,” said Javon R. Bea, Mercy Health System president and CEO.
Both WFA and the national Baldrige program have applications fees. “These fees are modest in comparison to what organizations receive, especially if they were to hire consultants as an alternative to provide similar performance excellence advice,” continued Bea. “Examiners review your organization at a very detailed level, spending 500 to 800 hours examining your processes, systems and outcomes and giving feedback reports that help an organization learn and improve.”
Mercy Health has made many improvements over the seven years it has used the Baldrige system, creating value for its patients, customers and communities. “In 2007 almost 90 of our outcome indicators were in the top quartile (25 percent) or top decile (10 percent) compared to national benchmarks,” Bea said.
In today’s economy The down economy is the perfect time to get serious about improving your company by applying for the Wisconsin Forward Award. Up-front costs are minimal and, if like many companies, business is slow right now, you and your staff may have more time to invest in quality improvement.
“Assessing and improving organizational effectiveness now will increase the probability of surviving the crisis and being positioned to take advantage of the market as it rises again,” said Menzer. “WFA can help organizations achieve greater sustainability by using a systems approach to aligning/integrating people and processes.”
How to apply
Intent-to-apply for 2010 will be due in late October or early November 2009 (exact date to be announced). Visit www.forwardaward.org/calendar.html for more details.
