Baldrige Framework

The Baldrige framework, formally known as the Baldrige Excellence Framework, is used to improve organizational effectiveness and deliver sustainable results.

Baldrige Framework	Description	Analysis	Implications	Applications	Examples
1. Organizational Profile (OP)	The Baldrige Framework starts with creating an Organizational Profile that provides an overview of the organization.	– Define the organization’s mission, vision, values, and key strategic challenges. – Describe the organization’s core competencies and key strengths. – Identify the key customer and stakeholder groups.	– Helps stakeholders understand the organization’s purpose, values, and strategic direction. – Sets the context for the Baldrige assessment by outlining the organization’s current position and challenges.	– Preparing an overview of a healthcare organization’s strategic goals and challenges. – Documenting a manufacturing company’s core competencies and values.	Organizational Profile Example: Describing a university’s mission, vision, values, and strategic priorities.
2. Leadership (LD)	Assess the effectiveness of leadership and governance in driving the organization’s success.	– Evaluate the organization’s leadership system, including the roles and responsibilities of senior leaders. – Assess how leadership promotes a culture of excellence and drives organizational performance. – Analyze governance and ethical behavior within the organization.	– Identifies strengths and areas for improvement in leadership and governance practices. – Ensures alignment between leadership behaviors and organizational values.	– Evaluating the leadership practices within a nonprofit organization. – Assessing how governance contributes to a corporation’s strategic success.	Leadership Assessment Example: Analyzing how the leadership team fosters innovation and ethical behavior.
3. Strategy (ST)	Examine the organization’s strategy development, deployment, and performance improvement.	– Evaluate how the organization formulates its strategic objectives and action plans. – Analyze how strategies are communicated, deployed, and monitored throughout the organization. – Assess the organization’s agility and adaptability in responding to changing circumstances.	– Identifies the effectiveness of the organization’s strategy development and execution processes. – Helps organizations remain agile and adaptable in a rapidly changing business environment.	– Assessing the strategic planning process of a government agency. – Evaluating a technology company’s ability to respond to market changes.	Strategy Assessment Example: Analyzing the alignment of business unit strategies with the organization’s overall strategic objectives.
4. Customers (CU)	Evaluate how the organization engages, listens to, and meets the needs of its customers.	– Assess the organization’s customer engagement and feedback mechanisms. – Analyze how customer needs, expectations, and satisfaction are measured and addressed. – Evaluate strategies for building and maintaining customer relationships.	– Identifies areas where the organization excels in customer engagement and satisfaction. – Highlights opportunities for improving customer relationships and addressing customer needs more effectively.	– Assessing a retail company’s customer feedback and satisfaction processes. – Analyzing how a hospitality organization builds and maintains guest relationships.	Customer Engagement Example: Evaluating how a software company gathers and responds to customer feedback.
5. Measurement, Analysis, and Knowledge Management (MA)	Examine the organization’s approach to data-driven decision-making and knowledge management.	– Evaluate the organization’s performance measurement and analysis processes. – Assess the use of data and information for decision-making and problem-solving. – Analyze knowledge management practices and strategies for organizational learning and innovation.	– Identifies the effectiveness of data-driven decision-making and knowledge-sharing processes. – Encourages a culture of continuous improvement and innovation based on data and information.	– Evaluating a healthcare organization’s use of data for patient care improvement. – Assessing knowledge management practices in a research and development department.	Measurement and Analysis Example: Analyzing how an e-commerce company uses data to optimize its marketing strategies.
6. Workforce (WKF)	Evaluate the organization’s approach to workforce management, development, and engagement.	– Assess the organization’s workforce planning and recruitment strategies. – Analyze employee engagement, satisfaction, and development programs. – Evaluate diversity and inclusion practices within the organization.	– Identifies areas of excellence and opportunities for improvement in workforce management and engagement. – Supports the development of a diverse and inclusive workforce that drives organizational success.	– Assessing a manufacturing company’s workforce development programs. – Evaluating employee engagement within a government agency.	Workforce Management Example: Analyzing the impact of diversity and inclusion initiatives on employee satisfaction and retention.
7. Operations (OPR)	Examine the organization’s operational processes and their impact on delivering value.	– Evaluate the effectiveness of core operational processes in delivering products or services. – Analyze process efficiency, quality, and continuous improvement efforts. – Assess supply chain management, resource allocation, and cost control strategies.	– Identifies operational strengths and areas for improvement that impact the organization’s value delivery. – Ensures efficient processes, quality outcomes, and effective resource utilization.	– Assessing the manufacturing processes in a production facility. – Evaluating supply chain management practices in a distribution company.	Operations Assessment Example: Analyzing the efficiency and quality of order fulfillment processes in an e-commerce company.
8. Results (RES)	Assess the organization’s performance results in key areas such as customer satisfaction, workforce engagement, and financial performance.	– Evaluate the organization’s results in key performance areas based on predefined metrics. – Analyze trends, patterns, and outcomes in customer satisfaction, financial performance, and other relevant domains. – Assess the impact of organizational activities on key results.	– Provides an overview of the organization’s performance outcomes in critical areas. – Enables data-driven decision-making based on results and trends.	– Analyzing a healthcare provider’s patient satisfaction scores and clinical outcomes. – Assessing a nonprofit organization’s financial performance and impact.	Results Assessment Example: Analyzing the year-over-year improvement in customer satisfaction scores in a retail company.

Table of Contents

Understanding the Baldrige framework

The Baldrige framework was created in 1988 by then U.S. Secretary of Commerce Malcolm Baldrige. At the time, Baldrige and his counterparts recognized that American companies needed to focus on quality to compete in an increasingly dynamic global market.

The framework itself empowers an organization to improve results, carry out its mission and vision, and ultimately, become more competitive. To do this, it includes numerous performance criteria, core values, and other concepts that a business can use to evaluate its internal processes and outcomes.

The Baldrige framework is updated periodically to reflect market conditions and trends. In the 2021-2022 version, for example, there is a focus on innovation, diversity and inclusion, digitization, and organizational resilience.

The framework is used extensively across the manufacturing, service, small business, non-profit, government, education, and healthcare sectors. Businesses within each sector, as Baldridge intended, collaborate and share organizational best practices.

In the following sections, we will explain some of the key components of the Baldridge framework.

Baldrige framework organizational profile

The framework defines seven criteria that each define aspects of organizational performance and management. These include:

Leadership – how is the vision shared across the organization? How does it maintain good governance?
Strategy – how does the organization prepare for the future?
Customers – how well are customers listened to, satisfied, and engaged?
Measurement, analysis, and knowledge management – is accurate, reliable data or information used in decision-making?
Workforce – how is the employee cohort empowered and motivated?
Operations – are operations effective at delivering quality outcomes? How can processes be designed, managed, or improved?
Results – how does the organization perform on the above six criteria? This also includes performance with respect to competitors.

Baldrige framework core values and concepts

It’s important to note that the above criteria are built on interrelated beliefs and behaviors that are common in high-performance organizations. These are expressed as core values and concepts, providing the basis for a results-oriented framework that determines future actions via performance feedback.

The Baldrige framework’s core values and concepts are:

Customer-driven excellence.
Visionary leadership.
Valuing people.
A focus on success.
Organizational learning and agility.
Value and results delivery.
Ethics and transparency.
Managing for innovation.
Management by fact, and
Contribution to society.

Key characteristics of the Baldridge framework criteria

Earlier, we noted that the Baldridge framework is revised to reflect current market conditions.

But while markets and trends are in a constant state of flux, the criteria of the framework remain more or less constant. In other words, the criteria:

Focus on results to ensure strategies are balanced.
Maintain organization-wide goal alignment to create a systematic perspective.
Support goal-based diagnosis that is based on strengths and opportunities, and
Promote creative and flexible approaches to developing incremental or indeed breakthrough improvements.

With that in mind, there are also three goals to this integrated approach:

The improvement of organizational capabilities and effectiveness.
Organizational and personal learning, and
Delivery of incremental improvements in customer value to aid in marketplace success.

Key takeaways:

The Baldrige framework, formally known as the Baldrige Excellence Framework, is used to improve organizational effectiveness and deliver sustainable results. It was created in 1988 by then U.S. Secretary of Commerce Malcolm Baldrige.
The Baldrige framework analyses an organizational profile with seven key criteria that are underpinned by a further list of core values and concepts. The latter provides the basis for a results-oriented framework that determines future actions via feedback.
The Baldrige framework is periodically revised to reflect market conditions and trends. However, the criteria on which it is based remain more or less constant. Criteria include results-focused, goal alignment, goal-based diagnoses, and the promotion of creative approaches to incremental improvement.

Related Frameworks	Description	When to Apply
Malcolm Baldrige National Quality Award (MBNQA)	The Malcolm Baldrige National Quality Award (MBNQA) is a framework developed by the United States Department of Commerce to recognize organizations that demonstrate excellence in performance and quality management. It consists of seven categories: Leadership, Strategy, Customers, Measurement, Analysis and Knowledge Management, Workforce, Operations, and Results. The Baldrige Criteria provide a holistic framework for assessing organizational performance and identifying opportunities for improvement across various dimensions.	The Malcolm Baldrige National Quality Award (MBNQA) is applied by organizations seeking to improve their performance, quality, and competitiveness. It helps organizations assess their strengths and weaknesses, benchmark against best practices, and drive continuous improvement and innovation.
ISO 9000	ISO 9000 is a family of standards developed by the International Organization for Standardization (ISO) that focuses on quality management systems (QMS). It provides guidelines and requirements for organizations to establish, implement, maintain, and continually improve their quality management processes. ISO 9000 emphasizes customer satisfaction, process efficiency, and continual improvement, helping organizations enhance product and service quality, meet regulatory requirements, and achieve operational excellence.	ISO 9000 is applied by organizations seeking to establish and maintain effective quality management systems. It is particularly relevant for organizations in industries where quality and consistency are critical, such as manufacturing, healthcare, and service sectors.
Six Sigma	Six Sigma is a data-driven methodology for process improvement and variation reduction within organizations. It aims to improve quality, efficiency, and customer satisfaction by systematically identifying and eliminating defects or errors in processes. Six Sigma uses a structured approach, including Define, Measure, Analyze, Improve, and Control (DMAIC) phases, to drive continuous improvement and achieve measurable results. By focusing on statistical analysis and root cause identification, Six Sigma helps organizations achieve operational excellence and customer-centricity.	Six Sigma is applied when seeking to reduce defects, errors, or variation in processes within organizations. It is commonly used in manufacturing, service, and healthcare industries to improve quality, streamline operations, and enhance customer experiences.
Lean Manufacturing	Lean Manufacturing, also known as Lean Production or Lean Management, is a systematic approach to eliminating waste and maximizing value within manufacturing processes. It originated from the Toyota Production System (TPS) and emphasizes principles such as continuous improvement, waste reduction, pull-based production, and respect for people. Lean methodologies aim to optimize efficiency, flexibility, and quality by eliminating non-value-added activities, standardizing processes, and empowering employees to drive improvement.	Lean Manufacturing is applied in manufacturing environments to improve productivity, reduce lead times, and enhance quality by eliminating waste and streamlining processes. It is particularly relevant for organizations seeking to improve efficiency, flexibility, and responsiveness to customer demand.
Total Quality Management (TQM)	Total Quality Management (TQM) is a management philosophy and methodology focused on continuous improvement, customer satisfaction, and employee involvement. It emphasizes the importance of quality in all aspects of organizational activities, from product design to customer service delivery. TQM principles include customer focus, continuous improvement, employee empowerment, process optimization, and fact-based decision-making. By fostering a culture of quality and excellence, TQM helps organizations enhance competitiveness, innovation, and stakeholder value.	Total Quality Management (TQM) is applied when seeking to embed quality principles and practices throughout an organization. It requires commitment from leadership, engagement from employees, and a systematic approach to quality improvement across all functions and processes.
Theory of Constraints (TOC)	The Theory of Constraints (TOC) is a management philosophy and methodology for identifying and overcoming bottlenecks, constraints, or limitations within organizations. It posits that every system has at least one constraint that limits its performance and that focusing on these constraints is essential for improving overall system effectiveness. TOC advocates for a systematic approach to identifying, exploiting, and elevating constraints to optimize organizational performance.	The Theory of Constraints (TOC) is applied when addressing operational inefficiencies, improving throughput, and optimizing resource utilization within organizations. It helps leaders identify and prioritize areas for improvement, implement targeted interventions, and achieve breakthrough results in performance improvement.
Kaizen	Kaizen, which means “continuous improvement” in Japanese, is a philosophy and methodology focused on making incremental, continuous improvements to processes, products, or services. It emphasizes a bottom-up approach to improvement, with employees at all levels actively participating in identifying problems, generating ideas, and implementing solutions. Kaizen encourages small, incremental changes over time, rather than large-scale, disruptive transformations, to achieve sustainable improvement and foster a culture of continuous learning and innovation.	Kaizen is applied in organizations seeking to foster a culture of continuous improvement, empower employees, and drive incremental changes to enhance efficiency, quality, and customer satisfaction. It is particularly relevant for organizations in manufacturing, service, and healthcare sectors where operational excellence and customer-centricity are critical.
Hoshin Kanri	Hoshin Kanri, also known as Policy Deployment or Strategic Deployment, is a strategic planning and management methodology that aligns organizational objectives, strategies, and resources to drive performance improvement and goal attainment. It involves cascading strategic goals and initiatives from top management to frontline employees, fostering alignment, accountability, and focus throughout the organization. Hoshin Kanri emphasizes a systematic approach to strategic planning, execution, and review, enabling organizations to adapt to changing conditions, prioritize resources, and achieve strategic objectives effectively.	Hoshin Kanri is applied in organizations seeking to translate strategic vision into actionable plans, align organizational activities with strategic objectives, and drive performance improvement and goal attainment. It helps leaders foster alignment, engagement, and accountability across all levels of the organization, driving collective effort towards achieving strategic priorities.
Agile Methodology	Agile Methodology is an iterative, incremental approach to software development and project management that emphasizes flexibility, collaboration, and customer responsiveness. It originated from the Agile Manifesto, which values individuals and interactions over processes and tools, working software over comprehensive documentation, customer collaboration over contract negotiation, and responding to change over following a plan. Agile methodologies, such as Scrum, Kanban, and Extreme Programming (XP), promote adaptive planning, self-organizing teams, continuous improvement, and rapid delivery of value to customers.	Agile Methodology is applied in software development, project management, product development, and other contexts where flexibility, responsiveness, and collaboration are essential for delivering value to customers and adapting to changing requirements. It helps teams respond to customer feedback, embrace change, and deliver high-quality products or services iteratively and incrementally.
Design Thinking	Design Thinking is a human-centered approach to innovation, problem-solving, and creative thinking that emphasizes empathy, experimentation, and iteration. It involves a multidisciplinary process of understanding user needs, ideating potential solutions, prototyping and testing concepts, and iterating based on feedback. Design Thinking encourages a mindset of curiosity, collaboration, and user-centricity, enabling organizations to address complex challenges, generate novel ideas, and create meaningful solutions that resonate with users.	Design Thinking is applied in product design, service innovation, process improvement, and organizational change initiatives to foster creativity, empathy, and user-centricity. It helps organizations understand user needs, identify opportunities for innovation, and develop solutions that meet user expectations and drive value creation.