Quality management system based on the Baldrige Criteria for Performance Excellence was introduced and applied as a guideline for the company to become a leading company in this era of global competition. There are seven criteria are assessed and used as a reference in managing the company’s performance, namely: Leadership, Strategic Planning, Customer Focus, Measurement Analysis and Knowledge Management, Workforce Focus, Process Management, Results. These seven criteria are built on 11 core values.
1. Visionary Leadership
This value is related to how senior leaders guide the company in establishing and disseminating corporate values, determine the direction of the company, performance expectations, focus on customers and other stakeholders, creating a climate of innovation, empowerment and learning. This value also related to how companies implement Good Corporate Governance (GCG) and social responsibility, with indicators such as fiscal accountability (internal and external), ethical behavior, level of stakeholder confidence in corporate management, and support for key communities.
2. Customer-Driven Excellence.
Value and customer satisfaction is influenced by many factors ranging from the purchase experience, ownership, and services received. Quality and therefore the company’s performance will be judged by the customer. Therefore, we must be responsible for features and characteristics of products and services can contribute to customer value. Therefore we focus on how markets and customers, and knowledge of markets and customer need to be improved. This will show how we understand the market and the customer’s voice, how we build relationships to acquire, satisfy and retain customers, handling complaints, and develop new opportunities. This all needs of our continually improve.
3. Organizational and Personal Learning.
Organizational learning involves continuous improvement of the approaches available and adaptation to change, leading towards new goals or new approaches.
Learning is the only way for us to continue to improve competence. This will be very useful to increase the value to customers, reducing errors, defects, and waste and can raises opportunities of new business. Learning resources can be creative ideas from employees, research and development, customer input and dissemination practices work best, and benchmarking.
4. Valuing Employees and Partners.
The success of the company will also greatly depend on increased knowledge, skills, creativity, and motivation of employees and their partners.
5. Agility
Success in achieving victory in this hypercompetitive market does need agility, i.e. a capacity to be able to change quickly and flexibility. This clearly requires an organizational structure that is simpler and more efficient in the decision making process, in addition to also be in desperate need of competent employees who have acquired skills through the multifunctional cross-functional training and empowered.
6. Focus on the Future. This means requires an understanding of the factors of short-term and long-term business and market influence. Clear corporate vision requires a very strong orientation to the future and the desire to give long-term commitment to the key parties concerned (stakeholders).
7. Managing for Innovation. Companies must be managed and directed so that innovation becomes part of the work culture and integrated into daily work. Innovation can be defined here as significant changes to improve products, services, and processes of the organization and create new value for stakeholders. These innovations will lead the organization into a new dimension to our performance, and related to all significant aspects of the organization as a whole.
8. Management by Fact.
Least successful companies need to be measured and analyzed the results, which will provide important data and information about key processes, outputs, and business results. These performance measurements will include customer, product, and service performance; comparison-comparison operations, markets, and competitive performance; and suppliers, employees, and financial costs.
9. Public Responsibility and Citizenship.
The leaders of the organization should emphasize their responsibilities to the public and need to practice the behavior as good citizens. Effective planning must be able to prevent the causes of the problem, providing a rapid response in case of problems, and make the information becomes readily available and support and sustain awareness, safety and public trust in companies.
10. Focus on Result and Creating Value.
Performance measurement companies need to focus on key results to create and balance value for its stakeholders – customers, employees, suppliers and partners, shareholders, and society.
11. Systems Perspective.
MBPE criteria provide a systems perspective for the management of the company towards performance excellence (performance excellence). Systems perspective means managing the company as a whole, as well as their components, to the excellence and success.
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