“The application and review process for the Baldrige Award is the best, most cost-effective and comprehensive business health audit you can get,” says Arnold Weimerskirch, former chair of the Baldrige Award panel of judges and vice president of quality, Honeywell, Inc.

Does quality pay? Studies by NIST, universities, business organizations, and the U.S. General Accounting Office 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. For example, NIST has tracked a hypothetical stock investment in Baldrige Award winners and applicants receiving site visits. The studies have shown that these companies soundly outperform the Standard & Poor’s 500.

Is it tougher for small organizations to receive the award? The Baldrige Award’s small business recipients have proven that any U.S. organization can improve by using the criteria’s performance excellence framework. But, given the importance of smaller businesses to the U.S. economy, NIST is mapping out ways to strengthen awareness of the award program and criteria among these organizations.

Can only U.S. organizations receive the award? Any for-profit organization headquartered in the United States or its territories may apply for the award, including U.S. subunits of foreign companies.

Do the award criteria take into account an organization’s financial performance? Yes. The criteria include many factors that contribute to financial performance, including business decisions and strategies that lead to better market performance, gains in market share, and customer retention and satisfaction. Organizations are urged to use financial information, including profit trends, in analyzing and reporting on improved overall performance and to look for the connection between the two.

Does the award amount to a product or service endorsement for the award recipients? No. The award is given because an organization has shown it has an outstanding system for managing its products, services, human resources, and customer relationships. As part of the evaluation, an organization is asked to describe its system for assuring the quality of its goods and services. It also must supply information on quality improvement and customer satisfaction efforts and results. That does not mean that a recipient’s products or services are endorsed.

Why are the Baldrige Award recipients asked to share their successful strategies? One of the main purposes of the award is to pass on information about the recipient’s performance excellence strategies that other organizations can tailor for their own needs. Representatives from the award recipients willingly have shared their organizations’ performance strategies and methods with thousands.

To what extent are they asked to share their strategies? The managers of each recipient must decide how much time and effort to devote to activities such as speaking engagements and tours of facilities. The requirements of the award program are minimal. Recipients are asked to participate in the award’s annual conference and several co-sponsored regional conferences, to provide basic materials to those who request it on their organization’s performance strategies and methods, and to answer news media inquiries.

Do advertising and publicity diminish the image and prestige of the award? The law establishing the award states that an award recipient may publicize its receipt of such award and use the award in its advertising. Promoting public and business awareness of quality improvement is one of the prime goals of the program, and advertising is one way to meet this goal. Guidelines help organizations assure their advertising is appropriate in representing their Baldrige Award recognition.

Are organizations simply chasing after the award and ignoring the lessons of performance improvement? The perception by some that receiving the award is the goal of U.S. organizations is not supported by the facts. Says Earnest Deavenport, chairman and chief executive officer of Eastman Chemical Company, “Eastman, like other Baldrige Award winners, didn’t apply the concepts of total quality management to win an award. We did it to win customers. We did it to grow. We did it to prosper and to remain competitive in a world marketplace.” Thousands of organizations are using Baldrige Award performance excellence criteria to assess their organization and to improve. The program has helped to stimulate an amazing movement to improve U.S. organizations, including companies; academic institutions; and federal, state, and local government agencies.

If this is a federal government program, why are organizations charged a fee to apply? Federal funding for this program is about $5 million annually and is used by NIST to manage the program. The application fees are charged to cover expenses associated with distribution and review of applications and development of feedback reports. The application and review process is considered to be a very cost-effective and comprehensive business health audit. For an application fee ranging from $5,000 for large organizations to $500 for non-profit education institutions, organizations receive at least 300 hours of review by a minimum of eight business and quality experts. Site-visited organizations receive over 1,000 hours of in-depth review. Every applicant receives an extensive feedback report highlighting strengths and areas to improve. An article in the Journal for Quality and Participation said, “The Baldrige feedback report is arguably the best bargain in consulting in America.”

May an organization hire a consultant to help prepare answers for the Baldrige application? Applicants for the award are asked to supply facts and data to substantiate their claims concerning their management practices. Consultants, including members of the Board of Examiners, may provide services on performance management issues as well as the Baldrige Award process. However, since there are no secret answers or even right or wrong answers to the Baldrige application, the award cannot be received by hiring someone to fill in the blanks.

An organization must show through facts and data that it has a world-class management system in place and that it is continually looking for ways to improve.

As a final check before recommending recipients, members of the Board of Examiners visit the more outstanding candidates for the award. During these site visits, examiners interview employees and review pertinent records and data. The objective is to verify the information provided in the application and to answer questions raised during the board’s review. An organization that hired someone to fill out its application would never make it through this rigorous review if its performance management system was not supported by facts and data.