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. 1989—Milliken & Co. and Xerox Corp. Business Products and Systems

. 1988—Motorola Inc., Commercial Nuclear Fuel Division of Westinghouse

Electric Corp., and Globe Metallurgical Inc.
When were the education and health care categories established?

Both categories were introduced in 1999. Since then, a total of 66 applications have been submitted in the education category and 61 in the health care category.
Any for-profit or not-for-profit public or private organization that provides educational or health care services in the United States or its territories is eligible to apply for the award. That includes elementary and secondary schools and school districts; colleges, universities, and university systems; schools or colleges within a university; professional schools; community colleges; technical schools; and charter schools. In health care, it includes hospitals, HMOs, long-term-care facilities, health care practitioner offices, home health agencies, health insurance companies, or medical/dental laboratories.
As in the other three categories, applicants must show achievements and improvements in seven areas: leadership; strategic planning; customer and market focus (for education: student, stakeholder, and market focus; for health care: focus on patients, other customers, and markets); information and analysis; human resource focus (for education: faculty and staff focus; for health care: staff focus); process management; and business results
(for both education and health care: organizational performance results).
Many education and health care organizations are using the Baldrige criteria to good effect. For example:

. The New Jersey Department of Education permits school systems to use the New Jersey Quality Achievement Award criteria—based on the

Baldrige Award criteria—as an alternative to its state assessment criteria. Other states are considering a similar approach.

. The National Alliance of Business and the American Productivity and

Quality Center have developed the Baldrige In Education Initiative, a national program to improve the management systems of education organizations and educational outcomes.

. In April 2000, the National Education Goals Panel (NEGP) held a nationwide teleconference, “Creating a Framework for High Achieving

Schools,” to focus on the Baldrige criteria in education. In the foreword to a report issued in conjunction with the teleconference, then-Governor Tommy G. Thompson of Wisconsin and 2000 chair for the

NEGP, said the Baldrige criteria for education “can provide educators with a framework and strategies for improving their schools and helping all children to reach high standards.”

. At the teleconference, Bob Chase, president of the National Education

Association (NEA), said, “The Baldrige process and what I call ‘new unionism’ are a quality match. Most crucially, NEA’s new unionism and the Baldrige process share the same bottom line, improving student achievement.”

. Dr. Michael Wood, CEO, Mayo Foundation and Clinic, hosted a Baldrige

Health Care Summit on June 29, 2000, involving 10 leading health care institutions in the United States.

. Special sessions on Baldrige in health care were held at the Institute for Health Care Improvement conferences in December 1999 and December

2000.

. Motorola University hosted 120 health care leaders for a one-week course on Baldrige and Quality Improvement in Health Care in February

2001.

. Richard Norling, CEO, Premier Inc., a leading distributor of health care supplies, is serving as president of the private-sector Baldrige

Foundation during 2001.
Why are categories in education and health care needed?

Since its creation in 1987, the Malcolm Baldrige National Quality Award has played an important role in helping thousands of U.S. companies improve not only their products and services, their customers’ satisfaction, and their bottom line, but also their overall performance.
Now, organizations in other sectors vital to the U.S. economy—education and health care—are recognizing that the Baldrige Award’s tough performance excellence standards can help stimulate their improvement efforts as well.
Just as it has for U.S. businesses, a Baldrige Award program can help these organizations improve performance and foster communication, sharing of
“best practices,” and partnerships among schools, health care organizations, and businesses.
How are recipients selected?

Organizations that are headquartered in the United States may apply for the award. Applications for the award are evaluated by an independent Board of
Examiners composed of primarily private-sector experts in quality and business. Examiners look for achievements and improvements in all seven categories. Organizations that pass an initial screening are visited by teams of examiners to verify information in the application and to clarify questions that come up during the review. Each applicant receives a written summary of strengths and areas for improvement in each area addressed by the criteria.
“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?

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