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For Organizations: Assessment Benefits

Organization assessments are used for learning and improvement. Much like an annual health physical, this tool helps managers better understand what is working well and on what they should be focusing their improvement efforts. Assessments also are effective at helping communicate priorities with various stakeholders and with monitoring progress over time.

But the real value of an assessment is its ability to improve performance – to drive tangible organizational results. And a few studies have proven the value of an assessment and systemic management framework.

Consider the evidence from one study in 2001 (footnote 1). Organizations that won their state quality award compared to a control group of matched companies show superior performance:

  • operating profit margins of 46.8% versus 2.7%,
  • return on assets of 10.3% versus -5.5%, and
  • return on equity of 18.7% versus -5.9%.

In another similar study in 1999 (footnote 2), award winners show tremendous growth over a control group of similar organizations. They show:

  • 58% faster growth in stock price appreciation,
  • 116% faster growth in sales,
  • 114% faster growth in total assets, and
  • 229% growth in employees.

In fact, organizations that use an assessment, show high levels and increasing trends in a variety of indicators – financial, customer/student/patient/citizen/stakeholder, employee, and operational.

Senior leaders from a variety of organizations have seen the value of our assessment, as represented by these testimonials:

"It amazes me that U.S. businesses spend so much money on 'how to' books and coursework to teach leaders how to build successful organizations. My recommendation: implement the Baldrige-based Criteria into your business. No other single document can help build a long-term successful organization." -- Jerry R. Rose, President, Sunny Fresh Foods, Monticello 

"Applying for the Baldrige Award helped us set a pace for our quality improvement efforts that we otherwise wouldn’t have maintained. It created an accountability through the Award cycles that moved us faster and further than we could have done on our own. – Jeff Pope, Partner, Custom Research, Golden Valley

For more information on our assessment process and how it can benefit your organization, please contact the Council.

1) Mark Wrolstad and Thomas Krueger, “Study Shows that Quality Pays Winners,” Summer 2001.
2) Kevin B. Hendricks and Vinod R. Singhal, “Don’t Count TQM Out,” Quality Progress, April 1999

 
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