This paper examines the Malcolm Baldrige National Quality Award, a U.S. government program established in 1987 to promote quality and productivity among American organizations. Using Branch-Smith Printing Division's 2002 award as a case study, the paper analyzes how this small, family-owned printing company in Fort Worth, Texas, achieved excellence across seven core criteria: leadership, strategic planning, customer and marketplace focus, measurement and knowledge management, human resources, process management, and organizational performance. The paper demonstrates how Branch-Smith's systematic approach to quality improvement, employee satisfaction, data-driven decision-making, and customer service exemplifies the award's core values and serves as a model for other organizations.
The Malcolm Baldrige National Quality Award is a U.S. national award created by Public Law 100-107, which became law on August 20, 1987. The Award Program is part of Public Law 100-107 and aims to create a public-private partnership. Primary support for the program comes from the Foundation for the Malcolm Baldrige National Quality Award, established in 1988. The award is named after Malcolm Baldrige, who served as Secretary of Commerce from 1981 until his tragic death in a rodeo accident in 1987. His managerial excellence contributed to long-term improvements in the efficiency and effectiveness of government. (The Malcolm Baldrige National Quality Improvement Act of 1987 – Public Law 100-107)
The national quality award program is expected to help improve quality and productivity in several ways: by stimulating American companies to improve quality and productivity through the pride of recognition and the competitive edge that comes with increased profits; by recognizing the achievements of companies that improve the quality of their goods and services and providing an example for others; by establishing guidelines and criteria for performance that can be used by business, industrial, governmental, and other organizations to evaluate their own quality improvement activities; and by providing guidance for American organizations on how to manage for high quality by making detailed information available about the methods used by winning organizations to transform their cultures and attain excellence. (The Malcolm Baldrige National Quality Improvement Act of 1987 – Public Law 100-107)
In 2002, the award was given to Branch-Smith Printing Division, based in Fort Worth, Texas. This is one of two divisions of Branch-Smith, Inc., a fourth-generation, family-owned business. Aaron Smith founded the organization in 1910. Aaron was born without arms but learned to write and type with his toes. Today the organization employs 68 full-time employees and specializes in a wide variety of turnkey services for its customers, including designing, printing, binding, and mailing. All activities are related to sheet-fed printing of multi-page bound materials. Their products include publications, magazines, catalogs, directories, and books. In 2001, Branch-Smith Printing's sales exceeded $10 million. (Malcolm Baldrige National Quality Award 2002 Award Recipient, Small Business Category: Branch-Smith Printing Division)
The company uses a comprehensive strategic planning process that incorporates continuous improvement throughout the entire organization. The active Management Review Team (MRT) of Branch-Smith establishes and assesses the organization's direction, regularly reviews key measures, takes appropriate corrective actions, and reviews the progress of Action Plans and Quality Improvement Process teams. The MRT also reviews all suggestions for improvement, customer complaints, and non-conformance submissions from supplier and internal groups in order to identify the best approaches for improvement. These activities ensure timely review of outcomes and encourage communication, involvement, and accountability from the lowest level of workers to top leadership. (Malcolm Baldrige National Quality Award 2002 Award Recipient, Small Business Category: Branch-Smith Printing Division)
The printing industry is highly competitive, with more than 45,000 companies across the country and over 1,000 in the Dallas/Fort Worth area alone competing for business. To secure sufficient business, Branch-Smith Printing has relied on research, including the McKinsey landmark study on the printing industry. The organization's aim was to understand its primary customer base, which was found to be a select niche market whose printing needs are too small for large competitors but are a perfect fit for Branch-Smith Printing's core competencies. For this select group of customers, Branch-Smith Printing promotes expert solutions by leveraging cost advantages normally associated with web press operations while also capitalizing on its specialized sheet-fed printing capabilities. (Malcolm Baldrige National Quality Award 2002 Award Recipient, Small Business Category: Branch-Smith Printing Division)
Branch-Smith Printing now serves over 160 customers, growing from 91 in 1998. Approximately 85% of customers are located in the Dallas/Fort Worth area. The company stands apart from its competitors through its special commitment to customer care, achieved through a systematic customer complaint process, customer satisfaction surveys, regular meetings with key customers, individual customer plans, and an online GoldMine database used to understand and fulfill each customer's particular requirements. The company has also developed supplier partnership processes that benefit suppliers, customers, and Branch-Smith Printing alike by reducing costs and making better use of available resources. The company actively monitors industry trends and maintains a leadership position in the market through participation in industry associations. (Malcolm Baldrige National Quality Award 2002 Award Recipient, Small Business Category: Branch-Smith Printing Division)
Branch-Smith Printing makes extensive use of databases and software to improve its processes. This is unusual for small businesses but is a central part of its strategy for delivering excellent customer service at the lowest possible cost. To this end, the company has invested in developing databases and purchasing software to gather critical data about various processes that affect customer service, production, continuous improvement, and decision-making. One example is the Quality Information Database — a relational database that integrates key data on facility improvements, customer complaints, and supplier and internal non-conformance issues into a single location. Data from this tool is regularly used to document and track progress. (Malcolm Baldrige National Quality Award 2002 Award Recipient, Small Business Category: Branch-Smith Printing Division)
Keeping employees satisfied is essential to the company's success. To encourage employee satisfaction and identify areas of concern, the company conducts an annual employee satisfaction survey. Survey results show positive trends in efforts to improve the work atmosphere. Overall employee satisfaction, which stood at 67% in 1996, rose to 86% in 2001 — approaching the 87% benchmark set earlier by a Baldrige Award recipient in the small business category. Workplace safety has also improved: recorded accidents have trended positively over seven years, falling from 16 per 100 employees in 1996 to 2.71 in 2002. Additionally, voluntary employee turnover dropped from a high of 43.7% in 1996 to 7.75% in 2002. (Malcolm Baldrige National Quality Award 2002 Award Recipient, Small Business Category: Branch-Smith Printing Division)
"Data systems, employee satisfaction, and workflow software"
"Growth results and Baldrige core values alignment"
"Sources cited in the paper"
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