Linking firm performance to the Malcolm Baldrige National Quality Award implementation effort using multiattribute utility theory

Abstract

Executives are searching for ways to deliver consistent improvements in productivity and profitability while addressing economic realities. One initiative that has been discovered by many organizations is the integration a quality process into their or ganization that is based on the Malcolm Baldrige National Quality Award (MBNQA). Many studies have been done showing that award winning companies tend to out perform peers and competitors, yet many managers are reluctant to under take the large initiative required to work toward the award. This reluctance may stem from the belief that the reported benefits are not those that are important for managers to justify the effort. The purpose of this research is to begin an exploratory study that examines the expectations of company managers, executives, and other professionals regarding the types of firm performance and returns that would be needed to justify undertaking the MBNQA process. The results showed that while financial performance of the firm is the strongest justification managers consider, and that while their expectations for improved financial performance are some what high, the financial returns are certainly not out of the realm of normal expectations for returns from other projects.