Chapter
8
I  C 
C  M F ()
154
BALDRIGE AWARD WINNING QUALITY
O   C  M F C
The third category in the Baldrige Award Criteria is Customer and Market Focus. The
model I outlined in Chapter 3 indicates that Item 3.1 is the major input to the Baldrige
system. Well-run organizations target specic groups of customers or markets, learn
everything they can about what is important to those groups of customers, and measure
their satisfaction. This section asks about all of these points. It also focuses on your
approach to building loyalty through strong relationships with preferred customers.
Increasing loyalty from select customers can have a dramatic effect on prots.
According to the 2013/2014 Award Criteria, Category 3, Customer and Market Focus, is
dened as follows:
The customer Focus category asks how your organization engages its customers for long-
term marketplace success, including how your organization listens to the voice of the
customer, builds customer relationships, and uses customer information to improve and to
identify opportunities for innovation. (p. 13)
Figure8.1 is a macro process model of an organization that shows where customers
and their satisfaction are assessed. Customer satisfaction is measured after the external
customers have purchased the products or services produced by the organization. As you
can see in the gure, this occurs at point 8, and this information is then fed back to the
organization to aid them in producing better performing products and services.
The satisfaction level of internal customers is not addressed in Category 3. This category
relates only to external customer satisfaction.
This chapter describes each of the two Examination Items in this category of the Award
Criteria. As in previous chapters, each section begins with a shadowed box, containing
the Examination Item, the point value, and any applicable Notes,
*
Areas to Address
*
Item Notes that apply to a specic Area to Address are appropriately listed in the box containing
that Area.
2. Input Measurement
and Feedback
1 .Inputs
4. Process Measurement
and Feedback
6. Output Measurement
and Feedback
8. Customer Satisfaction
Measurement and Feedback
3. Processing System 5. Outputs 7. Customers
24
68
• People
• Raw Materials
• Components
• Customer
• Capital
• Design of Products/
Services
• Production of Products
• Performance of Services
• Delivery of Products/
Services
• Products
• Services
• Documentation
• Results
• Customer Needs
Satisfied
• Customer Problems
Solved
• Customer
Requirements Met
Figure 8.1: Macro Process Model of an Organization
155
INTERPRETING THE CRITERIA FOR CUSTOMER AND MARKET FOCUS (3)
falling under that item follow in a lighter shadowed box. In the upper right corner of
each Area to Address box is an indication [in brackets] of whether the Area pertains to
approach, deployment, or results. All denitions and information appearing within these
boxes are taken directly from the Baldrige criteria. Following each Area to Address is an
explanation dening what the examiners are looking for in assessing your application.
Next, I have supplied a list of indicators or evaluation factors that will assist you in
interpreting the criteria and in preparing your application.
3.1 VOICE OF THE CUSTOMER: HOW DO YOU OBTAIN
INFORMATION FROM YOUR CUSTOMERS? (40 PTS.)
Describe how you listen to your customers and gain information on their satisfaction,
dissatisfaction, and engagement.
NOTES 3.1
The “voice of the customer” refers to your process for capturing customer-related
information. Voice-of-the- customer processes are intended to be proactive and
continuously innovative so that they capture stated, unstated, and anticipated
customer requirements, expectations, and desires. The goal is customer engagement.
In listening to the voice of the customer, you might gather and integrate various types
of customer data, such as survey data, focus group ndings, blog comments and
data from other social media, warranty data, marketing and sales information, and
complaint data that affect customers’ purchasing and engagement decisions.
3.1 For additional considerations on the products and business of nonprot
organizations, see the notes to P.1a(1) and P.2b.
A. CUSTOMER LISTENING
(1) Listening to Current Customers How do you listen to, interact with,
and observe customers to obtain action- able information? How do your
listening methods vary for different customers, customer groups, or market
segments? How do you use social media and Web-based technologies to
listen to customers, as appropriate? How do your listening methods vary

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