Return on Investment

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The City’s cost for the Baldrige Award was generously supplemented in the amount of $43,100 by the Germantown Area Chamber of Commerce. “The Chamber was glad to help fund the City's Baldrige application,” said Chamber President/CEO Janie Day. “We've seen the great work they do, and honestly, their commitment to excellence helps the Chamber do its job more effectively. We couldn’t be any happier for the City,” she added.

The City costs are as follows:

Intent to apply and application fee

$10,100

Site visit (eight examiners and one NIST representative on site for one week)

$33,000

Consulting services

$12,900

 

The value of the outside expertise and feedback is estimated as follows:

Approximately 1,000 hours of Independent Board of Examiners team services (at $100 per hour) for application review, scoring, site-visit prep, on-site examination and final report preparation

$100,000

Feedback report development, editing and assessment (approximately 100 hours at $100 per hour including Baldrige team lead, NIST editors and judges panel)

$ 10,000

In addition, professors from Dartmouth College and the University of North Carolina at Greensboro surveyed the 273 Malcolm Baldrige National Quality Award applicants between 2006 and 2011 about the value of the Baldrige criteria on three levels: cost savings, customer satisfaction and financial gain.[1] They estimated that the benefits of using Baldrige outweigh the overall cost of the Baldrige Performance Excellence Program by a ratio of 820:1. In their report documenting the study, the professors explained that the figure may be on the conservative side. “If the social costs were compared to the benefits for the economy as a whole, the benefit-to-cost ratio would be considerably higher,” they wrote.

For more information about the Malcolm Baldrige National Quality Award, visit https://asq.org/quality-resources/malcolm-baldrige-national-quality-award.

 

[1] Albert N. Link and John T. Scott, “Economic Evaluation of the Baldrige Performance Excellence Program,” NIST, Dec. 16, 2011, http://bit.ly/baldrige5.