Describe HOW YOUR ORGANIZATION DETERMINES REQUIREMENTS, EXPECTATIONS, and PREFERENCES of CUSTOMERS and MARKETS to ensure the continuing relevance of your products and services and to develop new business OPPORTUNITIES.

Within your response, include answers to the following questions:

3.1a. Customer and Market Knowledge

(1) HOW DO YOU IDENTIFY CUSTOMERS, CUSTOMER groups, and MARKET SEGMENTS?

HOW DO YOU DETERMINE WHICH CUSTOMERS, CUSTOMER GROUPS, and MARKET SEGMENTS to PURSUE for current and future products and services?

HOW do you include CUSTOMERS of competitors and other potential CUSTOMERS and markets in this determination?

(2) HOW do you listen and LEARN to determine KEY CUSTOMER requirements, needs, and changing expectations (including PRODUCT and SERVICE FEATURES) and their relative IMPORTANCE to CUSTOMERS’ purchasing or relationship DECISIONS?

HOW do your determination methods vary for different CUSTOMERS or CUSTOMER groups?

HOW do you use relevant information and feedback from current and former CUSTOMERS, including marketing and sales information, CUSTOMER loyalty and retention data, win/loss ANALYSIS, and COMPLAINT DATA for PURPOSES of product and service planning, marketing, making PROCESS IMPROVEMENTS, and developing new business opportunities?

HOW do you use this information and feedback to become more CUSTOMER focused and to better SATISFY CUSTOMER NEEDS and desires?

(3) HOW do you keep your listening and LEARNING methods current with business needs and directions, including changes in your marketplace?

Notes:

N1. Your responses to this Item should include the CUSTOMER groups and market SEGMENTS identified in P.1b(2).

N2. If your products and services are sold or delivered to end-use CUSTOMERS via other businesses or organizations (e.g., those businesses that are part of your “VALUE chain” such as retail stores, dealers, or local distributors), CUSTOMER groups (3.1a[1]) should include both the end users and these intermediate organizations.

N3. “PRODUCT and SERVICE FEATURES” (3.1a[2]) refers to all the IMPORTANT characteristics of products and services and to their PERFORMANCE throughout their full life cycle and the full “consumption chain.” This includes all CUSTOMERS’ purchase and interaction experiences with your organization that influence purchase and relationship DECISIONS. The focus should be on features that affect CUSTOMER preference and loyalty—for example, those FEATURES that differentiate your products and services from competing offerings or other organizations' services. Those FEATURES might include price, reliability, VALUE, delivery, timeliness, ease of use, requirements for hazardous materials use and disposal, CUSTOMER or technical support, and the sales relationship. KEY PRODUCT and SERVICE FEATURES and purchasing and relationship DECISIONS (3.1a[2]) might take into account HOW transactions occur and factors such as confidentiality and security.

N4. Listening and LEARNING (3.1a[2]) might include gathering and integrating survey data, focus group findings, Web-based data, and other data and information that affect CUSTOMERS’ purchasing and relationship DECISIONS. Keeping your listening and LEARNING methods current with business needs and directions (3.1a[3]) also might include use of newer technology, such as Web-based data gathering.

N5. For additional considerations on products, services, customers, and the business of nonprofit organizations, see ITEM P.1, Notes 5 and 6, and ITEM P.2, Note 7.

For additional description, see 3.1 Customer and Market Knowledge Description.

Describe your organization’s GOVERNANCE system.

Describe HOW SENIOR LEADERS communicate with employees and encourage HIGH PERFORMANCE.

Within your response, include answers to the following questions:

1.1a VISION and VALUES Senior Leadership direction

(1) HOW do SENIOR LEADERS set and deploy organizational VISION short- and longer-term directions and expectations and VALUES?

HOW do SENIOR LEADERS communicate DEPLOY your organization’s VISION and VALUES through your LEADERSHIP SYSTEM, to all employees, to KEY suppliers and PARTNERS, and to CUSTOMERS, as appropriate?

HOW do their personal actions reflect a commitment to the organization’s VALUES?

HOW do SENIOR LEADERS include a focus on creating and balancing VALUE for CUSTOMERS and other STAKEHOLDERS in their PERFORMANCE expectations?

(2) HOW do SENIOR LEADERS create promote an environment that fosters and requires legal and ETHICAL BEHAVIOR?

(3) HOW do SENIOR LEADERS create a SUSTAINABLE organization?

HOW do SENIOR LEADERS create an environment for EMPOWERMENT PERFORMANCE improvement, accomplishment of STRATEGIC OBJECTIVES, INNOVATION, and ORGANIZATIONAL AGILITY?

HOW do they create an environment for organizational and employee LEARNING?

HOW do they personally participate in succession planning and the development of future organizational leaders?

1.1b Communication and Organizational PERFORMANCE Review

(1) HOW do SENIOR LEADERS communicate with, empower, and motivate all employees throughout the organization?

HOW do SENIOR LEADERS ensure encourage frank, TWO-WAY COMMUNICATION on these topics throughout the organization?

HOW do SENIOR LEADERS take an active role in employee reward and recognition to reinforce HIGH PERFORMANCE and a CUSTOMER and business focus?

(2) HOW do SENIOR LEADERS create a focus on action to accomplish the organization’s objectives, improve PERFORMANCE, and attain your VISION?

HOW do SENIOR LEADERS include a focus on creating and balancing VALUE for CUSTOMERS and other STAKEHOLDERS in their organizational PERFORMANCE expectations?

HOW do the senior leaders review organizational PERFORMANCE and capabilities?

HOW do they use these reviews to assess organizational success, competitive PERFORMANCE, and progress relative to short- and longer-term GOALS?

HOW do they use these reviews to assess your organizational ability to address organizational needs?

What are the KEY PERFORMANCE MEASURES regularly reviewed by your SENIOR LEADERS?

What are your KEY recent PERFORMANCE review findings?

HOW do SENIOR LEADERS translate organizational PERFORMANCE review findings into priorities for continuous and BREAKTHROUGH IMPROVEMENT of KEY business RESULTS and into opportunities for INNOVATION?

HOW are these priorities and opportunities DEPLOYED throughout your organization?

When appropriate, HOW are they DEPLOYED to your suppliers and partners to ensure organizational ALIGNMENT?

Notes:

N1. Organizational VISION (1.1a[1]) should set the context for STRATEGIC OBJECTIVES and ACTION PLANS, which are described in Item 2.1 and Item 2.2.

N2. A SUSTAINABLE organization (1.1a[3]) is capable of addressing current business needs and possesses the AGILITY and strategic management to prepare successfully for its future business and market environment.

In this context, the concept of INNOVATION includes both technological and organizational INNOVATION to succeed in the future.

N3. A focus on action (1.1b[2]) considers both the people and the hard assets of the organization. It includes ongoing improvements in PRODUCTIVITY that may be achieved through eliminating waste or reducing CYCLE TIME, and it might use techniques such as Six Sigma and Lean Production. It also includes the ACTIONS to accomplish the organization’s STRATEGIC OBJECTIVES.

N4. Your organizational PERFORMANCE RESULTS should be reported in Item 7.1, Item 7.2, Item 7.3, Item 7.4, Item 7.5, and Item 7.6.

N1. Organizational directions (1.1a[1]) relate to creating the VISION for the organization.

N2. SENIOR LEADERS’ organizational PERFORMANCE reviews (1.1c) should be informed by organizational PERFORMANCE ANALYSES described in Item 4.1b and guided by STRATEGIC OBJECTIVES and ACTION PLANS described in Item 2.1 and Item 2.2. SENIOR LEADERS’ organizational PERFORMANCE reviews also might be informed by internal or external Baldrige assessments.

Item responses are assessed by considering the Criteria Item requirements; your KEY business factors presented in your ORGANIZATIONAL PROFILE; and the MATURITY of your APPROACHES, breadth of DEPLOYMENT, and strength of your improvement PROCESS and RESULTS relative to the SCORING SYSTEM. Refer to the SCORING SYSTEM.

For additional description of this Item, see 1.1 Senior Leadership Item Description.

Criteria Additions Links: 1.1 - 1.2 - 2.1 - 2.2 - 3.1 - 3.2 - 4.1 - 4.2 - 5.1 - 5.2 - 5.3 - 6.1 - 6.2 - 7.1 - 7.2 - 7.3 - 7.4 - 7.5 - 7.6 - P.1 - P.2