- 1 -

Category 5 – Workforce Focus

5.1.a(1) XYZ assesses workforce capacity and capabilities during

steps 8 and 9 of the SPP. After developing strategy and finalizing

annual plans, the budgeting process considers staffing requirements

and allocates positions. Budget constraints are identified and annual

plans are adjusted based on staffing capabilities.

Throughout the year, SLs monitor workforce capacity at the

EMG meeting via the PMD. Resource allocations, project deliverables

and timelines, and potential capacity shortfalls are identified and

addressed.

Workforce requirements necessary to exceed performance

expectations are outlined in all job descriptions. If professional

accreditation or secondary education is required for a position, HR

validates compliance upon hire and with an annual audit. The training

department measures competency through graded evaluations

administered after all classes. When organizational needs change, HR

deploys updated job descriptions, recruiting guidelines, and training

provisions. For example, in 2011 internal customer service evaluations

identified a need for improved math skills among cashiers, so XYZ

added a standardized mathematics test to the job requirements and

deployed to all retail locations.

5.1.a(2) In an effort to reach the widest and most diverse pool of

job candidates, XYZ recruits new workforce members by posting job

openings in WDS Job Help Centers, which are located throughout the

area. XYZ also posts job openings on both general and specialized

employment websites, on the XYZ website, and at State Workforce

Commission one-stop service centers.

Mission integration, or hiring people from within the

populations XYZ serves, is a top priority when filling positions. WDS

case managers review all XYZ open positions for potential matches

with clients and are stationed in the community at organizations like

Townville Resource Center for the Homeless and SafePlace.

XYZ has a set of standardized, multi-lingual, recruiting

materials to maintain consistency of message, values, and

organizational expectations when communicating with potential

workers. To further improve recruitment, XYZ formed a strategic

committee in 2011 to strengthen the recruiting brand, website presence

and collateral materials. XYZ offers a referral bonus which takes

advantage of the personal and professional networks of engaged staff

members to reach high quality candidates who are aligned with the

organization’s MVV.

XYZ uses values-based questions developed by each division

when interviewing applicants to screen potential employees for values

which are in line with those of the organization. In addition, all retail

manager candidates take the Right Path 4&6 leadership assessment

(see glossary); their profiles are compared with those top performing

PCI benchmarks. Additionally, XYZ uses Right Path 4&6 profiles and

Leadership 360 evaluations during Leadership Learning Program

(LLP) class instruction.

The nature of XYZ’s mission results in one of the most diverse

workforces in the region. XYZ is one of the only employers in Central

State who employs people with felony convictions at all levels of the

organization and 48% of XYZ employees are people with disabilities

and other barriers.

XYZ has a standardized on-boarding process for all employees.

All new employees attend an orientation called Company New-hire

University (CNU), where they learn about the history and mission of

PCI and XYZ MVV, culture, policies, procedures, ethics, and strategic

plan. After learning about mission services offered by XYZ, new

employees write brief “elevator speeches” about an aspect of the XYZ

mission so they are prepared in their role as ambassadors in the

community. Following CNU, employees attend job-specific training

required for their position. After 90 days, the employees will return for

an additional day of training which focus on the GLS, SPP, BSC,

safety, and benefits. This session encourages additional two-way

discussion with SLs.

XYZ understands workforce satisfaction and engagement have

a direct influence on organizational performance. XYZ’s long-term

strategic priority to “build a culture of workforce excellence,” which

includes a 2015 goal to be in the top quartile for similarly sized

businesses in the “Best Places to Work in State” survey, reflects this

understanding. Starting with the 2009 strategic plan, XYZ began

administering surveys modeled after the Townville Business Journal’s

“Best Places to Work in Central State” assessment. The results of these

surveys are included on the SL BSC and reflect employee engagement

and satisfaction. XYZ has subsequently had a 28% decrease in

turnover since 2008, aided by the fact that 58% of open non-entry-

level positions are open are filled with internal candidates (figures

7.3.a(1)-1,2). This high level of internal promotion is due to extensive

training requirements, learning plans, and increasing levels of

employee engagement. In 2012, employee engagement was included

in the Company BSC.

5.1.a(3) XYZ manages and aligns the workforce via these key

work system components:

1. Values Based Recruiting and MVV

2. Job Descriptions and Performance Evaluations

3. Strategic and Divisional Plans

4. Company and Divisional BSCs

5. PMD

6. Training (LLP, Learning Plans, CNU)

7. Policies and procedures

8. Satisfaction and Engagement

In 2011, senior leadership was restructured to create the position

of Vice President of Strategic Initiatives, who is responsible for

organizational project management, the PMD, and high-impact

projects.

5.1.a(4) XYZ prepares its workforce for changes in capability and

capacity through its active and diverse training program. Part-time

employees must complete six hours, full-time employees twelve

hours, and supervisors and above must participate in fifteen hours of

training annually. Since 2009, XYZ has spent $283,122 in wages

attributable to training, and has taught 354 non LLP classes in-house.

There are 4 full-time trainers on staff, as well as in-store trainers at all

retail locations. The training staff continuously evaluates programs

based on feedback from participants and uses the SPP to determine

training needs.

E-learning is one of many ways XYZ continues to offer creative

and robust learning opportunities for staff at all levels and ability

within the company. The classes level the playing field for all

employees, giving them the ability to learn in a manner appropriate to

their needs and skills. Visual, auditory and activity-based instruction

guarantees XYZ addresses all categories of learning. Onsite

computers at all retail locations, class-linking via live streaming

- 2 -

capabilities, and availability of stored archives maximize access to

training for employees with mobility barriers. The e-learning courses

build organizational knowledge that enhances employee growth,

productivity, efficiency, teamwork, and promotes MVV.

As an organization committed to providing job opportunities

and resources, XYZ is particularly sensitive to preventing workforce

reductions and is therefore conservative in hiring. XYZ seeks external

funding in the form of grants to fund new positions and deploys cross

training at every level to reduce the effect of workforce reductions if

they should become necessary. For example, in 2011 XYZ

consolidated two warehouses to achieve greater efficiency. The

process for consolidation was planned in the SPP and managed in the

PMD. Key staff were identified for relocation to the new warehouse,

and those who were redundant were retrained to other positions within

the organization so that no jobs were lost and organizational efficiency

was improved (figure 7.1.b(1)-7).

5.1.b(1) Workforce health, safety, security, and accessibility are

critically important to XYZ’s success. Safety begins with job

descriptions that clearly define physical tasks such as lifting or

standing for long periods. Many positions require pre-employment

physicals, background checks, and random drug screenings. All

positions, including those for volunteers, have established procedures

defining expectations for safe conduct. Safety fundamentals are taught

at CNU and volunteer orientation and at 90-day and annual

orientation.

XYZ maintains OSHA certification and CARF accreditation

and performs daily safety checks and monthly safety audits at all

locations. In 2011, as a result of XYZ’s successful retail secret

shopping program, unannounced third party safety audits of each

location began. Both the secret shop and secret safety programs are

linked to a bonus structure though which retail employees are eligible

for up to $100 per month if their store receives perfect scores. The

location manager has one business day to correct any findings on the

safety audit, and trend analysis is performed on all locations. Negative

safety trends are sent to the safety committee for resolution.

Sites are staffed with trained first responders and equipped with

first aid and blood borne pathogen kits. Employees maintain current

first aid and CPR certification.

The safety committee, comprising the Risk Management

department and SLs, analyzes all accidents and makes

recommendations for improvement. This committee is empowered to

enact change, require additional training, purchase safety supplies, and

issue corrective action. XYZ tracks accidents on the Company BSC

and achieved an 8% reduction in accidents in 2011.

At every safety meeting, leaders discuss accessibility concerns

raised by clients, customers and stakeholders, which are published in

an annual accessibility report. Examples of accessibility

improvements in 2011 include a talking microwave, Braille on

vending machines, and evacuation chairs for transporting people

down stairs in case of emergencies in which the elevators become

unavailable.

Kaizen events at every retail location help reduce unnecessary

movement and lifting while ensuring an uncluttered and efficient work

environment by implementing U-shaped work cells and 5S principles.

XYZ focuses on the physical security of the facilities. XYZ

facilities are accessible via security badge and are monitored by DVR-

based security cameras. A licensed security agency may patrol sites

with additional security requirements.

5.1.b(2) XYZ’s offers comprehensive insurance benefits to all full

and part-time employees. These benefits include extensive standard

coverage, wellness visits, vision and dental plans, and prescription

coverage. XYZ offers annual wellness fairs, flu shot reimbursement, a

$100 health and wellness reimbursement for gym memberships or

exercise equipment, and $200 smoking cessation bonus. All XYZ

employees are eligible for a matched 403(b) retirement savings plan

and free retirement planning services. XYZ offers employees paid

GED training and testing as well as $1,000 attainment bonus. All

XYZ employees, volunteers, and CSS temporary staff members are

eligible to participate in one-on-one financial literacy coaching.

As a result of feedback obtained through the employee survey

and the 2010 employee benefits focus group, XYZ has increased

employer contributions to the benefits plan and reduced the end cost to

employees by 50%. The base plan for full-time employees costs as

little as $28 per pay period and includes a $20 co-pay, $5,000

maximum out-of-pocket liability, and dental/vision benefits. In 2011,

XYZ used the results of the employee survey to determine that part-

time employees rated benefit satisfaction low, so one week of PTO per

year was added as a benefit for this segment.

XYZ has an on-site Employee Assistance Program (EAP)

which provides resources on an array of issues affecting employees,

including financial planning, legal assistance, and mental and

emotional health concerns. Emergency loans are available for costs

such as car repairs, utility bills, or security deposits. The loans are

interest free and repaid through payroll deduction in installments.

Employees must sign up for financial counseling when receiving an

emergency loan, which is a free service provided by EAP.

In addition to extensive internal training opportunities, XYZ

reimburses up to $241 per credit hour for any undergraduate or

graduate course. Since 2008, 93 employees have taken advantage of

this tuition reimbursement program. In order to increase accessibility

to learning as designated in the 2012 strategic plan, XYZ is offering

this reimbursement program regardless of course of study and has

expanded this program to all full- and part-time employees.

XYZ offers specific training for its WDS staff. As a Continuing

Education Unit (CEU) provider, XYZ is able to offer Continuing

Education credit for LCSWs, MSWs, and LPCs (see glossary). The

Workforce Development training covers practical skills such as Case-

Note Documentation as well as Ethics, Diversity, and Servant

Leadership. All WDS staff are required to attend Bridges Out of

Poverty training (see glossary) which is taught by an in-house certified

instructor.

5.2.a(1) XYZ determines the key elements that affect workforce

engagement and satisfaction through several platforms, including two-

way communication, suggestion boxes, an internal Facebook page,

and the Best Places to Work in State survey responses.

In 2012, a committee to raise employee engagement will

determine benchmarks and form focus groups to further improve

engagement in response to these survey methodologies and in

alignment with the strategic plan (figure 2.1-2). Gallup® standard

engagement questions on the employee survey will be benchmarked

against other high performing organizations. The results will be

monitored on the Company BSC (figure 4.1-1 & figures 7.2.a(3)-2,3)

In 2011, XYZ surveyed employees to determine the most-used

communication platform other than email. Facebook emerged as an

overwhelming preference, which led to the creation of a private

internal Facebook page. Any employee can join, and posts range from

praise for good service and best practice examples to videos from the

- 3 -

CEO announcing employee morale events. Approximately 25% of

employees have joined this optional group in its first 6 months.

XYZ also uses the Yammer platform to disseminate professional

information internally. Yammer is similar to Facebook but is a private

system which allows for the creation of multiple groups such as

departmental or leadership groups. Yammer is used to share ideas,

discuss trends, or seek input from other groups in real time.

5.2.a(2) Two-way communication is encouraged by XYZ’s daily

meetings, interpersonal communication, social media forums,

suggestion boxes, and question and answer sessions at 90-day and

annual training. XYZ has an open-door policy and daily team huddles

were implemented in 2011 to improve communication at retail

locations.

The Training Department partners with Private University and

the University of State to provide training to Company staff. Some

recent collaborative projects have included a writing seminar taught

by Private University professors, a diversity training with University

of State doctoral candidates on Women in the Workforce, and an

education fair. XYZ also serves as an Intern Training Program facility

with the University of State School of Social Work. Another important

partnership with Private graduate students resulted in a year-long

research project on the effectiveness of XYZ’s LLP which will be

presented at the Consortium of State Organizations for State Teacher

Education in Fall of 2012.

As a cycle of improvement, XYZ has developed an employee

engagement strategy to be deployed January 2012. Each month CE

will focus the campaign on a different theme, such as the strategic

plan, employee benefits, financial fitness, performance excellence, or

safety. CE will create promotional materials, plan contests and

giveaways, and collaborate with all departments to share information

through team meetings, retail huddles and digital messaging.

5.2.a(3) XYZ’s workforce performance management system is

centered on annual performance reviews of all employees.

Performance reviews are conducted by immediate supervisors and are

based on the following:

1. Core job requirements established in the job description

2. Learning plan completion

3. Completion of individual and strategic goals

4. BSC metrics

5. MVV and ethical behavior

In addition to incentive compensation linked to the BSC,

employees with positive performance reviews are eligible for annual

raises up to 3% depending on performance. XYZ initiates an annual

third-party compensation review that makes sure compensation for all

employees is competitive with other Companys and non-profit

agencies. In order to enhance workforce engagement, paid time off

(PTO) and 403(b) retirement plan vesting increase with tenure.

R/R programs encourage high-performing work. Exceptional

performance in safety, customer service, service delivery, and financial

success are all recognized monthly. There is also a monthly Service

Works award presented for outstanding internal customer service.

Peers nominate candidates and the winner is selected by a committee.

Employees from all departments gather outside the winner’s work

area before arriving as a group to surprise the honoree with a gift

basket and award banner.

XYZ employs an outside company to perform anonymous and

unscheduled monthly evaluations of customer service and safety at

every retail location using questions based on customer feedback and

surveys. If a store receives a perfect score on either the customer

service or safety evaluation, every employee at the location receives a

bonus of $50 per perfect score (a potential $100 monthly bonus). The

scores on both evaluations have improved steadily since

implementation, and XYZ tightens the parameters when improvement

plateaus in order to constantly challenge employees to achieve a

higher level of performance.

5.2.b(1) XYZ uses employee surveys at 90-day and annual

training, the number of employee referrals, the number of employee

suggestions, training participation, participation in wellness and

education fairs, the number of followers and activity on the internal

Facebook page, and Best Places to Work in State survey responses to

determine workforce engagement and satisfaction. The survey

categories used to gauge employee engagement are benchmarked

against Gallup® industry results and are described in figures 7.3.a(3)-

3,4.

5.2.b(2) XYZ relates workforce engagement assessment findings

to key business results to identify opportunities for improvement by

looking at holistic trends in the BSC. For example, EAP Case

Managers are correlating the results of accident rates (BSC) with retail

financial performance (monthly financials) and employee

engagement. This data, available by location, is allowing EAP to 1)

determine if there is a relationship between increased accidents, low

employee engagement, and increased workloads at high performing

stores and 2) proactively engage these locations to assist employees

and address engagement concerns in order to increase safety. The

results of this study will be available in Q2 2012.

5.2.c(1) XYZ’s Leadership Learning Program (LLP) was created

as a direct result of the 2009 SPP and is aligned with XYZ’s strategic

priority to “build a culture of workforce excellence.” The LLP is a five

stage curriculum for XYZ employees at all levels of leadership

development. LLPs 1 and 2 focus on a curriculum designed to

develop core technical competencies and leadership skills aligned with

XYZ MVV and culture. LLP3 and 4 focus on advanced leadership

techniques, organizational and emotional intelligence, and relationship

building. LLP 5 is a senior leadership cohort designed to allow EMG

and EMG2 members to complete strategic projects with CEO

facilitation. LLP5 sessions require extraordinary vulnerability from

participants as the CEO coaches them to develop an authentic

leadership brand and increase their capacity to make meaningful

change through high-level community and public policy engagement.

Two additional levels, called “The Leadership Toolkit” (LLP1

Preparation) and “Leadership Seminars” (LLP hard skills) are

designed to prepare emerging leaders for the LLP program and help

those already in the leadership program to “catch up” before they

move to the next level of training. Each LLP course includes graded

assignments. Advancement to the next level is tied to strict

achievement standards.

Every member of the executive and senior leadership team

teaches, in their area of expertise, one of the 102 classes offered each

year to LLP participants. This model provides development both to the

participants and the instructors. As leaders move into Levels 3 and 4,

industry leaders are brought in to provide fresh and innovative

training. Levels 2 and 3 are project-based programs, culminating in

- 4 -

proposals presented to the SLs. Over the course of its two years, 372

employees have participated in LLP classes. The participants in level

1-4 boasted a 22% promotion rate during their enrollment tenure in

LLP.

Additional elements of XYZ’s learning and development

system include the learning plan, classroom and e-learning

opportunities open to all employees, paid GED classes, and

reimbursements for employees enrolled in post-secondary education.

The annual learning plan is a key component of employee

engagement and communication. This plan is designed to identify

career goals and outline appropriate training to achieve those goals.

Learning plan goals are required to be attached to annual performance

evaluations. Since employees are able to work with supervisors to

develop their own careers and are empowered to create their own

opportunities, they are more engaged and produce higher quality

work.

All employees receive ethics training at new hire, 90-day, and

annual orientation. In-depth ethics seminars are required for all SLs

and members of WDS and are also part of the LLP curriculum.

A primary goal of all educational opportunities is for employees

to share knowledge and tools, so employees take what they have

learned back to their teams by presenting at team meetings and

huddles. After all external trainings, employees create a summary and

document their learning from the program.

SL learning and development needs are often addressed outside

of XYZ. The PCI Executive Development Program (EDP) and Senior

Leader Program (SLP) are focused on providing all Company

agencies with a pipeline of the best trained, highly skilled, most

effective leaders in the non-profit world. The EDP is designed for

senior staff committed to pursuing the role of Company CEO. This

program provides a framework for understanding Company’s

complex and multifaceted core business operations and how to lead

them as a CEO. The SLP is oriented to SLs and offers opportunities to

develop the higher-level leadership skills required for performance

excellence. The EDP and SLP offer:

1. Curriculum focused on business results and applied on-the-job

learning

2. A forum for collaboration with other highly motivated and

talented SLs from across the Company movement

3. Analysis and research opportunities that innovate Company’s

business and mission services

4. In-depth training on critical business tools including but not

limited to Strategic Planning, BSCs, and Performance Excellence

5.2.c(2) XYZ evaluates the effectiveness and efficiency of the

learning and development system by measuring internal promotion

rates, retention, and class attendance. Every training session is graded

and concludes with an evaluation to determine that the trainer and

materials exceed the expectations of the participants and continually

improve.

5.2.c(3) XYZ manages career progression for all employees

through the use of learning plans which address the employee’s career

goals. XYZ actively supports career progressions both within the

outside the organization. The learning plan also includes the education

and skills attainment necessary for the employee to meet career goals.

In 2011, as a result of SPP and State Quality feedback, XYZ

conducted succession planning for all SLs including core competences

for every job, short-term and long-term successors, and specific

development plans for these candidates in 2012.

Category 6 –Operations Focus

6.1.a(1) The PCI model of using donations to generate revenue

that is used to provide jobs and services to people with barriers and

disabilities has existed since 1902. XYZ’s work systems are designed

around this model and maximize the organization’s ability to have a

sustainable effect in the community. XYZ’s work systems are

developed around five divisions: Retail Services (RS), Workforce

Development (WDS), Commercial Services (CS), Environmental

Business Services (EBS), and Company Staffing Services (CSS).

These divisions are considered key to value-creation because they

meet three core requirements:

1. Generate revenue or possess a sustainable revenue stream.

2. Provide jobs or job placement (mission) services such as case

management and training to people with barriers and

disabilities.

3. Align with XYZ MVV.

Support services sustain and support the divisions and include

Employee Services (Human Resources, Accounting, Information

Technology, and Risk Management), Community Engagement, and

Performance Excellence.

XYZ designs, improves, and innovates work systems to meet

customer requirements and achieve the MVV as a key step of the SPP.

In step 1 of the Strategic Planning Process (SPP) [2.1.a(1)], input from

customers, stakeholders, partners, and suppliers is used to evaluate the

performance of work systems against current and new requirements.

An analysis of KPI for each work system is completed. Once new

short- and long-term strategic goals have been established (steps 4 and

5 of the SPP), SLs validate or redesign the work system to meet each

goal. When a new work system is required, its development and

deployment are tracked via the PMD [2.2.a(3)] and evaluated for

ADLI at least monthly by the EMG and EMG2. New KPI are added

to either the company or divisional BSC so that key outcomes are met

at each stage of the system’s deployment.

For example, as part of the 2012 SPP, XYZ identified the need

for increased penetration of the private business sector by CSS. Work

processes in CSS needed to be modified to support this market

segment’s specific requirements. The project was added to the Project

Management Dashboard (PMD), ownership and deliverable dates

were assigned, and a business plan was developed by SLs and an

external consultant. Improvements to the updated work system will be

monitored in 2012 by specifically segmented KPI on the CSS

divisional Balanced Scorecard (BSC), including private sector

customer satisfaction and private sector revenue.

Each division has expertise in XYZ’s core competencies and

delivers value to customers while maximizing mission fulfillment.

The relationship between XYZ’s work systems [P.1.a(1)], core

competencies [P.1.a(2)], and key customer requirements (figure P.1-5)

are detailed in figure 6.1-1

6.1.a(2) XYZ determines key work system requirements (figure 6.1-

1) based on input from customers and stakeholders [3.1] and through

the SPP as described in [6.1.a(1)].

- 5 -

6.1.b(1) XYZ’s key work systems and their relationship to

delivering customer value and organizational success are detailed in

figure 6.1-1. XYZ’s five work systems are RS, CS, CSS, EBS, and

WDS as described in [6.1.a(1)]. The RS division uses expertise in

donation processing, recycling, and retail sales to generate more than

58% of the organization’s total revenue at a margin of more than 28%

(figure 7.5.1a(1)-6). Expertise in contract services such as janitorial

and mailroom fulfillment allow XYZ to reliably meet contractual

requirements at prices below those of competitors while meeting state

and federal set-aside disability employment requirements. CSS’s

assessment and staffing processes are streamlined to enable efficient

placement, accurate matches, and high stakeholder satisfaction. Both

CS and CSS are revenue-generating and at least 75% of employees

are people with severe disabilities. EBS’s computer sales and

recycling further reinforce XYZ’s commitment to environmental

stewardship. These recycling programs lower trash costs, generate

revenue, guard the safety of data stored on donated electronics, and

protect the environment from potentially dangerous chemical disposal.

Revenue generated by each division supports WDS case management

that helped placed 1,825 people with barriers and disabilities into

employment in 2011.

XYZ manages work systems to deliver customer value and

achieve organizational success and sustainability through the SPP,

BSCs, and PMD. During the SPP, work system requirements are

identified using VOC and analysis of the strategic environment in

relationship to the organization’s short and long term goals. Changes

to key work systems, or work processes, are deployed using the PMD

and the effectiveness of these changes is monitored monthly on BSCs

by SLs at the EMG and EMG2. In 2012, as a result of XYZ’s

experience with Baldrige and Quality State feedback, changes to work

systems are also being gauged on level of ADLI.

6.1.b(2) XYZ uses Lean approaches to help reduce rework, minimize

costs, and ensure that work systems are delivering customer value.

Lean is part of the LLP1 and LLP3 curriculum [5.2.c(1)]. In addition,

increased compliance with the Baldrige criteria has meant XYZ

systematically deploys, evaluates, and improves processes.

As part of the 2012 SPP (figure 2.1-2), XYZ has committed to

leveraging the expertise of the Performance Excellence department to

complete at least 2 work system reviews. These unbiased and

systematic reviews facilitate implementation of improvements, and

establishment of measurements and outcomes. For example, in 2011,

a work system review of RS revealed that donated electronics were

being priced ending in $.99, a process designed to signify a warranty

in the organization’s old point of sale (POS) software. This meant that

retail personnel were changing their price guns from $.00 to $.99

hundreds of times per day, a process that is unnecessary in the new

POS software. The process was updated, resulting in $24,759 first

year labor cost reduction and $7,850 reduction in indirect costs

attributed to mislabeled merchandise.

Figure 6.1-1 Work Systems:

XYZ also conducts Kaizen (see glossary) events at all stores at

least bi-annually, and for 2012 will conduct events in recycling,

maintenance, computer works, and retail offices. Kaizen

improvements are sustained with weekly 5-S self audits and quarterly

Performance Excellence audits, and are reported on the Performance

Excellence BSC. In 2011, Kaizen events increased the Value Added

Ratio (VAR) of donation processing by 18% through elimination of

wasteful processing steps, reduction in unnecessary movement of

products and employees, and reduction in processing time (figure

7.1.b(1)-2).

Internal audits provide early detection and prevention of errors.

EMG2 conducts internal audits on all BSC metrics on a monthly

basis. In addition, internal audits are conducted at least monthly on the

following areas:

1. Retail (Customer facing areas, production)

2. Retail accounting and cash-handling processes

3. Accounting

4. Grant Compliance (WDS)

5. Safety and Emergency Preparedness

In 2011, as a result of CARF feedback, XYZ moved all SOPs,

board approved policies, and procedures to the SharePoint-based

intranet. Video training was developed so that all employees could

use SharePoint’s powerful search and document control features to

locate and update SOPs. Organizational deployment of these

documents ensures consistent high performance in alignment with

approved processes.

6.1.c XYZ’s preparedness for disasters and emergencies is

documented in the Business Continuity Plan (BCP). The BCP is

updated annually and documents all facets of workplace preparedness

for emergencies. This includes data and system backup and recovery

plans, media policies, vendor lists, vital records inventories, and key

customer, vendor, and SL contact information.

- 6 -

XYZ requires that all sites have first-responder medical

personnel, emergency first aid kits, evacuation plans, fire suppression

systems, and emergency paging processes. Emergency systems are

tested according to schedules documented in the BCP and established

via local governmental policy, CARF conformance, and PCI

membership standards.

All XYZ employees are trained at least annually on proper

emergency procedures.

6.2.a(1,2) XYZ uses a systematic approach to design and improve

work processes (figure 6.2-1). In Step 1, customer requirements are

gathered, and opportunities are identified in consideration of MVV,

core competencies, strategic environment, and workforce capacity and

capability. In step 2, a project team is created that includes all relevant

stakeholders. The team creates project timelines in the PMD, uses

Lean and Six-Sigma tools to design the process, and works with SLs

to identify opportunities to take advantage of new technology and

existing organizational knowledge. XYZ implements new processes

only after KPI and goals are established and included on the

appropriate BSC (Step 3). Step 4 includes documenting the work

process in SOPs, developing training, and deploying the process.

When a work process could have negative or unexpected outcomes,

limited-scope testing is used to minimize risk. Each stage is measured

for ADLI, and variations in projected performance signal the need for

work process improvement. Step 5, the process improvement cycle,

includes process reviews [6.1.b(2)], Kaizen events, and operational

process improvement projects. When more rapid improvement is

required, SLs form Tiger Teams (see glossary) made up of key

stakeholders who are empowered to quickly analyze, implement, and

measure changes. SLs are empowered to update SOPs, work

instructions, and divisional BSC KPI when process improvements are

made. Key work processes, and work process requirements are listed

in figure 6.1-1.

Figure 6.2-1 Process Design, Deployment, and Improvement

6.2.b(1) The relationship between XYZ’s key work systems, work

processes, and customer-driven process requirements is shown in

figure 6.1-1. Each work process has KPI deployed on the company or

divisional BSC as described in Step 3 of the XYZ process design. If

any measure falls below expectation, either on a BSC or on a daily

report such as the Store Reporter (which measures retail performance

by store and district against past performance), action is taken to bring

the measure back to acceptable levels. SLs are responsible for each

work process and communicate performance and adjustments to staff

in daily meetings, via email, and through corporate communication

tools such as Yammer.

6.2.b(2) XYZ does not rely heavily on suppliers to deliver products

or services because the majority of revenue is generated from donated

goods that are sold at retail, salvaged in bulk, or recycled. XYZ’s

primary suppliers do not provide direct value to customers, but rather

support internal process with products or services such as software and

office supplies. XYZ has strict requisition and purchasing policies that

include requirements for bid obtainment, purchase limitations, and

contract development.

If established benchmarks documented in the contract or

requisition are not met, SLs and XYZ procurement personnel discuss

the issues in face-to-face meetings with the supplier. Past performance

is considered during contract renewal.

6.2.b(3) XYZ’s approach to process improvement has evolved

from problem solving to a robust and multi-faceted approach as

described in section P.2.c of the organizational profile. Large scale

opportunities are identified as part of the SPP. These projects, along

with operational projects necessary for organization sustainment are

managed on the PMD and deployed based on the process design and

improvement model shown in figure 6.2-1. XYZ evaluates all

processes using ADLI so that each is validated against customer

requirements with clear goals (A), deployed consistently throughout

the organization (D), measured and improved (L), and in alignment

with other organizational directives (I).

Company and divisional BSCs cascade KPI throughout the

organization and serve to focus the organization on areas that are

performing below goal. KPI are trended over time, segmented by

division, and compared with industry benchmarks or PCI performance

targets. For the most crucial indicators, XYZ’s incentive compensation

system tied to the Company BSC focuses the organization on process

performance and improvement [1.1.a(3)]

The Baldrige criteria provide XYZ with the best practice

framework and external feedback that is essential to the organization’s

continuous improvement.