Originally Published MX May/June 2004
BUSINESS NEWS
Medrad Receives Baldrige Award
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| Medrad president and CEO John P. Friel receives the Baldrige award from President Bush. (click to enlarge) |
In early March, President Bush and U.S. Secretary of Commerce Donald Evans presented medical imaging maker Medrad Inc. (Indianola, PA) with the nation's highest honor for business excellence.
Medrad president and CEO John P. Friel accepted the 2003 Malcolm Baldrige National Quality Award at a ceremony in Washington, DC, that was attended by 50 Medrad employees. The event was also broadcast live via satellite to 800 company employees gathered at a meeting hall in Pittsburgh and to Medrad locations around the world.
"It was an emotional experience," says Friel. "The general reaction among employees was that the ceremony was awesome, incredible, motivating. Everyone is very proud."
At the ceremony, President Bush congratulated Medrad and complimented Friel's executive leadership. "John spends one day each month on a front-line job," said Bush. "Here's a CEO who mops the floors, takes phone calls, hears customer complaints, and works on the assembly line. He's built a culture where everyone at the company has a voice in the way things are done."
Medrad received the award for quality and performance excellence in manufacturing. Six other organizations received the award in categories including healthcare, education, service, and small business. Award recipients were selected from nearly 70 applicants.
The Baldrige award was established by Congress in 1987 to enhance the competitiveness of U.S. businesses. Its prestige stems from a rigorous entry and examination process that applicants are required to follow.
For Medrad, the award reflects a milestone following the company's 15-year commitment to integrate Baldrige principles into its daily operations. Baldrige criteria include a series of best practices that companies from all industries can use to improve manufacturing and other operations.
"Ingraining Baldrige principles into the fabric of an organization requires a lot of work," says Friel. "At Medrad, the first 3–5 years under Baldrige was the building phase. We had to work on having employees realize that Baldrige wasn't separate from their regular work, but the way to approach their whole job."
Because implementing Baldrige principles requires extra effort, many companies initially balk at committing to the process, Friel says.
"Some executives view the rigor and discipline as unnecessary. I advise those people to visit companies that have received the award," says Friel. "Customers are willing to pay for value, and Baldrige helps to deliver outstanding value in an efficient manner. There is a tremendous impact on business."
Since Medrad began using Baldrige principles, the company doubled revenues between 1997 and 2002 and has expanded manufacturing capacity three times, reported Medical Device & Diagnostic Industry magazine in its February issue.
The financial commitment of employing Baldrige principles can't be quantified, Friel says. "Baldrige helps to determine what a company should invest in. But it ends up being the way a company does its business."
Friel says that companies become more attractive in the marketplace upon winning the award. "It enhances a company's reputation and credibility with customers and the investment community." Medrad is a wholly owned subsidiary of Schering AG (Berlin).
The 2003 award recipients were evaluated by an independent board of examiners in seven areas, including leadership, strategic planning, customer and market focus, information and analysis, human resource focus, process management, and results. The evaluation process included about 1000 hours of review and an on-site visit by a team of examiners.
The Baldrige program is managed by the National Institute of Standards and Technology (NIST; Gaithersburg, MD) in conjunction with the private sector. NIST, a nonregulatory agency of the U.S. Department of Commerce Technology Administration, develops and promotes measurement, standards, and technology to enhance productivity, facilitate trade, and improve quality of life.
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