The Journey to Recognition
How do Branch-Smith Printing Division's leaders define quality, and what did the firm do to win the Baldrige Award? "Quality is like an onion," says David Branch, the firm's chairman, president and co-owner. "There are lots and lots of layers, and you have to peel them one by one. The deeper you get, the more questions you ask and the more adjustments you make. You build and improve customer satisfaction, employee satisfaction and leadership skills--and you get better and better quality."
Ten years ago, total quality management (TQM) was new to Branch-Smith Printing Division, Branch says. "We didn't know what it really was, or understand how the Japanese were applying it," he says. Branch decided he didn't want to be blind-sided. He worked with a consultant, learned the concepts and processes of TQM, conducted a self-assessment, determined a focus and trained his organization. He also joined business roundtables that focused on performance excellence, and enrolled in a program at the Community College of Dallas.
In 1995, Branch-Smith Printing Division earned International Organization of Standardization (ISO) certification. ISO's purpose is to promote the development of business standards to facilitate the international exchange of goods and services. It operates more than 2,000 technical committees and subcommittees that develop and publish international standards. The vast majority of ISO standards are highly specific to a particular product or process. Basically, the standards require a company to define a model for how it operates, thoroughly document guidelines for its work processes, then strictly follow those guidelines. (Many people wonder why the acronym ISO doesn't correspond with the organization's full name. It would seem the organization should be called IOS, but ISO is not an acronym. It stems from the prefix "iso," derived from the Greek word "isos," meaning equal.)
After earning ISO certification, Branch applied for a Texas Quality Award. "The application process really helped me get a good picture of my organization, our strengths and weaknesses and the requirements we should try to meet," he says. But when the Texas feedback report arrived, I realized I definitely didn't know enough about the process."
Branch decided to experience quality from the other side of the fence, and trained to be an examiner for the Texas Quality Awards. He made site visits, wrote reports and discussed scores with other examiners. "This fine-tuned my understanding," he says. "It's not enough to introduce a quality process and make adjustments. You have to measure and show change and improvement. Trying to change a small company is very hard work."
Branch-Smith Printing Division won the Texas Award for Performance Excellence in 1999. And in the spring of 2000, the company submitted its first application for the Baldrige Award. "It's an extremely time-consuming undertaking," Branch says. "You have to document your processes, measure and report results. You submit 50 copies of your application. Examiners give you feedback on your strengths, areas of improvement and a score."
Firms receive scores in multiple categories, in bands such as 30 percent to 40 percent or 50 percent to 60 percent. Examiners determine scores during conference calls, then send them to judges. Judges decide which applicants will receive site visits, and examiners at those visits decide whether scores should increase, decrease or stay the same.
Seven examiners plus one monitor spent six days at Branch-Smith Printing Division's facility. "They verify your strengths and clarify any uncertainties," Branch says. "All the employees are prepared to answer questions, and everyone is psyched. We were extremely disappointed when we didn't win."
Branch-Smith Printing Division went back to the drawing board. Companies aiming for the Baldrige Award must do more than outline changes to their business plans. Judges require detailed information about cycles of change, refinement of business plans, and measured and documented changes. Since business success often takes years to culminate, Branch-Smith Printing Division's first application didn't show the results of the firm's changes.
In 2002, when results were present and measurable, Branch decided to reapply. This time, the company was ready--and won. "When the phone call came from Secretary of Commerce Don Evans, it was a very good feeling," Branch says. "Getting there required contributions from everyone in the company, and we all celebrated together."
Traveling Together
"I've been part of the printing industry for 20 years, and this is the best place I've ever worked," says Patrick Scott, Macintosh technician at Branch-Smith Printing Division. "My opportunity for input is incredible, and quite a few of my ideas have been implemented. There is a real open-door policy."
Branch says the firm attempts to provide the same quality environment to its co-workers as it extends to customers. The team structure of Branch-Smith Printing Division's senior leadership is designed to enable and empower it to respond quickly to change and provide guidance and support to employees. The division's Print Leadership Team (PLT) aligns its purpose to the corporate direction of Branch-Smith Inc. The PLT includes the president; vice president/general manager; bindery supervisors; and managers for production, client services, accounting, human resources and quality. These leaders encourage and motivate employees to engage in innovation and continuous improvement. Employees receive training on the meaning of quality, elements of teamwork and problem-solving skills.
"I grew up in the printing business--my grandfather was a publisher and my dad did color separation--so I know the culture at Branch-Smith is special," says Susie Long, the company's client services manager. "There's a lot of coaching, training, and opportunities to learn and grow. Everyone shares a willingness to change and improve."
Branch says employees must be well-trained and fully informed, and understand performance expectations. "We have no quality inspector to approve work produced," he says. Instead, each employee is responsible for his or her own output. Each department and team has its own mission statement, giving employees a sense of accountability for the company's success. Supervisors give employees annual performance appraisals and quarterly report cards to evaluate progress.
Focusing On and Measuring Client Satisfaction
What was Branch-Smith Printing Division's prescription for winning the quality jackpot? "You have to know who your stakeholders are, understand their requirements and how to meet them, and measure how you're doing," Branch says. "We're committed to continuous improvement of our processes and our people, but we have to know where to improve. You can't just change for change's sake. Measurement is truly where the rubber meets the road."
Leann Callihan, publications editor for the American Association of Professional Landmen in Fort Worth, has been working with Branch-Smith Printing Division since 1991. The association relies on the firm to produce a bimonthly magazine, membership directory, industry show guide, annual report and calendar, and membership newsletter. "Our printer is a partner in our success," Callihan says. "If the printer does a quality job on our publications, it brings a lot of credibility and a positive image to our association and its members. I've never had to wait for them to catch up."
Callihan works closely with Branch-Smith Printing Division's art department. "I depend on prepress to watch out for glitches and alert me right away," she says. "If I have computer problems, someone from IT walks me through it."
Every year, all Branch-Smith Printing Division customers receive a satisfaction survey from eKG Research Associates, Flint, Mich. Their responses are compared to eKG's database of progressive printing companies, as well as the scores of companies that Branch-Smith Printing Division's customers consider to be its direct competitors. The survey measures customer price satisfaction, accessibility to Branch-Smith Printing Division employees and information, product quality, reliability, and ability to meet deadlines. Customers also rate employee knowledge, range of services, quality of estimates and invoices, and promptness in solving problems.
No less important is the annual employee survey that supports the company in its objective to be "the employer of choice." Survey questions cover procedures, job safety, recognition, teamwork, training, management, responsibility, communication and job enjoyment. "We look at the results and make changes and our changes are paying off," Branch says. Branch-Smith Printing Division's employee turnover rate, which was 40 percent in 1996, dropped to 7 percent last year, he says.
Was the Sweat Worthwhile?
The energy and entrepreneurship needed to tackle challenges comes naturally to Branch-Smith Printing Division. Branch-Smith Inc.'s founder, Aaron Smith, was born without arms, but learned to excel in school and business. He studied law in Texas, became a journalist and newspaper editor, started the printing business, and lived to be 102. He set the stage for innovative excellence at the company.
"Winning Malcolm Baldrige is wonderful publicity, but we won't hang our hats on this alone," Branch says. "After you win, you sit down, collect yourself and make more strategic plans. All Baldrige really does is help you understand and improve what you're doing. Our customers will do business with us because we're good at what we do, not because we won the award."
Dan Hanson, vice president of Branch-Smith Printing Division, says it's important for the firm's leaders to remember that no schedule, meeting or process is sacred.
"If you have a vision of growth for your company, Malcolm Baldrige helps you build the infrastructure to carry it out," Hanson says. Aiming for the Baldrige Award requires commitment, discipline and fortitude, he says. "Anything less than that, and you'll probably wash out," Hanson says. "But if you make it, your results will be outstanding."
6 Reasons Branch-Smith Printing Division Succeeds
Branch-Smith Printing Division, a printer based in Fort Worth, Texas, has experienced five consecutive years of growth despite a competitive market and weak economy. The firm's sales increased 72 percent from 1998 to 2001. Here are six strategies that are paying off:
1. The firm targets customers needing short runs and an array of services. David Branch, chairman, president and co-owner of Branch-Smith Printing Division, says the firm's specialization in sheet-fed printing allows it to meet the needs of an "under-served" population.
2. The company invested in capital improvements, including an 8-color Heidelberg press and computer-to-plate technology, in 1998. "None of our investments are made from the hip," says Dan Hanson, vice president of Branch-Smith Printing Division. "We were ready to move forward and partner with customers for the future."
3. The firm handles multiple facets of printing production in house, including design, prepress, printing, binding, finishing, fulfillment and delivery services. This helps to improve turnaround time and reduce costs.
4. The company effectively uses production management software from Printers Software Inc., Sarasota, Fla., to meet key performance requirements. Shop-floor data collected throughout the day links to inventory, job costing and accounting. A database integrates multiple types of data into an easy-to-use, central location.
5. The firm minimizes its number of suppliers, focusing on long-term relationships with those vendors.
6. The company operates without customer contracts. "We earn our customers' business every day," Hanson says.
