REMARKS
BY THE PRESIDENT
AT MALCOLM BALDRIGE NATIONAL QUALITY AWARD CEREMONY
THE WHITE HOUSE
Office
of the Press Secretary
______________________________________________________________
For Immediate Release: March 7, 2002
Washington Hilton Hotel
Washington, D.C.
11:05 A.M. EST
THE
PRESIDENT: Thank you, Secretary Evans. And thank you
all very much. It's an honor to be back here. It's a pleasure
to see so many students here today. I understand some of
you took a tour of the White House. You must have behaved
well, because I didn't hear the dogs barking. (Laughter.)
I hope you enjoyed being there as much as Laura and I enjoy
being there. It's a fabulous place, the White House is.
I'm so glad you were able to see it.
I'm
also pleased to be back to congratulate the award winners
of the Malcolm Baldrige National Quality Award. I'm really
pleased that school districts have been added. I want to
commend the Baldrige Committee for including education.
Secretary Rod Paige is here -- both of us believe so strongly
that no child should be left behind. Both of us know the
potential of the public school systems in America, and we
want to thank and congratulate the school districts here
that have set the highest of high standards not only at
the secondary level, but also at the high level of education.
I was
privileged to know Malcolm Baldrige. He was one of America's
most distinguished Secretaries of Commerce. And what a fine
and honorable man he was. The award that bears his name
reflects the virtues that he brought to public service and
how he lived in his private life, a commitment to excellence,
shrewd judgment and sound judgment, principled leadership,
integrity, and a sense of responsibility.
Today's
honorees have met a rigorous test, and such a worthy example
for others. And I know Malcolm would have approved of the
winners.
It's
a great honor to be with Midge Baldrige again -- you're
looking pretty darn good these days. (Laughter.) And Letitia
Baldrige, as well. I know we've got some members of the
United States Congress here -- I think Bill Jenkins from
Tennessee is here. I know Connie Morella is here. Thank
you for coming, Connie. I also appreciate Nancy Murkowski,
the wife of Frank Murkowski. Nancy is committed to quality
education in the state of Alaska, and I know you're as proud
as I am for the winners who are here. (Applause.) And I
always want to thank the U.S. Army Band for providing such
wonderful music. (Applause.)
I appreciate
the fact that prior winners of the Baldrige Award are here.
I think it's important for you to stay involved in the process.
As you heard, some of the recipients also appreciate of
you being here. And I want to
welcome five more organizations to your ranks. (Applause.)
The school districts; the University of Wisconsin-Stout;
as well as the fine symbols of entrepreneurial spirit in
America, Pal's Sudden Service of Tennessee, and of course,
Clarke American Checks, represented by some rowdy Texans.
(Applause.)
This
is a high, high honor. I know you all understand what a
big deal this is, having gone through the process. It is
an important award, and I congratulate you all so very much.
The award goes to organizations rather than
any single individual. And that's important to note. As
we've seen today, success happens in an atmosphere of teamwork,
common values, and trust.
An
organization needs a good idea and a good product or a good
service. It certainly needs a good strategic plan. But more
than anything, it needs good people -- men and women of
integrity, who understand their duties to each
other and to the public interest.
And
this is true throughout our entire economy. The free enterprise
system draws upon the best in people: creativity, ingenuity,
energy, a desire to make life better for ourselves and for
others. The whole design of free market capitalism depends
upon free people acting responsibly. Business people must
answer not just to the demands of the market or self-interest,
but to the demands of conscience.
The
bottom line of the balance sheet defines a business's goal,
but not the sum of responsibilities of its leaders. Management
should respect workers. A firm should be loyal to the community,
mindful of the environment.
In
America, by far -- by far -- most businesses fulfill their
responsibilities. They do not cut ethical corners, or neglect
workers, or disregard community standards. A good business
finds opportunities and makes the most of them. And a good
business always respects the boundaries of right and wrong.
In our
country, the law defines many of these responsibilities,
from workplace safety to environmental protection. For publicly-held
corporations the law goes further, defining standards of
disclosure with independent certification by auditing firms.
We have
seen lately just how important these standards are, and
the harm that can follow when they are ignored. Exactly
where the blame lies may take a long time to determine,
and legal judgments are for regulators and for courts. But
this much is clear: To properly inform shareholders and
the investing public we must adopt better standards of disclosure
and accounting practices for all of corporate America.
The
reason that a single bankruptcy can cause so much concern
in America is that more Americans than ever have invested
their money in public corporations. Today, about 80 million
Americans own stock, either individually or through their
pension plans. This is one of the causes for the expansion
in personal wealth over the past 20 years. This has been
an incredibly positive development for America. Stock ownership
allows citizens from all walks of life to own a part of
the economy and to share in its growth. The people who run
public companies owe a special obligation to these investors,
many of whom have put their savings and future security
on the line.
Corporate
officers must perform their duty in good faith to the best
of their abilities. They must disclose relevant facts to
the investing public, and they must focus on the interests
of shareholders who are the real owners of any
publicly-held enterprise.
I recognize
that the basic rules of corporate law are made by the states,
and that's as it should be. But Washington has responsibilities,
as well. The buying and selling of publicly- held shares
is regulated by the federal government. And today, I call
upon the Securities and Exchange Commission to take action.
Existing regulations should be clearer; penalties for wrongdoing
should be tougher. Reform should improve investor confidence
and help our economy to flourish and grow.
It
is important to provide sound regulation and remedies where
needed, without inviting a rush of new lawsuits that exploit
new problems instead of solving them. Our goal is better
rules so that conflict, suspicion and broken faith can be
avoided in the first place.
Reform
should begin with accountability, and reform should start
at the top. The chief executive officer has a daily duty
to oversee the entire enterprise, the entire firm, and therefore,
bears a unique responsibility for serving shareholder interests.
Currently,
a CEO signs a nominal certification of annual financial
statements, and does so merely in its capacity on behalf
of the company. In the future, the CEO's signature should
also be his personal certification, vouching for the voracity
and fairness of the financial disclosures. When he signs
a statement, he's giving his word, and should stand behind
it.
Oftentimes
businesses base executive bonuses on financial statements.
If, however, a financial statement turns out to be grossly
inaccurate, or the result of serious misconduct, those bonuses
should be returned to the company's treasury on behalf of
it's shareholders. (Applause.)
Corporate
officers should not be allowed to secretly trade their company's
stock. Every time they buy or sell, they should be required
to tell the public within two days. (Applause.) The Securities
and Exchange Commission
should be able to punish corporate leaders who clearly abuse
their powers, by banning them from ever serving again as
officers or directors of publicly held corporations. (Applause.)
We
must also do more to safeguard the rights of investors.
America has the best system of corporate disclosure. Yet,
the interests of the average investor are sometimes overlooked,
especially the need for thorough and timely
information about firm performance. And some corporations
have used artful and intricate financial arrangements to
hide the true risks of the investment.
We
need to get back to basic capitalism. In a system based
on the willingness to take risks, investors need to know
the true nature of the risks. The investor has the right
to a true and fair picture of assets, liabilities and
income. Management has a good-faith obligation to provide
that information, attracting investment by building on strengths,
not by clever concealment of weaknesses.
And
to further ensure that information is reliable, we will
need reforms within the accounting profession. Auditors
are a critical external check on management, and we must
ensure that the integrity of their work is never compromised.
Accounting is one of the most and one of the most respected
professions in our country, and it can help protect its
own integrity by developing and enforcing clear standards
of conduct.
The
profession also needs an independent regulatory board to
hold accounting firms to the highest ethical standards.
And the SEC should exercise more effective and broad oversight
of accounting standards. The SEC should
also do more to guard against conflicts of interest, requiring,
for example, that an external auditor not be permitted to
provide internal audits to the same client. (Applause.)
And,
finally, auditors should do more than evaluate a company
by minimum standards. Instead, the auditors should compare
the company's financial controls to the best industry practices
and give those findings to the audit committee.
You
know, we're passing through extraordinary times here in
America. We fight a war, a real war, to protect our homeland
by bringing terrorists to justice. We stand strong against
evil abroad -- I mean we are standing strong
and determined and united against evil. (Applause.) We're
finding strength at home through the gathering momentum
of millions of acts of kindness and generosity and goodness,
neighbors helping neighbors, Americans adhering to the age-old
call to love someone just like you'd like to be loved yourself.
America
is ushering in a responsibility era; a culture regaining
a sense of personal responsibility, where each of us understands
we're responsible for the decisions we make in life. (Applause.)
And this new culture must include
a renewed sense of corporate responsibility. If you lead
a corporation, you have a responsibility to serve your shareholders,
to be honest with your employees. You have a responsibility
to obey the law and to tell the truth. (Applause.)
Business
relationships, like all human relationships, are built on
a foundation of integrity and trust. When those values are
practiced and expected, our economy and our country are
stronger.
We're
seeing some challenges and some changes in American business
and American enterprise. Yet this annual presentation is
a reminder of things that must never change: the passion
for excellence, the drive to innovate, the hard work that
goes with any successful enterprise, the need to be open,
the call for integrity. This year's Baldrige Award winners
have shown these qualities, and have taken their place in
a distinguished line of leaders.
Once
again, my congratulations to you all. May God bless your
enterprises, and may God bless America.
Remarks
by the 2001 Baldrige Award recipients
Baldrige Acceptance Speech by Nathaniel
Moore, Chugach School District Student
Mr.
President, Mr. Secretary, ladies and gentlemen, it is my
great honor and privilege to be here today representing
the Chugach School District as one of this year's recipients
of the Malcolm Baldrige National Quality Award.
As many of you know, in the past eight years Chugach School
District has radically altered how we educate students.
At the heart of this reform movement we have created and
implemented a comprehensive standards-based system. With
the input from all stakeholders in our small 22,000 square
mile district, this new system steers away from the traditional
22 credit diploma that is based on seat time, and instead
focuses on students demonstrating skills, and more importantly,
applying them in real life. This system provides a clear
road map of what students need to know and do in each content
area. Besides mastery of these basic skills, the needs of
the whole child are considered, including character development,
career development, service learning, and technology. All
skills we need to be successful in the 21st century.
These
achievements definitely did not happen overnight. It has
taken almost an entire decade to get where we are now. This
proves that it takes dedication, hard work, and a large
amount of patience to accomplish something like this. I'm
proud to say that the staff of our district has shown that
repeatedly. In addition to a very dedicated staff, it also
takes hard work from the students. A student can no longer
slide by with a D average on his or her report card. Students
in our district have shown that, with clear relevant expectations,
they are more likely to succeed. And succeed they have.
After 8 years of refinements, where we once had 90% of our
students unable to read at grade level, we now score near
the top of our statewide testing.
From
our success, we have teamed with other courageous leaders
in the state who were willing to replicate a better performance-based
system. In fact, 20% of the districts in Alaska have now
committed to this belief system. Our ultimate goal, however,
is to impact the rest of America; 1 million students, or
1,000 districts, whichever comes last.
From my perspective, this system has challenged me unlike
the traditional system. My standing here before you is testimony
to this. I am the one responsible for my education. With
my district's standards, I have a better knowledge of what
I need to succeed, not only in school, but also in life.
Finally,
I would like to congratulate all the other recipients of
the award this year; especially the other education organizations
that join the Chugach School District in being the first
ever to win this prestigious award. May all of you continue
to have success in your field.
I would
also like to thank the members of the Malcolm Baldrige Foundation,
the National Institute of Standards and Technology, and
the panel of judges. But mostly, those brave examiners who
overcame their fear of flying, braved the wilds of Alaska
in the middle of winter, and believed in who we are and
what we stand for.
Thank
You
Remarks
by Charles L. Korbell, Jr., President and Chief Executive
Officer
Clarke American Checks, Inc.
President Bush, Secretary Evans, distinguished guests, and
fellow recipients:
It is
my great honor to be here today along with 50 passionate
Clarke American team members representing our 3300 associates
across the nation.
Our
quality journey began over 15 years ago with a simple but
profound commitment to be "First in Service" to
our customers, shareholders, and each other by providing
superior quality and service. Our quality program was founded
on key principles of quality management, which are still
embedded in our culture today.
While
we had a successful business, it was not until we set our
sights on the Baldrige Award that we really began to understand
the magnitude of change necessary to achieve world class
performance.
Two
things about Baldrige have had a dramatic impact on our
company: benchmarking and assessments. First, seeing is
believing and we benchmarked numerous Baldrige recipients.
We saw quality integrated into the business strategy, customer-focused
leadership driving innovation and growth, and team-based
learning organizations. Most importantly, it taught us that
you must have both continuous and breakthrough improvements
to achieve world class business excellence.
Second,
we used internal assessments to measure how well our goals
and business practices were deployed. The feedback was a
catalyst for change. The assessment process continues to
have a dramatic, positive impact on our business. I would
like to acknowledge the contribution of the Baldrige examiners
who perform these assessments. We thank you and sincerely
appreciate all you do.
Throughout
our First in Service journey, the associates of Clarke American,
both past and present are the true shining stars. We have
a culture that accepts change as a constant and where status
quo is a problem. The outcome is continuous and breakthrough
improvements that drive results and inspire our associates
to stretch for even higher goals.
Clarke
American associates live by our values and care deeply about
each other, our company and our communities. We encourage
associates to demonstrate passion and continually help them
build on their capacity to love. This is what we mean when
we talk about passionate associates - they "pour their
hearts" into what they do and have a "burning"
desire to delight our partners and customers. Our First
in Service philosophy creates an environment where the customer
wins, our partners win, and we win - that's what we call
the "Triple Win."
We are
even more energized today about the next steps in our journey
that will move us closer to our vision. We will work diligently
to fulfill our role as a recipient of this award. We intend
to focus on building awareness and commitment to the Baldrige
process in the financial institution industry which we serve.
Achieving the Baldrige Award puts us in a unique position
to demonstrate and share the positive results of deploying
a customer-focused business strategy.
On behalf
of all associates we proudly and humbly accept this recognition.
Thank
you.
Remarks
by Thom Crosby, President and CEO, Pal's Sudden Service
Mr.
President, Mr. Secretary, fellow award recipients, and distinguished
guests: Speaking for all 465 members of the Pal's Sudden
Service organization, we are honored and delighted to represent
the first restaurant company to receive the prestigious
Malcolm Baldrige National Quality Award.
The
Baldrige Quality Award program is a vital national asset,
setting the highest standards for excellence making American
businesses and organizations more robust and competitive.
Pal's is pleased to be involved in the Baldrige Quality
Award process and very proud to be a successful American
business. Receiving the Baldrige Award represents an important
milestone in our continuing quest for excellence.
The
members of the Pal's team, through their dedication to delighting
customers, their creative approaches to improvement and
problem solving, and constant focus on value creation has
made being here today a reality. This team of super stars
has:
Increased
per store sales 20% in 2001 after 4 years of double digit
sales growth.
Achieved
employee turnover that is the lowest in our market,
Achieved
customer satisfaction scores that are 10 percentage points
above our best competitors,
Delivered
the market's fastest and most accurate service, and
Won
the Tennessee Quality Excellence Award.
In closing,
I would like to thank the Pal's team again for creating
the results that make Pal's a success. I want to say "thank
you" to all who make the Baldrige Award program possible
including the National Institute of Standards and Technology,
the American Society for Quality, and all the individuals
who volunteer their expertise and time such as examiners
and judges, and to the organizations that support and participate
in the Baldrige process. I especially would like to thank
President Bush and Secretary of Commerce Evans for their
active and visible support of the Baldrige Quality Award
program to promote the highest standards of excellence.
Thank
you.
Remarks
by Richard E. Maurer, Ph.D., Superintendent of Schools,
Pearl River School District
Mr.
President, Mr. Secretary, members of the Baldrige family,
ladies and gentlemen and, most especially, students. I am
honored to represent the 363 employees and 2,500 students
of the Pearl River School District in New York State.
We did
not become involved in the Baldrige process to win an award.
We became involved because we knew that the process, when
applied deeply in our schools and in our classrooms, would
lead us to fulfill our mission that "every student
can and will learn." We are dedicated to learning as
an active process where our students discover and create
knowledge.
We are
blessed with a talented and dedicated faculty and staff.
Our teachers, teaching assistants, secretaries, custodians,
nurses, administrators, bus drivers and mechanics each and
every day passionately believe that every child in front
of them can learn. As a result, our staff is constantly
learning, adapting, innovating, "stealing" best
practices, and aligning our curriculum and improving our
instruction. Baldrige provided the process; our staff provided
the energy and passion.
A few
of our accomplishments:
Our
students achieve -·
