On the Social Value of Quality: An Economic Evaluation of the Baldrige Performance Excellence Program

This study estimates the net social value of the Baldrige Performance Excellence Program. It focuses specifically on a survey population of 273 applicants for the Malcolm Baldrige National Quality Award since 2006. Using a counterfactual evaluation method, social benefits have been quantified from the responses of 45 Award applicants to a Web-based survey. We conservatively estimate the ratio of social benefits to costs to be 820-to-1. This finding certainly supports the belief that the Baldrige Program creates great value for the U.S. economy.