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The second Baldrige category examines how an organization sets strategic directions, how it develops the critical strategies and action plans that support its directions, how it deploys the plans throughout the organization, and how it tracks performance to plan.

Many organizations use the planning process as a tool for aligning the activities of divisions, departments, functions, teams, work groups, and individuals with overall organizational strategies, goals, and plans. Such alignment often provides a powerful competitive advantage.

The planning process must also reflect a focus on the future, which is a Baldrige core value. As the criteria note, "pursuit of sustainable growth and market leadership requires a strong future orientation and a willingness to make long-term commitments to key stakeholders." Planning needs to anticipate many changes, which means it must have a variety of inputs to the process including data and information on customer requirements and expectations, market changes and risks, supplier quality and capabilities, technological developments, competitive developments, and the organization's capabilities.

The complete 2003 Baldrige criteria for Business, Education and Helath Care are provided for free download.

Proceed to another Baldrige category: Leadership; Customer and Market Focus; Information and Analysis; Human Resource Focus; Process Management; Business Results.

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