Baldrige Index Stock Study
Results of 1988-1998 Baldrige Award Recipients Methodology: A hypothetical sum was invested in each of the 1988-1998, publicly-traded Baldrige Award recipient's common stock, in the year they applied for the Award. The investment was tracked from the first business day of the month following the announcement of the Award recipients, (or the date when they began public trading, if it is later) through December 1, 1999. $1,000 was invested in each whole company, and for subsidiaries the sum invested was $1,000 multiplied by the percent of the whole company's employee base the subunit represented at the time of its application. The same total dollar amount was invested in the Standard & Poor's (S&P) 500 on the same day. If a subunit was sold to another parent company, or if a company divested or merged, it was the subunit whose progress was followed, not the parent company's progress. The value of the original stock at the time of sale was determined and that dollar amount was reinvested in the new parent company. Adjusting for stock splits, the value on December 1, 1999 was calculated. Information is reported two ways: all publicly-traded Award recipients and only whole company Baldrige Award recipients. The 24 publicly-traded Award recipients, as a group, outperformed the S&P 500 by approximately 3.8 to 1, achieving a 841.29% return compared to a 221.55% return for the S&P 500. The group of six, publicly traded, whole company Award recipients outperformed the S&P 500 by 4.8 to 1, achieving a 1100.727% return compared to a 227.56% return for the S&P 500. A summary of the results follows. 1988 - 1998 Publicly Traded Award Recipients
1988 - 1998 Publicly Traded Whole Company Award Recipients
Results of 1990-1998 Baldrige Site Visited Applicants Methodology: A hypothetical sum was invested in each 1990-1998 publicly-traded, site visited applicant's common stock in the year they applied for the Award or in the year they became public. The investment was tracked from the first business day of the month following the announcement of the Baldrige Award recipients (or the date when they began public trading, if it is later) through December 1, 1999. $1,000 was invested in each whole site visited company. For subsidiaries, the sum invested was $1,000 x the percent of the parent company's employee base the subunit represented at the time they received a site visit or at the time they became public as a result of a merger or acquisition by a new parent. The same total dollar amount was invested in the S&P 500 on the same day. Adjusting for stock splits, the value on December 1, 1999 was calculated. Information is reported four ways: all publicly-traded site visited applicants, all whole company site visited applicants, and each of those groups without the winning companies included. (Note: a company may be included multiple times if they received more than one site visit.) The 70 publicly-traded site visited applicants, as a group, outperformed the S&P 500 by approximately 2 to 1 achieving a 351.52% return compared to a 174.68% return for the S&P 500. The group of 14 whole company site visited applicants outperformed the S&P 500 by almost 2.2 to 1, achieving a 390.71% return compared to a 180.23% return for the S&P 500. Names of Baldrige applicants are kept confidential. A summary of the results follows. 1990 - 1998 Publicly Traded Site Visited Award Applicants
1990-1998 Publicity Traded Whole Company Site Visited Award Applicants
AWARD RECIPIENTS INCLUDED IN THE STOCK STUDY Whole Company Award Recipients ADAC Laboratories Subunit Award Recipients (with parent company) 3M Dental Products Division (1997) Armstrong Building Products Operations (1995) AT&T Consumer Communication Services (1994) AT&T Network Systems - Transmission AT&T Universal Card Services (1992) Boeing Airlift and Tanker Programs (1998) Cadillac Motor Car Company (1990) Corning Telecommunications Products Division (1995) Dana Commercial Credit Corporation (1996) GTE Directories Corporation (1994) IBM Rochester, AS/400 Division (1990) Merrill Lynch Credit Corporation (1997) Solar Turbines Incorporated (1998) Texas Instruments Incorporated - Defense Systems & Electronics Group (1992) The Ritz Carlton Hotel Company (1992) (First included in 1997 study) Xerox Business Products & Systems (1989) Xerox Business Services (1997) Zytec Corporation (1991) NIST 1999 Stock Study of Malcolm Baldrige
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