Results of Baldrige Winners' Common Stock Comparison
Third NIST Stock Investment Study February 1997

Methodology:

A hypothetical sum was invested in each publicly-traded winning company's common stock on the first business day in April of the year they won the Baldrige Award (or the date when they began public trading, if it is later); $1,000 was invested in each whole company, and for subsidiaries the sum invested was $1,000 x 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, it was the subunit whose progress was followed, not the parent company's. 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 2, 1996 was calculated. Information is reported two ways: all publicly-traded winners and only whole company Baldrige winners. The 16 publicly-traded winners, as a group, outperformed the S&P 500 by approximately 3 to 1, achieving a 324.9% return compared to a 111.8% return for the S&P 500. The group of five whole company winners outperformed the S&P 500 by greater than 3.5 to 1, achieving a 380.2% return compared to a 109.6% return for the S&P 500. A summary of the results follows.

1988-1995 publicly-traded winners:

1988-1995 publicly-traded, whole company winners:

Results of Baldrige Site Visited Applicants' Common Stock Comparison

Methodology:

A hypothetical sum was invested in each 1990-1995 publicly-traded, site visited company's common stock on the first business day in April of the year they were site visited (or the date when they began public trading, if it is later); $1,000 was invested in each whole site visited company, and 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 were site visited. The same total dollar amount was invested in the S&P 500 on the same day. (Winners of the Award are among the pool of site visited applicants, but are not considered in all cases.)

Adjusting for stock splits, the value on December 2, 1996 was calculated. Information is reported four ways: all publicly-traded site visited companies, 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 48 publicly-traded site visited applicants, as a group, outperformed the S&P 500 by 2 to 1, achieving a 167.5% return compared to a 83.3% return for the S&P 500. The group of ten whole company site visited companies outperformed the S&P 500 by more than 2 to 1, achieving a 185.9% return compared to a 83.8% return for the S&P 500. The group of 35 site visited applicants without the winners outperformed the S&P 500 by 68%, achieving a 138.3% return compared to a 82.0% return for the S&P 500. The six whole company site visited applicants without the winners did not outperform the S&P 500. This group achieved a 60.6% return, while the S&P 500 achieved a return of 80.8%. Names of Baldrige applicants are kept confidential. A summary of the results follows.

All 1990-1995 publicly-traded, site visited applicants:

All 1990-1995 publicly-traded, whole company site visited applicants:

1996 Stock Study Malcolm Baldrige National Quality Award Whole Company Winners:

Motorola, Inc.
Federal Express Corporation
Solectron Corporation
Zytec Corporation
Eastman Chemical Company
Subunit Winners: (The sum invested was $1,000 x the % of the parent company's employee base that the subunit represented at the time they applied)
Westinghouse Electric Corporation- Commercial Nuclear Fuel Division
Xerox Corporation - Business Products & Systems
Cadillac Motor Car Company (subunit of General Motors)
IBM Rochester
AT&T Network Systems, Transmission Systems Business Unit (now part of Lucent Technologies, Inc., Network Systems
Texas Instruments Incorporated - Defense Systems & Electronics Group (now part of the Systems Group of Texas Instruments)
AT&T Univeral Card Services
AT&T Consumer Communication Services (now part of the Consumer & Small Business Division of AT&T)
GTE Directories Corporation
Armstrong World Industries, Inc. - Building Products Operations
Corning Telecommunications Products Division






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Date created: 2/1/1997
Last updated: 8/14/2001