Medrad Inc, a business of Bayer HealthCare, joined an elite group of only five companies that have received the prestigious Malcolm Baldrige National Quality Award more than once. The 2010 Baldrige Award for excellence in manufacturing is the top honor a U.S. company can achieve for performance excellence.  The manufacturer of computed tomography, magnetic resonance imaging, and interventional cardiology products also received the award in 2003.

On the heels of the announcement, the award-winning company also learned that as part of a restructuring plan at Bayer, it will likely have to lay off an unspecified number of employees by yearend. Medrad has about 1,400 employees at its headquarters and three manufacturing plants in the Pittsburgh region.

According to Bayer, in connection with its plan “to invest its resources even more systematically in growing the company and enhancing its innovative capability,” it plans to reduce its global headcount. Approximately 4,500 positions are to be cut across the company, with about 2,500 new jobs being created, particularly in the emerging markets.

Medrad spokeswoman Luanne Radermacher told the Pittsburgh Tribune-Review that Medrad employees learned last week the cost-cutting moves would begin within four to six weeks. 

"We're trying to make it (layoffs) as small as possible. It's certainly not our first option," in reducing costs, she said.

Medrad says it was chosen to receive the award following a rigorous site visit and review process from Baldrige examiners. During the site visit, eight examiners interviewed more than 700 of Medrad’s US and global employees and reviewed more than 5,000 pages of documentation to confirm the business practices described in Medrad’s application.

According to the company, its accomplishment represents years of value gained through the use of Baldrige criteria, which the company began to incorporate into its business in the ‘90s. Today, the criteria are a key input into what Medrad refers to as “performance excellence, or the relentless pursuit of continuous improvement that will exceed the expectations of customers, shareholders, and employees.”

The company’s employees are aligned on three key aspects of the performance excellence mindset, which include: unchanging core values that align the entire organization on delivering results for customers, employees, and shareholders; constant adaptability to changing needs that ensures continued success; and focus on innovation, which drives growth by improving the quality of healthcare.

These three aspects of Performance Excellence permeate every facet of Medrad’s business. They are values that all employees are encouraged to embrace and utilize in their roles at the company. By collectively working to understand and demonstrate these values, Medrad employees effectively practice Performance Excellence every day. This cross-company alignment is demonstrated by 2010 survey results that reveal 84% of Medrad employees feel that they understand how their work contributes to the company’s goals and objectives.

The Malcolm Baldrige National Quality Award is managed by the National Institute of Standards and Technology (NIST), in conjunction with the private sector. The award is traditionally presented by the president of the United States.