Q&A with President and CEO of Northeast Delta Dental Tom Raffio

Tom Raffio celebrates his 30th anniversary this year as president and CEO of Northeast Delta Dental, a taxexempt, nonprofit insurance company based in Concord that has been in business for more than 50 years.

Raffio might be best known publicly in New Hampshire for his support of charitable organizations and the state’s running community. Northeast Delta Dental sponsors running events throughout the year, including the Delta Dental/Elliot Corporate Road Race in downtown Manchester, a 5K scheduled this year for Aug. 7.

Last year, Northeast Delta Dental was selected to receive the Malcolm Baldrige National Quality Award, one of five organizations in the U.S. to receive the honor and the first ever in New Hampshire.

Q. We should start with an amazing accolade that the company recently received, which is the Baldrige National Award, which is no small feat. Let’s talk a little bit about that and the rigorous process it entails.

A. The National Malcolm Baldrige Award is a pretty big deal, although it’s really not that well known. I’ve been at this journey literally since I arrived in New Hampshire in 1995, so it’s a long-term process. Why it’s important is not necessarily to get an award; it’s really for continuous improvement in your business organization. For example, we’re known for answering our calls within 25 seconds with a human being.

The Baldrige framework provides processes and tools so you can achieve the goals that are going to make you a better business. It was wonderful being down in Baltimore on March 30 and 31 and the first week in April to share the best practices with the other winners.

We’re the first New Hampshire company to receive the award. There were only four other organizations in 2024 that won the award. We had an organization from Oklahoma, two from Texas, and then the city of Henderson in Nevada also won the award. It was quite a happening place, being down in Baltimore with all of the quality gurus from across the country.

Q. It’s worth noting that the award is named after Malcolm Baldrige Jr., the 26th U.S. secretary of commerce. Tell us about the significance of that and what the award means to you.

A. The award was established in 1987. People of my generation might remember in the ‘80s and early ‘90s how automakers in the United States were really kind of falling behind Japanese manufacturing. The Reagan administration noted that we really had to improve quality. Malcolm Baldrige, then the secretary of commerce, established criteria with seven categories such as leadership, strategic planning, human resources, data management. And they established this framework to improve the quality of manufacturing organizations, the automakers and so forth.

The early winners of the award tended to be companies like Motorola, big companies that people have heard of. It’s since evolved where small and medium-sized organizations can win the award by focusing on the framework.

Q. When you talk about 25 seconds to respond to a call and a live human being responds, that seems to me has a lot to do with Delta Dental’s 99% customer retention rate.

A. Group insurance primarily is our business. It’s like baseball. What have you done for me lately? Most benefits contracts are year to year. You bring on a customer in January, and by September of the following year, you’re trying to renew it. In our industry the average is 80%. In group dental insurance, it might be like 87%. We retain 99% of our business based on service and also innovation. One of the things that the judges noted is that we’re pretty innovative for an insurance company. We’ve established a program called Health Through Oral Wellness where, based on risk assessment, you may be entitled to three or four cleanings a year when you go to the dentist as opposed to two.

Q. You’ve said that in order to be a great community partner, you need to be profitable. Would you say the Baldrige strategy helps to drive profits?

A. Yes. The one caveat I would say is you have to look at the long term. When you embark on the Baldrige journey, in year one you might have to make some investments that might limit your profits. But starting in the years two, three and four is when your profitability is going to increase. You can’t look at it as an immediate addition to profits. But if you stick with it over a five-year period, it will definitely improve your profits.

When you’re successful that way, then you can give back to the community. And then, of course, it feeds on itself because, getting back to the 99% account retention, I’ve had a number of business leaders tell me, ‘You know, you weren’t necessarily the lowest price, but we love your service and we love your engagement in the community, which is why we renewed with you.’ It’s a great circle.