Article – Corporate Performance Management: The Integrated Enterprise Excellence System

Described in the article”Corporate Performance Management: The Integrated Enterprise Excellence System“are some elephant-in-the-room business scorecard policies that are not often openly discussed but can result in very unhealthy behaviors.

Also described in the article is a business system resolution to these issues, which goes beyond many traditional business practices, including the Balanced Scorecard and project-based process improvement techniques such as Lean Six Sigma.

A summary of issues that this system and the article address are:

- Organization scorecard metrics are often created through examination of the org chart, which can result in measures that are in silos relative to the big picture and change when there is a re-organization.

- Strategic planning practices where high-level strategies are created in an executive retreat. Often these strategies are opinion based with no formal blending of enterprise analytics with innovation in their creation. In addition, strategic wordings can lead to much interpretation differences of opinion as to how this created organizational focus should be executed when cascaded throughout the organization.

- Strategic planning metrics, as part of techniques such as hoshin kanri, are created so that there is alignment with executive-retreat-created plans and is then cascaded throughout the organization with goals. This can involve a great deal of work. Consider what happens when there is a re-organization or a change in leadership or in the economic environment. This can result in much metric-creation rework and associated goals having to be redone.

- Traditional metric reporting often has a table of numbers, pie charts, or stacked bar charts. These charts are not predictive and have a similar decision-making view as to driving a car by only looking at the rear view mirror; i.e., an unhealthy behavior.

- Variance to metric goals can lead to playing games with the numbers and behaviors that can be destructive for the business as a whole.

- Red-yellow-green scorecards can lead to resource draining firefighting, where resolutions are often not long-lasting.

- The balanced scorecard decision to choose metrics after selecting strategies can lead to very subjective and non-long-lasting measurements, which are a function of leadership and economic-environmental changes.

The Integrated Enterprise Excellence (IEE) system, with its predictive scorecard and other attributes, resolves these issues and gets organizations out of the firefighting mode, where common-cause issues are often reacted to as though they were special cause.