"I recently had a discussion with a team from one of the largest
consulting firms who were brought in to create scorecards for our
corporation. Their proposal wasn't even close in value to the IEE
approach. What was presented to me were three pages with a smattering
of up-and-down, red-yellow-green arrows - for continuous data! And
the metrics were a conglomeration taken from all different levels.
They couldn't even tell me what the metrics meant. With the IEE approach,
my leaders can get information to help them set targets and make decisions
. . . and actually pinpoint where to target our improvement efforts.
That's the approach I'm going to drive through my organization."
E. M., (at a top 10 pharmaceutical company)
Are
you reporting performance using the same metrics displayed in the
same way as everyone else and expecting to get better insight than
your competitors? You can do better! Measurements which stimulate
the most appropriate behavior need to be management’s eyes to
the process. Measurements need to provide an unbiased process performance
assessment that leads to the 3 Rs of business; i.e., everyone does
the Right things, and doing them Right, at the Right time.
When process output
performance is not accurately seen and reported relative to a desired
result, there is not much hope for making long-lasting improvements.
Generic measures for any process are quality, cost, and delivery.
Most processes need a balanced measurement set to prevent optimizing
one metric at the expense of overall process health; e.g., sacrificing
quality to meet on-time delivery targets. Metrics can also drive the
wrong behavior if conducted in isolation from the overall enterprise
needs.
Good metrics provide
decision-making insight that lead to the most appropriate conclusion
and action or non-action. The objective is the creation of an entity
that is measurable, auditable, sustainable, and consistent. Characteristics
of effective and reliable metrics are:
- business alignment
- honest assessment
- consistency
- repeatability
and reproducibility
- actionability
- time-series
tracking
- predictability
- peer comparability
However, traditional
performance metric reporting such as tables of numbers, pie charts,
stacked bar charts, and red-yellow-green scorecards can fall short
of meeting these good-metric objectives.
Our Integrated
Enterprise Excellence (IEE) system provides a roadmap that begins
with the creation of an effective long-lasting, business functional
process map in conjunction with non-siloed predictive-reporting measurements.
When this value chain is then integrated with strategy creation, goal
setting, and business improvement efforts, organizations can move
toward achievement of the 3 Rs of business. This metric reporting
system and its business system integration are described in "Creation
of Effective Organizational Predictive Metrics that Lead to the 3
Rs of Business."
IEE performance
reporting and scorecards are described in our workshops and books.
When facilitating organizational scorecard creation, we help determine
not only which metrics to track but also how predictive statements
can be reported. To determine how your organization might benefit
from this next-generation scorecard system, call us at 512-918-0280.
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