| Many
organizations use one or more of these common-place business policies,
which can result in very detrimental behaviors. Integrated Enterprise
Excellence (IEE) is a corporate performance management (CPM) system
that Chief Performance Officers and others can use to address these
elephant-in-the-room issues and orchestrate organizations toward achievement
of the three Rs of business; i.e., everyone doing the Right things,
doing them Right, at the Right time.
- Red-yellow-green
scorecards
can lead to resource draining fire fighting, where problem-identified
resolutions are often not long-lasting.
- Variance
to metric goals
can lead to playing games with the numbers and unhealthy behaviors.
- Lean
and Six Sigma projects
can lead to reported silo process improvement benefits, which do
not positively impact the big picture; e.g., we saved 100 million
dollars but nobody can find the money.
- The
balanced scorecard
alignment of metrics to strategies can lead to very subjective and
unstable metrics that are a function of leadership and economic-environmental
changes.
- Traditional
metric reporting
such as a table of numbers, stacked bar charts, and pie 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.
- Sarbanes
Oxley (SOX) and other organizational controls
are expensive and often do not prevent significant problems from
occurring in the future.
The Integrated Enterprise
Excellence (IEE) business governance management system addresses these
issues by providing the framework for healthy policy creation/execution
and a no-nonsense integration of scorecards, strategic planning, business
improvement, and control.
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The
Elephant in the Room – Corporate Performance Management
Issues and it’s Reinvention:Going Beyond Lean Six Sigma
and the Balanced Scorecard
Lean Six Sigma, Total
Quality Management (TQM), and other process improvement efforts
have helped organizations improve; however, these efforts often
occur in organizational silos, where the benefits are not felt
at the big picture executive level. Lean conference presentations
often describe how all company associates in a spirit of organizational
improvement need to continually identify and resolve waste-reduction
problems; i.e., overproduction, waiting, transportation, inventory,
over-processing, motion, and defects. Even though there can
be significant benefits from these efforts, Lean practitioner
conversations at those same conferences can be describing how
their organization eliminated much operational waste only to
find that executive management decided to close their facility.
There are some elephant
in the room business management governance policies that nobody
seems to openly discuss. These topics and discussions can include
red-yellow-green goal setting scorecards, variance to metric
goal tracking, strategic planning sessions often lead to statements
that are to have measurements and activities aligned to them,
silo improvement efforts that don’t impact the big picture,
control systems that are not effective (e.g., Sarbanes Oxley
– SOX – did not prevent our current financial crisis
from occurring.
A business system
to address the above issues and accomplish these objectives
is the Integrated Enterprise Excellence (IEE) system. In the
IEE system, strategy is not step one but set five in a nine-step
process. A Chief Performance Officer can use the IEE methodology
for their Corporate Performance Management system. |
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