Much can be gained when a Porter value chain model is created so there are Integrated Enterprise Excellence (IEE) predictive scorecards.
With an IEE approach for creating an enhanced Porter value chain, organizations can experience significant financial benefits when futuristic reported statements lead to improved organizational behaviors.
With an IEE approach to implementing a Porter value chain, an operational excellence framework is created where the output of a process (Y) is linked to its inputs (x); i.e., in the Y=f(x) equation. A means to accomplish this is described in the below PDF Integration Enterprise Excellence (IEE) operational excellence framework article, “IEE value chain with predictive scorecards”.
With the methodology described in this article organizations can link predictive scorecards with the processes that create them.
An illustration of the transformation from red-yellow-green scorecards to IEE 30,000-foot-level predictive scorecards in this operational excellence framework is:
A traditional red-yellow-green scorecard can lead to much firefight common cause variability as though it were special cause. Benefits of the IEE (as described in the PDF below) includes:
- Metric process output reporting can be linked to their processes using an IEE value chain.
- Improvement project that are analytically/innovatively determined.
- Clickable value chain predictive scorecards that can automatically be updated.
- Process metric improvement need (where there is an owner) pulls for the creation of a process improvement project.
- Improvement project selection so that the enterprise as whole benefits.
Creating an Operational Excellence Framework
The following links provide information about enhancements to traditional strategic planning and its execution:
- Enhanced Business Operational Excellence Management System
- Application Descriptive Videos
- One minute IEE 2.0 Benefits Video
- Improvement Project Selection with Whole-enterprise Benefit
For more information on how to create an effective operational excellence framework, download the article titled “IEE value chain with predictive scorecards” written by Forrest Breyfogle.Download