An enhanced performance dashboard template is available through the Integrated Enterprise Excellence (IEE) Business Management System. The IEE 30,000-foot-level reporting process provides predictive analytics for the creation performance dashboards.
With use of a performance dashboard template, organizations gain insight to their business when measurement statements provide predictive analytic reporting. When an analytic prediction statement is not desirable with this form of performance dashboard template process for reporting and there is a desire to make the measurement better, the process that is associated with that metric needs to be improved.
Businesses benefit when this form of performance dashboard reporting is used throughout the organization. When this is done, these metrics can be viewed and analyzed jointly to determine which performance metrics, if improved, provide the most value to the bottom-line and customer satisfaction for the entire organization. One could consider this performance dashboard template process approach to be a metric-performance-improvement-need pull for process improvement project creation.
When there is this form of 30,000-foot-level performance dashboard reporting, everyone can easily get a high vantage point view of how the organization is performing. Such reporting provides the vehicle for accomplishing this objective, not unlike an airplane in flight view of the earth’s terrain. Organizations benefit when they use this form of reporting for their key performance indicators (KPIs).
Performance Dashboard Template Process: Two-steps for Creation
There are two steps in this IEE performance dashboard template process:
- Step number one of this two-step process assesses process stability from the high-level, 30,000-foot-level view point. Whenever one can conclude that there is a current region of stability, a predictions statement can be made.
- Step number two provides a statement about what is predicted for the stable processes. This prediction process is illustrated in the figure where there was a specification value of 2.2 and the process was considered to be not performing satisfactorily when there was a response below this value.
With this performance dashboard reporting, a statement is made at the bottom of the chart that describes the current operational response of the process and what is expected from this process in the future relative to its output level. For the illustration below, one would have the expectation from this process that approximately 33% of the time non-conformance relative to the 2.2 specification would occur unless something changed in the process, either positively or negatively.
IEE 30,000-foot-level Scorecard for Continuous Data with a Specification of 2.2
Some of the mechanics of creating the 30,000-foot-level performance dashboard will next be discussed.
Performance Dashboard Template Process and Process Predictability
When determining whether a process is predictable or not, the process needs a statistical evaluation to determine whether the process is stable or not stable. This undertaking is accomplished through the application of an individuals control chart. For this performance dashboard system, data are monitored from a 30,000-foot-level aspect. This high-level form of performance dashboard reporting can assess from a high-level point of view whether there has been an over-time change in the process response. If there has not been any statistically-determined change over time, then one would report that the process is stable.
When there is recent stability from the process, data from the most current region can be considered a random sample of what we might expect in the future, if nothing fundamentally changes in the process. For continuous data, a probability plot is included in the performance dashboard. This plot describes the current level of process performance and provides a predictive statement. Examination of the probability plot can provide much useful information. Some of these performance dashboard characteristics will now be described.
The probability plot’s x-coordinate provides a quantification of the process’ output response magnitude in its latest region of performance, while percent-less-than is quantified on the y-coordinate. One highlight of probability plotting is that it is not a requirement that data follow a normal distribution before making any prediction statement. The scale on the y-coordinate scale depends on the distribution type that is being modeled. For example, a probability plot might be modeling data that can be represented by either a normal distribution or log-normal distribution in a performance dashboard system.
When data in a probability plot follow a line that is straight, one can behave as though the data could be modeled by the distribution that the probability plot’s y-coordinate distribution models. When this is the case, estimation for the percent of population below a specification limit could be undertaken through the examination of y-coordinate percentage value for the desired specification-limit x-coordinate. An example of this estimation is shown in Figure 1.
Some technical training is required to create 30,000-foot-level metrics as part of a performance dashboard; however, it is not difficult to interpret the chart. In this reporting format, a below-the-chart statement is created which describes the current state of the process. For this chart example, one can conclude predictability of the process, where there is an approximate non-conformance rate of 32.8%. What this statement indicates is that we expect that about 1/3 of the time the current process response level will be below the desired goal of 2.2.
Predictive Analytics Performance Dashboard Benefits
With this performance dashboard template process for reporting, organization can increase their understanding about the process. For this situation, we learned through this predictive performance dashboard process that common-cause variation exists. When this is understood, organizations also knows that the only way to achieve long-lasting improvement performance is through process enhancement. Through this use of this predictive performance dashboard methodology, someone would need to be assigned to make improvements to the process that could impact the performance of this performance measurement. Since this improvement effort could require a significant amount of resources, organizations need to be cognizant of whether this endeavor is worth the amount of resource that would be needed to make the enhancements relative to other enterprise improvement opportunities.
With this performance dashboard system, the functions of the IEE value chain along with its accompanying predictive performance measures will have basic consistencies even when there are changes in leadership and acquisitions occur. This performance dashboard system with the other aspects of the IEE business management system can be the means for creation of Jim Collins; Level-Five System. This performance dashboard system can provide a baseline assessment from which organization-as-a-whole targeted strategies can be formulated and improvements accomplished, as a part of the IEE 9-step business process management system.
Predictive Performance Dashboard Implementation
In the following list, the third item was addressed relative to performance dashboard. Additional considerations for addressing our overall objective of creating a performance measurement system are the items listed as one, two, and four:
- Developing performance metrics
- Performance management system
- Performance dashboard
- Enterprise performance management software
For integrating performance measurements into a business management system see:
IEE Enhanced Performance Dashboard Template Process
The IEE system addresses the business scorecard and improvement issues that are discussed in the 1-minute video:
A description of the IEE Business Management System and its benefits is provided in the article “Positive Metrics, Poor Business Performance: How does this Happen?”
“I don’t know where we would be right now (because of the economy) if we had not invested time and energy in our efficiencies and learning to look at our business at a much higher level.”
Contact Us to set up a time to discuss with Forrest Breyfogle how your organization might gain much from an Integrated Enterprise Excellence (IEE) Business Process Management System and its enhanced performance dashboard template process.