These enhanced predictive analytics examples illustrate the power of providing futuristic statements in business management system scorecards and how to create this form of enhanced performance measurement reporting.
Enhanced Reporting Techniques for Scorecards are Illustrated in these Predictive Analytics Examples
Traditional scorecard such as a table of numbers and red-yellow-green scorecards are not predictive and can lead to unhealthy, if not destructive behaviors. An Integrated Enterprise Excellence (IEE) business management system approach can lead to predictive analytics scorecards. With IEE traditional scorecard reporting is avoided.
Traditional scorecard report what happened in the past. What is needed is predictive analytic scorecards that is not unlike looking out the windshield of the car rather than driving by only looking at the rear view mirror. If this is not done, there can be occurrences that are “bad”.
The IEE 30,000-foot-level predictive analytics approach addresses this issue. In the actual red-yellow-green scorecard below, one would conclude that improvements were made when colors changed from red to green. However, the 30,000-foot-level report-out shown below this traditional scorecard indicates nothing changed and the process has an approximate 32% non-conformance rate.
If a 30% level of non-conformance is not satisfactory, the process needs to be improved. Addressing all the ups and downs from a process using red-yellow-green scorecards can lead to massive waste in resources from firefighting common-cause variability as though it were special cause.
The published article PDF linked-to below provides an example of the benefits and conversion to IEE 30,000-foot-level predictive analytics reporting.
Eight additional example of converting traditional scorecards (actual, not fabricated situations) to 30,000-foot-level reporting is available by clicking here.
Contact Us to set up a time to discuss with Forrest Breyfogle how your organization could gain much from an IEE application of the described predictive analytics examples techniques in your organization.