Business Management System

Organizations benefit when their business management system effectively integrates key performance indicators (KPIs) and other performance measurements with the processes that created them.

The Integrated Enterprise Excellence (IEE) 9-step system provides this integration through an IEE value chain. The IEE system, an enhanced, next generation business process management methodology, also offers predictive performance metrics and a road map for analytically determining targeted strategies and improvement efforts which benefit the big picture.

Businesses can use the IEE methodology framework to achieve much success with their Operational Excellence (OE) or a lean Six Sigma deployments.

The 5 book Integrated Enterprise Excellence series provides the road maps and details to create an enhanced next generation business process management (BPM) system for organizations to enhance both their strategic and day-to-day management practices.

The Enterprise Performance Reporting System (EPRS) software provides transparent predictive performance reporting that is integrated with the processes that created them through a clickable IEE value chain.

Strategic Planning Process in an Enhanced Business Management System: Description and Webinar

Does it appear that some strategic plans sound more like vision statements than actual strategies? It may be because many strategic plans are generated by committees using brainstorming and other opinion based tools. These are considered Lean Six Sigma DMAIC measure-phase tools. Have you considered using the define-phase concepts instead? In the webinar we will walk through the use of many DMAIC define-phase tools along with a few others that you can use to support a strategic planning session for your organization. You will be able to quickly see that these Lean Six Sigma tools could be used to eliminate the vision-type strategies from ever making it out of the session.

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Enhanced Lean Implementation Roadmap

Lean, Lean Six Sigma, total quality management (TQM), and other techniques have helped companies improve processes through the execution of projects. However, much of these efforts have resulted in siloed process improvements that don’t benefit the enterprise as a whole. Lean Six Sigma and other process improvement programs have striven to improve their project selection process; however, often the gains from those projects have been minimal. It seems that what needs to be done to resolve this issue is for process improvement efforts to become more integrated within the overall business system (e.g., scorecard creation/management and strategy development/execution.) This article describes is a system for accomplishing this orchestration, where lean and Six Sigma tools enhance the overall business system so that the organization moves toward achieving the three Rs of business: everyone doing the right things, the right way, at the right time.

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Enhanced Process Improvement Methodologies for Business and Projects

There is often much contention between Six Sigma and lean communities. Lean disciples often believe that their methodologies should come first or be above Six Sigma, relative to organizational application, while others with a strong Six Sigma background propose just the opposite.Many process improvement programs now refer to their deployments as lean Six Sigma; however, these programs still tend to consider the tools in isolation without a true tool-integration road map. To address this integration issue, an examination of the measurement that is to be improved can provide insight into which tool or tools would be most applicable for any given situation.

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Executing Theory of Constraints Principles in a Business Management System

In lean Six Sigma and lean kaizen event programs, improvement projects are often selected from a list of potential opportunities that were determined from a brainstorming session. This effort might provide some initial gains when starting a deployment; however, it typically stalls out and the process improvement teams are laid off when times get tough. The reason for this downsizing is that often process improvement efforts are not expended in areas where the overall enterprise benefits the most; e.g., focusing on sales and marketing when excess production capacity is available. This article walks through some of the frequent short-comings of Theory of Constraints and how it can best be applied to the enterprise.

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Enhanced Business Strategy Model for C-Suite Leadership

Executive leadership needs to assess its business system, especially in times of economic challenge, to determine if its current management system can handle the increasing complexity of business. What organizations need is an enhanced methodology that provides the framework for leadership to systematically understand and manage its organization through an ever-changing environment. This paper describes a 9-step Integrated Enterprise Excellence business management governance system. This system is more than a problem solving project execution system such as Lean Six Sigma or Lean kaizen events. Provided in this 9-step methodology is a system that goes beyond the balanced scorecard and truly integrates (predictive) scorecards, (analytically/innovatively determined) strategic planning, and business process improvement efforts so that the business as a whole benefits and moves toward achieving the three Rs of business; i.e., everyone doing the Right things and doing them Right at the Right time.

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Enhanced Approach to Address Strategic Planning Issues and Challenges

Key Performance Indicators (KPI’s) might be created for tracking how well an organization is moving toward achievement goals aligned to executive-retreated-worded strategies. The balanced scorecard and hoshin kanri are techniques that are to then provide a vehicle for aligning organizational-chart work efforts to these executive retreat strategies and goals. Traditional management systems might also use red-yellow-green scorecards or dashboards to assess how well every business area is doing relative to achieving their individual business goal. However, what is the implication of this business management approach? Does it lead everyone in the organization to do what is best for the business as a whole? What is really important for success is that the business moves toward achievement of the 3 Rs of business; i.e., everyone doing the Right things, and doing them Right, at the Right time. This whitepaper describes a Corporate Performance Management (CPM) system that helps organizations move toward achievement of the 3 Rs of business through a no-nonsense framework for: establishing a predictive value chain scorecard system; incorporating effective analytics using such tools as Theory of Constraints (TOC) to determine where improvement efforts should focus; conducting analytically/innovatively strategic planning efforts to identify targeted areas for improvement that help the entire business; utilizing a business improvement system so that the enterprise as a whole benefits. This Integrated Enterprise Excellence (IEE) business management system goes beyond the balanced scorecard and a Lean Six Sigma project-based improvement system.

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Enhanced Corporate Performance Management Systems Framework

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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Enhanced Enterprise Performance Management System

The Enterprise process DMAIC roadmap provides a 21st century governance system that truly aligns scorecards, strategic planning, improvement plans, and control so that the enterprise as a whole benefits. E-DMAIC goes beyond Lean Six Sigma and the Balanced Scorecard. This view of the way a company functions can change from a focus on doing whatever it takes to meet the quarterly financial goals (the Enron approach) to improving performance at all levels so the overall output always reflects the maximum potential for an entire enterprise.

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Enhanced Corporate Governance Model System

The American Management Association (AMA) describes a 21st-century governance system and how a company benefited from its deployment. The 9-step framework of the described Integrated Enterprise Excellence (IEE) business management system provides a guiding-light roadmap for navigating through and beyond these challenging times. IEE provides a long-lasting system for structurally integrating healthy policy creation and deployment with a systematic blending of scorecards, strategic planning, business improvement, and control so that the enterprise as a whole benefits. IEE system goes beyond many traditional and recent management techniques such as the balanced scorecard. Acknowledgment: Posted with permission from the American Management Association as published in the Winter 2008 Edition of their MWorld Magazine.

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Creation of Deming System of Profound Knowledge Framework

Total Quality Management (TQM), Lean, and Lean Six Sigma are problem-solving methodology examples. Each of these problem solving approaches has strengths and weaknesses; however, these techniques are not an organizational governance system. Some regard governance as a collection of separate processes, or as a component of broader management or leadership processes. A more inclusive governance definition is the need for consistent cohesive management policies, processes and decision-rights throughout the enterprise. Ideally this governance system should incorporate what W. Edwards Deming referred to as System of Profound knowledge. An Integrated Enterprise Excellence (IEE) roadmap system for this accomplishment is described in a 4 book-volume series.

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