Performance measures and business scorecards are to lead to the most appropriate activities or non-activities. However, traditional report-outs such as a table of number, red-yellow-green scorecards, and pie charts can lead to very unhealthy, if not destructive, behaviors. Traditional business scorecards and business dashboards do not view metrics as the result of processes. Most conventional Key Performance Indicator (KPI) and other performance reports do not include process variability.
The short comings of traditional performance measures and business scorecards is overcome with an Integrated Enterprise Excellence (IEE) approach to organizational performance measurements and improvements. In IEE, a 30,000-foot-level operational metric report-out assess process stability from a high-level point of view. With his form of performance report-outs, when a process is stable a prediction statement can be made.
Special Cause vs. Common Cause. Many businesses react to these two types of variability in the same way. Reacting to common cause variability as though it were special cause can lead to much resource-draining firefighting. There is a better way.
Enhance Approach to Stop Fighting Fires in Business Read More »
An enhanced business performance metrics management system is available through the Integrated Enterprise Excellence (IEE) business management system.
Enhanced Business Performance Metrics Management Read More »
