An enhanced performance improvement process is available through the Integrated Enterprise Excellence (IEE) business management system. With IEE, performance improvement efforts are determined analytically so that the big-picture benefits.
Jump-Starting Performance Improvement
The linked-to short PDF articles below address the need for the following when initiating an organizational performance improvement program:
- Satellite vs 30,000-foot Metrics
- Anticipating Resistance
- Understanding Non-Conformance
- A Healthy View Of Numbers
- Introduction (to process improvement implementation template)
Traditional Process Improvement Methodology: Lean Six Sigma
Businesses large and small have undertaken Lean Six Sigma to improve their organizations’ performance.
Too often, however, organizations are viewing their lean Six Sigma implementation methodology through myopic lenses. Asked how they deploy Lean Six Sigma, they describe initiatives that reduce defects or listen better to the voice of the customer.
Asked how the initiatives affect the corporate bottom line, though, too few can provide concrete data.
Enhanced Performance Improvement Process: Business Scorecard Metrics
For any organization to be successful, it’s necessary for meaningful metrics to be taken at two levels and reported from a process output point of view.
An Integrated Enterprise Excellence (IEE) Business Management System provides this form of reporting both at both the operational and financial level.
The IEE two levels of metric reporting are:
- Measurement of operational level components throughout the enterprise via 30,000-foot level metrics, and
- Measurement of the factors that affect overall corporate financials, or satellite level metrics.
Both 30,000-foot-level metrics and satellite level metrics assess the overall enterprise system ,where there are no calendar boundaries.
Enhanced Performance Improvement Process: Integrated Enterprise Excellence
The IEE system consists of nine steps:
IEE Business Management System step 2 provides an IEE value chain, which describes what an organization does and how it measures what is done.
An example IEE value chain is:
In an IEE value chain (IEE system step 2)
- Rectangle boxes: Describe functions where primary functions are connected with arrows and support functions are not. These functional boxes can provide drill downs to the details of execution.
- Oblong boxes: Describe 30,000-foot-level metrics associated with functions relative to quality, cost, and time.
- Drill downs of processes and automatic updates for 30,000-foot-level metrics: Provided through Enterprise Performance Reporting System (EPRS) software.
A 30,000-foot-level report-out addresses the firefighting issues (or playing games with the numbers) that often occur with traditional scorecard report-outs. In the following figure of an actual red-yellow-green (r-y-g) scorecard, this report was transitioned to a predictive analytics 30,000-foot-level reporting.
This r-y-g report-out transitioned many times between the colors where a red to green transition could be interpreted as an improvement was made. However, the 30,000-foot-level reporting below indicated that no improvements were made to the process and the red to green transitions were simply from common-cause variability.
Unlike the r-y-g scorecard, the 30,000-foot-level chart indicates a common-cause variability non-conformance rate of about 33%. If this amount of non-conformance is not acceptable, a process improvement effort needs to be undertaken.
Enhanced Performance Improvement Process: IEE Enterprise Improvement Plan (EIP)
In the 9-step IEE system analytics are used to determine where to focus improvement efforts so that the enterprise as a whole benefits. The result of the steps from the IEE 9-step roadmap can then be displayed in an IEE Enterprise Improvement Plan (EIP).
In an EIP presentation, the columns represent steps four through seven of the 9-step IEE system.
An example EIP presentation is:
The circled area in the above EIP, would be an example of a focus performance improvement area that had been identified which should positively impact the business as a whole.
The demonstration that an EIP targeted performance improvement effort was successful via process improvement efforts is that its 30,000-foot-level performance metric transitioned to an enhanced level of performance.
An example demonstration of a 30,000-foot-level chart transition is:
Enhanced Performance Improvement Process: IEE Business Management System
IEE addresses the business management system scorecard and improvement issues described in a 1-minute video:
Automatic updates to IEE 30,000-foot-level metrics can be obtained through Enterprise Performance Reporting System (EPRS) software.
The IEE system is described in the article, “Positive Metrics, Poor Business Performance: How Does this Happen?”
Details for implementing the IEE system is provided in a 5-book series:
Enhanced Performance Improvement Process: Next Steps
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 performance improvement process methodology.
Articles: Four Principles for Jump-Starting Performance Improvement
The PDF articles below provide more information on initiating a performance improvement system in an organization:
Four Principles for Jump-Starting Performance Improvement – Satellite vs 30,000-foot Metrics
Four Principles For Jump-Starting Performance Improvement – Anticipating Resistance
Four Principles For Jump-Starting Performance Improvement – Understanding Non-Conformance
Four Principles For Jump-Starting Performance Improvement – A Healthy View Of Numbers
Four Principles For Jump-Starting Performance Improvement – Introduction