Enhanced Enterprise Improvement System: Description and Webinar

An enhanced enterprise improvement system is provided  through Integrated Enterprise Excellence (IEE). IEE integrates predictive analytic scorecards with the processes that created them. IEE provides  analytical methods for determining where to focus improvement efforts and the how-to-execute details for making enhancements so that the  big picture benefits.

Enhanced Enterprise Improvement System: Description (Need for Predictive Analytics Scorecards)

Leaders may receive a monthly report-out as a table of numbers from which decisions relative to enterprise improvement system issues are to be enhanced (the shown table of numbers is an actual reported scorecard):

 

enterprise improvement system table of numbers scorecards

 

But what can really be determined from this form of reports that are to lead to the most appropriate actions?  One might conclude very little.

Or, leadership may receive a red-yellow-green (r-y-g) scorecard, as shown below (actual, not fabricated, scorecard).  But what can be achieved with this form of reporting?  Often firefighting occurs where natural process variation can be treated as though it were special cause.  What is needed is a replacement to traditional scorecard reporting which does not include process variability. This is the first step for the achievement of an enhance enterprise improvement system.

 

enterprise improvement system red-yellow-green scorecard

 

An IEE 30,000-foot-level metric reporting methodology addresses this need.  The IEE 30,000-foot-level metric approach is a two-step process:

  1. Assess whether the process is stable from a high-level point of view.
  2. For stable processes, provide an predictive analytic statement about what can be expected in the future, if nothing were to change.

An illustration of a 30,000-foot-level replacement for a r-y-g scorecard is:

 

enterprise improvement system -- scorecard transition

 

In the above figure, the r-y-g scorecard indicated that the process changed from bad (red) to good (green) several times; however

  • Step 1 of the 30,000-foot-level system indicated that there was no process change over the observed period of time
  • Step 2 of the 30,000-foot-level system uses the analytics of a probability plot to estimate what can be expected in the future.
  • A report-out of the prediction from the probability plot is reported at the bottom of the 30,000-foot-level chart; i.e., estimate 32.6% non-conformance rate for this process output.

To have an effective enterprise improvement system, an organization must view their organization as a system of processes, where scorecard outputs  of these processes are reported from a process point of view.  If this is not done, how will one know if a an enterprise improvement was really accomplished when a change was made to a process?   

 

Enhanced Enterprise Improvement System: Description (Need for Predictive Analytics Scorecard Reporting Throughout Business)

The IEE system value chain describes what an organization does and how it measures what is done.  The IEE value chain integrates 30,000-foot-level reporting with the processes that created the metrics.

An example IEE value chain is:

 

enterprise improvement system value chain

 

In an IEE value chain:

  • Rectangular boxes can be drilled down to process details.  The primary functions of an organization are connected by arrows.  The support functions are not.
  • Oblong icons are the metrics for the functions relative to quality, cost, and time.  These metrics can be drilled down to 30,000-foot-level report-outs.

Enterprise Performance Reporting System (EPRS) software provides the means to created an enterprise value chain that is clickable with automatic updates for 30,000-foot-level metrics, and more.

 

enterprise improvement system software

 

Enhanced Enterprise Improvement System: Description (Need for Enhanced Business Management System)

IEE is an enhanced business management system that consists of nine steps:

 

enterprise improvement system -- IEE 9 steps

 

Step 2 of the IEE system is the value chain that was described previously.  Satellite-level metrics are financial metrics that have a similar reporting to 30,000-foot-level report-outs.

Steps 3 – 7 lead to enterprise improvement efforts that will benefit the enterprise as a whole.  An Enterprise Improvement Plan (EIP) is a means to show where improvement efforts will occur that are to improve strategically determined 30,000-foot-level metrics that will benefit the business as a whole benefits.

An example EIP is the following figure, where the steps of the IEE system for enterprise improvement are noted:

 

enterprise improvement system EIP

 

An IEE EIP provides an organizational visual of where to focus its enterprise improvement so that the big picture benefits.

More information about the IEE system is available in the following recorded webinar (no sign-in is required):

 

Enhanced Enterprise Improvement System: Webinar

Competitive pressures are forcing executives to react faster to changing business conditions and customer requirements. Line managers, and decision-makers need to be able to monitor and manage day to day business operations with access to continuously updated performance metrics to make faster decisions and take immediate action. In short, what’s needed is a performance measurement system.

 

 

 

Enhanced Enterprise Improvement System: Resources

IEE addresses the business scorecard and enterprise improvement issues described in a 1-minute video:

 

 enterprise improvement system video

 

A description of IEE is provided in the article “Positive Metrics, Poor Business Performance: How Does this Happen?

 

positive metrics poor business performance article about enterprise improvement system

 

A 5-book set provides all the details about implementing IEE:

 

Lean Six Sigma 2.0 Black Belt Free Training Material and Guide

 

 

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 enterprise improvement system.