Leadership and management are not just about making decisions in the complex landscape of modern business; they are about making the right decisions with a clear vision and strategy.
The Integrated Enterprise Excellence (IEE) business management system offers a comprehensive approach to achieving sustainable success. This 9-step system provides a structured pathway to enhance operational efficiency, strategic effectiveness, and the bottom line.
Leadership and management courses and coaching provide managers with training that shows the IEE’s benefits that help them and their organization improve its bottom line.
Steps of the 9-step Leadership and Management System:
- Describe Vision and Mission: The foundation of any successful organization lies in a clear vision and mission. This step involves articulating what the organization aspires to achieve and the fundamental principles guiding its journey. It sets the manner for the organizational culture and provides a clear direction for all its members.
- Describe Value Chain: Understanding the organization’s current functional processes (Operations, HR, IT, Safety, Maintenance, Sales, Marketing, etc.) and each functional-process-output metric (from a high-level process response reporting not bounded by the calendar year) is vital. From an organizational value chain, one can see documented processes and their current metric responses (e.g., non-conformance rates, on-time delivery, lead time, and customer satisfaction). In IEE, the tracking of functional-process-output metrics is at a high 30,000-foot-level level instead of a table-of-numbers or red-yellow-green scorecard. A published article and video in a link show the benefits of this form of reporting, “KPI Management: KPI Metric Reports that Lead to the Best Behaviors.”
- Analyze Enterprise: A comprehensive analysis of the enterprise helps in determining the organization’s strengths, weaknesses, opportunities, and threats. This holistic view enables leaders to make informed decisions, considering internal and external factors that could impact the organization’s performance. The tools used in this step include statistical hypothesis testing (e.g., is there a difference between departments to determine departments to benchmark or improve) and non-statistical tools. Assessments in this step include competitive analyses, voice of the customer feedback, and Theory of Constraints (TOC). A TOC assessment may determine that the organization’s bottleneck is its sales and marketing process, not operational procedures.
- Establish SMART Financial Goals: Setting Specific, Measurable, Achievable, Relevant, and Time-bound financial goals is crucial. An example high-level economic metric response is EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) tracked monthly (not bounded by calendar year), where an organizational goal is to statistically increase mean monthly EBITDA by 3% in 9 months. This monetary goal is achieved by improving high-impact process procedures, as identified and shown how to improve from the following IEE system steps.
- Create Strategies: With a clear understanding of the organization’s vision, mission, value chain, and financial objectives, the organization’s next step is the development of targeted strategies. An effective strategy statement leads to work efforts that leverage strengths and opportunities while mitigating risks and weaknesses and aligning with the stated financial goal(s) of step 4.
- Identify High Potential Improvement Areas: This step involves pinpointing areas within the organization that offer the highest potential for improvement. Identifying these areas and their corresponding metrics to improve is crucial for developing an effective organizational Enterprise Improvement Plan (EIP) so that efforts align with achieving step 4 financial goals. What to avoid is setting goals that can lead to evil, if not destructive, behaviors, as Wells Fargo did with setting up fake accounts to meet a metric goal, resulting in three billion dollars of fines by the US government.
- Execute Improvement Projects: Implementing Lean Six Sigma and other improvement projects to enhance EIP metrics is a critical step. This process improvement effort is where the details of executing strategies are implemented, and operational improvements are made to drive organizational growth and efficiency.
- Assess the Impact of the Improvement Project: After implementing improvement projects, it’s essential to show the statistical significance of the project’s 30,000-foot-level metric improvement, which, via an EIP, shows project-metric alignment with the financial goal established in step 4. This evaluation helps in understanding the effectiveness of the strategies and projects undertaken.
- Maintain the Gain: The IEE system’s final step is ensuring that the improvements made are sustainable. It involves establishing mechanisms to monitor performance and maintain the gains achieved through the previous steps. The collective tracking of organizational 30,000-foot-level functional metrics automatically updated in its corporate value chain (with access 24/7 by all authorized individuals) has many benefits. Enterprise Performance Reporting System (EPRS) software is a means for accomplishing this task behind an organizational firewall.
Step 9 loops back to step 3 so that the whole organization can experience continuous improvement from a high-level vantage point.
The Integrated Enterprise Excellence system is a set of steps and a philosophy that intertwines leadership and management with a structured, data-driven approach.
IEE empowers leaders and managers to make decisions that are beneficial in the short term and contribute to long-term organizational excellence. By following these nine steps, organizations can navigate the challenges of the modern business world, steer toward sustainable success, and “reach the top.”
In addition, the IEE system resolves the problems of performance measurement tracking, process improvement, and business management methodologies described in about 40 web pages referred to as “Forrest Favorites.” Topics include highlighting issues and resolution to the described problems with red-yellow-green scorecards, table-of-numbers reporting, strategic planning, Key Process Indices (KPIs) reporting, Lean Six Sigma deployments, Lean Six Sigma improvement project selection, x-bar and R control charts, process capability Cp, Cpk, Pp, Ppk indices and p-charts.
Comparison of IEE to other systems
The IEE system has many benefits when compared to other methodologies, as this table describes.
More IEE Information and its Benefits to Leadership and Management
- Article about IEE: “What does the Integrated Enterprise Excellence Business Management System solve?“
- IEE System Patent Press Release: “Business Management System Patent Press Release“
- Patent about the IEE System: “Systems and Methods for Measuring and Reporting Enterprise Performance and Making Process Improvements“
- Book (Novel, available as an audiobook), Part one of two: “Management 2.0: Discovery of Integrated Enterprise Excellence (Management and Leadership System 2.0 Book 1)“
- Book (Novel, available as an audiobook), Part two of two: “Leadership System 2.0: Implementing Integrated Enterprise Excellence (Management and Leadership System 2.0 Book 2)“
- IEE Metric Reporting (Published Article and Video): “KPI Management: KPI Metric Reports that Lead to the Best Behaviors“
- IEE Enterprise (behind the firewall) Software: “Enterprise Performance Reporting System (EPRS) software“
- Free IEE 30,000-foot-level Predictive-Metric Reporting Cloud App
To see the application and benefits of IEE and its 30,000-foot-level metrics reporting (with a free app) to your data, contact Forrest Breyfogle [email protected]. You can schedule a video meeting session with Forrest through the link https://smartersolutions.com/schedule-zoom-session/.