An enhanced metric selection process and the reporting of these metrics is available through the Integrated Enterprise Excellence (IEE) Business Management System.
It is important that metric selection, KPIs report and performance reporting lead to the most appropriate behaviors throughout an organization. However, this often does not occur.
Traditional Metric Selection Process, KPIs Report and Performance Reporting
Key performance indicators (KPIs) may be used to evaluate organizational success relative to making progress toward strategic goals or repeated achievement of some level of operational goal. KPI selection is dependent upon an understanding of what is business important. KPI assessments can lead to identification of potential improvements opportunities and the implementation of associated process improvement efforts.
Organizations may use techniques such as the balanced scorecard for KPI selection; however, this and other approaches can lead to silo efforts and definitions that are based on strategies and organization charts that usually change with time.
Enhanced Metric Selection Process, KPIs Report and Performance Reporting
Content of this webpage is from Chapters 4 and 7 of Integrated Enterprise Excellence Volume III – Improvement Project Execution: A Management and Black Belt Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard, Forrest W. Breyfogle III.
What is needed is a metric selection process that is aligned with how business is conducted; e.g., an Integrated Enterprise Excellence (IEE) value chain. Goals and improvement objectives can then be created through execution of the nine-step IEE business management system1 (See Figure 1), which identifies performance metrics that are to be improved. With this system, a KPI metric improvement need pulls for the creation of an improvement project (i.e., steps six and seven of the nine-step system).
Figure 1: IEE nine-step Business Management System
In the IEE, system long-lasting KPIs are selected in step two through an organizational IEE value chain. An example value chain is illustrated in Figure 2. The rectangular boxes in this figure describe functions, while the oblong shapes describe metrics for these linked-to functions.
Figure 2: IEE Value Chain with Scorecard Metrics
Shaded areas designate processes that have sub-process drill-downs
IEE value chain KPIs are selected for functions addressing the metric-design objectives of quality, cost, and time. With the IEE value chain, here is a direct linkage of performance metrics with the processes that impact the performance of these metrics.
The functions in the IEE value chain can be clicked to process steps and associated documents. Metrics in the IEE value chain can also be clicked for the reporting of metrics. The IEE value chain can have automatic data collection and reporting using the Enterprise Performance Reporting System (EPRS) software.
IEE KPIs are reported using 30,000-foot-level Reports with Predictive Measurements.
The references and links below provide more information about these metric selection, KPIs report and performance reporting.
Additional Information about IEE Techniques for Metric Selection and Improvement
The following articles provide information about enhancements to traditional strategic planning and its execution:
- Performance Reporting (KPI Reporting): Issues and Resolution
- IEE Value Chain with Predictive Scorecards
- Stoplight Scorecards: Issues and Resolution
- 30,000-foot-level Reports with Predictive Measurements
- Business Management System: Issues and Resolution
- Enhanced Business Management System: Descriptive Videos
- Project Selection with Whole-enterprise Benefit
References
- Forrest W. Breyfogle III, Integrated Enterprise Excellence Volume II – Business Deployment: A Leaders’ Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard, Bridgeway Books/Citius Publishing, 2008
Contact Us to set up a time to discuss with Forrest Breyfogle how your organization might gain much from an Integrated Enterprise Excellence (IEE) approach for its metric selection process, reporting of these measurements, and their response improvement.