An enhanced predictive analytics scorecard approach is available through the Integrated Enterprise Excellence (IEE) Business Management System. With this approach, 30,000-foot-level report-outs provide predictive analytics for business scorecard measurements.
Creation of a Predictive Analytics Scorecard: Description
Traditional scorecards can set targets for a certain period of time; e.g, monthly. If a measurement objective is not met, a “why” investigation can result. However, often individual weekly, monthly, or quarter time-period differences are the result of “normal” up and down variation of a system’s response.
A red-yellow-green (r-y-g) scorecard may “toggle” through the colors when, from a process point of view, nothing has really changed. This “false indication signal” potential issue with r-y-g scorecards is highlighted in the following figure (note: this r-y-g scorecard is an actual company scorecard response). In this illustration, a non-conformance rate of about 32.6% is reported at the bottom of the 30,000-foot-level chart, while this metric-output accompanying red-yellow-green scorecard (shown above the 30,000-level report-out) had various color transitions indicating that the process changed many times from being “bad” (red) and “green” (good).
The below 30,000-foot-level chart has indicated that nothing really changed over time relative to the process’ output response, while the stoplight scorecard approach gave many false signals relative to things being good, then bad, then good again.
These two different forms of report-outs can lead to very different actions:
- Red-yellow-green scorecard: Reacting to common-cause variability as thought it were special cause can lead to a lot of wasted efforts and expensive “firefighting”.
- 30,000-foot-level scorecard: If the 32.6% estimated non-conformance rate is unacceptable for the business, this metric improvement need would “pull” for creating a process improvement effort. “Proof” that the process output response was enhanced from any process-enhancement effort is indicated through the individuals chart (left graph in the above figure) transitioning to an enhanced level of performance. To see what this type of demonstrated 30,000-foot-level transition might look like, CLICK HERE
The webinar below provides the details of how the above red-yellow-green scorecard was transitioned to the associated 30,000-foot-level response output.
Creation of a Predictive Analytics Scorecard: Webinar
In this webinar traditional performance metrics are transformed to predictive measures, which can lead to the most appropriate business actions or non-actions.
The scorecard transitioning concepts in this webinar can be applied to:
- Table of numbers business performance metrics reporting
- Red-yellow-green scorecard business performance metrics
- Time series business performance measurement dashboard
See how the change to a futuristic view can transform your organization!
Integrated Enterprise Excellence (IEE) for Creation of a Predictive Analytics Scorecard
IEE Business Management System addresses the business scorecard and improvement issues presented in a one-minute video:
A description of the IEE Business Management System is provided in the article “Positive Metrics, Poor Business Performance: How Does this Happen?”
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 predictive analytics scorecard methodology.