Organizations can waste much resource with:
Strategy creation and execution: Organizations can spend much time with strategy creation, where often it is difficult interpret what should be done to address passed-down strategies. Also, the strategy creation process often does not systematically blend analytics with innovation to determine the best place to target strategy-improvement efforts.
Scorecards: Red-yellow-green scorecards may seem to be a good management practice; however, these scorecards can lead to much firefighting. Also, traditional forced scorecard balanced using the balanced scorecard categories of financials, customer, internal business process, and learning & growth can lead to unfavorable behaviors. Scorecard balance is important (e.g., don't want to target on-time delivery while sacrificing quality); however, forced balance can be detrimental.
Process improvement systems: Problem solving deployment systems such as Six Sigma, Lean Six Sigma, Lean Kaizen events, and Total Quality Management (TQM) typically have a push-for-project creation system (e.g., let's brainstorm for what projects to work on next). These systems often lead silo-improvements that can sound good but do not have much, if any, impact on the big picture. A business system is needed has 30,000-foot-level operational metrics improvement needs pulling for targeted-improvement-projects, which benefit the whole enterprise.
Integrated Enterprise Excellence (IEE) introduces a new organizational governance system that integrates analytics with innovation. The IEE system shows business leaders what to measure and report; when and how to report it; how to interpret and use the results to establish goals; how to orchestrate work activities; and how to develop strategies that is consistent with established goals. These strategies ultimately lead to specific projects that enhance organizational focus and success.
This book discusses how the application of IEE methods, tools, and techniques can overcome the enterprise management challenges of the twenty-first century and the limitations of traditional business measurement systems.
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Organizations that are experiencing any of the following can have much wasted expense and resource drain that leads to lost competitiveness:
* Scorecard metrics and operational goal setting leading to wrong and perhaps organizationally destructive behaviors.
* Corporate strategies and directives often are not data-determined and can lead to metrics and activities that are not necessarily benefiting the whole organization.
* Process improvement efforts are silo organizational activities, which do not impact the business bottom line as a whole.
* Problem firefighting does not focus on root cause analysis and the achievement of sustainable corrective actions.
* Innovative ideas that can truly benefiting the business as a whole are not occurring, not what the customer truly wants/needs, or not transitioned to the marketplace in a timely fashion.
* Systems for orchestrating employee day-to-day activities are not focused on what should be done to maximize benefits for the overall system.
The Integrated Enterprise Excellence (IEE) system introduced in this book is a set of management techniques that when implemented effectively can achieve maximum, measurable, predictable, and sustainable bottom line results for an organization.
The how-to's of IEE implementation are then described in a three-volume Integrated Enterprise Excellence series.About the Author:
Forrest W. Breyfogle III is the founder and CEO of Smarter Solutions, Inc. Mr. Breyfogle was named Quality Professional of the Year for 2011 by Quality Magazine. In 2004, Mr. Breyfogle received the American Society for Quality Crosby Medal for his book, Implementing Six Sigma, 2nd edition. He is an ASQ Fellow and a member of the board of advisors for the University of Texas Center for Performing Excellence.
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