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Six Sigma Balanced ScoreCard
Balanced Scorecard is a
concept helping you translate strategy into action. The Balanced
ScoreCard starts from the company vision and strategies, from here
critical success factors are defined. Measures are constructed that
aid improving business performance in areas critical to the
strategies. Hence, Balanced Scorecard is thought to be a performance
measurement system, derived from vision and strategy, and reflecting
the most important aspects of the business. These business
performance measures are often arranged into so called Dashboards to
display the instantaneous value of each metric.
Traditional performance measurement, focusing on external
accounting data, was quickly becoming obsolete and something more
was needed to provide the information age enterprises with efficient
planning tools. For this purpose Kaplan & Norton, founders of
the system, introduced four different perspectives from which a
company’s activity can be evaluated:
- Financial perspective (how do we look to our shareholders?)
- Customer perspective (how do we look to our customers?)
- Process perspective (in what processes should we excel to
succeed?)
- Learning and innovation perspective (how will we sustain our
ability to change and improve?)
Traditional "Static"
Dashboard
Six Sigma Balanced ScoreCard
MTES
believes there is an inherit flaw in most Balanced ScoreCard
systems, the nature of variation is not considered. Most methods and
software products do not properly integrate the nature of variation,
these programs treat metrics as though there are static. The
dashboard above is a common example of the end state of most
Balanced ScoreCard processes. MTES believes
this "static" representation of metrics is not as useful tool to
provide leaders with incite into their processes as a dashboard
which integrates the theory of variation. In many business and
governmental processes information from past performance can help
leaders predict the future performance. More importantly, proper
understanding of the current state of a process can be invaluable in
understanding how to improve performance.
MTES is currently developing a software product
that will assist leaders to easily create and save Six Sigma
Dashboards. For further information please
contact us.
Six Sigma
Dashboard
 Six Sigma Training
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