BenchmarkingBusiness MetricsMetrics

Mastering the Art of Business Improvement & Metrics

Often organizations adopt the Lean and Six Sigma methodology to hit the right chord of the ‘performance measurement wall’. However, even their right intentions turn wrong once they lose focus over the wrong targets. Why does this happen? Due to the dearth of a well-structured strategy to business improvement at the forefront of the deployment process.

In this article at iSixSigma, Terence T. Burton explains that the business improvement strategy must include formal selection criteria to focus on the most significant improvement initiatives. He also points out performance metrics as the by-product of the well-structured process.

Enablers of Improvement

It may sound confusing to many, but Lean and Six Sigma are the real enablers of strategic improvement. Most of the organizations have ‘business masteries’ to concur their strategic plans. The framework to discourse these plans are the ‘Business Masteries Model’. Here are some of the masteries to consider:

  1. Leadership Mastery: To step up and reinvent the fundamental rules and practices of your industry, organizations need creative leadership. Thus, master the art of leadership to hold right vision, awareness, and recognition of the need, communicate and reinforce the detailed strategy. Regular feedback, reward and recognition alongside countermeasures for unacceptable performance or behavior are the other must-haves of the leadership mastery.
  2. Innovation Mastery: Being mission-critical, innovation is essential in every nook and corner of the organization. Thereby, develop new technologies, products, and processes that are faster, reliable and cheap.
  3. Customer Mastery: Master the art of customer’s critical-to-quality elements across various market segments. Also, associate the costs to an acceptable profit expectation for their stakeholders, also known as clients or customers.
  4. Supply Chain Mastery: Create a synchronized and fluid supply chain to manage the complex logistics of matching supply and demand. Also, get the right inbound and outbound products at the right place and at the right time.
  5. Integration & Data Mastery: Organizations must integrate a high level of information to sense, interpret and respond to newer opportunities. Measure these performances in real time.
  6. Human Resource Mastery: The in-house resources must be given a constant dose of new skills and capabilities to address the challenges of the new economy. The employees also need to have the right technical, teaming and personal skills to execute transformation.

Click on the following link to read the original article: https://www.isixsigma.com/methodology/metrics/business-improvement-strategy-masteries-and-metrics/

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