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Four Principles for Jump-starting Performance Improvement - A Healthy View of Numbers
May 8, 2008 | Author: PM Hut | Filed under: Project Management Best Practices, Quality Management
Four Principles for Jump-starting Performance Improvement - A Healthy View of Numbers (#2 in the series Four Principles for Jump-starting Performance Improvement)
By Forrest W. Breyfogle, III
Some managers have a fear of metrics. They manage to hide it by focusing on vision, strategy and inspired leadership. At the other end of the spectrum, others are fixated on measurement. Their holy grail is numbers having three digits behind the decimal point — irrespective of whether or not what’s being measured affects performance.
In these situations, the obsession with metrics can prompt counter-productive behaviors. Witness the spectacle of Krispy Kreme managers shipping product they knew would be returned because they had to make the numbers. The ultimate travesty took place at Enron, where managers used hocus pocus metrics to produce funny numbers. Examples of this kind of counterproductive behavior abound.
A common management mantra has it that processes must be measured to be meaningful. With IEE, in contrast, only what’s meaningful is measured.
Adapted from “The Integrated Enterprise Excellence System: An Enhanced, Unified Approach to Balanced Scorecards, Strategic Planning, and Business Improvement,” (copyright Bridgeway Books., 2008) by Forrest W. Breyfogle III, CEO of Smarter Solutions, Inc., www.smartersolutions.com
Forrest W. Breyfogle, III, is the founder and CEO of www.smartersolutions.com, an Austin, Texas-based company. He has authored and co-authored 11 books and published over 80 technical resources for well known, worldwide publications on Six Sigma, Lean Six Sigma and Lean methods. In 2004, he was the recipient of the American Society for Quality Crosby Medal for his book, “Implementing Six Sigma,” 2nd edition. Breyfogle is an ASQ Fellow and a member of the board of advisors for the University of Texas Center for Performing Excellence.
Smarter Solutions maintains an articles section, which can be found at http://www.smartersolutions.com/articles.php.
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