Six Sigma Business Scorecard

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9780071479431: Six Sigma Business Scorecard

Filled with performance-measuring techniques that can be used throughout a corporation, the Second Edition of Six Sigma Business Scorecard continues to be a proven tool for gauging and ensuring success in today's complex business environment.

This guidebook was designed to translate an organization's mission and business strategies into performance measures and operating objectives. Widely used around the world, it has become the linchpin of an integrated approach to taking the Six Sigma program of any company to the next level.

Ensure Sustained Profitable Growth

Without a strong grasp of performance metrics, a company can have no clear, quantitative indication of its performance improvement. Six Sigma Business Scorecard offers a unique approach to measuring performance. Readers will learn how to track their improvements in operations and financials-and make critical adjustments if such improvements are not up to expectations-using Six Sigma. Written by an internationally recognized thought leader in business management and a practitioner of process management, Six Sigma, and innovation, this much-needed Second Edition of Six Sigma Business Scorecard delivers an innovative Execution Map allowing you to implement, reap, and quantify the many advantages of Six Sigma.

You'll benefit from:

  • Key performance metrics for companies already using Six Sigma, to determine their sigma level
  • A well-defined measurement system, which builds on the "Balanced Scorecard," for use throughout a corporation
  • The Business Performance Index (BPIn), specifically designed for CEOs, which monitors corporate wellness with ease
  • The Innovation Index, for accelerating innovation
  • The 4P model, for process management

    Six Sigma Business Scorecard will show you how to implement a successful and a measurable Six Sigma program.

"synopsis" may belong to another edition of this title.

About the Author:

Praveen Gupta President of Accelper Consulting, has gained extensive experience in the field of business management over 25 years. He has been a pioneer of Six Sigma methodology at Motorola, and of optimizing business performance by using his Execution Map consisting of Business Scorecard, Six Sigma, innovation, and process management. For each of the four elements, he has authored a book providing simple-to-use but powerful tools. Mr. Gupta writes a monthly column, "Six Sigma Sense," and has authored or co-authored several books, including The Six Sigma Performance Handbook, Healthcare Excellence, and Business Innovation in the 21st Century. He holds a BSEE from the Indian Institute of Technology and an MSEE from the Illinois Institute of Technology. He is also a member of the Chicago Executive Club, the Turnaround Management Association, and IPC. Mr. Gupta is a Master Six Sigma Black Belt and a Fellow of ASQ. He teaches at DePaul University and the Illinois Institute of Technology, both in Chicago, Illinois.

Review:

Excerpts from article:

New Book Captures Keys to Short- and Long-Term Business Success

..."Six Sigma Business Scorecard, "published by McGraw-Hill, combines today's most powerful management concepts...The book starts with a comprehensive review of Six Sigma and its ability to generate significant returns by focusing on customer satisfaction and profitability. Gupta then describes the following seven highly critical areas to manage in any organization: 1) leadership and profitability; 2) management and improvement; 3) employees and innovation; 4) purchasing and supplier management; 5) operational execution; 6) sales and distribution; and 7) service and growth. Using these criteria, Gupta develops the Business Performance Index (BPIn), a comprehensive business guide that can judge the overall performance of any organization. The book also portrays how the BPIn can be used to determine a corporate sigma level that is missing in the Six Sigma methodology used today.

Additionally, "The Six Sigma Business Scorecard" includes an interview with Bob Galvin, former CEO of Motorola, in which he shares his views on leadership performance...

Excerpts from review by Paul Harmon

Praveen Gupta was at Motorola in 1987 when Bill Smith first proposed what has become Six Sigma, and has been working to improve processes ever since. Somewhere along the line Mr. Gupta became focused on the problems of relating corporate goals and profits to process changes. Mr. Gupta describes the history and practices of Six Sigma in a few succinct chapters. He goes on to compare and contrast Six Sigma measures with ISO 9000 measures and the measures used by the US's Baldrige award system. In the end he concludes that, while each contributes to improved processes, they do not tend to establish clear links to corporate goals, and ultimately, to corporate profits. Or, put slightly differently, there is no way to conclude, from lots of specific Six Sigma projects, whether the organization, as a whole is getting better.

Next, Gupta considers Kaplan and Norton's Balanced Scorecard system. Balanced Scorecard seeks to shift senior management's attention for financial measures to a more balanced set of measures which include: (1) Financial Measures, (2) Customer-Related Measures, (3) Internal Business Operations Measures, and (4) Learning and Growth Measures. Gupta describes the system and some of its successes. He proceeds, however, to argue that, as a generalization, the Balanced Scorecard has been more successful with senior managers than with operations managers.

In other words, Six Sigma focuses on processes, and rather narrowly defined processes at that, and doesn't reach up to link to strategies and goals. Balanced Scorecard starts with the strategies and goals of senior managers and doesn't reach downward to provide direction for managersand employees engaged with lower-level process improvement.

Gupta concludes that a better performance measurement system is required, and proposes it. Gupta's solution is the "Six Sigma Business Scorecard." In a nutshell, he attempts to merge the best of the scorecard approach with some Six Sigma measurement concepts. Rather than rely on four sets of measures, Gupta proposes that companies rely on seven, including: Leadership and Profitability Management and Improvement Employees and Innovation Purchasing and Supplier Management Operational Execution Sales and Distribution Service and Growth

...I...recommend this book to those concerned with the measurement of corporate performance, with Balanced Scorecard programs, and with Six Sigma programs. Clearly Gupta has thought long and hard about these issues and he provides detailed discussions of many important and difficult issues that those involved in performance management must solve in the years ahead. A company may not adopt Gupta's entire approach, but this book is a valuable sourcebook that describes specific problems and suggests ways of dealing with the shortcomings of existing practices. It will probably inspire others to work on the important problems that Gupta pinpoints.

"About this title" may belong to another edition of this title.

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