... "through the
rigorous pursuit of four big Company-wide initiatives
—Globalization, Services, Six Sigma Quality and Digitization —
we’ve changed not only where we work and what we sell, but how
we work, think and touch our customers. " ...
GE 2000 Annual Report (PDF).
Recent Posts
... "Delivery and Quality
metrics improved even as we reduced inventories, product
programs and applications stayed on track and were funded, and
customer support functions were maintained even in the decline.
" ... Honeywell 2009 Annual Report (PDF).
Measure Enterprise Performance using the Balanced
Scorecard, BSC
The
Balanced Scorecard, or BSC, can be
deployed to define and measure the strategic transformation of
the enterprise. The scorecard is a structured report that
track the execution of the strategic plan across a set of
balanced perspectives. Each perspective is represented by
strategic actions and target levels of performance over time
with the current level of performance in comparison. Over
time, the BSC was developed into a strategic management tool (PDF).
Kaplan and Norton collaborated to develop and refine the
Balanced Scorecard and its associated methodology.
Companies, such as General Electric, embraced the BSC and
improved its implementation. This is an historical
perspective on the balanced scorecard (Link). An overview of the Balanced
Scorecard methodology is as follows:
Strategic objectives
are defined and aligned using a strategy map.
Strategic
performance measures are derived and linked to the objectives.
The strategic destination is developed and expressed through
target future performance measures.
Sample perspectives of the BSC are financial,
customer, process, operations, talent, and the community.
The Balanced Scorecard has been applied across multiple
industries, the public sector, and academia. Recent usage
survey results are in this reference (PDF).
Strategic management serves to draft, implement and evaluate
cross-functional decisions that enable an enterprise to achieve
its long-term objectives. In this regard, the cause and
effect relationship and principles of the BSC are examined in
the following reference (PDF).
GE Operating Council on scorecards: ... "It is a
forum to share best practices on topics such as productivity,
simplifi cation, sourcing, restructuring, quality, and new
products — all critical disciplines in an increasingly
competitive and global environment. The Council uses a common
scorecard to measure progress across the Company and spreads its
success to all businesses. " ... GE 2007 Annual Report (PDF).
The Balanced Scorecard can be cascaded and integrated across the
organization. ... "While implementing the
acquisition BSC is an important first step, helping agencies to
develop balanced scorecards for additional functions (e.g.,
program, human resources, finance, IT) will strengthen the link
among the acquisition system, those additional functions, and
agency missions and goals. This will promote cross-functional
coordination of improvement efforts and break down stovepipes in
the agency. " ... Guide to a Balanced Scorecard
Performance Management Methodology, Procurement Executives
Association (PDF).
... "We are in the ninth
year of Six Sigma at GE, and it has become a permanent
initiative—Six Sigma is the way we work. During the last year we
completed more than 50,000 projects, focused primarily in three
areas: working with our customers on their issues; improving our
internal processes to improve our customer interfaces and
generate cash; and improving the flow of high-technology
products and services to the marketplace. " ...
GE 2002 Annual Report (PDF).
... "Why this facility?
Because it has had an outstanding record of success in doing
this same kind of work in several military programs. And it also
has become a shining example within Boeing of a site that has
achieved extraordinary gains in productivity and quality through
the application of Lean principles, one of our four enterprise
initiatives aimed at accelerating growth and productivity
through the replication and sharing of best ideas and practices.
" ... Boeing 2008 Annual Report (PDF).
The Sixth Sigma
is a web destination dedicated to documenting the
achievement of breakthrough performance through
implementation of Six Sigma, Lean Manufacturing, and
other leading improvement methodologies. Achieve!
