Not too many businesses succeed without looking at how their processes perform. This starts by analyzing the numbers to see if you are on budget. But the businesses that really succeed and achieve this feat also measure those key performance indicators that cause variance. Then they act upon what they learn.
The name of the game is eliminating undesirable variance. Every important process your organization has should have a means to measure or gather data from it.
The most successful companies do this all the time. The Six Sigma methods, developed by Motorola in the 1980’s, have expanded to enable any organization to improve dramatically. The biggest company singing the praises of Six Sigma (aka metrics and measurements) is GE with a touted $12 billion in savings their first five years of use.* Well, you may not be able to get $12 billion but you can save a huge amount for your company by looking at your own results in every process your business has!
Think what it would be like to take your production data, for example, and realize that you could save money by making process efficiency changes and tracking the results to make sure you attain that goal. A 5% cost reduction or efficiency improvement should be worthwhile in any category of your business. What about 15%? What about more? The key is to gather accurate data, analyze it, improve it, and control it.
The most effective way to track progress and data is thru scorecards. Scorecards are the visual tracking elements that employees input results into and monitor how processes are working. It’s a great tool to share progress and get others involved in reaching success.
If you have questions about how to develop a metrics plan or a scorecard strategy or how to improve performance by capturing process data and releasing the power it contains, contact us for a meeting. Contact Holt Marketing & Management Services today.
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*Appreciation to Discovery for GE Six Sigma facts- http://money.howstuffworks.com/six-sigma.htm