How Six Sigma Can Better Assess Performance Evaluation

Posted by: meikah | 22 May 2007 | 10:54 pm

Without a clear measurement to evaluate performance, management could only focus on conformance and nonconformance minus the common cause. And according to Forrest Breyfogle III, this method of evaluating performance can drive the wrong behaviors among employees.

Breyfogle wrote an article for BPM Mag, and discussed there how Six Sigma can drive better management reports by having good metrics to evaluate performance. He suggests an approach, which he calls Smarter Six Sigma Solutions (S4) or “Integrated Enterprise Excellence (IEE).” It can open managers’ eyes to ways in which the metrics they’ve chosen are driving the wrong employee behaviors, and can help them focus improvement efforts on actions that can truly impact performance. He gives interesting real-life examples, from which we can really learn from.

This part here in the article pretty sums up Breyfogle’s ideas:

Generally speaking, though, organizations can achieve more gains by continuously working to mitigate common-cause problems by improving their basic processes. Effective, long-lasting improvements to processes are not made by firefighting. They require the examination of process data over a period of stability to determine what should be done differently in the long term.

Presenting performance data in traditional management reports, with simple year-to-year comparisons of metrics, may identify results that are out of line with targets, but it does little to help executives determine how to respond to those results. How can a company fix poor performance when it doesn’t know what caused that performance?

Process improvement projects in Six Sigma utilize a define-measure-analyze-improve-control (DMAIC) road map to investigate the causes behind nonconforming processes using both statistical and nonstatistical techniques. Such an analysis can lead to long-lasting, sustainable improvement, and taking an S4/IEE approach to reporting on the analysis expands the positive impact that companies see in their top-level performance metrics.

BPM Mag, “Common Cause: How Six Sigma Can Drive Better Management Reports”

*Photo from MorgueFile

Filed under: BPM, Data Analysis, DMAIC, Forrest W. Breyfogle III, Processes, Tools/Toolkits

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