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Throughout the book, a business has been considered as a collection of business processes, irrespective of their output, products, or services. Therefore, the Six Sigma Business Scorecard can be applied to all organizations. It has been adapted for even small businesses based on the feedback from small business owners. The book is meant to be a documented methodology to implement a practical corporate performance measurement system that provides some predictable indicators and identifies opportunities for improvement. To benefit from the Six Sigma Business Scorecard, business leaders must be willing to think creatively and make necessary organizational changes to balance profitability and growth. The organization of Six Sigma Business Scorecard is shown in Figure I-1. The Six Sigma Business Scorecard includes 13 chapters that lead step by step through the implementation process. Different organizations will face different challenges in implementing the Six Sigma Business Scorecard, depending upon their complexity and level of commitment to improving profitability and growth. Many in the leadership cadre believe that profitability and growth have an adversarial relationship. The current business environment encourages maximization of one or the other. However, to survive and thrive, businesses must balance both profitability and growth. The Business Performance Index has been validated based on estimation and public information about the companies on the Dow Jones Industrial Average Index and several companies on a one-to-one basis. BPIn has shown correlations with performance. BPIn would not be significantly affected by minor errors in the measurement system. To improve a company s BPIn, that is, profitability and growth, the company must improve dramatically in all areas of business led by the leadership, facilitated by management, and executed by employees.

Description Agricultural production crops Agricultural production livestock Agricultural services Forestry Metal mining Coal mining Building construction and general contractors Heavy construction Construction special trade contractors Food and kindred products Textile mill products Apparel and other finished products Lumber and wood products Furniture and fixtures Paper and allied products Printing, publishing, and allied industries Chemicals and allied products Petroleum refining and related industries Rubber and miscellaneous plastics products Primary metal industries Fabricated metal products Industrial and commercial machinery Electronic and other electrical equipment Transportation equipment Controlling instruments Miscellaneous manufacturing industries Motor freight transportation and warehousing Wholesale trade-durable goods Wholesale trade-non-durable goods Building materials and hardware General merchandise stores Food stores Automotive dealers and service stations

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Now you have got this far you are definitely cooking with gas! . . . or should that be with solar Now take the small high-efficiency motor and insert it into the fuse clip in the manner shown in Figure 15-8.

SIC Group Number 56 57 58 59 60 61 62 63 64 65 67 70 72 73 75 76 78 79 80 81 82 83 84 86 87 91 92 93 94 95 96 97

Description Apparel and accessory stores Home furniture and furnishings Eating and drinking places Miscellaneous retail Depository institutions Non-depository credit institutions Security and commodity brokers Insurance carriers Insurance agents, brokers, and service Real estate Holding and other investment offices Hotels and other lodging places Personal services Business services Automotive repair, services, and parking Miscellaneous repair services Motion pictures Amusement and recreation services Health services Legal services Educational services Social services Museums and zoological gardens Membership organizations Engineering and management services Executive and legislative government Justice, public order, and safety Public finance, taxation, and monetary policy Administration of human resource programs Administration of environmental quality Administration of economic programs National security and international affairs

shows how employee reviews can be linked to ongoing employee performance. Formal annual performance reviews aren t enough to help employees improve performance. Rather, they must be accompanied by more frequent communication about performance, such as weekly reports or monthly operations reviews. These reports and reviews must have a format that links to the annual performance reviews, which are then directly linked to a company s strategic initiatives. Performance recognition is an ongoing process. This notion must be reflected by leadership through behaviors, body language, decisions, and actions. Financial incentives are a prime motivator of performance improvement. But recognition coupled with financial incentives that are based on a fair distribution mechanism can lead to dramatic improvement in performance. Innovation is a critical aspect of the Six Sigma Business Scorecard. Innovation must be promoted at every level and at every opportunity. Leadership must plan to help employees develop new skills and expand their roles to help the company grow. Employees need to learn and practice leadership skills. They must also be encouraged to expand their intellectual involvement and personal growth. Such encouragement creates growth opportunities for the company and leadership opportunities for employees. Promoting innovation is a challenging task, and utilizing the brain of every employee must become a corporate strategy. Acquiring the mental involvement of employees is daunting, because it requires employees personal initiative. That normally happens when the employees are self-motivated (a leadership skill), or when there is a significant incentive for recognition or reward, a challenge to create something new, or a desirable performance expectation aligned with the corporate initiative. The leadership must create challenging opportunities with recognition and rewards in order to motivate employees to innovate.

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