January 07, 2008  

Hi MBBP Subscribers,  

During times of increasing competition, companies need to be on the constant lookout for competitive techniques and tools that will help them create and maintain their competitive edge.    

Of all the competitive techniques I implemented while in industry, kaizen and performance management were by far the most effective. They helped my teams stay focused on getting the job down.    

Today, "The Balanced Scorecard" is the performance measurement system employed by winners. If your company wants to stay ahead of their competition, be sure to read this week's bulletin, Remember: "Without data, you're just another opinion."  

Have a nice day, and stay connected.

Bill Gaw
Business Basics, LLC
bg@bbasicsllc.com
760-945-5596    

BALANCED SCORECARD BASICS
"Without data, you're just another opinion."

Financial numbers may tell us we're winning the war, but it takes performance management to show us how to focus our energy and efforts to win each of the battles along the way.    

Bob Gee, a good friend and coworker, once said, "You can't control what you don't measure." Imagine trying to fly an airplane across the country and the cockpit has no dashboard, no gauges and no idiot lights. You may get it up off the ground but without performance measurement the chances of getting to where you want to go are slim to none. Business success may not be a life-death situation but like piloting an airplane it takes performance management to get you to where you want to go.   

Motivational  or  De-Motivational   

Performance measurement can be motivational or de-motivational. The individual goal setting of the past is a good example of de-motivational measurement. It tested one individual or group against the other, and while satisfying some individual egos, it provided little contribution to company growth and profit objectives.  

Today, the balanced scorecard is a performance management system that helps companies pursue their key success factors. The scorecard uses both internal and external benchmarking and employs a relevant cascading method of performance goal setting. Achievements are acknowledged and celebrated on a "real time" basis and not at the traditional annual review.    

For a balanced scorecard process to be motivational it must provides timely and accurate data. Simplicity is a key to the validity of measurements and the tractability of problems to their root cause. Data collection design must employ simple and easy to maintain databases to assure data integrity.    

When people are trained in this process and are permitted to participate in relevant goal setting, performance management can motivate teams to higher achievements - including the exceeding of growth and profit expectations.    

Five Keys to Balanced Scorecard Success 

1. Establish a "no status-quo" mind-set - if you're not winning... you're losing
    

2. Define company "key success factors" - examples: cost, speed and quality 
    

3. Identify realistic stretch goals that are relevant to the company's "key success factors" 
    

4. Implement training/coaching programs - education is the pathway to excellence
    

5. Celebrate each goal achievements and raise the bar... don't wait until next year.

Benchmarking 

For a mature performance management process, "benchmarking" has become the standard for establishing performance objectives. Benchmarking is still one of the most ill-defined management concepts and is one of those words that mean different things to different people. Our preferred definition comes from Xerox, who describes benchmarking as: "The continuous process of measuring our products, services and business practices against the toughest competition and thosecompanies recognized as industry leaders."    

The objective of benchmarking is to build on the ideas of others to improve future performance. The expectation being that by comparing your processes to best practice - major improvements can be realized. You should not consider carrying out external benchmarking until you have thoroughly analyzed your internal operations and an effective system of internal measurement has been established.   

What's In It for Us?  

So what kind of results can you expect when a management team introduces the process of the balanced scorecard? First, people will become motivated and focused on the continuous improvement of their company's critical success factors. Second, personal and team achievements will become recognized and rewarded - creating an exciting, winning, work environment. Teamwork will improve and employee retention will rise. Finally, and most important is the company-wide euphoria as "bottom line" results improve and financial pressures no longer create a stressful and defensive work environment.    

A SPECIAL OFFER FOR MBBP BULLETIN SUBSCRIBERS

The Kaizen and Performance Management,
Back-to-Basics, PowerPoint Plus, Training Package

To review the special offer: Click Here

If your company is interested in mastering the basics of kaizen and performance measurement, a good approach would be to consider my Kaizen and Performance Management Training Package featuring my e-Tutorial, "The 7-Basics of Kaizen and the Balanced Scorecard."  

The Training Package includes:  

First, we've included our new e-tutorial, "7-Basics of Kaizen and Balanced Scorecard at a great, discounted, price. 

And, second, to help you optimize your performance management training, we will include with your e-Tutorial the following:

• CD - Value Stream Mapping Training Module. To help your company upgrade business processes to eliminate non-value-added costs and optimize customer responsiveness and satisfaction.

• CD - Supply Chain Management. To help you and your company optimize your supply chain success.

• CD - Thinking Outside-the-Box Principles. To help everyone discover creative  ideas, insights, and proactive solutions that create and maintain a company's competitive edge.

• CD - Train the Trainer Manual.  To help you initiate self-directed, win-win, on-site training using your kaizen and performance management training package. 

To review the details of this unique training package click on the below link:  

To review the special offer: Click Here

Do it today because procrastination is not a good mind-set for reaching your full growth and earning potential in 2008.

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