Organizations implement
Six Sigma for one main purpose: cost saving. While companies which operate at 3 or 4 sigma level
spent 30 to 40 percent of their income for problem solving. 6 sigma level organizations on the other hand spend only 5% of their revenue for problem fixing.
A Balanced approach to Strategy
To achieve the performance that stakeholders expect ,
Six Sigma strategies should be in congruence with organizational strategy.The
Balanced Scorecard can help organizations in achieving this goal.The Balance Scorecard translates the organizational goal in to performance metrics for easy understanding and implementation.The four stakeholder perspectives are (1) customer's view of the organization (2) Internal process (3) Continuous improvement and (4) Stakeholders view of the organization.
From these perspectives, measures and organizational goals are integrated into a strategy map. This facilitates executing process improvements and measure their impacts continuously.
Getting Every one Involved with metrics
Labeling the metrics in the Balanced Scorecard with red (poor performance) , yellow (mixed performance) , and green (excellent performance) is the normal practice.Red ratings alert the concerned in the respective area to take immediate action.It is necessary to undersatnsd the strategy map and how the four perspectives influence each other. Understanding key metrics enables the employees to get deeper knowledge about the problem areas. This also helps to improve employee's performances as well.