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How to Use Balanced Score Card Concept in Six Sigma Approach
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Posted by: John Griswold Posted on: Tuesday, 12th February 2002, 2:57 PM.
The Balance Scorecard is established via the company strategy in four categories: Customer, Financial, Operational, Continual Improvement. These create the basis for direction, goal/objective setting which then serves as the linkage to organizational branches to establish their contributions. This then requires direct action, partrnerships and the enablers to achieve them. Six Sigma is a direction (culture must become more exact) as well as an enabler/technique (hear is a process to follow). Therefore the strategy of a financial goal of % better profit is established through a more precise organization and is achieved by the Six Sigma process. The integration is created through rigorus business planning to clearly show the linkage throughout the organization so when manager's are asked "Why are we doing this?" they why is very apparant. I've have never seen this implemented to its achieve it true potential. This is not a problem with the tool but the planning. Many programs would become culture if this was executed properly. Another note is the measure that come out of that thinking fit with strategy, taking the company in the "right" direction and Six Sigma improvements must be measured to show how they contribute to those carefully defined outcomes at the unit and company levels.
Hope this helps
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