Question

Please compare and contrast BSC and Six Sigma. explain what is a KPI; explain and distinguish between KPIs that are “outcomes” and those that are “drivers”.

Answer 1

Answer :

BSC(Balanced Scorecard) is described as a strategic management system, while Six Sigma is defined in terms of quality improvement related to internal business processes. Six Sigma has been successfully implemented in manufacturing, and other industries have associated work processes with higher levels of variance. They found some parallels between those two systems of management. These similarities were related to the four balanced scorecard perspectives (financial, customer, internal processes, learning and growth), but also the vision and measurement system. Six Sigma and Balanced Scorecard will use common methodologies to design and execute these management programs to help professionals achieve substantial improvements in performance.. At every step of the development cycle, Six Sigma helps coordinate a hierarchy of 'process experts' If a company is using methodology Six Sigma. Companies stick to a set of steps that will help them accomplish a particular target, such as 'decreasing the amount of material used' or 'lower production costs.'

The Balanced Scorecard (BSC) is a strategic strategy and management system that looks at four perspectives—financial, client, processes, and learning/growth—to reach and accomplish the company's goals. Transform strategy into practice by taking into account four distinct viewpoints, rather than paying singular attention to the financial viewpoint. Six sigma Improve performance and profitability by recognizing which processes are efficient and which are deficient. When broken systems are restored and strengthened, it increases employee and customer satisfaction. Six Sigma deals almost exclusively with internal processes and turns out to be one of the four viewpoints explored by the Balanced Scorecard. Thus, the BSC could be used to define the processes are relevant, and Six Sigma could be used to enhance those broken processes. The Balanced Scorecard method is a way to regularly evaluate different aspects of the company to ensure a "balanced" view (not favouring one view over another). It does not specify how you use the info, how you develop and so on. Six Sigma is a philosophy of business management that guides you through the process of identifying, evaluating, assessing, enhancing and managing all processes within your organization. It helps companies uncover perceptible customer defects and quantify and eliminate them.

A Key Performance Metric is a tangible attribute that indicates how successfully a company is achieving key business goals. Organizations use multi-level KPIs to measure their performance in achieving goals. High-level KPIs may concentrate on the overall company performance, whereas low-level KPIs may concentrate on processes in departments such as sales, marketing, HR, support, and other departments. Companies blindly follow industry-recognized KPIs and instead wonder why the KPI may not represent their own company and does not cause any significant changes. Some of the most significant, but often ignored, aspects of KPIs is that it's a communication medium.

A five-step driver is to make your KPIs actionable:

• Review business aims
• Analyze the success at present
• Set KPI goals for the short and long term
• Revise your team's targets
• Evaluate and readjust progress

You want, for example, to register 1,500 newsletter subscribers in the first quarter of the year. To get there, you'll want to set goals monthly, bi-weekly, or even weekly. That way, on your way to achieving the longer-term goal, you will be able to continually reassess and change course as required.KPI dashboards are becoming increasingly prevalent in today's fast-moving organizations such as SaaS and cloud-based companies, typically representing a consuming format where a person can evaluate their data in real-time, while reports appear to be detailed snapshots in a moment. The benefit of setting KPIs is that they allow you to set goals about what you want to be done, whoever you want. Although leaving the details to the imagination and innovation of your team. KPIs, the basic indicators that identify strategic performance and serve as a yardstick for areas that may require improvement is an important resource for improving the team and achieving high-quality, organizational outcomes. They could even offer an innovative solution to employee engagement's intractable problem.