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revenue monitoring. The goal here is the rapid improvement in profit and sustainable business growth. Many winners of national and regional quality awards have gone on to stumble because they focused on process improvement, defect reduction, and cost reduction without aligning those efforts with customer satisfaction, employee development, business growth, and profit improvement. The Six Sigma Business Scorecard places new emphasis on the latter. I applaud Praveen for leading business outside of the lines by developing this dynamic hybrid. His powerful formula demands that institutional leadership be held accountable for achieving dramatic rates of improvement, while investing in the intellectual capabilities of all employees. I am sure that you will enjoy and learn as much as I did from The Six Sigma Business Scorecard. It is an important work that offers key solutions to the challenges of our times. A. William Wiggenhorn Chief Learning Officer CIGNA Philadelphia, Pennsylvania
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his book has been written to create a comprehensive corporate performance measurement system that will enable leadership to balance profitability and growth. Having worked with many CEOs, owners, presidents, and general managers, I have had the opportunity to observe that visibility of contributors to profitability has been lost. There lies an ocean of information unutilized in the absence of a business model that identifies components of profitability and establishes measurement standards. Six Sigma Business Scorecard offers a new approach to establishing a corporatewide measurement system that will enable leadership to monitor a company s performance against expected performance. Customers expect better, faster, and cheaper; the Six Sigma Business Scorecard promotes these requirements. The Business Performance Index (BPIn) allows an organization to determine the sigma level as a relative measure of performance. This is the first time a model for establishing corporate sigma level has been developed as a leading indicator of corporate performance. The first four chapters in the book establish a baseline and define the Six Sigma Business Scorecard. The next four chapters focus on implementing the Six Sigma Business Scorecard system. s 9 12 focus on monitoring performance using the Scorecard. The final chapter integrates the ISO 9001:2000 and Six Sigma methodology where the scorecard is used to establish measures of effectiveness and Six Sigma is
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used as a methodology for continual improvement. Six Sigma Overview and Leadership for Performance chapters have been included to maximize the benefits derived from the Six Sigma Business Scorecard. This book expounds on Leadership for inspiration, Managers for improvement, and Employees for innovation. To sustain profitability and growth, a clear responsibility for growth has been identified as Chief Growth Officer (CGO), who is responsible for internal and external research and development. The target audience for this book includes leaders, managers, supervisors, and employees who are responsible for achieving superior results and making their business or department perform better, faster, and cost-effectively on a continual basis. Six Sigma Business Scorecard presents the revolutionary method for determining corporate sigma level that was employed successfully by Motorola in the early 1990s. Corporations who have been implementing Six Sigma need a method to determine the corporate sigma level. This book does just that.
ACKNOWLEDGMENTS
am grateful to my family (Archana, Krishna, and Avanti) for allowing me to write this book at odd hours, and to many friends and colleagues for listening to my unsolicited and painful ideas. My sincere thanks to Frank Brletich and Caryn Penru for their review, recommendations for, and edit of the manuscript. Thanks to Rajiv Varshney for jazzing up the figures and Rajeev Jain, Jim McNulty, Barb Schultz, and Terry Luczak for their thoughtful discussions. The book would not have passed beyond the thought process without knowing Ken McCombs, Senior Editor at McGraw-Hill. Ken has been phenomenal in believing in the Six Sigma Business Scorecard concept and in helping patiently during the development of this book. The staff at McGraw-Hill has done a wonderful job of making Six Sigma Business Scorecard a reality. I am thankful to Bob Galvin, Chairman Emeritus, Motorola, Inc., for sharing his views with readers of this book, and Bill Wiggenhorn, Chief Learning Officer, Cigna, for reviewing the manuscript and preparing the Foreword. Bob Galvin was the first CEO to launch Six Sigma at Motorola, and Bill Wiggenhorn was the catalyst for institutionalizing Six Sigma at Motorola. I am honored to receive encouragement from these two great leaders.
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