Unfortunately, the term Performance Excellence is frequently confused with Pay for Performance compensation systems used by companies to reward their higher performing employees. In the realm of Performance Excellence, Performance Compensation is a subset of an overall business excellence strategy. Other productivity and quality improvement methodologies like Lean and Six Sigma are also subsets of Performance Excellence.

Six Sigma is a structured team-based approach to continuously improving process quality. Since all organizations are a series of interconnected processes, decreasing process variation – a key objective of Six Sigma – is applicable to any business process from administrative functions to operations and supplier networks.

Similarly, Lean focuses on eliminating non value-added activities (waste) in companies. Waste can be found in inefficient and often unnecessary processes, poor process and product quality, excess inventory, poor workflow and other time, material and people wasting activities.

While Six Sigma, Lean, Pay for Performance and other performance improvement approaches can be effective, what works for one company can fail miserably in another. Since no two organizations are the same, it is critical that each organization develops a comprehensive strategy which aligns the most appropriate Performance Excellence tools with their specific needs. This requires senior leaders to be fully and continuously involved in the process from the start.

Start by educating yourself in the various strategies and tools of Performance Excellence. This will enable you to objectively identify your organization’s critical needs and select the performance improvement approach that best fits your business objectives. Translate these objectives into manageable implementation plans and use project management, teams and performance measures to implement and continually monitor progress. Most importantly become a Performance Excellence champion and lead by example. Your customers, employees and stakeholders will be delighted you did.

For assistance with this process contact CBI for a no obligation evaluation of your organization’s objectives.

Anthony Tlush is a Senior Consultant/Trainer in High Performance Manufacturing with the Center for Business & Industry. In addition to thirty years of multi-industry engineering and management experience, he is a Six Sigma Black Belt, Certified Lean Practitioner and past member of the Baldrige National Quality Award Board of Examiners.

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