The ROI of Performance Excellence Programs
4/24/2012 8:44 AM
Six Disciplines® is a total performance excellence program. By integrating a proven best-practices methodology and innovative Outlook software, we help you to build an effective culture of continuous improvement, enabling you to achieve predictable and measurable growth.
The desired end result is different for each of our clients, but it's usually centered around growth, higher productivity, improved profitability and greater overall goal accomplishment.
We're often asked by prospective clients about the ROI of the Six Disciplines program. The best answer is to look at our clients. Their results speak for themselves.
In a recent interview with Eric Kurjan, President of Six Disciplines NWO, he shared just a few of his clients' improvements that can be directly attributed to using Six Disciplines during 2011. (the names have been changed to protect the successful...)
- Company A (Mfg)- 110% achievement of Revenue and Profit, 79% achievement of all 2011 Goals
- Company B (Mfg) - 110%+ achievement of Revenue and Profit
- Company C (NFP) - 87 % achievement of all 2011 Goals
- Company D (Service) -100 % achievement of all 2011 Goals
- Company E Mfg) - from 2007 to 2011 - increased Revenue for $35M to $56.5M and Profit from 4.5 % to 8.8%
- Company F (Mfg) - from 2007 to 2011 - increased Return on Assets of 5.6% to 15.4% and Profits from 4.8% to 11.4%
- If these results from Six Disciplines clients don't tell a compelling enough story, try this one.
According to a study conducted by Quality Progress Magazine, the results reveal that those organizations that followed a defined process, (in this case TQM) Total Quality Management made a marked improvement in their quality but also their financial performance. The article makes a direct correlation between a solid process implementation and their significant success in numerous areas - Operating Income, Sales, Total Assets, Return on Sales, Return on Assets. These improvements are a result of following a systematic performance excellence approach.
The study points out that this systematic approach (a method) to planning and execution (a holistic, total approach to performance excellence ) works. In the study, they examined over 600 company's results over 10 years.
What the results showed was that it doesn't depend as much on what system they have, but that they HAVE a system.
- It doesn't depend on the industry. This study covered over forty 2-digit SIC codes.
- It doesn't depend on size, as both large and small companies were examined in the study.
- And it doesn't depend on capital intensive or non-capital intensive businesses.
Following a systematic approach to performance excellence results in huge differences in performance. Let's begin to have the conversation with your organization - today.