Chapter 14. SIX SIGMA BUSINESS SCORECARD VALIDATION

The Six Sigma Business Scorecard was developed to monitor growth and profitability through a set of measurements applicable in today's business environment. Competitive pressures, customer expectations, and the role of knowledge management require that businesses establish practical measurements that add value to the business. The Six Sigma Business Scorecard provides a framework and a set of initial measurements based on my 20 years of research, experience, and observations as an engineer, a manager, a leader, and a consultant working with about 100 business organizations.

The Six Sigma Business Scorecard can be used both internally by businesses for performance improvement and externally as a leading Business Performance Index (BPIn). The index is based on the business's real performance rather than the market's perception of that performance. The BPIn should provide greater confidence in corporate performance because it is based on more complete information instead of on just financial information.