Purpose The Performance Management System (PMS) is not complete if there is no adequate reaction to the reported information. A vital part of such systems is to divert the company’s resources towards areas which are in need of substantial improvements. Comparing the metrics with their objectives will clearly convey where those needs are.
The improvement process is the change agent of the PMS, and it closed the loop of the system. This is the element where an organization will reap the full benefits of using
a PMS.  The improvement process can target the very purpose of the company – its mission statement – or just trigger a single corrective action to remedy a specific problem. The improvement process must deploy adequate resources to ensure the results of actions have a direct influence upon the organization’s performance. Therefore, the right people with the appropriate skill sets must be selected for the improvement process, and the focus of actions must be carefully directed to the root cause of the problem. The improvement process is a systematic approach which deploys know-how and experience across the organization. The objective of each improvement initiative is to bring the performance of the organization to a higher level than it has been before. This philosophy allows the organization to move towards excellence in their business processes. Since the improvement actions and projects can target different business processes, it is essential that efforts are sponsored by the top management of the organization. Their support, commitment and willingness to accept changes are a condition of a successful improvement process. An effective PMS emphasizes the importance of improving underperforming activities and processes.  One method of gaining meticulous follow-through on improvement actions is to connect personnel and management to the system.  The PMS must allow escalation of problems in line with the nature of severity and delays.

There are many suggested methods and best practices which achieve the same goal. The following workflow is generic and can be adapted according to an organization’s particular needs:

• Create an effective team.
• Assign responsibility for tasks.
• Analyze root causes.
• Establish an action plan or improvement project.
• Implement the action plan or improvement project.
• Execute the actions or project steps.
• Follow up milestones and deadlines.
• Validate the effectiveness of the improvement.

Action Items

Many situations can be resolved with a quick fix, or a “just do it” approach.  In such cases, there is no need to make a detailed description of a solution or improvement plan. Although quick action must sustain and deliver a permanent prevention for recurrence, it can certainly be applied if simplicity is the most effective approach. The advantage is that valuable resource can be spared.

Projects

Projects are deployed when many different resources and people are directed towards a common goal.  Projects require organization, definition and management. The success of the outcome relies strongly on the planning and involvement of skilled team members. Therefore, it is essential that such projects are adequately managed.

If Six Sigma methodology has been deployed within your organization, the perfect tool for improvement is already at hand. The PMS and Six Sigma can work perfectly, hand in hand, and complement each other.

Too often, improvement projects are implemented with great financial and personnel expenditures, only to find – months and years later – that nothing has actually changed.  An essential element of the improvement process is that activities are not abandoned once they are completed. The validation of effectiveness is as important as the execution of action itself. Validation verifies whether the implemented action still produces the expected results.  If validation fails, it may necessary to reactivate the project or part of it. The ultimate objective of each project is to achieve a sustainable improvement.