The ROI of performance excellence programs like Six Disciplines has been researched and proven many times over, by similar quality, performance, and business excellence programs like Baldrige, EFQM, and TQM.
The value of implementing a performance excellence program like Six Disciplines is hard to ignore:
- A study by the European Foundation for Quality Management of 120 award-winning companies, including 24 from the U.S., compared their financial performance to that of similar companies that had not won awards. Five years after receiving their awards, these companies outperformed the comparison companies by 77% in sales, 44% in assets, and 18% in operating income.
- The cumulative earnings after tax vs. budget of business units that have a high degree of deployment of the Baldrige model is 30% compared to 13% for those with partial deployment and -12% for those just starting the Baldrige journey.
- The five two-time Baldrige Award winners grew significantly between their first and second Awards: 67% in number of sites; 63% in jobs; and 93% in revenue
- A study by Quality Progress Magazine examined over 600 company's results over 10 years. The study revealed that those organizations that followed a defined process (TQM in this case), made a marked improvement in their quality but also their financial performance, particularly significant in numerous areas - Operating Income, Sales, Total Assets, Return on Sales, Return on Assets.
- It doesn't depend on the industry, as this study included over forty 2-digit SIC codes.
- It doesn't depend on size, as both large and small companies were examined.
- It doesn't depend on whether yours is a capital intensive or non-capital intensive business.
- It doesn't depend what methodology/process/system you're using, just that you HAVE a system - and keep using it.
Implementing a performance excellence program requires a holistic, total approach. Nothing else will do.
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