The Managing By Signals® methodology builds on well-established improvement techniques using process control charts, and applies them to the performance data or Key Performance Indicators (KPIs) that are important to the management of your business processes. The term "sCharts®" describes the type of process control chart that is most useful in business applications.
sCharts® display data to show how a process has varied in the past, whether significant changes have occurred, particularly in recent data, and how the organisation or processes will continue to perform unless significant change is brought about. Use of process control charts has conventionally been seen as part of a quality-led initiative with Statistical Process Control (SPC) achieving great success in manufacturing processes. Organisations are now discovering that there are significant benefits to be won from applying sCharts® to service processes.
For each KPI, or performance measure, an sChart® is constructed which, in its simplest form, consists of a chart tracking the measure over time. Lines are displayed representing the average of the data and two additional data derived lines, one each side of the average, known as Performance Guidelines. They show the amount of variation inherent in the business process being used to deliver the service to the Customer whether there appears to be relative stability or more complex trended cyclic effects (including sub-trends over shorter time periods). For example, some organisations have recognised that their business or processes are seasonal, but have not yet understood the variability on top of this.
sCharts® distinguish signals from noise. The technique means that you can go into any part of the organisation and, by looking at the sCharts®, understand what is happening. A common language is being used. No in-depth knowledge of the particular process is required for insightful dialogue between managers and personnel close to the process, wherever in the organisation. Key data are displayed and interpreted unambiguously throughout the organisation.
Within the Managing By Signals® methodology, the power of the sChart® is harnessed to enable you to decide whether or not it will be profitable for management to intervene, and at what level - saving time and resources, and avoiding arguments about how to interpret the data. sCharts® are unambiguous. They display the actual data in the order in which they occur, and apply easy-to-understand soundly-based criteria to guide you on whether or not to take action.
Using the terms "sChart®" and Performance Guidelines demystifies the use of the charts and overcomes any fear of maths in most users. Simple standardisation also helps, for example, the convention "up is good" to decide the orientation of the y-axis. This reduces error in interpretation and makes unfamiliar charts more accessible. People can look at data displays anywhere and rapidly make sense of what the chart is telling them.
Implementation
The sfn®, signals from noise, software suite provides you with the tools you need to implement Managing By Signals®. It is designed to deliver up-to-date easy-to-use on-screen analyses of performance data to executives, managers, supervisors and process owners throughout your organisation - from the Boardroom or Corporate Centre to the Front Line.