Small businesses have several tools to use in planning to work toward its goals and broader mission. A business must both look at the forest and the trees in working toward its goals and mission. The business must both look at the big picture as well as specific measures it can use to reach the mission and improve performance. A business looking at the big picture has to decide where it fits in the economy by filling gaps and developing a business model. To reach the forest, one must navigate through the trees to see a path to bring the big picture into focus.
Humanistic management tools like six sigma statistical measures to improve work routines and customer service leading to competitive advantage. For example, leaders in the past did not view human resource management as an executive role, but with statistical methods have ramped up human resource management to a more prominent position. Executives before taking advantage of this innovation looked at human resources as a more of an administrative task processing employee records, planning and scheduling training, and aiding in employee selection. The ability to add value to the organization has lifted human resource management to a new level (Fazzari & Levitt, 2008). Six sigma is a project-driven approach designed to improve processes and products by continually reducing defects allowing an organization to improve strategic planning efforts through heightened coaching and mentoring (Hekmatpanah, Sadroddin, Shahbaz, Mokhtari, & Fadavinia, 2008).
Although six sigma offers statistic tools to improve strategic planning, strategic planning is the center of quality control. Strategic planning helps management by supplying factual information affecting decision-making and promoting critical thinking and risk analysis (Burge, 2008). Strategic planning assesses the big picture, whereas humanistic tools focus on specific parts of an organization’s systems and processes. Strategic planning highlights gathering business intelligence related to the overall vision to improve operational and financial performance (Glaser & Stone, 2008).
Baldvinsdottir, Burns, Norreklit, and Scapens (2009) asserted that balanced scorecard theory provides management accountants with innovative promising quick fixes to business problems. Baldvinsdottir et al. argued that balanced scorecard offers a well-rounded view rather than a narrow focus to business problems. This approach highlights the right performance signals to help move an organization toward achieving competitive advantage. Balanced scorecard is useful in promoting group productivity by filtering out poor ideas and carrying through worthy ideas (Hughes, Caldwell, Paulson Gjerde, & Rouse, 2005).
Both strategic planning to identify the big picture, and humanistic techniques like balanced scorecard and six sigma help in clearing the path for a company to work towards its mission. These two procedures work in harmony with one another and are not exclusive of each other. The trees are part of the larger forest and develop a path toward planned growth.
How do you distinguish the forest from the trees in your organization? Please leave a comment. Learn more.
Baldvinsdottir, G., Burns, J., Norreklit, H., & Scapens, R. (2009). The management accountant’s role. Financial Management (14719185), 33-34. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=44479842&site=ehost-live
Burge, R. (2008). Quality’s center point. Industrial Engineer: IE, 40(6), 42-46. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=31962040&site=ehost-live
Fazzari, A. J., & Levitt, K. (2008). Human resources as a strategic partner: Sitting at the table with Six Sigma. Human Resource Development Quarterly, 19(2), 171-180. doi: 10.1002/hrdq.1233
Glaser, J., & Stone, J. (2008). effective use of business intelligence. hfm (Healthcare Financial Management), 62(2), 68. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=f5h&AN=29363737&site=ehost-live
Hekmatpanah, M., Sadroddin, M., Shahbaz, S., Mokhtari, F., & Fadavinia, F. (2008). Six Sigma process and its impact on the organizational productivity. Proceedings of World Academy of Science: Engineering & Technology, 45, 375-379. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=35136399&site=ehost-live
Hughes, S. B., Caldwell, C. B., Paulson Gjerde, K. A., & Rouse, P. J. (2005). How groups produce higher-quality balanced scorecards than individuals. Management Accounting Quarterly, 6(4), 34-44. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=18733218&site=ehost-live