Sunday, February 14, 2016

Don't be a Tool





Don’t be a tool!

 Six Sigma as a business management methodology has been around since the mid-80’s. Famously, under Jack Welch’s tutelage, GE saved $12 billion over its first five years and added $1 to its earnings per share. Similarly, Motorola has reported $15 Billion in savings over the last 11 years attributed to Six Sigma. It is obvious that when executed properly, Six Sigma can have a profound and proven impact on reducing cost and increasing sales. However, if this is the case, then why do about 60% of all corporate Six Sigma initiatives fail to yield the desired results?

In my opinion, the reason is because organizations usually treat Six Sigma only as a tool, lying next to the screwdriver on the maintenance cart. Need to drive a nail, grab the hammer, 2x4 too long, pick up the saw, process variance large, hand me the “Six Sigma”. Although this approach can be beneficial for specific projects, organizations that follow this tactic are missing the big picture. Six sigma is more than a tool, it’s a philosophy, a mindset, a way of thinking, a mechanism for winning i.e. for it to achieve its potential it must be part of the corporate culture.

Change comes hard for most people and incorporating the learning’s of Six Sigma is no different. 
The implementation of any new process follows the typical change management curve. The process begins with an event that triggers a change. Next is a period of inflated, usually unrealistic expectations. As the reality of the magnitude of the event and the necessary effort required to achieve the goal is understood, the moral plummets. As understanding and acceptance of the new process becomes familiar the company climes the slope of enlightenment and finally as adoption is realized the plateau of productivity is achieved. 

Unfortunately, this is where most organizations stop their change management process. They do not address what comes next, what happens in the red box. Will the organization continue to innovate, evolve and prosper building on the their past successes or will they fall back to the previous state. 

History tells us that the majority of the time, 60% of six sigma initiatives slide backward. This is because tools become dull, fall out of favor, or regularly get replaced with the latest “flavor of the month.” On the other hand, culture is sustainable; culture is resilient to management changes, employee turnover and can embrace the challenges of a constantly evolving economic landscape. Successful organizations understand that six sigma is more than just a tool; it needs to be a fundamental part of the organization’s culture. Weaving the six sigma philosophy into the company’s DNA creates a robust and sustainable foundation where future successes can springboard from.

No comments:

Post a Comment