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.
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