European Business Improvements

 

So you think your company is doing, "Very nicely thank you”? You get things right 99% of the time and are delivering shareholder returns above 5%. Not too bad then? Well maybe? But it could be a whole lot better!! You are operating at a level of around 3-Sigma. Research has shown that you are possibly consuming up to 25% of your gross revenue with the 1% you are getting wrong. If you were to move to become a 6-sigma level company, you would reduce the lost revenue to below 5%. That’s an extra 20% that you could add straight to your profits. What would your shareholders think of you then?

You need six-sigma. But where do you start? Can you afford it? Equally, with the savings being trumpeted, can you not afford it? Will it work for your business? Will your customers demand it of you?
These and many more questions will no doubt go through your mind. Studies have shown that companies that successfully implement six-sigma have reaped benefits far outweighing the costs involved. But what makes for a successful implementation? How do you minimise the risk of failure and hence maximise the risk of success?
The following, having been observed over many years, appear to be common factors in successful deployments:
1.A visible commitment from the top leadership.
This is essential. If the man at the top doesn’t care, why would anyone else? The leaders’ wishes generally get carried out. It is imperative that he is enthusiastic and is seen to be so.

2. Using the language of six-sigma throughout the organisation.
By using the terminology of the initiative it begins to be implanted within the organisation. Everyone talks the same language, the language of change.

3. Relentless goals that force process re-engineering.
By setting goals that are difficult, but attainable, it becomes necessary to think about how processes are run and how they need to be improved.

4. The use of innovative ideas to improve processes.
If the projects are started with the idea of zero funding, it forces innovation. Maybe taking ideas from other processes or industries, maybe simply questioning why things are done in a particular way.

5. Use of data and not emotion to make decisions.
As is often said, “A man without data is only expressing an opinion.” Six-sigma does not work on guesswork or hearsay, it requires data. By using data, it is possible to remove the emotional baggage, and look at things clearly and objectively. Always ask, “Show me that data.”

6. Maintaining six-sigma as a topic of interest.
As with all things, interest must be kept up if six-sigma isn’t to wither away as many previous initiatives have. Let the workforce know what’s going on, relate the successes. Nothing breeds success like success. Consider using news-sheets or notice boards to keep the workforce informed. Talk about six-sigma at the team meetings. Keep the methodology to the front of everyone’s mind.

7. Recognising that change is indeed a way of life.
With the rapid changes happening in the business world, increased competition, new legislation, etc, change is all around us. It is up to us to respond and recognise that we must keep evolving or fall by the wayside.

8.Engaging and empowering the employees.
If employees are feeling engaged and empowered, they feel part of the action. They become part of the company. It is often said, but rarely recognised, “People are our greatest asset.” Engaged and empowered employees are your greatest asset.

Mark Twain has been attributed as saying, “You might be on the right track, but if you aren’t moving fast enough, you can still get run over.” We live in a competitive environment; yes, we are improving all of the time, but we often forget that so are the competition. As we make strides forward, so do they. We need something that will give us an edge. Six-sigma can do that. Can you afford not to at least explore what it could do for you?