Best Practice: Strategic Six Sigma Pt.1
Best Practice: Strategic Six Sigma Pt.1
I have been wondering about why some companies perform well and others do not: and why those companies that do perform well, get it, while those that don't, usually don't know how much they've left on the table. No, this is not a Jim Collins expose on "Good to Great," yet performance, whether in management, finance, operations, customer service or growth initiatives, are what makes a company a company, and it also determines which company will succeed and which will fall short of their expectation.
As an executive, I am always looking at ways to increase the value of Upstart's offering, Upstart: Business and Management for 20-40 Year Old Professionals. I'm also interested in the types of business models and strategies that companies pursue, in terms of what strategies, tactics and execution techniques are replicable for any company, and which should be personalized for maximum efficacy for each enterprise.
Reading the book, Strategic Six Sigma," which might help you create optimal performance from your business processes and services. This is what I learned:
1. Six Sigma tools and concepts provide a means to optimally align all of an organization's components-from leaders, culture, and mission and strategy on the one hand, to structure, management practices, systems, work climate, and employee skill sets and behaviors on the other-to help a company achieve breakthrough levels of business performance.
2. A CEO and senior leadership team must;
Develop a committed team of leaders to support Six Sigma initiatives.
Integrate Six Sigma strategic thinking and best practices into the company's strategy planning and deployment process.
Ensure that the company is both passionate and consistent about being in touch with customers.
Create a business process framework to sustain Strategic Six Sigma for the long-term.
Develop quantifiable measures-then demand tangible results from people.
Develop incentives/create accountability/reward performance.
Be committed to having full-time and well-trained Six Sigma Leaders in place to sustain initiatives over time.
3. Forget building a learning organization. You first have to build a listening organization-a company whose people have their ears to the ground.
4. The use of strategic Six Sigma thinking and methods;
Measuring business and product/service conformance to customer requirements.
Creating specific continuous actions to reduce to variation in existing business processes that cause failures to conform to customer requirements.
Creating new innovative products/services and processes to specifically meet customer and market requirements.
5. Using strategic Six Sigma to facilitate supply chain redesign; help link companies, customers, and suppliers together with a common set of metrics, operating parameters, and performance expectation.
6. Customer Relationship Management;
Define their customer strategies and better understand the nature and needs of individual customer or market segments.
Conduct market research that can be used for product enhancement or the creation of new products and services.
Create effective channel and product strategies, the means a company will deliver their products and services.
Put the right infrastructure in place to support all dimensions of customer care; from new business development, market analysis, and segmentation, to the careful development and nurturing of key account and creation of long-term customer loyalty.
Create the ultimate in customized products and services.
Monitor conformance to customer requirements through real-time customer dashboard.
Look for the next installment to this posting: Best Practice: Strategic Six Sigma Pt. 2.
Good Luck
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