The Long-Term Impact of Six Sigma
The long-term impact of Six Sigma is summarized in Figure 7-5. Most organizations initiate Six Sigma in operations. This start is usually followed in 12–18 months by expansions into administrative and transactional processes, and R&D processes (beginning in the managing the effort phase, and expanding in the sustaining momentum and growing phase).
Figure 7-5. The Long-Term Impact of Six Sigma
Top management has fueled the deployment through its leadership, evidenced by such things as clear goals, resources, breakthrough expectations, and a deployment plan. Of particular importance is the clear communication of breakthrough expectations—what we need to do to be successful, how we are going to do it, and what will happen when we are successful. Without these expectations the organization is confused about what is expected and what will happen.
The work done in the first 12–18 months produces many useful results, including some very worthwhile by-products. Most important are business results in the form of improvement to the bottom line, and increased customer satisfaction. This helps Six Sigma build credibility, pay for itself, and provide fuel for continued growth. The capability of the organization is thereby greatly increased, including enhanced teamwork and cross-functional cooperation. Most importantly, the organization begins to believe that Six Sigma will work here, and each person can benefit from Six Sigma personally.
Two to three years into the initiative, typically during the sustaining momentum and growing phase, the longer-term benefits begin to appear. The leadership team bench strength begins to increase as the Six Sigma experience provides the organization with a larger number of highly skilled leaders. Organizations typically see greater use of scientific thinking in how they manage, including focusing on processes, using data to guide decisions, and understanding the effects of variation on the decision making process.
The discussion of the impact of variation on customer satisfaction in the 1998 GE Annual Report is one illustration of this type of thinking. As a result, people are working in a new way and a new culture begins to emerge. This solid foundation enhances the organization's ability to expand and grow. The cadre of MBBs, Black Belts, and other experienced Six Sigma leaders, and the focus on improving processes, creates a better climate for rapid assimilation of new acquisitions. This climate also makes it possible to move acquired processes to new locations and get them productive in record time.
The list on the following page summarizes some of the mindset changes seen in the organization along the way. People believe that a focus on breakthrough process improvement is the way to improve business performance and growth. They see that this improvement comes when improvement is part of the budget and annual planning, with both the costs and the benefits of improvement built into the budget. They believe that Six Sigma is about improvement, and not training per se. Training is needed to build the improvement skills, but is not an end in itself. Process improvement rises to a new and higher level of importance, a part of how you run the business. The use of data and facts as a guide to decision making has become the norm. “Please show me the data that this recommendation is based on” is a common request when evaluating proposals and recommendations. A new way of working evolves and higher and higher levels of performance results are achieved.
Mindset Changes Produced by Deployment of Six Sigma
Breakthrough process improvement is the route to increased business performance and growth.
We focus on improvement, not training per se. Training is aimed at building the skills needed to get business results.
We are bringing our improvement processes to a new, higher level of importance.
Budgeting process— annual allocations include costs and benefits of Six Sigma projects.
Goal setting process— improvement goals using Six Sigma and other means are well defined.
Decision making–guided by data when possible.
Management reviews are done as scheduled.
Data systems include data for improvement as well as finance.
Delivery of results is a key component of performance management, recognition and rewards, and career development.
Hiring process searches for people who will be successful in new culture.
Communications process reports the new way of working including purpose, expectations and accomplishments.
You are making Six Sigma part of everything you do.