Six Sigma and The Customer - Six Sigma and Upper Management
by Tony Jacowski
The customer centric focus of Six Sigma methodologies cannot be sidelined for any reason whatsoever. Although the end results of Six Sigma implementation (such as improvement of bottom line profitability and lean management) are quite significant, the ultimate value addition comes in the form of the return of satisfied customers. In the business world, constant pressure for innovation stems from increasing changes in customer demands and global technological challenges. Companies that get to the top and stay there are there in the first place because of their commitment to change through Six Sigma initiatives.
Six Sigma And The Customer
Six Sigma, a quality management tool founded on statistical approaches and devised by Motorola, helps improve customer satisfaction through significant changes to cost and product utility. The entire approach is innovative; with the implementation of Six Sigma, instead of attempting to fight with mechanics, the focus shifts automatically to strategies and integration of efforts.
Some companies are taking initiatives to take the Six Sigma methodology to customers, outside company walls and actively involving them in an effort to integrate them into the process. This approach is proving to be a resounding success by placing these corporations ahead of competition.
Engaging The Customer
Today's customers are wary that they get nudged into buying products by customer savvy marketers in the clutter that we call "the market". Six Sigma works to make things clear to the customers by sharpening the cutting edge (value) that customers are looking for in a product.
The customer is engaged strategically at a stage when plans are being drawn up. By listening to customers and involving them in the process, the company can gain an in -depth understanding of why they are moving in the direction that they are moving, locally as well as globally. This approach also helps in building trust and loyalty.
Companies like Motorola, who implement Six Sigma, go beyond product development and profits in their commitment to customers. In addition to their regular help line, they have established another line dedicated to this purpose. Customers can use this line of communication for more detailed questions relating to either product or service, and track the status of their original question. This is a classic example of individual level quality demands being met through Six Sigma implementation.
Looking Ahead
Another strategic approach has been taken by GE Commercial Finance, and is a true revolutionary step in the commercial lending business. The ACFC initiative (At the Customer, For the Customer,) clearly showed what the customers needed and why, with over 30% of them answering, they needed Six Sigma. Effective communication with customers has made GE a favorite among consumers. GE has successfully implemented the initiative and in addition, is now sharing its Six Sigma experiences with smaller customers who can't afford to implement Six Sigma in their own companies.
With the "belts" working from the front, companies can get into a win-win situation with their customers because of the feedback they receive. If this approach directly benefits the customers, it benefits the companies too. However old or large the company is, it gets to interact with its customers one-on-one. The positive result of this is seen in further building of a company's customer base and increased profitability. The goal of matching people with projects, made possible with Six Sigma, brings about a win-win situation for all.
About the Author
Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.
Six Sigma and Upper Management
by Tony Jacowski
The one ultimate reward that counts for any business organization is improvement of bottom line profitability and the return of satisfied customers. This end result must justify all the initiatives taken by upper management. Upper management utilizes a tool called "cost of poor quality (or "COPQ") as a barometer for evaluating six sigma projects. Apparently, it is the only way to get upper management to accept six sigma. The upper echelons of corporations have come to realize the importance of six sigma for its tangible economic benefits.
Understand the value of upper management support for quality/process improvement top down fully, when you learn that management does not realize the importance of investing that extra time and money in quality improvement or lacks the commitment. Let's be straight forward, this scenario is not uncommon. Six sigma has such lasting power and broad scope that transcend departments and exposes the need (though not always) for change in organizational structure. Both of these would be hard battles to fight unless strong management support was present. Resistance of this type could be due to organizational inertia, or it could also be intentional.
Six sigma calls for long haul, complete and in depth implementation, which is definitely not for the faint of heart. It is possible only if your organization has 100% commitment from top management. This is why experts place blame on upper management for the failure of six sigma. Only continuous, rock solid support, monitoring and encouragement from the top brass only can prevent the failure of six sigma. Straightforward intentions for implementation should come from a customer centric viewpoint and a desire to produce quality services/products.
The continuity of the program requires undivided and dedicated monitory support until the end of the project. Upper management identifies the need, sets the ball in motion and provides continuous support (managerial and financial), which is the lifeline for the success of six sigma implementation. If these elements are not present, achieving the stated goals over a long period of time become difficult, if not impossible. One initial green light from management will not suffice; it takes continued commitment and engagement to inspire and motivate the people involved until the end.
Six sigma is a complete quality management and turn around system. As such, it identifies organizational shortcomings, wherever there are. With upper management on board, implementation stages can be monitored; midway course corrections can be suggested and any possible roadblocks at various steps of implementation can be overcome. As you can see, six sigma can be successfully implemented with the commitment of complete organizational support.
What upper management needs to understand is that six sigma is a widespread and far- reaching quality improvement program where it has to play a critical role in order to see ultimate business goals succeed. Although the various 'belts' implement six sigma, they are selected, trained and motivated by top management for the implementation of six sigma methodology. The upper management until the very end must support them. Only in this way can six sigma bring about significant and long lasting results to the organization.
About the Author
Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.