Situation
I love facts and figures. That sentiment is precisely why I love Lean Six Sigma and probably why Lean and Six Sigma methodologies have been popular for years as methods for improving operational results. Simply put, Lean Six Sigma helps one identify the cause of a problem and implement a fix based on facts, rather than assumptions. This can produce improved results to your operation. But for every example of successful implementations, there are multiple examples of these approaches falling short. Hence, my hate of Lean Six Sigma. How can I resolve my own conflicted feelings and find the winning conditions that exist when Lean Six Sigma deliver sustainable cultural and financial impacts….and what YOU can do to set the stage for success.
Why does Lean Six Sigma fail to deliver?
As Satya S. Chakravorty noted in a Wall Street Journal article on January 25, 2010, most continuous improvement projects like Lean and Six Sigma start off great, but have no lasting impact. According to Chakravorty, 60% of Six Sigma initiatives fail to yield the anticipated results. When organizations look to black belts to lead the charge to improved results, they are investing in a methodology that helps correct specific issues, not one that changes behavior and creates a sustainable shift in culture…..which is what really leads to sustainability.
The project-like nature of six sigma initiatives encourages a disappointing cycle of “Do…done…gone.” Teams carry the Lean Six Sigma banner for a while, maybe even “do” some great things, and then invariably they will all decide the task is “done.” From there, processes and behaviors return to old habits and no one seems to know where all the gains have “gone.” Without management support systems in place to provide a solid foundation of clear focus, relevant targets, and clear accountabilities, managers can neither innovate nor continuously improve.
Not surprisingly, executives often complain they either don’t see or trust the financial impacts reported by Lean Six Sigma practitioners. This is because there is no real connection between project metrics and KPIs that predict bottom line growth. The ASQ (American Society for Quality), in an article entitled “The God that Failed” warns of overpromising results for Six Sigma where inadequate management (support) systems are in place. The article quotes a CEO of a respected German bank as saying “We have only realized a fraction of the savings…promised us.” (In the spirit of full disclosure, our own “Do Better. Be Sure.” tag line was inspired by my own meeting with an executive where he stated, “We think we are making improvements, but we’re just not sure.”)
Management systems drive sustainable change
Developing a robust management support system as part of attempting Lean Six Sigma, will ensure that you and your team will be successful.
Imagine your operation with the following attributes:
- Management and supervisors know the specific deliverables that they are accountable for; Specific, Measurable and Controllable items that leave no room for interpretation;
- They have clearly defined targets for their day to day activities that are analytically determined, and developed with buy-in from the shop floor to the boardroom
- They have the root cause problem solving skills, the communication and facilitation skills, and the trust to challenge each other to perform at world class levels
- They have the management processes and meetings in place to ensure that everyone is held accountable to reporting, understanding and interpreting their results….and creating solutions through Action Plans that are followed up upon until the issue is resolved, not just that the action was taken.
- They have a measurement and reporting system that gets the right information to the right people at the right time; including the tracking of the issues and actions ongoing in support of those key metrics you are following to ensure your operational excellence;
The way to make it work is to implement Lean Six Sigma supported by a culture of accountability, the leadership and management skills of your principals, and establish a system of measuring and improving Key Performance Indicators (KPIs), in a sustainable manner.
So I’m thinking of Lean Six Sigma for my operation…what is my first step? So, I’m not satisfied with my Lean Six Sigma implementation….what is my next step?
Operators and front line managers remember what the black belts preach: the answer to a particular problem is usually as simple as the conditions that created the problem in the first place. What’s needed is a straight forward process that ensures accountability from root cause identification (Definition of the problem) to closure (and Control). The Lean Six Sigma approach does yield impactful gains in many / most well executed environments. It’s the follow-up or Control / Sustain steps (depending on your emphasis on the Lean or Six Sigma part of the effort) where those gains start to taper off in terms of cultural discipline.
- The performance improvements gained in your attack on waste and operational variation also yield key measures to pursue to ensure the sustainability of your gains.
- Put those measures into constant use by implementing a management system that tracks these KPIs and focuses staff attention on the areas’ most in need of attention.
- When your KPI performance drifts from the ideal, take action and follow those actions from start to finish.
Lean Six Sigma practitioners complain that limited follow-through frustrates project implementation. Think of it this way: implementing Lean Six Sigma without first establishing an effective platform for management systems is simply putting the cart before the horse. Lean and Six Sigma methodologies only highlight business waste and opportunity; they do not guarantee a sustained process improvement or culture shift. Lasting continuous improvement is only possible by setting in place a platform that drives a systematic approach to issue identification, action planning and follow through and simplifies the data collection and reporting process.
About Us
Vice President, inprove Inc.
At inprove Inc., we support and enhance our clients own CI efforts by formulating and delivering HONEST and ACTIONABLE information via our incite Platform so they can get BETTER results and build CONFIDENCE in their improvement efforts.
inciteTM is designed by continuous improvement professionals for continuous improvement professionals. The catalyst for us was years spent working with, and being frustrated by, organizations’ inaccessible, incomplete and inaccurate performance data. Now with extensive experience in delivering HONEST data and ACTIONABLE information to operations and CI managers, we have re-invented the CI model.
Our inciteTM platform gives our clients the ability to collect information from any and all systems and devices and bring it to a single platform that not only highlights the controllable elements of performance, but integrates accurate performance data with action planning. The inciteTM Platform delivers the full spectrum of automated, manual and behavioral measures needed to know what is going on, and gives you the operational line of sight you need to focus employees on actions and resolution. inciteTM reinforces your CI practices and allows you to ultimately to change behavior on a sustainable basis.
For further information, contact Greg via email or visit www.inproveinc.com.