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And he discusses sixsigma (which certainly has issues) but as I have written before if you want to learn what value sixsigma offers listen to what Roger (and others such as Ron Snee, Gerry Hahn…) say. Hunter: an Innovator and Catalyst for Quality Improvement.
These mandated-from-above programs include Lean SixSigma initiatives with experts (" Belts ") in command, big IT implementations, and reengineering of major end-to-end processes. An executive in the company's finance operations adopted a SixSigma belt-driven approach to reduce costs in the company's global shared service centers.
The stories of how they have kept their processes fit are less well known than those of famous process fitness fanatics such as Toyota, with its Toyota Production System (also known as Lean), and GE, with its SixSigma program. DuPont started with SixSigma's classic focus on reducing product defects.
Engage the finance organization. Finance was on board at the company in our story. As I noted in a previous post "Keep Your Operations in Shape by Focusing on Management Processes," performance measurement (which is usually managed by finance) is one of four critical management processes for improvement program success.
Under CEO Jack Welch in the 1980s and 1990s, they adopted operational efficiency approaches (“ Workout ,” “SixSigma,” and “Lean”) that reinforced their success and that many companies emulated. You need to think like a portfolio manager, allocating resources both to innovate in your core and for the future.
The question is how to equip employees with the skills to handle complexities such as creating innovative solutions to emergent problems, understanding new markets, and pushing back on the "status quo." In our experience, social entrepreneurs can be extraordinary role models in this regard. However, the core skills they need are different.
So, in real terms, debt financing is essentially free. Accordingly, business leaders sought to improve efficiency by employing SixSigma, process reengineering, spans and layers, and other tools. Others reward easy-to-measure improvements in existing processes over less-easily-quantified innovations.
But increasingly, at the local level, innovative approaches involving unlikely partners playing unlikely roles are disrupting the status quo and addressing seemingly unsolvable challenges like those posed by Sandy. Government must adopt innovation practices that mirror those used by leading entrepreneurial companies around the world.
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