Six sigma and business turnaround is an effective approach to turning around poor business performance.
Six Sigma is renowned for its ability to improve business outcomes and processes. Design for Six Sigma, a second Six Sigma and Business Turnaround methodology, assists companies with increasing their innovation capabilities and new initiative success rate. Now Six Sigma has entered the realm of business turnaround as it facilitates the development of a clear path to success.
In essence Six Sigma and Business Turnaround is about creating a new vision, strategy and aligning the company’s processes and resources to deliver its new objectives. Usually the focus with a turnaround is about productivity improvement, cost management, cash generation and low hanging growth opportunities.
Alongside a due diligence (Voice of the Business—VOB) exercise, when looking at turning around a loss making company, the new leadership should seek to understand the Voice of the Customer (VOC). Any successful business knows what its customers’ current and future needs are. Highly successful companies have aligned their processes and resources to create value and satisfy those needs.
Six Sigma and Business Turnaround aids in gathering and analysing the VOC while measuring a company’s internal process capabilities.
Through a filtration mechanism the VOC, and associated opportunities, are prioritised. From this flows a strategic intent.
Once the company’s strategies are defined, objectives can be crystallised and several project ideas developed (for each objectives) to bring about improvement and business innovation. This ideas include process, systems, resources etc. These project ideas are entered into a hopper and prioritised against the company’s key outcomes required.
Project ideas are segmented into improvement projects (DMAIC) and innovation projects (DFSS). Experienced Six Sigma personnel will assist the new leadership bring about swift yet sustainable improvement while laying a platform for future growth through the innovation projects.
What makes Six Sigma powerful in business turnaround situations is its drive to make decisions based on data. Subjectivity is forgone leaving objectivity to decide the course of action.
Because of its focus on measures, progress can be measured at various levels within an organization and quick interventions launched when processes, systems or resources stray from course.
Once Six Sigma has improved or redesigned a process, its control mechanism and self-policing system ensures continuous improvement and continuous innovation.
In the final analysis, Six Sigma and Lean are based on common yet proben business practices ... often not commonly applied in modern practices.
Achieve process excellence offers a range of solutions move businesses into to higher, more profitable gear.
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