Universal Broadband: A Basic Human Right?
Electricity was the big invention during the 20th century. The governments at that time took the measures that were necessary to ensure that electricity was available at reasonable prices to every citizen. This is the reason why electricity is such an integral part of any human civilization today. Just like electricity was the biggest innovation […]
Effect of BPO on the Economy of United States
In previous articles, we looked at how the BPO phenomenon has played itself out in India and other Asian countries that have derived humungous benefits to their economies. In this article, we look at the other side of the coin i.e. the benefits that accrue to the economies of the Western countries as they outsource […]
A Comparison of Healthcare Systems around the World
The Importance of Healthcare and Examples from around the World Health and Education are social sectors that need governmental support and funding. This is especially the case in developing countries where a vast majority of the people do not have the means to afford expensive and prohibitive medical care. This is the reason why many […]
Why are Industrial Companies Acquiring Tech Startups?
Mergers and acquisitions used to be fairly straightforward in the yesteryears. This is because companies would only make acquisitions within their own industry. This meant that if a technology-based startup were up for grabs, the list of potential suitors would only include companies like Google and Microsoft. This has completely changed now. Traditional companies like […]
Why India Must Revamp its Education Sector If it Wants to Become a Global Powerhouse
The Stratification of the Indian Education Sector For a country that prides itself on its rich history and civilization superiority, the present state of its Education Sector is nothing to feel proud about. Indeed, barring for graduates from the prestigious IITs, IIMs, and other institutes at the top of the heap, the rest of the […]
As mentioned in the earlier articles, Six Sigma helps the organization develop at various levels viz. operational, tactical and strategic. While the operational and tactical goals of cost reduction and increased customer satisfaction are well understood and appreciated, the strategic intent behind Six Sigma is not well recognized. It is the pivotal factor, however in the success or failure of any Six Sigma initiative in the organization. Here is an explanation of the same:
When Six Sigma was introduced by Motorola, it became a strategic advantage for them. Since, not many of their competitors had the efficiency of Six Sigma tools, they were leading these corporations and the marketplace. However, with the passage of time, every major corporation on the planet has developed a Six Sigma program. Efficiency is now the name of the game. Hence, from a strategic standpoint, there are now Six Sigma programs competing against other Six Sigma programs and the better ones win!
Over the course of time, there have been numerous studies that have been conducted about the efficiency of these Six Sigma programs. It has been found out that companies that follow Six Sigma projects sporadically do not stand to gain as much from it as do companies that have a well co-ordinated effort. Today’s marketplace requires using Six Sigma processes to execute the companywide strategies.
An organization that is truly dedicated to Six Sigma philosophy will find many and varied projects that can be executed. Even an already Six Sigma organization needs to be developed over time. This is because technological changes unleash better ways of doing work and the organization must continuously adapt.
Hence, the challenge lies in prioritizing between the different Six Sigma projects and executing the correct ones. Projects must be checked for strategic fit i.e. how do they help meet the long term goal of the organization in question.
Example: A company like Facebook that relies on intimate knowledge of its customers to place ads, must execute Six Sigma projects related to Customer Relationship Management (CRM) first and then if resources are left must consider alternative projects. Facebook would not want to be operationally efficient at the cost of being misdirected from its long term strategy.
It is for this reason that Six Sigma has been tied up with a process called Hoshin Kanri by the Japanese. Roughly translated into English, it means management of direction. Six Sigma efforts, therefore need to be well directed.
Your email address will not be published. Required fields are marked *
The Cost of Poorly Performing Processes – Need for Six Sigma
February 12, 2025
