Q: Jack Welch, former CEO and chairman of GE, made the phrase "The Way We Work" popular among employees by associating it with the company's Six Sigma initiative. Do you think he was successful in internalizing Six Sigma in all work processes and people at GE? A: Jack Welch was successful in making it "the way we work." In all probability Six Sigma is not in all GE work processes and it probably should not be. From a change management perspective, there is a model that identifies various groups in an organization: 15 percent will change anything any time, 35 percent are early adopters, 35 percent are late adopters and 15 percent say "over my dead body." I have not seen anything to substantiate the percentages, but the four groups definitely exist. In most organizations, doing a good job with the first three categories is sufficient. When approximately 85 percent have institutionalized a change, the last group will either drift over or the culture will alienate them to the point they look for other options. From a Six Sigma and Lean perspective, you do not want to expend resources on all process. Unless you are completely leaned out, you will end up wasting resources improving non-value-added work. That is a losing strategy. Q: What are the most critical factors involved in changing business processes so that Six Sigma is part of the "organization's DNA"? A: At an organizational level, they are alignment and accountability. A clear vision or burning platform supported by effective strategies is absolutely critical in setting expectations for the rest of the organization. Vertical and horizontal alignments get everyone on the same page. Vertical alignment assures that the people are lined up with the vision. Many companies talk about this but few do it well. Horizontal alignment makes sure the processes are lined up with the customers. Most companies don't seem to realize this type of alignment is critical. When expectations are clearly deployed throughout the organization, there has to be accountability. Another GE mantra is "make your numbers." Your GE-to-English dictionary translates that as accountability. At the personal level, the issue boils down to leadership and the ability to demonstrate the following elements to send a clear and consistent message that Six Sigma is how we do business here: 1. Setting Focus Demonstrates a relentless, consistent, unwavering view of the importance in driving continuous improvement actions via Six Sigma. No blinking when the tough choices have to be made. 2. Structure Leadership teaches, coaches and makes decisions via the same structures that all other organization members abide by DMAIC. Leadership walks the talk and shows it every day in their actions 3. Discipline Leadership demonstrates an unwavering discipline in fact- and data-gathering through DMAIC versus decision making with hunches/personal feelings. Leadership is fluent in Six Sigma and participates in teams. Leaders demonstrate discipline and role model Six Sigma for everyone in the organization. 4. Ownership Ownership is demonstrated through a strong knowledge of the DMAIC tools, the key questions frequently asked, and the care taken to nurture further Six Sigma growth in the organization. 5. Resource Allocation Leadership makes sure that everyone in the organization has the needed resources to take the Six Sigma actions necessary to do every job better and eliminate waste. Leaders challenge the way resources are allocated, always verifying that projects are being worked on and given the resources that will allow the projects to add to the organization's overall performance. 6. Involvement That each employee can say: "I am just as involved as leadership in Six Sigma actions. Leaders routinely ask me questions about the black or green belt project I just completed. I know what other continuous improvement actions/wins have happened in my site because my leadership communicates with me regularly." |