By Tom Devane
It would be great if every organization had senior management fully on board from the start of a Six Sigma program. Think Larry Bossidy at AlliedSignal and Jack Welch at GE. But not every organization is so lucky; many improvement efforts start at middle or lower levels. A middle manager gets a vision about how Six Sigma could dramatically improve operations. Or proactive front-line workers seize the initiative to map out and improve their process. Unfortunately, isolated improvement projects rarely make it to full-blown organization-wide Six Sigma initiatives. However, there are a couple of ways to turn on management support for a continuous improvement program organization-wide.
While continuous process improvement is widely regarded as worthwhile, dedication of time and money to do it is often elusive. Why? Continuous improvement especially the large-scale variety has few constituencies at the start. Senior management is reluctant to dedicate time and other resources for improvement when there are "products to get out the door" and short-term financial pressures. Front-line workers feel it takes time away from their "real job" and that "management has never paid attention to me in the past, so what makes this different?" And middle managers balk at projects starting in their area for fear of embarrassment or punishment for years of poor-performing processes.
But there are two proven, successful ways to get a foot in the door for organization-wide Six Sigma efforts that address the reluctance of senior management:
Their common underlying principle is that if Six Sigma benefits can be shown on a small scale, then senior management will buy into the program and dedicate resources organization-wide. The key difference is that Stealth Six Sigma begins under the radar scope of senior management, while Limited Commitment Six Sigma begins with a try-it-and-see blessing of senior management.
The objective of a Stealth Six Sigma project is to demonstrate significant improvement benefits while maintaining a low organizational profile. A key to success for producing dramatic results quickly comes from combining Lean waste elimination principles with Six Sigma statistical tools. In one high-tech manufacturing company, a two-week improvement project increased annual plant capacity by $225 million. The team used Lean principles and process maps to streamline processes through the circuit board test and engineering departments. This led to a broader deployment of Six Sigma.
While there are many variations, a general Stealth Six Sigma approach is:
Approximate elapsed time*
2. Articulate needs for the project:
3. Use project selection criteria to evaluate potential projects. Starter criteria for a candidate project include:
Other custom criteria should be added to demonstrate Six Sigma's value to management.
The objective of a Limited Initial Commitment Six Sigma project is to address several issues of executive interest and show dramatic improvement quickly. Senior management is actively involved up front in articulating business challenges and scoping three improvement projects. If benefits materialize, then Six Sigma is rolled out to the organization. Senior management does not need to commit to a full-blown, organization-wide effort from the start. General steps for Limited Initial Commitment Six Sigma are:
2. Collaboratively develop project selection criteria and establish three projects that meet them. Starter criteria for the three-project portfolio would include:
Other custom criteria can be added to demonstrate Six Sigma's value.
Some people may confuse Limited Initial Commitment Six Sigma with the "pilot approach" of yesteryear's improvement projects. This approach differs in three key ways:
Ten factors critical to overcoming initial senior management Six Sigma reluctance via either Stealth or Limited Initial Commitment Six Sigma are:
Stealth Six Sigma and Limited Initial Commitment Six Sigma are good approaches to getting top management on board as strong supporters of a Six Sigma program, but they are not foolproof. Thus, implementing them requires the full attention and extra care from those involved.
Tom Devane is an internationally recognized consultant, author and workshop leader who helps organizations implement performance improvements. His clients include Hewlett-Packard, Johnson & Johnson, GE, Microsoft, AT&T, International Sematech, the U.S Federal Judicial Court System and the government of South Africa. Prior to founding his own firm 16 years ago, he was a practice director at a global Big Six consulting firm. Mr. Devane has a bachelor's and master's degree in finance. He is a guest lecturer and adjunct faculty member at Cornell University, the University of Denver and Sonoma State University. He is the author of two books, Integrating Lean Six Sigma and High-Performance Organizations and The Change Handbook. Mr. Devane can be reached at tomd@tomdevane.com.