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Incentive compensation to encourage 6 Sigma adoption

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  • #32822

    Robin Gates
    Member

    I am looking for information and examples of incentive compensation plans for managers and executives (not black belts, green belts, etc.) to encourage and reward their engagement and adoption of Six Sigma.  We need to get more managers developing charters, sponsoring projects, and generally making Six Sigma the way they work.  I am interested in what other companies have done by way of financial incentives to encourage this behavior.
    Thanks in advance for your help.
    Robin Gates

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    #88133

    Donna
    Participant

    One of the first things that you should implement is that your Leadership Team embrace the Six Sigma initiative and roll it out, with a pilot Green Belt training, having those that should attend be the “high potential” employees who in succession planning will be tomorrow’s leaders.  It’s crucial that management at the highest level roll it out, and incent the participants rather than themselves.  I was identified by managers to be in our Green Belt pilot program and we were identified as “high potentials” and just that is incentive as far as motivation goes.  The bonus/compensation rewards come through the normal performance and bonus programs that should already exist in an organization.  Good Luck …Donna

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    #88178

    Heebeegeebee BB
    Participant

    1) % of realized savings per project.
    2) non-Monetary comp (i.e. time off, etc…)
    3) Promotion/raise (designate as mgmt Hi-pot and FOLLOW-THROUGH with it.)

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    #88271

    Richard
    Member

    Our director of Engineering called all workers together to deliver his christmas message and opened by handing the first guy to complete green belt an evelope with an undisclosed sum of money.
    The number of people signing up for training doubled!  Lots of people pushing for black belt training now too.
     

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    #88278

    Arthur
    Participant

    Our top leaders had 20% of their incentives tied to the successful launch of six sigma in the first year.

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    #88285

    Matt M
    Participant

    “The bonus/compensation rewards come through the normal performance and bonus programs that should already exist in an organization.” 
    You shouldn’t have to reward non-practioners to buy in to Six Sigma, they should see the value after the first project is done which should return bottom-line results, which would feed in to their normal performance appraisals and rewards.
    Six Sigma practioners are rewarded, in my experience, due to the non-normal training (statistics, etc) and time involved with a certification.
    Good luck.

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    #88287

    Lisa
    Participant

    Julie, what were the specific metrics tied to ‘successful’ implementation of Six Sigma?
    Thanks,

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    #88289

    reinaldo
    Participant

    Robin,
    Additionally to the other buddies responses, i suggest you to consider a JIDOKA-LIKE ENVIRONMENT used by Toyota in its TPS (Toyota Production System).
    Jidoka helps to:
    Add humans judgment in their work environment
    Minimizes poor quality
    Makes the process more dependable.
    Even if the jidoka term means TO MAKE THE EQUIPMENT OR OPERATION STOP WHENEVER AN ABNORMAL OR DEFECTIVE CONDITION ARISES you could adapt and adopt it to your project environment.
    Juran called this jidoka, the autocontrol of the operator, in 1962.
    This is a rewarding extrinsic motivation factor in any teamwork environment.

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    #88298

    Thiede
    Participant

    Robin,  I’m currently reading a book called “Punished by Rewards” that describes how people are acutally demotivated by added incentives.  These executives have a job to do.  If your company expects Six Sigma engagement and deployment to be part of their job, they shouldn’t require extra incentives.  The best option would be to put the right people (i.e., advocates of Six Sigma) in those jobs  in the first place.

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    #88316

    Bayan
    Participant

     
    We have applied Six Sigma for one year, Six Sigma as a powerful method and technique has obviously proofed in our company. It reflected in total amount saving which has gained for the next three month. The first you must ensure that Si x Sigma Program is supported by Top management, because Six Sigma is top down program. Anything you do won’t exist in achieve saving w/o big support and commitment your President Director. According to how Six Sigma initiatives could reach company goal we have adopt incentive reward program which gives to all Managers related to their salary and bonuses while the team will take some reward according to their level of saving. The first you must set a plan gives clear rules and policy for your own company in doing Six Sigma project that approved and supported by your president director. Weekly control and monthly report about the progress of your Six Sigma also play an important rule in how to trace and solve your obstacle in doing the project. Successful campaign and Six Sigma orientation training program to all employee in your company also play an important role.

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    #88335

    Arthur
    Participant

    We had a total enterprise benefit goal, a BB density goal, a GB density goal, and a YB training goal.

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    #88351

    Jonathon
    Participant

    Who are the author & publisher of that book?

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    #88353

    Thiede
    Participant

    The book was written by Alfie Kohn.  Other information:
    Publisher: Houghton Mifflin Co; (September 1999)
    ISBN: 0618001816
    I have thoroughly enjoyed it and hope you do too…
     

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