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 a business turnaround as it facilitates the development of a clear path to success.
In essence, Six Sigma and Business Turnaround are 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 analyzing the VOC while measuring a company’s internal process capabilities.
Six Sigma and Business Turnaround Process
Through a filtration mechanism the VOC, and associated opportunities, are prioritized. From this flows a strategic intent.
Once the company’s strategies are defined, objectives can be crystallized and several project ideas developed (for each objective) to bring about improvement and business innovation. These ideas include process, systems, resources, etc. These project ideas are entered into a hopper and prioritized 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 to bring about swift yet sustainable improvement while laying a platform for future growth through 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 are 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 ensure continuous improvement and continuous innovation.
In the final analysis, Six Sigma and Lean are based on common yet proven business practices … often not commonly applied in modern practices.
Achieve process excellence offers a range of solutions to move businesses into higher, more profitable gear.
