Business process management/Insufficient execution methods - six sigma falls short
Summary
editSix Sigma arose from the total quality management, notably Edward Deming's work with Japan following World War II. While the movement enjoyed a brief flair in the United States, Americans were ill-equipped to understand the statistical measures required to make TQM applicable. Likesame, Six Sigma, which is a statistical methodology that tolerates error no greater than six standard deviations from the mean, required more analytical training than possessed. As a consequence, Six Sigma, like TQM was contorted to mean something quite alien from its founding principles; it has taken the connotation of management philosophy.
Six Sigma and its sister methodologies, like LEAN, offer many possibilities for BPM programs, but many organizations have failed to maximize their potential. The essence of Six Sigma is a structured way to decompose problems and to implement small, measurable changes. Those changes are prioritized and their impact assessed at each stage of a project. Demand management is addressed very well with Six Sigma because it forces prioritization of possible opportunities, and that prioritization can be based on strategic benefit to the business as its dominant criteria.
In practice though, Six Sigma is too heavy-handed and too theoretical. Rooted in manufacturing, Six Sigma struggles to translate to organizational operations, even those that roll out *belt programs. Six Sigma techniques often end in the identification of vague generalities rather than in a deliverable solution road map. Some organizations have even erected walls to isolate Six Sigma practitioners such that at the moment that specific IT systems or functions become involved the project becomes someone else's responsibility.
In selecting the methods, choose practical and realistic options. Make sure that the full spectrum of method requirements is covered by the methods chosen. Selection, execution, deployment, and validation must all be addressed. This might require combining complementary methods. Otherwise, there will be gaps in the engine. Even if Six Sigma is the method of choice, do not simply pay homage to it. Make sure that projects are able to deliver the identified changes and demonstrate the quantitative results. In short, embrace the study of econometrics and statistics.
Applies to
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Charter for the BPM Engine |