2.16.2010

Corporate Sigma: Making Lean Six Sigma Holistic

One of the common complaints I hear about Lean Sigma initiatives is the failure of the organization to maintain momentum. Often the initiative begins with enthusiasm and energy and important strides are accomplished, but then it encounters the "glass wall" -- the initiative plateaus and the crucial goals remain unattainable. I posed the question "Why do Lean Sigma initiatives often deliver below expectations?" to Anwar El-Homsi (author of Corporate Sigma: Optimizing the Health of Your Company with Systems Thinking). He offered this reply:

"Lean Six Sigma tools have been successful in improving processes within the corporation, and several of these successes are well documented by many the companies. However, even with the documented successes due to the application of these tools, many companies still failed to meet strategic business goals. Why these corporations failed in spite of a successful Lean Six Sigma program? What did they miss? Some of the Lean Six Sigma program success factors include the need to have the right leadership, a compelling organizational vision, a well defined business plan, projects that are truly linked to business objectives, engaged and motivated people to execute the plan, etc. But one of the most important factors that imperative for success is the utilization of systems thinking. We need to think about improving the entire company holistically - not just focus on individual processes.

Sometimes, an improvement to a process in one area of the corporation can negatively impact another area or the entire company/business. Often, this negative effect is delayed and the impact is not realized until it is too late to do anything about it. The concept of 'Corporate Sigma' eliminates this problem and it addresses all the factors listed above. It combines the power of Lean Six Sigma and Systems Thinking to assess the performance and the quality level of the entire company, assuring both Lean Six Sigma program and corporate success."

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