DEPLOYMENT OF SIX SIGMA METHODOLOGY IN HUMAN RESOURCE FUNCTION: A CASE STUDY
By Bill Wyper and Alan Harrison.
Need for improvement in HR
Prior to the introduction of improvement initiatives the HR function did not enjoy a desirable reputation in the company. HR was seen as reactive, unco-ordinated, over-manned and unprofessional, delivering poor, slow and non cost-effective services.
HR employees were working hard to keep broken and ill-defined processes in place, with a level of application that bore no resemblance to the required results. The outputs of the key HR processes were not clearly defined. This image had a demoralizing effect on HR employees as they were aware that their considerable efforts were not appreciated in the business.
Many research studies have indicated that Human Resource Management (HRM) processes have a high impact on business performance. For example, in their 10-year study of 100 UK small and medium size businesses, Patterson et al. (1997) concluded that "HRM practices . . . are the most powerful predictors of change in company performance".
Why choose Six Sigma?
Comparison between Six Sigma and HRM versus traditional and personnel core values reveals that Six Sigma and HRM share the same core values of social and technical systems, as presented in Fig. 1.
Business environment prior to Six Sigma deployment
The company ownership had just been changed and the corporate world-wide integration process, including restructuring, was in its early stage. The global organization business strategy had been defined and communicated.
The newly appointed HR Director realized that the HR strategy was critical to the business survival and success. On the first meeting with HR employees, he shared goals of HR strategy, as: "Right people in the right place at the right time at the right cost".
A radical view of HR was developed and promoted, which determined that HR consists of the following six basic processes that can provide the strategy:
(1) Organization environment
(2) Employee development
(3) Resourcing
(4) Reward
(5) Communication
(6) Organization improvement.
Organization environment and organization improvement surround the four key processes, as presented in the model in Fig. 2, and create the climate and ability for improvement.
Process definition was followed by definition of HR structure, roles and responsibilities and measures of performance. An HR function improvement programme was initiated based on deployment of Six Sigma methodology, benchmarking and measurement of strategy implementation and customer results.
What is Six Sigma?
Six Sigma is a logical and methodical approach to achieving continuous improvements in areas critical to the success of any manufacturing or service-oriented business.
This process improvement methodology was developed in the 1980s in Motorola's high-volume manufacturing environment. This has contributed to the creation of the general opinion that Six Sigma is only applicable to high-volume, manufacturing processes. Actually, Six Sigma is applicable to both manufacturing and service industries, and to both high- and low-volume production environments.
In the first 5 years of Six Sigma implementation, Motorola achieved savings of $US2.2 billion (Harry, 1994). Other companies followed, e.g. ABB, Allied Signal, Bombardier, General Electric.
Six Sigma starts with the application of statistical methods for translating information from customers into specifications for products or services being developed or produced. Six Sigma is a business strategy, and a philosophy of one working smarter not harder. It promotes and requires different behaviour and a new way of thinking--facts-based, statistical thinking, just as predicted by H. G. Wells, who stated that: "Statistical thinking would one day be as necessary for efficient citizenship as the ability to read and write".
Six Sigma is named after the process that has six standard deviations on each side of the specification window. Such a process produces 3.4 defects per one million opportunities in the long term. The Six Sigma model of change is based on Deming's plan-do-check-act model:
Prioritize: Which processes have the highest priority for improvement, i.e. the key processes that will enable maximum leverage and customer satisfaction?
Measure: What is the capability of the process?
Analyse: When and where do defects occur?
Improve: How can Six Sigma capability be achieved? What are the vital few factors that control process results?
Control: What controls will we put in place to sustain the gain?
Six Sigma is not a short-term, quick fix improvement project. Committed, competent and charismatic leadership is essential to coach and guide in implementation of this holistic, long-term continuous improvement methodology.
Improvement team
The Six Sigma HR team was established, involving HR process owners, facilitator (Six Sigma Black Belt) and mentor (HR Director). Internal customers were identified as critical stakeholders and their participation was secured through their direct/indirect representation or through feedback communication.
The main roles of stakeholders were as follows:
Internal customers: to participate in the specification of objectives and targets, selection of particular measures of performance which are aligned with the overall business and HR strategy and to provide a feedback.
HR process owners and participants: in addition to the same role as of internal customers, to learn and deploy Six Sigma improvement tools and to develop, implement and sustain in continuous improvement of their processes that optimize measures of performance to the satisfaction of all stakeholders.
The Six Sigma Black Belt had a role to facilitate the team in Six Sigma deployment, from problem definition to sustained improvement implementation, to identify and provide necessary Six Sigma training and to facilitate all participants to deploy improvement tools in the most effective and efficient way in order to optimize processes against selected measures of performance.
The mentor's role was to define required core values and promote them by example, to lead and participate in the change, to gain commitment, to motivate, coach and build trust, and to resolve, overcome or remove the barriers.
The HR team developed team values based on integrity, honesty, openness, reliability, mutual respect to each other, encouragement of participation and mutual support with no status barriers.
Objectives
The primary team objectives were to develop and implement HR processes and measures of performance with embedded continuous improvement, owned by HR process participants, that would deliver defined strategy, with the focus on complete internal customer satisfaction.
The secondary objectives were to increase job security and survival of HR central within the company, increase employability of HR staff, promote Six Sigma and promote the success of empowered, high-performance teams.
Methodology: Deployment of Six Sigma process improvement methodology
The Six Sigma (prioritize-measure-analyse-improve-control) change model was followed with fact-based decision-making.
Prioritize
Prioritization started with identification of the service provided. Customers were identified and asked to define what they considered as important service characteristics. Process needs were identified to provide a service that satisfied the customers.
Measure
The role of measurement is to get new questions, as it is most likely that the same questions will produce the same results. As we want to change results we need to have new questions that can indicate the direction of breakthrough improvements. Generally, measures of performance were selected that have an impact on cost, quality, throughput time and/or human reaction. Quality function deployment was used to identify and analyse measures of performance that are aligned with customer requirements and HR strategy objectives.
The analysis started with the development of HR process maps, which effectively revealed shortcomings in the processes with immediate remedies and benefits. Communication, resourcing, rewarding and development were selected as the first processes to be analysed. A standard process analysis tool was applied, as it would have been applied to any manufacturing process. For example, effectiveness and efficiency of each process step were challenged by identifying value added, 'dead-ends', cycle time, rework and defects, complexity, etc.
An example of a communication process map is presented in Fig. 3. Internal customers and other relevant stakeholders were involved in the definition of the process maps, for example interviews with employees, HR employees and senior staff who have stakes in a particular HR process.
The criteria for measures of performance (MOPS) selection were agreed by the team, with the main objectives:
to ensure alignment of HR and business strategic objectives;
to define critical-to-quality measures (CTQ);
to define critical-to-cost measures (CTX);
to define critical-to-throughput time measures (CTT);
valuable to organization;
valuable to individual;
easy to understand and remember.
A cost of poor quality estimate was performed. For example, costs of involvement in employment tribunals were very tangible and measurable, and could be regarded as an outcome of the redundancy process, but most other processes have less tangible costs of poor quality attached to them.
A clear definition of process scope and measures of performance that are within the control of HR did focus evaluation and improvement efforts. For example, it is hard to avoid lengthy (and perhaps unnecessary) debates of costs of poor quality of the communication process unless the scope of the communication process is clearly determined and accepted by interested stakeholders.
Internal customer satisfaction has been regarded as an important element as well. High positive correlation between improvement actions and customer satisfaction confirmed effectiveness of measures of performance.
The HR Director introduced upward appraisal from the HR team on his leadership performance to help create the necessary environment for improvement.
Analysis
All data were tested against the CHART[copyright] data test (complete-honest-accurate-relevant-timely), i.e. no data could enter the analysis stage unless they satisfied the CHART test.
Appropriate Six Sigma tools were deployed to monitor and analyse performance of processes. For example, a statistical control chart was used to monitor the quality level of communication process feedback. The lower control limit (LCL) was calculated by following general rules for statistical control charts. In this example, it means that the current process has an LCL equal to 2.8, which is below the minimum target (3.1).
The facilitator helped communication process participants to understand the meaning and relevance of the control chart and evaluate correlation between those hard facts and internal customers' perception and satisfaction levels. In this case, the decision was to leave the process as it is, and deploy resources in improvement actions in other HR processes, which had higher priority.
The control chart was also used to monitor recruitment time in the recruitment process. There were few measuring points above the upper control limit (UCL). The chart helped recruitment process owners to single out those occasions and analyse causes of so unusually long a recruitment time. A further analysis of the recruitment process was performed, in order to identify the vital few parameters that have an impact on recruitment time (e.g. position type, geographical proximity of recruits, type and timing of advertising, etc.), and recruitment methods were modified to prevent future occurrences.
In the communication process the rate of return of feedback sheets was monitored, applying a run chart. After a trend analysis, the process owners set the targets they wanted to achieve, and a time-scale. They monitored impact of improvement actions on a run chart.
A cause and effect diagram was applied to identify all possible elements that have an input into the communication process, and to single out the vital few parameters that have a leverage over feedback return rate.
Analysis was performed by process owners, with facilitation of Six Sigma Black Belt. Direct participation supported sharing of objectives and ownership of improvement actions. Targets were set based on customer requirements and process capabilities (where measurements proved that process was in control). The primary goal of the analysis was to identify the vital few parameters that affect process result. Those parameters were identified by using the experience of process participants, correlation analysis and customers feedback.
Other Six Sigma tools were deployed as well, for example Pareto analysis was used to analyse reasons for leaving the company.
Improve
Development and implementation of improvement solutions followed identification of vital input parameters that affect selected process measures of performance (MOPs). onitoring of improvement actions was realized through implemented HR database. Vital process inputs and process results were monitored and correlation verified.
The focus has gradually shifted from monitoring MOPs to measuring and controlling inputs that control MOPs and reporting MOPs trends.
Control
The key control objective is to sustain and get a continuous improvement process embedded into HR processes.
A quarterly HR review report was developed and issued and presented by HR. It contained process analysis results (control charts, histograms, trends and other monitoring charts), conclusions, observations and improvement actions to be completed by the next review and a Six Sigma score chart (Sigma Benchmark of all HR processes, Zb).
Achieved benefits
The cost of HR function per employee has been reduced by 34% in 18 months, with the same or better service provided, and an overhead cost reduction of pound250000 has been achieved. Businesses have achieved budgeted turnover with 15% fewer people and, for the first time, annual employee bonus.
Overall outcomes of improvement activities are better, faster and more cost-effective HR services to the business. HR systems now transform problems into preventive actions that minimize the likelihood of reoccurrence.
HR employees started enjoying greater customer satisfaction and loyalty (chocolate gifts were unheard of before in the HR Department). The future of the internal HR Department started to look more secure. It was recognized that HR dared to measure themselves, change and had been proactive. HR employees have originated a number of improvement ideas, for example idea to utilize the Intranet to improve efficiency of structured communication. They moved from being compliant to committed employees.
Reduction in throughput time, defect and rework are among many elements that contribute to sizeable tangible cost savings from improved processes. Intangible costs of poor quality have been recognized, for example development of closer teamwork made internal communication more effective and efficient.
The implementation of the HR processes has supported proactive behaviour and customer focus, and has aligned personal, team and company goals around HR and business strategy. The core values and benefits of continuous learning and the Six Sigma way of thinking have become familiar and credible. Many sceptics recognized that Six Sigma could improve service processes as well.
The benefits of the culture of participative management, teamwork and Six Sigma have been recognized in the wider organization. This proactive approach has changed the perception in the organization of HR, now that HR has created the model, and assumed the role of coach, for the deployment of Six Sigma in the business.
Conclusions
The deployment of Six Sigma in HR processes confirmed what we have already seen in the last 6 years of implementation of Six Sigma in various manufacturing processes: the strengths and simplicity of the methodology, and enormous benefits for all business stakeholders, from suppliers, employees, management . . . to customers and shareholders.
A number of similar issues in the implementation of Six Sigma in HR and manufacturing processes have been identified, for example:
importance of people issues in management of change (e.g. fear of change, fear of being measured, not dissatisfied with present, etc.);
need to involve suppliers and customers;
benefits of clear definition of the process;
effectiveness and simplicity of Six Sigma tools;
importance of effective and efficient CHART[copyright] data collection system;
importance of criteria for MOPs selection.
But, above all, that successful implementation of Six Sigma depends on leadership.
Some differences between the application of Six Sigma in manufacturing and HR processes have been identified as well:
lower initial credibility of Six Sigma in HR;
more difficult definition of process scope and higher impact of perceptual elements;
direct dealing with people can be more frustrating, but more rewarding as well;
high intangible cost of poor quality (e.g. recruitment of false positive);
less tangible measurements require more creative approach;
higher variety in customer requirements.
The simplicity and effectiveness of Six Sigma are, simultaneously, its strongest and weakest points. For example, mismanagement of analysis results can easily create unbridgeable implementation barriers.
Leadership is one of the keys to successful implementation of Six Sigma, a holistic, long-term continuous improvement system, and the quality of leadership will have a profound effect on the level of achieved results.
Excellence is achieved by getting the right people to want to do the right things in the right way.
JSF
By Bill Wyper and Alan Harrison.
Need for improvement in HR
Prior to the introduction of improvement initiatives the HR function did not enjoy a desirable reputation in the company. HR was seen as reactive, unco-ordinated, over-manned and unprofessional, delivering poor, slow and non cost-effective services.
HR employees were working hard to keep broken and ill-defined processes in place, with a level of application that bore no resemblance to the required results. The outputs of the key HR processes were not clearly defined. This image had a demoralizing effect on HR employees as they were aware that their considerable efforts were not appreciated in the business.
Many research studies have indicated that Human Resource Management (HRM) processes have a high impact on business performance. For example, in their 10-year study of 100 UK small and medium size businesses, Patterson et al. (1997) concluded that "HRM practices . . . are the most powerful predictors of change in company performance".
Why choose Six Sigma?
Comparison between Six Sigma and HRM versus traditional and personnel core values reveals that Six Sigma and HRM share the same core values of social and technical systems, as presented in Fig. 1.
Business environment prior to Six Sigma deployment
The company ownership had just been changed and the corporate world-wide integration process, including restructuring, was in its early stage. The global organization business strategy had been defined and communicated.
The newly appointed HR Director realized that the HR strategy was critical to the business survival and success. On the first meeting with HR employees, he shared goals of HR strategy, as: "Right people in the right place at the right time at the right cost".
A radical view of HR was developed and promoted, which determined that HR consists of the following six basic processes that can provide the strategy:
(1) Organization environment
(2) Employee development
(3) Resourcing
(4) Reward
(5) Communication
(6) Organization improvement.
Organization environment and organization improvement surround the four key processes, as presented in the model in Fig. 2, and create the climate and ability for improvement.
Process definition was followed by definition of HR structure, roles and responsibilities and measures of performance. An HR function improvement programme was initiated based on deployment of Six Sigma methodology, benchmarking and measurement of strategy implementation and customer results.
What is Six Sigma?
Six Sigma is a logical and methodical approach to achieving continuous improvements in areas critical to the success of any manufacturing or service-oriented business.
This process improvement methodology was developed in the 1980s in Motorola's high-volume manufacturing environment. This has contributed to the creation of the general opinion that Six Sigma is only applicable to high-volume, manufacturing processes. Actually, Six Sigma is applicable to both manufacturing and service industries, and to both high- and low-volume production environments.
In the first 5 years of Six Sigma implementation, Motorola achieved savings of $US2.2 billion (Harry, 1994). Other companies followed, e.g. ABB, Allied Signal, Bombardier, General Electric.
Six Sigma starts with the application of statistical methods for translating information from customers into specifications for products or services being developed or produced. Six Sigma is a business strategy, and a philosophy of one working smarter not harder. It promotes and requires different behaviour and a new way of thinking--facts-based, statistical thinking, just as predicted by H. G. Wells, who stated that: "Statistical thinking would one day be as necessary for efficient citizenship as the ability to read and write".
Six Sigma is named after the process that has six standard deviations on each side of the specification window. Such a process produces 3.4 defects per one million opportunities in the long term. The Six Sigma model of change is based on Deming's plan-do-check-act model:
Prioritize: Which processes have the highest priority for improvement, i.e. the key processes that will enable maximum leverage and customer satisfaction?
Measure: What is the capability of the process?
Analyse: When and where do defects occur?
Improve: How can Six Sigma capability be achieved? What are the vital few factors that control process results?
Control: What controls will we put in place to sustain the gain?
Six Sigma is not a short-term, quick fix improvement project. Committed, competent and charismatic leadership is essential to coach and guide in implementation of this holistic, long-term continuous improvement methodology.
Improvement team
The Six Sigma HR team was established, involving HR process owners, facilitator (Six Sigma Black Belt) and mentor (HR Director). Internal customers were identified as critical stakeholders and their participation was secured through their direct/indirect representation or through feedback communication.
The main roles of stakeholders were as follows:
Internal customers: to participate in the specification of objectives and targets, selection of particular measures of performance which are aligned with the overall business and HR strategy and to provide a feedback.
HR process owners and participants: in addition to the same role as of internal customers, to learn and deploy Six Sigma improvement tools and to develop, implement and sustain in continuous improvement of their processes that optimize measures of performance to the satisfaction of all stakeholders.
The Six Sigma Black Belt had a role to facilitate the team in Six Sigma deployment, from problem definition to sustained improvement implementation, to identify and provide necessary Six Sigma training and to facilitate all participants to deploy improvement tools in the most effective and efficient way in order to optimize processes against selected measures of performance.
The mentor's role was to define required core values and promote them by example, to lead and participate in the change, to gain commitment, to motivate, coach and build trust, and to resolve, overcome or remove the barriers.
The HR team developed team values based on integrity, honesty, openness, reliability, mutual respect to each other, encouragement of participation and mutual support with no status barriers.
Objectives
The primary team objectives were to develop and implement HR processes and measures of performance with embedded continuous improvement, owned by HR process participants, that would deliver defined strategy, with the focus on complete internal customer satisfaction.
The secondary objectives were to increase job security and survival of HR central within the company, increase employability of HR staff, promote Six Sigma and promote the success of empowered, high-performance teams.
Methodology: Deployment of Six Sigma process improvement methodology
The Six Sigma (prioritize-measure-analyse-improve-control) change model was followed with fact-based decision-making.
Prioritize
Prioritization started with identification of the service provided. Customers were identified and asked to define what they considered as important service characteristics. Process needs were identified to provide a service that satisfied the customers.
Measure
The role of measurement is to get new questions, as it is most likely that the same questions will produce the same results. As we want to change results we need to have new questions that can indicate the direction of breakthrough improvements. Generally, measures of performance were selected that have an impact on cost, quality, throughput time and/or human reaction. Quality function deployment was used to identify and analyse measures of performance that are aligned with customer requirements and HR strategy objectives.
The analysis started with the development of HR process maps, which effectively revealed shortcomings in the processes with immediate remedies and benefits. Communication, resourcing, rewarding and development were selected as the first processes to be analysed. A standard process analysis tool was applied, as it would have been applied to any manufacturing process. For example, effectiveness and efficiency of each process step were challenged by identifying value added, 'dead-ends', cycle time, rework and defects, complexity, etc.
An example of a communication process map is presented in Fig. 3. Internal customers and other relevant stakeholders were involved in the definition of the process maps, for example interviews with employees, HR employees and senior staff who have stakes in a particular HR process.
The criteria for measures of performance (MOPS) selection were agreed by the team, with the main objectives:
to ensure alignment of HR and business strategic objectives;
to define critical-to-quality measures (CTQ);
to define critical-to-cost measures (CTX);
to define critical-to-throughput time measures (CTT);
valuable to organization;
valuable to individual;
easy to understand and remember.
A cost of poor quality estimate was performed. For example, costs of involvement in employment tribunals were very tangible and measurable, and could be regarded as an outcome of the redundancy process, but most other processes have less tangible costs of poor quality attached to them.
A clear definition of process scope and measures of performance that are within the control of HR did focus evaluation and improvement efforts. For example, it is hard to avoid lengthy (and perhaps unnecessary) debates of costs of poor quality of the communication process unless the scope of the communication process is clearly determined and accepted by interested stakeholders.
Internal customer satisfaction has been regarded as an important element as well. High positive correlation between improvement actions and customer satisfaction confirmed effectiveness of measures of performance.
The HR Director introduced upward appraisal from the HR team on his leadership performance to help create the necessary environment for improvement.
Analysis
All data were tested against the CHART[copyright] data test (complete-honest-accurate-relevant-timely), i.e. no data could enter the analysis stage unless they satisfied the CHART test.
Appropriate Six Sigma tools were deployed to monitor and analyse performance of processes. For example, a statistical control chart was used to monitor the quality level of communication process feedback. The lower control limit (LCL) was calculated by following general rules for statistical control charts. In this example, it means that the current process has an LCL equal to 2.8, which is below the minimum target (3.1).
The facilitator helped communication process participants to understand the meaning and relevance of the control chart and evaluate correlation between those hard facts and internal customers' perception and satisfaction levels. In this case, the decision was to leave the process as it is, and deploy resources in improvement actions in other HR processes, which had higher priority.
The control chart was also used to monitor recruitment time in the recruitment process. There were few measuring points above the upper control limit (UCL). The chart helped recruitment process owners to single out those occasions and analyse causes of so unusually long a recruitment time. A further analysis of the recruitment process was performed, in order to identify the vital few parameters that have an impact on recruitment time (e.g. position type, geographical proximity of recruits, type and timing of advertising, etc.), and recruitment methods were modified to prevent future occurrences.
In the communication process the rate of return of feedback sheets was monitored, applying a run chart. After a trend analysis, the process owners set the targets they wanted to achieve, and a time-scale. They monitored impact of improvement actions on a run chart.
A cause and effect diagram was applied to identify all possible elements that have an input into the communication process, and to single out the vital few parameters that have a leverage over feedback return rate.
Analysis was performed by process owners, with facilitation of Six Sigma Black Belt. Direct participation supported sharing of objectives and ownership of improvement actions. Targets were set based on customer requirements and process capabilities (where measurements proved that process was in control). The primary goal of the analysis was to identify the vital few parameters that affect process result. Those parameters were identified by using the experience of process participants, correlation analysis and customers feedback.
Other Six Sigma tools were deployed as well, for example Pareto analysis was used to analyse reasons for leaving the company.
Improve
Development and implementation of improvement solutions followed identification of vital input parameters that affect selected process measures of performance (MOPs). onitoring of improvement actions was realized through implemented HR database. Vital process inputs and process results were monitored and correlation verified.
The focus has gradually shifted from monitoring MOPs to measuring and controlling inputs that control MOPs and reporting MOPs trends.
Control
The key control objective is to sustain and get a continuous improvement process embedded into HR processes.
A quarterly HR review report was developed and issued and presented by HR. It contained process analysis results (control charts, histograms, trends and other monitoring charts), conclusions, observations and improvement actions to be completed by the next review and a Six Sigma score chart (Sigma Benchmark of all HR processes, Zb).
Achieved benefits
The cost of HR function per employee has been reduced by 34% in 18 months, with the same or better service provided, and an overhead cost reduction of pound250000 has been achieved. Businesses have achieved budgeted turnover with 15% fewer people and, for the first time, annual employee bonus.
Overall outcomes of improvement activities are better, faster and more cost-effective HR services to the business. HR systems now transform problems into preventive actions that minimize the likelihood of reoccurrence.
HR employees started enjoying greater customer satisfaction and loyalty (chocolate gifts were unheard of before in the HR Department). The future of the internal HR Department started to look more secure. It was recognized that HR dared to measure themselves, change and had been proactive. HR employees have originated a number of improvement ideas, for example idea to utilize the Intranet to improve efficiency of structured communication. They moved from being compliant to committed employees.
Reduction in throughput time, defect and rework are among many elements that contribute to sizeable tangible cost savings from improved processes. Intangible costs of poor quality have been recognized, for example development of closer teamwork made internal communication more effective and efficient.
The implementation of the HR processes has supported proactive behaviour and customer focus, and has aligned personal, team and company goals around HR and business strategy. The core values and benefits of continuous learning and the Six Sigma way of thinking have become familiar and credible. Many sceptics recognized that Six Sigma could improve service processes as well.
The benefits of the culture of participative management, teamwork and Six Sigma have been recognized in the wider organization. This proactive approach has changed the perception in the organization of HR, now that HR has created the model, and assumed the role of coach, for the deployment of Six Sigma in the business.
Conclusions
The deployment of Six Sigma in HR processes confirmed what we have already seen in the last 6 years of implementation of Six Sigma in various manufacturing processes: the strengths and simplicity of the methodology, and enormous benefits for all business stakeholders, from suppliers, employees, management . . . to customers and shareholders.
A number of similar issues in the implementation of Six Sigma in HR and manufacturing processes have been identified, for example:
importance of people issues in management of change (e.g. fear of change, fear of being measured, not dissatisfied with present, etc.);
need to involve suppliers and customers;
benefits of clear definition of the process;
effectiveness and simplicity of Six Sigma tools;
importance of effective and efficient CHART[copyright] data collection system;
importance of criteria for MOPs selection.
But, above all, that successful implementation of Six Sigma depends on leadership.
Some differences between the application of Six Sigma in manufacturing and HR processes have been identified as well:
lower initial credibility of Six Sigma in HR;
more difficult definition of process scope and higher impact of perceptual elements;
direct dealing with people can be more frustrating, but more rewarding as well;
high intangible cost of poor quality (e.g. recruitment of false positive);
less tangible measurements require more creative approach;
higher variety in customer requirements.
The simplicity and effectiveness of Six Sigma are, simultaneously, its strongest and weakest points. For example, mismanagement of analysis results can easily create unbridgeable implementation barriers.
Leadership is one of the keys to successful implementation of Six Sigma, a holistic, long-term continuous improvement system, and the quality of leadership will have a profound effect on the level of achieved results.
Excellence is achieved by getting the right people to want to do the right things in the right way.
JSF