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Six Sigma seeks
alignment through strategic planning with SWOT analysis, vision
statement, mission statements, and business plans for
the organization.
Business plans develop from
strategic planning, SWOT analysis and includes mission statements and
vision statement.
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Our graphic model adds SWOT analysis, strategic planning, vision statement, mission statements and business plans.
Trusting your organization to grow and develop in a haphazard fashion is taking a large chance on the future. Better to have at least some general ideas of where you want to take it and what is a desirable direction considering current conditions (SWOT analysis). This is the fundamental reason for doing strategic planning. Guidance documents include the vision statement and mission statements. Details of how to live the mission statement and reach the vision are captured in the specific business plans. Everything in the world is created at least twice. Once in the mind of the creator and then as the actual product or service. There may be accommodations or changes over time but at some point someone somewhere had an idea of what would be developed. This vision of what the future should hold is essential for any organization to control its destiny. Without a vision that brings focus and direction an organization is likely to drift and wander depending upon the tides and currents of events. For most that is not an acceptable alternative and we prefer to have more control over our organization. A vision statement is that clear future state or position that offers the ideal of what we want our organization to become. For most it is something that can never quite be achieved but is still worthy to strive in that direction. For many Six Sigma is part of that vision. Achieving a performance level that has less than 3.4 ppm defect or error rate may seen like the Impossible Dream for some, yet for other's it has been achieved. Maybe not for every product or service but for at least some and they are on an improvement path for even more. One of the biggest hurdles to overcome is the realization that no matter how good your organization is now it could be better. Every defect or deviation from the ideal represents additional costs and waste. To have a compelling dissatisfaction with those departures from ideal and deciding to do something about it is required for Six Sigma implementation. Once that decision is made the tools, techniques and approaches have been demonstrated by others and hence can be learned within your organization. Supporting any vision statement is a set of values for an organization. These may or may not be written down, none the less they exist and most employees have a firm understanding of what they are. When the written and the actual values differ you can be sure that the employees know where there are differences. The value system will have fundamental influence on how customers and employees are treated and how employees react to management direction and initiatives. For Six Sigma to succeed there must be a culture of improvement. If this is not in place creating it is a major implementation step. A mission statement is the purpose of the organization. It states who we are, whom we serve what products and services we provide and how we make those products and services available to our customers, clients, or patients. The mission statement tells what the organization was formed to do. Some like to include levels or performance in the mission statement. I contend that just adds complexity. State what you are about and let the performance speak to the level or quality. With values, vision and mission understood a strategy should be developed. To attempt to develop a strategy before values, vision and mission are clear, understood, and accepted is a mistake. Quite simply strategy is the observable actions in the marketplace that lead to a competitive advantage. Keys are observable actions, marketplace and competitive advantage. If any one of these is missing there may be some nice sounding words, pretty pictures and flowery talk but there is no strategy. Common work in developing a strategy is a number of assessments both internal and external to the organization. From every assessment strengths, weakness, opportunities and threats (SWOT analysis) are evaluated. Once a clear understanding is in place specific business plans are developed. This should be done at the Business Level. For large organizations with many business units, subsidiaries or divisions each may be allowed to develop their own business plan. Without some oversight this can result in divisions of the same company hurting each other. For instance having Pontiac and Oldsmobile competing in a mutually destructive fashion. Once a Strategic Direction is set there are some general objectives that should be accomplished. From those objectives, goals are developed meeting the SMART criteria. (Specific, Measurable, Action Oriented, Realistic, Time bound). Each goal should have action plan(s) to assure they are achieved. Frequently some of the goals from one level become objectives for the next level down in the organization. When this happens it assures that goal oriented action plans anywhere in the organization can be traced up the organization to demonstrate they are in support of the top level objectives and strategy. When there are gaps in that linkage it is common to have misunderstandings and efforts that are not aligned and hence not as efficient nor as effective as they could. Effective team building starts at the executive level, includes management training at all levels including front line supervisors and has a leadership skills development training plan for every employee. Six Sigma can be an integral part of strategic planning or a business plan.. For a strategy involving cost leadership, Six Sigma can be focused to improve internal processes, yields, productivity, eliminate complexity, reduce cycle time and in general help gain or maintain low cost supplier position for your particular product or service. If your strategy includes being the lowest price in the market your costs had better be the lowest. Six Sigma also should be an integral part of any customer loyalty strategy. One of the keys to customer loyalty is providing the customer with products and services that meet or exceed their expectation every time. Every transaction and interaction between a customer, or potential customer, is an opportunity to meet or fail to meet that specific customers expectations. Few systems are good enough to offer the desired level of product or service on a consistent basis to keep loyal customers without some constant attention and work. The tremendous benefits from having loyal customers can not be overstated. Jack Welch has been quoted as saying that only when GE's Six Sigma efforts started focusing on the external customers did they begin to really see the benefits. Quotes " If one advances confidently in the direction of his dreams, and endeavors to live the life which he has imagined, he will meet with a success unexpected in common hours. " Henry David Thoreau No pessimist ever discovered the secrets of stars, or sailed to an uncharted land, or opened a new heaven to the human spirit. Helen Keller Cycle Time
Adams Associates 10A Bayou RD Lake Jackson, TX 77566 1-979-297-5198
Previous Newsletters Customer Loyalty and Customer Satisfaction. Distribution, Products, Services, Work Flow. Employee Development Empowerment Motivation.
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