Thursday, January 16, 2014

The Winning Process Improvement Project

When it comes to process improvement projects, especially at the six sigma level, senior managers want to know one thing and one thing only: what is the impact of such projects on the bottom line of our organization? And let us be clear, by bottom line we mean: profits, safety, employee morale, productivity, and so on. Gone are the times in which reputable and well managed organizations focused their resources on the financial outcomes only. But how can your project be sponsored by senior leadership, when in most cases, there is a limitation of resources to be used by the organization?

The key to a winning process improvement project may be in the link that it has to the organization's mandate and strategy. Mandate encompasses vision (where the organization wants to be in the future), mission (the organization's purpose, why it exists), and values (the principles behind the organization's day-to-day operations). The organization's strategy showcases the framework that is to be executed in order for the firm to achieve its mandate. Most organizations have written statements on vision, mission, values, and strategy. But if yours does not, just ask. Senior executives want to see process improvement initiatives that are directly related to the organization's mandate and strategy. The link that your project has to the company's mandate and strategy is perhaps more important than the savings or level of productivity it is trying to achieve within the process alone. When selecting a process improvement project, consider the following:

1. What is the organization trying to achieve in the short- and/or long-term? Customer retention? A safer workplace? Higher margins?

2. How well can your project be linked to the organization's mandate (long term)? This may be a qualitative analysis, which is acceptable.

3. Are you able to mathematically link the outcomes of your project to any of the organizations' high level goals (often called strategic objectives)? If not, can you prove that your project will at least support one of the main strategic objectives?

4. Will your project positively affect critical stakeholders such as customers, employees, suppliers and/or the community around the organization?

5. Will the CEO of your organization proudly report the outcomes of your project to stock holders and/or other interested parties?

We often have all the best intentions when setting up a team to work on process improvement, but the key question really is: is this a project in which even positive results will mean nothing but a slight change in a process that is not critical to my organization's mandate and/or strategy? Make the link and your process improvement project will showcase itself in the best possible way.

No comments:

Post a Comment