The Six Sigma Coach

Some Wisdom

2006-04-17T17:35:00.000-05:00

Some tribal wisdom of the Dakota Indians (so legend has it), for Six Sigma practitioners passed on from generation to generation, says that, "When you discover that you are riding a dead horse, the best strategy is to dismount."

However, in government, education and the corporate world, more advanced strategies are often employed, such as:
1. Buying a stronger whip.
2. Changing riders.
3. Giving horse and rider a good bollocking.
4. Re-structuring the dead horse's reward scale to contain a performance-related element.
5. Suspending the horse's access to the executive grassy meadow until performance targets are met.
6. Making the horse work late shifts and weekends.
7. Scrutising and clawing back a percentage of the horse's past 12 months expenses payments.
8. Appointing a committee to study the horse.
9. Arranging to visit other countries to see how other cultures ride horses.
10. Convening a dead horse productivity improvement workshop.
11. Lowering the standards so that dead horses can be included.
12. Reclassifying the dead horse as living-impaired.
13. Hiring outside contractors to ride the dead horse.
14. Outsourcing the management of the dead horse.
15. Harnessing several dead horses together to increase speed.
16. Providing additional funding and/or training to increase dead horse's performance.
17. Doing a productivity study to see if lighter riders would improve the dead horse's performance.
18. Declaring that as the dead horse does not have to be fed, it is less costly, carries lower overhead and therefore contributes substantially more to the bottom line of the economy than do some other horses.
19. Rewriting the expected performance requirements for all horses. And the highly effective...
20. Promoting the dead horse to a supervisory position.

Most importantly, however, never launch a Six Sigma project to improve the horse's performance.

This blog is a service of the Six Sigma Coach, LLC. We provide coach skills training for experienced six sigma practitioners, and along the way attempt to have a bit of fun, too.

Why Coach?

2006-03-31T15:24:00.000-06:00

What is the advantage for an organization to initiate and support coaching within their six sigma effort? Or stated another way: Why should an organization spend resources to develop coaches and a coaching initiative? What is the payoff to the company? Show me the money!!!

Good question. Here is a list of tasks a coach performs and the value they add within a six sigma initiative.

Maximize Value Of Training Dollars: Supports green and black belts through training helping them get off to a fast start and ensuring the belts’ success in their first projects.

Increase Effectiveness Of Experienced Belts: Coach experienced belts to minimize project timelines, avoid pitfalls, overcome barriers, and encourage stakeholder buy-in. “More, better, faster.”

Enhance Team Effectiveness: Support teams through initial formation to come up to speed quickly, help dysfunctional teams correct behaviors and overcome difficulties. Assess and advise well-functioning teams to avoid typical pitfalls such as group-think.

Reduce Certification Glitches: Support green and black belts through the certification process (both project completion and examination preparation). Advise and serve on six sigma steering committees and certification panels.

Avoid Costly Application Errors: Serve as subject matter and knowledge expert for correct selection and application of six sigma tools and methodology.

Avoid Costly Project Problems: Foresee and avoid breakdowns with people, team, cultural, or change management issues.

Speed Change Management Adaptation: Support and encourage involvement and embracement of process improvements and cultural change. Avoid backsliding and entropy.

Maximize Value Of Projects To Strategic Objectives: Advise senior leadership to select, focus and maximize value of six sigma projects to support organizational objectives.

Model Six Sigma Leadership: Take leadership role to liaison with stakeholders, process owners and customers, to focus project selection, change management, and process improvements to organizational strategic objectives.

Develop And Facilitate A COPs – Community Of Practitioners: Develop a cohort of belts within the organization to bring a comprehensive approach to the conduct of projects and overall management of the six sigma initiative and to formulate and promote a common voice for six sigma across the organization.

Note:
In a 1999 survey conducted by the Work Foundation, a UK evidence-based research and management consultancy, of 339 human resource and personal specialists, the research determined that 69% of the respondents reported higher organizational performance and productivity as an outcome from their formal coaching initiative.

Currently The Six Sigma Coach is engaged in a research initiative to demonstrate the value (both financial and performance) resulting from a coaching initiative. Participants in our workshops are invited and encouraged to participate in this research. For more information, contact us. Email to info@thesixsigmacoach.com

This blog is a service of The Six Sigma Coach. We train experienced six sigma practitioners to enhance their coaching skills. Visit our webpage at http://www.TheSixSigmaCoach.com

Two Favorite Quotes

2006-03-20T15:29:00.000-06:00

“If you want to truly understand something, try to change it.”
~Kurt Lewin

“If you want to make enemies, try to change something.”
~Woodrow Wilson

These two favorite quotes speak to the two tracks a six sigma coach must run on simultaneously. The first addresses the need to master and apply the tools and techniques in the six sigma body of knowledge. The second recognizes that all change happens within an organizational context which in turn involves people.

The DAMIC model and tools help us try to truly understand a process. As coaches we help players bring a rational understanding to the process mechanisms, structure and organization. That is, we help figure out what is really happening, how and why it is happening.

The basic notion is that if we clearly understand something, then we can improve the process. The fallacy, however, is that as we and until we start to change the process we do not truly understand the complexity of it. One reason the Control step is so important is that it provides an opportunity to fix all of the glitches we originally failed to understand that effect the outcomes.

The second quote helps us remember that the frequently not sufficiently accounted for component is the people issues. Invariably there are territorial issues, individual sense making, expectations, comfort zones, and of course fear of the unknown and how it will play out an effect the individual. All that “touchy feely stuff.”

The two favorite quotes, on the surface, may appear fairly pessimistic in tone. And, of course, those of us working within a six sigma initiative are usually inherently optimistic. We do expect that we can change things for the better. So rather than being pessimistic, perhaps the quotes might be better seen as a reality check.

An interesting site with quotes about “change” can be found at http://quotegarden.com/change.html

This blog is a service of the Six Sigma Coach, LLC. We provide training to experienced six sigma practitioners to enhance their coaching skills. Visit our webpage at http://www.TheSixSigmaCoach.com or contact us at info@thesixsigmacoach.com

Assert verses Assess

2006-03-14T20:40:00.000-06:00

There is a fundamental and important distinction between making an assertion and making an assessment. For six sigma coaches, the distinction is important as part of their routine practice. It is fundamental to the difference between a directive verses a non-directive approach to coaching.

An assertion is a statement of fact by the coach. Hopefully, it is based on objective evidence. However, the “fact” and its connection to reality may be questionable. The assertion is stated as if it was true. It is a judgment made by the coach.

An assessment is an interpretation of reality offered by the coach to the player. It is based on observed behaviors, outcomes, or something tangible regardless of how subtle. For example, a coach may notice a stakeholder briefly frown during a belt’s presentation and taken with other observations make an assessment that the stakeholder is not comfortable with some aspect of the project or that the belt is not framing the message so the stakeholder can hear and appreciate the message.

When the coach offers an assessment, the player remains responsible for considering the assessment, evaluating its importance, and determining if and how to take action to meet the issue.

When a coach states an assertion, the coach is telling the player what the issue is and unfortunately that message often carries a hidden negative message of blame on the player

Coaches need to help players understand the difference between an assertion and an assessment early on in the coaching engagement. And coaches must explicitly ask permission from the player to offer an assessment every time the coach offers an assessment.

One form a coach might use when offer an assessment to the player is to say: “May I offer you an assessment?” When the player agrees, the coach then repeats a litany similar to: “This is an assessment. It is only an assessment. It may or may not be true. That is up to you to determine.” Then the coach might say: “I observed this behavior and that effect and I interpret those events to indicate…”

Then the coach and the player can approach a discussion of the events and reactions and perceived effects from a non-emotional stance and somewhat detached stance so the player is then in a position to take on board the message and move forward to use the assessment.

Learning to offer assessments rather than to state assertions is a basic way to frame a message so the player can clearly hear the message and take action on it. And it often is one of the most difficult techniques to master because too frequently we are all use to stating assertions as facts.

This blog is a service of The Six Sigma Coach, LLC. We provide coach training to experienced six sigma practitioners. For more information about our workshops, visit our webpage at http://www.TheSixSigmaCoach.com or contact us at russ@thesixsigmacoach.com

Scope and Size

2006-03-08T20:09:00.000-06:00

Coaches and their players constantly guard against “scope creep,” that insidious tendency to include more into a project than is do-able. Unhappily, we frequently go for the “low-hanging fruit” or the “big score.” That is, we congratulate projects and teams that move quickly to success and/or have a significant financial impact.

There are a couple of traps here. First, easy wins from low hanging fruit are usually carbs rather than protein. That is, you cannot make a diet out of just fruit. Said another way, management should rightly wonder why an expensive six sigma initiative is needed if management were really doing their job to eliminate simple problems.

As for the big score, when mobilizing a six sigma initiative some managers may want to establish a requirement that projects need to anticipate a net $250,000 benefit improvement before they are approved to be undertaken. The thinking is that will help focus on those areas that will garner the larger savings and impress the bean counters who track and challenge the investment in six sigma. The way to achieve that savings, however, essentially requires large, elaborate and/or complicated projects.

A more measured approach is to focus on projects that will score between $75K and $125K. The rationale is these projects are completed much more quickly, people can really focus on a smaller scope, and they clearly understand the pieces and eliminate the complexity of larger projects. And, most importantly, the changes people must adapt to as the result of smaller projects are much easier to accept.

Essentially, it is possible to complete three or four smaller projects in less time, with fewer glitches, less change management turmoil and to achieve greater financial gains. Also, if one small project fails to deliver that is not as significant a problem as if a large project with large investments of time and resources does not deliver expected results.

Question: “How do you eat an elephant?” Answer: “One bite at a time.”

Recently a local television channel ran the 1954 movie with John Wayne “The High and the Mighty.” The plot is that a flight from Honolulu to Los Angeles looses an engine along with significant fuel at the point of no return. In order to lighten their load, Wayne starts throwing anything not nailed down out the rear door. The metaphor is a good one for six sigma coaches and their players. The prime goal of any project is to complete the project and live to fly (do another project) another day. Or, as they say, the best things come in small packages.

This blog is a service of The Six Sigma Coach, LLC. We provide coaching training to experienced six sigma practitioners. Visit our website at http://www.TheSixSigmaCoach.com or for more information email us at russ@thesixsigmacoach.com

Value Add 6 Sigma Coach

2006-02-27T08:31:00.000-06:00

So why does a black or green belt need a Six Sigma coach? After all, belts are smart people, they have attended training, demonstrated knowledge and use of the tools and techniques, and they know their organization. Supposedly they were selected into their six sigma role because management believes they are capable. So why would a smart, capable person need a coach?

Good question.

The answer lies in where the coach can actually focus the intervention to add value to players’ efforts and help them achieve their objectives. If a coach focuses on the six sigma methodology, tools and techniques, that coach will soon be marginalized. Smart and capable belts usually don’t need much help in this area. Yes, perhaps a belt might occasionally need some support or verification of correct application of a tool. But a coach who offers only this service will not be called upon often.

Breakdowns in a six sigma project are usually not a function of tool failure. Invariably breakdowns are people, team, cultural, or change management issues. Tools are only tools. Real value is added when people within the organization embrace and implement the process improvements in order to meet strategic objectives. And people, not tools and techniques, accomplish strategic objectives.

The coach is in a unique position to be able to move around within and at various hierarchy levels in the organization to gather information, exert influence, and campaign for support. The Six Sigma coach adds value by helping the belt build support within the team and among the organization management, champions and stakeholders. The coach helps the belt focus on those issues, solutions, alternatives that connect to the strategic objectives. The coach helps the belt think through the current situation, the obstacles facing the project, brainstorm possible alternative solutions, and develop tactics to move forward.

The coach adds value by helping the belt address the people issues.

This blog is a service of The Six Sigma Coach, LLC. We provide coach training to experienced Six Sigma practitioners. Visit our web page at http://www.thesixsigmacoach.com and comments via email to info@thesixsigmacoach.com

Corporation Man

2006-02-25T10:48:00.000-06:00

In his 1971 classic, Corporation Man, Antony Jay likens the modern day corporation to a primitive tribe. The tribe survives using the best skills of its individual members in a concerted effort to hunt game. The member with the best eyesight searches, the best runners herd game, the strongest arms weald spears and clubs. The adroit prepare weapons and nets. Working together and applying their individual skills, the hunters were able to bring down the giant mastodon.

Coaches can add real value to their players by helping them choose team members with the capabilities, interest, insight and motivation to work within a Six Sigma project team. It is critical to select the right people, not just the folks who happen to be available, to work on the team.

There is no magic selection formula. Membership is dictated by the needs of the project. However, some candidates to consider include a process owner, someone from finance (at least in an advisory role if not a full-time participant) a customer, individuals with insight and leverage to implement solutions, and perhaps a newbie green-belt who will gain experience working with a seasoned belt. Particular skills to look for include knowledge of the process, experience with the Six Sigma methodology, and facility with specific tools such as data analysis or survey design.

Secondly, a coach should help the team leader think through issues about team dynamics. In addition to the skills and knowledge each person brings, there is also the personality and world-view of each team member. A group of optimistic, forward-thinking generalists can always use a cautious member to help see specific details and the bumps on the road to success. Players should also consider a member to complement their own particular skills. For example, I always try to have someone on my teams who is super organized and adept in project management details and can support my less then stellar administrative abilities.

And finally and perhaps most importantly, the coach can work with players and with team members’ management to ensure the team member’s workload provides sufficient time and resources for both team meeting and assignments.

It is reasonable to suppose the primitive hunters didn’t always catch their prey. But a solid team composed of people with the necessary skills and capabilities, diverse approach, and time and resources, provides a solid foundation and enhances the likelihood of project success.

This blog is a service of The Six Sigma Coach, LLC. We provide training in coaching skills to seasoned Six Sigma practitioners. For more information visit us at http://www.thesixsigmacoach.com

Comments, questions, suggestions are always welcome. E-mail us at info@thesixsigmacoach.com

GROW – DMAIC

2006-02-22T21:44:00.000-06:00

The GROW model, like the six sigma DMAIC model, is a simple tool coaches use to conduct coaching sessions. Like DMAIC it is a guide to thinking, a way to stay on track through the discussion, and a way to ensure the session outcomes are value-add to the player. And, there is an obvious overlay between the two models.

The “G” is “Goal.” What are the goal(s) of the individual session and what are the goals of the coaching engagement. After the initial greetings and small talk the coach asks the player to open the discussion with a review of the current status of the project and update on most recent activities, including completion of promised tasks from the previous coaching session. If the overall goal for the project is not evident, a coach might ask for a brief summary.

Then the coach would ask the player to move on to the desired outcome(s) for the current coaching session. These should be as specific as possible. The player might say: “I want to discuss difficulties I am having with a stakeholder.” A more useful goal statement is: “I want to try to determine causes of difficulties I am having with a particular stakeholder and then develop two or three alternatives to overcome the resistance.” The coach should help the player focus the goal statement to a useful outcome that the player can act upon. Goal is a direct corollary to the Define step.

The “R” is Realities. Here the coach and player discuss what is actually happening, who said what, where people are in their thinking, what the playing field actually looks like. It is in fact a reality check of the current situation and a direct corollary of the Measure step.

The “O” is Opportunities. Here the coach begins to help the player ask the right questions. As a sounding board and spur to thinking, the coach challenges assumptions, digs deeper into the realities assessment, and helps the player begin to generate some focus that would lead to possible next steps. This is the Analyze step and asks the player to narrow down the opportunities and to agree on next steps as they move into the Improve step.

Finally, and most importantly, like Control, the “W” is the Will to move forward. This involves establishing agreements for specific outcomes, who will do what, timelines and milestones, all the details six sigma practitioners clearly know is necessary if they are going to bring their six sigma projects to a successful conclusion.

A couple of additional thoughts about the GROW model. First, it is only a model and a guide to thinking. It is not a rigorous technique to follow exactly. In fact it is not a linear discussion. So the coach and player frequently will move back and forth between the four steps just as six sigma practitioners sometimes move back and forth between DMAIC steps as the project develops.

Second, there is no ideal time limit to spend on each step except that the coach will need to slow down to ensure the “G” step is given adequate attention. Just as Define is about 30+% of any six sigma project, taking time to gain clarity about “G” will insure focus and successful outcomes for the coaching session and coaching engagement.

As a final two steps, I always ask save a few minutes at the end of the session to test for player satisfaction with the session. The questions I ask are: “Are we complete?” “Did we accomplish what you wanted from this session?” “Are you comfortable to move forward?”

And finally, after every coaching session I always take a few minutes to journal a self-assessment of my own performance as a coach for that particular session. Journaling as a self-assessment device to improve one’s own performance as a coach is a topic for another blog post.

For more information about the GROW model, John Whitmore’s book, Coaching for Performance, 3rd Edition is a place to being.

This blog is a service of The Six Sigma Coach, LLC. We provide coach training to experienced six sigma practitioners. Visit our website at http://www.TheSixSigmaCoach.com or email us at russ@thesixsigmacoach.com

Baldrige & 6 Sigma

2006-02-18T10:03:00.000-06:00

Should an organization choose between the Malcolm Baldrige National Quality Award or a Six Sigma initiative? If we were to create a matrix of the Baldrige values, core concepts, and criteria against the six sigma tools and techniques, there would definitely be many overlapping and mutually supporting ideas and concepts. So, it really should not be a question of choice between either/or. The two models are certainly not separate in their purpose, and I would argue they are mutually supportive of each other. Whereas one focuses on “what,” the other focuses on “how.” Baldrige provides a business excellence model: Where does an organization need to focus to excel? Six Sigma provides tools and techniques to support a business excellence strategy. If Baldrige drives the strategy, then Six Sigma drives the tactics to achieve the objectives.

Coaches need to be deeply involved in their organizations’ strategy in order to help drive their six sigma initiative to support corporate objectives. That may play out on a practical level in helping belts and steering committees select projects, or helping choose improvement solutions that more directly support the strategy. Coaches should participate in organizational strategy meetings either as an invited member, or as an observer. Another idea is for the coach to volunteer to facilitate the strategy meeting.

A great way for coaches to gain perspective from a strategic vantage is to participate in a state level quality award process. Most states and many localities have award programs modeled on the national award. And every program is usually seeking volunteers. More information to locate a program is found at http://www.networkforexcellence.org/

As an examiner for both the State of Kansas award and the national award I can attest that participation is time consuming and hard work. However, the payoff has been a significant shift in my own capability to see opportunities from a broader perspective and focus projects that I have coached to achieve strategic objectives. And the Baldrige values and core concepts have been extraordinarily helpful when framing arguments and soliciting support for change initiatives.

This blog is a service of The Six Sigma Coach, LLC. We provide training and coaching to experienced six sigma practitioners. Visit our website at http://www.TheSixSigmaCoach.com or write to us at info@thesixsigmacoach.com

The Somatic Coach

2006-02-15T11:48:00.000-06:00

What is a somatic coach, or why should coaches be concerned with their somatic self?

There is a Zen saying: “the mind is a chattering monkey.” And Joyce referred to Mr. Duffy “lived a short distance from his body” http://www.online-literature.com/james_joyce/964/

The term “somatic” refers to the body usually the core rather than the limbs. As coaches we connect with our players on both an intellectual and emotional level. But I would suggest that there is a somatic dimension that helps us to connect, also. As coach we do our best work when we listen to the player and are present, really physically focused, on the player. A calm mind and still body send a powerful message of trust and presence to the player. The way to accomplish that is through a daily somatic practice.

So, what is a somatic practice? One could go off to the Himalayas and contemplate for several decades to achieve inner peace and wisdom. Another, probably more practical approach is a daily, brief, 15 minute mediation practice. A new (short, 140 pages) book by Mark Thornton “Meditation in a NY Minute: Super Calm for the Super Busy” is a place to begin. Gandhi famously said: on busy days he needed to find lots of time to mediate.

Other excellent self-awareness practices include Tai Chi, Aikido and breathing exercise. In addition to obvious health benefits, any of these daily practices will help us to still that chattering monkey, become centered and present for our player and to really be able to listen to and support our player.

This Blog is a service of The Six Sigma Coach, LLC. We provide coach training to experienced Six Sigma practitioners. Visit our website at http://www.TheSixSigmaCoach.com or contact us at info@TheSixSigmaCoach.com

Coaching ROI – Four Levels

2005-12-28T11:03:00.000-06:00

In his foundation work on calculating return on investment for training, Kirkpatrick proposed a four level schema. The first asks trainees for immediate feedback if they liked and found the training interesting. The second, did they find it useful? the third, did they use the new learning on the job?, and fourth, did the training objectives support the organization’s strategic objectives?

Coaches could use a similar schema to evaluate their work. Positive results from the first two levels are easy but leave us asking: “So what?” If players are not translating coaching outcomes to their daily work, and if those outcomes are not having a positive effect on strategic objectives, coaches will have a difficult time getting resources to support a coaching initiative within their company.

A formal coaching initiative requires a formal assessment schema to garner bean counter and senior management support. As a matter of routine at the end of each coaching session, a review of the session and an assessment expression of mutual satisfaction should be stated by both coach and player (Level One). And near the beginning of each session the coach should probe for application outcomes from prior sessions (Level Two).

One way to accomplish Level Three assessments is a 360-degree six-month follow-up survey. Survey questions should probe for application of objectives established for the coaching intervention. Level Four assessments require up-front clarity of the relationship between coaching and strategic objectives at the beginning of the coaching relationship and as a foundation for the coaching initiative.

Evaluating Training Programs, Donald L. Kirkpatrick, Barrett-Koehler Publishers, San Francisco. 1994

This blog is a service of The Six Sigma Coach, LLC. We provide coach training to experienced Six Sigma practitioners. Visit our website at http://www.thesixsigmacoach.com and of course, comments and suggestions are always welcome. Email to info@thesixsigmacoach.com

Same Ol' Same Ol'

2005-12-23T11:41:00.000-06:00

Sometimes people ask: “So how is Six Sigma any different from all the other flavors of the month that never worked?”

Actually there are a couple of issues raised in this question. First, that prior “quality efforts” didn’t work, and second, that somehow Six Sigma is a repackaging of old ideas.

First, it is critical to understand that Six Sigma is neither a repackaging of old ideas nor is it a completely new set of tools and techniques. Practitioners are in the business of improving processes and building success. Therefore, it is logical that we should acknowledge the roots of prior ideas and efforts and continue to develop our “quality efforts.”

There are many great ideas and useful strategies from “the old days” that have been updated and incorporated into the Six Sigma methodology. For example, DMAIC has its roots in the Shewart Cycle, Lean Six Sigma has its solid foundation from the Toyota Production System, and cost-of-quality, a critical foundation to any Six Sigma initiative, has a long tradition. The great strength of Six Sigma is its foundation ideas to use data, improve process and reduce costs, focus on the customer, and tie projects to organizational strategic objectives. All of these goals have a foundation in prior “quality efforts.”

As for the charge that prior efforts “never worked” it may be that practitioners have either over-sold or under-delivered the value of their initiatives or they have failed to adequately and successfully communicate the results of their efforts. Each of these is a significant topic unto itself and deserves a full individual post – in the future.

This blog is a service of The Six Sigma Coach, LLC. We provide training to experienced Six Sigma practitioners to enhance their coaching skills. Visit us at http://www.thesixsigmacoach.com/

Questions, comments suggestions are always welcome. Our email address is info@thesixsigmacoach.com

Player verses Client

2005-12-14T13:26:00.000-06:00

In sports it is the player who scores the points. The sports coach works with, develops, and supports the player. The coach’s job is to help players develop their inherent natural ability. Ultimately, on the field, it is up to the player to be successful.

In a helping relationship, such as therapy, or twelve-step recovery program, it is the psychologist or leader who supports the client. There is the basic assumption that somehow the client is broken and the coach has the ability to “fix” the client or to fix the client’s problem.

Six sigma practitioners are smart people selected for their capabilities and their abilities to get things done. The Six Sigma coach’s role is most frequently to help the belt think outside the box, to examine alternatives, to act as a sounding board for ideas, to encourage, and to support players to bring out their inherent natural ability. The Six Sigma coach isn’t trying to fix anybody.

Six sigma coaches are, hopefully, smart people, too. It takes considerable skill and patience – especially when the coach has seen a similar problem or issue before – to ask the kinds of questions that will spur the player to develop a way forward toward a solution that works in the given situation. The great temptation is to offer suggested ideas and by implication guide the player to the coach’s perceived ideal solution. The wise coach remains centered, still and open to the player to allow the player the time to process and arrive at a solution the player can own and implement. The wise coach sees a player not a client.

This blog is a service of The Six Sigma Coach, LLC. We help seasoned six sigma practitioners enhance their coaching skills. Visit us at http://www.thesixsigmacoach.com
Or email us with comments, questions, suggestion to info@thesixsigmacoach.com

CFO is Your Friend

2005-12-13T19:30:00.000-06:00

The CEO can make people do things. The CFO can make people want to do things.

Any Six Sigma Coach who can get his CFO and accounting folks on his side has won half the battle.

There are at least two issues at work here. First, is to get the accounting and financial folks to apply Six Sigma practices to their own internal departmental processes, and second, is to enlist their help to drive process improvements through the organization.

There are a couple of pitfalls. First, some accounting-types are very conservative and resistant to change. This may be the result of long experience with financial auditors or failure to keep abreast of changes in general accounting practice. Fortunately, their number is decreasing.

As manufacturing and increasingly transactional organizations are moving away from a batch and queue environment to lean practices, the financial folks have found many of their data and reports useless or yesterday’s news – for example, taking two weeks to close the quarter’s books is 13 days too late. Another example: a just-in-time plant does not need to value inventory. Many accounting activities are ripe for improvement including invoicing, tracking purchasing, and payroll general ledge activities. As accountants improve their transactional processes they can step-up their view of the business to become a strategic partner providing information and insight to operations to support strategic decision making.

The savvy Six Sigma coach will routinely enlist the CFO troops to participate as process improvement team members at least in an advisory role if not as a full-time team member. Additionally the Coach will work with the CFO to develop a methodology to calculate gains from six sigma projects. Several years after starting their Six Sigma initiative, GE claimed in their corporate annual report that they were realizing an 11 to one ratio from Six Sigma; that is, for every dollar spent they gained $11.00 in savings. You can be sure they have an established, well-defined procedure in place to calculate costs of benefits, and so should your organization.

Where to start? An excellent resource is Cunningham and Fiume, “Real Numbers” Managing Times Press, Durham, NC. The authors are financial types with a solid understanding of Six Sigma. At a minimum, the Coach will understand many of the accounting terms, reports, and applications from the CFO’s perspective. For accountants unfamiliar with Six Sigma it provides a practical application from their knowledge to the Six Sigma methodology. The authors have packed in lots of good, useful information in less than 200 pages.

You are invited to comment on this article, or make a recommendation to other resources.

email to russ@thesixsigmacoach.com and be sure to visit our webpage at http://www.thesixsigmacoach.com

The Six Sigma Coach LLC provides coaching training to experienced Six Sigma practitioners.