Xavier

Lean Six Sigma is an invitation to solve meaningful business problems by developing new approaches and working processes. It combines the power of a structured, fact-based approach with the inclusion of those who are closest to the problems encountered day to day. Acting as sponsors for Lean Six Sigma projects, managers learn to invite the participation and ideas from all levels of the business. The role of the Lean Six Sigma manager is to facilitate the process of creative problem solving, not to provide the answer. His or her most important contribution is to create an environment in which it is safe to challenge the status quo, bring forth new ideas and develop them through experimentation. If a company opens the flood gates for new ideas from employees via a suggestion system, the issue will not be getting new ideas. The issue will be responding to them. Lean Six Sigma develops the organization’s ability to not just identify, but develop and implement new ideas. Without that, the ideas will land back on the desk of overworked middle managers who are busy keeping the shop running as best they can. The quadruple win Lean Six Sigma offers is: 1) A way for managers to facilitate the process of creative problem solving that brings heretofore disconnected parts of the organization together. 2) Visualization of the current reality and a compelling, innovative picture of the future around which people can rally. 3) Setting stretch goals that pull functions together and challenges the status quo. 4) Prioritization of resources and development of talent to more effectively execute cross-functional, cross-country projects. If an organization wants its people to be more creative and productive, give them the tools and resources to simplify their day-to-day working practices. If a company needs improvements in productivity, challenge employees to pool, develop and implement the ideas that are there waiting to be harvested. Above all, a business should create an environment in which people are encouraged and comfortable to experiment and take risks. That is what leads to breakthroughs, the engine for continuous innovation.

Explain the meaning of Kaizen, Kaikaku and Kakushin. How are they different from each other? Kaizen – means small change or continuous improvement. It is an approach to solve problems in workplace and forms the basis of incremental continuous improvement in organization. It is based on all employees involvement. Kaikaku – means radical change. It is often initiated by management which plans to bring in new process or new technologies in its operations or new strategies in its business. For example, entirely computerizing the transactions in a bank is a kaikaku. This requires capital investment and training of employees to make them adapt the new technology. Kakushin – means innovation. Innovation is the wave that brings a complete change in the industry and sets you not only apart from the competition but also the leader in the industry. Kakushin which also means continuous innovation makes an organization to innovate and create new things continuously. How do they complement each other? What would you lose if one of these was absent? Kaizen reduces the operations cost in a company and thereby improves the bottom line. The company that drives kaizen among its employees benefits by reducing its cost of operations and thereby making more profits that its competitors. Kaikaku reduces the operations cost and improves quality. The primary difference is that Kaikaku means a massive change and hence it requires initial investment. In the long run, the company reaps benefits in multi-fold times. This requires a management with long term vision of its way of operating and future needs. Kakushin makes you stay ahead of others as explained before. It requires a huge investment in time and money and also patience. Not all the innovations succeed in the market and hence we cannot bet on Return on Investment. But this is very essential to keep yourself updated and stay ahead in the industry or otherwise you may lose the entire business in the future. Hence it can be understood that Kakushin helps in moving up your top line.

In my opinion, measurement is very important in management and hence what Peter Drucker said is something undeniable. At the same time, one cannot measure what is going to happen in future. This means we need to consider things that are not measurable or existing at present but could exist in future. As how Newtonian Physics was replaced by Quantum Physics, changes always come and one as a person and also an organization needs to be capable and equipped to face the challenges in future. Dr. Edward Deming meant that the future state that we want, could be sometimes beyond our imagination and prediction. Hence the numbers are unknown and unknowable.

The 4 terms more or less falls under a hierarchy as Business Excellence being the topmost, then Operational Excellence, Process Excellence and finally Personal Excellence. Personal Excellence forms the basic building block of this entire hierarchy. By equipping oneself with tools and methodologies such as lean, six sigma and other analytical approaches, a person moves toward excellence by taking conscious and data-driven decisions in challenging business situations. While process excellence aims to improve the individual processes, operational excellence at a broader level encompasses all the processes and drives the organization towards its goals with required systems and processes in place. It also demands the employees understand the organizational goals and work towards them. Business Excellence, the highest of all four, includes the involvement and interfacing with other stakeholders and outside environment. It brings in the agility and efficiency in responding to the external challenges.