Implementing Six Sigma, Executive Strategy, Methodology, experience and results,

2005

Richard P. Schroeder

“

Richard Schroeder:

A proven leader with Six Sigma Strategy expertise to attain profitability.

”

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:: Six Sigma Answers: Richard P. Schroeder


	Headlines and Topics the providers do not like to discuss
1 2 3 4 5 6 7 8 9 10 11 12 13 14	There are so many providers who all claim to be not only capable but instrumental in many of the companies who have successfully implemented Six Sigma. How can they all be responsible? Why do some providers charge so much? Should your organization pay for Six Sigma Training? Should your organization pay for Six Sigma methodology? What is the “true” payback of Six Sigma? Are all providers equal? How to begin Six Sigma? How to determine if your current Six Sigma plan is effective? Is Six Sigma applicable to all types of Business? Can every organization expect success? How to begin to narrow the process of selecting a Six Sigma provider? Is Six Sigma right for your organization? Why is Richard Schroeder providing this information? Who is the best provider?

1	There are so many providers who all claim to be not only capable but instrumental in many of the companies who have successfully implemented Six Sigma. How can they all be responsible?
	Six Sigma has become a small cottage industry. This industry is overpopulated with trainers. It is amazing how all the providers claim to have implemented Six Sigma at Allied Signal, GE, Bombardier, Sony, and etc. The truth is anyone who was a Black Belt for 6-months, scheduled a conference room, or made a presentation takes the liberty to claim responsibility. There are very few providers who are capable of providing the most important element of any Six Sigma undertaking. The most important element of any Six Sigma undertaking is the EXECUTIVE STRATEGY.
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2	Why do some providers charge so much?
	Many of the larger “name brand” providers/trainers of Six Sigma charge a substantial fee for methodology and executive strategy. The Executive Strategy is the most important aspect of any Six Sigma undertaking. Although the strategy is critical, the methodology has basically become a commodity similar to training. The providers who have a proven track record of them personally providing the strategy have a significant advantage over all other providers. This significant advantage is experience and more importantly results. The fact of the matter is there are very few (2-3) providers with this capability and can honestly put this on their resumes.
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3	Should your organization pay for Six Sigma Training?
	You will have to train in Six Sigma for Black Belts. There are hundreds of Black Belt trainers but only 10-20 are probably capable. However, the real training cost is the training of Master Black Belts. The better and faster you train them the dependence on outside help is minimal.
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4	Should your organization pay for Six Sigma methodology?
	Please Refer To “Why Is Six Sigma Training So Expensive?” There are many bells and whistles for Six Sigma reporting. Six Sigma reporting is not the most important aspect of a Six Sigma implementation. In fact, it is not necessary to have complicated ways of tracking Six Sigma results. The only aspect of Six Sigma that is truly important is the Executive Strategy linking Six Sigma to productivity and profitability through the financials. The best vehicle for this methodology is experience and there are very few providers who can demonstrate development and successful implementation of this Executive Strategy. If any provider can fully demonstrate through past results or personal experience the profitability and productivity improvements they personally have achieved, their fee is worth every penny.

5	What is the “true” payback of Six Sigma?
	Six Sigma payback must be measured monthly and quarterly. Once Six Sigma starts there has to be a dramatic improvement in the bottom line in the first three months. Targets of cost, productivity, capacity, and profitability of 20% improvement is not unreasonable. This is where the cost of training must be significantly less than the results. The finance organization is the only scorekeeper in the company. Any organization who does not see 20% improvement in their financials are not getting their payback for training.
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6	Are all providers equal?
	A Six Sigma provider should supply documented evidence of their past experience in providing the Executive Strategy. As discussed previously in this website many providers are claiming to have implemented Six Sigma for the same specific companies. These same providers would probably have a difficult time proving that they personally had anything to do with the companies they are claiming to have helped with Six Sigma. Any good teacher can teach Six Sigma theory but the payback lies in the actual ability to apply it specifically to your organization. To provide the knowledge and experience necessary for your company to achieve financial success a Six Sigma provider must have the expertise of having actually achieved past success with Six Sigma. There are very few providers who have this capability.
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7	How to begin Six Sigma?
	To begin Six Sigma, you must have majority agreement of all senior management. This is often difficult to get since there can be many nay-Sayers in the group. The executives who are not for Six Sigma usually fall into two camps: 1) Executives who know that the organization is not stable enough for such a large undertaking and although believe in the value of Six Sigma, they know the organization will not realize the results necessary until other structural issues are addressed. 2) The second camp is made up of executives/managers who mastered the “Hero Role”. These individuals are the most dangerous in any Six Sigma undertaking for they know Six Sigma will undermine their true capability of magically making the numbers each month. Before a Six Sigma initiative is even attempted just about all senior management has to be on board or it will fail.
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8	How to determine if your current Six Sigma plan is effective?
	An outside audit by a seasoned executive is very beneficial. If you cannot see dramatic improvement in profit, cost, or capacity get an audit immediately.

9	Is Six Sigma applicable to all types of Business?
	Theoretically Six Sigma applies to all types of businesses. However, it is much harder to find case studies of true results anywhere but in manufacturing companies. Six Sigma experts have a hard time addressing organizations in the service, IT, software and medical industries. Improvements in these types of organizations tend to be more anecdotal with little hard evidence. Implementing Six Sigma in non-manufacturing industries requires even more Executive Strategy details but less rigorous training.

10	Can every organization expect success?
	Six Sigma Does Not Promise Every Organization Success. If there is not a good strategy, buy in, or the chosen provider is not experienced or capable as mentioned in the previous section there is an 80% chance of failure or false start. This will doom any Six Sigma implementation for at least five years before it can be executed correctly.
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11	How to begin to narrow the process of selecting a Six Sigma provider?
	Unfortunately, today, to find a provider of Six Sigma you have do more research than ever before because of what I have explained in the previous sections. The fastest and best approach is to ask a disinterested, experienced expert so as to eliminate many of the charlatans claiming to be experts.

12	Is Six Sigma right for your organization?
	Read all items discussed on this website to make that determination or ask an expert who is disinterested and experienced.

13	Why is Richard Schroeder providing this information?
	I am providing this for several reasons. I am personally sickened by the phonies who have claimed responsibility for success at Allied Signal, GE, and etc. I am also amazed at how non-profit organizations and universities who have zero experience or credentials are now claiming to be Six Sigma Experts. Six Sigma is a very powerful tool for productivity and profitability however the current providers have limited to no experience in providing the Executive Business Strategy. I have implemented the Executive Business Strategy for ABB, Allied Signal, outside consultant expert to Jack Welch at GE, Sony, Toshiba, Bombardier, and all other major corporations. I am no longer a part of Six Sigma Academy but I cannot stand back and watch this powerful tool become so watered down that it becomes ineffective.

14	You should choose a provider that can pass the acid test of experience and proven documented results I discussed or you can call me for my opinion.

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