The benefits of the lean methodology have been well recognized and documented since the program’s origins in the Japanese manufacturing environment and its long-term relationship with six sigma philosophy. In addition, lean and six sigma have been a buzzterms in our industry for quite some time. However, 60% of all corporate six sigma initiatives fail to yield the desired results (Wall Street Journal, January 2010), possibly due to this value-add methodology being used tactically rather than as part of the corporate strategy.

In an era of limited resources, it would be more effective to focus specifically on activities that ensure maximum ROI for lean and six sigma. To accomplish this, an organization may need to “lean out” its lean and six sigma program and portfolio, taking a holistic review of process and people, with a clear and identifiable link to the organization’s strategic agenda.

In terms of the people component, Green Belt and sometimes Black Belt Certification trainings are commonly provided as a reward for star employees but without an assessment of their strengths and the needs of the particular project. In other words, if an excellent research scientist is being considered for undertaking a DMAIC process, do their traits and strengths actually match the core competencies and demands required for taking on the particular project? Undertaking such a formal talent assessment is important for an efficient project and tangible success.

From a process perspective, it is important that an organization challenges itself to clearly understand what it intends to gain from undertaking a formal lean and six sigma project and the associated responsibility and timeframe. Correlating each project to a clear item on the organization’s five-year strategic plan ensures that internal and external influences are factored into the sustainable success equation. Projects that do not meet these criteria need to be re-evaluated for fit and benefit or eliminated. Undertaking this exercise ensures that the talents secured for enhancing the organization are applied in the areas of need and do not take a silo perspective. This will increase traction and talent engagement for future lean initiatives.

The next step is to establish tangible benefits that can be monitored, achieved, and sustained. Once all key stakeholders commit to this and the project begins, routine management reporting and review is required to drive accountability. Commitment is key here because the project must be treated as core to business success and not a “nice-to-have.” Demonstrating how the project links to the strategic plan supports this important concept.

Finally, an organization should carefully establish success metrics to ensure realized benefits are not false positives. Regarding my latte consumption, I came to the difficult realization that having reduced the number of mochas while increasing their size really does not really result in any benefits. Likewise, as we monitor lean initiatives in our own groups, it is important to establish success metrics that utilize a 360 approach to ensure that efficiencies gained are not at the expense of a different part of the organization.

In summary, lean can serve as a valuable tool for our industry. However, it should be incorporated as a holistic corporate mindset with an identifiable link to the organization’s strategic direction to ensure maximum value and sustainable efficiencies.

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