What Role Should Six Sigma Play in Corporate Strategy free essay sample

These objectives are usually linked to specific business processes which have been prioritised for specific reasons such as value to the business or resources required. Once these objectives have been set, Six sigma shapes the plan or strategy of how these objectives can be achieved, this means the Six sigma programme has to be closely aligned to corporate strategy. Some organisations choose to implement Six sigma as a separate organisation which makes measuring the success of the programme easier. 3M on the other hand has decided to employ the strategy internally, allowing it to create an organisation wide common language. Choosing to implement it in this way means that Six sigma will be ever present within almost all of the organisational functions and activities. Corporate strategy is often seen as a concern only for upper and middle management, however when employed, Six sigma will mean that corporate strategy will be a concern from the bottom up as it creates universal goals throughout the organisation and its departments. We will write a custom essay sample on What Role Should Six Sigma Play in Corporate Strategy? or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This sometimes results in a shift (both intentionally and non-intentionally) in an organisations culture. Upper management will have to take precautions however, so the Six sigma programme does not disrupt 3M’s strategy so much that the company’s vision is blurred which could lead to things such as a decrease in innovation (something that 3M has relied upon since being founded in 1902. ) This could also lead to a weak brand identity. This issue however has been addressed at 3M which will be discussed in more detail later on in the report. Q4. What are the Human Resource Implications for deploying Six sigma? There are many implications on HR when introducing the Six sigma programme. The HR department in 3M is likely to spend a lot of time and effort in ensuring the programme is a success both in roles directly linked to Six sigma and in roles which have the capabilities of supporting the implementation and running of six sigma. Firstly Six sigma within 3M will have an affect on the organisational structure. The programme uses a belt system (with the different levels and responsibilities shown in Appendix 1. )HR will be responsible for selecting the most suitable employee/candidate for some of these roles such as the black belts, which in itself can be not only complex but vital to the success of the Six sigma projects. Black belts must be chosen carefully as they are the driving force behind the projects involved in the programme, they play pivotal roles in the process and can be seminal in the readiness of employees when adopting the changes rooting from Six sigma. HR will also have the job of ensuring all members of staff with roles to play in the Six sigma process are given relevant, adequate and efficient training in order to carry out their tasks effectively. Another important aspect regarding Six sigma is the reward systems accompanying it, which also could be a consideration for HR. Sometimes existing systems in place can be adapted to compliment six sigma but in other cases new systems must be developed for the scheme to work. Deciding on such systems can be one of the most challenging features to decide upon when introducing the programme as a project team can be made up of a variety of different types of employees with varying salaries, responsibilities and knowledge and/or input into Six sigma, so deciding on a fair reward system can easily debated by employees involved. High achieving project teams can create huge savings for an organisation and deciding on how much of this saving, if any, will be used as incentives is also a matter that needs attention. Although primarily the job of the black belt, in some instances, HR may have to intervene when conflict or a breakdown in communication within a project team arises. They may try and resolve such issues by supporting the black belt in conflict management through training or advice, dealing with difficult team members directly, sometimes providing resources for the team. HR have to deal with such issues as quickly and effectively as possible in order to allow the project team to continue working towards their goals with as little disruption as possible. Other situations that will affect HR from the deployment of Six sigma are; †¢ Establishing communication links for new project teams both internally and externally †¢ Updating the organisation on the progress of the Six sigma programme and communicating it in a way which will be embraced and accepted by employees especially when also trying to change the organisation’s culture as a result of Six sigma. Key HR employees may be used as members of a project team which can increase workloads for the rest of the department. Q. 5 How will Six sigma affect innovative culture at 3M and is Six sigma enough? Innovation is the cause of an ongoing debate regarding Six sigma. Many people believe that Six sigma focuses too much on reducing waste and defects leading to a lack of emphasis on creativi ty. By the very nature of it, innovation normally involves variation, failure and wasted time/effort before it can occur. This means that high levels of ingenuity are virtually impossible when the employees responsible for innovation are bound by the strict and uncompromising requirements of Six sigma. CEO of 3M, George Buckley has taken direct action to try and avoid the possibility of this by investing more money into new manufacturing plants and the Research and Design Department. He also removed the Six sigma process from RD. This was to shift its focus back onto its original intention of developing new products which requires risk and the possibility of defects, something that has no place in a Six sigma department. This was a suitable step to take; nevertheless In order to evade Six sigma from crippling innovation at 3M, they must be sure not to let the influence Six sigma will have on the organisation’s culture to convey into RD, as this may distort the objectives of the department. Six sigma is often used by organisations to create a single common language throughout the workforce, forming universal goals for the company. 3M will have to separate RD in such a way that they are treated as a separate entity to other departments but still have proficient communication with relevant departments such as (Marketing, HR etc. Six sigma derives from a manufacturing organisation and has had its greatest successes in the industry; this means that 3M has the opportunity to exploit the programme to its maximum potential in objectives set regarding manufacturing. Whether Six sigma will be enough to achieve the goals set by upper management not regarding manufacturing (e. g. customer service) will de pend on how sufficiently it is implemented within the different functions. Relevant systems and procedures should be used to compliment Six sigma in order for it to accomplish goals set. Selecting the right strategy and systems to enhance the programme can also help HR and management gain acceptance from employees to the changes occurring, which can be one of the most common and difficult obstacle faced by organisations wishing to adopt this approach to business activities. Such initiatives could include: †¢ Fair monetary and/or non-monetary rewards for project teams †¢ Allocated time during work hours to work on individual projects †¢ Salary increases when moving up the Six sigma belt system Appendix 1 Sponsor Senior executive who sponsors the overall Six Sigma Initiative. Leader Senior-level executive who is responsible for implementing Six Sigma within the business. Champion Middle- or senior-level executive who sponsors a specific Six Sigma project, ensuring that resources are available and cross-functional issues are resolved. Black Belt Full-time professional who acts as a team leader on Six Sigma projects. Typically has four to five weeks of classroom training in methods, statistical tools, and (sometimes) team skills. Master Black Belt Highly experienced and successful Black Belt who has managed several projects and is an expert in Six Sigma methods/tools. Responsible for coaching/mentoring/training Black Belts and for helping the Six Sigma leader and Champions keep the initiative on track. Green Belt Part-time professional who participates on a Black Belt project team or leads smaller projects. Typically has two weeks of classroom training in methods and basic statistical tools. Team Member Professional who has general awareness of Six Sigma (through no formal training) and who brings relevant experience or expertise to a particular project.