Wednesday, November 25, 2009

Exploding Six Sigma Myths

Six Sigma doesn't improve the customer experience. It may seem that Six Sigma turns the focus away from the customer because it is driven by data. In so many companies, quality improvement is driven by the latest customer complaint, or some manager's latest issue. This may seem like you are being responsive to the customers, but such an ad hoc and scatter-shot approach is inefficient and ultimately doomed to failure. The question you need to ask is what data is presented to the organization in order to select improvement projects? Without the right data, how can you succeed? Unless the approach is systematic and the solution driven by measurement and analysis, there is little hope for lasting quality improvement.

Six Sigma is oriented toward the solution of problems at their root cause and the prevention of their recurrence, as opposed to attempting to control potential causes of failure on a project-by-project basis. Six Sigma inspired process redesign will change the way a company thinks about how they do their work and deliver their services. So many companies are focused on short-term financial goals. The “show me the money” attitudes of shareholders and the stock market shift focus away from the customer. Six Sigma, on the other hand, is clearly focused on the customer. It accomplishes this because it centers its attention on the end results and long-term cultural change.

Six Sigma is not just about number crunching and finances. All of the numbers are just data used to reach the real goal of Six Sigma: helping increase quality and service for the customer. Companies need to figure out what their customers want and need. One thing any customer of any business in any industry wants is a better experience. Quality and efficiency don't only help the financial bottom line, they help the customer experience.

Companies need to remember that their first and final allegiance should be to the customer. By embracing Six Sigma, a company can achieve greater quality and efficiency in the flow of information and interaction between people, especially interactions with customers. Transforming the process of these flows will yield quality results for the customer experience.

Six Sigma is just another fad. There have been so many quality improvement fads over the years. It is not surprising that people are now a little jaded. The weakness of many of these fads is that they have the superficial appearance that something profound is happening, yet the substance is not there. A whole bunch of numbers and graphs on spreadsheets are not enough to bring about substantial and lasting quality improvement in an organization. The fads sell themselves as cheap and easy quick fixes. The reality is that there are no quick fixes to significant process improvement. Six Sigma understands that.

Six Sigma is neither a fad nor a quick fix. The data and descriptive statistics that Six Sigma mines out of a project are real data and meaningful data. You use data to create actionable goals, analyze and determine the root cause(s) of defects, and then measure the results to shows how those goals were achieved. The data determines the causes of the problems that need improvement and how to eliminate the gap between existing performance and the desired level of performance. Tools are put in place to ensure that the key variables remain within the acceptable ranges over time so that process improvement gains are maintained. The changes brought about through Six Sigma are real, significant, and long-lasting.

Also, Six Sigma is not a simple 1-2-3-you're done process. It is a “way of life.” It is a multi-level, cyclical movement toward continual process improvement. Six Sigma is a time-consuming and high-energy process. Companies develop a long-term plan that outlines the move from current performance levels to Six Sigma performance levels, with tangible, short-term goals in between.

Successful Six Sigma programs are built on a solid organizational foundation. The organizational structure and system needs to be clearly identified and communicated to the entire organization to successfully implement Six Sigma Quality. Becoming a Six Sigma organization doesn't just happen. Planning and training goes into setting up a successful Six Sigma organization. Employee roles and responsibilities must be established and clearly communicated to all.

The more Six Sigma projects your company completes, the more involved you become with more mature and meaningful projects than when you began. Six Sigma becomes part of the core of your business. It isn't a quick knock-off program; it keeps growing and changing as your business needs grow and evolve. The other fads didn't last at your organization, but Six Sigma will.


by :
Peter Peterka
About the author:
Peter Peterka is President of Six Sigma us. For additional information on Six Sigma DMAIC or other Six Sigma Green Belt Training project programs contact Peter Peterka.



Friday, March 13, 2009

3 Crucial Elements For Jumping Sales Numbers

Marketers from every niche have common ground when it comes to bills. Yeah, every month there’s a new stack of bills demanding to be paid. Will there be enough profit to slide right through bill paying time without a flinch? Or do you find yourself fretting about whether you’ll even break even? You don’t have to be victimized by envelopes and 8x10 sheets of paper. Implement these 3 techniques to boost your sales.

1. Find More Customers
The first thing that comes to mind when we think of making more money is getting more customers through our doors. In fact, the majority of advertising focuses on doing just that. There are several things you can do to entice more customers to buy from you.

Implement Follow-Ups
Marketing gurus have discovered that follow ups can increase your customer conversion rates by as much as 50%. Now, that’s a whopping improvement! Don’t let potential customers fade away. Keep the doors for future communication open, and watch the drastic growth in your profits.

Encourage Referrals
Every satisfied customer will tell 3 friends or family members about your business - without encouragement. Imagine what would happen if you start rewarding their efforts.

Get Free Publicity
Nearly everyone keeps a sharp eye on the local news. Hey, it’s funner to know what’s going on when you personally recognize the names and faces in print! Find ways to make your business newsworthy and catch the attention of potential customers without even paying advertising fees.


2. Sell More Per Customer
Think about it... how can you get every customer that walks through your doors to spend more money before walking back out the doors? Here are 3 sure-fire, profit increasing tips:

Increase your prices.
Hey, that might not be as bad as you think. Along with the price increase, focus on increasing the perceived value of your product. Yeah, we all expect to pay a little more for high quality stuff. Not everyone is bent on finding the absolute cheapest price in town... they may be more interested in lasting quality.

Add some higher end products or services to your business.
It’s never wise to put all of your eggs in one basket. That’s why wise marketers diversify their products and services. Think of it this way... higher priced products may not make as many sales, but each sale will bring in a much greater profit. You don’t need to make as many sales to come out on the best end of the deal.

Upsell
Offer every customer an additional product that accents his current purchase at the register. Hey, maybe they forgot they’d need batteries to go with the toy they're getting for their niece's birthday gift! You can be a hero... a richer hero.

3. Sell More Often
The fact that it’s easier to sell to the people who know and trust you is obvious. Sometimes we get so focused on new customers that we miss the gold mine in our own back yard. Take advantage of the hard work you’ve invested in winning the loyal customers you already have with these ideas:

Create a Special Deal
Show your customers you appreciate them and understand their needs with a special offer catered just for them. You’ll be thanking them, and selling more in the process.

Add New Products
Increase the number of products you already have available - especially products that your customers have asked for. They’ll know that you’re looking out for them, and you’ll take their thanks to the bank.

Communicate
Resell yourself on a regular basis. Don’t forget to let them know about upcoming specials that they’ll appreciate. Most of all... keep selling them on the benefits of the products or services you offer.

by: Allyn Cutts http://www.AllynCutts.com