Originally posted on 6 Jan 2014
In an earlier Blog, I referred to Six Sigma.
By way of explanation: Six Sigma is a highly disciplined process that helps an organisation to focus on developing and delivering near-perfect products and services.
The word is a statistical term that measures how far a given process deviates from perfection. Thus, Six Sigma is a management philosophy focused on eliminating mistakes, waste and rework – the central notion behind it is that if you can measure how many “defects” you have in a process, you can systematically work out how to eliminate them and get as close to “zero defects” as possible. Zero defects means quality and perfection. It cuts costs, enhances customer satisfaction and contributes more than anything else to business success.
Most businesses operate at a three- to four-sigma level, where the cost of defects is roughly 20% to 30% of income. By approaching Six Sigma (3.4 per 1million opportunities) the cost of achieving quality drops to less than 1% of sales. Although zero defects is the goal, as a measure Six Sigma will drive a business toward achieving higher levels of customer satisfaction and reducing operational costs.
There are three key elements of quality: customer, process and employee. If an organisation wants to be and remain a world-class quality company, it needs to focus on these three essential elements. Customers value consistent, predictable business processes that deliver world-class levels of quality. This is what Six Sigma strives to produce.
In my view, it’s much easier to apply Six Sigma to manufacturing processes that to professional services but I am aware that some service organisations have achieved that status, but not accountants or lawyers yet, as far as I know.
I’ve written a publication on this subject. If you would like a free copy, please email me at email@example.com
He was a Council member of the Institute of Chartered Accountants in England and Wales from 1988 to 1996.
Martin Pollins ran his own firm based in Sussex and was the first Accountancy firm in the UK to advertise on television and Martin went on to create and launch the CharterGroup Partnership (the UK's first Accountancy network) and then LawGroup UK (one of the largest networks of lawyers in the country).
Martin started work on the Bizezia concept in 1996, developing the broad range of information resources and products over the past 18 years.
Latest posts by Martin Pollins (see all)
- It’s much better to be different than it is to be better - March 19, 2015
- Here’s the way to a better practice - March 16, 2015
- Here’s how to find the time to… - March 10, 2015