Would you rather be good or lucky?
Many companies are caught in the cycle of making new products, then "keeping
their fingers crossed" to see if their customers will buy them
at a favorable price. Six Sigma can be used to significantly stack the
odds in your favor.
Six Sigma requires a process orientation. Its tools and methodologies
are applied to optimize performance and drive continuous improvement.
DMAIC is an acronym that defines the data-driven, Six Sigma methodology.
 |
 |
 |
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D |
Define the problem or opportunity |
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M |
Measure how well you are performing opposite your goal |
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A |
Analyze the process/problem |
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I |
Improve or innovate to close the gaps and optimize performance |
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C |
Controls are established to insure continuous improvement |
All work is a process. All processes have variation.
Variation can cause defects. In the case of marketing and business
development, defects
include missed opportunities, lost revenue, and
reduced margins.
One of the core tools of Six Sigma is process mapping.
When applying this technique to business development
and marketing it can:
- Help identify new business opportunities
- Increase
understanding of your customers’ needs
- Highlight potential
new competitors
- Improve your decision-making ability by making
it fact-based
- Clarify the network of relationships required to
fully utilize your offering
- Help you pull rather than push your
products through the market
What is a Process Map?
A process map is a visual depiction of a set of interconnected
relationships and activities. In
manufacturing, the activities are usually sequential,
or circular if rework is required.
In marketing and business development, the activities frequently
look more like
a network or web. The
motivation for creating a process
map should
be consistent with your business
objectives. In this way it assures
that the map addresses those items that are ‘critical
to the quality’ of successful execution of your business plans.
(These items are referred to as CTQ’s.)
The process map allows you to bypass
assumptions and focus on facts.
The best ones are
very detailed and
include
metrics that are meaningful
to the way your business is evaluated.
There should be an easy continuous
flow to the
activities and
relationships. The inputs and outputs
to each activity are clearly defined.
(Input and output definition is
required in Six Sigma mapping.)
End-to-End Customer Experience
One of the more typical maps looks
at the end-to-end experience around
your
product.
Understanding
the problem your customers
are addressing
with the purchase of your product
is critical. So is knowing what
must be
done with your
product at
every
stage- from
its purchase
through its disposal. The resulting
knowledge leads to the identification
of
gaps where new products or services
could be introduced. Even in commodity
markets, insights can be gained
that will
enable you to enjoy a differential
advantage over your
competitors.
A case illustrating this point
is that of a company that manufactures
plywood
sheathing.
After creating
a process
map, they realized
that 30% of their customers’ time
was spent measuring their product
to enable construction.
As a result, they now
sell their
product with
1 inch printed gridlines so that
contractors can more quickly accomplish
cutting and fitting. Reduced
time means reduced
cost. This gave them
a market advantage and enhanced
their corporate reputation for
innovativeness.
How do you Build a Process Map?
The process of building the map
can be most effectively accomplished
as
a cross-functional
team exercise.
Each individual is empowered
to contribute to the map, writing
a single activity on a ‘sticky
note’ and putting in the appropriate place on a large piece of
brown paper posted on the wall. Participation in the physical task and
the sharing of insights strengthens the team dynamic, accelerating the
team’s evolution to the
stage of maximizing their contribution.
It also provides an opportunity
to highlight the skills and
contributions of individual
team members.
Process mapping can have unexpected
benefits. In one case a miscommunication
was discovered
in which
technical
and
marketing had different
definitions for what was required
for a product ‘trial’.
It was only through discussion
of the detailed activities of
the map that this issue
was identified. As a result,
marketing and technical gained
consensus on the time and activity
required
to generate valid
results that
were critical to the launch
of a new product.
Conclusion
Process mapping is a core Six
Sigma activity. Though it
has its roots
in manufacturing,
it is equally
applicable to sales, marketing,
and
business development. The
data-driven, fact based analysis provides
a higher degree
of organizational confidence
around decision-making.
It also facilitates driving
to deeper levels of
understanding about your customers
and markets, thus aligning
their needs with yours
and creating the kind of intimacy
that creates barriers for
competition. Your
value proposition
is strengthened,
offering the opportunity
for
differentiation and business
advantage.
This isn’t luck. It’s good business.
Download
a PDF of the above process mapping article.
You will need Adobe
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