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Financial Measures – Integrating


It never seems to surprise me that people think service is complex, it has become complex because of the reason’s mentioned in the following question raised by the moderator Jim Bowie.   

“Integrating Financial Measures that Positively Impact ALL Stakeholders”

While the second generation of Six Sigma integrated quality improvements with cost reductions, many organizations have struggled with developing, reporting, and improving fiscal metrics. Is this a problem in your organization? Why? In my experience, I have noticed a fear of transparency between different management layers ranging from the C-level to the shop floor. The notion revolves around multiple assumptions, including (but not limited to):

I think people are partially worried about the following points raised by Jim, although I suspect a bit more around a different theme. 


1. If the shop floor workers have visibility on cumulative savings, they might expect better compensation;

  1. I’d never considered nor met an executive that expressed this type of concern. 
    1. Perhaps a regional dilemma? 
  2. There certainly are managers who would be unlikely to promote this idea, if they didn’t think of it themselves. 
    1. The manager would not want to pay someone or promote the person who came up with an idea on their own. 
    2. Perhaps the manager couldn’t explain the value and benefits themselves, so they introduce barriers to communication or block their own employee?
2. If the senior leaders realize increased profitability with existing resources, they might pursue the continuation of the positive trend with fewer resources; and
  1. This could be regional… in my part of the world, this is happening regardless.
    1. The number of jobs sent offshore. 
    2. The “fewer resource model” is in the works, regardless.  
  2. I’d preserve my position by being the smart one to find these opportunities.


3. If certain stakeholders gain visibility of the cost savings (or increased profitability), they might question what the heck the leaders and the employees were doing beforehand.

  1. Of course, this fear is normal. 
    1. I would worry, to change this around, I’d want to be the fantastic person who brought the opportunity forward. 
    2. Then, I’d want to be part of the solution…doing something fantastic to contribute to fixing the problem.    

Set yourself up for success. 

  • Surround yourself with a bunch of lean six sigma’s and be the one to make the difference in your organization. 

Why did I take this conversation or discussion offline? 

  • To avoid hijacking the conversation. 

Service complexity; Fact or Fiction? 

The only capabilities you need to overcome



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