Why YOU Need Lean Six Sigma – Part 4
Intangible costs – continued.
Increase in revenue
A better understanding of customer needs and wants and identifying “leakage” points can become opportunities for increasing revenue.
The reason why you need Lean Six Sigma – Part 4, is because a typical Lean Six Sigma project on the revenue side focuses on improving cross-selling activities, which increases the products per customer ratio, improves the repurchase rate for similar goods or services, or increases application conversion rates.
Concerning conversion rates, think of the number of applications the bank or credit union may receive for car loans:
How many of those applications are converted into loans?
The goal of the Lean Six Sigma project would be to recognize the significant dropout points or leakage points in the process and identify ways to reduce or eliminate them. Ultimately, the goal is to improve the company’s bottom line.
Deliver consistent customer service.
Your company’s image is created mainly by interacting with its customers. You will want this interaction to be as consistent as possible because disappointed customers are vocal critics.
Lean Six Sigma can help identify the variation your customers are experiencing, what is driving that variation, and ultimately how the number of dissatisfied customers can be minimized or, better yet – taken to zero.
Build a culture of continuous improvement.
A methodology will only have to stay in power if it instils a single-minded focus on continuous improvement within its employees.
Lean Six Sigma is built on a platform that constantly revisits improving processes and customer impact. If the central focus of an organization is on continuous improvement, chances are that in the long term, the organization will not be in reactive mode.
The role of Lean Six Sigma in building a continuous improvement culture is significant and includes the following:
A standard approach to problem-solving
Consisting of a common language, organizational structure including green belts and black belts, and a culture for measuring business process performance
The creation of infrastructure in the company to permit access to reliable and timely process data so that accurate business decisions can be made
The development of meaningful process metrics helps gauge performance as well as identify future improvement opportunities.
