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kishor Jagirdar
Author:kishor Jagirdar
Managing Director at Infopace management Pvt Ltd
Human Resource and the Role with Six Sigma
Tuesday 05th, February 2008

Chances are you've heard of Six Sigma, perhaps in connection with General Electric, the company that made it popular in the 1990s. You may even know that Six Sigma uses statistical techniques to improve processes in both manufacturing and service industries. But did you know there is an important role for Human Resources (HR) in this sophisticated process improvement approach? Or that Six Sigma initiatives are unlikely to succeed without HR's help?

HR professionals with the right skills can contribute to a Six Sigma initiative at both strategic and tactical levels. This article describes the areas in which HR should play a role in Six Sigma and discusses how HR professionals can increase their chances of being included in Six Sigma decision-making and implementation.

To appreciate the important role HR has in Six Sigma, it is important to begin this discussion by having an understanding of what Six Sigma is, all the roles played by others in a Six Sigma implementation, and the factors critical to a successful implementation.

Six Sigma Defined
The term "Six Sigma" is widely used to refer to all of the following:

A structured method for improving business processes. This method, called DMAIC (define, measure, analyze, improve, and control), is supported by an assortment of statistical tools.

A statistical measurement of how well a business process is performing. A process that performs at "Six Sigma" produces only 3.4 defects out of every million opportunities to produce a defect. Processes that perform at lower sigma levels (such as one sigma or four sigma) produce more defects per million opportunities. It is possible for a process to perform at an even higher level (and thus have even fewer defects), but Six Sigma has become popular as the standard for excellent process performance.

An organizational mindset in which people make decisions based on data, look for root causes of problems, define defects based on customer rather than internal requirements, seek to control variation, track leading indicators of problems to prevent them from happening, etc.

HR's Role in Six Sigma
As with any major organizational initiative, many factors contribute to success. Some of these factors will fall within HR's area of responsibility, such as those discussed below.

Black Belt Selection and Retention
Having the right people in the Black Belt role is critical to the success of a Six Sigma initiative. The training investment is substantial for this pivotal role. Further, Black Belts are the visible "face" of Six Sigma. They help shape the organization's impression of Six Sigma, and, consequently, the willingness of many to embrace the initiative. Therefore, you want to pick Black Belts very carefully. (Some organizations only select Black Belts from among those who have already been identified as "high potentials.").

HR professionals can help the Six Sigma Leader find the right people for Black Belt roles and ensure they remain in those positions for the typical two-year rotation. Potential HR contributions in this area include:

Building a competency model that will help identify candidates with the right mix of technical, team, and leadership skills and abilities. Creating job descriptions that help candidates fully understand the position and expectations prior to signing on. Developing a retention strategy that will help ensure Black Belts complete their rotation and the organization recoups its investment in training and development.

Rewards and Recognition
Rewarding and recognizing Black Belts and Six Sigma teams is more complex than it may appear. Black Belts join the Six Sigma initiative from various places in the organization where they are likely to have been at different job levels with differing compensation arrangements. Determining whether and how to make appropriate adjustments in level and compensation now that all these individuals are in the same role is both tricky and critical.

Similar complexities are involved at the project team level. Six Sigma projects led by Black Belts typically result in savings in the hundreds of thousands of dollars. Deciding how the team should be rewarded and recognized and who should get credit for what is not easy. Yet ignoring these issues can result in resentment, reluctance to work on Six Sigma projects, and the potential failure of the overall initiative.

HR professionals can help the Six Sigma Leader tackle the challenge of establishing the right rewards/recognition. Potential HR contributions in this area include:

Analyzing existing compensation arrangements to identify the extent to which those arrangements will support the Six Sigma initiative. Creating a strategic compensation plan that will better support Six Sigma. Developing a non-monetary reward program for Six Sigma teams.

Project Team Effectiveness
The work of Six Sigma is done mostly at the project team level by a Black Belt leading a small team through the steps of the DMAIC method. If the team itself does not function well or does not interact effectively with others in the organization who ultimately have to support and carry out the process changes, the project probably will not be successful. Given the typical project's potential payback, failure can be expensive.

HR professionals can help the project teams work together more effectively. Potential HR contributions in this area include:

Ensuring team leaders and members get training and/or coaching in teamwork, conflict management, communications, dealing with difficult team members, and other team effectiveness skills. Providing teams with tools that allow them to diagnose their own performance and identify when and where they need help. Acting as a resource for Black Belts who encounter team-related challenges they cannot surmount.

Creating a Six Sigma Culture
Many Sponsors, Champions, and Leaders look to Six Sigma as a way to change an organization's culture to one that is more data-driven, proactive, decisive, and customer-oriented. But they often have little idea about how to achieve successful culture change.

HR professionals can help executives approach culture change in a way that addresses the underlying business goals without creating organizational resistance. Potential HR contributions in this area include:

Working with Six Sigma Sponsors, Leaders, and Champions to identify elements of the culture that might hinder the achievement of Six Sigma goals. Advising on change plans that will target those specific cultural elements. Identifying how Six Sigma can be rolled out in a way that works with, rather than against, the current culture.

Change Management and Communications
Introducing Six Sigma into an organization is a major change that will have a profound effect on a broad group of stakeholders. Managers and employees at many levels of the organization will be asked to engage in new behaviors. In many cases, those leading other initiatives will see Six Sigma as a source of competition for resources, executive attention, and organizational power. Others may see it as an indictment of their past performance. Many will be confused about how Six Sigma fits with the large number of other ongoing organizational initiatives.

HR professionals can help reduce the uncertainty and anxiety surrounding Six Sigma and increase the levels of acceptance and cooperation in the organization. Potential HR contributions in this area include:

Drafting a change management/ communications plan that addresses the people side of the Six Sigma rollout.

Helping create a "case for change" that describes:

The reasons for and benefits of Six Sigma. How the organization will help employees succeed in new ways of working. How Six Sigma fits with other ongoing initiatives.

Counseling Six Sigma Leaders and Champions on how their behavior can help or hinder Six Sigma's acceptance throughout the organization.

Being Included in Six Sigma
Just because HR professionals can play a role in the success of Six Sigma, it doesn't automatically follow that they will be asked to participate. Unless you are in an organization that views HR as a partner in all business initiatives, you may have to push to be included in Six Sigma.

HR can greatly increase its chances of being included in the Six Sigma initiative by:

Ensuring HR professionals have the right skills and knowledge. Marketing its potential contribution early in the initiative.

Gaining the Right Skills and Knowledge
In addition to HR/organizational development-related areas, HR professionals need a familiarity with Six Sigma itself. Without a basic knowledge of the DMAIC method, supporting tools, roles, jargon, and even simple statistical methods, HR will not have the credibility it needs to be considered a potential contributor to the initiative.

The time to get this knowledge is now. Even if your organization is not rolling out--or even considering -- Six Sigma today, there are two reasons why it's worth a HR professional's time to become familiar with the concepts now. If the organization does decide to implement Six Sigma, there won't be enough time to catch up. HR has to be involved at the very beginning of the initiative. In addition, there are many applications of Six Sigma to HR's processes themselves, e.g., the payroll process, benefits administration, selection, and recruiting. HR might even consider setting an example for the rest of the organization by adopting Six Sigma techniques to enhance its own processes.

Marketing HR's Potential Contribution
The marketing challenge is twofold. First, senior executives may not believe that the people issues are just as critical to Six Sigma's success as are its many technical components. In that case, HR will need to sell the importance of the people side. Second, executives must perceive HR as being able to make a significant contribution on the people side of Six Sigma. Besides ensuring that it has both the required skills and knowledge described above, HR can also meet these challenges by:

Gathering data that supports the need for attention to the people side of Six Sigma. Potential sources include Six Sigma publications, case studies, conference sessions, and executives in companies that have already implemented Six Sigma.

Deriving lessons from previous organizational initiatives in which people issues and/or HR actions played an acknowledged role in success or failure.

Meeting with senior executives to discuss their business/Six Sigma goals and then identifying areas where HR could provide very specific and measurable help.

Speaking to Six Sigma Leaders and Champions in the language of Six Sigma, not the language of HR. These executives are typically interested in improving efficiency (i.e., internal cost) and effectiveness (i.e., what the customer sees as "defects"). HR needs to understand what the executives care about and pitch HR's services in relevant terms.

Taking the lead and applying Six Sigma successfully within the HR function..

HR has a substantial role to play in the success of a Six Sigma initiative. But it will have the opportunity to contribute only if its professionals have the right skills and knowledge and are able to show Six Sigma executives the value they can add. Gain those skills now and make sure senior leadership knows how HR can help support the success of the initiative. Only then will they realize they just can't do it without you!

Tel:91-80- 41685705

Email : training@infopaceindia.com

http://upcoming.yahoo.com/event/419710/

 
Comments
Comment 1: By Raj Sheelvant on 13th Feb 2008
Good point Kishore

Its very important to recognize that in a Knowledge base economy, HR should and must play a strategic role (compared to day to day hiring, training, company policies etc.).

Comment 2: By Girish Marathe on 09th Feb 2008
Namaskar,
Sh. Kishorji,
I read the document and is really impressed by your lucid simple laungauge and clear thoughts on this topic.
You have clrearly defined the what an HR executive at any lvel can positively contribute in the Six Sigma initiatives.
But with my experience of HR executives I really wonder whether any HR executive will have such qualities /attributes with him. And if at all any HR executive has really such qualities he will definitely not be in HR but will be in top management specially in finance & marketting.
There is a valid reason for my comment. I have observed the internal departmental nurturing of the budding HR executives in the various companies. in most of the companies they aredeveloped as shrud persons, anti-people and puppets of top management. If someone calls one HR executive as very dymanic then take it from me that he is the best suited puppet of management. Any management initiative is always looked by a HR executive as wasteage of money. This is becasue of his/her inability to understand the direct or indirect benefits of that initiative from other function's perspective. The first puncturing of the efforts is done by HR. Be it the poster campaign or rewarding the contributions for any quality initiative or any customer meet of slaes people, all willbe seen by HR executives negatively. Usually the support is very negative. Since recruitment to retirement these HR executive feel as if they are paying employee from their pockets.
Hence I am of the opinion, if any company management is seriously thinking to go for any six-sigma or any such quality inititiave, they should arrange 5 day oritientation programme for HR personel first. Then only whatever you have expected from the HR may be delivered to 30 % extend.
Sorry for the negative thoughts but i feel this is a fact.
Girish Marathe

Comment 3: By Bhavin Jhaveri on 06th Feb 2008
Excellent article!

Some time back i'd attended a "Six Sigma and HR: Perfect Together" workshop during the SHRM annual convention in NJ.

The presenter explained how HR can play an active role in supporting continuous improvement efforts, and therefore continuing to move towards a role as a valued business partner.

Partnering, communicating, and getting the right people on-board and committed are the major themes for achieving the same.

- BJ Jhaveri, SPHR

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