Leadership is a much-talked about subject and people have the general curiosity to know its building blocks. As we all know, it is one of the major determinants of organizational success. Great businesses and less than that are often defined by the quality of their leadership. The performance, culture and stature of a business are normally determined by its leaders.
Now let us look at “Six Sigma” – one of the most popular management methodologies primarily concerning development and continuous improvement of customer-focused products, services and processes. It has also been described as a very useful method for organizational success. Understandably, many business leaders throughout the world have invested time and energy in learning about and supporting Six Sigma efforts.
Nepal is undergoing a huge transformation. In such a time, it is imperative for the businesses to take a re-look at their respective operating processes and revamp them according to the changing global scenario.
In the present times of financial upheaval across the globe, organizations are looking at all possible means to optimize resources and operate profitably. As customers expect lowest prices for different products and services, organizations feel the need to cut costs as a response to decreasing margins. However, business leaders must understand that although eliminating resources to reduce costs may result in short-term gains, improving organizational processes is a more sustainable way to reduce costs and maintain quality. This may include the application of Six Sigma methodologies to achieve measurable and sustainable process improvement. Today’s competitive environment leaves no room for error or redundancy. We must delight our customers and relentlessly look for new ways to exceed their expectations.
When organizations decide to deploy a Six Sigma initiative, there are several foundation stones required for a successful venture, the prime among which is leadership. From executive-level support to assigning champions and choosing the right projects, leadership is critical for Six Sigma success.
From empirical findings, these endeavors have helped organizations to significantly achieve higher profitability, customer satisfaction, eventually leading to higher brand values.
Now let us see how the business leaders have done with the application of Six Sigma concepts. It is evident that leaders haven’t been applying the Six Sigma concepts consistently but this doesn’t mean that they’re not supportive of the fundamentals of the Six Sigma approach. We have some evidences to the contrary where some of the most admired executives in global businesses have implemented Six Sigma programs as a key to their respective organization’s current and future success. We could see a growing interest in Asia, where China, Vietnam, Indonesia, Thailand and India are increasingly adopting this concept alongside Korea, Taiwan, Japan and Singapore.
Nepal is no exception – there exists a blend of different leadership styles. Few of these seem to have been working fine whereas majority of cases suggest otherwise. Resources are available but accessibility is limited owing to lack of proper direction. With changing times, the need for capitalizing on and optimization of resources is more than ever.
Businesses today need to seamlessly meet public demand through efficient delivery of product and services and at the same time improve their own bottom line. Along with this, it is of equal importance to also consistently reward all stakeholders. Such a success will be possible through bringing in vitality in leadership style and adopting oneself to the dynamic operating environment.
Although Six Sigma leadership is simple to understand, it is difficult to provide a clear-cut definition for the same. The simple part in Six Sigma Leadership is about practicing principles that a majority of us would agree make up a better way of leading. The concepts that one would be exploring may appropriately be called “applied common sense”; these are not based on rocket science, no mind-bending issues, just smart and practical guidelines for being a better leader.
Six Sigma leadership isn’t an attempt to make one into some legendary leader; it could be stated that rather than focusing on traits like charisma or brilliant intellect, the core of Six Sigma leadership is about practical skills that tie directly to how well you help your business succeed. These are the skills probably any individual can apply.
Balance and flexibility could be described as the essence of Six Sigma leadership. The combination of stability and responsiveness provides it with the requisite power. It certainly argues against those who particularly favor a leadership style even when it’s not working.
Empirical evidences have shown us how lack of leadership, balance and flexibility leads to poor decisions, futile efforts – loss of millions of dollars each year – quite prevalent in the underdeveloped/developing economies.
Nepal is undergoing a huge transformation and has arrived at the threshold of national rejuvenation. In such a time, it is imperative for the businesses to take a re-look at their respective operating processes and revamp them according to the changing global scenario. Thus, it requires leadership determination and organizational commitment to correctly apply Six Sigma. The private sector should take the lead, which will eventually actuate the public sector to follow suit. In due course of time, such efforts impact positively not only on individual businesses but also on the national economy as a whole.
Writer is CEO, Standard Chartered Bank Nepal Ltd.
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