Results of Survey on Continuous Improvement Program Approaches
What are companies doing to improve performance in their companies? This guest blog post from Steven Martin's "Profits Weekly" has some interesting answers. - Jeff Pallister
From Profits Weekly:
Last month we ran a simple survey to see how many companies are using what form of Continuous Improvement Program and to what extent they are applying CI. The results are not surprising. The majority of businesses that we talk to have been moving away from Six Sigma, through Lean and are adapting tools and models to meet their specific needs.
Here are the results. The sample size was not large enough to be statistically significant so we are wise to be careful with our assumptions but they do follow the trends in other surveys that I have seen. Here are the results of the two questions:
1. Our company approach to Continuous Improvement Program is...
Responses: 40% our own approach; 22% Lean; 22% Lean and Six Sigma combined; 0% Six Sigma alone; and 17% We do not have a CI program.
2. To what extent is CI applied in the company?
Responses: 11% said 100% all departments and functions; 22% said 75% most departments and functions; 44% = 50% some departments and functions; and 20% = 0% we do not have a CI program.
Interpreting the results
Other surveys have said that only 1 to 5 out of 20 companies are fully successful with a complete implementation of Lean or Lean/Six-Sigma. I actually think the results are actually not as bad as the predicted 75-95% failure rate would show. All is not well, however, as those who have used TQM, Lean, Six Sigma and/or combinations are finding that these processes stifle long term growth. Some companies have "leaned" themselves into bankruptcy.
Adapt to fit
My conclusion from 4 decades of experience is that there is no one perfect Continuous Improvement Process. Successful companies adapt and adopt to fit their specific needs and change dynamically as the world changes. A good Continuous Improvement Process MUST include the mechanism for innovation and change.
There is hope. A free 2011 detailed report ("Profit Improvement Executive Analysis") is available with a thorough review of Continuous Improvement and what you can do continuously improve your profits. Please email us to request your copy.
Steven C. Martin © 2011, Business Solutions - The Positive Way, www.profitpro.us
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