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Six Sigma Qualtec Press Releases
THE TRANSACTIONAL TREND
August 12, 2002
Service and Transactional Businesses
Benefit From New Six Sigma Training
Tempe, Arizona – Facing an ever-increasing demand for improved financial performance and efficiency, transactional businesses are looking to performance improvement methodologies such as Six Sigma and shaping them to meet the specific needs of an environment based on human interactions and decision-making processes.
In growing numbers, transactional businesses are looking to performance improvement methodologies such as Six Sigma and reshaping them to meet the specific needs of an environment based on human interactions and decision-making processes. Where the original concepts of Six Sigma dealt primarily with statistical analysis of easily measurable and predictable data from the output of machines and assembly lines, this new transactional approach emphasizes process management and the analysis of "non-normal" – or human – performance data.
"Transactional businesses such as banking, accounting, insurance and customer support face unique challenges in obtaining breakthrough levels of improvement," said Pete Robustelli, executive vice president of Six Sigma Qualtec (SSQ), a leading provider of performance improvement training and consultation worldwide. "The transactional business environment is centered on the way in which people perceive production obstacles and make decisions that affect work processes."
Robustelli sees a significant business trend emerging as business operations from hospitals to customer support call centers seek out more sophisticated methods of tracking workflow and finding opportunities to improve both individual workers’ efficiencies and the business’ overall financial performance. "As the world moves from an industrial mindset to a service- and information-based economy, these transactional businesses face fundamentally different issues than their ‘widget-producing’ predecessors," he said.
The core concepts of Six Sigma, Robustelli emphasizes, are sound and still very much applicable to any business setting. But, he insists, this means far more than simply taking a manufacturing-based Six Sigma program and force-fitting customer service case studies into statistical analysis tools.
"You can adjust a knob on a machine and measure the difference in the thickness of a piece of wire," Robustelli explained. "The ways in which people form attitudes, make decisions and interact with other workers can also be measured and systematically analyzed. The fundamental approach is the same, but the tool set is different."
Service-based businesses are discovering those differences first hand as they venture into the world of Six Sigma. One of SSQ’s clients, an international construction management company, started out two years ago by training selected employees as Six Sigma Black Belts using a standard manufacturing approach. SSQ, then emerging as an early developer of transactional applications for Six Sigma, helped the construction firm shift it's perspective. The results, according to Robustelli, were startling.
"Prior to adopting a transactional approach, [the construction company] saw moderate improvements in financial performance. But where one problem was eliminated, another popped up. Demonstration projects were successful, but sustaining improved levels of performance proved sporadic," he said. "Once the transactional model was applied, they realized exponential improvements in customer satisfaction, productivity, cost reduction and – ultimately – bottom-line financial performance."
At the heart of a successful Transactional Six Sigma implementation, Robustelli believes, is the training received by key employees who will be selecting projects, measuring data and testing approaches for improvement. And, while many training companies are rushing to meet the need for transactional performance improvement by providing cursory overviews (what Robustelli calls "Six Sigma Lite"), a full foundation in Six Sigma tools and methodologies is still a pre-requisite. SSQ goes one step further, Robustelli said, by providing clients with extensive simulation exercises based on real-world transactional experiences.
"Transactional Six Sigma is not just the latest business buzz word," said Robustelli. "It is a whole new world of opportunity, and it comes with a whole new approach to problem solving."
Background
Six Sigma, which focuses on identifying root causes of problems in a business’ work processes, detects problem areas and leads management through statistical analysis that indicates corrective actions and suggests ways to reduce defects and streamline workflow. Developed by Motorola in the early 1980s, the methodology gained widespread acceptance in manufacturing circles after business leaders such as GE’s Jack Welch and AlliedSignal’s Larry Bossidy embraced and applied Six Sigma concepts and achieved startlingly successful performance results.
Six Sigma Qualtec is a premier provider of training and implementation services that drive measurable financial results. The Six Sigma Qualtec methodology is an integrated deployment of training and tools for achieving breakthrough performance including dramatically reduced cycle times, defects and costs. This approach has significantly improved productivity, efficiency and customer satisfaction with clients worldwide.
Contact: Kurt Marttila
800-247-9871
kmarttila@ssqi.com
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