Turning Market Complexity and Uncertainty into Competitive Advantage


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The most successful companies of the future will use Lean and Six Sigma to gain a strategic and competitive advantage. CGN & Associates is helping global organisations get ahead of the curve by working with them to create a strategic framework in which to implement these tools and drive transformational change to achieve dramatic and sustainable benefits.

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Turning Market Complexity and Uncertainty into Competitive Advantage

  1. 1. LEAN & SIX SIGMA 15 SponSored FeATUre Turning market complexity and uncertainty into competitive advantage The most successful companies of the future will use Lean and Six Sigma to gain a strategic and competitive advantage. CGN & Associates is helping global organisations get ahead of the curve by working with them to create a strategic framework in which to implement these tools and drive transformational change to achieve dramatic and sustainable benefits G lobalisation has had long-term competitive advantage. a dramatic impact on Lean and Six Sigma give companies every large company in the tools to solve operational prob- the last decade. Mar- lems and create alignment with the ket globalisation is a double-edged business and customer. sword. On one hand, it opens the Lean and Six Sigma alone are not door to opportunities through new good at fully recognizing and driv- market segments, customers and ing strategic change. Rather, or- global capacity. On the other hand, it ganizations must design a strategic also opens the door to new competi- framework to operate within. They tors who may have been operating in can then use Lean and Six Sigma these markets for years, are intimately tools to empower the organization, familiar with market needs or oper- drive innovation and creativity, and ate with a lower cost structure. align operational metrics to op- The complex global economy re- timise business performance and quires companies to contend with customer satisfaction. new market forces and operational CGN & Associates works with issues. Organisations must extend many global companies that are their operational reach and supply implementing Lean and Six Sigma chains to deliver products and serv- initiatives. The most successful com- ices into the hands of new customers panies retain focus on the following whose needs are unique. They have key tenets throughout deployment: Companies can to battle new competitors with new • They meet and respond to chang- use Lean and Six thinking, new technology, low-cost ing customer needs; Sigma tools to navigate operations, distinct cost models and • They work to minimise and re- and succeed in a complex, strategic pricing. Companies must duce structural costs; global marketplace also deal with volatility in currency, • They constantly evaluate and commodity prices and market de- evolve their business model to alignment and feedback. Without such esses to increase the effectiveness of DRIVING SUCCESS IN THE mand, which are often exacerbated maintain operational and com- a governance framework in place, com- their investments, while driving down NEW NORMAL by geopolitical factors. Together petitive sustainability; panies cannot link individual initiatives cost and capital investment require- Given its deep expertise in Lean and these drivers exponentially escalate • They proactively manage risk and with other opportunities in the value- ments, and increase the company’s Six Sigma principles and practices, operational complexity. This is part market volatility. chain, resulting in short-lived benefits ability to respond to customer needs CGN & Associates is uniquely posi- of the new normal and companies that are not sustainable over time. quicker than its competitors. tioned to help companies turn global need to find ways to adapt. market complexity and uncertainty To compete in this new world re- quires companies to be not only op- Incorporating both CREATING COMPETITIVE ADVANTAGE BEST PRACTICES There are many important lessons into a source of competitive advan- tage by helping them define areas erationally efficient and effective but also agile and flexible in responding operational excellence CGN & Associates has a unique methodology and approach that that can be leveraged from leading companies that have deployed Lean where agility is needed in the busi- ness and helping design flexibility to market shifts. Executives must identify primary sources of uncer- and flexibility into the helps companies identify and create a competitive advantage by leveraging and Six Sigma initiatives success- fully. Best practices include: into core functions of the company. CGN works collaboratively with tainty and carefully design flexibility into core business functions such as business architecture their Lean and Six Sigma efforts. They collaborate with senior executives and • Identify the long-term project goals and track your successes companies to define a strategic framework and implement chang- manufacturing operations and sup- ply chains. Incorporating both oper- is critical for achieving leadership teams to identify existing capabilities, competencies and levers along the way; • Develop a structured strategic es and initiatives in areas such as sourcing, product design, supply ational excellence and flexibility into the business architecture is critical for sustained success for short-term benefits, and develop a recipe for long-term success. Dimen- framework and drive innovation within the framework. Innovation chain, procurement and manufac- turing. CGN provides executives achieving sustained success. sions for differentiation are identified ultimately drives change; with valuable, outside perspective Lean and Six Sigma provide an In addition, the most successful by taking markets, customers, prod- • Generate positive cash flow with to identify key business levers, and excellent framework for adapta- companies use a three-step process ucts, and supply chain and distribu- the Lean and Six Sigma process to serves as a catalyst for change to tion with their underlying science to identify, prioritise and deploy their tion challenges into account. ensure project continuation and drive and accelerate strategic align- and toolbox. They are effective for Lean and Six Sigma initiatives. First, A catalyst for change, CGN drives sustainability; ment, thinking and innovation. unleashing problem-solving and they assess the overall competitive en- new thinking from the top-down into • Provide positive reinforcement innovation within the enterprise. vironment to understand and define all levels of the organisation, helping and create a deliberate persever- www.cgn.net To be effective, however, Lean and critical levers for success, allowing implement strategic plans and acceler- ance culture to sustain change; Seshadri Guha, Founder and Six Sigma need to be guided by a them to create a recipe for increased ating the transformation. CGN identi- • Define a new way of doing busi- Managing Partner deliberate strategy and focused on competitiveness and differentiation. fies specific, focused areas within busi- ness and compete within the stra- sguha@cgn.net +1 309 472 4482 targeted transformation. Second, they appoint a senior ex- nesses to target support and minimise tegic framework; Amit Gupta, Managing Partner ecutive to drive transformation and risk. They become an integral partner • Seek help from an external catalyst amit.gupta@cgn.net +1 847 274 4533 IMPERATIVES FOR unleash the organisation’s innova- in the transformation process and val- and senior-leader sponsorship to LEAN AND SIX SIGMA tion and creative powers to create uable part of the company eco-system. sustain the effort; SUCCESS alignment between operational, For example, CGN recently worked • Drive transformation, flexibility The fundamental challenge faced by strategic and financial metrics. with a telecommunications infrastruc- and innovation within the organi- organisations is the need to obtain Finally, they create an ongoing ture company to define the underlying zation. All three are needed for the immediate tactical and operational governance framework that enables levers and critical processes for scaling effort to accomplish its goals and benefits while creating a sustainable, ongoing performance measurement, their investments, execute these proc- to be sustainable.