The document discusses GE's implementation of Six Sigma in the 1990s. Six Sigma is a business strategy focused on quality improvement through reducing defects. GE started a company-wide Six Sigma initiative in 1996 led by CEO Jack Welch. Senior managers were initially reluctant for change as the company was already successful. Welch pushed for the best employees to lead Six Sigma. GE supported it through incentives like requiring certification for raises. In the first year, 30,000 employees trained and $200 million was spent. By 1999, Six Sigma generated over $1 billion in value and changed GE's culture according to Welch.

1. © 2016 SkimaTalk, Inc.
SkimaTalk Official Course
Strategic Human Resource Management
Lesson 5: Becoming a Change Agent

2. Key Vocabulary / Concepts
2
Become familiar with the following words
before this lesson’s case study
Six Sigma
Originally developed in 1986 by Motorola, this business
management strategy is now used in many different
industries. This strategy works toward improving the
quality of products and services produced by a business
through the removal of defects and errors.
Green Belt / Black Belts
Green Belts are the employees who take up Six Sigma
implementation along with their other job responsibilities.
Green Belts operate under the guidance of Black Belts.
Teacher instructions: Quickly review
the key vocabulary with your
student and answer any questions.

3. Case Study: GE’s Six Sigma Initiative
3
Do you see change as an opportunity or a risk? Why?Q
“It is not the strongest or the most intelligent who will survive but
those who can best manage change.” - Charles Darwin
Change is inevitable as the world is changing rapidly – due to
globalization and technological innovation. Many people,
however, don’t like change, especially when things seem to be
going well.
In 1996, GE started a company-wide initiative to implement Six
Sigma. The objective was quality control and assurance of
products, but later, included leadership development as well.
This was not an easy project to implement because GE’s revenue
and profit was growing rapidly. Drastic change did not seem
necessary for many employees.
Teacher instructions:
-Ask your student to
summarize the case.
-Ask the discussion
question.
-Help your student
think through his / her
idea and the
reasoning behind it.

4. Case Study (continued)
4
Jack Welch, then CEO of GE, called Six Sigma the most ambitious task
that the company had ever taken on, and told senior managers to
assign the best people for the initiative.
GE supported this new initiative with a rewards system. “When we
did Six Sigma, we went out with a message that said if you are not at
least green-belt-certified, then you are not going to get a raise. That’s
pretty dramatic, and that of course gets people green-belt-
certified.”* said Bill Conaty, GE’s senior vice president of HR at the
time.
In the first year, GE trained 30,000 employees and spent $200 million
on the training. By 1999, Six Sigma had generated more than $1
billion in economic value. “Six Sigma is changing the fundamental
culture of the company and the way we develop people.”** said Jack
Welch.
GE’s senior managers were first reluctant to follow the Six Sigma initiative. How
would you have changed their attitude? Please present some ideas.
Q
* Source: workforce.com “GE's People Power Conaty Made Jack Welch a Believer”
** Source: Jack Welch “Jack: Straight from the Gut"
Teacher instructions:
-Ask your student to
summarize the case.
-Ask the discussion
question.
-Help your student
think through his / her
idea and the
reasoning behind it.
-Answers may be
related to the 4 roles
mentioned on page 5.

5. Discussion: Becoming a Change Agent
5
According to HR guru David Ulrich, to
be a change agent who designs and
manages change in an organization, an
HR professional needs to be active in
the following four roles:
• Catalyst / Champion / Sponsor
• Facilitator
• Designer
• Demonstrator
* Source: David Ulrich “Human Resource Champions”
Discuss how Jack Welch and Bill Conaty were active in some of the above roles
during the Six Sigma initiative. Q
Teacher instructions:
-Ask your student to read the
information on this slide.
-Ask the discussion question.

6. Takeaways From This Lesson
6
ü Change happens. How one responds to change
is important.
ü To design and lead organizational change, HR
professionals should act as catalysts /
champions / sponsors, facilitators, designers,
and demonstrators.
Teacher instructions:
-Review the takeaways with your student.

7. 7
End of Lesson
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