1) Pharmaceutical companies are increasingly adopting Six Sigma processes to reduce costs, time-to-market for drugs, and inefficiencies in manufacturing, sales, and R&D.
2) For Six Sigma to be truly successful, executive leadership must commit to implementing it throughout all company operations and facilitating a culture change.
3) While Six Sigma has proven effective at streamlining processes in other industries, challenges in the pharmaceutical industry around pricing pressures and patent cliffs are driving more companies to consider how Six Sigma can address inefficient practices.
This document is a piece of work dated 2009 outlining an analysis of the strategic activity within a major international organisation, more specifically Google. It includes an analysis of the advantages and disadvantages associated with using chaos integration perspectives.
Abstract— The IT industry is considered to be dynamic in nature where strategies are changing faster than policies.
Organizations inherently view merger as a key to business change, especially when they want to make a union play. The
relentless pace of technology change and the constant union of different business models across the industry prompt a “buy
vs. build” decision to generally result in “buy”. Mergers are said to be successful only if they lead to an increment in
shareholder value, but latest study conducted by KPMG in 2013 indicates that 83% of merger deals did not boost
shareholder returns. And one of the most noticeable reasons of failure was lack of HR integration between two companies
undergoing the transition. It is evident from the research done across the globe that there has been negligible attention
shown towards IT industry. The mergers have been increasing in this sector ever since a few decades where the IT industry
has grown manifolds, however not many research studies have been able to capture the essence of the matter. The HR
function in IT industry which deals with high volume of employees who have a significant impact on the performance and
results is often undermined by the Top management. Considering the criticality of mergers as a strategic tool, it has been
reviewed that the study conducted by firms as well as researchers have found that the major challenges faced by HR postmerger
would be change in organization, fusion of culture, managerial challenges, transparency in communication and
employee stress. The limitation of this research paper is that the HR challenges faced by organizations post-merger are
confined to IT industry. According to our extensive research and understanding, recommendations are given which exhibit a
holistic viewpoint on the different practices and imperatives that organizations must embrace in order to create a successful
HR integration post-merger in the sector.
Keywords—Employee Stress, Fusion of Culture, HR integration, Post-Merger, Strategic tool
Rewarding Great Ideas - Can Incentives Encourage Organizational InnovationErik R. Larson
The document discusses innovation in organizations based on surveys of CEOs and HR/compensation professionals. Some key findings:
- Innovation is seen as a top priority for CEOs, second only to human capital. It is increasingly important as companies seek sustainable growth.
- Creating an innovative culture requires engaging employees to think more broadly about their roles and allowing experimentation. Employees must also be rewarded for contributions outside their normal duties.
- While incentives are debated, some evidence suggests correctly designed rewards can encourage innovation if employees are focused on new ideas rather than just replicating what works.
- A survey found most companies see innovation as everyone's responsibility rather than just R&D. Senior leadership, HR, and
Businesses can use compensation strategically to drive behaviors that support organizational objectives. Leading organizations recognize compensation strategy as important for success. Research shows top performers are more likely to have formal compensation strategies and use team-based incentives, social recognition, and milestone-based bonuses. Strategic compensation aligns with business strategy and requires the right technology to support strategic initiatives across the organization.
This document summarizes a presentation about creating and sustaining a strategic board of directors. It discusses how the environment for organizations has become more complex, competitive, and fast-changing. This makes strategic boards essential for long-term success. The presentation identifies five challenges to strategic boards and five solutions to address them, such as seeking a diversity of perspectives in board members and orienting members to their strategic decision-making role. It also provides examples of how some associations have implemented solutions like conducting future-focused research and evaluating board performance. The goal is to establish boards that are focused on the future, set goals, model strategic decision-making, and ensure accountability.
This document outlines three steps to improve a company's competitive advantage by focusing on employee health and well-being. Step one is to gain buy-in from senior management by demonstrating how initiatives to improve workforce resilience can increase productivity and reduce absenteeism and staff turnover. Step two is to continuously reinforce the value of individual health and well-being to everyone in the organization. Step three is to nurture a healthy eating culture within the company. The document provides specific actions under each step and argues that small changes to support employee health can significantly benefit a business.
Succession planning and management systems have evolved from solely focusing on talent replacement to also emphasizing employee development. Best practice succession systems are developmentally oriented, actively involve senior leadership, identify talent gaps, and are continually refined for effectiveness. They also invest heavily in developmental activities for top executives like job assignments, mentoring, and leadership programs to prepare the next generation of leaders.
A STUDY ON EMPLOYEE RETENTION PRACTICES OF AUTOMOBILE INDUSTRIES IN INDIA WIT...IAEME Publication
This document summarizes a study on employee retention practices in the automobile industry in India, specifically at Hyundai Motors in Chennai. The study had several objectives: to examine employee satisfaction, training and development activities, compensation factors, and make suggestions to improve retention strategies. Data was collected through a questionnaire distributed to 500 Hyundai employees. The results showed that employees desired job rotation, staff quarters, education loans, family employment, more training, and better rewards and recognition. The study concluded retention is important for automobile companies to retain talent and achieve objectives, and factors influencing retention should be identified and improved.
This document is a piece of work dated 2009 outlining an analysis of the strategic activity within a major international organisation, more specifically Google. It includes an analysis of the advantages and disadvantages associated with using chaos integration perspectives.
Abstract— The IT industry is considered to be dynamic in nature where strategies are changing faster than policies.
Organizations inherently view merger as a key to business change, especially when they want to make a union play. The
relentless pace of technology change and the constant union of different business models across the industry prompt a “buy
vs. build” decision to generally result in “buy”. Mergers are said to be successful only if they lead to an increment in
shareholder value, but latest study conducted by KPMG in 2013 indicates that 83% of merger deals did not boost
shareholder returns. And one of the most noticeable reasons of failure was lack of HR integration between two companies
undergoing the transition. It is evident from the research done across the globe that there has been negligible attention
shown towards IT industry. The mergers have been increasing in this sector ever since a few decades where the IT industry
has grown manifolds, however not many research studies have been able to capture the essence of the matter. The HR
function in IT industry which deals with high volume of employees who have a significant impact on the performance and
results is often undermined by the Top management. Considering the criticality of mergers as a strategic tool, it has been
reviewed that the study conducted by firms as well as researchers have found that the major challenges faced by HR postmerger
would be change in organization, fusion of culture, managerial challenges, transparency in communication and
employee stress. The limitation of this research paper is that the HR challenges faced by organizations post-merger are
confined to IT industry. According to our extensive research and understanding, recommendations are given which exhibit a
holistic viewpoint on the different practices and imperatives that organizations must embrace in order to create a successful
HR integration post-merger in the sector.
Keywords—Employee Stress, Fusion of Culture, HR integration, Post-Merger, Strategic tool
Rewarding Great Ideas - Can Incentives Encourage Organizational InnovationErik R. Larson
The document discusses innovation in organizations based on surveys of CEOs and HR/compensation professionals. Some key findings:
- Innovation is seen as a top priority for CEOs, second only to human capital. It is increasingly important as companies seek sustainable growth.
- Creating an innovative culture requires engaging employees to think more broadly about their roles and allowing experimentation. Employees must also be rewarded for contributions outside their normal duties.
- While incentives are debated, some evidence suggests correctly designed rewards can encourage innovation if employees are focused on new ideas rather than just replicating what works.
- A survey found most companies see innovation as everyone's responsibility rather than just R&D. Senior leadership, HR, and
Businesses can use compensation strategically to drive behaviors that support organizational objectives. Leading organizations recognize compensation strategy as important for success. Research shows top performers are more likely to have formal compensation strategies and use team-based incentives, social recognition, and milestone-based bonuses. Strategic compensation aligns with business strategy and requires the right technology to support strategic initiatives across the organization.
This document summarizes a presentation about creating and sustaining a strategic board of directors. It discusses how the environment for organizations has become more complex, competitive, and fast-changing. This makes strategic boards essential for long-term success. The presentation identifies five challenges to strategic boards and five solutions to address them, such as seeking a diversity of perspectives in board members and orienting members to their strategic decision-making role. It also provides examples of how some associations have implemented solutions like conducting future-focused research and evaluating board performance. The goal is to establish boards that are focused on the future, set goals, model strategic decision-making, and ensure accountability.
This document outlines three steps to improve a company's competitive advantage by focusing on employee health and well-being. Step one is to gain buy-in from senior management by demonstrating how initiatives to improve workforce resilience can increase productivity and reduce absenteeism and staff turnover. Step two is to continuously reinforce the value of individual health and well-being to everyone in the organization. Step three is to nurture a healthy eating culture within the company. The document provides specific actions under each step and argues that small changes to support employee health can significantly benefit a business.
Succession planning and management systems have evolved from solely focusing on talent replacement to also emphasizing employee development. Best practice succession systems are developmentally oriented, actively involve senior leadership, identify talent gaps, and are continually refined for effectiveness. They also invest heavily in developmental activities for top executives like job assignments, mentoring, and leadership programs to prepare the next generation of leaders.
A STUDY ON EMPLOYEE RETENTION PRACTICES OF AUTOMOBILE INDUSTRIES IN INDIA WIT...IAEME Publication
This document summarizes a study on employee retention practices in the automobile industry in India, specifically at Hyundai Motors in Chennai. The study had several objectives: to examine employee satisfaction, training and development activities, compensation factors, and make suggestions to improve retention strategies. Data was collected through a questionnaire distributed to 500 Hyundai employees. The results showed that employees desired job rotation, staff quarters, education loans, family employment, more training, and better rewards and recognition. The study concluded retention is important for automobile companies to retain talent and achieve objectives, and factors influencing retention should be identified and improved.
Human Capital Trends in the Insurance IndustryRon Arigo
This document discusses 10 human capital trends in the insurance industry, focusing on 4 areas: leading, engaging, reinventing, and reimagining. It summarizes that leadership is a top concern for the insurance sector due to regulatory changes and evolving customer needs. However, many insurance executives do not believe their leadership pipelines are prepared. It stresses the importance of developing leaders at all levels through strategies aligned with business goals, assessing candidates' capabilities, and sustainable leadership programs with executive support.
Is collaboration the lasting solution to challenges in Human Resources Practi...Magdalena Pawlowicz
This document discusses how collaboration technologies can help address challenges in human resource practices by better integrating talent management processes and enabling social networking. It provides two examples: 1) performance management systems using instant feedback to regularly evaluate employee performance, and 2) social networking facilitating informal on-the-job learning beyond traditional training. While many companies have further to go, collaboration holds potential if companies focus first on culture and choose technologies accordingly, and if HR, IT, and change management collaborate effectively.
2013 q1 McKinsey quarterly - Putting time to workAhmed Al Bilal
This document discusses time management challenges at organizations and provides potential solutions. It begins by noting that a McKinsey survey found just 9% of senior executives were highly satisfied with their time management and about a third were dissatisfied. It then argues that the roots of this issue go beyond individual time management and require organizational solutions such as time budgets, better organizational design, tools, and incentives. Several articles in the document explore how senior leaders can better prioritize efforts to align their organizations and boost productivity through improved time management, social media skills, and increasing the meaningfulness of work. The document aims to help executives address challenges of limited time in leading their organizations effectively.
Resource management in neyveli lignite corporation limited [www.writekraft.com]WriteKraft Dissertations
The document provides a detailed summary of a study conducted on human resource management practices at Neyveli Lignite Corporation Limited. It includes an introduction outlining the importance of effective HRM, objectives of studying NLC Limited's practices, and methodology used including sample size. Key findings are that respondents' ages ranged from 26-60 years with 1-35 years of experience, and educational backgrounds included graduate, professional, technical, and undergraduate degrees. Suggestions for improving HRM at NLC Limited are also provided.
2014 state of global strategy and leadership survey report updatedmohammadtazam10
The document summarizes the key findings of the Palladium Group's 2014 Global State of Strategy and Leadership Survey. The survey found that most organizations believe changes in their business environment are intense and disruptive, and that their business models will be threatened. However, few organizations are adequately investing in strategy execution, strategic leadership, and innovation - which the survey indicates are critical for success. The survey involved over 1,266 organizations globally. It concluded that organizations understand the challenges they face but are largely unprepared to address them through stronger strategy execution and related capabilities.
The document summarizes the findings of a survey of 47 private and recently public companies about their first outside director. Key findings include:
1. Companies recruit their first outside director primarily for industry and leadership expertise to address specific strategic or operational issues. They focus on skills rather than governance experience.
2. The recruitment process is led by founders/CEOs and directors are often personally connected to insiders. Few candidates are considered.
3. First directors make meaningful contributions quickly in areas like strategy, mentoring, and improving governance processes. Their impact exceeds expectations for oversight alone.
The 5 trademarks of agile organizations (mc kinsey & company)ARTOTEL Academy
The document discusses the five trademarks of agile organizations based on research. The five trademarks are: 1) A network of teams within a people-centered culture, 2) Rapid learning and fast decision cycles enabled by technology, 3) A common purpose to co-create value for stakeholders, 4) Operating like a living organism that can quickly adapt and improve under pressure, 5) Achieving greater customer centricity, faster innovation, growth, lower costs, and engaged employees. While still emerging, organizational agility is becoming a top priority for many companies as they aim to balance stability and dynamism in today's rapidly changing environment.
The document discusses 21 HR jobs of the future that are emerging due to changes in the workforce brought on by the COVID-19 pandemic. It identifies new roles like the Director of Wellbeing focused on employee health and wellness, and the Work from Home Facilitator ensuring remote workers feel supported. It also discusses roles aimed at ensuring ethical use of data and reducing bias, such as the Human Bias Officer. The document argues that HR must lead organizations in preparing workers for future skills needs through roles like the Future of Work Leader. It maintains these roles will be critical to supporting workers and organizational resilience in the coming decade.
This document discusses Biocon, an Asian biopharmaceutical company based in India. It highlights that Biocon launched an affordable version of the blockbuster diabetes drug Lantus in Japan, becoming the first Indian company to bring a biosimilar to a developed market. The company is led by Chairperson and Managing Director Kiran Mazumdar-Shaw, who has built Biocon into India's largest publicly listed biopharma company through her commitment to innovation and affordable healthcare. Biocon invests heavily in R&D and is recognized as a top employer in biotech due to its supportive culture and track record of attracting talented scientists.
This document discusses performance-driven compensation as a talent insurance policy for companies. It argues that tightly linking employee and business performance to compensation helps mitigate the risk of losing top talent. Specifically:
- Pay for performance aims to reward employees based on their impact, but cultural and implementation barriers have made it difficult for many companies. Lack of integration between performance and compensation systems also hinders pay for performance.
- Top performers and high-potential employees are most critical to retain, yet only 19% of UK companies base bonuses directly on individual performance targets tied to business goals.
- Differentiated compensation that disproportionately rewards top performers can motivate them and lower turnover risks, but requires clear goals, performance assessments, and compensation
1. The survey found that employee engagement is the most important HR challenge facing organizations as human capital becomes critical to business success. Nearly half of respondents said engagement was a top challenge.
2. The survey results showed that employees are more motivated and perform better when rewarded with praise and prizes. Over 90% of respondents said positive feedback has a greater impact than negative feedback on performance. Most employees are more motivated by recognition that includes a reward.
3. While years-of-service awards are common, the survey found they are often one of the least effective types of recognition programs. Peer-to-peer recognition was seen as more effective by respondents.
For some time, HR professionals have aspired to create a “paperless office” with automated technology to create, store, and manage all of the employee information necessary to run a business effectively. Today the technology exists to turn this goal into reality with a desirable Return on Investment (ROI). Current business trends toward environmental sustainability provide the additional impetus to make the business case for paperless HR today, to help support the workforce of tomorrow.
Increasingly, reducing the use of paper in business processes will become a necessary step toward corporate sustainability efforts. Some global and regional companies are pushing sustainability initiatives not only within their own operations, but also out into the supply chain, encouraging vendors and partners to implement greener business practices. “Going green” is a competitive response to changes in social attitudes and to the expectations of customers, employees, and stakeholders.
Because of the many paper-intensive administrative processes in the Human Resources department, it is a great area to embrace corporate sustainability objectives by eliminating paper. Going paperless also saves costs and increases the efficiency and accuracy of HR functions. It can even help with recruiting and engagement—many sought-after job candidates and top-performing employees are passionate about environmental causes. This white paper provides information on the benefits of a paperless HR department and the technology for putting it in place.
Executives are striving to measure the impact of training programs on business performance, but many lack effective metrics. A McKinsey survey found that about half of respondents saw training as a top priority, but only a quarter described their programs as "very effective". The inability to define credible metrics to measure business impact is a growing challenge. Executives who prioritized training and said their programs were very effective were more likely to use qualitative and quantitative metrics and cooperation between HR and business units.
The document discusses the challenges senior executives face when leading large-scale organizational transformations. It notes that while executives typically focus on strategic and tactical plans, successfully implementing change also requires understanding an organization's culture, values, people and behaviors. The document then provides a 10-point framework for change management, emphasizing the importance of addressing the human aspects of change systematically and involving people at all levels of the organization.
A Guide To Implement Six Sigma In Your Processvenkatasirish
The document provides a guide for implementing Six Sigma in an organization. It identifies three key elements for successful implementation: organization, people, and process. For each element, it discusses important considerations such as organizational culture, employees' comfort with statistics, process complexity, and ensuring top management support. The document emphasizes that Six Sigma requires significant resources and changes to how work is approached, so organizations must prepare thoroughly before implementing it.
What is Six Sigma? - Donald P. Lynch, Ph.D.Melissa Paige
Download our free white paper by ISD instructor and Six Sigma Master Black Belt Don Lynch that answers the question "What is Six Sigma?" in terms that everyone can understand.
"One of the reasons it has been so difficult for
those not working in an organization that has
embraced Six Sigma to really understand it
is because Six Sigma means multiple things.
The term Six Sigma is used interchangeably to
reflect a vision, philosophy, commitment, goal,
level of performance, statistical measurement,
metric, benchmark, methodology, systematic
approach, set of statistical tools, and a vehicle
for customer focus, breakthrough improvement
and people involvement. These different
definitions can be summarized in three main
categories; Six Sigma the philosophy, Six Sigma
the metric and Six Sigma the methodology."
Has your company ever implemented a quality initiative that failed? Quality initiatives often are seen by executives
as a financial burden and by employees as a way to make them work harder. Is this true? How can organizations
benefit from implementing a quality initiative successfully and how can they do that? Which initiative has proven to
be successful when implemented correctly? Six Sigma!
This document discusses how integrating Six Sigma methodologies with business analysis can improve projects and offer additional tools for business analysts. It focuses on how Six Sigma techniques like process mapping, benchmarking, flow charts, Pareto analysis, and cause-and-effect diagrams can augment enterprise analysis and solution assessment/validation. The document also uses case studies of GM and Toyota to illustrate how Six Sigma principles could have helped identify issues. Key benefits identified are more accurate needs analysis, convincing business cases backed by data, and ensuring solutions deliver intended value through validation techniques like hypothesis testing and defect assessment.
The document discusses the benefits of Lean Six Sigma for employees. It notes that while top-down support is important for deployment, sustained success also depends on employee commitment. To gain employee buy-in, companies should define "WIIFE - What's In It For Employees" and identify change leaders to communicate benefits. Recognition for generating results and linking Lean Six Sigma to performance reviews can further motivate employees. The document also addresses challenges with low mix production models and potential future applications of Lean Six Sigma such as in marketing, accounting, education and addressing social and environmental issues.
This document provides background information on Six Sigma, including its origins at Motorola in the 1980s and evolution over time. It discusses key individuals and concepts that influenced Six Sigma, such as Walter Shewhart's development of statistical process control in the 1920s. The document also summarizes how several major companies, including GE and Honeywell, define Six Sigma for their employees. Overall, it presents Six Sigma as building on a history of quality improvement efforts and management techniques dating back over a century while also introducing new approaches to reducing defects and improving business performance.
eye4pharma article on content-collaborationMatt Portch
The document discusses the need for pharmaceutical companies to break down silos between different functions like sales, marketing, medical affairs, and legal/regulatory in order to better collaborate and drive value. It provides case studies of collaboration efforts at Pfizer, Merck, and GlaxoSmithKline. Key ingredients for successful collaboration include strong senior management buy-in, effective communication channels between functions, and a shared vision, while potential pitfalls include cultural tensions between sales and marketing teams and a lack of integrated data capabilities. The overall goal of collaboration is to help companies adapt to a changing healthcare landscape and remain partners with customers.
The document discusses Six Sigma, a data-driven approach to process improvement originally developed by Motorola in 1986. It aims to reduce defects in products and services by identifying and removing sources of errors and minimizing variability. The key aspects covered are:
- Six Sigma aims for 3.4 or fewer defects per million opportunities by driving processes to operate within 6 standard deviations of the mean.
- It uses methodologies like DMAIC (Define, Measure, Analyze, Improve, Control) to improve existing processes and DMADV (Define, Measure, Analyze, Design, Verify) for new processes.
- When implemented as a management system, Six Sigma helps align improvement efforts with business strategy to accelerate
Human Capital Trends in the Insurance IndustryRon Arigo
This document discusses 10 human capital trends in the insurance industry, focusing on 4 areas: leading, engaging, reinventing, and reimagining. It summarizes that leadership is a top concern for the insurance sector due to regulatory changes and evolving customer needs. However, many insurance executives do not believe their leadership pipelines are prepared. It stresses the importance of developing leaders at all levels through strategies aligned with business goals, assessing candidates' capabilities, and sustainable leadership programs with executive support.
Is collaboration the lasting solution to challenges in Human Resources Practi...Magdalena Pawlowicz
This document discusses how collaboration technologies can help address challenges in human resource practices by better integrating talent management processes and enabling social networking. It provides two examples: 1) performance management systems using instant feedback to regularly evaluate employee performance, and 2) social networking facilitating informal on-the-job learning beyond traditional training. While many companies have further to go, collaboration holds potential if companies focus first on culture and choose technologies accordingly, and if HR, IT, and change management collaborate effectively.
2013 q1 McKinsey quarterly - Putting time to workAhmed Al Bilal
This document discusses time management challenges at organizations and provides potential solutions. It begins by noting that a McKinsey survey found just 9% of senior executives were highly satisfied with their time management and about a third were dissatisfied. It then argues that the roots of this issue go beyond individual time management and require organizational solutions such as time budgets, better organizational design, tools, and incentives. Several articles in the document explore how senior leaders can better prioritize efforts to align their organizations and boost productivity through improved time management, social media skills, and increasing the meaningfulness of work. The document aims to help executives address challenges of limited time in leading their organizations effectively.
Resource management in neyveli lignite corporation limited [www.writekraft.com]WriteKraft Dissertations
The document provides a detailed summary of a study conducted on human resource management practices at Neyveli Lignite Corporation Limited. It includes an introduction outlining the importance of effective HRM, objectives of studying NLC Limited's practices, and methodology used including sample size. Key findings are that respondents' ages ranged from 26-60 years with 1-35 years of experience, and educational backgrounds included graduate, professional, technical, and undergraduate degrees. Suggestions for improving HRM at NLC Limited are also provided.
2014 state of global strategy and leadership survey report updatedmohammadtazam10
The document summarizes the key findings of the Palladium Group's 2014 Global State of Strategy and Leadership Survey. The survey found that most organizations believe changes in their business environment are intense and disruptive, and that their business models will be threatened. However, few organizations are adequately investing in strategy execution, strategic leadership, and innovation - which the survey indicates are critical for success. The survey involved over 1,266 organizations globally. It concluded that organizations understand the challenges they face but are largely unprepared to address them through stronger strategy execution and related capabilities.
The document summarizes the findings of a survey of 47 private and recently public companies about their first outside director. Key findings include:
1. Companies recruit their first outside director primarily for industry and leadership expertise to address specific strategic or operational issues. They focus on skills rather than governance experience.
2. The recruitment process is led by founders/CEOs and directors are often personally connected to insiders. Few candidates are considered.
3. First directors make meaningful contributions quickly in areas like strategy, mentoring, and improving governance processes. Their impact exceeds expectations for oversight alone.
The 5 trademarks of agile organizations (mc kinsey & company)ARTOTEL Academy
The document discusses the five trademarks of agile organizations based on research. The five trademarks are: 1) A network of teams within a people-centered culture, 2) Rapid learning and fast decision cycles enabled by technology, 3) A common purpose to co-create value for stakeholders, 4) Operating like a living organism that can quickly adapt and improve under pressure, 5) Achieving greater customer centricity, faster innovation, growth, lower costs, and engaged employees. While still emerging, organizational agility is becoming a top priority for many companies as they aim to balance stability and dynamism in today's rapidly changing environment.
The document discusses 21 HR jobs of the future that are emerging due to changes in the workforce brought on by the COVID-19 pandemic. It identifies new roles like the Director of Wellbeing focused on employee health and wellness, and the Work from Home Facilitator ensuring remote workers feel supported. It also discusses roles aimed at ensuring ethical use of data and reducing bias, such as the Human Bias Officer. The document argues that HR must lead organizations in preparing workers for future skills needs through roles like the Future of Work Leader. It maintains these roles will be critical to supporting workers and organizational resilience in the coming decade.
This document discusses Biocon, an Asian biopharmaceutical company based in India. It highlights that Biocon launched an affordable version of the blockbuster diabetes drug Lantus in Japan, becoming the first Indian company to bring a biosimilar to a developed market. The company is led by Chairperson and Managing Director Kiran Mazumdar-Shaw, who has built Biocon into India's largest publicly listed biopharma company through her commitment to innovation and affordable healthcare. Biocon invests heavily in R&D and is recognized as a top employer in biotech due to its supportive culture and track record of attracting talented scientists.
This document discusses performance-driven compensation as a talent insurance policy for companies. It argues that tightly linking employee and business performance to compensation helps mitigate the risk of losing top talent. Specifically:
- Pay for performance aims to reward employees based on their impact, but cultural and implementation barriers have made it difficult for many companies. Lack of integration between performance and compensation systems also hinders pay for performance.
- Top performers and high-potential employees are most critical to retain, yet only 19% of UK companies base bonuses directly on individual performance targets tied to business goals.
- Differentiated compensation that disproportionately rewards top performers can motivate them and lower turnover risks, but requires clear goals, performance assessments, and compensation
1. The survey found that employee engagement is the most important HR challenge facing organizations as human capital becomes critical to business success. Nearly half of respondents said engagement was a top challenge.
2. The survey results showed that employees are more motivated and perform better when rewarded with praise and prizes. Over 90% of respondents said positive feedback has a greater impact than negative feedback on performance. Most employees are more motivated by recognition that includes a reward.
3. While years-of-service awards are common, the survey found they are often one of the least effective types of recognition programs. Peer-to-peer recognition was seen as more effective by respondents.
For some time, HR professionals have aspired to create a “paperless office” with automated technology to create, store, and manage all of the employee information necessary to run a business effectively. Today the technology exists to turn this goal into reality with a desirable Return on Investment (ROI). Current business trends toward environmental sustainability provide the additional impetus to make the business case for paperless HR today, to help support the workforce of tomorrow.
Increasingly, reducing the use of paper in business processes will become a necessary step toward corporate sustainability efforts. Some global and regional companies are pushing sustainability initiatives not only within their own operations, but also out into the supply chain, encouraging vendors and partners to implement greener business practices. “Going green” is a competitive response to changes in social attitudes and to the expectations of customers, employees, and stakeholders.
Because of the many paper-intensive administrative processes in the Human Resources department, it is a great area to embrace corporate sustainability objectives by eliminating paper. Going paperless also saves costs and increases the efficiency and accuracy of HR functions. It can even help with recruiting and engagement—many sought-after job candidates and top-performing employees are passionate about environmental causes. This white paper provides information on the benefits of a paperless HR department and the technology for putting it in place.
Executives are striving to measure the impact of training programs on business performance, but many lack effective metrics. A McKinsey survey found that about half of respondents saw training as a top priority, but only a quarter described their programs as "very effective". The inability to define credible metrics to measure business impact is a growing challenge. Executives who prioritized training and said their programs were very effective were more likely to use qualitative and quantitative metrics and cooperation between HR and business units.
The document discusses the challenges senior executives face when leading large-scale organizational transformations. It notes that while executives typically focus on strategic and tactical plans, successfully implementing change also requires understanding an organization's culture, values, people and behaviors. The document then provides a 10-point framework for change management, emphasizing the importance of addressing the human aspects of change systematically and involving people at all levels of the organization.
A Guide To Implement Six Sigma In Your Processvenkatasirish
The document provides a guide for implementing Six Sigma in an organization. It identifies three key elements for successful implementation: organization, people, and process. For each element, it discusses important considerations such as organizational culture, employees' comfort with statistics, process complexity, and ensuring top management support. The document emphasizes that Six Sigma requires significant resources and changes to how work is approached, so organizations must prepare thoroughly before implementing it.
What is Six Sigma? - Donald P. Lynch, Ph.D.Melissa Paige
Download our free white paper by ISD instructor and Six Sigma Master Black Belt Don Lynch that answers the question "What is Six Sigma?" in terms that everyone can understand.
"One of the reasons it has been so difficult for
those not working in an organization that has
embraced Six Sigma to really understand it
is because Six Sigma means multiple things.
The term Six Sigma is used interchangeably to
reflect a vision, philosophy, commitment, goal,
level of performance, statistical measurement,
metric, benchmark, methodology, systematic
approach, set of statistical tools, and a vehicle
for customer focus, breakthrough improvement
and people involvement. These different
definitions can be summarized in three main
categories; Six Sigma the philosophy, Six Sigma
the metric and Six Sigma the methodology."
Has your company ever implemented a quality initiative that failed? Quality initiatives often are seen by executives
as a financial burden and by employees as a way to make them work harder. Is this true? How can organizations
benefit from implementing a quality initiative successfully and how can they do that? Which initiative has proven to
be successful when implemented correctly? Six Sigma!
This document discusses how integrating Six Sigma methodologies with business analysis can improve projects and offer additional tools for business analysts. It focuses on how Six Sigma techniques like process mapping, benchmarking, flow charts, Pareto analysis, and cause-and-effect diagrams can augment enterprise analysis and solution assessment/validation. The document also uses case studies of GM and Toyota to illustrate how Six Sigma principles could have helped identify issues. Key benefits identified are more accurate needs analysis, convincing business cases backed by data, and ensuring solutions deliver intended value through validation techniques like hypothesis testing and defect assessment.
The document discusses the benefits of Lean Six Sigma for employees. It notes that while top-down support is important for deployment, sustained success also depends on employee commitment. To gain employee buy-in, companies should define "WIIFE - What's In It For Employees" and identify change leaders to communicate benefits. Recognition for generating results and linking Lean Six Sigma to performance reviews can further motivate employees. The document also addresses challenges with low mix production models and potential future applications of Lean Six Sigma such as in marketing, accounting, education and addressing social and environmental issues.
This document provides background information on Six Sigma, including its origins at Motorola in the 1980s and evolution over time. It discusses key individuals and concepts that influenced Six Sigma, such as Walter Shewhart's development of statistical process control in the 1920s. The document also summarizes how several major companies, including GE and Honeywell, define Six Sigma for their employees. Overall, it presents Six Sigma as building on a history of quality improvement efforts and management techniques dating back over a century while also introducing new approaches to reducing defects and improving business performance.
eye4pharma article on content-collaborationMatt Portch
The document discusses the need for pharmaceutical companies to break down silos between different functions like sales, marketing, medical affairs, and legal/regulatory in order to better collaborate and drive value. It provides case studies of collaboration efforts at Pfizer, Merck, and GlaxoSmithKline. Key ingredients for successful collaboration include strong senior management buy-in, effective communication channels between functions, and a shared vision, while potential pitfalls include cultural tensions between sales and marketing teams and a lack of integrated data capabilities. The overall goal of collaboration is to help companies adapt to a changing healthcare landscape and remain partners with customers.
The document discusses Six Sigma, a data-driven approach to process improvement originally developed by Motorola in 1986. It aims to reduce defects in products and services by identifying and removing sources of errors and minimizing variability. The key aspects covered are:
- Six Sigma aims for 3.4 or fewer defects per million opportunities by driving processes to operate within 6 standard deviations of the mean.
- It uses methodologies like DMAIC (Define, Measure, Analyze, Improve, Control) to improve existing processes and DMADV (Define, Measure, Analyze, Design, Verify) for new processes.
- When implemented as a management system, Six Sigma helps align improvement efforts with business strategy to accelerate
The Success And Failure Of Implementing Six SigmaAngie Lee
The document discusses the history and role of Six Sigma and Lean in manufacturing. It explains that Six Sigma originated from efforts in the 1980s at Motorola to reduce defects in manufacturing processes. The concept aims to reduce variation and improve quality. Lean manufacturing also focuses on eliminating waste to improve efficiency. Together, Six Sigma and Lean aim to standardize processes, identify and remove sources of defects, and continuously improve manufacturing quality and efficiency. The document provides background on the individuals and theories that influenced the development of these process improvement methods.
This document provides an overview of the Six Sigma methodology. It defines Six Sigma as both a quality management methodology that uses tools and theories to improve processes and reduce defects, as well as a statistical concept where higher sigma levels result in fewer defects. The goal of Six Sigma is to achieve near-perfect processes with 3.4 defects per million opportunities. It explains that Six Sigma systematically identifies problems, reduces errors and waste, and improves processes to increase quality and customer satisfaction while decreasing costs.
Six Sigma is a set of techniques aimed at improving quality that was originally developed by Motorola in 1986. It focuses on customer requirements, process alignment, and timely execution to reduce defects. While initially focused only on manufacturing, Six Sigma has now expanded to be used as a general business methodology. It aims to delight customers and meet their expectations through techniques like Design for Six Sigma and the DMAIC process of define, measure, analyze, improve, and control. As awareness and use of Six Sigma grows, especially in small and medium businesses, it has the potential to be an effective quality management program for the long term.
Six Sigma is a set of techniques and tools used to improve processes and minimize defects. It was developed by Motorola in the 1980s and aims to reduce variation and errors through statistical analysis. The goal of Six Sigma is to achieve no more than 3.4 defects per million opportunities. It uses various quality management methods and statistical analysis to identify and remove sources of defects in processes. Six Sigma projects follow defined steps to achieve specific targets like reducing costs, increasing customer satisfaction and profits. It provides organizations with a framework and statistical tools to measure and analyze processes in order to improve quality, efficiency and reduce waste.
Six Sigma is a quality control program developed by Motorola in 1986 that aims for near perfection by striving to reduce defects to 3.4 per million opportunities. It uses a data-driven approach to eliminate defects in processes from manufacturing to services. Six Sigma has evolved from quality control to a general business management philosophy focused on meeting customer requirements. It provides tools to analyze processes, identify issues, and drive improvements. Major companies like GE, Microsoft, and Wipro have successfully implemented Six Sigma.
Six Sigma is a statistical methodology for improving quality and reducing defects. It aims for near perfect accuracy, with the goal of fewer than 3.4 defects per million opportunities. Six Sigma was introduced by Motorola in 1987 and uses a define-measure-analyze-improve-control methodology. It has been adopted by many companies and led to billions of dollars in savings at places like GE and Motorola through eliminating defects and improving processes.
Six Sigma is a methodology that uses statistical tools to improve process outputs and reduce defects. It aims to achieve near perfection by reducing process variation. The foundation of Six Sigma is statistics, using measures like standard deviation to quantify variation. Companies that implement Six Sigma company-wide, with training from top to bottom, tend to see the greatest benefits. Successful implementation requires the right people in leadership roles, including Champions, Master Black Belts, Black Belts, and Green Belts. These roles work together on projects using various statistical tools to identify and eliminate sources of process variation. An example project analyzed the computer order and shipping process to reduce customer complaints by tracing defects back to their root causes.
Developing global manufacturing operationscarolllee
Manufacturing companies are increasingly developing global operations to take advantage of lower costs, geographic locations, and resource availability. However, managing global manufacturing operations remains a significant challenge. This article explores 10 key issues, challenges, and potential solutions for multi-national manufacturing organizations operating globally, such as developing a clear management philosophy and organizational structure, implementing common global systems, facilitating collaborative operations, and focusing on brand management and process quality improvement initiatives.
Six Sigma is a data-driven methodology for eliminating defects in manufacturing and business processes. It aims to reduce variation and errors through statistical methods. Key aspects include defining critical quality attributes, measuring defects and process capability, analyzing sources of variation, improving processes through design changes, and controlling processes through statistical process control methods. The DMAIC and DMADV methodologies provide frameworks for improving existing processes and designing new defect-free processes. Six Sigma has been widely adopted by major companies and yielded significant cost savings and quality improvements.
Lean six sigma yellow belt 1 day seminar1Marysmith401
The Lean Six Sigma helps to improve the operational performance of employees so as an organization by reducing variances. This is widely recognized certification for quality management. The Lean Six Sigma credential can provide a significant advantage to employers and employees when it comes to performance and deliverance. A Lean Six Sigma Green Belt (LSSGB) offers understanding of the Lean Six Sigma Method within Define, Measure, Analyze, Improve and Control (DMAIC) phases defined by the IASSC Lean Six Sigma Green Belt Body of Knowledge™. On the other hand, Lean Six Sigma Black Belt (LSSBB) offers a thorough understanding of all aspects of the Lean and Six Sigma Method including a high-level of competence contained within the phases of DMAIC i.e. Define, Measure, Analyze, Improve and Control.On completion of Combo Lean Six Sigma Green Belt & Black Belt certification training, you will:
• Capable to utilize Lean concepts such as process mapping, 5S, waste reduction, value stream mapping and mistake proofing.
• Understanding on various levels to eliminate barriers and meet project success.
• Ability to perform basic and advanced statistical analysis to discover the relationship between key inputs and process outputs.
• Demonstrating projects to peers and managers.
• Ability to implement the concepts of Lean, Six Sigma DMAIC, Total Productive Maintenance (TPM) and Design for Six Sigma using statistical tools and analysis.
This Certification is Suitable for:Lean Six Sigma Green Belt & Black Belt is designed to meet the career requirements of professionals, including Senior Management, Software Professionals, Team leaders, Quality Assurance Engineers, Software Quality Assurance team members, Project Managers, Management students, etc.
Running head: SIX SIGMA 1
SIX SIGMA 8
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Six Sigma is a method that offers organizations tools for enhancing the capability of their business processes. When it comes to supply chain, it increases the performance and brings down process variation lead to improvement in quality of services and products, morale of workers, and profit. It also brings down defect reduction. Where a process is properly controlled in supply chain management, the commonly used term is Six Sigma quality. The purpose of this paper is to explain how Six Sigma works, its advantages and disadvantages, how it improves supply chain efficiency, and some companies that have implemented it.
How Six Sigma works
Due to the Six Sigma, systems are easily set up for improvement through the use of defined metrics for manufacturing and service. This makes it possible to determine and properly select the correct business project in line with business goals of an organization. Selecting and training the right individuals to occupy various positions in a company can be improved through the use of Six Sigma (Bozarth, Handfield, & Weiss, 2008). A supply chain management that has been improved will adhere to a disciplined process, which is defined by a system of four macro phases. The phases are measure, analyze, improve, and control (MAIC).
Measure phase – this phase measures the supply chain system that is in existence. Reliable and valid metrics for monitoring progress has to be established. The expectation of customers is established. The potential critical process or product has to be identified and described. Another thing that is needed is doing the measurement system analysis. This will relate to determining reproducibility, repeatability, accuracy, and precision of each and every instrument utilized in the process so as to make sure everything is capable.
Analyze phase - this phase entails examining the system with the goals of determining ways to do away with the gaps that is present between the desired goal and current performance of a process or system. The reason why defects are evident in the supply chain is determined during this phase. So as come up with potential variables, statistical analysis is used. The variables that are determined are those that impacts the outcome. Variables can easily tell the root cause of a problem (Christopher, & Rutherford, 2004). Developing a list of factors that can impact the desired outcome becomes easier here. Two things that should be done during this phase are isolating and verifying critical process and carry out studies relating to the measurement system.
Improve phase – this phase relates to seeking optimal solution as well as creating test plan regarding actions to be im ...
1. Six Sigma adds up for pharma
Companies look to the popular process to combat costs,
reduce time-to-market for drugs, and address inefficiencies
in manufacturing, sales, and R&D.
by Nick D'Amore
In the face of rising costs, longer waits for getting a drug to market, and increased competition,
pharmaceutical companies are starting to join other industries in subscribing to the tenets of Six
Sigma. Experts say using the tools of Six Sigma will allow companies to reduce the time needed to get
their drugs on store shelves and cut costs by eliminating variations in many processes and trimming
waste. These benefits come at a price, in cost and commitment. For pharmaceutical
companies to be truly successful within the Six Sigma model, the executives at the top of
the chain of command must take the lead and incorporate Six Sigma throughout all aspects
of their companies, in essence making a culture shift. Without the commitment and the
change in culture, experts say the training and the strategies will never reach their full
potential.
The tools of Six Sigma, Lean, and other continuous improvement methods work to streamline processes
and eliminate defects in those processes. In conjunction with those ideals, executives and managers work
to find areas throughout the company where continuous improvement can have an impact. Although
companies in other industries have sworn by such principles for decades, the pharmaceutical industry has
only recently embraced these concepts. Experts believe that the many varied challenges the industry faces
— pricing pressures, the time needed to get drugs on the market, individualized medicines — will force
many executives to implement Six Sigma in at least some aspects of their companies. The industry will no
longer be able to make up for inefficient and wasteful business practices with the same booming success
the industry had come to expect in the past.
The Medicare Modernization Act, which went into effect in January, may drive pharmaceutical companies to
the ideas of Six Sigma as generic drugs are expected to gain a stronger hold in the pharmaceutical market,
according to Sander Flaum, managing partner, Flaum Partners Inc. (flaumpartners.com). "People,
including myself, think that 60% to 80% of all drugs prescribed under the Medicare Modernization Act will
be generic," he says. "There will be more pressure on big and medium pharma to find a way to enhance
their bottom line. The easiest way to enhance the bottom line — at least in the short term, if the pipeline is
thin, and a lot of major drugs are going off-patent — is to bring Six Sigma in, in every department and
section of your firm."
In recent years, many major pharmaceutical companies have discovered the benefits of using the Six
Sigma principles to eliminate variables, defects, and inefficiencies in their business models. Most
companies using Six Sigma have done so only in the manufacturing capacity. Fewer companies are
applying the Six Sigma process to research and development, and even less are boldly applying the
concept in all areas. The companies who embrace the philosophy wholeheartedly will reap the most
rewards and achieve the most success, experts say.
Six Sigma seeks to eliminate process variance by relying on the analysis of data and the use of statistics.
For a process to be classified as Six Sigma, the process can only produce 3.4 defects per million
opportunities. The strategy took shape at Motorola in the 1980s and achieved popularity when
implemented by Jack Welch at General Electric while he was CEO. His book, The Way We Work, was cited
by many Six Sigma experts as the catalyst for the concept’s widespread use in many industries,
particularly manufacturing where the concept had first been implemented. Since that time, companies
have added and molded Six Sigma to suit their needs, incorporating Lean as well, which serves to
streamline business processes. Six Sigma is made up of two processes: DMAIC — define, measure,
analyze, improve, control — and DMADV — define, measure, analyze, design, verify.
2. Six Sigma ultimately allows executives to make the right decision for their individual companies, based on
data they can analyze. "You have the data to make the right decision, and the right decision might be, let’s
be inefficient," according to David Dilts, Ph.D., professor of operations management, Vanderbilt Owen
Graduate School of Management, and professor and director, management technology program, Vanderbilt
University School of Engineering.
Lean originated at Toyota and was detailed in the book, The Machine That Changed the World, by James P.
Womack, Daniel T. Jones, and Daniel Roos. Many companies combine the principles of Lean and Six Sigma
into a process called Lean Six Sigma or Lean Sigma. Lean is focused on streamlining processes and
eliminating the steps that add no value to the end result. Six Sigma provides companies with a philosophy
and a set of tools to implement the changes deemed necessary.
For Six Sigma to achieve its fullest potential, experts agree that there must be a commitment from the
highest levels of the organization on down. Implementing Six Sigma requires a change of culture within an
organization, as well as an intense focus on processes. Elliot Liu, Ph.D., professor, University of Phoenix
online campus, believes that Six Sigma is executive training education, and therefore, requires leadership
and commitment. "In absence of that, it will be just another quality initiative," he says.
According to Tom Connellan, former program director at Michigan Business School’s executive education
program, the leadership component of Six Sigma is its greatest asset. Companies that focus only on the
statistical analysis aspect will miss the primary benefits of the process. "A company that uses Six Sigma as
a strategic leadership tool is capitalizing on the full benefit of Six Sigma and they’ll reduce costs at the
same time," he says.
Without first addressing the culture of an organization before implementing Six Sigma, executives will not
get the high level of success they had hoped for, according to Eric Labe, senior VP, Thomas Group Inc.
Thomas Group (thomasgroup.com) helps businesses process improvements. Though company executives
know the issues facing their organizations, those issues often are not the root of the problem.
"The problem is that they cannot fix those problems because a good majority of them deal with culture,"
Mr. Labe told Med Ad News. "There are very few people that can go into their boss’ office and tell them
they’re doing their job wrong."
Executives must have a clear understanding of their business, their position in the industry, the challenges
the company faces, and strategies for the future, according to Blanton Godfrey, Ph.D., dean and Joseph D.
Moore professor, College of Textiles, North Carolina State University. In addition, executives need to
honestly define the company’s strengths and weaknesses, opportunities, and threats, and then have a
clear understanding of what issues need to be addressed first. "They need to have a clear map of what
they’re trying to accomplish," Dr. Godfrey says.
Having high-ranking executives lead the way in implementing Six Sigma will create an environment where
all areas and all employees are operating from a common ground. Bonnie Smith, managing director of
Lean Six Sigma, TBM Consulting Group, says many times continuous improvement falls into the hands of
a VP of manufacturing or operations, leaving other areas without leadership in implementing Six Sigma-
type processes. TBM Consulting helps companies use Lean Sigma to achieve efficiency and productivity. "In
companies that it’s being pushed down by the CEO, it’s being pushed down throughout the entire
organization," Ms. Smith says.
A cultural shift toward Six Sigma allows a company to tap into its most important asset: its employees. "A
question every senior executive should be asking themselves is, ‘How can I get people more engaged,’" Mr.
Connellan says. "Six Sigma, done properly, is an absolutely awesome way to get people engaged."
Having employees involved in the system will translate into a successful change of mind-set for the
company. "If people are rewarded appropriately for this kind of behavior, if they demonstrate business
results that are meaningful, those things will help with the culture," according to Tom Hodson, principal,
Deloitte.
Industry experts believe that although Six Sigma is extremely effective when used appropriately,
companies should not assume the process will fix every problem or correct every defect. Mr. Labe says Six
Sigma is merely one of many tools companies should use when looking at the way they do business. "You
must be very careful saying Six Sigma is the cure-all answer to all evils," he says. "If Six Sigma is the only
tool in our box, and that’s the hammer, then everything you come across sort of looks like a nail."
3. Although companies such as General Electric (ge.com) have been able to achieve results where their Black
Belts — people trained in Six Sigma who can train others — are saving the company about $500,000 per
person, many companies have not seen and may not see those results, and could get discouraged. "You
typically take your best people and make them your Black Belts, so you start questioning, ‘Am I getting the
returns that I thought I’d get by taking one of my best people out of their position and turning them into a
Black Belt agent Six Sigma?’" Mr. Labe says.
Mr. Labe believes that some pharmaceutical company executives are resistant about the investment
required in terms of training personnel in Six Sigma. "It’s a huge investment," he says. "It’s not
uncommon for [employees trained in Six Sigma] to then change their roles, and some companies are
apprehensive about doing that. Status quo is great."
Pharmaceutical companies have been slow to embrace Six Sigma for a variety of reasons, including the
fact that cost-cutting and eliminating process variance are only starting to be discussed within many
companies.
Some pharmaceutical companies struggle with the senior-level management commitment that is necessary
for Six Sigma to be effective, according to Gary Tyson, VP, clinical development practice, Campbell
Alliance (campbellalliance.com), a management-consulting company specializing in the pharmaceutical
and biotechnology industries.
"People at pharmaceutical companies did not grow up in a cost-containment mind-set," Mr. Tyson told Med
Ad News. "In other industries, manufacturers like Motorola have been dedicated for years to reducing the
cost of manufacturing an electronic component. Since that has not been the driver in pharma, finding
senior managers who feel strongly about Six Sigma can be difficult."
Every pharmaceutical company may not have the same opportunities in which to apply Six Sigma,
according to John Rhodes, global managing partner, life sciences, Deloitte (deloitte.com), a professional
services company providing audit, tax, consulting, and advisory services. "If you are more a specialty
company, like Roche, you do not have the same opportunities in sales force that you might in
manufacturing, which is what they’ve been focus on," Mr. Rhodes says.
The dynamics of the pharmaceutical industry in the past have not created an environment where there is
intense focus on trimming waste and reducing costs. Such concerns were often secondary to creating the
next big thing. According to Mr. Hodson, cost pressures and troublesome pipelines are changing priorities.
"The cost side of the equation is driving this," Mr. Hodson told Med Ad News. "When your livelihood and
your business model are based on innovation and new products, it’s not surprising that the cost side of the
equation is a little behind."
In addition, the pharmaceutical industry is only starting to experience the problems that have already
plagued other industries, such as the automotive industry, says Robert Blaha, president, Human Capital
Associates. Human Capital Associates (hca-leadership.com) uses Lean Six Sigma to improve
organizations.
"The need to get the waste out, improve the bottom line, and use state-of-the-art business acumen was a
little slower coming to pharma because pharma was from a curve ahead — from profits, from position,
from respectability — of general industry," Mr. Blaha says. "What has happened is pharma’s just now come
to the reality that you’ve got to run your businesses efficiently and effectively."
Mr. Connellan believes that when companies begin to see their competitors implementing Six Sigma and
succeeding, they will be more willing to incorporate the tools in their own organizations. He cites Valeant
Pharmaceuticals (valeant.com) as an example of a company taking the lead, implementing Six Sigma
intensely throughout the company. "When they start to see companies like Valeant improving their bottom
line, decreasing time-to-market, reducing contracting costs, reducing manufacturing costs, increasing
customer loyalty and support, and getting more OKs from formularies, these are the kinds of things that
will make people sit up and notice," Mr. Connellan says.
Pharmaceutical companies will not have blockbusters to fall back on as they have in the past, Dr. Dilts
says. He believes that the pharmaceutical industry is changing in ways that will not allow for one major
drug to mask fundamental problems in the business process. "As we go down the road of proteomics,
genomics, and individualized medicine, there’s going to be less chance of a blockbuster drug," he says.
"It’s going to now be more tailored to specific individuals. You better know how to be more efficient at
what you do."
4. companies are using Six Sigma to eliminate variances from routines as basic as processing invoices to
cutting out waste during research and development. A few of these companies are instituting the concepts
and principles in every aspect of the company. There are major opportunities in research and development
and clinical trials, but the number of companies engaging Six Sigma in those areas is not as widespread as
in manufacturing. "I generally see R&D as a tougher nut to crack," Ms. Smith says. "That group is far more
resistant to change than operations. Operations has been used to doing various types of programs."
Ms. Smith believes that Six Sigma should be initiated in manufacturing first because the changes in the
processes there will permeate the rest of the organization. She says research and development personnel
may be less open to change, especially if the implementation is not coming from the highest levels of
corporate governance. "They already have a process in place, and the perception is that process is already
working," Ms. Smith says. "In a lot of organizations where it’s driven by the VP of manufacturing, they are
not responsible for the R&D piece."
Ajit Gill, president and CEO of Nektar Therapeutics, believes that reducing error and variation from the
manufacturing process is vital for companies as FDA begins pushing companies to do just that. Nektar has
been using Six Sigma in many areas of the company. "What Six Sigma is trying to do is reduce the
variability in a process," Mr. Gill says. "If you think about it, what does the FDA ultimately want companies
to do? Reduce variability in the product. In that sense, isn’t this a fabulous tool for this industry and for us
to be adopting?"
Mr. Gill says Nektar is applying Six Sigma as the company develops the diabetes drug Exubera, which is
not only Nektar’s first product, but could be their biggest, in terms of volume. "We thought we had better
pay real attention to manufacturing, having far more robust manufacturing processes that one would
typically get in this business," he says.
Aside from manufacturing, Six Sigma can play a role in making the sales and marketing side more
efficient. Mr. Flaum says Six Sigma can be used to effectively assign and distribute sales representatives.
"Under Six Sigma, the name of the game is improving the bottom line by becoming more efficient and
getting errors out," he says. "Having too many sales reps certainly could be an error."
To that end, Six Sigma can be applied to educating sales representatives, seeing how they address
requests for information, execute contracts, and visit with customers, according to Mr. Hodson. He cites
Merck & Co. as an example of a major pharmaceutical company putting Six Sigma to work in an area
outside manufacturing or even research and development. Merck, he says, is looking to reduce by 50% the
amount of sales representatives promoting the same drug in the company. "[Merck has] taken these
principles and have applied them to sales rep space, and is looking at their mix of reps and what they’re
spending their time doing to drive efficiency in that area," Mr. Hodson says.
According to Mr. Hodson, many of the top pharmaceutical companies have taken the lead in implementing
Six Sigma ideals into their organization. "Eli Lilly, for example, had something like 160 projects," he says.
"They estimate $250 million in benefit."
Among the major companies using these processes in all or part of their organization are Abbott
Laboratories (abbott.com), Amgen Inc. (amgen.com), Bristol-Myers Squibb Co. (bms.com), Johnson &
Johnson (jnj.com), Eli Lilly and Co. (lilly.com), Merck (merck.com), Pfizer Inc. (pfizer.com), Schering-
Plough Corp. (schering-plough.com), and Wyeth (wyeth.com). "The larger firms where you have major
production output, you need to use it," Mr. Flaum says. "Any company that has not taken a look at how the
process works is behind the times because it is an incredible way to focus on heightening your efficiency."
pharmaceutical companies are hesitant about implementing Six Sigma because they do not want to
mechanize an industry where the drugs are unique and the patients are unique. Although he agrees with
this assumption, Dr. Dilts says there are still areas, particularly in R&D, where Six Sigma can be
successfully applied.
"If you are opening a Phase III clinical trial, you basically have to do the same steps that you have to do
for the opening of a Phase II clinical trial," he told Med Ad News. "There is a philosophical difference that,
particularly in the development area, people consider that an art form, and art forms do not lend
themselves to systemization."
According to Mr. Connellan, Six Sigma can be applied in a variety of areas of R&D, such as reducing the
time needed to recruit participants for clinical trials. "If you can shorten your time-to-market by 90 days,
that is a huge revenue impact," he says.
5. Dr. Dilts believes that implementing Six Sigma in R&D will allow researchers to discover more quickly
whether a drug will succeed, but Six Sigma does not have to hamper creativity. "You want the R&D people
to have the opportunity to try things," he says. "If you do Six Sigma right, one of the nice things you can
do is try little experiments."
Many experts believe that Six Sigma should be applied to all facets of a organization, as long as there is
data to be measured and analyzed. "Six Sigma was built around the idea that you’re going to have
thousands of instances, so you can catch the outliers over time," Mr. Tyson says. "There are areas of
pharma where it would make sense, and there are areas where other process-improvement approaches
are more applicable.
"Six Sigma works well — and all continuous-improvement methodologies work well — when there’s a lot of
something to measure. They work poorly when there are only a few instances of something to measure,
because you can’t see trends over time if you’re only doing something a few times a year, or even a dozen
times a year."
The pharmaceutical industry still has some catching up to do though, Mr. Blaha says. "There’s been a much
bigger appetite for it the last two or three years," he says. "But I don’t think that pharma is where general
industry is yet. There’s a lot of people who are doing projects, there’s a lot of people who have trained
some Black Belts, but not a lot of organizations that have taken a systemic approach to run their business
this way."
Increased innovation will be a by-product of more widespread use of Six Sigma, as companies seek to
stave off competition by addressing customer needs and creating products that serve unmet needs,
according to Leonard Hepp, Ph.D., director, process improvement/Six Sigma, Nektar (nektar.com). "It’s
going to force you to listen to customers and recognize that all products aren’t all things to all people," Dr.
Hepp says. "As you’re pushed more competitively, other values come that you have never thought about,
and that starts to transform an industry. It’s amazing how quickly you’ll see the companies change."
Six Sigma will spread to more areas within the companies that have already embraced the process, Dr.
Godfrey told Med Ad News. "It will continue to evolve, it will get re-translated," he says. "People will
rename some of the tools and modify them more to fit their type of business. Six Sigma is very hard to pin
down because what it is today is very different than what it was five years ago. It’s continuously evolving
as people copy the best practices from other companies."
According to Mr. Labe, the popularity of Six Sigma has already crested and he believes that companies will
start using the tools of Six Sigma more appropriately, and therefore, more effectively. Company managers
will begin exploring other avenues of continuous improvement, as well, he says. "When used appropriately,
it’s as good as it gets, but when used inappropriately, it doesn’t get the results that people were looking
for," Mr. Labe says.