Part 5 of our series on the 7 Common Mistakes Made with Lean or Six Sigma Initiatives. Click the link to see the rest of the list.
Can’t Find Those Improvement Savings in Your Bottom Line? You are not alone… To justify their existence many business improvement initiatives, especially Six Sigma initiatives, develop what can be elaborate systems for tracking ‘soft savings’. These soft savings are purported financial benefits from their projects, often supported by accounting, but that cannot be accounted for. Note: that should be a big clue…
There is a very simple word to describe these systems and this concept – WASTE. You need one metric to measure the financial impact of your business improvement initiatives and it is called ‘your bottom line’. Either you have the money in your bottom line that you expected, or you don’t. It really is that simple.
The resources spent estimating, tracking, reporting and analyzing this manure is insanity.
If you would like to learn more about how to correctly and accurately evaluate the impact of the business improvements efforts being performed in your business – contact us for a free consultation.
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