Increased Productivity and Short-Term vs. Long-Term Sigma

[johnaries]

When I was training as a Six Sigma Black Belt, one of the few concepts I had trouble grasping was “Short Term” and “Long Term” Sigma. Eventually, the light bulb lit up and this is the way I understand it:

The whole purpose of Six Sigma is to increase productivity in whatever process you are working with. Although 6 Sigma uses multiple methods to find the proper corrections, the only true test is Real World application. In other words, apply it and then measure it again to see if it really works! 6 Sigma strongly involves the front-line people. The important thing to remember is that anytime you try something “new” with input from the front-line, the front-line people are going to work harder to make sure it is successful. They may not even be conscious of this, they may even think they are working less. But they will be on their “best behavior” for any of a number of reasons. They will give 110% because they know they are under a microscope and the casual observer will immediately see increased productivity.

This is Short-Term Sigma (change).

However, this level of 110% is unsustainable over the long run. We are all human, and humans get tired. So, then, the front-line people fall back into a long-term sustainable level of productivity. Perhaps even less because they are tired. If your proposed changes were successful, then the level of productivity (although lower than when first implemented) is still higher than it was before the changes.

This is Long-Term Sigma (change).

Thanks for your patience so far. Now, I would like to relate this concept to recent changes in the Economy. Listen up, Employers!

When the economy first began to “tank”, Employers were forced to downsize because demand had lessened. The remaining employees “stepped-up” and gave 110% for several reasons - one of which was that they were scared for their jobs. As a result, US Employee productivity soared! Further, because more talented employees were on the market, a company could pick and choose among more talented and motivated (read “scared” and “desperate” ) applicants.

This is a Corporation’s dream! Increased employee productivity and increased quality of applicants equals lower costs and increased profits “on paper”. And that “paper” is the be-all and end-all of Corporations. So, the motivation for Corporations is NOT to end this Recession but to sustain it.

However, it’s only Short-Term Sigma. It is NOT sustainable.

Listen up, Employers!

Although I am a big proponent of automation, ultimately the object of automation is to make life easier and more efficient for Humans. You cannot remove the Human Element from business, no matter how good the automation element is. And all Employers have to remember that Humans are only Human and they get tired. When Humans get tired, they make mistakes.

Mistakes lowers Productivity.

Therefore, it’s time (actually, PAST time) for responsible Employers to take more responsibility for their Employees’ productivity and realize that it’s time to implement Long-Term sustainable policies.

Productivity levels were at an all-time high, but they are beginning to lower because your employees are tired. National reports may not reflect this, but if you peruse your own internal reports you will find this trend is beginning. I know you will find this is true if you know what to look for.

I know that most companies only look at the current quarter. In a way this is justified because the market is generally too volatile to predict much farther than that. However, in General terms it can be predicted. The successful company in the future is one that has both a short-term plan and a long-term plan. One that actually plans for future growth.

The Employer of the future allows for Long-Term Sigma. That Employer prepares for the future.

From an Employee point of view, the more Employers that recognize this truth the more will hire. This increases the flow of money to consumers which increases demand which increases the need for employment. Once started, it’s a cycle that feeds upon itself and continues to grow until it becomes unsustainable, itself. Which is where a responsible Government comes in.

But that’s another story……

[Terry_M]

1. You mean employees are not machines?

Pfffffffffffffffttttt. Yeah, right!

[johnaries]

2. LOL! They're just "treated" as machines.

Which is actually "bad business". If Employers are smart, they would recognize that People are People. But whoever accused businesses of being Smart?

[johnaries]

3. I should also mention that this emphasizes the importance of Unions.

Unions act as the "employee advocate". Some people denigrate Unions and consider Union Labor "lazy". But Unions actually increase Long-Term Productivity. By negotiating "break-time" Unions actually ensure that workers perform their best. By negotiating benefits, Unions actually ensure that workers are committed to long-term contracts and relationships.

And they actually impact non-Union businesses. There are many businesses that are scared to death of being Unionized. Therefore, they will develop Human Relations Departments with many benefits that they would not not offer if not for the threat of being Unionized. Granted, the loyalty of these HR Professionals is to the Company and not to the employee, but they must at least "appear" honest enough to stave off an employee revolt that would result in Unionization.

So, the power and influence of Union extends beyond Unions, themselves. And that is good for all Employees.

And although many Employers still refuse to believe this, what is good for the Employees is good for the Company. Because the success of the Company ultimately depends on the quality and "buy-in" of it's Employees.