News source: People Management

Using a Six Sigma approach makes performance management less onerous
Michael M Grant Issue date: 01 September 2005Source: People Management magazine
Page: 56

Isn't it odd that organisations successfully using the Six Sigma approach to manage the quality of outputs find performance management such a challenging and painful process? Often perceived as a dreaded once-a-year process, most managers rush through it as quickly as possible. If we tried to apply Six Sigma in this way, it would be chaos.



Six Sigma follows five well-known steps: define the process to be improved or controlled; measure the performance of the process; analyse the data collected; improve the process on the analysis; and control the process at near-zero error/defect rates.

The steps in managing performance are no different. The organisation's strategic goals are cascaded down and "smart" objectives – specific, measurable, attainable, relevant and time-bound – are defined with the employee (step one). This includes agreeing on how the objectives align with the organisation's strategic goals.

When measuring performance (step two), it helps to break down competencies into their components. Teamwork could be measured if "smart" objectives were related to areas such as timekeeping and generating ideas. The measures might not be as tight as a Six Sigma control chart, but it is better than leaving important competencies unmeasured.

Analysis of the data (step three) can occur even in informal conversations. Simply asking: "How are you doing now with your objective – what do the measures indicate?" is a good check. Coaching and developmental opportunities can be provided to help the employee improve (step four). Engaging in these efforts can become part of the objective and assessed to provide data for the next performance discussion.

Once performance improvements are made, they need to be maintained (step five). Reward is a powerful way to reinforce good performance.

Using a Six Sigma approach makes performance management less onerous and helps to achieve its real purpose: realisation of the organisation's strategic goals.