Financial Impact Analysis of Lean Six Sigma Projects

The analysis of Lean Six Sigma (LSS) projects from a financial perspective does some very important things.  First, Financial Impact Analysis (FIA) is a tool that allows executives and managers to examine the financial impacts of proposed projects prior to dedicating valuable resources, helping to make valid justifications and decisions for those projects.  Second, FIA monitors and reports ongoing improvement processes in tracking true, actual, savings and revenue impacts to specific areas. Further, particularly during lean times, FIA can...

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Metrics and Development in the Non-Profit

Development or fundraising, however it may be called, is a major concern to non-profits. Funding is needed to support programs and the infrastructure that makes the non-profits’ programs possible.  Estimates for the cost of bringing in $1.00 of funding range from $0.05 to $1.50.  The cost of online fundraising may include processing fees, which range between 3% and 7.5% of the gift plus the expense of setting up the online donation system itself.1 Along with the cost of development, non-profits are also concerned with maintaining the...

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Change Management Lessons from a Caveman

Have you ever wondered what the oldest tool is in your lean six sigma toolbox?   Some argue that Dr. John Snow’s map, which helped end the cholera epidemic of London in the mid-1800’s, was one of the first uses of a concentration diagram.   Karl Pearson gave us the standard deviation around 1893.  Walter Shewhart drew the first control chart in 1924.  In 1977, as John Travolta was strutting about in white polyester, John Tukey was working hard at Bell Labs to bring us the box plot.  So some tools are old, others relatively new.  I...

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Six Foundational Capabilities for Leadership in a Lean Transformation

One of the most important parts of a Lean or Operational Excellence business transformation is the implementation of an aggressive continuous improvement system and culture.  This requires a series of critically important management capabilities that, in theory, may seem obvious and simple, but too few organizations are truly effective at applying these skills in a rigorous and consistent way across the breadth and depth of their management team. These critical management capabilities form the backbone of management’s responsibility to...

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Lean Accounting for a Lean Organization

Traditional use of accounting systems has been to… account.  Essentially, accounting tools collect, manage and track financials, assets, inventory, and so on.  But there’s a growing opportunity to mine accounting’s data for areas of improvement, for areas of prioritization, and to expose the resultant success or lack thereof.  In other words, we can leverage accounting as a decision-making tool and as an expository mechanism regarding adjustments and progressions for the organization’s benefit. This is where Lean accounting comes...

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