For Organizational Effectiveness, Look to HPI

Author: Valentina Paronetto Image created by the author In the 1980s, Motorola Inc. was threatened by Japanese competition, and customers were unhappy with the low quality of products. This pressure led the company to take action to improve processes. In 1986, Bill Smith, an engineer at Motorola Inc., developed a data-driven quality-control method called Six Sigma which relies on five phases: define, measure, analyze, improve, and control. The company’s desired efficiency level was to produce less than 3.4 defective products per million units, and Six Sigma was the mechanism to achieve this performance goal. After implementing Six Sigma, Motorola improved its quality and has saved more than $16 billion in twelve years, and its success encouraged thousands of organizations worldwide to move in this direction. Motorola was one of the first companies to drive performance improvement through a systematic approach , which led the company to produce the cultural and operative change n...