The most successful companies of the future will use Lean and Six Sigma to gain a strategic and competitive advantage. CGN & Associates is helping global organisations get ahead of the curve by working with them to create a strategic framework in which to implement these tools and drive transformational change to achieve dramatic and sustainable benefits.

1. LEAN & SIX SIGMA 15
SponSored FeATUre
Turning market complexity and uncertainty into
competitive advantage
The most successful companies of the future will use Lean and
Six Sigma to gain a strategic and competitive advantage. CGN
& Associates is helping global organisations get ahead of the
curve by working with them to create a strategic framework
in which to implement these tools and drive transformational
change to achieve dramatic and sustainable benefits
G
lobalisation has had long-term competitive advantage.
a dramatic impact on Lean and Six Sigma give companies
every large company in the tools to solve operational prob-
the last decade. Mar- lems and create alignment with the
ket globalisation is a double-edged business and customer.
sword. On one hand, it opens the Lean and Six Sigma alone are not
door to opportunities through new good at fully recognizing and driv-
market segments, customers and ing strategic change. Rather, or-
global capacity. On the other hand, it ganizations must design a strategic
also opens the door to new competi- framework to operate within. They
tors who may have been operating in can then use Lean and Six Sigma
these markets for years, are intimately tools to empower the organization,
familiar with market needs or oper- drive innovation and creativity, and
ate with a lower cost structure. align operational metrics to op-
The complex global economy re- timise business performance and
quires companies to contend with customer satisfaction.
new market forces and operational CGN & Associates works with
issues. Organisations must extend many global companies that are
their operational reach and supply implementing Lean and Six Sigma
chains to deliver products and serv- initiatives. The most successful com-
ices into the hands of new customers panies retain focus on the following
whose needs are unique. They have key tenets throughout deployment: Companies can
to battle new competitors with new • They meet and respond to chang- use Lean and Six
thinking, new technology, low-cost ing customer needs; Sigma tools to navigate
operations, distinct cost models and • They work to minimise and re- and succeed in a complex,
strategic pricing. Companies must duce structural costs; global marketplace
also deal with volatility in currency, • They constantly evaluate and
commodity prices and market de- evolve their business model to alignment and feedback. Without such esses to increase the effectiveness of DRIVING SUCCESS IN THE
mand, which are often exacerbated maintain operational and com- a governance framework in place, com- their investments, while driving down NEW NORMAL
by geopolitical factors. Together petitive sustainability; panies cannot link individual initiatives cost and capital investment require- Given its deep expertise in Lean and
these drivers exponentially escalate • They proactively manage risk and with other opportunities in the value- ments, and increase the company’s Six Sigma principles and practices,
operational complexity. This is part market volatility. chain, resulting in short-lived benefits ability to respond to customer needs CGN & Associates is uniquely posi-
of the new normal and companies that are not sustainable over time. quicker than its competitors. tioned to help companies turn global
need to find ways to adapt. market complexity and uncertainty
To compete in this new world re-
quires companies to be not only op-
Incorporating both CREATING COMPETITIVE
ADVANTAGE
BEST PRACTICES
There are many important lessons
into a source of competitive advan-
tage by helping them define areas
erationally efficient and effective but
also agile and flexible in responding
operational excellence CGN & Associates has a unique
methodology and approach that
that can be leveraged from leading
companies that have deployed Lean
where agility is needed in the busi-
ness and helping design flexibility
to market shifts. Executives must
identify primary sources of uncer-
and flexibility into the helps companies identify and create a
competitive advantage by leveraging
and Six Sigma initiatives success-
fully. Best practices include:
into core functions of the company.
CGN works collaboratively with
tainty and carefully design flexibility
into core business functions such as
business architecture their Lean and Six Sigma efforts. They
collaborate with senior executives and
• Identify the long-term project
goals and track your successes
companies to define a strategic
framework and implement chang-
manufacturing operations and sup-
ply chains. Incorporating both oper-
is critical for achieving leadership teams to identify existing
capabilities, competencies and levers
along the way;
• Develop a structured strategic
es and initiatives in areas such as
sourcing, product design, supply
ational excellence and flexibility into
the business architecture is critical for
sustained success for short-term benefits, and develop a
recipe for long-term success. Dimen-
framework and drive innovation
within the framework. Innovation
chain, procurement and manufac-
turing. CGN provides executives
achieving sustained success. sions for differentiation are identified ultimately drives change; with valuable, outside perspective
Lean and Six Sigma provide an In addition, the most successful by taking markets, customers, prod- • Generate positive cash flow with to identify key business levers, and
excellent framework for adapta- companies use a three-step process ucts, and supply chain and distribu- the Lean and Six Sigma process to serves as a catalyst for change to
tion with their underlying science to identify, prioritise and deploy their tion challenges into account. ensure project continuation and drive and accelerate strategic align-
and toolbox. They are effective for Lean and Six Sigma initiatives. First, A catalyst for change, CGN drives sustainability; ment, thinking and innovation.
unleashing problem-solving and they assess the overall competitive en- new thinking from the top-down into • Provide positive reinforcement
innovation within the enterprise. vironment to understand and define all levels of the organisation, helping and create a deliberate persever- www.cgn.net
To be effective, however, Lean and critical levers for success, allowing implement strategic plans and acceler- ance culture to sustain change; Seshadri Guha, Founder and
Six Sigma need to be guided by a them to create a recipe for increased ating the transformation. CGN identi- • Define a new way of doing busi- Managing Partner
deliberate strategy and focused on competitiveness and differentiation. fies specific, focused areas within busi- ness and compete within the stra- sguha@cgn.net +1 309 472 4482
targeted transformation. Second, they appoint a senior ex- nesses to target support and minimise tegic framework; Amit Gupta, Managing Partner
ecutive to drive transformation and risk. They become an integral partner • Seek help from an external catalyst amit.gupta@cgn.net +1 847 274 4533
IMPERATIVES FOR unleash the organisation’s innova- in the transformation process and val- and senior-leader sponsorship to
LEAN AND SIX SIGMA tion and creative powers to create uable part of the company eco-system. sustain the effort;
SUCCESS alignment between operational, For example, CGN recently worked • Drive transformation, flexibility
The fundamental challenge faced by strategic and financial metrics. with a telecommunications infrastruc- and innovation within the organi-
organisations is the need to obtain Finally, they create an ongoing ture company to define the underlying zation. All three are needed for the
immediate tactical and operational governance framework that enables levers and critical processes for scaling effort to accomplish its goals and
benefits while creating a sustainable, ongoing performance measurement, their investments, execute these proc- to be sustainable.