Compensation and Six Sigma Black Belts
One of the more ambiguous elements of a Six Sigma project is the level and type of compensation the organization should give to its Six Sigma leaders and team members. On the one hand, setting compensation is not an integral part of any stage of a Six Sigma project; on the other hand, compensation is an important instrument to build loyalty and a sense of accomplishment that is a crucial element to the organization's Six Sigma success. While there are no hard and fast rules for compensation for Six Sigma leaders and team members, there are some good ways to think about how to productively provide compensation to your people.
Black Belts are the key change agents for the Six Sigma process. They have an important role and should be compensated accordingly. If your organization is large enough to have people dedicated full-time to leading Six Sigma projects, their base pay should be in the top of your organization's range for their level of management. If your organization is asking a manager to also devote part of his or her time to leading a Six Sigma project, you need to find some way to compensate them for their extra efforts. In addition to base pay, you can find creative ways for recognition for completed projects. Black Belts should receive some special and public recognition for their efforts, whether it is dinners, award ceremonies, plaques, etc. Whatever fits best with your organizational culture. Such recognitions should not be strictly limited to Black Belts either, as acknowledging the achievements of all who participated in and benefit from the Six Sigma project should receive some sort of recognition to boost morale.
Monetary bonuses are another way to compensate people for successful Six Sigma projects. Since Six Sigma projects are about helping the organization make more money it makes sense to share some of the cost savings from Six Sigma projects with the Six Sigma team. Develop a structured, team-based process improvement bonus system that will appropriately benefit each worker in the organization. As measurable and lasting improvements are made to processes, it is appropriate to share a part of the financial gains with employees. Just be sure there is a formal performance appraisal system that will identify what is to be accomplished, what success looks and feels like, and how an employee will be compensated, and that this is fully communicated to everyone. Such an organizational goal-sharing program will effectively support Six Sigma efforts. Being able to link compensation to Six Sigma implementation is much easier in a small company compared to a larger company.
Bonuses can also be paid to Black Belts, but with differences due to their unique status. Instead of paying bonuses to Black Belts as a share of actual process improvement, pay them bonuses related to specific project goals. There is a danger in directly tying their bonus with a share of the actual improvements as they may be motivated to inflate or misconstrue actual gains. That still leaves you with many concrete project milestones that can be the basis for their compensation. Peter Peterka is President of Six Sigma.US. For additional information on Six Sigma Black Belt or other Six Sigma Certification programs contact Peter Peterka at
http://www.6sigma.us
Related News
|
 |
|
|
RELATED ARTICLES
Creating a Team Working Environment
TEAM DECISION MAKING: Managers who invite participation believe that people directly affected by a decision should be involved in making that decision. The effort is toward joint, cooperative decision making. The aim is to give employees a chance to have a say about things that affect them. This means giving them more control over their own work and giving up some of your own power and control.
Successful Managing Through Delegation
Managers should avoid the tendency to constantly delegate to the same one or two capable individuals. This practice only overloads the best personnel while slighting all others.
Conflict Resolution Training- When Personal Safety is an Issue
Conflict generally arises by having your needs, desires, perceptions and values challenged.
Bringing Ideas to Life: Seven Principles for Pulling Together
You're so excited you're practically bouncing off the walls. This idea-your best ever-is not only going to save the company tens of thousands of dollars this year, it's eventually going to be a moneymaker. However, following your presentation, your three colleagues sit staring at you like 'hear no evil,' 'see no evil' and 'speak no evil.' You stare back at them in idiotic wonder: Why don't they want what you want-especially when it's so clearly the best thing for the company?
Creativity and Innovation Management - Core Competencies and Competitive Advantage
Following is a brief definition of core competencies and competitive advantage and their fit with creativity and innovation management.
How To Learn Great Management from Our Kids
Learning comes from many places. And one of the most wondrous opportunities is right in front of us. At dinner, at play and at bedtime, every evening. It is there on the sports field, on vacation and during homework. Our children have clues we can use in our business and organisation, right away..
Manage Your Time - Save Your Business.
If you work from home, chances are you already know that you're really pulling "double duty". You probably work on your business while doing the laundry, corralling the kids, or fixing dinner... and let's not forget all the phone calls from family and friends expecting you to run errands or just "go out" for an afternoon of fun.
Why Training Fails
Sometimes when I conduct my workshop on Effective Meetings, one of the
participants will ask, "Where's my boss?"
Magnificent Meetings - 5 Tips for Success
Your impact at meetings will determine in a big way how well you
do in your career. In other words you will rise as high as your
communication skills will let you. Ability and competence in your
position is expected - how well you get your point accross will
make the difference between your opinion being valued and your
input getting forgotten one more time.
The Role of the Machine Metaphor in Mixed-initiative Organizational Leadership
"Can This Marriage be Saved?" So reads the title of the cover story in the August 15, 2005 issue of BusinessWeek (www.businessweek.com). The article describes the seven-year (1998-2005) story of the merger of Daimler and Chrysler Corporation. As of this writing, the board of the merged companies decided to terminate the reign of the current chairman, Jürgen Schrempp. At the end of this year he will be replaced with Dieter Zetsche, the current head of the company's operations in North America. The article identifies the following five critical challenges facing the new chairman:
Problem-Solving Success Tip: Look For Sponsors And Solution Owners
Look for sponsors and solution owners rather than problem owners.
Choosing the Right Corporate Training
According to a Gallup Poll, 80 percent of employees said the availability of company-sponsored training programs was a factor in deciding whether to accept a new job or stick with a current one. And yet the Bureau of Labor Statistics says that the average number of hours of formal training per employee per year is only 10.7.
Selecting a Business Broker or Intermediary to Help You Sell Your Business
As crazy as it seems, some people spend more time choosing a coffee machine than they do selecting the business broker or intermediary that will sell their business. This can be a fatal mistake that can cost time, money, and sometimes the ability to sell the business at all.
He Hate Me: Turning Their Bad Attitude Into Your Great Results
"He Hate Me" was the nickname of Rod Smart, a leading rusher in 2002 for the Las Vegas Outlaws of the now defunct XFL pro football league. Looking for an edge, the XFL allowed players to put nicknames on their uniforms. "I was always saying, 'he hate me,' all through camp in Vegas," Smart said. "If I didn't get the ball, I'd talk to the other running backs and say, 'he hate me, man; this coach hate me.' I was always saying that." Smart put He Hate Me on the back of his number 32 jersey, and now the name lives in lore even though XFL has been out of business for years.
How To Conduct Effective Meetings
Before you call your next meeting, the FIRST step is to decide if it is really essential. To determine that, ask yourself the following:
Getting to Consensus
The need to get people in an organization to pull together comes out often in discussions about communication.
Preparing a Budget
Ok, you say, I know I need a budget, but how do I prepare one? The most common budget period is one year, but this can vary depending on whether or not your business has seasonal or cyclical fluctuations. For example if you run a Christmas decorations shop, or a costume shop your business is going to peak during certain times of the year.
Unravelling the Data Mining Mystery - The Key to Dramatically Higher Profits
Data mining is the art of extracting nuggets of gold from a set of seeminngly meaningless and random data. For the web, this data can be in the form of your server hit log, a database of visitors to your website or customers that have actually purchased from your web site at one time or another.
Hire People For What They Do Best
I recently flew from Seattle to Atlanta, I realized, just as we began our taxi, that it takes hundreds of support personnel to maintain a flight. I saw the woman at the check-in desk, security, pilots, luggage handlers, flight crews, air controllers, and the various staff physically on the tarmac doing whatever people do on an airport tarmac.
How Can A Communications Audit Help You?
Organizations communicate in two directions: internally to staff and externally to clients, customers, shareholders, stakeholders, the media. Faulty internal communications can lead to mistakes, discouraged and unhappy staff, employees leaving the company. Poor external communications can jeopardize image and sales. It really is that simple. Any overall management strategy needs a communications plan or the whole operation might fail.
|