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Metrics, Six Sigma, And Improved ROI

Dec 2, 2007
Six Sigma and other related process improvement methodologies not only focus on measuring site activities, but also with understanding these variables that affects metrics. By understanding these metrics, we can control and influences that have the greatest effect on the bottom line.

For picking out the most important variable, let's look at the 'The law of the vital few', which states that a small number of variables are behind a majority of the effects. For instance, 80% of total revenues is generated by just 20% of sales personnel. Similarly, out of hundreds and thousands of variables, presumably only 20-25 must be relevant and have the greatest effect on the outcome. Within this smaller group, the variables can be ranked according to their impact. The variables that are important should be manipulated first.

Six Sigma realizes the need to narrow down the important variables and then manipulate them. Therefore, it has introduced a framework that helps to determine and prioritize those that are mission critical. Six Sigma can be implemented during any problem phase of a business, where the problem can impact customer's perception of quality. It is noteworthy that most failures in converting a customer into a lead, sale, subscription or registration occur due to tainted perception of the customer, including lack of value, trust, security and confidence.

Six Sigma An Influential Tool For Improving Sale And Customer Satisfaction

Six Sigma is an ideal solution for just about every business environment, particularly in a service environment. It reduces defects to 3.4 in a million occurences, which means an accuracy of 99.997% in sales or process to which it is applied. Most of the people do not believe this, but it is true. In the case of a website, Six Sigma focuses just on improvements by directing search engine traffic to more specific key terms or optimized landing pages, thus helping customers to find what they are looking for in a faster, effective and more user-friendly way.

The Intellect Of Six Sigma

Six Sigma helps business personnel to first uncover the critical issues and then understand how well they are performing to meet those critical needs. And finally, it helps to leverage the facts and data against the process to drive home improvement.

Businesses having a Six Sigma mindset deliver projects on time and well within budget. They can deliver on time because they employ the right people, a clear charter and follow a structured process. The projects are within the budget because Six Sigma prohibits wasting resources unnecessary and finally they deliver it on purpose, meaning they accomplish the stated goals.

However methodology-improvement processes like Six Sigma demand that while implementing them, creative tension should be overcome. There is an ongoing debate about the role of metrics, especially in website development and marketing. It is imperative that a business tracks its work and data meticulously because not only will it demonstrate success, but will also help to build a new strategy, if required, to manage the process better.

Contemplate Small To Achieve Big

Use metrics optimally to achieve understanding, improvement and control of the underlying variables. Don't let the numbers confuse you. Every new strategy is an alien experience in the beginning, but over a period of time, an understanding is developed, bringing out only the best in the business.
About the Author
Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.
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