Six Sigma Black or Green Belt. Which One Suits You?

Six Sigma Black or Green Belt?

“Without us, you won’t have any sales to boast of”, said the sales person.

“Without us, you won’t have any product to sell”, said the marketing person.

While the sales and marketing functions are intertwined, they operate in their own universe of theory and practice. Whether or not one is more indispensable than the other is not the issue. What’s important is that sales and marketing personnel understand their responsibilities and support each other so that those responsibilities can be executed flawlessly.

What precedes flawless execution? Clear definition of objectives, for one. Resources are another. We’ll throw in guidance and supervision as a third requirement. The question now is, where does one get that guidance and supervision?

Before we answer that question, let’s look at a hypothetical situation.

Company X is a distributor of semiconductors. They have a 150-man product marketing department that oversees supplier relationships, allocation schedules, inventory, and price fixing. Based on past records and current market conditions for any given component, they decide how much to order from a supplier, how much of that is to be released for sale and how much is to be kept on the shelf. They are also responsible for arranging delivery dates, product sourcing and negotiating relationships with suppliers and customers.

The company also has a sales department. Each sales person is assigned anywhere from 10 to 30 accounts. They are supposed to make cold calls, do business trips, and liaise with product marketing to see if some components can be taken off the “hold shelf” and sold.

Black Belts:

How can black belts help company X strengthen its sales and marketing departments?

Some considerations should include:

• A technical background – this will help them understand Six Sigma statistical techniques that can be applied in the sales and marketing functions
• Completion of training – for black belts to make any worthwhile contribution, they should complete a company-approved and company-sponsored training program exclusively dedicated to Six Sigma process philosophies, tools and methods
• A history of producing – black belts must have an outstanding high performance record and must demonstrate their promotability potential to higher, more demanding responsibilities

These minimum qualifications will enable black belts to forge supplier relationships, negotiate better delivery times, spin off inventory with excellent market timing, and determine price structures that will generate profits for the company.

Here’s a specific example: A product marketing manager in charge of resistors is having issues with one supplier. The supplier refuses to renew the distribution agreement because the supplier says that the company’s projections don’t match actual sales. The supplier’s argument was, “why should we believe you when you say you can sell 1.2 million pieces next year when you sold only 45% of our product last year?”

The Black Belt can step in and explain the 45% figure, why he thinks the situation will improve next year, and what the market would be prepared to pay for resistors in the next 12 months. He can produce percentages of how cold calls by the sales department led to closing of deals and a list of new customers who would potentially be interested in bulk orders for resistors.

Green Belts:

Green belts must demonstrate:

• Some degree of competency in Six Sigma tools and how they can be applied to specific processes
• Commitment, motivation and speed in executing process changes
• Provides support to Black Belts in times of need
• Constantly be on the lookout for areas that can be improved

Taking the same situation above of the reluctant supplier, what can a green belt contribute to the effort?

A Green Belt will carry out thorough research on resistors: who’s hoarding, who’s buying and at what price, shortages, supply and demand. He can also speak to sales persons who have booked volume orders for resistors to find out how resistors can be marketed and sold more efficiently. He can conduct studies on who is making the best resistors and which brands are frequently returned.

Some or part of the information gathered by green belts can be shared with black belts so that the black belts can have an intelligent conversation with the supplier. One argument that can be raised is, “could it be that the resistors you delivered to us last year were defective? Our merchandise return division said that among the five resistors we distribute, yours had the highest rate of return. Perhaps that would explain the 45% weak sales?” Black belts must have the “smarts” to know that it doesn’t end there. A clever black belt will convince the supplier that next year promises to be a better market for resistors and explains why, in very concrete terms and backed by solid data.

Learn more information about 6Sigma.com’s Lean Six Sigma training coursework, available as classroom, onsite, or online options.