Technology is advancing at a rapid pace and is increasingly becoming more affordable for everyone. Small businesses often work at shoestring budgets, but this does not mean they cannot take advantage of cutting-edge technologies like Artificial Intelligence (AI). In this article, we shall discuss how AI can transform businesses and how small businesses can use this technology to their advantage.

AI and Small Businesses

AI can handle repetitive tasks well, which frees human operators to handle more complex and challenging tasks. It helps businesses save time and money as AI handles data collection, marketing, and managing customer service.

AI can capture and analyze customer data, which can then be used by businesses to personalize offers and recommendations for customers. 

It also increases efficiency while cutting down costs. AI can handle and automate time-consuming tasks, which helps business owners focus on other important projects, which directly bolsters productivity. 

AI also provides businesses with unique competitive advantages. It helps businesses provide better experiences to their customers and offer products and services at a reduced price. 

How Small Businesses Can Use AI

AI is a double-edged sword, like most technologies. It is important to use it ethically without promoting bias and discrimination.

Businesses can leverage AI in several ways. To simplify and quicken customer service and inquiries, you could create AI-powered chatbots which handle communications and guide customers in the right direction. 

AI can also help businesses identify instances of fraud, which can otherwise be costly. The technology analyzes financial transactions and can detect fraudulent activities. This helps businesses stay away from malicious players.

Predictive analytics tools can be used to determine future trends and prepare accordingly. This helps businesses develop their products and services in the right direction and make optimal investments and resource allocations.

HR software that are powered by AI can automate onboarding tasks and employee engagement. This helps businesses use their human resources more efficiently.

CRM (Customer Relationship Management) tools provide actionable insights about customer behavior. AI can take on CRM tasks with ease, which helps businesses create products that are in accordance with the needs and requirements of their customers, thereby increasing brand loyalty.

Marketing automation is another area small businesses can harness the power of AI. There are tools to handle tasks like lead generation, social media management, and email marketing.

Embrace AI for Higher Customer Satisfaction

We live in a highly dynamic and complex world where technology evolves every single day. This is where AI comes into the picture as it simplifies operations. Most small businesses overlook AI as an expensive way to automate tasks. On the contrary, AI servers businesses of all scales be they Fortune 500 enterprises or startups. 

AI automates critical tasks, freeing businesses to focus on more creative endeavors that need human intervention. AI can take on increasingly sophisticated tasks including social media management, accounting, and recruitment. 

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The concept of lean startups places importance on delivering the greatest possible customer value without engaging in elaborate planning. While several businesses face challenges and fail, lean startups are more resilient and more flexible, as they’re not restricted by a rigid business plan. 

Businesses of any scale can embrace lean startup principles to create products that are actually needed by customers, as the latter will be willing to pay a price for something they really need. This also helps establish brand loyalty in the long term which contributes to greater customer lifetime value.

What is Lean Methodology?

Lean is a process improvement methodology that aims to fix waste in production to improve efficiency, productivity, and customer satisfaction. Waste is anything that doesn’t contribute any value to customers and includes delays, waiting times, switching times, defects, production issues, etc

Lean traces its roots to the 1960s when it originated in the manufacturing sector. The approach puts all emphasis on processes and focuses on continuous improvement. It is highly customer-centric.

When wastes are removed from processes, what remains are value-adding processes. Lean minimizes inventory management costs with a pull system, where goods are only created when there’s a demand for them. This helps manage overproduction.

How Startups Can Become Lean?

Startups that aim to embrace lean should focus on continuous improvement. It is crucial to create ways to obtain continuous feedback from your customers and use it to shape your goods and services in a way that adds more value to customers.

It’s a great idea to involve customers in product design cycles so that the final product already has an established demand in the market. Constant product improvement helps startups differentiate themselves from their competitors as well while enjoying greater business efficiency at reduced costs.

Since customer needs are incorporated into the product at early stages, products are much more likely to succeed.

The Era of Lean Startups

Lean startup is actually an innovative methodology that emphasizes experimentation to create minimum viable products. Lean startups use the lean methodology to create rapid product delivery cycles for customers. This helps reduce market risks and immediately cuts down on overproduction and inventory management losses. 

Companies should strive to cut down on waste, which are process inefficiencies that don’t address customer pain points. 

Since customers are involved from the beginning itself, lean startups will address customer requirements in a better way and face fewer losses. 

Brands that attempt to launch new products and services should use the lean startup approach to increase their chances of success.

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If you’re a freelancer, your client is the person who gives you projects. Whether you’re a virtual assistant or a developer, those who contract or subcontract work to you are your clients.

Clients are critical to a freelancer’s business. They have specific needs, and it is your responsibility to find out what your clients’ needs are.

Types of Customers

External: These are individuals who pay for your product or services and who are outside of your business.
Internal: These are colleagues; for freelancers, it would be a business that uses your services on an ongoing basis. They could be a small business that subcontracts work to you.
Regulatory: Any government agency that has specific standards. It is up to you to make sure you abide by those standards.

Sources for Voice of the Customer Feedback

Internal and External Data: Existing data, like product returns, or any company information; perhaps industry experts, competitors or any other data.
Research Methods: Conduct interviews, surveys or focus groups.
Listening to Others: Any customer feedback or observations.

For freelancers, gathering voice of the customer feedback from clients may be a bit more casual, but just as important. While a regular business follows a protocol to gather feedback, and uses set sources to obtain what that business (aka your customer) expects from you, freelancers need to pay close attention to those colleagues and individuals who send work. Treat all your customers like gold, because they are. They are the reason you have a business.

Want to learn more about the VOC tool in Six Sigma? For more information on our courses or services, please visit 6sigma.com.

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Certificate, Certification, and Training

The first, and simplest form of due diligence to practice is clarifying what exactly you need. When searching for a practitioner, it can be easy to click on the first few links that show up. However, keep in mind that programs’ orders correlate to their amount of paid advertising. Furthermore, multiple practitioners will attempt to blur the lines of what their programs offer. This is where due diligence comes into play!

If you have years of experience practicing the Six Sigma methodology, a practitioner who provides a formal certificate after passing an online course is the best option for you. Likewise, if you’re new to Six Sigma and need a basic understanding of the process, a training practitioner is the better option. Lastly, a certification program is ideal for those who want to combine the training and certification test process under one practitioner. While this is usually the most expensive option, it does provide the most experience and formal understanding of Six Sigma. 

Where Does the Accreditation Come From?

While it’s important to understand what type of program your practitioner offers, it’s even more so to recognize where accreditation will come from. Is your practitioner offering a training course through a university or an online program? Does the Better Business Bureau support the program’s accreditation? Have industry leading corporations used a particular certificate exam to test their employees? These questions and more are an easy way to not only assess the legitimacy of your course but to also clarify where your accreditation comes from. A Six Sigma certification is only worth as much as the provider!

Quality vs. Quantity of Content

Lastly, finding a reputable practitioner can be done by assessing the quality and quantity of the course’s content. For example, most classroom Black Belt certification courses take between four to six weeks to complete. If you find a practitioner online who offers a similar course, does their curriculum take the same amount of time? Likewise, the quality of the course work provided should help you determine whether your practitioner is the right fit or not. Most legitimate certification courses require you to complete a Six Sigma project to receive feedback on your process improvement skills. If you practitioner offers no hands-on experience, they may be lacking in content quality. Additionally, another due diligence tip is to analyze the platforms on which these courses run. Is a practitioner using an up-to-date software for their projects? Is your practitioner providing the correct examples for you to practice; i.e. service industry versus manufacturing?

Slightly questioning and researching Six Sigma practitioners can easily determine if they are the right fit for your needs. Remember, Six Sigma is a business process improvement method that requires discipline, structure, and most importantly, due diligence!

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Experience

When interviewing for a new position, you are sure to be asked about your past work experiences. What projects you managed, how you tackled difficult situations, and more, will all be assessed by your interviewer. Likewise, when searching for a Six Sigma accreditor, first look at what experiences you will gain. If a training program is only a few weeks long and offers no hands-on experience, chances are, they are a poor accreditor. Additionally, further warning signs of poor training would be a lack of communication with other students, reluctance to critique your work and progress, and no availability to work on certified Six Sigma projects.

Course Work

Whenever applying to a new course or training program, it’s important to see exactly the institute plans to teach you. Whether you’re seeking a Black Belt certification or just beginning as a White Belt, it’s vital to know what your course covers. Likewise, if you have access to the training program’s content, compare it to other programs. This allows you to assess their similarities and differences. This tip is a easy was to see if you’re facing a poor accreditor based on the lack of relevant content. Remember, the goal of a Six Sigma training program should focus on exposing you to the methodology, not just taking your money.

Past Users

When you shop online, it’s commonplace to read reviews of products you might wish to purchase. Likewise, search for reviews of past individuals who have taken the Six Sigma training course(s) you’re interested in. Are past students now senior managers at well-known corporations? Do they run their own consulting firm? Or have they become stagnant in their progress? Furthermore, if you’re interested in gaining a higher Six Sigma certification, sometimes the best method to find the right training program is to just ask your manager. Chances are, your employer has a list of preferred programs that they trust and send their colleagues to.

Your Next Steps

At the end of the day, finding the perfect Six Sigma training course depends on three things. They are your time limitations, your budget, and most importantly, your own preference. Six Sigma certification is an invaluable asset that will progress you within your career faster than most other certifications. Take the time to carefully find the right program for you and always be on the watch for poor accreditors!

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When mishaps occur, it’s easy to become frustrated. However, as a Six Sigma professional, it’s your responsibility to get the project back on track as quickly as possible. To better prepare you for the unavoidable future, here are a few tips you can use when mistakes arise.

Prepare

The best way to resolve production errors is to prevent them from happening in the first place. Six Sigma is a business process improvement method that focuses on reducing waste and removing unnecessary components. For most Six Sigma Projects, this methodology will automatically reduce the chance for errors. Although, mistakes are still not completely avoidable. Before beginning a project, ensure your employees have thorough training and understand the Six Sigma methodology completely. A comprehensive understanding with adequate practice is the best way to prevent errors from occurring.

Damage Control

However, when errors do occur, the first thing you should do is remind yourself and your team that you are human. Mistakes will happen and while perfection is a goal, it’s not necessarily achievable. Likewise, when mistakes happen, assess where and when the error occurred. Using your Six Sigma Toolkits, such as Root Cause Analysis, you can locate and correct the production error and get back on track. Additionally, you can also integrate the Kaizen methodology to maintain a clear workspace, revisit locations of errors, and reorganize your components. While you may lose time when a production error occurs, it’s crucial to take the time needed to locate and correct what exactly went wrong.

Getting Back on Track

Whether you have just finished fixing a production error or are practicing prevention methods, getting back on track with your project should always be the end goal. Getting back and staying on track requires discipline, obedience, and a strong management team to motivate their employees. When management communicates effectively with other employees, it’s easier to maintain a proper business process and Six Sigma project. Additionally, practice is always key. If you want to avoid errors from occurring, practice the Six Sigma methodology in all of your business processes when available.

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At some point in life, everyone dreams of being their own boss. Running your own company as an entrepreneur reaps numerous benefits, such as flexible hours, better pay, and most of all, control over what you do and when you do it. However, not everyone has the courage to form their own startup consultancy. Many will invest countless hours and hundreds of dollars into a business model that simply does not work. Some may fear that creating their own business is too risky and does not offer stable benefits their families will need. Yet, the remainders will strive and work as hard as possible to get their company off the ground and in the end, succeed. Whether you have years of experience in a professional industry, a technical education background, or are starting completely new, Six Sigma certification will put you on the path to success!

Six Sigma and Consultancy

Six Sigma is a world-renowned business process improvement method that has integrated itself into numerous industries. Additionally, the Six Sigma methodology uses data-driven analysis to reduce production waste, increase process efficiency, and deter manufacturing defects. Like most business methodologies, you can earn a variety of level certifications that qualify you to work on specific tasks. Beginning with White Belt, you can test your knowledge of Six Sigma and gain higher ranking certifications throughout the program. Furthermore, most entrepreneurs that create their own Six Sigma consultancies have Green Belt certification. This is the medium rank and proves that you possess a thorough understanding of the methodology and how to implement it into practice. However, most successful entrepreneurs continue to learn the details of Six Sigma and earn higher certifications throughout their experience.

What You Will Need

Before you begin creating your own firm, there are a few key things you must have. First, above all else, you must have an exponential desire to succeed. Statistically, four out of five consultancies will fail in the first stages of their life cycle. To beat this, you must believe in yourself, possess a strong passion for your work, and practice a sustainable business model. Next, as a Six Sigma consultant, you must ensure your knowledge of the business process methodology. Consultants, either individually or as a team, are expected to have basic to advanced knowledge on most subjects pertaining to Six Sigma. When advertising your services to potential clients, find ways to express your understanding and why they should choose your services over someone else.

Additionally, it is crucial to have a united workforce. Most consultancies begin small, three to five people at most. When working with your team, continuously practice and test their knowledge of Six Sigma and encourage them to expand their skillset. Finally, every consultancy needs a concrete business model with a solid mission statement. What are your services, what are your specialities, and how will you profit from them? Too often, young consultants spread their workforce and knowledge base too thin and cannot maintain a precise company image. Find what services you offer best and perfect them!

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Throughout our series, Kaizen 5S for Beginners, we have discussed the in’s and outs of the Kaizen philosophy. This includes what each stage, or ‘S’, within Kaizen represents and how companies can successful implement it into their workplace. In this article, we will analyze the final stage of Kaizen, commonly referred to as ‘Sustain’.

What Is ‘Sustain’?

The original term in Japanese, Shitsuke, translates to English as “do without be told.” This final stage in the Kaizen business philosophy aims at practicing the self-discipline to maintain the progress made so far. Whereas the prior four stages focus on organizing, cleaning, and properly running the workspace, Sustain aspires employees to continue better their business processes in new ways. Kaizen, as a practice, revolves around constant improvement. Whether this includes reducing waste, increasing production efficiency, or decluttering the assembly line, employees use this method to improve their present work environment. Once at Sustain, employees will perform routine audits on business process. They may also train other team members on the Kaizen method, and practice strict self-discipline.

When first practiced in Japan, employees embraced the Kaizen philosophy as a new way to take pride in their work. Working together, employees sought out new ways to improve their productions and manufacturing with limited resources. Today, companies see Kaizen as the ideal goal-oriented process improvement method.

Implementing Sustain

Since its conception, the Kaizen business method has found itself in a variety of new industries. From health care to education, government and logistics, Kaizen brings benefits to numerous industries through its order and structure. Depending on your field, Kaizen will have varying strengths when implemented. Originally designed for manufacturing roles, the method was used to organize congested workspaces and deter product defects. Now, employers combine Kaizen with the data-centered approach of Six Sigma to form the ideal business process improvement method. Using the analysis and logistics of Six Sigma with the order and discipline of Kaizen, employees seek process improvements better than ever.

Furthermore, the most effective way to implement Kaizen into your corporation is with leaders who routinely enforce the method. This includes supervisors and managers who conduct routine assessments of their employees, their workspaces, and their productions. If implementing correctly, your employees will perfect their roles with the consistent practice Kaizen requires.

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Throughout our Kaizen 5S for Beginner series, we have assessed each stage along the Kaizen business philosophy. In this article, we will discuss the forth S, ‘Standardize’, what it means, and how companies successfully implement it their employees’ standard operations.

What Is ‘Standardize’?

‘Standardize’ is the process of revisiting the first three stages of the Kaizen model periodically and maintaining the new standard of operations. We recommend practicing ‘Standardize’ on a frequent schedule that is predetermined by management. Depending on your company’s industry, revisiting one or all the prior three stages may be necessary to maintain your improvements. For example, if you operate a manufacturing plant, revisiting ‘Shine’ multiple times per month is a great way to keep your workspace clean and operating smoothly. Likewise, if your company produces a variety of products, revisiting ‘Straighten’ would be helpful is properly placing items so they are easily accessible.

How often and when your employees will revisit a previous Kaizen stage is based solely on your needs. The idea behind Standardize is the flexibility to revisit prior changes, reassert discipline, and assess new ways to improve your business processes. This systematic approach aims at maintaining the progress you’ve already made, as well as confirming the set standards levels.

Implementing Standardize

You can implement Standardize in a variety of ways due to its flexibility and dynamic nature. First, management may develop a time period in which each prior Kaizen stage is revisited a certain number of times. This may be along the lines of every month, quarter, or half year. Kaizen succeeds in part due to its discipline and structure. Ensuring that your employees follow managements’ decision to revisit prior stages when they request so is key.

Additionally, you may also implement Standardize by developing a system of checks and balances within your processes. For example, if a defect occurs, your employees will revisit each Kaizen stage, ultimately fixing the error. However, in the end, your company’s needs will guide you how to use Standardize.

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Kaizen, when practiced daily, can create a sense of unity with the workplace. With this method, no one employee is overly worked, nor is one superior in their knowledge of the same system. The Japanese methodology shows how employees can perform their tasks using a scientific method, eliminate waste, and improve process efficiency. Through discipline and practice, you can use the five steps of Kaizen to improve performance, reduce waste, and solidify your company’s foundation.

What Is ‘Straighten’?

The second step to improving your business processes through Kaizen is ‘Straighten’. Straighten is the practice of arranging the components that go into your business processes. For example, if working on an automobile assembly line, this step allows you to place each part required for manufacturing to be precisely labeled and placed in its appropriate place. Not only does this create an easier way for personnel to find the parts they need, but also prevents wasting time by searching for misplaced components. As a result, Straighten allows your workflow to be smoother while also increasing the time efficiency. Another byproduct of this step is an increased in company safety. When employees spend less time looking for parts and items for their process, they are able to stay focused on the task at hand. This lack of distraction ensures fewer accidents occur, especially along a high-frequency production and manufacturing process.

Another byproduct of this step is an increased in company safety. When employees spend less time looking for parts and items for their process, they are able to stay focused on the task at hand. This lack of distraction ensures fewer accidents occur, especially along a high-frequency production and manufacturing process.

Implementing Straighten

The key to this step, along with the other 4 S’s of Kaizen, is proper implementation. Since Kaizen follows a strict, disciplined approach, the best way to integrate Straighten into your workplace is by making it a part of your corporate culture. Following a systematic approach, the method can be integrated into almost any business process you have. With the help of project leaders, managers, and supervisors, your company can distill this step into your employees. Like most methodical practices, the more you do it, the easier it becomes! Start small and focus on the quality of your implementation. As your employees accept Straighten, it becomes easier to stay disciplined, checking on systems periodically.

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You have all met those employees who procrastinate and wait until the last minute to get something done. They rush through to meet a deadline or task in hopes to outsmart those who are the powers that be.

In business, this can be a warning sign of either boredom or the employee feeling dismissed. In reality, if the company has team leaders and everyone is a specialist in their specific part of the process, boredom or laziness would never happen among employees.

There Are No Small Players in Your Business  

If you don’t believe the idea that there are no small players in your business, let’s take the example of putting together a tricycle for a child. You lay out all the nuts, bolts and screws included in the kit to put the bike together. As you build the bike, you notice that you are missing a tiny little screw. It is tiny, so you think, how important could it be…so you continue to put it together.

Well, the tricycle is now finished and looks perfect. So your child gets on it to peddle away, but wait…it won’t move! Your child cannot peddle because something is preventing them from peddling. So the entire tricycle is stopped from its function because of one tiny little screw.

So every single employee is extremely important to your business’s process, and should be held accountable for being that critical to the process. All of your employees are there because what they do is part of the collaborative effort of the success of your business.

Learn how to optimize your organization’s processes and employee productivity through Six Sigma training.

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Keeping Morale Up

Here are a few tips to maintaining employee satisfaction and keeping your employees happy:

• Have everyone on the same page: Keep communication going by including everyone on company emails, meetings, and updates. A staff member will get stressed out and frustrated when they feel like they have been left out of the loop.

• Encourage employee innovation. Even if the ideas won’t become part of the business reality, make a note, and take the time to acknowledge him/her. After all, he or she demonstrated initiative just by thinking of ways to improve your company.

• Implement a physical wellness and mental health program. Depending on the industry, having a mental healthcare professional to talk to can do a world of good. Yoga and gym memberships, as well as guided meditation, are excellent ways to keep morale up.

• Straight from Six Sigma: Survey your employees on what their needs are. Never assume that you know what is best for your employees. Offer them ongoing training and growth programs. Always show your appreciation to every employee; don’t assume employee X doesn’t need kudos because of his age or life’s experience — everyone needs to feel appreciated.

• At the end of the day, we all know that employee turnover leads to lost productivity, which is a big waste. Waste is the number one reason companies lose revenue. Investing in the health and welfare of your employees is a worthwhile cause, and you will definitely reap the benefits twofold.

 
If you would like more information on our courses or services, please visit our Six Sigma course schedule. We are still enrolling our Green Belt courses in Washington D.C., St. Louis, and Pittsburgh.

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The Challenges of Business Aren’t Small

It is no secret that if you want your business to run effectively and efficiently, implementing Six Sigma methodology is the answer. While Six Sigma was orchestrated originally for the Fortune 500 companies, recent studies have shown that both small businesses and medium businesses can prosper as well.

With that being said, there is a caveat, which could easily be turned around. To paint the picture, let’s do some comparing.

First of all, both sizes of companies require the same exact procedures. Smaller businesses do require scaled down versions of manpower (according to respective size).

Basically, in large companies, top management sets the tone by taking the initiative, communicating with mid-management for the sole purpose of developing templates of specific tasks designed to improve efficiencies. All of this stays within the main objectives of the company.

A Scale of Size

The larger company has the resources to hire a Six Sigma Black Belt team that can take them through the DMAIC improvement cycle in order for the business to reach the specific goal. This is set to be achieved by a given period of time, usually 3-6 months.

After the goal is achieved, a mature organization using Six Sigma has 1% of their workforce in the Black Belt capacity ensuring all is being constantly implemented and monitored.

Small Business Rises to the Challenge

The situation is a lot different in a smaller company. Since financial resources usually aren’t as plentiful, company employees usually wear many hats and are more nimble. This can actually make team efforts easier, so there wouldn’t be a need to have a separate Six Sigma team to deploy changes.

Since the smaller businesses may choose not to have an onsite Black Belt to keep everyone on task, communication must be plentiful, and correct usage of Six Sigma methods and tactics must be implemented.

So for the small and medium size business, success can be large, as long as Six Sigma’s continuous, results driven, organizational development plan is at their helm.

Whether you’re interested in our Six Sigma courses or hiring a team, visit our website.

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

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General Electric saved over $320 million in costs after less than two years of implementing Six Sigma methodology. GE is still the 6th largest firm in the US and still going strong – it has never left the Fortune 500 List.

Are you running your business at optimal levels? While your business may not be the size of GE, you can borrow some of their strategies in running your own business.

Let’s take a hypothetical situation: say you have a small company of 20 employees. You hired these 20 employees because that is how many employees you thought you needed to make your company run smoothly and satisfy your client base.

Then, for some reason business is down slightly. You remember having some customer complaints: your thought was, “Well, you can’t please everyone all the time,” and went about your day. This happened a few times but you felt it wasn’t anything serious.

Now a few months have passed, and your business is down, so you layoff a few employees. Do you really feel that action is improving your business? You probably laid off good hardworking employees that could actually help you grow your business!

Learning where your business needs to improve and change can be determined through methodologies such as Six Sigma.

Six Sigma is a business improvement methodology that when implemented will improve both the effectiveness and efficiency of your business at the same time. Your product, whether it be an actual product or service has to be at the top level of effectiveness; meaning you are producing a darn great product. If your business is running efficiently, your business should be profitable.

Start the New Year with a strong initiative towards success by making Six Sigma part of your business strategy.

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

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