ILTA White Papers

The Business of Law

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ILTA White Paper The Business of Law 28 two methods can solve 90 percent of the problems faced by organizations today. The combination of both methods is so effective that successful organizations gain a competitive advantage in their industry. For example, Snee reported in Six Sigma Beyond the Factory Floor that the Commonwealth Health Corporation saved $800,000 in the first 18 months, prompting its CEO to announce, "I wish we had done this five years earlier . . . the competitive edge the organization has gained through this process is incredible." By focusing on the client experience, Silvia Coulter commented in a recent interview that a law firm can become the Ritz- Carlton or Starbucks of the legal industry. She noted that process improvement is the key to unlocking the doors to additional revenue because a consistent level of quality across the firm makes it really easy for clients to send more work to the firm. LeSS iS More One of the primary challenges for service organizations is to adapt the concepts, vocabulary and tools of Lean Six Sigma to their industry so that managers can apply these "manufacturing" methods to their projects. Fortunately, the service industry literature and industry surveys offer some guidance in understanding how many tools to use and whether to use the more statistical tools. Snee recommends including some initial training in statistics so that managers can not only learn the more advanced tools, but also understand how to integrate them as they solve problems. However, he also points out that "you don't need an army of professional statisticians to make Six Sigma work. 'Ordinary people' can be trained to conduct Six Sigma projects successfully." With industry- appropriate training and the right mix of tools, managers in service industries can keep the rigor of Six Sigma's data-based approach without having to become the legal equivalent of an engineer. Michael Marx's surveys of Lean Six Sigma practitioners also show that of the 50-odd tools available for use on projects, only a few tools –– process mapping, project charters and brainstorming –– are used all of the time by the majority of certified professionals, and a few more –– Pareto charts, 5 Whys, basic statistics and graphical charts –– are considered tools of choice. Marx's surveys also indicate that Lean tools, such as process mapping, 5 Whys and the 7 Wastes of Lean, are often preferred when starting an initiative because they are easier to learn, offer faster returns and develop a process improvement mind-set. In services, more practitioners also use Voice of the Customer, Stakeholder Analysis and SIPOC, which identifies the suppliers, customers, inputs and outputs of a process. Since the financial benefits of Lean Six Sigma initiatives stem from the cumulative result of successful projects, organizations also need to pay attention to their ability to manage projects and change over the long term. In the article "Manage Your Human Sigma," John Fleming argues that while "widespread use of Six Sigma and TQM methodologies has resulted in vastly improved product quality over the past two decades," there is considerable local variation in quality at the individual and team levels in service and sales organizations. To address the variability in Human Sigma and the entropy factor, organizations must not only offer training to develop process thinking, but also adjust policies and incentives to reward attention to continuous improvement, hold sponsors accountable for results and develop communication

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