Does Anybody Use Six Sigma in Sales and Marketing?

Here's an interesting posting from Linked In you might not have seen: Ray Stahl, Director of Business Development at Xiotech Corporation, asked this question:

Does anybody use Six Sigma in Sales & Marketing?

I am interested to see if Six Sigma, which was very popular based on GE's Jack Welsh driving billion of dollars to the bottom line back in the late 90's, is still be promoted in the Sales and Marketing organization?

Is it being done by internally trained Black Belts or consultants?

Here was my response:

My name is Michael Webb, and I'm the author of "Sales and Marketing the Six Sigma Way" (Kaplan, 2006). In answer to your question, "Does anybody use Six Sigma in Sales and Marketing?", the answer is yes.

As you might have surmised, the potential gains from applying data-oriented, problem-solving approaches such as Six Sigma (and its cousin, Lean thinking) to sales and marketing are enormous. I illustrate just some of the many powerful financial and strategic outcomes in the book. Stories from J&J, and HSBC Bank come to mind, as well as from smaller companies.

You also asked "Whether it is being done by trained black belts or consultants." I would say, first of all, that trained black belts are generally not equipped to do Six Sigma for sales and marketing.

That is because most Six Sigma training programs focus on the technical side of the discipline. Unfortunately, applying Six Sigma and Lean to sales and marketing is NOT primarily a technical problem. "Sheep dipping" salespeople and their managers in a traditional Six Sigma training program is a waste of time and money most companies cannot and should not have to afford, at least not at first.

The Six Sigma industry is largely comprised of training companies that make money putting buns in seats. They are virtually identical to the sales training industry in this regard, and have a similar track record (ie, pretty spotty). This is one reason Six Sigma in sales and marketing has not spread as quickly as some people thought it would.

There are other reasons as well. For one, you can't see and touch (and measure) the value being created like you can in manufacturing.

That doesn't mean value isn't being created or that it can't be measured in sales and marketing. Far from it. It does mean you have to develop the right way of measuring so marketers and sellers can have hard data telling them daily whether they are creating value or waste. Most people who have worked in a sales and marketing environment can vouch for the waste and inefficiency that goes on. They just can't find a way to help their organization stop doing it!

The companies that accomplish this will have dramatic advantages over their competitors.

If this subject interests you, might enjoy checking out www.salesperformance.com. There is lots of free information and resources.

Comments

[Randy E. Blevins]

Lean Sales Engineer

In my search for Six Sigma used in sales I came across your web site. I am just getting ready to start my first role as an SE. This change was unexpected (most change is). For more than thirty years I have worked in manufacturing, with half those years involved in NPI (New Product Introduction) related activities. I have watched (and participated in) the rise of the “Lean” approach in the work environment.

As a young line supervisor I worked out my own “methods” of getting quality and productivity under control. There weren’t programs or training available to assist with those activities (other than the standard end of the build quality check and reject approach).

For almost a decade I stepped out of the manufacturing arena (three ring circus). Upon my return I ended up working at a company right across the street from the company I’d left those many years before. I was even working with one of my old manages. He said to me “Man, wait till you see the new program we are putting in place. Remember all the things we did to try and make things better? Well some people have managed to figure it all out.” What had happened in my absence was JIT (Just-In-Time) and DFT (Demand Flow Technology). Well, once we started we never looked back.

Today it all comes under the title of LEAN Manufacturing. I fully believe in the methodologies being applicable in any an all aspects of a company. Where ever you measure, track, and control, you improve the bottom line. Shoot! I helped save the company $150,000 a year by “Leaning” out their hardware handling processes.

In my preparations for starting my new career, I am outlining some ideas for myself on just how I might put Six Sigma/Lean principles in place in my day-to-day activities. I have a great deal to learn in the months and years ahead. I may as well not wait to start to measure, track, and control what it is I do and how I can improve the bottom line (we are not just talking about the company’s bottom line).

So I will be buying your book.

Former Manufacturing Engineer; now a Sales Engineer.