The Lean Six Sigma Approach To Dealing With Government Spending Cuts

With the UK national debt seeming to continually grow

, few government and industry officials dispute the need for cuts in government expenditure. However, the underlying issue with spending cuts is undoubtedly that even fewer people want to see savings coming at the expense of the improvements in public services made over the last decade.

Short term solutions that will garner immediate results are simply not viable in this economic climate, as high level actions such as cutting jobs, suspending recruitment, and freezing public sector pay will almost certainly affect front-line services and risk damaging the infrastructure the private sector relies on for growth.

Paul Docherty, the CEO of business execution software SME i-nexus, believes that this compromise doesn't have to be seen as the inevitable. He states that the effective combination of Lean and Six Sigma, as well as the Hoshin Planning concept, has the potential to help the new coalition government engage millions of public sector employees in delivering cost reductions whilst also improving customer service.

His belief is that the private sector's experience can aptly demonstrate the effective use of business execution software - particularly Lean and Six Sigma - for cutting costs by more than 20%, whilst continually showing improvements in operational performance. The private sector have shown us that just training employees in Lean and Six Sigma tools and setting new targets rarely leads to improved performance, and instead a highly coordinated approach is needed in order to engage management at all levels in the organization to translate goals into tangible actions.

In terms of Lean Six Sigma, this specific closed-loop, goal driven approach is labelled as Hoshin Planning. When incorporated effectively, Hoshin Planning can provide UK Government organizations with a systematic way of converting the savings targets into tens of thousands of substantial improvement actions at a departmental and individual work team level.

This effectiveness of this approach is also continually shown on a mass scale by FTSE 100 companies, who collectively employ over 5 million people - thus showing the applicability of Lean Six Sigma and Hoshin Planning for the government. These companies also demonstrate that improvements can be achieved in this way to timescales that would meet the UK Government's need for significant savings over the next 2 years, as they themselves work to set deadlines to deliver on promises.

The UK's leading provider of goal deployment and business execution follow up technology, including Hoshin Planning and Lean and Six Sigma software, i-nexus, is determined to assist the new UK government in any way possible in order to get the economy stabilised. They have already set-up a secure version of their highly scalable on-demand 'execution platform' for use by the UK public sector in tracking the actions being taken by the coalition government, to realise the 6bn pound savings targeted this year alone.

With Global 1000 leaders such as Pfizer, Nestle, Toshiba and 3M as i-nexus clients, this business execution company are well-equipped to assist other worldwide organizations, as well as the UK government, in translating their business execution goals into feasible actions.

by: Wilkinson Smith

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