Six Sigma in HR

&
Implementation in Bharti Airtel
WHAT IS SIX SIGMA
 Six Sigma philosophy is about using a systematic, scientific, data
driven approach that leads to the best possible process (the best does
not remain best for long so there is a need for continual
improvement and more improvement projects periodically)

 Six Sigma methodology provides us with the world’s best tried and
tested techniques and we select and use the appropriate ones for a
specific improvement project.
 Six Sigma is a quantitative approach for measuring the quality as well as
the number of errors or failures per million operations, and improving
business performance.

 Six Sigma is a management technique that seeks to drive defects to less

than 3.4 defects per million, i.e., 99.9997 % perfect . Defects are defined as
any non-conformance to customer specifications.  Once the causes of
defects are identified, processes are modified to avoid the causes. 

 The success of the approach was the result of a combination of

management efforts to change the corporate culture where there is no
tolerance for lower quality, customer dissatisfaction and defective products
or services.
 The first step in building a culture for deploying Six Sigma is that
everyone in the organisation must be familiar with the 5 functions of
the organisation – marketing, finance, operations, human resource,
information technology.

 This will help the organisation learn the interdependencies between

them and how an organisation can create value by breaking the
functional barrier to achieve corporate goals.

 Understanding can be best achieved by organising periodical cross –

functional teams discussions, workshops, seminars
Methodology
 Explore - The human resource management will analyse the opportunities
that exist to improve the business processes, understand its impact on other
functions in the organisation and how internal strength can be used to bank
on these opportunities.

 Define – The potential opportunities from the external environment and the
problems based on the corporate goals are identified in measurable terms.

 Measure – A proper unit of measure is identified to evaluate the benefits

from the external environment and solve the problem that exists in the
human resource management.
 Analysis – Opportunities from the external environment and the problems
in the firm are identified to improve the business processes in the human
resource management.

 Communication – Opportunities for improving the process, the problems

that exist and solutions to those problems are communicated to the human
resource department.

 Improve – Strategies to bank on the opportunities are developed and

implemented and solutions to the problems are developed and problems are
solved in the human resource department.

 Control – A system is put in place to utilise the full benefit of the

opportunities and to make sure the problems do not recur.
SUPPORT SIX SIGMA
 Understandable, objective and measurable position requirements
and performance standards
 Hiring and candidate selection processes driven by the position
requirements
 Identifying leaders for management positions
 Effective, objective and accurate performance appraisals
 Focusing training and development programs on specific position
requirements and individual performance
 Integrating individual performance with overall performance and
quality management system
 Eliminating waste and inefficiencies
 Tracking and measuring continuous improvement in your HR
processes
IMPLEMENTATION
The key is recognizing gaps or opportunities for improvement by
breaking down processes in manageable chunks. The HR function
can take the following steps to implement Six Sigma in HR or to
facilitate implementation of Six Sigma in the organization:
 Establish a clear and significant role of HR for institutionalizing Six
Sigma
 Establish Six Sigma objectives and role in HR
 Seek customer feedback and identify opportunities for improvement
 Establish Six Sigma goals for HR function
 Formulate, prioritize projects and form teams
 Provide Six Sigma Green Belt training
 Implement DMAIC for breakthrough solution.
Executive Leadership

Champions

Master Black belts

Black Belts

Green Belts

Customers
 Champions Master Black Belts
Qualification Senior executives and Technical degree. Chief
managers such as vice engineer or head of customer
president or director of service.
marketing. Mastery of basic & advanced
Familiarity with basic & statistical tools.
advanced statistical tools.

Training One week of Champion Two one-week training

training. sessions.
Black belt training is highly
recommended.

Number of One Champion per business One Master Black Belts per 30
Employees group or manufacturing site Black Belts. Master Blacks do
not have to be on-site. They
Trained can represent a division.
 Black Belts Green belts

Qualification Technical degree or Technical & support

orientation. Might be an background. Their current
engineer or billing positions are associated with
administrator with 5 years or problem needing to be solved.
more experience. Familiarity with basic
Mastery of basic statistical statistical tools.
tools.

Training Four one-week sessions with Two three-day sessions with

three weeks between sessions three weeks between
to apply strategy to assigned sessions to apply strategy to
projects. assigned projects.
Project review in 2nd, 3rd, 4th Project review in 2nd session.
sessions.

Number of One Black Belt per 100 One Green Belt per 20
Employees employees. employees.
Trained
Phase One Business units select Champions & Master Black Belts.
The number identified depends on the business priorities,
but the rule of thumb is 1 Champion per business group
and 1 Master Black belt for every 30 Black Belts.

Phase Two Champions & Master Black Belts are trained in Six Sigma
Breakthrough Strategy. A deployment plan is developed &
presented by each business group.

Phase Champions & Master Black Belts identify the first “wave”
Three of projects and select Black Belts and cross-functional
teams.

Phase Four Master Black Belts receive additional training. They are
“trained to train” Black Belts & others who will be applying
the Breakthrough Strategy.

Phase Five Black Belts begin training the first wave of projects is
launched.

Phase Six Experienced Black Belts begin training Green Belts.

CHAMPIONS
 The executive leader or Senior Champion selects individuals who
will “champion” Six Sigma within specific businesses across the
organisation and can ensure that all the key functions of an
organisation are connected to Six Sigma. They are of 2 types
 Deployment Champions play role similar to CEO, president,
executive vice presidents in terms of leadership & commitment
but take on additional responsibilities necessary to nurture
sucess of Six Sigma.
 Project Champions function at business unit level as they
oversee Black Belts & focus on Six Sigma at project level.

 They decide what gets done.

MASTER BLACK BELTS
 Individuals selected by Champions to act as in-house experts for
disseminating the Breakthrough Strategy knowledge throughout
organisation.

 Work with Champions to coordinate project selection & training.

 Train & coach Black Belts & Green Belts & communicate overall
progress & status of projects within their area or business.

 Negotiate for resources & clear path to apply Breakthrough Strategy

to targeted Black Belt projects, particularly those cutting across
organisation’s boundary.
BLACK BELTS
 Apply Six Sigma Breakthrough Strategy’s tools & knowledge to
specific projects.

 Decide how to get things done

 Must possess management & technical skills &dedicate 100% time

to working on Six Sigma projects.

 Characterise & optimise key processes that exert influence on

business landscape. Identify & execute projects that will reduce
errors & defects in industrial & commercial processes & in products
& services.
GREEN BELTS
 Employees throughout organiation who execute Six Sigma as part
of their overall jobs.

 Primary tasks are – to help deploy success of Six Sigma techniques

and to lead small scale improvement projects within their respective
areas.
HR MANAGER’S ROLE IN ENHANCING
SIX SIGMA EFFECTIVENESS
Six Sigma planning is an easy task but is difficult to execute

Appropriate selection and retention:

Ensure selection of right people at the right place at a right time
I. Competency mapping of existing and potential employees
II. Prepare job description
III. Proper retention planning

Performance - based compensation and reward

 Rejuvenating team spirit
Training in conflict management, communication, dealing with
problem, self analysis and development, interpersonal skills and tem
effectiveness skills.
HR practices: team based rewards and recognition , selection of
people with high team spirits

 Continuous training and learning

 Employee counseling
Help in gaining acceptance

 Managing careers

 Achieving team effectiveness

 Promoting open communication
Reduction in number of layers , clarifying roles and clarifying
reporting hierarchy

 Enhancing QWL
High quality of work life and organizational culture

 Inculcating Six Sigma Culture

 Management Information System

 Managing Change

 Knowledge Management and learning organization

AIRTEL’S ORGANISATION STRUCTURE
President

Technical

Finance

Knowledge Management & Quality

Marketing

Human resources

Customer Relationship

Marketing

Information Technology
THE SIX SIGMA INITIATIVE
 Speed of change in telecommunication industry in terms of
technology, regulation and competitive actions.

• ‘Price cut’ or ‘technology’- imitable

• Need: ‘breakthrough results’ in a short period
of time rather than incremental improvements
THE INITIATIVE
 Began the Six Sigma implementation in September 2002.

 Felt a need to create a culture of data and measurement, rather than gut
feeling and only experience.

 Six Sigma offered a more analytical measure in terms of :

 rigorous statistical tools
 constant monitoring and tracking of various parameters
 explicit measurement of non-financial parameters
“OUTSIDE-IN” APPROACH
Primary objective: Improve customer satisfaction

By-products: other financial and non- financial benefits

[Link] of customer data VoC (Voice of the Customer)

[Link] to internal measurable parameters under various business

processes

[Link] and indices developed for measuring various parameters

[Link]
to quality measures(CTQs) and customer satisfaction scores
obtained form the basis for initiating Six Sigma projects
SIX SIGMA STRATEGY
Interrelated strategic initiatives supported six sigma implementation at
Bharti Airtel
Factors critical to achieving sustainable competitive advantage:
[Link]
Quality and sustenance of results driven by BPMS through
afoundation of robust, repeatable processes, compliance to which are
ensured by periodic audits and process measurement NFP – monthly
review of parameters

2. Speed
Through Knowledge Management System(KMS). Knowledge
sharing sessions to discuss success stories and best practice
implementation.

“Replication of best practices take much lesser time than initial

implementation”
SIX SIGMA PROJECT SELECTION
Big Y’s Little Y’s Processes CTQ’s Projects
Improve
Billing Complaint
C-SAT
Management
Reduce
billing
Credit complaints
control
Maximize
Customer
net revenue Reduce time
care
to resolve
Collections
Improve quality
Sales
of resolution

Installation
fault repair
SIX SIGMA METHODOLOGY: DMAIC
 IMPLEMENTATION
 Black belt projects:
 Green belt projects
BUSINESS BENEFITS
 Improvement in customer satisfaction scores.
 Direct annualized financial benefit to Bharti Infotel was about Rs.10 crores.

Other Benefits
Improvement in product and process quality
Improve customer satisfaction and gain customer loyalty
Positive influence on employees
Reduce cost and reaping benefits
Reducing cycle time and better time management
Data based decision-making
Developing leadership skills
Ensuring constant growth
Gaining edge over competitors
MAJOR SHIFT IN MANAGEMENT –
IMPACT OF SIX SIGMA IMPLEMENTATION
 There were three major impacts of six sigma implementation at Bharti
 People started appreciating that improvement as well as reasons of
improvement.
 Rigour of analysis had improved significantly.
 Culture of working in teams had begun.

 The shift was not just restricted to people involved in six sigma projects but
there were far reaching changes in the way management perceived quality
as a function, the way people approached processes and problem solving.
 APPROACH TO PROCESSES
MANAGEMENT VIEW OF QUALITY

Separate function Integral part of every Processes designed on Processes designed on “the
function “the way we work” way customers want it”
Based on service deliver
Quality is the Quality is to support & Function based (doing (achieving outcomes)
responsibility of the realize our business activity) comprehensive Measures;
quality department strategy reliable data
Limited measures; Data
integrity issues

EMPLOYEE APPROACH TO PROBLEM

SELECTION OF PROJECTS
SOLVING

Hunch/ experience based Data based

Hit ‘n try Derived at local level Derived form critical
Individual excellence Structure business imperatives
individual learning/ Team Excellence Team Based on employee
growth learning/ growth wishlist Based on business
strategy/priorities

Major Shifts in Management Owing to Six Sigma Implementation

INSTITUTIONALIZING SIX SIGMA
SIX SIGMA GUIDE- THE INTERNAL
STRATEGY DOCUMENT
This guide contained the policy guidelines for the Six Sigma
implementation
AUDITED BENEFITS
 The financial benefits that the company got out of Six
Sigma projects were audited by external auditors and
special audit certificates issued.

 High credibility to the tall claims of financial savings to

the company.
REWARDS AND RECOGNITION

All these internal awards and external recognition had

motivated all the Six Sigma teams, by reinforcing the success
story and sustaining the commitment of top management.
CULTURAL CHANGE
THE WAY FORWARD
 The Six Sigma initiative at Bharti Airtel is a significant component of
the company’s innovation strategy

 These were designed to ensure that everyone in the organisation

appreciate the processes and compete with state-owned monopolies.

 The Six Sigma journey in Bharti Airtel is still far from complete.