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April 16, 2009
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About Nolan
The Robert E. Nolan Company is an operations and technology consulting firm specializing in the insurance industry. For 35 years, we have helped insurance companies redesign processes and apply technology to improve service, quality,
productivity, and costs.

Our staff members are all senior industry experts with 15+ years in the industry. Visit www.renolan.com to download our insurance industry studies, white papers, and client success stories.


Quality Results Are What Counts
By Dennis Sullivan
Chief Executive Officer

dennis_sullivan@renolan.com

I've read all the Harvard Business Review case study articles on TQM, reengineering, Six Sigma, lean manufacturing, and today's latest silver bullet—lean Six Sigma. Without divulging my age, I can honestly say I've been around for all these techniques and a few others. I spent the first 10 years of my career in the manufacturing world, where I got a dose of most of these techniques before they hit the financial services and health care industries.

One thing I've learned is that unless the right approach is properly applied to any complex problem, a good solution is not guaranteed. Today's thorny business problems need well-thought-out solutions. Sure, I have a bias against the silver bullet theory. Many executives sign up just to say, "We are using (fill in the blank) to solve our performance problems." But it is not that easy. It was someone back in the 1600s who once said something like, "A problem well stated is a problem half solved." I've always liked that because it focuses on first understanding the problem.

To begin with, I need information about the situation to really understand what we are trying to solve. That means knowing the process and all its impacts—having data on inputs and outputs, then having a good understanding of each available technique and approach and how it might help. Each of the techniques mentioned above is best suited to certain types of problems. When the business analyst truly understands the problem, he or she is better prepared to select an analytic technique or techniques to solve the problem. Problems with speed of processing—where there are too many hand-offs or too much specialization in skills—may be the main issue. The concepts around lean manufacturing might need to be applied.

Some organizations measure every step in a process and focus on errors and eliminating them, and Six Sigma has provided insight into many operating problems. Knowing where and when to apply attributes of Six Sigma can help. What if we have a process that is measured, tracked, and reported, but has little value in the end product? Wouldn't we want to apply some of the Value Analysis techniques to a product development cycle before we measure it?

Sure, we all understand that today's business problems are complicated. One-size-fits-all approaches don't fit all! The Nolan Company feels that there are two imperatives when it comes to solving complex business problems. First, involve the right knowledge workers (business owners, analysts, workers, and, yes, consultants). Second, understand what all the latest tools and techniques can offer. Then you will be able to deploy the right mix of tools to solve your specific problems. Remember, it is quality results you are looking for, not recognition that you are a member of the latest "silver bullet" club!