To a certain extent, you understand that maintaining accuracy with your businesses finances is important.
Working alongside businesses and their financials for over twenty years, our MCDA CCG team have witnessed how a single, slight rounding error can ensue internal chaos. These small mistakes can result in devastating consequences, such as job loss, stakeholder penalization, team discouragement, and more.
While mistakes are common in every business operation and in every industry, it is possible to reduce them – using a management technique known as Six Sigma. In fact, applying the principles of Six Sigma in finance and accounting can create competitive advantages for organizations in nearly every industry.
With such fatal consequences involved in financial errors, it is not difficult to see how Six Sigma can benefit your financial systems.
Keep reading below to learn more about the benefits of Six Sigma in your organization…
Maintaining Financial Health
While businesses do need money to survive, establishing healthy financial habits ensures that it will survive far into the future.
To determine this, organizations must look beyond the money that it earns, as cash alone does not provide enough insight about the company’s financial systems.
Instead, companies can use Six Sigma tools to measure the performance at each operational level. Personnel can pinpoint Key Performance Indicators and measure the financial performance of the company. Additionally, tracking KPIs helps organizations to identify patterns that indicate a financial issue and further helps them to prepare for it.
Key performance indicators should be trendable, observable, reliable, measurable and specific.
Doing this ensures that the organization remains financially healthy into the foreseeable future.
Saves Time and Effort
A common mistake made by financial departments is collecting too much unnecessary information, inadvertently increasing the amount of time to complete a single financial task.
Six Sigma seeks to streamline the data collection processes, allowing you and your financial team to solely focus on essential information.
And since being highly organized is a part of Six Sigma, they can keep the data somewhere easy to find. This is important because the finance department usually handles more data than any other department. And it can slow things down to a crawl if a lot of time is spent looking for the data in dispersed computers, cabinets, flash drives, and cloud drives.
Empowers You And Your Team
When issues occur, Six Sigma not only helps you deal with them, but it also helps you prevent them from happening again.
By allowing you the ability to define and analyze a given problem, you can work to figure out the root cause, design an informed solution and commit to continuous improvement.
The Key to Successfully Using Six Sigma in Finance
While Six Sigma offers a perfect solution for financial optimization, effectively leveraging the techniques requires much more than a basic understanding. In fact, this process often requires a culture to pivot their existing methods to embrace an advancing market.
Furthermore, it’s important to keep in mind how internal department processes may impact other stakeholders involved with the organization.
When there are participating factors involved, like those affected by finance and accounting, it is helpful to have Six Sigma professionals present during process implementation.
This can ensure that your leading stakeholders are aligned with a common vision, and that teams can effectively handle the complexities involved in a company wide change.
Our MCDA CCG business professionals can be that trusted advisor. With years of industry wide experience, our company works to significantly reduce the number of mistakes and defects made in our clients organizations. This not only ensures that the businesses finances are rock solid, it empowers the individuals involved with the utmost confidence in their abilities – creating a team of unity.
See how our Six Sigma Black Belts can help secure your long term success by calling our office headquarters in Placentia, Orange County, California today. The call is free and there is no obligation, let’s work together to finish this year strong so that you can hit the ground running come 2022.