Six sigma: it is not what you think

Abstract

Purpose

The purpose of this paper is to offer a practice guide for where to apply six sigma process improvement methodology to the corporate real estate function.

Design/methodology/approach

Based on years of direct experience provide practical guidance on how to get started and to overcome resistance that process improvement is not for service organizations like CRE.

Findings

World‐leading CRE departments are addressing cost pressure and performance expectations using process improvement, and the method of choice is six sigma. A methodology that emerged from mechanized manufacturing might seem ill‐adaptive to CRE and similar service cultures. Yet, with guided implementation and disciplined use, six sigma yields tangible results in service environments.

Research limitations/implications

Documenting and benchmarking process improvement results across CRE departments; surveying the level of business adoption of six sigma methodology compared to the level of CRE adoption within the same company and how this leads to business misalignment

Practical implications

World class benchmarks will be set in the future by CRE organizations that adopt six sigma process improvement methodology.

Originality/value

A provocative discourse furthering the cause six sigma within an industry that famously resistant to change.

Citation

McCarty, T.D. and Fisher, S.A. (2007), "Six sigma: it is not what you think", Journal of Corporate Real Estate, Vol. 9 No. 3, pp. 187-196. https://doi.org/10.1108/14630010710845767