Sustainability and Impact of Lean Six Sigma Practices: Learnings From Some KPO/BPO Organizations

Abstract

Sustainability is a major challenge while introducing changes to the organizational way of working. The paper studies sustainability of Lean Six Sigma (LSS) implementations in KPO/BPO (Knowledge Process Outsourcing/Business Process Outsourcing) industry. Five such case organizations that have implemented Lean Six Sigma practices in their Indian operations are studied. An exploratory case study method is adopted. The KPO/BPO case organizations are evaluated from four dimensions of people, process, technology and operational outcomes. Impact of Lean Six Sigma (LSS) practices on above four dimensions helps us to study and understand the underlying nature of relationships. Current study demonstrates some critical aspects that impact the sustainability of LSS implementations in case organizations. Business alignment, leadership commitment, tailoring LSS knowledge, and post implementation actions are some of the factors that play a critical role in the sustainability of LSS. This research has limitations of the case study method as it is limited to five case organization. Hence, the generalizations of findings and conclusions must be done cautiously. Further similar empirical studies in KPO/BPO’s can possibly give more insights into independent and dependent factors and the correlations between them. This study has significant managerial and academic implications as the KPO/BPO industry is a growing sector of Indian economy. Published literature on LSS implementation in services sector has picked up over last decade, but there is very little literature in KPO/BPO sector. This paper is an attempt by researchers to contribute to this key area.