Organizations most effectively utilize Six Sigma methodology in two situations. One, if a business works with a very high volume of transactions per year, then they can not tolerate low sigma levels. For example, a 99% effective rate for 1 billion transactions per year still yields 10 million defects. In any industry, that is not acceptable.

Another situation that calls for Six Sigma methodology is when an organization (i.e. manufacturing) has processes with multiple steps. Here total error rate is critical. For example, effective rate is 99% for each step; however, that does NOT give total error rate as 1%. You must take 99% for first step and multiply it by 99% for second step, third step, and so on. With a great number of steps, your total effective rate could significantly decrease. So, to avoid high volatility, this organization can not tolerate low sigma levels.

Organizations can also determine error rate by effectively reversing typical process of Six Sigma. You can calculate mean and variance in your process to define error rate. This tells you where you are currently on Six Sigma curve. For example, if your calculation tells you that you're on a 1 or 2 sigma level, then this is an area in need of improvement. This gives you an opportunity to look at data more carefully, take mean and variance of each step of process, and determine in which step process is having problems. Or it could tell if you there are many steps causing problems and, thus, cumulative increase in error rate.

Processes, Procedures and Control

Organizations use Six Sigma methodology, because you can't get any higher than 2 Sigma (“tribal” or basic knowledge) without putting strong processes and procedures in place. And without strong processes and procedures, you can not move toward higher quality and system optimization – toward perfection. Are you really satisfied with 67% of your product lost as waste? Are you satisfied with such high variability in your system?

Problems, Resources and Results

If needed, you can change your process to reduce or eliminate this variability or error. Six Sigma methodology tells you when to take action to solve a problem. It moves an organization to consistently meet requirements and minimize resources used in its management system. And it creates desired results for which system was designed.

Systems, Control and Perfection

Remember, though, you can only get to 3 or 4 sigma by developing a system of policies and procedures of measurement, analysis and documentation. And with this you will easily see that reducing your error rate and moving toward perfection with Six Sigma tools is well worth driving time – and, more, crucial to your system’s control.

Chris Anderson is the managing director of Bizmanualz, Inc. and co-author of policies and procedures manuals, producing the layout, process design and implementation to increase performance.

The Management Team section should also include biographies of company's Advisory Board and/or Board of Directors. While having well-known advisors/board members adds credibility to business plan, it is highly effective to explain how these advisors will directly impact company through strategic advice and/or providing conduits to key clients, partners, suppliers, etc.

In summary, Management Team section of business plan is an opportunity to prove to investors that your company has necessary talent to succeed. Rather than waste this opportunity by merely showing employee resumes, which could be included in Appendix, section should be used to explain precisely how team is uniquely qualified to execute venture in its present state.