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How do I apply Lean Six Sigma in a service business?

Gurley Leadership Solutions

Before You Hire Anyone, Find Out If It Even Applies.

A diagnostic you can run yourself in an afternoon, to tell whether Lean Six Sigma fits your business or whether your problem is something else entirely.
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Malcolm Gurley, President of Gurley Leadership Solutions Inc. in Ajax, Ontario
By Malcolm Gurley, President
Gurley Leadership Solutions Inc., Ajax, Ontario

The usual version of this question is who can help me. I would start somewhere else, because the more expensive mistake is not hiring the wrong person. It is applying a structured improvement methodology to a problem that was never a process problem in the first place, and spending months confirming it.

So this article is a diagnostic rather than a pitch. You can run it yourself, this week, without hiring anyone. I have spent 35+ years leading this work in engineering and manufacturing organizations and I hold a Lean Six Sigma Black Belt, and the honest position is that a good practitioner should be able to tell you quickly when the answer is no.

The direct answer: Lean Six Sigma applies to your business when you have a problem that repeats, matters commercially, and has no obvious cause. Those three conditions together are the test. A one-off incident does not need a methodology. A problem whose cause everyone already knows needs a decision, not an analysis. And a problem that costs very little does not justify the effort of a structured project. If all three hold, the methodology fits regardless of whether you make things or deliver services.
Business data and charts displayed on a screen during analysis
The test is not your industry. It is whether the problem repeats, costs real money, and has a cause nobody can name.

The Three-Part Test

Take one specific problem currently costing you money and run it through these three questions honestly.

  1. Does it repeat? A structured project earns its cost by fixing a pattern, not an incident. If a shipment went out wrong once because someone was covering an unfamiliar desk on a bad day, that is not a pattern. If it goes wrong most weeks, it is.
  2. Does it cost enough to matter? Put a rough number on it: rework hours, expedited shipping, lost orders, overtime, credits issued. If the annual figure is small, fix it informally and spend your attention elsewhere. This methodology is for problems worth months of effort.
  3. Is the cause genuinely unknown? This is the one people get wrong. If everyone in the building already knows the cause and it has simply not been addressed, that is not an analysis problem, it is a decision problem. Structured improvement is for causes that are contested, invisible, or spread across departments so nobody sees the whole picture.

Three yeses mean the methodology applies. Two yeses usually mean a lighter approach: map the process, fix the obvious, and move on. One yes generally means look elsewhere for the real issue.

What Are the Signals That It Applies?

  • Wildly different outcomes for the same job. The same order type takes two days sometimes and three weeks other times. That variation is the classic signature.
  • Nobody can say how long something takes. If asking for the average time to complete a core process produces guesses rather than data, the process is not understood.
  • Recurring rework nobody has quantified. Everyone knows quotes get redone; nobody knows how often or what it costs.
  • Problems that cross departments. Sales blames operations, operations blames sales, and the problem lives in the handoff between them.
  • Firefighting as a normal state. Days spent on urgent exceptions rather than on planned work.
  • Growth that broke something. Processes built for a smaller company that quietly stopped scaling.

What Are the Signals That It Does Not?

Problems that look like process problems but are not

Demand, pricing, or product. If sales are down because customers do not want what you sell at the price you sell it, no amount of process improvement addresses that. Making the wrong thing more efficiently is still making the wrong thing.

Capacity and capital. If a machine is at end of life or you are genuinely short of people, the constraint is physical. A structured project may prove that in a few weeks, but you likely already know it.

One difficult individual. Sometimes the recurring problem traces to one person's conduct or capability. That is a management conversation, not a methodology, and dressing it up as a process project avoids the real task.

Leadership and accountability. If work fails because expectations are unclear, decisions do not get made, or nobody follows through, the tools will produce a good analysis and no lasting change. That is a leadership development problem, which is a different piece of work with different methods.

Team collaborating around a table reviewing plans and priorities
Two teams, same tools, different results. The difference is almost always whether leadership stayed involved.

Does Company Size Change the Answer?

Size does not determine whether the methodology applies, but it should change how you apply it.

Large organizations can support formal project structures, dedicated practitioners, and long analysis cycles. A twelve-person business cannot, and should not try. The scaled version is lighter: pick one process, map it with the people who do the work, measure the few things that matter, fix the largest gap, and write down the new standard so it holds. That is the same discipline without the apparatus.

What a smaller organization gains is speed. Decisions that take a quarter in a large company take an afternoon, and the person who owns the process is usually in the room. Used properly, that is an advantage rather than a limitation.

What Should You Do First?

Pick your single most expensive recurring problem and spend two hours on it with the people closest to the work. Write every step on the wall, including the waiting. Put rough numbers on how long each step takes and how long the gaps between steps are. Then look at the ratio.

You will learn one of two things. Either the elapsed time is mostly waiting, in which case you have found real waste and the methodology applies directly. Or the process is tight and the problem lies elsewhere, in which case you have saved yourself a significant expense and can go looking in the right place. Both outcomes are worth the afternoon.

How Do We Work With Organizations in Durham Region?

Gurley Leadership Solutions is based in Ajax and works with organizations across Whitby, Oshawa, Clarington, Pickering, Barrie, Mississauga, and the wider Durham Region and Greater Toronto Area, in sectors including manufacturing, healthcare, not-for-profit, engineering, and operations. A free 15 minute phone call is usually enough to tell whether your problem is a process problem, a leadership problem, or something structural that neither addresses. If it is the third, I will say so. For the full methodology, see the guide to Lean Six Sigma implementation, or read more about Malcolm Gurley.

Not Sure Which Problem You Have?

Book a free 15 minute phone call with Malcolm Gurley, Lean Six Sigma Black Belt. Describe the problem, and we will work out together whether this methodology is the right answer or whether you need something else.

Prefer the phone? Call 416.669.7644, Monday to Friday, 8:00 AM to 6:00 PM.

Book Your Free 15 Minute Call

Frequently Asked Questions

How do I know if Lean Six Sigma applies to my business?

Test one specific problem against three conditions. Does it repeat rather than being a one-off. Does it cost enough annually to justify months of effort. Is the cause genuinely unknown rather than something everyone already knows but has not addressed. Three yeses mean the methodology applies, regardless of your industry.

What problems does it not solve?

Demand, pricing, and product-market problems are not process problems. Neither is a genuine capacity or capital constraint, one individual's conduct or capability, or a failure of leadership and accountability. In that last case the tools will produce a sound analysis and no lasting change, because the constraint is behavioural rather than procedural.

Is our business too small for this?

Size changes how you apply it, not whether it applies. Small organizations should skip the formal apparatus and use the discipline directly: map one process, measure what matters, fix the largest gap, write down the new standard. Smaller businesses also decide faster, which is a real advantage.

What can we do ourselves before hiring anyone?

Take your most expensive recurring problem and spend two hours mapping it on a wall with the people who do the work, including the waiting between steps. Compare working time against total elapsed time. If most of the elapsed time is waiting, you have found real waste. If the process is tight, the problem is elsewhere and you have saved yourself an expense.

How do we get started?

Book a free 15 minute phone call with Malcolm Gurley through the button above, or call 416.669.7644, Monday to Friday, 8:00 AM to 6:00 PM. There is no cost and no obligation for the initial conversation.

Malcolm Gurley, President of Gurley Leadership Solutions Inc., Ajax, Ontario

About Malcolm Gurley

Malcolm Gurley is the President of Gurley Leadership Solutions Inc. in Ajax, Ontario. He brings 35+ years of senior executive experience with Honeywell, Johnson Controls, and Armstrong Fluid Technology to every engagement. He is licensed through LMI Canada and holds a Lean Six Sigma Black Belt, and has personally led improvement programs at Honeywell where productivity improved by about one fifth in year one and throughput grew by roughly two thirds over four years. Clients typically report returns of 10:1 or better on their program investment, though every engagement is customized and outcomes vary by organization. Learn more about Malcolm Gurley or see why choose Gurley Leadership.

Gurley Leadership Solutions Inc. delivers leadership development and organizational improvement programs licensed through Leadership Management International; every engagement is customized and outcomes vary by organization. The diagnostic described in this article is general guidance and not a substitute for assessment of your specific operation. Results described from prior engagements, including the Honeywell figures, describe those engagements and are not a guarantee of future results. Return-on-investment figures, including any 10:1 reference, describe typical results from prior engagements and are not a guarantee of future results. This article is general information, not a proposal and not an offer.

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