Creato study of Lean and Six Sigma demonstrates returns of 7:1

Scottsdale, Arizona

Creato announced today results of a study of completed Lean and Six Sigma projects with the aim to validate high rates of return. In all, the study included 150 projects across 10 different healthcare organizations that have worked in some capacity with the firm. The projects were initiated and completed over the past 10 years, making this one of the most comprehensive studies ever undertaken on completed performance improvement projects.

Previous studies, including one published in 2003 by iSixSigma, claimed a 6:1 return on investment. The Creato study actually demonstrated a 7:1 return.

“We were always confident that our clients enjoyed significant tangible and intangible benefits from these projects,” notes Ian R. Lazarus, the firm’s founder, “but we were also skeptical of such lofty claims we would read about in the media. These results add to the growing evidence that performance improvement, done properly, can yield huge returns.”

Holy Family Memorial Hospital (Manitowoc WI) was among the participants with several projects submitted to the study. “Holy Family Memorial has experienced tremendous ROI since capturing outcomes in 2008,” reported Mark Herzog, the system’s Chief Executive Officer. “As of 2012, our cumulative improvement journey has resulted in an ROI of 8:1. We are extremely pleased with these results that so greatly validate our culture shift to making Lean Six Sigma improvement part of our standard operating procedure.”

In the Creato study, efforts were made to subtract the actual costs of each project by accounting for staff time, overhead, and senior management oversight. Returns were capped at 24 months after project closure. The average project yielded $325,000 in return after expenses. The range was from a low of $60 to a high of $3.75 million.

About Creato: Creato Performance Solutions has been providing technologies and training to support corporate performance improvement for over 20 years. Today, Creato is a leading provider in the U.S. of Lean and Six Sigma deployment, and Project Portfolio Management products including the COMPASS® Quality Management System. Their combined classroom and online training programs are available a variety of other channel partners across the U.S. A recent study of 150 projects completed by Creato clients over the past 10 years revealed an average return on investment of 7:1.

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