Gain sharing and lean Six Sigma are highly complementary systems that are mutually reinforcing. While both efforts are excellent by themselves in improving productivity, quality, and a variety of other measures, they are much more powerful together. Both systems are based on the principles of continuous improvement, measurement, ingenuity, employee involvement, and teamwork.

Some may mistakenly view these two approaches as competing initiatives. Both approaches focus on change. However, lean Six Sigma’s focus is more related to the technical side of change, and gain sharing’s focus gravitates more to the social side. Another important distinction, unlike the lean Six Sigma concept, gain sharing by definition shares the monetary gains from improved performance with the total work force.

The lean Six Sigma roots

Compared to gain sharing, the two parts of lean Six Sigma—lean manufacturing and Six Sigma—are relatively new. Six Sigma has its roots in the mid to late 1980s. Motorola is one of the more heralded companies to drive its performance initiatives with Six Sigma and a major focus on customer service and product quality. Today’s Six Sigma companies use its structured tools to reduce cycle time, eliminate product defects, and increase customer service. The focus is on “working smarter” and doing things right the first time.

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