Categories
Uncategorised

FinOps Forward Series > Building a Foundation for Real, Measurable Success


DMAIC and SIPOC: Building a Foundation for Real, Measurable Success

In the rush to solve problems and deliver results, teams often jump straight to solutions without fully understanding the problem. However, this rush to “fix” can lead to wasted time, missed targets, and ultimately a lack of tangible benefits. By using tools like DMAIC (Define, Measure, Analyze, Improve, Control) and SIPOC (Suppliers, Inputs, Process, Outputs, Customers), organizations can slow down the process and build a roadmap that ensures a deep, aligned understanding of both the problem and its scope.

DMAIC, originating from Six Sigma, provides a structured approach to problem-solving that avoids the pitfalls of assumptions and premature solutions. The Define phase requires a precise articulation of the problem and clear alignment on objectives. This sets the stage for success by focusing everyone’s efforts on a shared understanding of what’s wrong. Then, by using SIPOC, teams can visualize all components—from suppliers to customers—making it easier to see how each element impacts the overall process. By clarifying the boundaries of the problem with SIPOC, we reinforce the scope and build a stronger case for realistic, measurable improvement.

Understanding and defining the problem may sound simple, but it’s the most complex part of the journey. As DMAIC suggests, measurement follows definition, allowing us to quantify the issue and set realistic benchmarks. Without solid, agreed-upon measurements, any analysis, improvement, and control plan is built on a shaky foundation. As Eliyahu Goldratt, author of *The Goal*, often highlighted, a lack of clear problem definition means we’re optimizing symptoms, not solving the root cause. This lack of clarity can prevent organizations from realizing the full impact of their solutions.

Once the problem is clearly defined and understood by all stakeholders, it’s essential to achieve consensus on the scope, potential solutions, and expected benefits. Only with this consensus can we quantify benefits and lay out realistic plans that reflect both technical and human needs. This structured agreement helps avoid project roadblocks caused by differing expectations and unmet goals. SIPOC and DMAIC become invaluable in achieving this consensus, aligning every stakeholder from start to finish.

In sum, effective use of DMAIC and SIPOC brings clarity, focus, and alignment to problem-solving by ensuring that the team fully understands the problem and scope before jumping into solutions. This foundation is what drives real, measurable success.

Key Takeaways
Begin with a clear problem definition and scope to avoid wasted resources.
Use DMAIC and SIPOC to align stakeholders and ensure shared understanding.
Achieve consensus on benefits and measurement before starting implementation.


Tim, a former programmer, transitioned into change management, deploying solutions for trust and company service providers as well as for non-technology sectors. His expertise spans the ‘privatization’ of public sector utilities, into companies, and post-merger integrations. These require analysis of target operating models, process improvements, and strategies to enhance productivity and commercial success. Typical feedback … Tim’s style, manner and pragmatic approach has been very valuable. His contribution will have a positive and lasting effect on the way we work as a team.

MBA Management Consultant | Prince2 Project Manager, Agile Scrum Master | AMPG Change Practitioner | BeTheBusiness Mentor | ICF Trained Coach | Mediation Practitioner | 4 x GB Gold Medalist | First Aid for Mental Health | Certificate in Applied Therapeutic Skills

Recommended Books: The Goal: A Process of Ongoing Improvement by Eliyahu M Goldratt

The Phoenix Project: A Novel about IT, DevOps, and Helping Your Business Win by Gene Kim, Kevin Behr, et al.

Scrum: The art of doing twice the work in half the time by Jeff Sutherland, JJ Sutherland, et al.