Integrating Six Sigma With Strategic Planning at Cigna

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 2

Integrating Six Sigma with Strategic Planning at Cigna

Abstract

Cigna Corp. is a global health service company with 95 million customers around the world and
more than 40,000 employees worldwide. The company provides insurance and related products and
services in the United States and internationally. It operates through Integrated Medical, Health
Services, International Markets, and Group Disability and other segments. This case study showed how
Cigna used the Six Sigma to adapt to dramatic changes in the healthcare industry. We will discuss how
the Six Sigma helped in Cigna’s strategic planning.

Key Issues for Discussion

1. Suggest how Six Sigma might be used to help Cigna address its five strategic imperatives? Is their
approach consistent with the discussion of Six Sigma and competitive strategy at the end of this
chapter?
- Cigna has five strategic imperatives:
a. Establish a meaningful cost advantage relative to the competition.
b. Help improve the health and well-being of members and the people Cigna insures.
c. Bring innovative products and services to market.
d. Become the partner of choice to its customers.
e. Create a winning environment in the organization.

Cigna’s Holistic Six Sigma Model shows how Six Sigma is being used to help address the five
strategic imperatives. This approach appears to be consistent with the discussion of Six Sigma
and competitive strategy at the end of this chapter. In order for this to be effective, the Six
Sigma must be integrated into the strategic planning processes. By using the Six Sigma
methodology, the company will be able to define which areas of improvement to pursue, where
the organization should focus its resources to enhance product offerings, and how to gain a
sustainable competitive advantage. The Six Sigma is effective for improving business processes.

2. Can you think of specific types of Six Sigma projects that might support Cigna’s strategic
imperatives?
- Six Sigma projects that might support Cigna’s strategic imperatives could include:
a. Cost reduction projects that will help establish a meaningful cost advantage relative
to the competition.
b. Health improvement projects to help improve the health and well-being of
members and the people Cigna insures.
c. Product development to bring innovative product and services to the market.
d. Improve public relations to become the partner of choice to its customers.
e. Communication, training, and celebration of successes in order to develop a winning
environment.
Conclusion

Cigna’s implementation of the Lean Six Sigma principles has helped the organization become an
effective advocate for lasting change in the health care industry, especially, in reducing health care costs
and improving the quality of healthcare services. The Six Sigma also helped Cigna eliminate the need to
take corrective action, redundancies, and wasted time. With Lean Six Sigma, the company was able to
get better quality outcomes in less time which reduces costs.

You might also like