Purpose: In the global economy, managers are constantly innovating with their use of available Lean Six Sigma (LSS) tools. Some factors, such as training and the right educational goals, have gained strong global acceptance. The purpose of this paper is to focus on contributions to organizational factors that predict organizations usage of LSS management tools to investigate expectations of project managers prior to LSS education and the extent of fulfilment of those expectations following LSS education in Slovenia, an East European country. Design/methodology/approach: This research provides an empirical analysis of LSS as a learning structure and the characteristics of LSS project managers, followed by the results of an analysis of LSS usage in manufacturing companies in Slovenia following comparative surveys carried out in 2008 and 2013. Findings: The top four essential characteristics for LSS organizations in 2013 include: being an innovative LSS project manager; being an effective communicator; having networking ability; and being a positive thinker. Results from 2008 to 2013 have shown differences in the stages of LSS implementation in Slovenia in these years. Differences were also seen in the level of participants’ LSS training in the studies performed. Originality/value: This paper presents the first ever comparison study regarding the status of LSS education in transition countries, such as in Slovenian manufacturing companies. The study shows the expectations of participants before LSS education and their fulfilment following it. The research is original in many aspects: it includes aspects of external and internal LSS training in companies, it focusses on the manufacturing companies in the transition country of Slovenia and it provides a comparison of results in 2008 and in 2013 and an overview of the progress of LSS education. The paper will be of great value to academics, consultants, researchers, practitioners of LSS, current and future management and owners of companies in Slovenia and other similar East European transition countries. The findings will be useful in business practice for understanding the influences of education and training factors on LSS management tool usage.

This article studies the relationship between changes in the external business environment, a firm’s innovation strategies towards customers, and performance. A model of relations was developed, as well as a hypothesis: “The use of the differentiation strategy has a positive effect on firm’s performance. SMEs that use the differentiation strategy achieve better performance than those who use one of the other strategies (low-cost strategy, focus strategy, or an overtaking strategy)”. The empirical study includes a population of 3007 SMEs and a sample of 163 SMEs. The firm’s performance was measured using financial measures such as return on equity (ROE) and return on assets (ROA), operational measures such as economic value added (EVA) and comprehensive measures such as credit rating (CR). The structural equation modelling (SEM) approach was used for data analysis. Based on the results, we can confirm that changes in a firm’s external environment affect the firm’s strategy towards customers, which influences the performance of a firm. The empirical study confirmed that firms using the differentiation strategy indicate higher performances (ROA, EVA, and CR) than those using any other strategy. Results also show that high-performance SMEs incorporate customer perspectives into strategy selection. The most significant influence on the firm’s selection of the differentiation strategy was found in cases when the firm cooperates with new customers with whom it has not collaborated thus far. SMEs that use a low-cost strategy, focus strategy, or overtaking strategy are less successful than companies that use a differentiation strategy. The developed model of relations in this research has special meaning for researchers and managers in the field of strategic management, strategy selection and implementation, as well as performance of SMEs.

This paper studies the relationship between leadership as an activity of business process management (BPM) and company performance. Business process data about leadership and business processes in SMEs were collected via questionnaires on the population of 3007 SMEs in Slovenia. Aspects of leadership such as the involvement of employees, middle management, customers and suppliers were studied. The financial data of the SMEs of the sample were obtained from publicly available financial statements to assess relative residual income profitability ROE_r and ROE_a. Data analysis was performed using Bartlett’s, Kaiser–Maier–Olkin and nonparametric Mann–Whitney U tests. We confirmed a positive relationship between employee involvement in leadership as an activity of BPM and company profitability. It was proved that companies that involve employees and middle management in improving core business processes to a greater degree are more profitable. Intense involvement of employees in changes in core business processes results in higher company profitability, which has been detected by the higher risk-adjusted profitability measure ROE_a. Companies that involve middle management to a greater degree by leading employees based on their interests are more profitable. The results are important for managers as decision-makers and other company stakeholders, especially those responsible for business process improvements. Theoretical and practical implications and further research possibilities are discussed.

Selection Criteria for Six Sigma Projects in Slovenian Manufacturing Companies Researches reveal that successful six sigma implementation is related to proper six sigma project prioritisation and selection. This research is limited to the selection of six sigma projects in some manufacturing companies in Slovenia. The purpose of this study is to identify what criteria are considered for prioritisation and selection of six sigma projects and how six sigma projects are selected. A research sample is limited by the number of companies which have implemented six sigma so far. The results indicate that Slovenian manufacturing organisations tend to select six sigma projects based on criteria such as customer satisfaction, connection with a business strategy financial benefits, and growth of the organisation. Several tools and techniques such as quality cost analysis, brainstorming and interviews are used to identify and prioritise projects. Identification of the most commonly used criteria to select six sigma projects can help practitioners to select projects based on multiple criteria by using tools and techniques identified in this study. This topic has not been applied in the field of Slovenian manufacturing companies and thus it presents the first study in this field in Slovenia.

Background/Purpose: The aim of this paper is to examine the use of project management practices in Slovenian micro and small firms (MSFs) and to identify project success factors (SF) and project success criteria (SC). Methods: Research was conducted on a sample of 51 micro and 41 small firms in Slovenia. Data about project SF, SC, most influential decision makers on projects, to which extent selected project management tools are used, and about employment of full-time project managers in MSFs was gathered. Descriptive statistics was used for questionnaire survey data analysis. Similarities and differences between project management practices of micro and small firms were studied. Results: Results show that ‘Clearly defined project objectives’ is the most important project SF, and ’Customer satisfaction’ is the most important project SC in MSFs. The owner/director of the firm has been identified as the most influential decision maker on projects. Results reveal that ’Clearly defined project objectives’ are identified as the most important for project success in MSFs. Conclusion: Understanding project SF and SC in MSFs and the involvement of project SF and SC in decision making can improve project management practices in MSFs. Based on the results of this study and other similar studies, it can be summarised that managers and decision makers can improve project success by focusing on a narrow area which is defined as project SF. A focus on clearly defined project objectives in the project planning phase is identified as the most important project SF in MSFs. Results also show that customer satisfaction regarding projects is the most important project SC and impacts project success in MSFs.

Providing the Success of Six Sigma by Proper Project Identification and Selection: Comparison Study between Slovenia and the UK: Results of Six Sigma projects are related to company performance. Successful Six Sigma projects increase customer satisfaction and have many other positive effects on organisations. Success of Six Sigma projects is related to key management decision about how to identify potential projects and which projects to select for final implementation. This research is oriented toward the study of tools used in the phase of Six Sigma project identification and criteria used in the phase of Six Sigma project selection. The purpose of this research is to compare results from manufacturing sector in Slovenia and the UK. Results of this study indicate that management within the organisations tend to identify potential Six Sigma projects with the use of different tools, such as: brainstorming (Slovenia and UK.), followed by Critical To Quality tree (UK.), and interviews and customer visits (Slovenia). Further, the results show that the final decision about Six Sigma projects selection in the UK and Slovenia include different criteria, such as: customer benefit (Slovenia and UK), finance impact (UK) and connection to business strategy (Slovenia). Many companies in the UK as well in Slovenia combine the use of tools and balanced selection criteria at the same time.