Posted by: meikah | 27 December 2009 | 8:27 pm
Lora Bentley of IT Business Edge interviews Teresa Bockwoldt, CEO and co-founder of Sarbanes-Oxley and SAS compliance solutions provider Vibato, and finds out how the company and its Vibatoâ€™s â€œSOX Compliance Made Simpleâ€ methodology came to be.
We did it using Six Sigma methodologies in terms of providing consistencies and efficiencies and putting in a structure that would work rather than just trying to throw something at this requirement. A lot of people try to put a band-aid on it, and then when theyâ€™ve got more time, they try to start looking at it, and they say, â€œWhat can we do to rationalize this and not just make it something we throw money at?â€ Thatâ€™s what we did in Year 2.Â
Filed under: Quality, Sarbanes-Oxley, Sarbox Compliance, Six Sigma
Posted by: meikah | 20 August 2009 | 8:35 pm
According to Wikipedia:
The Sarbanes-Oxley Act of 2002, also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called Sarbanes-Oxley, Sarbox or SOX, is a United States federal law enacted on July 30, 2002. The legislation set new or enhanced standards for all U.S. public company boards, management and public accounting firms. The act contains 11 titles, or sections, ranging from additional corporate board responsibilities to criminal penalties, and requires the Securities and Exchange Commission (SEC) to implement rulings on requirements to comply with the new law.
An article on iSixSigma narrates a story about a SOX-compliant company that one day finds out that its financial records are all messed up. What got the company panicky was that the mess could have the company end up in jail.
What saves the company is the Lean Six Sigma and the quick action from Six Sigma Black Belts. After the mess has been resolved, these are what the company learned:
- Sarbanes-Oxley requires companies to accurately control their financial reporting and holds executive management responsible for these controls.
- Financial processes are just that â€“ processes. They can be improved using Lean Six Sigma, just like any other process. Statistical process control charts are especially effective ways of monitoring the performance processes, including those in finance.
- Segmenting inputs to financial measures is often helpful in identifying the key suspects in performance variation.
- Some financial measures (like variances and controls) sound like statistical terms though they are completely different. Operational definitions are needed to prevent confusion.
Filed under: Lean Six Sigma, Sarbanes-Oxley, Six Sigma, Six Sigma Organizations
Posted by: meikah | 30 June 2008 | 9:20 pm
Six Sigma is about process improvement, while Sarbanes-Oxley or SOX is about compliance. If the two shall meet, then the organization will be doubly benefitted. If you may recall a SOX compliance was brought about after major and accounting scandals like Enron shocked the public.
I believe compliance is part of process improvement, thus all the activities related to compliance will bring about improvement and enhance sustainability of operations.
An article on CIO Today, presents a good discussion on how Six Sigma and Sarbanes-Oxley can complement each other.
There are striking similarities between Six Sigma’s proven process improvement methodology, DMAIC (define, measure, analyze, improve and control), and compliance activities such as controls documentation, testing and remediation. Both require definition of objectives, measurement of performance, remediation of weaknesses and continual monitoring. Companies that have already performed documentation and testing activities for compliance are in an excellent position to identify process improvement opportunities.
In the billing process, for instance, a key objective is to accurately invoice customers. By documenting and testing the billing process, companies can identify key performance indicators to measure the health of their billing process. An analysis of billing errors can streamline the process.