Operational excellence is a competitive advantage. It is especially true in the technology arena, where differentiation can be small or is largely commoditized. Each error made may mean loss of a customer or worse yet company death. Transaction Processing is one such challenging business. Robustness of underlying processes and their sustained execution drives profitability and customer satisfaction - transaction after transaction - millions or even billions of times!

Therefore, the transaction processing industry, more than ever before, needs educated talent with a mind-set focused on execution and operational excellence. It is no surprise then that the transaction processing industry is seeing a significant influx of former General Electric (GE) executives and staffers.

Some transaction processing industry executives, including Suresh Sharma, a former GE executive and certified Six Sigma black belt, think GE programs such as its Six Sigma process are one of the reasons why its executives are so attractive to companies in the transaction processing industry.

"With its Six Sigma rigor the company developed a unique 'operational DNA' among its employees, who strive to continuously improve the efficiency and reliability of the system. Each error made is measured as a defect in the process," said Sharma, who is currently an advisor on the Trans Atlantic Systems team to help sustain continuous excellence.

According to GE, Six Sigma is a "highly disciplined process that helps [GE] focus on developing and delivering near perfect products and services." In effect, Six Sigma is about delivering true quality to the end user - a "customer-focused, data driven philosophy." In order to achieve Six Sigma quality, there must be no more than approximately three mistakes per million transactions. The company identifies three components of quality: customer, process and employee. All employees are trained in the techniques of Six Sigma, and select employees reach the status of Black Belt and Master Black Belt, which are both full-time positions.

It doesn't take a stretch of the imagination to see how Six Sigma elements could be very useful - and important - in the transaction processing industry. After all, this industry relies heavily on customer service and developing solid, secure data processes.

Some transaction processing companies are taking the lead and implementing Six Sigma or similar programs. In fact, CheckFree has used Six Sigma for the past six years.

Equifax is the most recent company to hire a top GE executive. Richard "Rick" Smith was hired to succeed Thomas Chapman as Equifax's new chief executive officer and chairman-elect, and will take the helm on Sept. 19. Prior to joining Equifax, Smith spent 22 years at GE. His most recent position at GE was chief operating officer of GE Insurance Solutions, where he led all business units for the $10 billion global insurance group. In addition, Smith has held the CEO position for three different business groups within GE since being hired as an officer in 1999.

Within the past year, Equifax also has hired another of its key executives from General Electric. Robert Webb is the chief technology officer (CTO), managing Equifax's global information technology infrastructure. Prior to joining Equifax, Webb held a number of leadership positions within GE, most recently he was the managing director of Canadian vendor financing. He was also the chief information officer (CIO) for several GE divisions during his tenure with the company.

While not specific to the transaction processing company, perhaps one of the most well-known GE transitions involves Atlanta-based Home Depot. Home Depot's CEO, Bob Nardelli, joined the corporation from GE, where he was the president and CEO of GE Power Systems. Since joining Home Depot four years ago, sales have increased 60 percent, turning a $46 billion company into a $70 billion company.

Additionally, half of Home Depot's eight executive vice presidents have worked for GE in the past. Carl Liebert, III, executive vice president and responsible for the execution and operation of all United States and Mexico Home Depot stores, was a Six Sigma Master Black Belt for GE's consumer products division.

While Six Sigma and its emphasis on perfecting procedure may be one reason companies in the transaction processing industry are recruiting top GE executives, it is not the only reason. GE as a corporation - not just its Six Sigma process - has long been a corporation known for producing extremely talented, top-notch executives. Many employees spend years working their way up through different businesses within GE and, inevitably, some leave to take the helm at other companies. And - as is common with such transactions - they often recruit key members of their staff to join them.

Of course, none of this is bad for the transaction processing industry! Regardless of the reasons behind recruitment, as the industry continues to attract high-quality executives, it can only continue to grow. As technology continues to evolve and more and more Americans choose to conduct their financial affairs via electronic means, the transaction processing industry will increasingly become not only desirable of top-notch executives from companies such as GE, but also highly desired by the executives themselves.