Lean Six Sigma Solutions
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Studium przypadków Lean Six Sigma
Case study #4 Integration of Strategy and Execution
A business initiative like Six Sigma can reach its full potential in terms of both business results and resource deployment only when they are fully integrated into the regular management structures and business flow of an organization. If not, they will eventually become isolated into silos or program-du-jours that fade away. When we start probing into what companies have done to make sure that Six Sigma projects feed into strategic priorities and contribute to key financial goals and that these links are visible within the organization we see light bulbs going off. "We haven't really done anything like that," is what a lot of people say. If they don't make and publicize these links, however, organizations:
give people no compelling personal reason to support the Six Sigma initiative (What's In It For Me = WIIFM);
might give them a reason to actively resent Six Sigma.
Unfortunately, far too many organizations fall short on both these efforts.
Trying to survive in a market where customer needs change quickly, one company decided to use Six Sigma as part of its core business strategy. They hired a Champion who had extensive experience with Six Sigma, trained several waves of Black Belts, launched a number of critical-to-quality projects. But still the results weren't quite what they hoped it would be.
Two years into the effort, they did a diagnostic review, including interviews with key decision makers throughout the organization. One of the more revealing interviews came from the VPof Product Development a key role in a product-driven organization.
First, he said, he had not been invited to attend any Six Sigma training, nor had any of the Champions or Black Belts sought him out to understand his priorities. Second, he and his staff were keenly aware of all the money and effort being devoted to the Black Belts, especially now that the company had created performance incentives for Black Belts based on project results. "Don't these people realize that what we do here in Product Development has a much greater impact on our customers and our financials than anything the Black Belts do? Why don't my engineers receive bonuses when they develop a really great product?"
This V P and his employees had absolutely no reason to actively support Six Sigma, and instead had grown to view it with some resentment. By ignoring the importance of their commitment and support, the organization missed a prime opportunity to capitalize on all its resources.
The product development staff were very comfortable with several key aspects of Six Sigma, including the scientific method and data analysis, and could have worked effectively on project teams. Some also had the people skills necessary to make effective Black Belts. Getting these people involved could have been accomplished rather easily in the beginning of the deployment; now, it would take a huge amount of effort to overcome the built-up of skepticism.
Like most companies, this one has spent nearly all its Six Sigma budget on the people directly involved in Six Sigma deployment (the newly formed cadre of Six Sigma Champions and Black Belts). Only a small fraction of time and effort was spent communicating with others and explaining the what, why, and WIIFM to those not directly involved. By not paying any attention to "non-direct" resources, companies limit what they can expect from Six Sigma. The companies we've seen who follow this path often have some initial success, but results tail off quickly and are hard to revive.
If your P&L managers don't identify with Six Sigma, if they view it as taking away from their resources rather than adding capability, as eating up vital budgetary allotments rather than investing in what will soon be significant financial payback and activities that help them achieve their goals, they will never fully support your Six Sigma efforts.
It doesn't take much to change the equation entirely. For example, a relatively modest increase in time, effort and dollars devoted to non-direct resources can lead to much broader and sustained support for the initiative, leading to much more significant returns in the long run. Organizations such as Starwood, for example, who have invested heavily in bringing the non-direct resources in the company up to speed, are more likely to generate ever-increasing payback from their Six Sigma investment.
At a minimal level, early education and training in Six Sigma needs to involve all the key influencers in the organization, the five to 10 per cent of the employees who manage/lead the rest of the organization (first line supervisors on up).
For Six Sigma to become the way you do business, the majority of these influencers must truly believe Six Sigma will help them in the portion of corporate strategy that they are personally held accountable for and are paid for. In other words, they must have a clear answer to the WIIFM question ("What's In It For Me?").
Achieving this level of success requires dozens or even hundreds of people coordinating their efforts on thousands of details. But you don't have to go crazy paying equal attention to every single action related to something like Six Sigma. Our experience with companies who are and aren't successful at deploying major initiatives (including Six Sigma) has exposed leverage points that are the biggest determinants of success or failure.
For Six Sigma initiatives in particular, the following ingredients are most critical:
1) The people who fill the role of Champion
In any major initiative, there will be just a few people (or roles) that have a bigger influence on success or failure than practically everyone else combined. The qualities those people have are key to their success.
"Brian" is a highly regarded Champion in one of the premier organizations using Six Sigma. Ironically, he credits his ability to work outside the Six Sigma infrastructure for his success. He learned how to "sell" his ideas. His skills in using tools such as style flex, understanding team roles, and understanding leadership styles helped him navigate through a corporate "jungle" and be successful. It really boiled down to influence management.
In discussions with successful champions like Brian, the majority state that their ability to effectively manage people to influence individuals or groups within their sphere of influence was even more important than their knowledge of Six Sigma.
2) Experiential understanding among all key influencers
Six Sigma will reach its full potential only when all key influencers (and eventually the rest of the organization) view Six Sigma as a vehicle for them to achieve personal success in their roles in the organization.
Hearing a gung-ho presentation is one thing; understanding at a gut level what Six Sigma can and cannot do is another. For senior management and other key influencers to use Six Sigma as a powerful performance engine, they must be familiar with its basic precepts, tools, and requirements. Only then will they be able to effectively guide Six Sigma efforts and allocate sufficient resources to guarantee a reasonable chance of success.
Ideally, every management member should undergo a Six Sigma simulation or other experience, and participate in chartering a project. Such an approach immerses these key influencers in the organization in the discovery and project selection process. It creates an emotional connection with Six Sigma, helps executives and managers begin internalizing the benefits of Six Sigma, and helps ensures that it will be integrated in the management processes and priorities.
3) Project discovery and selection
Six Sigma lives and dies with project discovery and selection. In companies which exemplify Six Sigma success stories, project selection is a well-developed process that involves people from all parts of the organization in project identification. Further, the process uses a wide range of filtering criteria that represent everything from customer impact to quality levels, and, most importantly, linkage to corporate strategy and potential impact on key corporate metrics. The Champions are responsible for managing the queue of projects, and especially involving management in restocking the project pipeline with high-potential candidate projects.
Above all else, projects must support business needs. If management does not know how to do this, or is not prepared to spend the effort on properly structuring processes to select projects, Six Sigma programs may turn into cost cutting exercises that operate as silos of experts able to ferret out opportunities to cut costs (and heads). This causes even more alienation from the organization as a whole. Involving all key managers in project selection creates an instantaneous link between line management and the Six Sigma team, which preempts the possibility of a Six Sigma silo developing.
Scope and quantity are both important criteria in project selection. Choose projects that are too big, and you'll end up with a lot of floundering teams who have trouble finishing in a reasonable timeframe. Choose ones that are too small or insignificant, and you'll never convince anyone that Six Sigma is worth the investment. Choose projects that don't significantly contribute to financial payback (increased revenue or decreased costs), and everyone from line managers to the senior executives will quickly lose interest.
4) Project management
There are two dangers to guard against once projects have been selected and deployed: The first is that they will drop off the radar screen, and six months or a year later people can only wonder what's happened. The second is that there will be too many projects undertaken at the same time, which clogs the pipeline and reduces productivity the same way that too much work-in-process leads to delays and waste in any process.
The first pitfall can be avoided by following a good DMAIC system that includes so-called tollgate reviews by Sponsors and other managers between phases. In addition, it must be clear which people or roles have what accountability and responsibility. Monitoring and accountability provides the means to judge whether a project is on track to contribute to positive business results, or straying from its original charter.
The second pitfall requires judicious deployment of projects and resources. The rule of thumb is that it's better to focus on getting a few high-potential projects done right than to just flood your workplace with dozens of less-important projects. When you have the right resources working on the right things, learning and results are maximized by short project cycle times.
5) Devoting sufficient resources to Six Sigma
Resource allocation is a key factor in determining whether Six Sigma becomes an effective tool for your organization. Too few resources, and it will be difficult for teams to attack meaningful problems and complete their work on-time and within budget. Too many resources, and you have a greater investment in Six Sigma than can reasonably be recouped by project outcomes.
Run and Fix Your Business!
The pressure to continually improve a business has created a tension with the need to simply run it, to do those things that allow you to bring in revenue and pay the bills. When Six Sigma in not integrated into the core of the organization, it is often perceived as a distracting factor, using up a manager's resources and his/her ability to meet objectives.
The way to resolve the tension is to link Six Sigma project selection and management to corporate goals, and explicitly identify WIIFM for key influencers (and other employees). That way, any time and effort devoted to Six Sigma will de facto resolve this tension and contribute to running the business more effectively.
© 2005 Lean Six Sigma Solutions
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LSSS, Lean Six Sigma Solutions, 5S, 6 Sigma, 6Sigma, Analizy, Analizy procesowe, Analyze, Analysis, Audyt, Audytor, AWO, BB, Benchmarking, Black Belt, BPMS, BQC, Brainstorming, Business Process Management System, Capability, CBA, Cellular manufacturing, Certyfikacja, Certyfikat, Champion, Chart, Coaching, Consulting, Control, Control chart, COO, COPIS, Cost & Benefit Analyze, Critical to Quality, CTQ, Cycle time, Data Collection Plan, DCP, Defect, Define, Design of Experiment, DFSS, DMAIC, DMAIC-NPI, DOE, Creative Workshop, Efektywność, Execution, Fishbone, FMEA, GB, Green Belt, Heijunka, Implementacja, Implementation, Improve, ISO, Issue log, Jakość, Jidoka, JIT, Just In Time, Kaikaku, Kaizen, Kanban, Kick-Off meeting, Konferencje, Konsulting, Korelacja, Leader, Lean, Lean Six Sigma, Lean SixSigma, Lean 6Sigma, Lean6Sigma, Lean 6 Sigma, Lean manufacturing, Lean management, Lider, Master Black Belt, MBB, Mapping, Mapowanie, Measure, Measurement System Analysis, Mediana, Memory jagger, Mentoring, Metodologia, Metodologia Lean, Minitab, MSA, Muda, NPI, Normy, Odchylenie standardowe, Operational excellence, Operations, Optymalizacja, Pareto, Parking lot, Plan Zbierania Danych, PM, PMI, PMO, Poka Yoke, Prince 2, Prince2, Proces, Process, Process management, Produktywność, Project, Project charter, Project management, Project Management Office, Projekt, Projekty, QNI, Quality, Quality Net Income, Regresja, Satandardisation, Scheduling, Seiketsu, Seiso, Seiton, Seminaria, Seminarium, Serii, Shitsuke, Single Piece Flow, SIPOC, Six Sigma, SixSigma, SMED, SPC, Sponsor, Standaryzacja, Statistical Process Control, Statistics, Statystyka, Strata, Supermarket, Szkolenia, Szkolenie, Takt time, Team, Team composition, Team contract, Total Quality Management, Toyota Production System, TPS, TPM, TQM, Transfer function, Value Stream Map, Value Stream Mapping, Variation, Variation management, VoC, Voice of Customer, VSM, Waste, Wdrożenie, Work Out, Work-Out, Workshop, Wydajność, Yield, Zarządzanie procesami, Zarządzanie zmiennością, Zmienność, LSSS, Lean Six Sigma Solutions, 5S, 6 Sigma, 6Sigma, Analizy, Analizy procesowe, Analyze, Analysis, Audyt, Audytor, AWO, BB, Benchmarking, Black Belt, BPMS, BQC, Brainstorming, Business Process Management System, Capability, CBA, Cellular manufacturing, Certyfikacja, Certyfikat, Champion, Chart, Coaching, Consulting, Control, Control chart, COO, COPIS, Cost & Benefit Analyze, Critical to Quality, CTQ, Cycle time, Data Collection Plan, DCP, Defect, Define, Design of Experiment, DFSS, DMAIC, DMAIC-NPI, DOE, Creative Workshop, Efektywność, Execution, Fishbone, FMEA, GB, Green Belt, Heijunka, Implementacja, Implementation, Improve, ISO, Issue log, Jakość, Jidoka, JIT, Just In Time, Kaikaku, Kaizen, Kanban, Kick-Off meeting, Konferencje, Konsulting, Korelacja, Leader, Lean, Lean Six Sigma, Lean SixSigma, Lean 6Sigma, Lean6Sigma, Lean 6 Sigma, Lean manufacturing, Lean management, Lider, Master Black Belt, MBB, Mapping, Mapowanie, Measure, Measurement System Analysis, Mediana, Memory jagger, Mentoring, Metodologia, Metodologia Lean, Minitab, MSA, Muda, NPI, Normy, Odchylenie standardowe, Operational excellence, Operations, Optymalizacja, Pareto, Parking lot, Plan Zbierania Danych, PM, PMI, PMO, Poka Yoke, Prince 2, Prince2, Proces, Process, Process management, Produktywność, Project, Project charter, Project management, Project Management Office, Projekt, Projekty, QNI, Quality, Quality Net Income, Regresja, Satandardisation, Scheduling, Seiketsu, Seiso, Seiton, Seminaria, Seminarium, Serii, Shitsuke, Single Piece Flow, SIPOC, Six Sigma, SixSigma, SMED, SPC, Sponsor, Standaryzacja, Statistical Process Control, Statistics, Statystyka, Strata, Supermarket, Szkolenia, Szkolenie, Takt time, Team, Team composition, Team contract, Total Quality Management, Toyota Production System, TPS, TPM, TQM, Transfer function, Value Stream Map, Value Stream Mapping, Variation, Variation management, VoC, Voice of Customer, VSM, Waste, Wdrożenie, Work Out, Work-Out, Workshop, Wydajność, Yield, Zarządzanie procesami, Zarządzanie zmiennością, Zmienność
LSSS, Lean Six Sigma Solutions, 5S, 6 Sigma, 6Sigma, Analizy, Analizy procesowe, Analyze, Analysis, Audyt, Audytor, AWO, BB, Benchmarking, Black Belt, BPMS, BQC, Brainstorming, Business Process Management System, Capability, CBA, Cellular manufacturing, Certyfikacja, Certyfikat, Champion, Chart, Coaching, Consulting, Control, Control chart, COO, COPIS, Cost & Benefit Analyze, Critical to Quality, CTQ, Cycle time, Data Collection Plan, DCP, Defect, Define, Design of Experiment, DFSS, DMAIC, DMAIC-NPI, DOE, Creative Workshop, Efektywność, Execution, Fishbone, FMEA, GB, Green Belt, Heijunka, Implementacja, Implementation, Improve, ISO, Issue log, Jakość, Jidoka, JIT, Just In Time, Kaikaku, Kaizen, Kanban, Kick-Off meeting, Konferencje, Konsulting, Korelacja, Leader, Lean, Lean Six Sigma, Lean SixSigma, Lean 6Sigma, Lean6Sigma, Lean 6 Sigma, Lean manufacturing, Lean management, Lider, Master Black Belt, MBB, Mapping, Mapowanie, Measure, Measurement System Analysis, Mediana, Memory jagger, Mentoring, Metodologia, Metodologia Lean, Minitab, MSA, Muda, NPI, Normy, Odchylenie standardowe, Operational excellence, Operations, Optymalizacja, Pareto, Parking lot, Plan Zbierania Danych, PM, PMI, PMO, Poka Yoke, Prince 2, Prince2, Proces, Process, Process management, Produktywność, Project, Project charter, Project management, Project Management Office, Projekt, Projekty, QNI, Quality, Quality Net Income, Regresja, Satandardisation, Scheduling, Seiketsu, Seiso, Seiton, Seminaria, Seminarium, Serii, Shitsuke, Single Piece Flow, SIPOC, Six Sigma, SixSigma, SMED, SPC, Sponsor, Standaryzacja, Statistical Process Control, Statistics, Statystyka, Strata, Supermarket, Szkolenia, Szkolenie, Takt time, Team, Team composition, Team contract, Total Quality Management, Toyota Production System, TPS, TPM, TQM, Transfer function, Value Stream Map, Value Stream Mapping, Variation, Variation management, VoC, Voice of Customer, VSM, Waste, Wdrożenie, Work Out, Work-Out, Workshop, Wydajność, Yield, Zarządzanie procesami, Zarządzanie zmiennością, Zmienność