Post on 27-Jan-2015
description
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Iowa Office of Lean Enterprise
Lean Six Sigma Deployment
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Presentation Outline
Lean Six Sigma Deployment
Considerations
Foundation
Execution
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What is the Long Term Goal for Lean Six Sigma?
Long term goals should drive the deployment strategies.
A guiding vision is important for change management.
Key long term goals to consider: Enterprise transformation Strategic improvement Problem solving Cost reduction Image
Start with the end in mind.
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Public vs Private Sector Issue Government and private sector organizations have much in
common Pressure to improve service and products Expectations to control or cut costs Large organization behavior
Key differences to recognize during deployment Customers, clients, users and taxpayers Politics Merit system Funding and budgeting
Lean Six Sigma has been successful in government
Lean Six Sigma works in governmentbut differences need to be addressed during deployment.
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How Does Lean Six Sigma Fit ? The “Flavor of the Month” problem
Multiple initiatives confuse employees
Lean Six Sigma requires a sustained focus
Competing initiatives may need to be stopped
Resolve management conflicts early
Determine where Lean Six Sigma fitswithin the entire management system.
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Which Deployment Model To Use?
Impact
Business Transformation Organization wide deployment Major culture change
Strategic improvement Targeted deployment on critical
problems Projects necessary for success
or survival
• Problem solving Specific operational problems Incremental improvements in
organizational performance
Scale
Entire organization Department Project/Section/Team
Organization Readiness Culture Past process experience Management team Stability
Select model based on goals and organization
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Deployment Models
There is no one “right” model
Adapt the deployment to the organization’s situation.
Four models to consider: Enterprise wide (traditional model)
Department/business unit (scalable model)
Targeted (problem solving model)
Grass roots (bottom up model)
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Enterprise Wide Model Characteristics
Top down driven Comprehensive Major culture change Rapid, highly visible deployment
• Deployment considerations Solid leadership from the top management is essential Large infrastructure and full time staff Significant planning and management over time Integration with other management systems Need for common language and problem solving methodology Need to address cross functional processes Five years to achieve lasting culture change
This is the traditional deployment model with a proven track record.
However, it is challenging to execute.
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Department/Business Unit Model Characteristics
Department leadership but enterprise management support Department pilot for enterprise Comprehensive at the department level Culture change
• Deployment considerations Easier to start due to smaller scale Slower pace is possible; scale up after initial success Greater use of consultants and outside training Less integration with management systems Similar to enterprise model but on a smaller scale
Risk of not getting beyond the department level
Good option for a strong mid level leader with a supportive boss.
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Targeted Model
Characteristics Top management leadership Focused on a few specific business problems Driven by a desire for strategic impact Culture change not a deployment objective
Deployment considerations Easy to get started Can work in smaller organizations Quick results because problems are identified ahead of time Infrastructure needs are small; use contracted resources Risk of not sustaining the gains
Good model if resources are very limited.Can build momentum for organization wide efforts.
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Grass Roots Model Characteristics
Originates at the bottom of the organization Highly motivated individuals lead the effort Project or problem specific Culture change not an objective
Deployment considerations Easy to do Track record for sustainable improvement is not good Few if any infrastructure needs Big success can lead to using other deployment models.
Model can produce good results but often fades over timedue to lack of top management attention.
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Deployment Foundation
Unrelenting focus on what matters most
Adopting a deployment maturity model
Understanding deployment customer requirements
Roles and Responsibilities
Deployment accountability
Talent development
Change management
Build the deployment on a firm foundation.
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Focus On What Matters Most
Fully engage leaders in Lean Six Sigma Require leaders to be highly visible in leading Lean Six Sigma Structure engagement in key deployment activities
Lean Six Sigma goal setting Identify the most serious business problems Set explicit Lean Six Sigma goals Link to pay and job performance appraisals
Understand the business goals and the major organization drivers Get leaders to understand their customer requirements
Put deployment accountability where it belongs Executives and managers need to own Lean Six Sigma The deployment strategy needs to get executive ownership quickly
Keep Lean Six Sigma relevant to the leaders!
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Deployment Maturity Model
Continuous improvement is everyone's job Improvement drive by strategy and scorecard Lean Six Sigma is "the way we work" Result: Value delivered to taxpayers & customers
Management team leads process improvement Opportunity-focused clusters Managers applying the Lean Six Sigma methodology Result: Financial benefits & better strategy execution
Black belts and Lean Six Sigma team drive deployment Ad hoc projects focused on financial benefits Learning the Lean Six Sigma tools Result: Financial benefits
Two to five years to a Lean Six Sigma culture.
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Deployment Customer Requirements
C rea te a Le anS ix S ig m a C u ltu re
9 0 % o f B la ck& G ree n B e lt p ro je c ts
w ill d rive im p ro vedp e rfo rm a n ce
Q uality(60%)
S ig n if ica n t a nn u a lim p rove m e n t inm a kin g L S S the
w a y w e w o rk
D e live r sig n if ica n tsu sta ina b le
b e n e fits qu ick ly
Delivery(35%)
K e ep to ta l d ire ctd e p lo ym e n t co s ts
b e lo w 1 0% o fp ro je c t b e ne fits
Cost(5%)
Deploy Lean S ix S igmato help achieve
organizational goals
Know who your customers are and what they expect.
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Roles and Responsibilities
Enterprise/Agency Leaders Vision Goals Organization environment
Enterprise (DOM) Deployment Leader Deployment organization Deployment processes Day-to-day deployment management
Champions/Deployment Leaders Department level deployment Barrier removal Project identification and selection
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Roles and Responsibilities
Project sponsor Project specific support Resource allocation Project focus
Master Black Belt Trains and mentor’s belts Technical resource Coaches deployment champions and managers Manages project clusters
Black Belts Leads projects Mentors green belts
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Roles and Responsibilities
Green Belts Lead smaller projects Key team member on larger projects
Functional Champions Support for deployment in key areas such as finance, HR and IT Policies and procedures
Process Owners Project team member Ownership of the process Cross functional coordination Sustain the project gains
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Organization Structure Options Modify structure for scale of deployment Contract for training Contract for MBBs Functional champions may not be needed Consolidate deployment leadership Permanent Black Belt(s) in DOM
Adapt the structure to the existing organizationand the goals and scale of the deployment.
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Talent Management
Rotate top performers through 2 year assignments as Black Belts.
Lean Six Sigma is an outstanding management development experience. Problem identification Systematic problem solving Managing using data Leadership
Select the best and brightest for black belts. Don’t compromise on talent. Plan repatriation. Make Lean Six Sigma experience a requirement for
advancement. Skip talent management if culture change is not a deployment
goal.Culture change comes from developing leaders,
not from completing projects.
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Change Management Basics Manage change from the start
The biggest deployment risk is not technical Create a formal change management plan
Lean Six Sigma fundamentally changes an organization Anticipate the impact that Lean Six Sigma will have Address problems in the related management systems
The legacy of enterprise initiatives is a common barrier Many will wait it out if given a chance Skepticism should be expected
Get to critical mass quickly Window for change is often very short Take advantage of momentum, start-up good will and leadership enthusiasm
Leadership counts Leadership needs to be consistent, visible and constant Change is hard - don’t do it if you are not committed
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Change Management Basics
Address the people issues early Layoffs Pay Job changes
Understand what helps people change What’s in it for me? Certainty Knowledge
Communicate, communicate, communicate You can’t talk about Lean Six Sigma too much
The principles of change management are well known.The challenge is to apply them.
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Deployment Execution
Understanding the core process and critical Ys Black Belts and Green Belts Selecting projects Supporting infrastructure Training Mentoring and project support Project execution Leadership engagement Metrics
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The Core Process
Measureperformance and
identify gaps
Identify projectopportunities
and writecharters
Select projectsand assign black
belts / greenbelts
Executeprojects
Sustain gainsfrom projects
Understanding the core process helps focus the deployment activities.
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Critical Ys for Deployment
S e le ctp ro jec ts &
a ss ign to G B s
D e ve lopp ro jec t cha rte rs
Id e n tify b u s in e ssp ro b le m s &
p ro jec t id e as
Identify, develop& select projects
(30%)
T ra in B B s& G B s
S e le c t p eo p leca pa b le o fsu ccess asB B s & G B s
P ro v idesu ff icie n t n u m b e rs
o f B B s & G B s
Provide BBs& GBs(25%)
P ro vid e su pp o rtto p ro je c ts
A p p ly L S Sto o ls
A cq u ire &m a na g e p ro je ct
re so u rces
M a na g e p ro je ctta sks
Execute projects(25%)
P ro vid e su pp o rtfo r be ne fitsre a liza tion
P re p are p ro ce sso w n e rs fo r ro le
in sus ta in in g g a ins
E s ta b lisha cco u nta b ilityfo r su s ta in ing
g a ins
M e asu re a nda u d it pe rfo rm an ce
Sustain the Gains(25%)
90% of Black andGreen Belt projectsw ill drive improved
financial performance
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Black Belts and Green BeltsBlack Belts
2 year full time assignment 25 days of training Certification Complete 4 - 8 projects/year Can work anywhere in the
agency About 1 percent of the
workforce Developmental assignment
Green Belts Stay in current jobs 25% time leading projects 10 days of training Certification 1 - 2 projects/year Work primarily in their own
area Greater emphasis on
identifying projects and sustaining the gains
There are differences in the roles for Black Belts andGreen Belts even though they use the same tools.
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Black and Green Belt Lessons Learned Select Black Belts carefully to get top performers Full time assignment for Black Belts increases results Manage project execution and cycle time Address lagging belt performance promptly MBBs need to hold black belts accountable Plan repatriations early Use performance metrics and share the results Make belt expectations very clear
High performing Black Belts are essential!
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Supporting Infrastructure Projects
Project idea and charter development process
Project financial validation process
Project selection process Project management process Audit results process Project database
Training Curriculum Statistical software Master Black Belt support Tools and templates Project report outs
People Selection process Certification process Repatriation for Black Belts Development plans Rewards and recognition Organizational structure Engagement
Build a strong support infrastructure earlyand stay ahead of deployment support needs.
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Training
Types of training Black Belt Green Belt Directors and Administrators Deployment Awareness
Delivery Methods Contracted training Open enrollment In-house
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Training Lessons Learned
Top notch training is critical Delivering in-house training is hard Training needs to include more than Lean Six Sigma tools
Thinking process Project management Leadership and change management CTQs and CTQ flow downs
Address demands for more than Black Belt and Green Belt
training Don’t forget about the people at the top Provide enough general training to avoid confusion
Have good chartered projects to work on during training
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Mentoring & Project Support
Require monthly 1:1 between Master Black Belt and assigned Black Belts to review projects
Encourage Black Belts and project sponsor monthly touch points to eliminate barriers
Hold weekly “study halls” for project help Assign executive sponsors on projects with $500,000 annual
savings and above Assign Black Belts to mentor Green Belts Measure customer satisfaction from project sponsors and project
teams
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Mentoring & Project Support Lessons Learned
Keep process owners/sponsors involved in the projects and communicate often
Have discipline in conducting the monthly project reviews Identify and address issues early Review checklist Recognize the critical leadership development role the MBBs
play Know who is doing well and who isn’t
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Project Execution Lessons Learned Scope projects appropriately Use a formal project management methodology Track project progress monthly Be willing to stop poor projects early Use project cluster management for related projects
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Leadership Engagement
Annual goal setting Monthly staff meeting agenda item Project sponsorship / barrier removal Training attendance Training kick off speeches Attendance at LSS functions
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Leadership Engagement Lessons Learned Leadership wants to help but may not know how to help. Provide
training and hand holding as necessary.
Create and reinforce the expectation that management must lead
Lean Six Sigma Identify projects Provide resources Remove barriers
Measure leadership engagement
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Metrics Outcome measures
Lean Six Sigma project financial benefits Culture change
Deployment management measures Projects completed Project cycle time Projects on-track Active and completed projects per Black Belt and Green Belt Benefits per project Black Belt successful repatriation Charters written Charter inventory Black Belts per employee Projects per employee
Use the deployment to set an example on using data to manage.
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Sustaining the Gains Create a Lean Six Sigma control plan Build a data and performance driven management culture
Organization performance Process performance Lean Six Sigma performance
Strengthen management accountability Maintain the Lean Six Sigma focus on the most important
organization goals and performance gaps Tighter integration between Lean Six Sigma and the enterprise’s
management systems