Six Sigma Leadership & Culture
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Transcript of Six Sigma Leadership & Culture
April 13, 2023
6 - Leadership & CultureShifting the Paradigm - To ensure success
Bill PughVP Operations, Océ North America
Discovering the Reality of Lean Six Sigma in Manufacturing, Services, & Transactional Environments Dallas TX – Dec 2,3 2004
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 20232
Agenda
Océ (the commercial that allows me to be here)
Success vs Failure • The basic problem and qualitative findings
Utilizing the tools of 6• A more structured approach
Project findings• Recommendations
What must be done
An approach• A roadmap for a successful 6 journey
Conclusion
April 13, 2023
Who we are, what we do
Océ
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 20234
OcéWho we are & what we do
We are….• ~$3 billion sales• Technology leader for over 125 years• Headquartered in the Netherlands• U.S. accounts for ~40% of the company• Publicly traded in Amsterdam and the NASDAQ• 22,000 employees• 2000 R&D personnel (imaging technology and software)
We serve the enterprise with integrated document management solutions
What we do…• Provide industry-specific document processing & management
solutions• High Speed Digital Print• Wide Format• Facilities Management
• Throughout the organization• Office, Data Center, Central Reproduction, Transaction Printing• Design Document Management Systems• Display Graphics
• Analytical (data driven) consultation• Document management staffing
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 20235
DocumentsDocuments create problems….… Océ delivers solutions
Did you know?• Knowledge workers spend up to 50% of their time trying to find documents• 2 to 3% of every expense dollar is eaten up by printing costs• 6 to 15% of a company’s expense goes into document creation, distribution, maintenance, and disposal
Document management, is not a core competence of most organizations
• Some organizations have a few experts, but they generally focus on just a department or two.
• Most customers only use part our expertise and capabilities• Technology is moving too fast for most enterprises to optimize on their own
This is where we come in….
Océ provides effective document production and management solutions, providing significant savings
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 20236
We are known by the customers we keep……& the solutions and savings we provide
Reduced document retrieval from 3.75 days to under 5 minutes
Management of 400,000 infrastructure drawings, some from the 1880’s
Automation of land plat storage and customer self-service retrieval
Eliminated 1,300 filing cabinets, reduced staffing 90%, increased file distribution accuracy 78%
Print on demand - training manuals
Maximized efficiency of 55 million monthly statement printing requirement
Unification of mail processes and 6 productivity for continuous improvement
Management & staffing of enterprise-wide printing and wide format drawings, operating 35 production centers – reduce cost 45%
Consolidated 9 printing centers into 1, staffed by Océ personnel
April 13, 2023
The basic problem, and qualitative findings
6 – Success vs Failure
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 20238
Large numbers of 6 efforts are falling well short of expectations – many are failing
Many organizations have embraced 6 with tremendous fanfare, and fairly quickly this miracle program, quietly fads away.
• Potential to deliver significant results
• Little success to show for the effort
• Leaving behind:
• a large bill for the project team
• disillusioned Black & Green Belts
• a bitter taste in the sponsors mouth
With 6….…. Failure – should not be an option
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 20239
Common wisdom has clearly identified the cause and the culprits
A quick, qualitative, analysis reveals that the top reasons given for failure are:
• Leadership – CEO, did not provide sustained support
• Culture – People, did not embrace change
• Internal systems & processes – not robust, lack metrics
This is becoming all too familiar……Frankly, I have seen this movie before,
and I did not like it the first time.
April 13, 2023
A more structured approach
Utilizing the tools of 6
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202311
Using 6methodology to dig past common wisdom
Define the problemMany 6 programs fail.• Initial hypothesis: poor leadership, culture, or lack of robust systems
My challenge ……Use tools to identify the defect and to develop a solution
MeasureSuccessful / Failure• Met expectations or notAnalyzeGetting to the root cause• Y f X, X, X, X, …..
ImproveCommon sense and simple ANOVA reveals the true root cause• The classic low hanging fruit
ControlGreat news, the solution is within our capability and control
(DMAIC)
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202312
Consider this my final presentation for my 6 project
Problem statement
6 programs fail too frequently
My initial finding – it is a leadership issue …
… And, there is more to leadership that we generally realize
DefectUnsuccessful 6 implementation or results that fall short of expectations
GoalIdentify the root cause – recommend a solution
April 13, 2023
Recommendations
Project findings
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202314
Benchmarking leaders……Great leaders drive & create great change
They have vision, direction, fortitude….…. They march to their own drummer
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202315
These leaders had a huge advantage
It is rare to have such advantages
They had vision• They may not have known exactly where they
were going, but they knew they did not like where they were
They had direction• They were the experts & the leaders;
they could drive the change
They had fortitude• They kept at it in face of tremendous
odds and numerous nay-sayers
They had time• Because they were first, they did not
have a deadline to make
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202316
Unfortunately, most of us are not blessed to have such great leaders, nor be the first
Not Great, Not First… …But they want to succeed
Our leaders are not extraordinary, and they are not schooled in 6
• On average, most are average
• 6 was not a “requirement” when they were climbing
6 has been around for a while
• Deming, SPC, 3 – 1940s
• Motorola & Mikel Harry - 1980s
• Allied Signal & Larry Bossidy – early 1990s
• GE & Jack Welch – mid 1990s
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202317
You need to help them become great 6 leadersSet them up for success
• Know the organization and its capabilities
• Manage expectations
• Set attainable goals
• Use the right tools
Coach, mentor, & lead your leader / sponsor
• Ensure there are no surprises
• Show them the way
• Make them look good
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202318
Y f X
And that is the paradigm shift…
… It is not about them,
….It is about YOU!
Great Leadership
f
Great Followership
Followership is from Greg Reid, SVP & Chief Marketing Officer, Yellow Freight
April 13, 2023
How to be a great follower – creating great leaders
So what must you do?
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202320
First, know why you are thereHired gun
• Come in, solve a few nasty problems, move on
• Point of the sword – Leader using you to drive change, at your expense
• Leader wants a few quick hits
Develop a sustainable 6 culture
• Data driven
• Continuous improvement
• Leader wants to be in it for the long haul
Here, we are addressing the second option
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202321
You need to help them become great 6 leadersSet them up for success
• Know the organization and its capabilities
• Manage expectations
• Set attainable goals
• Use the right tools
Coach, mentor, & lead your leader / sponsor
• Ensure there are no surprises
• Show them the way
• Make them look good
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202322
Do some researchknow your culture, process, population
Is your culture one accepting and excited about change?• …Is change management required
What is your process entitlement?• …Should you improve or replace
Do you have consistent & repeatable processes?• …Should you be focusing on standardization
Are you employees ready for the quantitative requirements of 6? Are they afraid of math?• …Should you start with some of the basics
Be prepared, know what you are getting intoShare your learnings with your leader
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202323
Setting expectationsInternally• Leadership• Organization• Potential team members
Externally• Customers• Suppliers• Share holders
Style• Be precise, data driven, and deliver
Under promise….…. Over deliver
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202324
Managing the culture is not difficult if you stick to the basics
Nothing succeeds like success
Leaders Follow Success
CultureFollowsPeople
PeopleFollowLeaders
Success BegetsSuccess
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202325
Nurture the culture you desire
Who gets the management awards?• The fire fighters who jump in when there is a big issue• The people who do not have problems because they are constantly
addressing the little issues so that the big ones never occur.
Teach basic problem solving• Not sexy – but it delivers
Constantly coach and keep leadership informed• They need to know what is coming next
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202326
Question - Do you build an organization or create a success?
There is no right answer• Driving this dialogue with you leader will demonstrate
your knowledge of the issues at hand• Driving this dialogue with your leadership team will
aligned them with your success
Knowing the culture will help you reach the correct answer for your situation
Most leaders have built something from the ground up• They understand the difference between small
immediate successes and building an organization to generate larger successes later
• They understand the time and payoff tradeoffs. They expect you to provide a plan, dates, milestone, etc. This should be agreed to at the start.
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202327
Know what tools to use when……use and teach the appropriate tools
100% bad data or no data…• …Does not support additional analysis
50% rolled throughput yield…• …Does not benefit from regression analysis
20% Customer dissatisfaction…• …Does not need a designed experiment (DOE)
10% scrap or rework…• …Does not require response surface analysis
Just because you can, does not mean you should
Misuse of tools is the #1 cause of:• Black Belt and Green Belt frustration, fatigue, and burnout• Organizational mistrust and disillusionment
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202328
To speak about 6 as a quick hit wonder is a disservice
Be accurate & precise in your discussions• 6 is unlikely to cut your costs 50-90%
• But it can reduce your rework 90%• 6 is unlikely to increase customer satisfaction 25%
• But it can reduce defects 90% • 6 is unlikely to increase your output 10-100x
• But it can increase Rolled Throughput Yield to above 95%
Leaders may not know 6, but they know snow-jobs
• And if they don’t, those in the organization will see it• And they will set you up to fail
Do not sell instant results or snake oil… Let the results do the talking
April 13, 2023
A roadmap for a Successful 6 journey
An approach
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202330
6 is a journey
Clean it up and standardize
• 5S, Process Mapping, TPM, & ISO
Make the process repeatable, remove variation
• “Practice does not make perfect, perfect practice makes perfect” – Coach John Woodward (won 10/12 NCAA Championships)
• Pick the best process and improve• Do not have 20 different processes and allow people to pick which they prefer
Develop measurements & metrics
• Determine what to measure – • Customer focused CTQs
• Performance KPI
• Gage R&R
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202331
Basic tools start the 6 journey
Get your measurements / metrics right• Know what to measure, what matters
• Voice of the Customer• CTQ Tree – Reverse NCAA (Bill Dobbs, GE ~1985)
• Performance KPI (Key Process Indicators)• Make sure the metrics are consistent & accurate
• Gage R&R• Sanity check
Not sexy…… But it works, it will deliver solid results
FMEAScatter plotsCause & effect diagrams Rolled Throughput YieldControl Charts
Process Maps – Post-itsBrainstormingAffinity DiagramsParetoVideo tape
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202332
Make your leader(s) look smart
Coach them
• Teach them the basics
• Provide them with a few key stories
• Introduce them to people that have succeeded
When the leader looks and acts smart……. you win!
Prepare them for every 6 meeting
• Briefing books
• Run through before
• Notes on key success and nasty issues
April 13, 2023
The one page summary
In conclusion
6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 202334
Successful 6 is led…Great leadership is the result of great followership
When 6 fails, it can usually be traced back to:
• Poor expectations management
• Poor followership
• 6 leaders lack of process & organizational knowledge
Leadership & Followership – it’s a Partnership…… You make it happen
Keys to success
• 6 leaders who are great followers
• Solid understanding of the environment
• Set, manage, exceed expectations
• Coach your leaders, make them great
April 13, 2023
Thank you