back to basics julie brignac, president
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Back to Basics
Julie Brignac, PresidentQuantumSix Solutions, Inc.
October 2009
Agenda
• Background
• Deployment Success Elements
• Forming the Deployment Team
• Common Failure Modes
• Sustainability ~ Revitalization
©2009 QuantumSix Solutions, Inc. All rights reserved.
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About QuantumSix • A niche consulting and training development firm in the areas of
Business Process Management and Procurement
• In BPM, focuses on small to mid-size companies in need of deployment support or maturity assessments
• In Procurement, partners with PMMS Consulting Group to offer a full portfolio of consultancy and training services and products
• Specializes in both online and live training for– Executive Lean Six Sigma - Introduction to Lean Six Sigma– Project Management - Introduction and Intermediate– Practical Negotiation Lean Principles– Commercial Awareness
©2009 QuantumSix Solutions, Inc. All rights reserved.
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• Former experience in Lean Six Sigma and Procurement with– DuPont, Allied Signal/Honeywell, Newell Rubbermaid-
Sanford Brands, Brambles Limited
• Functional focus– Finance, Manufacturing Operations, Procurement,
Supply Chain, Lean Six Sigma and Quality– Lean Six Sigma deployment leader for Brambles
Limited and executive sponsor at Sanford– Track record = project benefits >$300M since 2002
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My Background
©2009 QuantumSix Solutions, Inc. All rights reserved.
• Senior Management Commitment
• Culture Change and Communication
• Resources
• Training and Knowledge Management
• Project Management
• Financial Validation Infrastructure
• Metrics
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Key Success Elements
©2009 QuantumSix Solutions, Inc. All rights reserved.
Steps to a Successful Deployment
• Vision• Strategy• Communication Plan• Senior Leadership
Commitment• Establish goals for
success• Program identity• Operating system
definition
Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
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• Resource development plan
• Training plan and execution
• Employee communication plan
• Project/effort prioritization and selection process
• Financial validation process implementation
• Measurement system development
• Define elements of the Balanced Scorecard
• Link to business metrics (should be one dashboard)
Results
1.2.
3.
4.
2. Set goals, build measurement system and dashboard
3. Action PlanningHow do we execute?
4. Resource and training development plan
5. Ongoing employee communication plan
6. Prioritize improvement efforts/projects
1 2
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8. Implement improvements
Use data to show improvement
9. Make improvements stick
Control PlanCapture benefitsMonthly review and dashboard
reporting7. Identify additional improvement projects
Where is the data leading us?
1. Build vision, strategy, leadership commitment
Deployment Roadmap
Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
Strategic Alignment
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What is Strategic Alignment ?
Select the “areas” where to focus your efforts
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Divide, assign and align the work
• Drive your program from the top
– Requires passionate commitment of CEO/President and
senior leaders
• Link the goals of all leaders to the program goals
• Train senior executives early in the deployment
• Ensure senior leaders understand the tools
– Walk and talk the talk
– Proves there is no greater proof that Business Improvement is here to
stay
• Require involvement of executive teams in project reviews11
Senior Management Commitment
©2009 QuantumSix Solutions, Inc. All rights reserved.
• Give your effort an identity
– Make it represent Lean Six Sigma’s link to all functions and ultimate
quality
• Define your deployment as
– It’s not just about executing projects
– Use the tools and principles in daily decision making
• Communicate often about the program’s progress
– Employee newsletters
– Staff meetings
– All staff communication sessions12
Employee CommitmentCulture Change and Communication
©2009 QuantumSix Solutions, Inc. All rights reserved.
Identity Examples
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• Establishing a strong resource base to drive development, implementation and education of the Lean Six Sigma is key
• Recommended to have an appropriate balance of fulltime and part-time practitioners
– Full Time Business Resources
• Identify career path and development opportunities
• Communicate expectations regarding training, certification and deliverables
– Business Practitioners
• Trained and certified resources within the business – not in a fulltime support role
• Identify career path and development opportunities
• Communicate expectations regarding training, certification and deliverables14
Resources
©2009 QuantumSix Solutions, Inc. All rights reserved.
• Begin your deployment by
– Staffing your functions and/or regions with fulltime leaders
– Hire external Lean Six Sigma experts with great business
experience
– Appoint internal high potentials to be Blackbelt trained and
certified as fulltime BB Roles
– Rule of thumb in deployment years
• 50% external hires/50% internal high potential resources
– External hires should be business leaders with proven 6
Sigma/LEAN execution experience; not career Quality professionals
• Have a mindset that many future senior leaders of the
organization will have had a BB role in their career©2009 QuantumSix Solutions, Inc. All rights reserved.
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Resources
Create a Career Path
©2009 QuantumSix Solutions, Inc. All rights reserved.
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Greenbelt-Fulltime in business-5 day training-Nominated from business-Training & Certification Rq’d-Requirement: 1 project certified within 6-9 months
Blackbelt-Fulltime in Quality role - 24-36 month commitment-Nominated from business-Training & Certification Rq’d-Requirement: 2 major projects-
Lean-Fulltime in business-1-3 day training-Certificate of recognition-Expectation: Lean event participation
Intro to Quality-Fulltime in business-1 day training-Certificate of recognition-Expectation: Complete focus initiative
Executive/Champion
Training
Intro to LeanSix Sigma
Master Blackbelt-Fulltime in Quality role - 24-48 month commitment-Nominated from business-Training & Certification Rq’d-Requirement: 2 additional major projects
Operate as
business change leader
• Start with basic, introductory training
– Do not deploy with Greenbelt training – too heavy
– Train first at 2 levels: fulltime resources – Blackbelts, everyone else - basic
– Rollout Greenbelt training as deployment matures
• Universally define what a project is in your company
• Kick-off initial projects quickly to generate momentum
• Don’t train too many GBs and BBs too quickly
– Field of dreams approach
• Drive 100% certification as a requirement – not a nice to have
• Ensure that you have skilled mentors to support new BBs / GBs
• Standardize training material across the company to ensure
consistency©2009 QuantumSix Solutions, Inc.
All rights reserved.17
Training
Definition Example – A Project
A project is a temporary endeavor undertaken to create a unique product, process or result.
Projects usually involve cross functional teams that use a defined methodology through established project management processes to deliver improvements that are important to company goals.
©2009 QuantumSix Solutions, Inc. All rights reserved.
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• Use a standard project review template to drive process rigor
– Place emphasis is on content, not format
• Align all projects with organizational goals
• Initial projects should be smaller in scope (3-6 months), but impactful
– Show some quick wins with initial projects
• Resist urge to launch any projects that will not have a significant impact
– In other words, call out and avoid “pet” projects (even if they are from senior leadership)
• Assign senior leader as sponsor for each project – especially BB level
projects
• Review projects every month – no exceptions!
©2009 QuantumSix Solutions, Inc. All rights reserved.
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Project Management
Example – Project Template
©2009 QuantumSix Solutions, Inc. All rights reserved.
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Basic Project Template
• Always start with DMAIC and Lean
• Explain DFSS and LEAN as part of your program as complementary
- not competing – methodologies
– Different tools for different problems
• Don’t launch DFSS too soon
– Wait until DMAIC methodology is ingrained in culture (2-3 years
minimum)
• Train your fulltime resources in both LEAN and Six Sigma tools from
the deployment commencement
– The organization will embrace Lean Six Sigma, as opposed to Lean and Six Sigma
separately©2009 QuantumSix Solutions, Inc.
All rights reserved.21
Other Lessons Learned
• Standardized Materials
– Develop and Implement Training
• Lean Six Sigma Fundamentals
• Measurement System Understanding
• Project Management Methodology
• Lean Six Sigma Tools
• Executive Awareness and Responsibility
– Implement Guidelines
• Project Benefit Validation
• Certification and Accreditation (Recognition)
• Training Selection Criteria
• Career Pathing Opportunities for Practitioners22
Knowledge Management
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Financial Validation Infrastructure
©2009 QuantumSix Solutions, Inc. All rights reserved.
• Key elements to developing a good project benefit infrastructure
– Define what a project is
– Have a consistent Project Governance Process
– Support an electronic central project repository that mirrors your governance process
– Build a process that defines a reconciliation process of project benefits to the business’ bottom line
Understanding Project Benefits
• First………..
– UNDERSTAND your business’ main drivers and metrics
– Develop a path and link your projects ultimately to those metrics
• Second…………
– Encase your project benefit definitions around your organizational structure
• e.g., involve all projects so validation and guidelines must address all of those items ©2009 QuantumSix Solutions, Inc.
All rights reserved.24
Consistent Project Governance Process
ProjectCharter
BenefitAssessment
ProjectApproval Project work
(controls & tollgates)Project
Complete
Generic Project Cycle
Reporting and Analysis
• Guidance with defining benefits
• Ensure benefits are included and calculated
• Track and report benefits
Trackand
ReportBenefits
Assist with potential changes in benefits estimate
©2009 QuantumSix Solutions, Inc. All rights reserved.
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• Have one finance person per function (per region if a global deployment)
assigned to work on project financials estimations and benefit calculations
– Thus, project benefits will be widely accepted because finance is reporting them – not the
Lean Six Sigma function
• Do not approve projects until financial impact is estimated at the project
charter phase (except for customer satisfaction projects)
– A project management database supports this rigor
• Have patience on financials and don’t set an over ambitious first year
target
– Embed the discipline and the benefits will come
©2009 QuantumSix Solutions, Inc. All rights reserved.
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Financial Validation Infrastructure
• The financial validation structure is only a part of the over
measurement system required
• The optimum measurement system is a Balanced
Scorecard
– Reflects key metrics as defined by the company’s strategic objectives
and core values
• Productivity/Financial Impact
• Safety
• Customer Satisfaction Metrics
• Employee Satisfaction Metrics
• Regulatory Compliance27
Metrics
©2009 QuantumSix Solutions, Inc. All rights reserved.
• For multi-layered companies (i.e., multiple regions, business units, global deployments, etc.):– Small corporate global team with senior level
executive responsible for Lean Six Sigma is best to:• Develop and control standardized training materials• Publish financial guidelines in conjunction with the
finance function• Lead necessary councils for
– Certification and Accreditation guidelines and process
– Roles and Responsibility Definition documents– Establish communication frequency standards
©2009 QuantumSix Solutions, Inc. All rights reserved.
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Replication
What looks different to the employees Including the executives
Executives• They constantly walk the talk with
employees about the operating system
– Town hall meetings– Internal communications
• One of their top metrics is driving productivity via the operating system methodology
• Monthly productivity reviews and dashboards (live by the metrics)
• Executive training of the methodology
• Sponsoring projects and improvement efforts – they are held equally accountable
Employees• They realize the operating system
is now how the company will do business
• They want to be trained – and will be trained – in the new methodology
• Employees will be held accountable to the metrics in the dashboard – the same metrics that the executives are held accountable for
• They learn that executing the methodology after training will make their job easier to perform due to simplified processes
Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
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• Organizations think people understand quality/continuous
improvement better than they really do
• Deployment training is too technically advanced for the
employees
• Financial validation infrastructure is not established
• Senior executives don’t drive it
– Attempted deployment in one function only – not company
wide
• Companies try to drive Business Improvement with part-time
resources30
Most Common Mistakes
©2009 QuantumSix Solutions, Inc. All rights reserved.
• It’s the $64,000 question
• Always keep a C-level executive responsible for Business Improvement in your company– Don’t regionalize the responsibility upon a certain
level of maturity
• Engage your leadership council to develop the 3-5 year strategy and live by it– Renew the strategy as you would your overall
business strategy
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Sustainability
©2009 QuantumSix Solutions, Inc. All rights reserved.
AWARENESS CULTURE CHANGE
INDUSTRY LEADER
WORLD CLASS
•Build Vision, Strategy & Organizational Capacity•Fulltime Resource Development•Councils Established•Executive Engagement•Early Success Builds Momentum – EBITA and Customer Satisfaction •QFD Deployment•Tools and Materials•Consistent definitions and terminology
•Project Management system established and compliant•Process replication in place across functions•Operating system infrastructure established•Toolsets defined and appropriately deployed based on each function’s quality maturity•Deployment of consistent project prioritization process•Customer Involvement
•Continuous improvement mindset at all levels•Customer Focused projects•Data Driven Decision making at all levels•Process Managers & Metrics in place for all key processes•Supplier partnerships on productivity projects
•Fully integrated operating system company wide•All leaders technically certified•Company recognized as industry leader in operational excellence•6 Sigma level at key business processes•Real time internal and external dashboards•Operating system tools and principles completely integrated in the culture.
Deployment Maturity
Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
• Drive it from the top– Not just in words, but via standards, resources and
business procedures/guidelines
• Let Finance speak for the delivered benefits
• Drive the Field of Dreams approach– Give it an identity – make the organization want it
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Summary
©2009 QuantumSix Solutions, Inc. All rights reserved.
Thank you for your attention and participation
Contact Information:
Julie Brignac, PresidentQuantumSix Solutions, Inc.
info@quantumsix.com+1.305.890.9078
©2009 QuantumSix Solutions, Inc. All rights reserved.
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