Six Sigma Deployment

Failure is not an option

Why Change Fails?

Top Ten Reasons (Price Waterhouse Cooper) Competing resources 48% Functional boundaries 44% Lack of change skills 42% Middle management 38% Long IT lead times 35% Communication 34% Employee opposition 33% Initiative fatigue 32% Unrealistic timetables 31%

Why Change Succeeds?

Top Eleven Reasons (Price Waterhouse Cooper) Good communication 100% Strong mandate by senior management 95% Setting up intermediate goals and deadlines 95% Having an adaptive plan 91% Having access to adequate resources 86% Demonstrating urgency of change 86% Setting up performance measures 81% Delivering early tangible results 76% Involving customers and suppliers early 62% Benchmarking performance vs. competitors 62%

Six Sigma Deployment Planning:

Basic Elements
Introduction: There are many things to consider when developing a Six Sigma deployment plan. Leaders of organizations sometimes have only one chance every few years to fundamentally transform their organization, so it is important to do it well. We will discuss the basic elements of a good deployment plan and some of the critical success factors.

Critical Success Factors in Deployment Culture Approach Planning

Corporate Culture and Change

Corporate culture is a companys value
system and its collection of guiding principles Cultural values often seen in mission and vision statements Culture reflected by management policies and actions

Organizational Culture Dimension

The basis of truth and rationality in the organization The nature of time and time horizon Motivation

Quality Management Value

Decision making should rely on factual information and the scientific method. Improvement requires a long-term orientation and a strategic approach to management. Quality problems are caused by poor systems-not the employees. Employees are intrinsically motivated to do quality work if the system supports their efforts. Quality improvement, is continuous and never ending. Quality can be improved with existing resources. The main purpose of the organization is to achieve results that its stakeholders consider important. Results are achieved through internal process improvement, prevention of defects, and customer focus Cooperation and collaboration (internal and external) are necessary for a successful organization. A shared vision and shared goals are necessary for organizational success. All employees should be, involved in decision making and in supporting the shared vision. An organization should be customer driven. Financial results will follow.

Stability versus change/innovation/personal growth Orientation to work, task, and. coworkers

Isolation versus collaboration/cooperation Control, coordination, and responsibility

Orientation and focus-internal and/or external

From Deter, Schroeder, Mauriel (2000) A Framework for Linking Culture and Improvement Initiatives in Organizations, Academy of Management Review, vol. 25, No. 4, 850-863

Building Culture
Culture dominates Quality as a subculture How can culture change?
Unfreezing, cognitive restructuring, freezing

Cultural Change
Summary Change can be accomplished, but it is difficult Imposed change will be resisted Full cooperation, commitment, and participation by all levels of management is essential Change takes time You might not get positive results at first Change might go in unintended directions

Approach: Contingency Perspective

From Sitkin, Sutcliffe, Schroeder (1994) Distinguishing Quality Control from Learning in Total Quality Management: A Contingency Perspective, Academy of Management Review, vol. 19, No. 3, 537-564

Deployment Planning Elements

It is helpful to go back to strategic management frameworks when considering basic deployment planning elements
Malcolm Baldrige

Deployment Components

Components

Components

Components

Components

Components

Vision
Phases Culture (Simple Rules) System Map Balanced Scorecard

Financial Objectives Non-Financial Objectives Specialists (Belts) Geography/ Sites Job Classes/ Positions

Branding
Promotion

Methods
Tools

Policies & Standards Training

Leadership Financial Integration w/ Development Reporting(QNI) other Systems Terminology Drivers of Behavior Lead Users Focus Areas Reviews Project Portfolios

Deployment Plan Example: MGPP

Objective
Develop Project Selection Process

2003
Corporate design Division planning Build System portfolio

2004
Division operating and coordinated with Corporate Process. Project Selection owners identified Project reporting from all corporate projects Web/intranet accessibility Benefits quantified Board & Leadership Team Review Initiate PM for 6-8 core processes with corporate champions and owners Establish PM Forum 300 GBs trained/cert 40 BBs trained/cert. Financial Analysts on DMAIC/DFSS teams 30 Champions trained Basic Data Analysis wkshps (3) Minitab wkshps DFSS wkshps (2: 5-7 projects) Lean wkshps (2) Discovery Wkshps (3) Finalize Simple Rules Corporate and Division leadership engage all employees Recognize team behavior BB career path defined Core Leader Competencies & Behaviors aligned

2005
Budgeting linked to portfolios

Vision
Corporate and Division Portfolios value known and linked to strategy. Performance targets are hit Every level has clear understanding of progress against Scorecard targets Reviews are open, honest, data-based

Project Review and Reporting

Some review Leadership Team Project reporting initiated

Alignment from Board Room to Department on project reviews

Develop Process Infrastructure

System Map drafted Process Management planning with Leadership Team 100 GBs trained 15 Black Belts trained

Extend process management to 9-15 processes Each Division has PM Forum

All core processes, some leadership and support formally managed Project priorities influenced by Process Owners All current and future leaders are GBs 100 BBs 1 MBB in each Division

Launch New Projects & Develop Specialists

5 Master BBs trained 10 Design BBs trained

Build Analytic Skills, Tools & Methods

Minitab Some DFSS DMAIC Discovery

Basic Data Analysis wkshps (2) Minitab wkshps (TBD) DFSS wkshps (2: 5-7 projects) Lean wkshps (2) Discovery Wkshps (3)

Capability to launch and achieve strategic initiatives in every Division

Define and Address Culture

Simple Rules drafted

System support is expected and practiced

Enhance Leader Development

Informal recognition Some performance requirements for Sr. Leaders

Succession planning for BB and MBB roles

PE improvement and PM activities are recognized Succession plans and candidates for all leader

Deployment Planning Exercise

Use the Multi-Generation Project Plan to begin creating your deployment plan
Brainstorm components and fill in phases/time frames Place the components on the MGPP Start with your vision and identify goals for each phase/time frame

Deployment Plan
Component Phase 1 Phase 2 Phase 3 Vision

Deployment Planning Summary

Leaders have few chances to fundamentally change their organization There are common phases in Six Sigma deployment Numerous things need to be considered during a deployment Careful thought should be put into the deployment of a deployment plan and there should be wide involvement

Extensiveness of a Deployment

Common Focus Areas

Applications

Tools
Methods Management System Management Philosophy & Culture
Note: This diagram is based on the work of Dr. Mark P. Finster of the University of Wisconsin at Madison

Lasting Change

Six Sigma and the Path to Transformation

C) Governance for Transformation Strategic Scorecard (especially predictive, preventive indicators) Integrated Management System Leader Development/Succession Educating the Board of Directors

R E S U L T S

B) Infrastructure Alignment Marketing and Design H.R. Policy Finance Information System Best Practice exchange Supply Chain

R.I.P.?
A) Project-based Improvement Project Savings Black Belts, Green Belts Etc.

TIME

3M Stock Performance

W. James McNerney as CEO

This presentation was written by Professor Kevin Linderman of the Carlson School of Management, University of Minnesota.
Published with kind permission from Linderman.