Iowa Office of Lean Enterprise Lean Six Sigma Deployment

Presentation Outline Lean Six Sigma Deployment Considerations Foundation Execution

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.

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 government but differences need to be addressed during deployment.

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 fits within the entire management system.

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

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)

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.

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.

Targeted Model Good model if resources are very limited. 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.

Grass Roots Model Characteristics Deployment considerations 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 time due to lack of top management attention.

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.

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!

Deployment Maturity Model Transforming Optimizing Improving Two to five years to a Lean Six Sigma culture.

Deployment Customer Requirements Know who your customers are and what they expect.

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

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

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

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 organization and the goals and scale of the deployment.

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.

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

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.

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

Understanding the core process helps focus the deployment activities.

Critical Ys for Deployment

Black Belts and Green 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 and Green Belts even though they use the same tools.

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!

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 early and stay ahead of deployment support needs.

Training Types of training Delivery Methods Black Belt Green Belt Directors and Administrators Deployment Awareness Delivery Methods Contracted training Open enrollment In-house

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

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

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

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

Leadership Engagement Annual goal setting Monthly staff meeting agenda item Project sponsorship / barrier removal Training attendance Training kick off speeches Attendance at LSS functions

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

Use the deployment to set an example on using data to manage. 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.

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