1. What to Expect from Lean Six Sigma in the First Year of Deployment September 21, 2009 IQPC 5 Th Annual Process Excellence Week Jennifer Ralston, CEO & Owner 1

2. 2 Agenda The Critical X’s of Deployment What to Expect of each Critical X 30 Minute Break (10:00-10:30AM) Six Essential Themes Common Failures Deployment Checklist Keys to Success Questions & Answers Session

3. Interactive Discussion is a Must Please Participate in Discussion Ask Questions Open Dialogue is Welcome Others? 3 Ground Rules for Workshop

4. Y = Successful Deployment X 1 = Leadership Commitment X 2 = Project Selection X 3 = Black Belts Selection X 4 = Fully Dedicated Black Belts X 5 = Champion Engagement X 6 = Master Black Belt Support X 7 = Organizational Tools X 8 = Sustaining Infrastructure Scale 100 % 75% 50% or less 4

5. Leadership must be engaged at Day 1 and Steer the Ship North 5 X 1 = Leadership Commitment

6. Pitch: Some Leaders will not buy in to Lean Six Sigma, be prepared to Put on your Salesman Hat Results: Leaders will want to realize the benefits of the projects quickly, Tie Savings to the Bottom-line by Partnering with Finance Success: Leaders want results fast, Show early Successes and Pick the Right Projects to allow for this 6 What to Expect X 1 = Leadership Commitment

7. Selecting the right projects is key to establish early successes and gain buy-in Align Six Sigma projects to critical business and customer strategies and operating goals Establish a documented process for a 1-year Six Sigma project hopper refresh 7 X 2 = Project Selections

8. Establish projects of appropriate size and scope, along with significant savings Assign a Champion and Black Belt to each project and outline expectations for accountability upfront Implement a project tracking system to facilitate replication and reuse, this will save you effort in the long run and ensure visibility 8 X 2 = Project Selections

9. 9 Execution ExecutionPrioritization Definition DefinitionIdeaGeneration X 2 = Project Selections Projects Planned Available Resources Potential Projects Current Projects All Projects Must Pass Through a Strategic Filter.

10. You won’t always pick the right project; Don’t be scared to stop a project that may have been the wrong choice People will bring Pet Projects to the table Show early Successes 10 What to Expect X 2 = Project Selections

11. Black Belt Attributes are essential Be sure to do rigorous interviewing to select the right belts Utilize Predictive Index 11 X 3 = Black Belts Selection

12. Proper mentoring and coaching from the MBB and Champion will develop good belts Be sure to select the number of Belts that is a good fit for you to manage 12 What to Expect X 3 = Black Belts Selection

13. 13 Key Belt Attributes

14. Until Deployment Maturity develops it is highly recommended to have your Black Belts be Full Time Positions Standardize Job Descriptions upfront Create a Career Ladder so Belts can see the road to growth either into a Business Leader or an MBB 14 X 4 = Fully Dedicated Black Belts

15. Career Ladder 15

16. It will be hard to keep Belts focused They may not fully transition themselves from their old job If they are split between two roles they become jugglers, avoid this 16 What to Expect X 4 = Fully Dedicated Black Belts

17. Break into groups by Deployment Age; i.e.: 6months, 1 year, 1 ½ years, 2 years Discuss Your Experience with Critical X 1 - X 4 of Deployment and any actions you have had to take Each Group should be Prepared to do a 5-7 minute Report Out on their discussion 17 Breakout Groups

18. Set expectations upfront, Champions need to be involved and remove barriers Must have Weekly and Biweekly Mentor meetings with MBB and BB Ensure Steering Committee Involvement 18 X 5 = Champion Engagement

19. Mentor and refresh Champions of needed tools Remind them of expectations they committed to if they become inactive Ensure your Champions are equipped with the right questions to ask at each DMAIC Tollgate 19 What to Expect X 5 = Champion Engagement

20. Developing and Selecting the right MBB candidates upfront is critical to sustainability It’s okay to supplement with consultants at the beginning, but plan to self sustain when appropriate Use the same rigorous process to select MBBs that you do for BBs 20 X 6 = Master Black Belt Support

21. MBBs should be future leaders of your Company, develop them as such MBBs need to have a planned time to exit back into the organization as a business leader 21 What to Expect X 6 = Master Black Belt Support

22. You may need consultants to start Plan for Training Materials and Training Sessions Create a Process for Certification of GBs, BBs and MBBs Ensure a Process for Project Selection, Project Review, Belt Selection Create Visibility with a Dashboard Visible, Consistent Support and an Active Communications, Reward and Recognition 22 X 7 = Organizational Tools

23. Developing these tools for sustainment takes time, be sure to dedicate time to this upfront, possibly even assigning an MBB(s) or BB(s) to these tasks 23 What to Expect X 7 = Organizational Tools

24. 24 Leadership Team Project Champion Master Black Belt Black Belt Green Belt Black Belt Green Belt Yellow Belts A Sustaining Infrastructure Must Have Senior Management’s Support and Guidance. X 8 = Sustaining Infrastructure

25. 25 X 8 = Sustaining Infrastructure

26. 26 What to Expect X 8 = Sustaining Infrastructure Steering Committee Reviews with the appropriate stakeholders is key to ensure project awareness and to share touch points Top level leadership must have oversight of the deployment and keep track of the health Functional owners need to own their deployment and sustain the infrastructure and results

27. Break into groups by Deployment Age, i.e.: 6months, 1 year, 1 ½ years, 2 years Discuss Your Experience with Critical X 5 – X 8 of Deployment and any actions you have had to take Each Group should be Prepared to do a 5-7 minute Report Out on their discussion 27 Breakout Groups

28. Break Time! 30 minutes 28

29. 1.True Focus on the Customer 2.Data and Fact Driven Management 3.Process Focus, Management and Improvement 4.Proactive Management 5.Boundaryless Collaboration 6.Drive for Perfection, and yet a Tolerance for Failure 29 Six Essential Themes

30. No concept of Customer expectations No vision related to Customer expectations No follow-up on the annual operating plan Lack of alignment (horizontal or vertical) No visible leadership at the executive level Business executives do not show up for report-outs (conveys a lack of priority) Deploying Six Sigma without a goal (reason for deployment) Deploying Six Sigma with a goal but no plan on how to get there Abdicating the deployment plan to a consulting company Trying to change the organization without a detailed change process *iSixSigma.com 30 Management & Company Failures

31. Not having metrics in place for management participation No metrics for Champions Champions do not show up for report-outs Having metrics in place but no feedback (or limited feedback annually, semi-annually, quarterly) Not having multiple projects queued up for each MBB, BB or GB (so when they complete a project the next one has already been selected) Not communicating deployment plans effectively through the organization No rewards or recognition program *iSixSigma.com 31 Management & Company Failures (continued)

32. A rewards/recognition program that does not recognize teams No retention program for trained personnel Using contract type agreements to retain MBBs and BBs Project selection process does not identify projects related to business objectives Middle management operates on their own agenda (feel support is optional) No accountability Champions do not break roadblocks No buy-in at the Process Owner level Process Owner believes they have the option to not buy-in *iSixSigma.com 32 Management & Company Failures (continued)

33. Supply base supplying poor quality material No consequence for suppliers sending bad material (typically because of price) No plan to deploy into the Design and Marketing functions after Operations has launched Believing a single initiative can/will solve all your problems Using BBs for fire-fighting Buying cheap software to save money on the deployment Training BBs without providing a computer *iSixSigma.com 33 Management & Company Failures (continued)

34. Break into groups by Deployment Age, i.e.: 6months, 1 year, 1 ½ years, 2 years Discuss Your Experience with these failures and/or how you have avoided them Each Group should be Prepared to do a 5-7 minute Report Out on their discussion 34 Breakout Groups

35. Treating it as an academic exercise Failing to appreciate the complexity of dealing with people Failing to recognize Control as the most difficult phase to implement effectively Not transferring ownership of the solution to the team as the project progresses (the solution becomes personality dependent) Spending to much time on the computer and not enough time in the process *iSixSigma.com 35 Master Black Belt, Black Belt & Green Belt Failures

36. Presenting results as if it were a science project - using things such as ANOVA tables to convey results (graphical representations convey more information faster - you are communicating an idea) Avoiding resistance - when you know it is present you have to deal with it Creating a exclusive club attitude around the program Not sharing the credit for the solution with the team Taking credit for work accomplished by another initiative or an ongoing project. *iSixSigma.com 36 Master Black Belt, Black Belt & Green Belt Failures (continued)

37. Focusing on certification rather than the team project and the company's results Not providing the team the opportunity to share the spotlight (have them attend a management presentation or better yet use them in the presentation) Generating false data Not getting at least a basic understanding of the tools required to do an analysis *iSixSigma.com 37 Master Black Belt, Black Belt & Green Belt Failures (continued)

38. Including special effects in the presentation to cover a lack of content Using a large number of slides to cover a lack of content in project reviews Running to the Champion to break a roadblock before they try themselves Not taking a roadblock to the Champion after they have tried themselves *iSixSigma.com 38 Master Black Belt, Black Belt & Green Belt Failures (continued)

39. Break into groups by Deployment Age, i.e.: 6months, 1 year, 1 ½ years, 2 years Discuss Your Experience with these failures and/or how you have avoided them Each Group should be Prepared to do a 5-7 minute Report Out on their discussion 39 Breakout Groups

40. 40 Launch Phase Year 1-2 To Do Executive Interviews Implementation Leader(s) and Sponsor(s) Selected Executive Management Training Define Year 1 Implementation Plan Core Deployment Team Selected and Trained Define Deployment Strategy and align with business needs SCHEDULE & TIMING 2-3 Months

41. 41 Develop Communications Plan Establish Management Buy In and Commitment Budgeting Engage and Train Finance Engage and Train HR Establish Process Metrics with System Dashboard Initiate Bonus Program Train Initial Champions Establish 3 Year Plan SCHEDULE & TIMING 2-3 Months Launch Phase, continued

42. 42 Communications Plan Executed Identify First Projects Train First Wave of BB’s MBB Support Infrastructure Completed Integrate Finance Integrate HR Launch Initial GB Training Six Sigma Metrics Established SCHEDULE & TIMING 9-24 Months Implementation Year 1-2 To Do

43. 43 Measurement and Tracking Systems Established Train Functional Management BB Certification Process Established Champion Refresher Training Train Initial MBB’s Begin All Employee Awareness Training Monthly Leadership Reviews First Recognition and Rewards Event Pilot Customer Engagement Process SCHEDULE & TIMING 9-24 Months Implementation Year, continued

44. 44 Institutionalizing & Sustaining Institutionalizing PhaseSustaining Phase Key Activities Full Scale GB/YB Training Engage Suppliers Develop Internal Training Capability Complete BB & MBB Training Waves to Full Quantity Second Annual Rewards & Recognition Event Spot Champion Revitalization Training System Refinement & Improvement Quarterly Exec Reviews Full Customer Engagement Launch Design for Six Sigma Training BB Re-Integration Planning Fully Integrate Lean w/ Six Sigma Begin to integrate simulations Begin to implement standard work SCHEDULE & TIMING12-24 Months Key Activities Continue GB/YB Training Complete Design for Six Sigma Training Migrate/promote BB’s & MBB’s Back into Functional Roles Continue Supplier Deployment System Refinement & Improvement Progress Reviews Annual Rewards & Recognition Event Quality Performance Improvement SCHEDULE & TIMING12 Months Y E A R 3 – 4Y E A R 5

45. 45 12 Keys to Success 1.Tie Lean Six Sigma Efforts to Business Strategy and Priorities 2.Position Lean Six Sigma as an Improved Way to Manage Today 3.Keep the Message Simple and Clear 4.Develop Your Own Path to Lean Six Sigma 5.Focus on Short-Term Results 6.Focus on Long-Term Growth and Development *The Six Sigma Way

46. 46 12 Keys to Success (continued) 7.Publicize Results, Admit Setbacks, and Learn from Both 8.Make an Investment to Make it Happen 9.Use Lean Six Sigma Tools Wisely 10.Link Customer, Process, Data, and Innovation to Build the Lean Six Sigma System 11.Make Top Leaders Responsible and Accountable 12.Make Learning an Ongoing Activity *The Six Sigma Way

47. 47 Here’s To Your Deployment!!

48. Jennifer Ralston, CEO & Owner HKPO Lean Six Sigma Experts 443-618-2518 jlralston@hkpproactivesolutions.com 48