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Iowa Office of Lean Enterprise

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Iowa Office of Lean Enterprise Lean Six Sigma Deployment * * Leadership Engagement Annual goal setting Monthly staff meeting agenda item Project sponsorship / barrier ... – PowerPoint PPT presentation

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Title: Iowa Office of Lean Enterprise


1
Iowa Office of Lean Enterprise
  • Lean Six Sigma Deployment

2
Presentation Outline
  • Lean Six Sigma Deployment
  • Considerations
  • Foundation
  • Execution

3
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.
4
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.
5
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.
6
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
7
Deployment Models
  • There is no one right model
  • Adapt the deployment to the organizations
    situation.
  • Four models to consider
  • Enterprise wide (traditional model)
  • Department/business unit (scalable model)
  • Targeted (problem solving model)
  • Grass roots (bottom up model)

8
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.
9
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.
10
Targeted Model
  • 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.
11
Grass Roots Model
  • Characteristics
  • 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.
12
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.
13
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!
14
Deployment Maturity Model
Transforming
Optimizing
Improving
Two to five years to a Lean Six Sigma culture.
15
Deployment Customer Requirements
Know who your customers are and what they expect.
16
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

17
Roles and Responsibilities
  • Project sponsor
  • Project specific support
  • Resource allocation
  • Project focus
  • Master Black Belt
  • Trains and mentors belts
  • Technical resource
  • Coaches deployment champions and managers
  • Manages project clusters
  • Black Belts
  • Leads projects
  • Mentors green belts

18
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

19
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.
20
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.
  • Dont 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.
21
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 - dont do it if you are not
    committed

22
Change Management Basics
  • Address the people issues early
  • Layoffs
  • Pay
  • Job changes
  • Understand what helps people change
  • Whats in it for me?
  • Certainty
  • Knowledge
  • Communicate, communicate, communicate
  • You cant talk about Lean Six Sigma too much

The principles of change management are well
known. The challenge is to apply them.
23
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

24
The Core Process
Understanding the core process helps focus the
deployment activities.
25
Critical Ys for Deployment
26
Black Belts and Green Belts
  • Black 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.
27
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!
28
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.
29
Training
  • Types of training
  • Black Belt
  • Green Belt
  • Directors and Administrators
  • Deployment
  • Awareness
  • Delivery Methods
  • Contracted training
  • Open enrollment
  • In-house

30
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
  • Dont forget about the people at the top
  • Provide enough general training to avoid
    confusion
  • Have good chartered projects to work on during
    training

31
Mentoring Project Support
  • Require monthly 11 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

32
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 isnt

33
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

34
Leadership Engagement
  • Annual goal setting
  • Monthly staff meeting agenda item
  • Project sponsorship / barrier removal
  • Training attendance
  • Training kick off speeches
  • Attendance at LSS functions

35
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

36
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.
37
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 enterprises management systems
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