Iowa Office of Lean Enterprise

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Iowa Office of Lean Enterprise

• Lean Six Sigma Deployment

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Presentation Outline

• Lean Six Sigma Deployment
• Considerations
• Foundation
• Execution

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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.
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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.
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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.
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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
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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)

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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.
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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.
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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.
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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.
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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.
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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!
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Deployment Maturity Model
Transforming
Optimizing
Improving
Two to five years to a Lean Six Sigma culture.
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Deployment Customer Requirements
Know who your customers are and what they expect.
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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

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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

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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

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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.
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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.
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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

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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.
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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

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The Core Process
Understanding the core process helps focus the
deployment activities.
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Critical Ys for Deployment
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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.
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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!
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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.
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Training

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

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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

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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

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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

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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

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Leadership Engagement

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

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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

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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.
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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