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					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
       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                                  Scale
                                             Entire organization
   Business Transformation
                                             Department
       Organization wide deployment
       Major culture change                 Project/Section/Team

   Strategic improvement                 Organization Readiness
       Targeted deployment on critical
        problems                             Culture
       Projects necessary for success       Past process experience
        or survival
                                             Management team
•   Problem solving                          Stability
       Specific operational problems
       Incremental improvements in
        organizational performance

             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
   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
       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

                                                                   Continuous improvement is everyone's job
                                                                   Improvement drive by strategy and scorecard
                                                                   Lean Six Sigma is "the way we work"
                                                                   Result: Value delivered to taxpayers & customers

                                      Management team leads process improvement

                                      Opportunity-focused clusters
                                      Managers applying the Lean Six Sigma methodology
                                      Result: Financial benefits & better strategy execution

                Black belts and Lean Six Sigma team drive deployment

                Ad hoc projects focused on financial benefits
                Learning the Lean Six Sigma tools
                Result: Financial benefits

                            Two to five years to a Lean Six Sigma culture.
Deployment Customer Requirements
                           Deploy Lean Six Sigma
                              to help achieve
                            organizational goals

         Quality                  Delivery                Cost
         (60%)                     (35%)                  (5%)

       90% of Black           Deliver significant   Keep total direct
   & Green Belt projects         sustainable        deployment costs
    will drive improved        benefits quickly       below 10% of
        performance                                  project benefits

      Create a Lean           Significant annual
    Six Sigma Culture          improvement in
                               making LSS the
                                way we work

    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
   Lean Six Sigma is an outstanding management development
     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
   Skip talent management if culture change is not a deployment
             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

The Core Process

     Measure       Identify project    Select projects   Execute    Sustain gains
 performance and    opportunities     and assign black   projects   from projects
   identify gaps      and write         belts / green
                      charters              belts

             Understanding the core process helps focus the
                         deployment activities.
Critical Ys for Deployment
                                    90% of Black and
                                   Green Belt projects
                                   will drive improved
                                 financial performance

     Identify, develop     Provide BBs        Execute projects   Sustain the Gains
     & select projects        & GBs                (25%)               (25%)
           (30%)              (25%)

     Identify business         Provide         Manage project      Measure and
        problems &       sufficient numbers        tasks         audit performance
       project ideas       of BBs & GBs

          Develop          Select people         Acquire &           Establish
      project charters      capable of         manage project      accountability
                            success as           resources         for sustaining
                            BBs & GBs                                   gains

          Select             Train BBs           Apply LSS        Prepare process
        projects &            & GBs                tools           owners for role
      assign to GBs                                              in sustaining gains

                                               Provide support    Provide support
                                                 to projects        for benefits

Black Belts and Green Belts
           Black Belts                           Green Belts
   2 year full time assignment          Stay in current jobs
   25 days of training                  25% time leading projects
   Certification                        10 days of training
   Complete 4 - 8 projects/year         Certification
   Can work anywhere in the             1 - 2 projects/year
    agency                               Work primarily in their own
   About 1 percent of the                area
    workforce                            Greater emphasis on
   Developmental assignment              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                              People
       Project idea and charter              Selection process
        development process                   Certification process
       Project financial validation          Repatriation for Black Belts
        process                               Development plans
       Project selection process             Rewards and recognition
       Project management process            Organizational structure
       Audit results process                 Engagement
       Project database
   Training
       Curriculum
       Statistical software
       Master Black Belt support
       Tools and templates
       Project report outs

                 Build a strong support infrastructure early
               and stay ahead of deployment support needs.
   Types of training
     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
     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

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
   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

   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
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


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