back to basics julie brignac, president

Back to Basics

Julie Brignac, PresidentQuantumSix Solutions, Inc.

October 2009

Agenda

• Background

• Deployment Success Elements

• Forming the Deployment Team

• Common Failure Modes

• Sustainability ~ Revitalization

About QuantumSix • A niche consulting and training development firm in the areas of

Business Process Management and Procurement

• In BPM, focuses on small to mid-size companies in need of deployment support or maturity assessments

• In Procurement, partners with PMMS Consulting Group to offer a full portfolio of consultancy and training services and products

• Specializes in both online and live training for– Executive Lean Six Sigma - Introduction to Lean Six Sigma– Project Management - Introduction and Intermediate– Practical Negotiation Lean Principles– Commercial Awareness

• Former experience in Lean Six Sigma and Procurement with– DuPont, Allied Signal/Honeywell, Newell Rubbermaid-

Sanford Brands, Brambles Limited

• Functional focus– Finance, Manufacturing Operations, Procurement,

Supply Chain, Lean Six Sigma and Quality– Lean Six Sigma deployment leader for Brambles

Limited and executive sponsor at Sanford– Track record = project benefits >$300M since 2002

My Background

• Senior Management Commitment

• Culture Change and Communication

• Resources

• Training and Knowledge Management

• Project Management

• Financial Validation Infrastructure

• Metrics

Key Success Elements

Steps to a Successful Deployment

• Vision• Strategy• Communication Plan• Senior Leadership

Commitment• Establish goals for

success• Program identity• Operating system

definition

• Resource development plan

• Training plan and execution

• Employee communication plan

• Project/effort prioritization and selection process

• Financial validation process implementation

• Measurement system development

• Define elements of the Balanced Scorecard

• Link to business metrics (should be one dashboard)

Results

2. Set goals, build measurement system and dashboard

3. Action PlanningHow do we execute?

4. Resource and training development plan

5. Ongoing employee communication plan

6. Prioritize improvement efforts/projects

8. Implement improvements

Use data to show improvement

9. Make improvements stick

Control PlanCapture benefitsMonthly review and dashboard

reporting7. Identify additional improvement projects

Where is the data leading us?

1. Build vision, strategy, leadership commitment

Deployment Roadmap

Strategic Alignment

What is Strategic Alignment ?

Select the “areas” where to focus your efforts

Divide, assign and align the work

• Drive your program from the top

– Requires passionate commitment of CEO/President and

senior leaders

• Link the goals of all leaders to the program goals

• Train senior executives early in the deployment

• Ensure senior leaders understand the tools

– Walk and talk the talk

– Proves there is no greater proof that Business Improvement is here to

• Require involvement of executive teams in project reviews11

Senior Management Commitment

• Give your effort an identity

– Make it represent Lean Six Sigma’s link to all functions and ultimate

quality

• Define your deployment as

– It’s not just about executing projects

– Use the tools and principles in daily decision making

• Communicate often about the program’s progress

– Employee newsletters

– Staff meetings

– All staff communication sessions12

Employee CommitmentCulture Change and Communication

Identity Examples

• Establishing a strong resource base to drive development, implementation and education of the Lean Six Sigma is key

• Recommended to have an appropriate balance of fulltime and part-time practitioners

– Full Time Business Resources

• Identify career path and development opportunities

• Communicate expectations regarding training, certification and deliverables

– Business Practitioners

• Trained and certified resources within the business – not in a fulltime support role

• Identify career path and development opportunities

• Communicate expectations regarding training, certification and deliverables14

Resources

• Begin your deployment by

– Staffing your functions and/or regions with fulltime leaders

– Hire external Lean Six Sigma experts with great business

experience

– Appoint internal high potentials to be Blackbelt trained and

certified as fulltime BB Roles

– Rule of thumb in deployment years

• 50% external hires/50% internal high potential resources

– External hires should be business leaders with proven 6

Sigma/LEAN execution experience; not career Quality professionals

• Have a mindset that many future senior leaders of the

Resources

Create a Career Path

Greenbelt-Fulltime in business-5 day training-Nominated from business-Training & Certification Rq’d-Requirement: 1 project certified within 6-9 months

Blackbelt-Fulltime in Quality role - 24-36 month commitment-Nominated from business-Training & Certification Rq’d-Requirement: 2 major projects-

Lean-Fulltime in business-1-3 day training-Certificate of recognition-Expectation: Lean event participation

Intro to Quality-Fulltime in business-1 day training-Certificate of recognition-Expectation: Complete focus initiative

Executive/Champion

Training

Intro to LeanSix Sigma

Master Blackbelt-Fulltime in Quality role - 24-48 month commitment-Nominated from business-Training & Certification Rq’d-Requirement: 2 additional major projects

Operate as

business change leader

• Start with basic, introductory training

– Do not deploy with Greenbelt training – too heavy

– Train first at 2 levels: fulltime resources – Blackbelts, everyone else - basic

– Rollout Greenbelt training as deployment matures

• Universally define what a project is in your company

• Kick-off initial projects quickly to generate momentum

• Don’t train too many GBs and BBs too quickly

– Field of dreams approach

• Drive 100% certification as a requirement – not a nice to have

• Ensure that you have skilled mentors to support new BBs / GBs

• Standardize training material across the company to ensure

Training

Definition Example – A Project

A project is a temporary endeavor undertaken to create a unique product, process or result.

Projects usually involve cross functional teams that use a defined methodology through established project management processes to deliver improvements that are important to company goals.

• Use a standard project review template to drive process rigor

– Place emphasis is on content, not format

• Align all projects with organizational goals

• Initial projects should be smaller in scope (3-6 months), but impactful

– Show some quick wins with initial projects

• Resist urge to launch any projects that will not have a significant impact

– In other words, call out and avoid “pet” projects (even if they are from senior leadership)

• Assign senior leader as sponsor for each project – especially BB level

projects

• Review projects every month – no exceptions!

Project Management

Example – Project Template

Basic Project Template

• Always start with DMAIC and Lean

• Explain DFSS and LEAN as part of your program as complementary

- not competing – methodologies

– Different tools for different problems

• Don’t launch DFSS too soon

– Wait until DMAIC methodology is ingrained in culture (2-3 years

minimum)

• Train your fulltime resources in both LEAN and Six Sigma tools from

the deployment commencement

– The organization will embrace Lean Six Sigma, as opposed to Lean and Six Sigma

Other Lessons Learned

• Standardized Materials

– Develop and Implement Training

• Lean Six Sigma Fundamentals

• Measurement System Understanding

• Project Management Methodology

• Lean Six Sigma Tools

• Executive Awareness and Responsibility

– Implement Guidelines

• Project Benefit Validation

• Certification and Accreditation (Recognition)

• Training Selection Criteria

• Career Pathing Opportunities for Practitioners22

Knowledge Management

Financial Validation Infrastructure

• Key elements to developing a good project benefit infrastructure

– Define what a project is

– Have a consistent Project Governance Process

– Support an electronic central project repository that mirrors your governance process

– Build a process that defines a reconciliation process of project benefits to the business’ bottom line

Understanding Project Benefits

• First………..

– UNDERSTAND your business’ main drivers and metrics

– Develop a path and link your projects ultimately to those metrics

• Second…………

– Encase your project benefit definitions around your organizational structure

Consistent Project Governance Process

ProjectCharter

BenefitAssessment

ProjectApproval Project work

(controls & tollgates)Project

Complete

Generic Project Cycle

Reporting and Analysis

• Guidance with defining benefits

• Ensure benefits are included and calculated

• Track and report benefits

Trackand

ReportBenefits

Assist with potential changes in benefits estimate

• Have one finance person per function (per region if a global deployment)

assigned to work on project financials estimations and benefit calculations

– Thus, project benefits will be widely accepted because finance is reporting them – not the

Lean Six Sigma function

• Do not approve projects until financial impact is estimated at the project

charter phase (except for customer satisfaction projects)

– A project management database supports this rigor

• Have patience on financials and don’t set an over ambitious first year

target

– Embed the discipline and the benefits will come

Financial Validation Infrastructure

• The financial validation structure is only a part of the over

measurement system required

• The optimum measurement system is a Balanced

Scorecard

– Reflects key metrics as defined by the company’s strategic objectives

and core values

• Productivity/Financial Impact

• Safety

• Customer Satisfaction Metrics

• Employee Satisfaction Metrics

• Regulatory Compliance27

Metrics

• For multi-layered companies (i.e., multiple regions, business units, global deployments, etc.):– Small corporate global team with senior level

executive responsible for Lean Six Sigma is best to:• Develop and control standardized training materials• Publish financial guidelines in conjunction with the

finance function• Lead necessary councils for

– Certification and Accreditation guidelines and process

– Roles and Responsibility Definition documents– Establish communication frequency standards

Replication

What looks different to the employees Including the executives

Executives• They constantly walk the talk with

employees about the operating system

– Town hall meetings– Internal communications

• One of their top metrics is driving productivity via the operating system methodology

• Monthly productivity reviews and dashboards (live by the metrics)

• Executive training of the methodology

• Sponsoring projects and improvement efforts – they are held equally accountable

Employees• They realize the operating system

is now how the company will do business

• They want to be trained – and will be trained – in the new methodology

• Employees will be held accountable to the metrics in the dashboard – the same metrics that the executives are held accountable for

• They learn that executing the methodology after training will make their job easier to perform due to simplified processes

• Organizations think people understand quality/continuous

improvement better than they really do

• Deployment training is too technically advanced for the

employees

• Financial validation infrastructure is not established

• Senior executives don’t drive it

– Attempted deployment in one function only – not company

• Companies try to drive Business Improvement with part-time

resources30

Most Common Mistakes

• It’s the $64,000 question

• Always keep a C-level executive responsible for Business Improvement in your company– Don’t regionalize the responsibility upon a certain

level of maturity

• Engage your leadership council to develop the 3-5 year strategy and live by it– Renew the strategy as you would your overall

business strategy

Sustainability

AWARENESS CULTURE CHANGE

INDUSTRY LEADER

WORLD CLASS

•Build Vision, Strategy & Organizational Capacity•Fulltime Resource Development•Councils Established•Executive Engagement•Early Success Builds Momentum – EBITA and Customer Satisfaction •QFD Deployment•Tools and Materials•Consistent definitions and terminology

•Project Management system established and compliant•Process replication in place across functions•Operating system infrastructure established•Toolsets defined and appropriately deployed based on each function’s quality maturity•Deployment of consistent project prioritization process•Customer Involvement

•Continuous improvement mindset at all levels•Customer Focused projects•Data Driven Decision making at all levels•Process Managers & Metrics in place for all key processes•Supplier partnerships on productivity projects

•Fully integrated operating system company wide•All leaders technically certified•Company recognized as industry leader in operational excellence•6 Sigma level at key business processes•Real time internal and external dashboards•Operating system tools and principles completely integrated in the culture.

Deployment Maturity

• Drive it from the top– Not just in words, but via standards, resources and

business procedures/guidelines

• Let Finance speak for the delivered benefits

• Drive the Field of Dreams approach– Give it an identity – make the organization want it

Summary

Thank you for your attention and participation

Contact Information:

Julie Brignac, PresidentQuantumSix Solutions, Inc.

info@quantumsix.com+1.305.890.9078

back to basics julie brignac, president

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