getting started on the six sigma journey... lessons of experience
TRANSCRIPT
Getting Started on the Six Sigma Journey…
Lessons of ExperienceCheckFree Corporation
Agenda
Getting Started on the Journey
The Hard Road
Making the Climb; A Better Way
Sustainable Results
Maxim
Making complex financial activities easier for businesses and consumers…
CheckFree Divisions
Electronic Commerce
�Integrated Electronic Billing & Payment
�Available at 1000+ Financial Service Organizations (Banks, Brokerages, Portals…)
�Quarter Volume = 13m Consumers Initiated OnLine Payments
Generating > 130m Transactions & Receiving > 22m eBills
Investment Services
�Portfolio Management & Reporting Services; Managing Nearly 1.5m Portfolios
Totaling > $900 Billion in Assets
Software
�ACH Solutions Servicing > 66% of Nations 9-Billion ACH Payments
�Financial & Compliance Solutions Providing Reconciliation, Financial Messaging, Workflow, & Compliance Software to > 600 Financial Service Organizations
�iSolutions Leading Provider of eBilling & eStatement Software & Services for B2C & B2B
Six Sigma Context
FY99 – Sigma Challenge (EC)
– Service Quality Measurement Focus
– Six Sigma Defect Measure Methodology
– Evolution Path: ITO >> Development >> Customer Ops >> EC Comprehensive
FY02 – Six Sigma (EC limited)
– Mainstream Six Sigma
– Selective Target Approach: Customer Ops & ITO
– Focus: Develop Six Sigma Core Team & EC Deployment Strategy
FY03 – Enterprise Enablement (EC)
– EC Initiative Deployment Strategy
– Investment Focus: Major Fiscal Year Initiatives, Customer Ops, & Alliance Team
FY04 & FY05 – Six Sigma Process Excellence (Company)
– CheckFree “Process Excellence” Deployment Strategy
– Creation of Corporate Process Excellence Team
– Investment Focus: CIS Deployment & EC Evolution
– Investment Focus: Corporate HR Division
– Investment Focus: Software Division
Deployment Decisions
Approach
�Pilot, Selective Target, Blitz
Competency
�Develop It, Hire It, Outsource It
Training
�Outsource or Insource
Sequencing
�Skill Type, Business Area, People & Positions
Infrastructure
�Organization, Primary Metric, Communication
Projects
�Selection Criteria, Return Requirements, Scope
Getting Started on the Journey
Starting to Climb
…with the best intentions
The Hard Road
Grass Roots Movement
Excitement & Activity
Start-Up Successes
Management Confusion
Leader Impatience
Practitioner Frustration
Momentum (towards…)
+
-
Just Start Equipping
Training Metrics
Skills in the Business
Tool Injuries
Favoring Activity & Noise
Everything’s a nail…
Tools & Techniques
+
-
BIG 1st Projects
BIG Projected Return
High Visibility
Not a Learning Environment
Patience Wears Thin
Energy Wanes
Attention & Focus
+
-
Six Sigma Science
Data, Statistics, Metrics
Y = f(x1, x2, x3,..)
Strict Adherence
Inflexibility
Barrier Creation
Methodology Map
+
-
Some Communication
Awareness
Curiosity
Pockets & Cliques
Elite Membership
In the name of…
Buzz
+
-
Strict Centralization
Competency Momentum
Clarity of Vision
Ownership?
Accountability?
Integration?
Allocation Control
+
-
Run-n-Gun
Surge Ahead
The Deep Ball
Hit a Wall
Left Behind
“The Sound Barrier”
Quick Traction
-
+
The Hard Road
� Grass Roots Movement
� Just Start Equipping
� Big 1st Projects
� Six Sigma Science
� Some Communication
� Strict Centralization
� Run-n-Gun
Making the Climb
from Base Camp to the Summit…
A Better Way
Key Elements to a Successful Journey
+ Scouting the Path
+ Fortifying Base Camp
+ Lead Climbers
+ Enabling the Journey
+ Early Impact
+ Vertical Ascent
Scouting the Path
Terrain & Climate– Assessing, Charting, …
Expedition Strategy– Planning, Pathing, …
Supply Acquisition– Gear, Skill, Experience, …
Assimilating Climbers– Identifying, Preparing, …
Tactical Targeting– Goals, Objectives, …
Scouting the path and preparing for Base Camp…
Run-n-Gun
Tactical Targeting
THE ESSENTIALS
Leadership
Business Process Model
Process Owners
Measurements
Process Teams
Designs
Run-n-Gun
THE BUILDING BLOCKS
BackOffice Toolbox
Process Competency
Coaching
Reward Structure
Integration Management
Enabling Technology
Management Systems
HR Development Systems
CPE Enterprise Elements
CAMP @ L2 Process Owners Measurement Coaching Rewards Structure Integration Mgmt
Claiming the Summit
BASE CAMP Leadership Process Model BackOffice Toolbox Process Competency
CAMP @ L3 Process Teams Designs Enabling Technology Management Systems
CAMP @ L4 Self-Evolution Continuous Improvement HR Systems
CULTURAL PROCESS EXCELLENCE
Just Start Equipping
Fortifying Base Camp: Assimilating Climbers
Just Start Equipping
ENABLING Improvement Innovation Execution Satisfaction
EQUIPPING Tooling Training Coaching
PRINCIPLES New Elements of Importance New Questions New Answers
PERSPECTIVE End-to-End Customer-Centric Dept Spanning Process Model
The Enablement Path
Perspective: The Enterprise Model
…describes how activities across the business should be ORGANIZED, relate, behave, and WORK TOGETHER to deliver CheckFree
Services to our Customers and Shareholders.
Measure Service Performance
Diagnose Service Issues
Assess & Allocate Improvement Investment Opportunities
Managing Process & Procedural Change
Drive Accountability & Achievement in All Our Services
A basis by which we will…Strategic Planning
Business Planning
Customer Relationship Mgmt
Product &
Service Support Product
& Line Strategy
Product Development
Customer Acquisition
Service Delivery
Knowledge Management
HR Management
Marketing & Brand Management
Fiscal Admin Management
Fortifying Base Camp
Principles
We will work to ensure that every process and every sub-process within the Business reflects each of these core process
principles, characteristics, and attributes…
Core Values
Salmon Factor
Process Spanning
Enterprise Model
Adaptability
Base Attributes
PROCESS OUTPUTINPUTS
Quality Input
Continuous Improvement
Approach
R & R
Value-Add
Fortifying Base Camp
Equipping: The Common Methodology
Improvement, Innovation, Design, & Re-Design
A fusion of Best Practice methods and CF experiences…
Six Sigma DMAIC
Six Sigma DMADV / DFSS
Breakthrough Thinking Innovation Toolsets
Holistic Process Enterprise Management
Common Methodology Enablement
A Process Perspective
Understand the Real Problem w/Data
VOC / VOB Integration
Principle Alignment
Data-Driven Decision Making
Measured Achievement
Pre-Imp Validated Solution
Controls & Response
Lead Climbers
Enabled Leaders taking action through participative leadership support…
“Leading from good-to-great does not mean coming up with the answers and then motivating everyone to follow your messianic vision.
It means having the humility to grasp the fact that you do not yet understand enough to have the answers and then to ask the questions that will lead to the best possible insights.”
- Jim Collins
Start @ the Top
Leaders Establish Base Camp
Grass Roots
Early Impact Efforts
LONG TERM EFFORT
EARLY IMPACT = EARLY IMPACT RESULT
Why EI?
Renews Energy
Earns Patience
Builds Momentum
Where EI?
Spin-Off Projects
Tool Assignments
Improv Support
BIG 1ST Project
EI = EI RESULTEI = EI RESULT
Value & Visibility
Simple, but comprehensive communication...
Integrate the message into conversation
Reference the framework in meetings
Public Recognition & Quarterly Forums
Target by Type
UDE Model
Don’t underestimate the power of your Communication Plan…
Some Communication
Value & Visibility
The UDE Model
Some Communication
To comprehend the nature, value, and/or significance of concept, how it impacts them, and integrates into their area of expertise.
Result: Support in understanding and knowledge.
Understand & Support
The ability to recognize, convey, and characterize the value, utilization, and leverage of the concept and how it brings value to the business.
Result: Utilization of the concept in application and delivery.
Describe & Utilize
To equip others with the knowledge, information, and understanding of concept such that its mechanics and value can be leveraged by others.
Result: The transfer of knowledge and experience.
Evangelize & Educate
Coaching & Mentoring
Science through training; Art through coaching…
Six Sigma Science
The Power of Balance COMMIT TO COACH
Send them in 2s
Soft Skill Focus
6 Months, Intense
12 Months, in Pace
MASTERING THE ART
Adaptability
Flexibility
Scalability
Integrity
Enabling the Climb
Six Sigma Centers of Excellence…
Strict Centralization
To establish and enable strategies which equip the corporation to drive shareholder value through quality leadership in every service delivered.
THE MISSION…
In the Business, for the Business, by the Business
CIS
Software Admin
EC
The Expedition: A 4-Front Strategy
FUTURE VIEWBuilding it in for Summit-Quality
VERTICAL ASCENTEnabled Leadership
taking action
UNIFIED CLIMBEngaging the troops &
climbing together
EARLY IMPACTAdvance activity in immediate opportunities
EI = EI RESULT
Vertical Ascent
A fundamental approach to leading the change…
Create a sense of urgency
Build a powerful guiding coalition
Create the vision of what it will look like
Communicate the urgency, need, and vision broadly, frequently
Equip and enable employees with empowerment
Produce sufficient short-term results to silence critics and justify longer-term commitment
Build momentum to tackle tougher problems
Anchor new behavior in the culture of the corporationSource: John Kotter, What Leaders Really Do, Harvard Business Review, 1999.
Sustainable Results
� Grass Roots Movement
� Just Start Equipping
� Big 1st Projects
� Six Sigma Science
� Some Communication
� Strict Centralization
� Run-n-Gun
+ Lead Climbers
+ Perspective & Principles
+ Early Impact
+ Coach the Art
+ Value & Visibility
+ Enable the Business
+ Plan the Expedition
The Hard Road A BETTER WAY