Six Sigma Deployment

Failure is not an option

Why Change Fails?

Top Ten Reasons (Price Waterhouse Cooper)

• Competing resources 48%

• Functional boundaries 44%

• Lack of change skills 42%

• Middle management 38%

• Long IT lead times 35%

• Communication 34%

• Employee opposition 33%

• Initiative fatigue 32%

• Unrealistic timetables 31%

Why Change Succeeds?

Top Eleven Reasons (Price Waterhouse Cooper)

• Good communication 100%

• Strong mandate by senior management 95%

• Setting up intermediate goals and deadlines 95%

• Having an adaptive plan 91%

• Having access to adequate resources 86%

• Demonstrating urgency of change 86%

• Setting up performance measures 81%

• Delivering early tangible results 76%

• Involving customers and suppliers early 62%

• Benchmarking performance vs. competitors 62%

Six Sigma Deployment Planning:

Basic Elements

Introduction: There are many things to consider when developing a Six

Sigma deployment plan. Leaders of organizations sometimes have

only one chance every few years to fundamentally transform their

organization, so it is important to do it well. We will discuss the basic

elements of a good deployment plan and some of the critical success

factors.

Critical Success Factors in Deployment

• Culture

• Approach

• Planning

5

Corporate Culture and Change

• Corporate culture is a company’s value

system and its collection of guiding

principles

• Cultural values often seen in mission and

vision statements

• Culture reflected by management policies

and actions

Organizational Culture Dimension Quality Management Value

The basis of truth and rationality in the organization Decision making should rely on factual information and the

scientific method.

The nature of time and time horizon Improvement requires a long-term orientation and a strategic

approach to management.

Motivation Quality problems are caused by poor systems-not the

employees. Employees are intrinsically motivated to do quality

work if the system supports their efforts.

Stability versus change/innovation/personal growth Quality improvement, is continuous and never ending. Quality

can be improved with existing resources.

Orientation to work, task, and. coworkers The main purpose of the organization is to achieve results that

its stakeholders consider important. Results are achieved

through internal process improvement, prevention of defects,

and customer focus

Isolation versus collaboration/cooperation Cooperation and collaboration (internal and external) are

necessary for a successful organization.

Control, coordination, and responsibility A shared vision and shared goals are necessary for

organizational success. All employees should be, involved in

decision making and in supporting the shared vision.

Orientation and focus-internal and/or external An organization should be customer driven. Financial results

will follow.

From

Deter, Schroeder, Mauriel (2000) A Framework for Linking Culture and Improvement Initiatives in

Organizations, Academy of Management Review, vol. 25, No. 4, 850-863

Building Culture

• Culture dominates

• Quality as a subculture

• How can culture change?

– Unfreezing, cognitive restructuring,

freezing

Cultural Change

Summary

• Change can be accomplished, but it is difficult

• Imposed change will be resisted

• Full cooperation, commitment, and participation by

all levels of management is essential

• Change takes time

• You might not get positive results at first

• Change might go in unintended directions

Approach: Contingency Perspective

From

Sitkin, Sutcliffe, Schroeder (1994) Distinguishing Quality Control from Learning in Total Quality

Management: A Contingency Perspective, Academy of Management Review, vol. 19, No. 3, 537-564

Deployment Planning Elements

• It is helpful to go back to strategic

management frameworks when considering

basic deployment planning elements

– Malcolm Baldrige

Deployment Components

Components Components Components

Vision Financial

Objectives Branding

Components

Methods

Components

Policies &

Standards

Phases Non-Financial

Objectives Promotion Tools Training

Culture

(Simple Rules)

Specialists

(Belts)

Leadership

Development

Financial

Reporting(QNI)

Integration w/

other Systems

System Map Geography/

Sites Terminology Lead Users Reviews

Balanced

Scorecard

Job Classes/

Positions

Drivers of

Behavior

Focus

Areas

Project

Portfolios

Deployment Plan Example: MGPP

Objective 2003 2004 2005 Vision Develop Project Selection Process

•Corporate design

•Division planning

•Build System portfolio

•Division operating and coordinated with Corporate Process.

•Project Selection owners identified

•Budgeting linked to portfolios

•Corporate and Division Portfolios value known and linked to strategy.

•Performance targets are hit

Project Review and Reporting

•Some review Leadership Team

•Project reporting initiated

•Project reporting from all corporate projects

•Web/intranet accessibility

•Benefits quantified

•Board & Leadership Team Review

•Alignment from Board Room to Department on project reviews

•Every level has clear understanding of progress against Scorecard targets

•Reviews are open, honest, data-based

Develop Process Infrastructure

•System Map drafted

•Process Management planning with Leadership Team

•Initiate PM for 6-8 core processes with corporate champions and owners

•Establish PM Forum

•Extend process management to 9-15 processes

•Each Division has PM Forum

•All core processes, some leadership and support formally managed

•Project priorities influenced by Process Owners

Launch New Projects & Develop Specialists

•100 GBs trained

•15 Black Belts trained

•300 GBs trained/cert

•40 BBs trained/cert.

•Financial Analysts on DMAIC/DFSS teams

•30 Champions trained

•5 Master BBs trained

•10 Design BBs trained

•All current and future leaders are GBs

•100 BBs

•1 MBB in each Division

Build Analytic Skills, Tools & Methods

•Minitab

•Some DFSS

•DMAIC

•Discovery

•Basic Data Analysis wkshps (3)

•Minitab wkshps

•DFSS wkshps (2: 5-7 projects)

•Lean wkshps (2)

•Discovery Wkshps (3)

•Basic Data Analysis wkshps (2)

•Minitab wkshps (TBD)

•DFSS wkshps (2: 5-7 projects)

•Lean wkshps (2)

•Discovery Wkshps (3)

•Capability to launch and achieve strategic initiatives in every Division

Define and Address Culture

•Simple Rules drafted •Finalize Simple Rules

•Corporate and Division leadership engage all employees

•System support is expected and practiced

Enhance Leader Development

•Informal recognition

•Some performance requirements for Sr. Leaders

•Recognize team behavior

•BB career path defined

•Core Leader Competencies & Behaviors aligned

•Succession planning for BB and MBB roles

•PE improvement and PM activities are recognized

•Succession plans and candidates for all leader

Deployment Planning Exercise

• Use the Multi-Generation Project Plan to

begin creating your deployment plan

– Brainstorm components and fill in phases/time

frames

– Place the components on the MGPP

– Start with your vision and identify goals for

each phase/time frame

Component Phase 1 Phase 2 Phase 3 Vision

Deployment Plan

Deployment Planning Summary

• Leaders have few chances to fundamentally change their organization

• There are common phases in Six Sigma deployment

• Numerous things need to be considered during a deployment

• Careful thought should be put into the deployment of a deployment plan and there should be wide involvement

Extensiveness of a Deployment

Management Philosophy & Culture

Management System

Methods

Tools

Applications

Note: This diagram is based on the work of

Dr. Mark P. Finster of the University of Wisconsin

at Madison

Common

Focus

Areas

Lasting

Change

Six Sigma and the Path to Transformation

A) Project-based Improvement

R

E

S

U

L

T

S

B) Infrastructure Alignment

C) Governance for Transformation

R.I.P.?

TIME

Strategic Scorecard (especially

predictive, preventive indicators)

Integrated Management System

Leader Development/Succession

Educating the Board of Directors

Marketing and Design

H.R. Policy

Finance

Information System

“Best Practice” exchange

Supply Chain

Project Savings

Black Belts, Green Belts

Etc.

3M Stock Performance

W. James McNerney as CEO

This presentation was written by Professor Kevin Linderman of

the Carlson School of Management, University of Minnesota.

Published with kind permission from Linderman.