Six Sigma Leadership & Culture

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  • 1. 6 - Leadership & Culture Shifting the Paradigm - To ensure success Discovering the Reality of Lean Six Sigma in Manufacturing, Services, & Transactional EnvironmentsDallas TX Dec 2,3 2004 Bill Pugh VP Operations, Oc North America

2. Agenda

  • Oc (the commercial that allows me to be here)
  • Success vs Failure
    • The basic problem and qualitative findings
  • Utilizing the tools of 6
    • A more structured approach
  • Project findings
    • Recommendations
  • What must be done
  • An approach
    • A roadmap for a successful 6 journey
  • Conclusion

3. Who we are, what we do Oc 4. Oc Who we are & what we do

  • We are.
  • ~$3 billion sales
  • Technology leader for over 125 years
  • Headquartered in the Netherlands
  • U.S. accounts for ~40% of the company
  • Publicly traded in Amsterdam and the NASDAQ
  • 22,000 employees
  • 2000 R&D personnel (imaging technology and software)

We serve the enterprise with integrated document management solutions

  • What we do
  • Provide industry-specific document processing & management solutions
    • High Speed Digital Print
    • Wide Format
    • Facilities Management
  • Throughout the organization
    • Office, Data Center, Central Reproduction, Transaction Printing
    • Design Document Management Systems
    • Display Graphics
  • Analytical (data driven) consultation
  • Document management staffing

5. Documentscreate problems. Oc delivers solutions

  • Did you know?
  • Knowledge workers spend up to 50% of their time trying to find documents
  • 2 to 3% of every expense dollar is eaten up by printing costs
  • 6 to 15% of a companys expense goes into document creation, distribution, maintenance, and disposal
  • Document management, is not a core competence of most organizations
  • Some organizations have a few experts, but they generally focus on just a department or two.
  • Most customers only use part our expertise and capabilities
  • Technology is moving too fast for most enterprises to optimize on their own

This is where we come in. Oc provides effective document production and management solutions, providing significant savings 6. We are known by the customers we keep & the solutions and savings we provide Reduced document retrieval from 3.75 days to under 5 minutes Management of 400,000 infrastructure drawings, some from the 1880s Automation of land plat storage and customer self-service retrieval Eliminated 1,300 filing cabinets, reduced staffing 90%, increased file distribution accuracy 78% Print on demand - training manuals Maximized efficiency of 55 million monthly statement printing requirement Unification of mail processes and 6 productivity for continuous improvement Management & staffing of enterprise-wide printing and wide format drawings, operating 35 production centers reduce cost 45% Consolidated 9 printing centers into 1, staffed by Oc personnel 7. The basic problem, and qualitative findings 6 Success vs Failure 8. Large numbers of 6 efforts are falling well short of expectations many are failing

  • Many organizations have embraced 6 with tremendous fanfare, and fairly quickly this miracle program, quietly fads away.
  • Potential to deliver significant results
  • Little success to show for the effort
  • Leaving behind:
    • a large bill for the project team
    • disillusioned Black & Green Belts
    • a bitter taste in the sponsors mouth

With 6 . . Failure should not be an option 9. Common wisdom has clearly identified the cause and the culprits

  • A quick, qualitative, analysis reveals that the top reasons given for failure are:
  • Leadership CEO, did not provide sustained support
  • Culture People, did not embrace change
  • Internal systems & processes not robust, lack metrics

This is becoming all too familiar Frankly, I have seen this movie before,and I did not like it the first time. 10. A more structured approach Utilizing the tools of 6 11. Using 6 methodologyto dig past common wisdom

  • Define the problem
  • Many 6 programs fail.
  • Initial hypothesis: poor leadership, culture, or lack of robust systems

My challenge Usetools to identify the defect and to develop a solution

  • Measure
  • Successful / Failure
  • Met expectations or not
  • Analyze
  • Getting to the root cause
  • Yf X, X, X, X, ..
  • Improve
  • Common sense and simple ANOVA reveals the true root cause
  • The classic low hanging fruit

Control Great news, the solution is within our capability and control (DMAIC) 12. Consider this my final presentation for my 6 project

  • Problem statement
  • 6 programs fail too frequently

My initial finding it is a leadership issue And, there is more to leadership that we generally realize Defect Unsuccessful 6 implementation or results that fall short of expectations Goal Identify the root cause recommend a solution 13. Recommendations Project findings 14. Benchmarking leaders Great leaders drive & create great change They have vision, direction, fortitude. . They march to their own drummer 15. These leaders had a huge advantage

  • They had vision
  • They may not have known exactly where they were going, but they knew they did not like where they were

It is rare to have such advantages

  • They had direction
  • They were the experts & the leaders; they could drive the change
  • They had fortitude
  • They kept at it in face of tremendous odds and numerous nay-sayers
  • They had time
  • Because they were first, they did not have a deadline to make

16. Unfortunately, most of us are not blessed to have such great leaders, nor be the first

  • Our leaders are not extraordinary, and they are not schooled in 6
  • On average, most are average
  • 6 was not a requirement when they were climbing

Not Great, Not First But they want to succeed

  • 6 has been around for a while
  • Deming, SPC, 3 1940s
  • Motorola & Mikel Harry - 1980s
  • Allied Signal & Larry Bossidy early 1990s
  • GE & Jack Welch mid 1990s

17. You need to help them become great 6 leaders

  • Set them up for success
  • Know the organization and its capabilities
  • Manage expectations
  • Set attainable goals
  • Use the right tools
  • Coach, mentor, & lead your leader / sponsor
  • Ensure there are no surprises
  • Show them the way
  • Make them look good

18. Yf X

  • Great Leadership
  • f
  • Great Followership

And that is the paradigm shift It is not about them, .It is about YOU!Followership is from Greg Reid, SVP & Chief Marketing Officer, Yellow Freight 19. How to be a great follower creating great leaders So what must you do? 20. First, know why you are there

  • Hired gun
  • Come in, solve a few nasty problems, move on
  • Point of the sword Leader using you to drive change, at your expense
  • Leader wants a few quick hits
  • Develop a sustainable 6 culture
  • Data driven
  • Continuous improvement
  • Leader wants to be in it for the long haul

Here, we are addressing the second option 21. You need to help them become great 6 leaders

  • Set them up for success
  • Know the organization and its capabilities
  • Manage expectations
  • Set attainable goals
  • Use the right tools
  • Coach, mentor, & lead your leader / sponsor
  • Ensure there are no surprises
  • Show them the way
  • Make them look good

22. Do some research know your culture, process, population

  • Is your culture one accepting and excited about change?
    • Is change management required
  • What is your process entitlement?
    • Should you improve or replace
  • Do you have consistent & repeatable processes?
    • Should you be focusing on standardization
  • Are you employees ready for the quantitat


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