Agenda
General discussion on quality
Technologies of business quality programs
Technology is never about the technology, but rather it’s about the relationships involved
Tying quality efforts to strategic planning
Business Structures to encourage quality
What type of leadership is causing quality programs to fall short of their potential?
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What Is Quality
1. What is Quality?
or, Search for the “Holy Grail”
“In the next century, a company
will stand or fall on its values”
Robert Haas, CEO Levi Strauss
Lecture Series by Jim Maginnis
Organizational Kinetics
Copyright 2001 - 2009
1
2. General Agenda
General discussion on quality
Technologies of business quality programs
Technology is never about the technology, but
rather it‟s about the relationships involved
Tying quality efforts to strategic planning
Business Structures to encourage quality
What type of leadership is causing quality
programs to fall short of their potential?
2
3. Table of Contents: Quality…
…in thought, education, government,
software, service, data, ethics, and culture
(Lecture 1 of 6)
…in self-reflection, encouragement, double-
loop learning, vision, and change
(Lecture 2 of 6)
…in risk assessment, process metrics,
project management, and problem definition
(Lecture 3 of 6)
3
4. Table of Contents: Quality…
…in a system development life cycle,
architecture, team building, and release
(Lecture 4 of 6)
…in control tools, quality assurance,
process reengineering and management
(Lecture 5 of 6)
…in integrity, business strategy, leadership,
and organizational kinetics
(Lecture 6 of 6)
4
5. What is Quality?
… in thought, education, government,
software, service, data, ethics, and culture
It is difficult to sustain honest leadership in a corrupt
culture or corrupt leadership in a honest culture.
Lecture 1 of 6 by Jim Maginnis
Copyright 2001 - 2006
Table of Contents
5
6. Discussion on Quality: What Is
Quality In Thought And Statement?
Unity, authority, organization, engaging,
vividness, economy, sensitivity, clarity,
emphasis, flow, suspense, brilliance,
precision, proportion, depth, and so on…
– Unity can be improved with an outline
– Authority can be improved with footnotes and
references to seriously reviewed sources
– Etc…
Pirsig‟s Metaphysics of Quality
6
7. For Example, What Is A Quality
Introduction And Conclusion?
Introduction
– Grab interest and inspire the reader
– Provide paper thesis, purpose, or message
– Problem description, alternatives, and solution
– Sell the author as the best person for delivery
Conclusion
– Restate thesis
– Summary of key lessons learned
7
8. Quality Writing Is A Process
Develop and track efficient work habits
– Project journal should include all references
Identify the audience and resources
Clarify in your mind what you want to say
– Storyboarding uses a sequence of images
Begin with an abstract, intro, and outline
Flesh out the outline (keep asking why)
Have others read and critique the work
Write each chapter, repeating the above
8
9. What is Plagiarism?
Taking credit for the words / work of another
Quoting someone‟s entire paper is no better
Summarizing/paraphrasing still not original
Many say that without a Doctorate, though,
one is not capable of an original thought, but
– Percy Spencer held 225 patents, including for the
microwave, with only a third grade education
– HP and Atari turned Jobs/Wozniak away without
college educations, so they started Apple Comp.
– Dropouts started Microsoft, Dell, Oracle, Honda
9
10. By what measure does something
get into a museum?
By its excellence – ----------------
It‟s the Best!
No! It‟s the First
Quality is first about being unorthodox
It is when we allow an individual, in fact, to
redefine quality for the majority. An item
makes it into a museum for its historical
significance in changing our perspective.
Einstein was rejected by every instructor
through college, ending up a patent clerk
10
11. NOT All Opinions Are Valid!
Hypotheses or Check with Valid Opinion
Intelligent hunch IPO Analysis and Action
(Input) (Processing) (Quality Output)
Textbook
All questions Theory and
Controlled Critical Thinking means
are “valid” Experiences
identifying assumptions,
issues, and criteria for
“Wishful Thinking” judgment for making
or “Blowing Smoke” sound conclusions
“Peacock” or “Weasel”
11
from the evidence.
12. Social Critical Theory
Aimed toward critiquing and changing society
by relating the parts of society to its whole just
as Copernicus revolutionized astronomy by
taking into account the position of the observer
Derived from Kant‟s (1700s) arguments for the
use of synthetic reasoning, “thoughts without
content are empty, and intuitions without
concepts are blind” as well as Marx (1800s),
“philosophers have only interpreted the world
in certain ways; the point is to change it.”
12
Quality is being an effective change agent
13. How is Murphy‟s Rule involved?
First: “If there is any way to do it wrong,
some sod will do it.” or “The universal
aptitude for ineptitude makes any human
accomplishment an incredible miracle.”
People always refuse the right answers
Mutated: “It‟s not my fault, predictably bad
things can‟t be planned for” was written by
Larry Niven. This mimetic drift clearly
demonstrates Murphy's Law acting on itself!
Corollary: Any system which depends on
human reliability is inherently unreliable.
13
14. Instead, Management by Fact
Companies are moving away from relativistic
management by opinion or a “soft” science
– where only subjective “feelings” define truth
» “I know it in my gut!” is the worst reasoning!
» Failure seen only in terms of extenuating circumstances
Firms are “teaming” to collect and use hard
numbers to achieve desired achievements
– Establish baseline and target, calculate gap, find
problems, develop and implement a improvement
process, track with ~6 key metrics and adjust
14
15. Management by Fact (cont)
Starts with the establishment of a vision with
objectives and appropriate measures.
And, industry and customer quality standards
Reduce errors & patching and upgrade time
Identify & answer critical business questions
Key aspect of Total Quality Management
Tools include Oracle‟s E-Business Suite
(http://www.oracle.com) and the Balanced
Scorecard (http://www.bscol.com).
15
16. America‟s Dark Legacy
The Alien and Sedition Acts of 1798
“The only good Indian is a dead Indian”
Economy based on horrific slave treatment
Suspension of habeas corpus in Civil War
Banning Chinese immigration 1882-1968
Kidnapping & internment camps in WWII
Blacklisting witch hunt in the McCarthy era
Harassment of Martin Luther King, Jr. et al
Corruption of law enforcement and education
16
17. Governmental Corruption
Excludes the poor
Marginalizes the middle classes
Destroys the base of natural resources
Weakens the economy
The public continues to be apathetic about
crime and misconduct as long as it is
contained. Successful reform must thusly be
directed at enhancing the national culture.
17
18. Solution Characteristics
Locally empowered actions must cover both
the public and private sectors with systems of
investigation, prosecution, and education
Oversight of elected and non-elected officials
Sources must be addressed by long-term
Societal, Holistic, and Networked Strategy
Powerful auditing organizations backed by
specialized anti-corruption legislation
Citizen participation with free & open press
18
19. Problems Solutions
Immediatism Long-term policies that incorporate short and
medium term results
Sectoralism Integral, holistic policies and programs with
information territorial approach
Bureaucratism Networked, ends-oriented, problem-solving,
and opportunity seeking orientation
Governmentism Leadership of government, civil society,
through consultative, participatory, partnership
seeking, networked approach
Corruption 100% transparency and 0% tolerance for
corruption
Lack of Combine traditional and non-traditional
Resources resources
19
20. What‟s Wrong With Education?
World‟s worst for 3 R‟s but #1 in self-esteem
The greatest correlation is with teachers!
– Student scores vary more than 20% by changing
teachers – 2-6 times as by grade, school, or district
– Typical teacher is an academic underachiever from
bottom third of test scores and can‟t pass GED,
ETS Math test, or Mass. Educator Certification
– 16th highest paid profession (CNN: “Best Job”)
People refuse to see that quality is measurable,
that the problem lies inside the room, and the
20 world cannot be divided by “us and them”
21. How To Get Better Teachers
Milken Teacher Advancement Program (TAP)
– Performance-based accountability and merit
pay based on long-term student progress
– Professional growth with evaluated teaching
– Multiple career paths (associate, mentor, master)
– Market-driven compensation (e.g.: more for math)
– Expanded supply of high quality teachers
9 states (30% of students) have TAP initiatives
– Arizona, South Carolina, Colorado, Florida,
Georgia, Michigan, Pennsylvania, Texas, Virginia
21
22. Good Teacher Causal Predictors
Coursework and certification in subject area
Prestige of degree institution and advanced
degrees, especially for secondary schools
Pedagogical coursework, but ONLY when
coupled with advanced content knowledge
High literacy and verbal test scores
But, NOT the National Teachers Exam!
NO value in the national teacher certification!
22
23. What Is Quality?
“A Degree of Excellence”
(Webster‟s Dictionary)
Better => The fitness for use,
The ability to meet intended
customer expectations and
produce customer successes
With increasing efficiency, and
The viral cultivation of
quality in all involved
23
24. Quality Discussion Summary
A constant despite no consensus on how to
describe it or which paths will best achieve it
Requires originality, change, and accountability
which requires that dissention be encouraged
Good objective & subjective metrics come from
matching internal freedoms & external controls
where everybody leads, is responsible, and acts.
Quality is systemic - not heroes and villains
Modeling integrity with “walking the talk”
Long term results are more important
24
25. The Value of Quality
The Malcolm Baldrige National Award is
given by the President to organizations
judged to be outstanding in seven areas:
leadership, strategic planning, customer and
market focus, information and analysis,
human resource focus, process
management, and business results.
From 1995 through 1999, winners of the
Malcolm Baldrige Quality Award
outperformed the S&P 500 by 6.5 to 1
25
26. Key Areas of Quality Concern
Software
Customer Service
Data
Internet Web Production Environment
Where All Three Are Combined
Presented concepts are just as useful for
governmental and community groups.
26
27. Aspects of Software Quality
Flexible: Continuously Evolving
Reusable: Optimal Code Productivity
Maintainable: Able to Be Quickly Repaired
Integration: Couple Products Together Easily
Scalable: able to handle large loads
Consistency: Rapid Learning and Use
Usable: Optimal User Productivity
Reliable: Maximizes System Productivity
Functional: Able to Produce
27
28. Aspects of Service Quality
Timeliness: Customer Waiting
Completeness: Customer Gets All Asked for
Courtesy: Treatment by Employees
Consistency: Same Level of Service for All
Accessibility and Convenience
Accuracy: Performed Right Every Time
Responsiveness: Reactions to the Unusual
28
29. Aspects of Data Quality
Timeliness: Quick to Acquire and Provide
Integrity: Appropriate and Secure
Accuracy: Regular Consistency Checks
Completeness: All the Customer Needs
Duplications: Regularly “Cleaned” Data
(on both the front and back ends)
29
30. Ethical Issues Framework
– Privacy – Property
» Collection, storage, » Ownership and value
and dissemination of of information and
information about intellectual property
individuals
– Accuracy – Accessibility
» Authenticity, fidelity, » Right to access
and accuracy of information as well as
information collected appropriate barriers
and processed (e.g. fees) to access it
30
31. Characterizations of Quality
Producer and user perspectives
Teams and Quality Management Principles
Change Management and grabbing their hearts
ISO 9001 and Six Sigma statistics processes
Key Financial, Product, Customer Satisfaction,
and Process Metrics => Metrics Action Team
Process Control Tools: Root-cause, Fishbone
SDLC Development models and methods
Completing business context and real testing
A competitive weapon and company “glue”
31
32. Perspectives on Quality
The Meaning
of Quality
Producer's User's
Perspective Perspective
Quality of Quality of
Conformance Design
Production ----------------- ----------------- Marketing
Work Process Sturdy, Easy
Cost to Use, Price
Product
Fitness
32
33. Team vs. Workgroup
Japanese companies have successfully been
using quality circles while no one has in U.S.
– Quality Circles need to be Workgroup based
Most 12-step programs fail within a church
– 12-step is a Team based organizational process
Work Groups have “Bosses” that lead
Teams are based on equal participants that
are guided by a pre-agreed Team Charter
33
34. What is a Team Charter?
A team charter is a critical defining method
for spelling out and gaining consensus on the
role and responsibilities of all team members
Cannot be created after the culture develops
Problem Statement, Project Mission and
Scope, Business Case, Values, Resources,
Customers, Deliverables, Success Metrics,
Key Milestones, Team Member Expertise and
Commitments plus Expectations and
Consequences, and Communication Plan
34
35. Team Success Causal Predictors
Well Defined Structural Elements
– Shared team vision and management
– Clear and agreed agenda and roles
– Conflict Management Strategy spelled out
Positive Interdependent Behaviors
– Group encouragement of innovation and diversity
– Effective collaboration and decision making
» Information and help is freely shared
» All team members are equally responsible
– Effective time management during all meetings
35
36. Start by Examining the Processes
Process Quality Framework = “Best Practices”
– Process Definition and Modeling
» ISO 9000:2001 and SEI CMM models
» OPEN and Rational Unified Processes (RUP)
» IDEAL, Bellcore TR-179, and SPICE methods
» Bootstrap, Healthcheck, Trillium, GQM, and Tick-IT
» Function, Behavior, Organization, and Information
– Assessments (Benchmarking & Data Analysis)
– Process Improvement Programs
– Continuous Measurable Improvement (CMI)
36
37. Quality Management Principles
Customer Focus: Meeting customer needs
with an aim of enhancing their satisfaction
(more importantly, though, their successes)
Leadership: Sound leadership skills must
be demonstrated within the organization.
Involvement of People: People are the
most valuable resource, and thus should be
party to all decisions and activities. The
more important the information, the more
people that should see it (right to know).
37
38. Quality Management Principles
A Process Approach: An object-oriented
management outlook of the business as a
system of processes and interactions, based
on some sort of iterative plan-do-study-act
cycle approach.
A Systems Approach: A holistic awareness
of the systems in place and relationships
will enhance products and services as well
as the satisfaction of internal and external
customers.
38
39. Quality Management Principles
Continual Improvement: By knowing what
the organization does and how well, one can
identify ways to continually improve both the
systems and their processes.
A Factual Approach: Business performance
and the quality of products and services are
best improved by the analysis of data, internal
audits, and management reviews.
39
40. Quality Management Principles
Mutually Beneficial Supplier Relationships:
Sharing organizational and customer needs
with suppliers to gain in terms of decreased
costs and improved performance.
These principles are intended to…
– Provide a clear statement in a business framework
– Provide management an understanding of benefits
– Provide an understanding that will facilitate a
successful culture for the ISO9001 standards
40
41. What is Change Management?
Mapping cultural to technology changes
73% of CEOs see cultural factors as most key
Requires flexible, iterative, dedicated, well-
funded processes with full executive support
Human Capital Perf. Management (HCP) is
results driven to better employ, deploy,
develop, evaluate, and integrate a workforce
Focuses on how things are done rather than
just what is done using Balanced Scorecards
41
42. The
Change
Wheel
identifies
critical
success
factors
that will
facilitate
program
success
42 (From http://www.army.mil/aeioo/docs/TM_Strategy.pdf)
44. Organizational Culture
Unwritten Expectations, Values, Norms
Core attitudes, values, Rules, Policies,
Core Beliefs & Assumptions
Language and
and Slogans Behaviors
and behavioral norms Stories, Legends, Control
Systems
collectively valued by and Heroes
Symbols
organizational members Rites, Rituals,
and Ceremonies
and Artifacts
– Rituals, rites, ceremonies
– Stories, legends, heroes Language
– Rules, policies, slogans Rituals Customs
– Language and behaviors
Organization
– Control systems
– Symbols and artifacts Legends Values
44
45. Translating Core Characteristics
Language Metaphor, jargon, and
communication styles
Customs Standard practices and norms
Values Guiding principles, mission
statements, and philosophy
Legends Founder stories and critical
incidents
Rituals Annual award presentations and
promotion ceremonies
45
46. Culture Effectiveness Continuum
(Banner & Gagne)
Ineffective Reactive: Meet challenges with
action; always struggling to keep up
Responsive: Good in stable
environment, but not in dynamic one
Proactive: Analytical, anticipating
emerging trends and always adapting
Interactive: Vision based, functions
as a whole, focuses on connectedness
Effective Inspired: Goes beyond constraints
46 (From http://www.neiu.edu/~aserafin/421/SchoolCulture/)
47. Organizational Socialization
Formal
– Orientation Programs
– New Employee Training
– Employee Handbook
– Job Rotation
Informal
– On-the-job Training
– Supervisor/Coworkers Mentoring
– Experiences – Career Functions
– Word-of-mouth – Psychosocial Functions
47
48. Organizational Psychology
All organizations exhibit psycho-pathology
– St. John‟s Syndrome and Koinonitis
– Manic and Manic-Depression (Bi-polar)
» Grandiose plans, sense of invincibility
» Respond with structure and performance plans
– Schizophrenia
» Need to define mission and better time management
– Common Paranoia
» Even successful intervention will make you unpopular
– Narcissistic, megalomaniacal, and theomanic
48 Cohen and Cohen, The Paranoid Corporation
49. Organizational “Shrink”
Any organization that does not perceive
its own pathology, will destroy itself
– Refuses to see internal problems and then
projects troubles on external sources
Mental health starts with consciousness
– Serge and others top management consultants
refer to this as “presence”
– Determine if the
current solutions
have been coerced
49
50. Stick to Coaching and Not Therapy
Do‟s (focus on future and goals)
– Develop a balance by clarifying core values
– Help set better and more meaningful goals
– Encourage and provide the tools, support, and
structure for people to do more on their own
Don‟t (focus on past or present)
– Don‟t work on “issues” or delve into the past
– Don‟t try to change personality structures
– Don‟t try to make better any psychic pain,
anxiety, depression, or sexual dysfunction
50
51. Defuse Anger and Agree
Plan Ahead: your bottom line, their substitute,
everyone‟s interests, and possible outcomes
– Let your secret Plan-B dictate your Plan-A
Emotional control and reduce tension
Persuade by focusing on interests, not positions
Consider Authoritative, Righteous, Win-win,
and Relationship-building options…
With both distributive and integrative solutions
51
52. Negotiating with a Narcissist
Repeatedly find agreements, even the weather,
and get closure (confirm and leave a topic)
Sitting is better than standing for being calm
Never validate their self-destructive delusions
Avoid trying to disprove their perceptions
Be assertive and keep positive: never say, “No”
No hedging or dilution: no, “I feel awful, but”
Ask questions that include their cooperation
52
53. Handling the Neurotic
All organizations exhibit neuroses
– Conspicuous consumption
– Constant need to check on employees
– Shoot the messenger
Complaining never works as it just makes
them more neurotic. Better to overload them
with unimportant information and kindness
– Prevalent depression → well-being attacked
– Denial → meet with one-on-one mirroring
– Compulsive → meet with best failure awards
53 – Post-trauma → “distraction therapy”
54. Negotiating with a Personality Disorder
Rigid & adversarial relationship perspectives
– Chronic inner distress (fear of abandonment)
causes excessive need for controlling others
– Experts at blaming others (rather than self)
– Lying is often justified to an ends or revenge, likely
to call others statements into question, with an
intensity likely to fool the naive person
Seeks jobs as councilor, teacher, cop, religious
authority, as well as organizational leadership
Only motivated by his own personal reasons
54
55. P. A. S. S. Emotional Needs
Power: often by the “power of the purse”
Affiliation: identity that is different from
how they see themselves today
Status: need to feel important and visible
Security: they will be safe
In general, Personality Disorders are more
focused, better organized, and with superior
social skills (due to need to control others);
so, they‟ll win head to head, being smarter
55
56. Handling the Personality Disorder
Reduce anxiety (esp. fear of abandonment)
Calmly maintain control of conversation
Slow down, talk slowly, brainstorm solutions,
to keep the conversation simple and focused
Encourage them to be part of the solution to
support their feeling of maintaining control
Show how giving up can be winning control
by identifying their particular strengths
Bipolar are the most difficult to predict
56
57. Types of Personality Disorders
Borderline Personality Disorder: wide mood
swings, rage, idealization and devaluation
Narcissistic Personality Disorder: feels
superior and entitled to special treatment
Histrionic Personality Disorder: needs chaos
Anti-social Personality Disorder: disregard
for societal rules with very little empathy
Dependent Personality Disorder:
preoccupied with helplessness and passivity
57
58. Negotiating with a “Normal”
30% are Neurotic (blaming themselves),
15% Personality Disorder (blaming others)
45% are not primarily motivated by their
repressed fears and emotions, but still have a
strong emotional content to decision making
What to say when a customer is wrong?
“You’re right! ...and there are
many people who feel the same way. From
years of experience, [NO however] I’ve
found that in fact (insert the truth)... etc.”
58
59. Proxemics and First Impressions
Humans (& animals) make territorial claims
– Walking behind a desk can be very invasive
– Americans are especially space conscious
Malcolm Gladwell‟s book, Blink, showed
how critical is our 5-second first impression
– When a new prospect finds your web site, you
have five seconds to convince them to stay
– People enjoy being right, so they will continue
on a poor, but immediately attractive, web site
59
60. Discussion Question
How is performance currently being measured and
data collected in your organization? How is
success measured and/or quality defined?
Does your organization tend to fix with short-term
patches or fully diagnose? Is it more neurotic
(blaming employees) or PD (blaming others)?
What type of cultural changes might be required
for a new perspective on quality?
60
61. 10-Minute Break…
Question:
What do you
get what
you cross
an instructor
with a spud?
Answer:
A Facili-Tator
61
62. What is Quality?
… in self-reflection, encouragement,
double-loop learning, vision, and change
Change agents create fit products with increasing
efficiency while cultivating excellence in all involved.
Lecture 2 of 6 by Jim Maginnis
Copyright 2001 - 2006
Table of Contents
62
63. “Today‟s illiterate are not be those who
cannot read or write, but those who cannot
learn, unlearn, and relearn.” --Alvin Toffler
“It is not the strongest or most intelligent of
the species that survive, but the one most
responsive to change.” --Charles Darwin
“Willingness to change is a strength, even if
it means plunging part of the company into
total confusion for awhile.” --Jack Welch, GE
“It is the change agent‟s duty to prepare the
organization for change. So, he or she must
be able to take the pulse of the organization
to assess readiness.” --Dr. Richard Bryteson
63
64. Self-reflection and Differentiation
Fahrenheit 451‟s solution was to remember,
build mirrors, and contemplate for a year
Six-Sigma helps identify, develop, & nurture
effective and efficient internal change agents
Members should first reassess effectiveness
of their individual coping strategies
Motivation to change (“unfreezing”) comes
usually from growing anxiety with reduced
blaming (hitting “bottom” and surviving)
64
65. The Successful Professional is…
Motivated, strong work ethic, feels accountable
Flexible, creative, and open minded
Intelligent, w/ common sense (“street smarts”)
Able to shift to organizational ecology as focus
Open to peer supervision
Likely to volunteer to be trained
Willing to modify policies & dedicate resources
Ability to take the “lead” in decision making
65
66. Personal Pareto Analysis
(80% of results comes from 20% of work)
Know what is important to boss and customer
Prioritized H/M/L to-do list that all agree on
Uninterrupted time for correspondence
Personal brainstorming when most alert
Consensus on performance goals with boss
Organized office & calendar, ready for fires
PERT chart for all projects
Delegate, Listen, and Network well
Daily exercise, alone, friends, and good sleep
66
67. Change Agents
We can all be agents of change “The process of
– Change-agent skills are as unleashing
important to our success as our expertise to
implement
professional discipline skills
organizational
– The purpose of our jobs is to change
change what needs changing by for the purpose
adding value each and every day of improving
– Foresight, flexible, and responsive performance”
(Swanson &
Competence maintains the system Holton, p. 260)
Expertise changes the system
67 Development
68. Preparing Others for Change
Change Readiness: It is the change agent‟s
duty to prepare the group for change by
conveying credible positive expectations as
well as providing empathy and involvement
Building A Shared Vision: The participants in
a change process must see what the pain and
work of the change process will bring them –
the change agent must build a vision with
them and continually communicate it
Develop Political Power: Assess support
68
69. Sources of Power Strategies
Individual Sources
Power Strategies
of Power
Knowledge
Knowledge Playing it
Straight
Others’
Others’ Support Using Social
Support Networks
Personality Getting Around
Personality Formal System
69
70. Elizabeth Kubler-Ross Model
Deal to skip: Detail benefits
Sabotage: Acknowledge anger Blame game: Focus on root
Shoot messenger: ID poor behavior cause
Withdrawal: Focus on problem
Owns solutions: Use as Coach
Focus on benefits: Provide
recognition
Forget it: Review business case
Apathy: Emphasize inevitability No Control: Stepwise w/ follow-up
Rationalize: Allow to sink in Absenteeism: Reinforce positive
(adapted from http://www.army.mil/aeioo/tm/)
70
71. All In A Day‟s Work
A structured approach to changing others
begins with a planned mind-body focus to
building personal intervention strategies
– Stress management, relaxation therapy, etc
71
73. Three Steps of Successful Change
Kurt Lewin asserts that successful change
requires unfreezing the status quo, changing
to a new state, then refreezing the new change
to make it permanent. Moving away from the
equilibrium can be achieved in three ways:
– The driving forces, which direct behavior away
from the status quo, can be increased.
– The restraining forces, which hinder movement
away from the status quo, can be increased.
– The two approaches can be combined.
73
74. Unfreeze – Break Frame of Reference
Create crisis to motivate people for change
Arouse dissatisfaction with the current state
– Tell them about deficiencies in the organization
– Expect instability as people lose old beliefs
Get people involved in decision making
Users may prefer to leave than endure
– These feelings and attitudes need to be
managed and understood
74
75. Unfreeze – Emotional Support
Insecurity, anger and self doubt part of
user's perception of themselves, the new
system and the changes being introduced
Build in rewards
– Tie rewards to change/use recognition, status
symbols, praise to get people to go along
Strengthen top executive support
– Need to break down power centers
75
76. Change / New Ways to Work
Establish new beliefs and behaviours
Line management should provide the direction
Establish clear goals and timelines
Institute smaller, acceptable changes that
reinforce and support the bigger picture
– Procedures, job descriptions, reporting
Develop management structures for change
– Plans, strategies, mechanisms that ensure change
76
77. Change – Second Stage
Begins when employees start to understand
changes will benefit them and the company
– Recognise and accept the whys and wherefores
Assistance is required at this stage
– Assist line management in establishing change
– involve users and introduce them to the system
– dispel the myths and rumours
– communicate to users how to use the system
77
78. Change Communication
Maintain open, two-way communication
– What people don‟t know & understand is a problem
Communicate how it will effect people
– Allay any unfounded fears users might have
Stop the “rumour mill”
– Newsletters, mail, bulletins, meetings
– Technicians must often deal with
users‟ issues without understanding
fully the broad business rationale
78
79. Refreeze – No Going Back!
When the new way to work has arrived
Celebrate “death” of the old system
Cannot assume „refreezing‟ is end of
process or ever takes place
Further change must be anticipated….
Develop institutionalizing structures
– Organizational appropriate retreats,
technologies, and performance appraisals
79
80. Refreeze Support
Not sufficient to install / implement new
system with or without enthusiasm of users
Need ongoing support and training for as
long as it takes to become institutionalised
Build success experiences
– Set and work towards targets for change
Reward desired behavior
– reward behavior that reinforces changes
– reward use of old system during interim
80
82. Organizational Culture Recap
It‟s like an Iceberg or an Onion
– Little shows on the surface and under many layers
Lasting change requires new beliefs
Organizational Development (OD) aims to:
– Deepen the sense of organizational purpose and
strengthen interpersonal trust
– Encourage problem solving rather than avoidance
– Supplement formal authority with knowledge and
skill based personal responsibility for change
82
83. Organizational Development (OD)
avoids the usual “quick-fixes”
A long-term effort to improve visioning,
empowerment, learning, problem-solving, and
well-being using a collaborative management
of the organization culture via interventions
– Intergroup development
– Process consultation
– Sensitivity training
– Survey feedback
– Team building
Utilizing the consultant-facilitator role and
83
applied behavioral science, i.e. action research
84. Organizational Surveys
Identify perception discrepancies
Identify group‟s unique qualities
– Discovery of organizational strengths
– Dreaming of the future organization
– Design of a common vision
– Destiny for how to fulfill the dream
Data Collection Feedback Develop Action Plans
Employees Through group
Feelings about the
complete discussions, build
organization are
surveys to provide specific plans for
summarized and
information about overcoming problems
problems in their shared with all are identified
organization employees and developed
84
85. Other OD Change Activities
Inter-group confrontation: Each group
lists its complaints about others as well as
what are common complaints against itself
Process consultation: Feedback & coaching
to help groups finds their own solutions
Organizational mirroring: Focal group
gets feedback about how it is perceived
Role negotiation: negotiate an increase,
decrease, or status quo in other‟s behaviors
Life and career building & Team building
85
87. Creating a Learning Organization
Einstein was once asked,
“What is the most powerful
force in the Universe?” He
said, “Compound Interest.”
Outdated…
– R & D as disengaged
“Think Tank”
– DoD Research (extra 7-
15 years to use research)
– Incubators
» Not About New Ideas
87
88. Technology Research Slowdown
Management still based on the Roman Army
Still using coal burning plants for additional
electricity (such as for electric cars)
Car engines mostly unchanged for 140 years
E-mail basically unchanged in 30 years
Only one new programming language (Java)
Bell Research Labs was broken up
IBM now predominately a service company
88
89. Recursive Improvement Process
Important ideas (vision & strategy)
Champions and teams (passion)
Reliable sources for many smart people
from many fields, simple processes,
business models, human considerations, etc
Examples… (capture and iterate)
– Video Games – by fervent gamers
– Open Software Foundation – networks
– XML – HTLM to perfection, but only iterative
89
90. Next = Past + Now
New Ideas More New Ideas
Tool 1 Tool 2
Product 1 Product 2 Product 3
Every product development
must include tool development
90
91. How is This Realized?
Networked improvement community
Recursive and persistent
Comprehensive (products, ethics, quality…)
Systematic (A-Task; B-Improve A; C-
Improve B to Improve A)
Research efforts should become increasingly
networked and open, creative, persistent,
comprehensive, and systematic to enable
endless technology revolutions
91
92. Creating a Vision
Discern & describe group‟s core ideologies
– What are the core values that inform members
what is important in the organization?
– What is the organization‟s core purpose or
reason for being?
Construct the Envisioned Future
– What are the bold and valued outcomes?
– What is the desired future state?
92
93. Change Management
Practice of ensuring that all changes are done
in a planned and authorized manner
– Incident identification, corrective measures for
problem, RFC research, infrastructure execution
Ensuring that there is a business reason (or
business rule) behind each change
Plans and tests each and every change
Creates a back-out plan should the change
result in an unexpected state
93
94. Authorization and Planning
RFC Request for change
Change
Manager
medium major
minor Change Advisory Executive
Board (CAB) Committee
CAB Meeting
Authorization
94
95. The Change Management Process
Implement Manage
RFC
Preparation Categorise
Prioritise Refusal
Authorise
Build Plan
CAB
Approve
Test
Release Refusal
Backout
Implementation
Review
95
96. Feasibility Analysis
Economic Organizational
Feasibility Feasibility
Can we afford it? Is it a good fit?
Technical Operational
Feasibility Feasibility
Does the Will it be accepted?
capability exist?
96
97. Six Forces For Change
Workforce is more culturally diverse and
many employees are lacking in basic skills
Technology is replacing narrow, routine tasks
with those requiring team, multi-tasking efforts
Economic Shocks include the Asian real estate
collapse and Russian devaluation of the ruble
Competition is more global, involves more
mergers, and includes more Internet commerce
Social Trends include delaying marriage, anti-
smoking attitudes, and the popularity of SUVs
World Politics include U.S. embargo of Lybia,
97
Soviet collapse, and Black rule in South Africa
98. Managing Planned Change
Goals of Planned Change:
Improving the ability of the
organization to adapt to
changes in its environment.
Changing the behavior of
individuals and groups in
the organization.
98
99. The Effective Change Manager
Anticipates the need for change
– Rather than reacting to emergencies
Diagnoses the nature of needed change
Makes tough choices of alternatives
– Rather than taking the fastest exit
Manages the change process
– Making it effective and efficient
– Rather than lurching from one crisis to another
99
100. Change Management Activities
Motivating Change
Creating Vision
Effective
Developing Change
Political Support Management
Managing the
Transition
Decide metrics at
commencement
Sustaining associated with
Momentum incentives
100
101. Action Research
Process Steps:
A combination of research and 1. Diagnosis
action involving data gathering, 2. Analysis
feedback to the client group, 3. Feedback
discussion, planning, and action 4. Action
5. Evaluation
Intentional and goal oriented
Linear and continuous
Action research benefits:
Then, second-order, Problem-focused rather
multidimensional, than solution-centered
Heavy employee
multilevel, radical,
involvement reduces
and discontinuous resistance to change
101
102. Managing the Transition
Activity Planning
– What‟s the “roadmap” for change?
Commitment Planning
– Who‟s support is needed, where do they stand,
and how to influence their behavior?
Change-Management Structures
– What‟s the appropriate arrangement of people
and power to drive the change?
Sustain Momentum with support systems
102
103. Hard and Soft Problems UNBOUNDED
PROBLEMS
Messes
Relationship
and team
building Organizational
Development Models
for Change
Hard Systems
Models for
Change
Project
Difficulties management
BOUNDED
PROBLEMS Technical complexity
103
104. Who‟s Involved?
Sponsor – person who authorizes
Change Agent – who causes change
Target – Subject affected by the change
TQM and CMI Re-engineering
– Incremental – Quantum leaps in
improvements performance
– Bottom-up – Driven by Top
participative Management
decision making
104
105. Flexible Manufacturing Systems
Best used with…
– High-tech, initiative, self-managing employees
– Organizations that use organic structures, teams
Integration of computer-aided design,
engineering, manufacturing to produce low-
volume products at mass-production costs
Change happens by changing computer
programs, not producing new parts
– Pratt and Whitney produced 20 new models
105
106. What Can Be Changed?
Culture – underlying values and goals
Structure – authority relations, coordination
mechanisms, and job design
Technology – processes, methods, tools, etc
Physical Setting – workplace space, layout
People – skills, expectations, behaviors
Culture Structure Tech Physical People
nology Setting
106
107. Learning…
…is viewed as a transaction
between the learner and the
environment in which neither
can be regarded as fixed… The
target of education is “change
and growth in the individual
and his behavior.”
Bradford, Human Forces in Teaching and Learning
107
108. Types of Changes
Anticipatory based on expected situations
Reactive in response to unexpected situations
Incremental course adjustments
Strategic that alter core shape or direction
Establish a strategy
Managing Redesign the
Learning structure
Reshape the culture
108
109. Change Perspectives
Tuning
– Most common and least risky
– Known as preventive maintenance and kaizen
Adaptation
– Incremental changes that are in reaction to
external problems, events, or pressures
Re-orientation
– Also called frame bending (Nadler and Tushman)
Re-creation
– Intense and risky, also called frame breaking
109
110. Reactions to Change
On the wrong track
Laughing it off
Growing self-doubt
Buy-in / constructive
CHANGE
direction
110
111. The Pugh OD Matrix
Behavior Structure Context
Org. Poor climate: Wrong structure: Wrong strategy:
level Feedback survey Change structure Change strategy
Lack of Poor
Inter- Distance: Brings
cooperation: coordination:
group groups closer
Role negotiation Improve liaison
Poor team spirit: Unclear tasks: Poor resources:
Group
Team building Redesign work Change Tech-
level
exercises system nology or Staffing
Poorly defined Poor HRM
Individ Dissatisfaction:
jobs: Job application:
ual Counseling
enrichment Improve HRM
111
112. Lewin‟s Force Field Analysis
Driving Forces E
Restraining Forces
Q
People pressing for U People variables
change I resisting change
L
Structure pressing I Structure variables
for change B resisting change
Task variables R Task variables
I
pressing for change resisting change
U
Technology variables M Technology variables
pressing for change resisting change
112
113. Why Do People Resist Change?
Surprise – threaten sense of balance
Inertia – desire to maintain predictability
Misunderstanding and lack of skills – seen
negatively without remedial training
Sense of powerlessness – forced change can
create anger and passive resistance
Lack of trust – when talk is often not walked
Fear of failure – people doubt their abilities
113
114. Why Resist Change? (cont)
Personality Conflicts – managers disliked
by management are poor change conduits
Poor Timing – events can conspire to
create resentment about a particular change
Lack of Tact – a lack of sensitivity to
feelings can create resistance to change
Threat to Job Security
Conflict with social groups or other goals
114
115. Overcoming Resistance
Education and communication – to prevail
over misinformation or poor communication
Participation and involvement – bringing
those of opposition into the decision process
Facilitation and support – easing adjustment
Economic incentives – too often, however,
this can only result in overpaid burnouts
Negotiation and agreement – exchanging
something of value for less resistance
115
116. Overcoming Resistance (cont)
Manipulation and co-optation – distorting
facts to make them appear more attractive
Explicit and implicit coercion – the use of
direct threats or force upon resisters
Overcoming Resistance to Change
Education and
Participation
Communication
Facilitation
Negotiation
and Support
Manipulation
Coercion
and Cooptation
116
117. Advantages of Resistance
Forces management to check and recheck
each and every proposal
Helps identify specific problem areas where
change is more likely to cause difficulty
Gives management information about the
intensity of employee emotions on the issues
Provides a means of release of emotions –
which causes employees to think and talk
more about the changes
117
118. Change Without Pain
Easiest to adjust
Knowledge Skills
Recombine through training and development
Demeanor Network Harder to adjust
Recombine through coaching and counseling
Aptitude Values Traits Largely fixed
Recombine through addition and replacement
118
119. The Status Quo Learning Curve
Unfreeze Phase Change Phase Refreeze Phase
Productivity
Time
119
120. The “Performance Dip”
Change naturally produces a performance dip
– Chaos and creation go hand in hand
Managers must make it clear that mistakes are
acceptable and avoid any kind of punishment
for error in a learning environment
– Best Failure Award (failing when doing it right)
Stakeholder management, training, feedback
120
121. [whatever].
A motivating
121 (From http://www.youroklahoma.com/coreoklahoma/change1.pdf)
122. Politics of Change
Impetus for change is likely to come from
outside change agents
Internal change agents are most threatened
by their loss of status in the organization
Long-time power holders tend to implement
only incremental change
The outcomes of power struggles in the
organization will determine the speed and
quality of change
122
123. Change Commitment Model
change is implemented
during this phase
(from http://www.army.mil/aeioo/tm/)
123
124. Helzberg‟s Theory of Motivation
Recognition Responsibility
Motivators
Achievement Advancement
Personal Growth Job Interest
Norm of work output
Involvement Salary/Incentive
Working Conditions
Company policy and administration
Status Security Hygiene
Fringe benefits Job title Factors
Personal Relationships
124
125. McGregor‟s Theories of Motivation
X-theory vs. Y-theory
Man dislikes work and Work is necessary to
will avoid it if he can psychological growth
Must be forced to put People want to be
out the right effort interested by work
One would rather be People can seek and
directed than accept accept responsibility
responsibility Self-discipline is more
Man is motivated by effective and severe
anxiety about security Men are motivated by
Most men have little hope to realise potential
creativity - except for Creativity is widely
getting around rules! distributed & underused
125
126. Leadership Responsibilities
Level of change Unfreezing Movement
Individuals (skills, Reductions in Demonstrate new
values and attitudes) numbers skills
Training Focus New supervision
Structure (pay/merit BPR, Business Changes in reward
systems, reporting strategy, Metrics, systems, Systems
relationships, work Experiential thinking, Reporting
design) training relationships
Climate or culture Value Statement, More trust and
(openness, conflict Customer focus, openness, Feedback
management, decision Feedback on database, Shared
making) employees’ views vision, Top support
126
127. Just Like a 5-speed Transmission
1st Gear - Strategy – The “it”
2nd Gear - People – Who to do it
3rd Gear - Process – How to do it
4th Gear - Technology – With what to do it
5th Gear - Continuous Improvement –
How to do it better
127
128. Discussion Question
What is the difference between goal-driven and
purpose-driven quality programs?
Goal-Driven Purpose-Driven
– To-do list of short- – To-be list of long-
term tactics term core principles
– Success defined by – Success defined by
achieving goals staying on the path
– Afterwards, – Never ending effort
program is finished for improvements
128
Is one better? Or, both equally important?
129. 10-Minute Break…
Question:
What do you
get what
you cross
an instructor
with a spud?
Answer:
A Facili-Tator
129
130. What is Quality?
… in risk, process metrics, project
management, and problem definition
Corollary to Murphy‟s Law: Any system which
depends on human reliability is inherently unreliable.
Lecture 3 of 6 by Jim Maginnis
Copyright 2001 - 2006
Table of Contents
130
131. Info Tech Infrastructure Library
Common vocabulary: applied simultaneously
with quality improvement methodologies
– Service Delivery
– Service Support
– Implementation Planning
– Security Management
– Infrastructure Mgt.
– Business Perspective
– Application Management
– Software Asset Management
131
132. MSF and MOF
Microsoft Solutions Framework
– Established in 1991, revised in 1999 and 2003
– Software Dev. and Infrastructure Deployment
– Such as: www.nasdaq.com and www.marriott.com
MSF
MSF for CMMI
MSF for Agile Third-Party In-House
Process
Software Dev Offerings Customizations
Improvement
Microsoft Operations Framework
– Based on mature ITIL and PMI PMBOK
– Established in 1999, updated 2002
– Concentrates on management of IT operations
132
133. Key Parts of MSF
Team Model Process Model
Quality
Features
Risk Management
133
134. Some MSF V4 Templates
Moved away from MS-branded methodologies
– “White Label” approach to customization
– Ivar Jacobson‟s Essential Unified Process (EUP)
– Osellus‟s RUP and CMMI integrated IRIS
– Avanade‟s Connected Methods
– Conchango‟s Scrum templates
– GotDotNet‟s BSDAgile
– Cognizant‟s
version of FDD
134
135. MS Operations Framework
Three Models: Process, Team, and Risk
Service Management Functions (SMFs)
– Processes and policies across service solutions
– Better alignment
and scalability
“Adopt and adapt”
– IT core business
– IT cost allocation
– Speed solutions
135
136. MOF Team Role Clusters
136 (from http://www.microsoft.com/technet/itsolutions/cits/mo/mof/mofeo.mspx)
137. Daily Build
Building the product into an executable
form on a daily basis is…
A strong indicator that the
team is functional
A way to make the product
and its progress visible
The heartbeat of the
development process
137
138. Ongoing Process of Testing
Golden Release/RTM Release
Release Candidates Release
Readiness
Zero-Bug Release
Betas
Stability
Product
Test Specification Scope
Complete/Alpha Complete
Internal Release n (Alpha, Pilot)
Internal Release ...
Internal Release 2 Project Plan
Internal Release 1 Approved
Test Plan
138
139. BrightWork Solutions and Tools
Leading provider for managing projects on
the Windows SharePoint Services (WSS)
– Issue, Task, Bus. & IT Project, Agile Software,
and IT Work Managers & Solution Builder
– VSTS for your engineering group, and…
– SharePoint solutions for everyone else
Sam Guckenheimer‟s PowerPoint entitled
“As simple as possible but no simpler”
139
141. Time Management
Really Action Management
– Time is constant, but we choose our action plan
– See Getting Thing Done by David Allen
Personal Information Management (PIM)
141
142. The Risk Management Process
Identify, analyze, plan, track, control, & learn
142
143. The Risk Management Mindset
Identification Mitigation
2. Mitigation
2. “Java by Avoidance:
Project skills not Project Use Visual
Finish high Finish Basic (or by
enough.” transfer: Out
source)
Risk 2 Risk 2
Risk 1 Risk 1 1. Mitigation
by Conquest:
1. “May not Avoid / Delay, Demonstrate
be possible to image super-
superimpose
Transfer, imposition (or
images Project Accept, or Project by delay or by
adequately.” tolerance)
Start Tolerate Start
143 Adapted from Software Engineering: An Object-Oriented Perspective by Eric J. Braude (Wiley 2001)
144. Building a Risk Statement
Asset Threat Vulnerability Mitigation
What are you What are you How could the What is currently
trying to protect? afraid of threat occur? reducing the
happening? risk?
Impact Probability
What is the impact to the How likely is the threat given
business? the controls?
Well-Formed Risk Statement
144
145. Defining Roles / Responsibilities
Executive
Determine
Sponsor acceptable risk
“What's
important?”
Information
Assess risks Define security Measure security
Security Group requirements solutions
“Prioritize risks”
IT Group Design and build Operate and
“Best control solution” security solutions support security
solutions
145
146. Security Risk Mgt Process
4 Measuring 1 Assessing
Program Risk
Effectiveness
3 Implementing
Controls
2 Conducting
Decision
Support
146
147. Why Use A Project Mgt Method?
Poor estimation of duration and costs
Inadequate planning of resources and activities
Lack of co-ordination of resources & activities
Lack of communication with interested parties,
leading to unwanted products being delivered
Insufficient measurables and poor quality
control, resulting in the delivery of products
that are unacceptable or unusable
Lack of control over progress so that projects
do not reveal their exact status until too late
147
148. What is PRINCE2?
PRojects IN Controlled Environments is a
standard project management methodology
to apply PM skills for a structured approach
to release rollouts and service improvement
148
149. What is ISO 9001:2000?
Updated to align with ISO 14001, OHSAS
18001, and the Malcolm Baldridge criteria
Do we know what we did today well enough
to be sure we can do it again tomorrow?
Can be as simple as a single creative page
Retaining only the information that shows
activities are being satisfactorily carried out,
independently audited, with Exec‟s invested
149
150. Computer-Supported
Collaborative Learning (CSCL)
Help students effectively learn together
– Assumes that “Learning begins with a problem
to be solved rather than content to be mastered”
Communications and Collaboration Tools
– eMail, Web, calendaring, chat, databases
– Exchange, GoToMeeting, Domino, iMarkup, K2
– Still need face-to-face meetings
Electronic Electronic Collaborative Work
Communications Conferencing Management
Tools Tools Tools
150
151. Capability Maturity Models
Capability maturity models (CMMs)
– Carnegie Mellon‟s CMM
– Capability Maturity Model Integration
– ISO 15504, or SPICE (Software Process
Improvement and Capability dEtermination)
About what to measure (KPAs in level 2) to
ensure that we do it better tomorrow
Can be used with MOF to benchmark the
capability of one‟s SMFs
151
152. Personal Software Process (PSP)
Basically CMM level 4/5 for an individual
– Emphasizes learning by doing, past performance,
defect reduction, estimation accuracy, motivation
– Largely based on reviews at every stage via
planning, development, and post mortems
» Tracking problems, earned value: time, size of product
– “Engineering Disciple,” not Cognitive Psychology
Team Software Process for group dynamics
– Support structure with role definition & coaching
» Team building, status meetings, post mortems, synergy
152
153. From CMM / PSP to Six Sigma
Six Sigma for company (vs individual or team)
While CMM /PSP focuses on the what, Six
Sigma is about evaluating processes for …
– how best to forecast and validate improvements,
– who (anyone honest and can handle the math)
– why (with CTQs from VOCs).
More externally focused (vs inwardly CMM)
Formal Configuration & Release Management
153
154. What is Six Sigma? LSL USL
6s
s Standard
deviation
A measure of business capability
– Tightly controlled process
» Six standard deviations (or sigma) between mean and
nearest specification limit
» Defect rate of 3.4 defects for every 1 million opportunities
ORGANIZATIONAL TRADITIONAL SIX SIGMA
ISSUE APPROACH APPROACH
Problem resolution Fixing (symptoms) Preventing (causes)
Behavior Reactive Proactive
Decision Making Experience-based Data-based
Process adjustment Tweaking Controlling
Employee training If time permits Mandated
Chain-of-command Hierarchy Empowered teams
Direction Firefighting Benchmarking and Metrics
154
155. Why is Four Sigma Not Enough?
9 hours per year of unsafe drinking water
107 incorrect medical procedures a day
200,000 incorrect drug prescriptions per day
18,322 pieces of mishandled mail an hour
2 million documents lost by the IRS a year
Two short or long landings at any major
airport each day
How do such situations improve…
155
157. Inputs, Outputs, & Y=f(x):
X = input to the process Y = Output to the process
Six Sigma helps explain We typically measure
which of the controllable Xs performance by measuring
have the most influence on the Ys of a process!
the Y! Alias: Critical Xs
Example: Example: We weigh
– Exercise (type, amount…) ourselves on a scale.
– Diet (type, amount, calories, – At or below target weight
carbohydrates, fats, proteins)
– Medical ?
– Others Above target weight
157
158. The Six Sigma Process
Practical
Problem
Define Define the project scope
Select the output characteristics for the Y‟s
Assess the performance specifications
Practical
Problem
Measure Validate the measurement systems
Establish the initial capability for the Y‟s
Statistical
Define the performance objectives
Problem
Analyze Document the potential X‟s
Analyze the sources of variability
Statistical
Solution
Improve
Screen the potential causes
Identify the operating conditions
Determine the capability for the X‟s
Statistical
Control
Implement the process controls
Control Document what you have learned
158 Warning: Requires a cultural change for best results
159. Six Sigma Roadmap Matrix
Define Measure Analysis Improve Control
Develop Collect Develop focused Create Develop &
baseline data problem possible document
charter on defects and statement solutions for standard
possible cause root causes practices
Map the Plot defect data Explore Select Train teams
over time and potential causes solutions
process analyze for
special causes
Understand Create & Organize Develop plans Monitor
stratify potential causes performance
voice of the frequency plots
Pilot plans
Collect data Create process
customer & do Pareto Implement
for updating
analysis Use statistical plans
methods to procedures
Calculate Measure
quantify cause results Summarize and
process sigma & effect communicate
Create detailed relationship Evaluate results
process maps benefits
Recommend
159 future plans
161. 6 Sigma Problem-Solving Tools
Defects
% PPM
99.9996% 3.4 6s Design for 6 Sigma
(DFSS)
99.9767% 233 5s
Process Entitlement
99.379% 6,210 6 Sigma Tools:
4s •Process Characterization: statistics
•Process Optimization Modeling
Seven basic tools: Pareto, Fishbone,
93.32% 66,810 Check Sheets, Histograms, Flowcharts,
3s
Brainstorming, and Control Charts
69.13% 308,700 2s Experiential or “Tribal”
30.23% 697,700 1s knowledge
Current Process Capability
161
162. Voice of the People
Traditionally, Marketing defined customer
needs, but isolated workers can forget the
importance of ease of use and durability
Customer Relationship Management implies
that everyone is involved with CS
Customers are ideally in development team
About 20 customers should be included
ISO 9001:2000 adds Customer Satisfaction
162
163. Critical to Quality (CTQ) Chart
Function: Critical to Quality (CTQ) Weighting Count Score
Customer Service
Calls unanswered No unanswered calls Count X 2 56 112
Delay in answering Greater than 30 seconds Count 144 144
Question not answered,
call back required No call backs Count 23 23
Shipping
Late shipments No late shipments Count X 2 56 112
Incorrect item/quantity No incorrect items Count X 2 4 8
Incorrect address No incorrect addresses Count X 2 6 12
Shipper error No errors Count X 2 20 40
Production/QC
Product defects
reported No defects Count X 2 112 224
Planning/Inventory
Backorders <2 days No backorders Count X 2 61 122
Backorders >2 days No backorders Count X 4 18 72
163 Monthly Customer View Score 869
166. Cost of Poor Quality (COPQ)
Cost of fulfilling the gap between the desired
and actual product/service quality
Cost of lost opportunity due to resources used
to rectify the defect
Sigma COPQ
Labor, rework, disposition, Level (of Sales)
and material costs spent up to 3 25-40%
the point of rejection 4 15-25%
Appraisal, Internal Failure, 5 5-15%
6 <1%
Prevention, External Failure
166
167. The Scientific Method
Observe a marketplace or
business environment aspect
Conjecture a working hypothesis
Make predictions based on hypothesis.
Test predictions by conducting experiments or
making more observations. Use statistical tools to
help separate information from noise.
Modify hypothesis inductively & empirically.
Repeat last three steps until “no” discrepancies
“Show me the data” attitude prevails
167
168. Who Does What?
Champions and Sponsors
– Select best projects for corporate objectives and
implement with support and eliminating barriers
Master Black Belts (1 per 1,000 employees)
– Understands theory, trains, & leads project reviews
Black Belts (20 per Master, 6-7 projects)
– Hands-on project leadership and execution
– Train and mentor the local organization
Green Belts (5-10% of time,
– Deliver successful focused departmental projects
168
169. Information Overload
Not all information is valuable
– 2/3 of managers report stress from too much info
– 2/3 state relationships suffer from too much info
– 1/2 suffer from ill heath due to too much info
– 1/2 state decisions are delayed while costs are too
high from too much information
– Most claim only about 6 metrics really matter
Defect focus can hinder innovation and is
often at the cost of a system view and quality
169
170. What Knowledge is Required?
College-level Mathematics and Statistics
– Proficient in at least one Statistical Package
Strong Technology Orientation
– One or more OS's and Multiple DBMSs
– Office Automation and Groupware Software
Project and Quality Management
Supply Chain and Lean Manufacturing
Organizational Psychology and How to
Attract, Reward, and Retain Employees
Communication and Teaching Skills
170
171. Semi-annual Black Belt Reviews
Technical Application (20%), by Masters
– Project planning / management, use of tools,
documentation, process mapping, gateway
reviews, control plans, methodology execution
Project Success (40%), by Sponsors
– On time, deliverables are easy to implement and
support, certified, and number (1 for in-training, 2
for graduates, 3-4 for experienced)
Leadership (40%), by Sponsors
– Challenging, enabling, modeling, encouraging
171
172. Deliverable: Summary Report
IEC Presentation / Summary Report Outline
Savings Upon
Title Implementation
Team Roster – Cost to Implement
Problem Statement – Annual Savings
Objective » 1st, 2nd year
Primary/Secondary
Metrics Implementation Plan
Key conclusions – Key Milestones
– Measure – Completion dates
– Analyze – Responsibilities
Recommendation Necessary Approvals
Impact on Authorization to
Orders/Procedures Proceed
172
173. Why Does It Fail?
1. Management missing faith in employees
2. Long-term, risk-adverse culture
3. Benefits are not shared (mostly at the top)
4. Failure to “walk the talk” for a set of
common values
Intensity is no substitute for integrity
5. Insufficient and/or undirected training
6. No well-articulated vision
173
174. Deliverable: Back Up Information
Implementation
Schedule
Improve & Control Plan
PBL Plan
Cost Estimate Backup
Bases/Qualification/Assumptions
Detailed Estimate
(Implementation Costs
and Yearly Savings)
Measure & Analyze: Analysis of improvement
between “as is” and “should be”, fishbones,
paretos, xy matrix, FMEA, Gage R&R,
Statistical backup
Process Maps
“as is” and “should be”
Summary
Report
174
176. Continuous Measurable
Improvement is Key
Optimized
– Continuous process improvement is enabled by
quantitative feedback from the process and from
piloting innovative ideas and technologies.
Repeatable
– The software processes for management and
engineering activities is documented,
standardized, and integrated for the organization.
Basic project management processes are used to
track cost, schedule, and functionality.
176
177. Use a Structured Framework
3. Establish OPI Plan
4. Identify All Projects
5. Provide Executive Level
Program “Awareness”
6. Conduct CSWP Awareness
Training
7. Conduct Workshops
8. Select Candidate Projects for
Assessment
9. Conduct Project KPA
Completeness Class
1. Establish Management 10. Establish & Implement
Commitment & Goals Project Action Plans
2. Define Process 11. Update Tailor Reports
Improvement Roles and 12. Plan, Prepare, Conduct for
Responsibilities Next Improv. Cycle
177
178. Perfectionists are not perfect
80% efficient call centers are best
– Allow for breaks and vacations
– Allow for training and time management
Last 5% usually takes the greatest effort and
so often does not produce a return on the
time and capital invested => quality is about
knowing when to declare victory
Just paying more to work in a hostile
environment merely produces burn-outs
178
179. Use Process Measurement Metrics
(But, do not use them for reward or punishment)
Financial (or Project Value) Metrics
Product (or Systems) Metrics
– Size (LOC, Function Points, Etc.); Number of
Defects; Effort (Person-hour); Complexity;
Customer Satisfaction Metrics
– Check Customer Priorities for Quality Aspects
– Brand Name and Advertising Responses
Process (or Leadership) Metrics
– Intermediate Work Products and Records (Test
Results or Compare Time to Fix a Bug / Predicted)
179 – CPI (Cost Performance Index) / SPI (close to 1.0)
180. Focus on Flow of Value
Cumulative Flow
240
220
200
180
Control height of
Features
160 work in progress
140
120
100
80
60
40
20 Value measured
0 on completion
2-Mar
9-Mar
16-Mar
10-Feb
17-Feb
24-Feb
Time
Backlog Started Designed Tested Complete
180 David J. Anderson, Managing with Cumulative Flow, 2004
181. Quality Problem, Go to the MAT!
Metrics Action Team (MAT) Goals
– Define and Measure the Best Practices
– Identify and Acquire the Best Equipment
– Get and Promote the Best People
Focus Efforts on Key Process Areas
– Process Change Management
– Product Quality Management
– Product Configuration Management
– Peer Reviews
181
182. Description of the Ideal MAT
Any Employee Can Submit Change Requests
MAT Consists of All Functional Managers
Meets Once a Month to Review All Reports
Able to Step Back and Do Independent Reviews
to Uncover Key Program and Systemic
Corporate Issues
Output Is an Update Issues Report to the
Executive Team and Program Management
Changes Organizational Decision Making
182