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IMPROVING SIX SIGMA PROGRAM ROI
WITH DEPLOYMENT MANAGEMENT

          THOUGHT LEADERSHIP WHITE PAPER
Introduction
             Regardless of the size of the organization, when a Six Sigma program reaches a
             certain maturity it runs the risk of losing momentum. Once the low hanging fruit
             has been plucked and the obvious high-reward endeavors tackled, subsequent
             projects typically generate less financial benefit. At the same time, administrative
             burden increases as the number of Belts and projects grows and the use of Six
             Sigma expands throughout the organization. Belts require more time to uncover
             and scope projects, while aggregating and validating program data becomes more
             of a chore. If not addressed, this pattern can sap program ROI, Belt morale, and
             ultimately leadership support for Six Sigma.

             One way to break free of this cycle is through Deployment Management, the
             discipline of applying the rigorous, data-driven approaches of Six Sigma to the
             operations of a Six Sigma program. It begins with a simple realization: the practice
             of running Six Sigma is itself made up of processes that can be analyzed, refined
             and optimized. While each deployment is different, Figure 1 outlines some of the
             common processes used to manage Six Sigma practitioners (Belts) and projects.




                                 Figure 1: Typical Six Sigma Program Deployment Processes



             The Six Sigma methodology theorizes that to generate consistent results, a control
             plan is necessary for each critical activity. Unfortunately, many practitioners get so
             caught up in the execution of individual projects that they forget to “eat their own
             cooking.” According to the Lean Six Sigma Benchmark Report (September 2006,
             Aberdeen Group):

                    “…industry is missing out on billions of dollars in potential savings, sales, and
                    profits each year through ineffective application of Six Sigma tools and
                    methodologies.”

             By institutionalizing robust deployment processes, leading organizations can
             capture their share of this billion dollar opportunity.




Improving Six Sigma Program ROI With Deployment Management                                              2
Putting Deployment Management Into Practice
             Moving from the theoretical to the concrete, we’ll conclude with real-world case
             examples for each of the key processes previously described. By including baseline
             assumptions for a Six Sigma program of moderate size, we can model the return of
             a modest Deployment Management effort.

             First, we’ll define the scale of our Six Sigma example program:

                100 Black Belts, 5 Master Black Belts
                1.5 projects per year per Black Belt (for 150 projects total)
                $150,000 net benefit per project
                Master Black Belts cost $75/hour in salary and benefits

             Now we’ll examine the potential benefit of adopting the following demonstrated
             Deployment Management practices:

             While the full advantage of Deployment Management is derived from the
             aggregate effect of tackling all critical deployment processes with Six Sigma
             discipline, the previous examples demonstrate that significant benefit is achievable
             even by addressing just a few narrow areas. Any Six Sigma deployment leaders
             with more than a few dozen Belts should consider adopting a systematic
             Deployment Management approach to reinvigorate a languishing program, turn
             modest program results into stellar returns and ensure ongoing executive support
             and engagement.

             Read the full white paper now.




Improving Six Sigma Program ROI With Deployment Management                                          3
PowerSteering Software is the leader in business-driven project &
portfolio management (PPM) solutions for managing IT
Governance, New Product Development, Performance
Improvement, and other Business PMO initiatives. Its easy-to-use
software provides executives at BayCare, Johnson Controls,
Merck, PolyOne, Shaw Industries, UK National Health Service, US
Department of Defense, and over 140 other customers with
executive visibility, strategy alignment, and team productivity to
drive strategy and accelerate results across the organization.
PowerSteering was rated “Strong Positive” in the "MarketScope
for Project and Portfolio Management Applications" published
by Gartner, Inc.

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Apply Six Sigma to Six Sigma to Increase ROI

  • 1. IMPROVING SIX SIGMA PROGRAM ROI WITH DEPLOYMENT MANAGEMENT THOUGHT LEADERSHIP WHITE PAPER
  • 2. Introduction Regardless of the size of the organization, when a Six Sigma program reaches a certain maturity it runs the risk of losing momentum. Once the low hanging fruit has been plucked and the obvious high-reward endeavors tackled, subsequent projects typically generate less financial benefit. At the same time, administrative burden increases as the number of Belts and projects grows and the use of Six Sigma expands throughout the organization. Belts require more time to uncover and scope projects, while aggregating and validating program data becomes more of a chore. If not addressed, this pattern can sap program ROI, Belt morale, and ultimately leadership support for Six Sigma. One way to break free of this cycle is through Deployment Management, the discipline of applying the rigorous, data-driven approaches of Six Sigma to the operations of a Six Sigma program. It begins with a simple realization: the practice of running Six Sigma is itself made up of processes that can be analyzed, refined and optimized. While each deployment is different, Figure 1 outlines some of the common processes used to manage Six Sigma practitioners (Belts) and projects. Figure 1: Typical Six Sigma Program Deployment Processes The Six Sigma methodology theorizes that to generate consistent results, a control plan is necessary for each critical activity. Unfortunately, many practitioners get so caught up in the execution of individual projects that they forget to “eat their own cooking.” According to the Lean Six Sigma Benchmark Report (September 2006, Aberdeen Group): “…industry is missing out on billions of dollars in potential savings, sales, and profits each year through ineffective application of Six Sigma tools and methodologies.” By institutionalizing robust deployment processes, leading organizations can capture their share of this billion dollar opportunity. Improving Six Sigma Program ROI With Deployment Management 2
  • 3. Putting Deployment Management Into Practice Moving from the theoretical to the concrete, we’ll conclude with real-world case examples for each of the key processes previously described. By including baseline assumptions for a Six Sigma program of moderate size, we can model the return of a modest Deployment Management effort. First, we’ll define the scale of our Six Sigma example program:  100 Black Belts, 5 Master Black Belts  1.5 projects per year per Black Belt (for 150 projects total)  $150,000 net benefit per project  Master Black Belts cost $75/hour in salary and benefits Now we’ll examine the potential benefit of adopting the following demonstrated Deployment Management practices: While the full advantage of Deployment Management is derived from the aggregate effect of tackling all critical deployment processes with Six Sigma discipline, the previous examples demonstrate that significant benefit is achievable even by addressing just a few narrow areas. Any Six Sigma deployment leaders with more than a few dozen Belts should consider adopting a systematic Deployment Management approach to reinvigorate a languishing program, turn modest program results into stellar returns and ensure ongoing executive support and engagement. Read the full white paper now. Improving Six Sigma Program ROI With Deployment Management 3
  • 4. PowerSteering Software is the leader in business-driven project & portfolio management (PPM) solutions for managing IT Governance, New Product Development, Performance Improvement, and other Business PMO initiatives. Its easy-to-use software provides executives at BayCare, Johnson Controls, Merck, PolyOne, Shaw Industries, UK National Health Service, US Department of Defense, and over 140 other customers with executive visibility, strategy alignment, and team productivity to drive strategy and accelerate results across the organization. PowerSteering was rated “Strong Positive” in the "MarketScope for Project and Portfolio Management Applications" published by Gartner, Inc.