Ensuring Fast Delivery of  Top and Bottom Line Results Julie Brignac President, QuantumSix Solutions, Inc. October 2009 Co...
Discussion Purpose <ul><li>Understand the role of a strong Project Governance Process </li></ul><ul><li>Discuss the import...
What does Julie know about delivering ROI? <ul><li>DuPont: </li></ul><ul><ul><li>Engineering Finance, Purchasing & Project...
The Top 3 <ul><li>Implement a great Project Governance Process </li></ul><ul><li>Understand how to validate and reconcile ...
The Keys to Project Governance <ul><ul><li>Idea triage    linked to strategic planning process & metrics </li></ul></ul><...
Project Governance Project Charter Benefit Assessment Project Approval Project work (controls & tollgates) Project  Comple...
The Project Governance Role <ul><li>Drives standardization </li></ul><ul><li>Strong financial validation from finance </li...
Understanding Project Benefits  <ul><li>First……….. </li></ul><ul><ul><li>UNDERSTAND your business’ main drivers and metric...
Key Elements <ul><li>To developing a good project benefit infrastructure </li></ul><ul><ul><li>Develop a company wide coun...
<ul><li>More key elements to developing a good project benefit infrastructure </li></ul><ul><ul><li>Define what a project ...
Project Benefit Guidelines <ul><li>Purpose </li></ul><ul><ul><li>The intent of this document is to give Quality Project Le...
Project Benefit Network <ul><li>To provide project resources specific contacts who are responsible for validating their pr...
Define what a project is <ul><li>If you have 30,000 employees in your company, you have 30,000 different definitions of wh...
Electronic Project Repository <ul><li>Requirements </li></ul><ul><ul><li>Web-based access for all business units </li></ul...
Financial Reconciliation <ul><li>Significance of building a model and process to reconcile the benefits to the bottom line...
Quick Reference Guide Copyright 2009 QuantumSix Solutions, Inc.  All Rights Reserved
Enterprise Wide vs. Functional Focus <ul><li>It’s the age old argument </li></ul><ul><ul><li>Does Lean 6 σ  work if not de...
Summary  <ul><li>Define your organization that will be benefit assessed </li></ul><ul><li>Have a central governing council...
Thank you for your attention <ul><li>[email_address] </li></ul><ul><li>+1.305.890.9078 </li></ul>
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  1. 1. Ensuring Fast Delivery of Top and Bottom Line Results Julie Brignac President, QuantumSix Solutions, Inc. October 2009 Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
  2. 2. Discussion Purpose <ul><li>Understand the role of a strong Project Governance Process </li></ul><ul><li>Discuss the importance of a project benefit validation process and infrastructure </li></ul><ul><li>Share best practices to sustain results </li></ul>Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
  3. 3. What does Julie know about delivering ROI? <ul><li>DuPont: </li></ul><ul><ul><li>Engineering Finance, Purchasing & Project Management </li></ul></ul><ul><ul><li>Malcolm Baldridge and early 6 σ </li></ul></ul><ul><li>AlliedSignal  Honeywell </li></ul><ul><ul><li>Supply Chain Operations & Manufacturing </li></ul></ul><ul><ul><li>Lean Six Sigma education strengthened </li></ul></ul><ul><ul><li>M&A both in AS/Hwl and HWL/GE merger </li></ul></ul><ul><li>Newell Rubbermaid (Sanford): </li></ul><ul><ul><li>VP Global Purchasing </li></ul></ul><ul><ul><li>Lean 6 σ deployment champion </li></ul></ul><ul><li>Brambles Limited (ASX 50: $5B) </li></ul><ul><ul><li>Lean 6 σ global deployment leader </li></ul></ul><ul><ul><li>Chief Procurement Officer </li></ul></ul><ul><li>QuantumSix Solutions, Inc. </li></ul><ul><ul><li>President and Founder </li></ul></ul>Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved Responsible for delivering over $1B in savings
  4. 4. The Top 3 <ul><li>Implement a great Project Governance Process </li></ul><ul><li>Understand how to validate and reconcile project benefits </li></ul><ul><li>Make sure items 1 and 2 are active enterprise wide </li></ul>Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
  5. 5. The Keys to Project Governance <ul><ul><li>Idea triage  linked to strategic planning process & metrics </li></ul></ul><ul><ul><ul><li>Senior leadership involvement critical </li></ul></ul></ul><ul><ul><li>Project benefit assessment process </li></ul></ul><ul><ul><li>Project approval and prioritization </li></ul></ul><ul><ul><ul><li>Senior leadership involvement critical </li></ul></ul></ul><ul><ul><li>Tracking, reporting, reconciliation </li></ul></ul>Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
  6. 6. Project Governance Project Charter Benefit Assessment Project Approval Project work (controls & tollgates) Project Complete Generic Project Cycle Reporting and Analysis Track and Report Benefits ©2009 QuantumSix Solutions, Inc. All Rights Reserved Idea Generation and Triage Project Prioritization
  7. 7. The Project Governance Role <ul><li>Drives standardization </li></ul><ul><li>Strong financial validation from finance </li></ul><ul><ul><li>Belief in the numbers </li></ul></ul><ul><li>Strong rigor at the top and bottom of each function </li></ul>Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
  8. 8. Understanding Project Benefits <ul><li>First……….. </li></ul><ul><ul><li>UNDERSTAND your business’ main drivers and metrics </li></ul></ul><ul><ul><li>Develop a path and link your projects ultimately to those metrics </li></ul></ul><ul><li>Second………… </li></ul><ul><ul><li>Encase your project benefit definitions around your organizational structure </li></ul></ul><ul><ul><ul><li>e.g., involve all projects (6 sigma, Lean, IS, Just-Do-It) so validation and guidelines must address all of those items </li></ul></ul></ul>Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
  9. 9. Key Elements <ul><li>To developing a good project benefit infrastructure </li></ul><ul><ul><li>Develop a company wide council to define definitions and models </li></ul></ul><ul><ul><li>Develop company wide project benefit guidelines that link to your business’ key operational metrics </li></ul></ul><ul><ul><li>Develop a matrixed network of financial representatives ACCOUNTABLE for projects in their respective areas </li></ul></ul><ul><ul><li>Designate a focal point for the network to drive the efforts and hold the business accountable </li></ul></ul><ul><ul><ul><li>Who has the final word!!!!! </li></ul></ul></ul>Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
  10. 10. <ul><li>More key elements to developing a good project benefit infrastructure </li></ul><ul><ul><li>Define what a project is </li></ul></ul><ul><ul><li>Have a consistent Project Governance Process </li></ul></ul><ul><ul><li>Support an electronic central project repository that mirrors your governance process </li></ul></ul><ul><ul><li>Build a process that defines a reconciliation process of project benefits to the business’ bottom line </li></ul></ul>How can this help me? Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
  11. 11. Project Benefit Guidelines <ul><li>Purpose </li></ul><ul><ul><li>The intent of this document is to give Quality Project Leaders and Financial Approvers in your business </li></ul></ul><ul><ul><ul><li>Guidelines to understand project benefit categories </li></ul></ul></ul><ul><ul><ul><li>A process for assessing benefits in a project </li></ul></ul></ul><ul><ul><ul><li>The method of calculating project benefits </li></ul></ul></ul>Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
  12. 12. Project Benefit Network <ul><li>To provide project resources specific contacts who are responsible for validating their project benefits per the guidelines </li></ul><ul><li>Roles and Responsibilities </li></ul><ul><ul><li>Project Governance Process should dictate a project benefit assessment at: </li></ul></ul><ul><ul><ul><li>Charter stage  Build initial benefits model </li></ul></ul></ul><ul><ul><ul><li>Periodic auditing throughout project to clarify benefits </li></ul></ul></ul><ul><ul><ul><li>Final signoff by Finance of validated benefits </li></ul></ul></ul><ul><ul><ul><ul><li>Reconciliation to P&L, if applicable </li></ul></ul></ul></ul>Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
  13. 13. Define what a project is <ul><li>If you have 30,000 employees in your company, you have 30,000 different definitions of what a project is </li></ul><ul><li>Important to clarify because……. </li></ul><ul><ul><li>Determine whether an effort needs to travel through the governance process </li></ul></ul><ul><ul><ul><li>Hence requiring benefit validation </li></ul></ul></ul><ul><ul><li>Also helps determine which projects go into your central project repository </li></ul></ul>Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
  14. 14. Electronic Project Repository <ul><li>Requirements </li></ul><ul><ul><li>Web-based access for all business units </li></ul></ul><ul><ul><li>Lifecycle management for all projects </li></ul></ul><ul><ul><li>Estimating model, particularly for capital intensive projects </li></ul></ul><ul><ul><li>Robust reporting including project dashboard, including benefit analysis </li></ul></ul><ul><ul><li>12-month forecasting of project benefits for active and pending projects </li></ul></ul><ul><li>MUST have governance process in place prior to system </li></ul><ul><ul><li>A system will not drive your process </li></ul></ul><ul><ul><li>The system must MIRROR your process and meet your requirements </li></ul></ul><ul><ul><li>Don’t think of the system as an antidote for any lack of process(es) </li></ul></ul>Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
  15. 15. Financial Reconciliation <ul><li>Significance of building a model and process to reconcile the benefits to the bottom line </li></ul><ul><li>Refer back to definitions </li></ul><ul><ul><li>Tangible vs. Intangible </li></ul></ul><ul><ul><li>Not the same thing as Hard vs. Soft benefits </li></ul></ul><ul><li>Key things to consider: </li></ul><ul><ul><li>Big arguments can occur regarding benefit buckets! </li></ul></ul><ul><ul><ul><li>Emphasizes importance of guidelines, global focal point(s) and reconciliation to P&Ls </li></ul></ul></ul><ul><ul><li>It’s ok if everything doesn’t fall to the P&L </li></ul></ul><ul><ul><ul><li>But you then understand better what does fall and what doesn’t </li></ul></ul></ul>Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
  16. 16. Quick Reference Guide Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
  17. 17. Enterprise Wide vs. Functional Focus <ul><li>It’s the age old argument </li></ul><ul><ul><li>Does Lean 6 σ work if not deployed enterprise wide? </li></ul></ul><ul><li>If you want to see consistent ROI to your top and bottom line, how can that happen if </li></ul><ul><ul><li>You don’t have a consistent governance process </li></ul></ul><ul><ul><li>You don’t have the same processes enterprise wide </li></ul></ul><ul><ul><li>You don’t validate, track and report in a consistent manner </li></ul></ul>
  18. 18. Summary <ul><li>Define your organization that will be benefit assessed </li></ul><ul><li>Have a central governing council and focal point for project benefits </li></ul><ul><li>Important to have project benefit guidelines and a network corporate wide so everyone talks the same language and reports the same way </li></ul><ul><li>Let the process govern the system, not vice versa </li></ul>Copyright 2009 QuantumSix Solutions, Inc. All Rights Reserved
  19. 19. Thank you for your attention <ul><li>[email_address] </li></ul><ul><li>+1.305.890.9078 </li></ul>
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