Microsoft PowerPoint - 7 DAY ONE 255 FLEMING

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Microsoft PowerPoint - 7 DAY ONE 255 FLEMING

  1. 1. Embedding Lean Six Sigma and Linking Deployment to Business Strategy May 11, 2006 Chris Fleming VP Life Strategic Planning and Business Development Head of USFS Six Sigma ING US Financial Services
  2. 2. ING • European company based in the Netherlands • Provider of banking, insurance and asset management services • Operating in over 50 countries • 114,000 employees • Strong and positively trending financial results • As of 4/4/2006, ING has the 13th largest market cap among global financial institutions (source: Bloomberg) • Enormous effort has improved brand awareness • US companies built through acquisitions… acquirer of acquirers • Insurance Americas contributes 22% of ING’s profits 2
  3. 3. Background Why does ING need Lean Six Sigma? • Strong Financial Results, pressure to grow • Organization tired of new methodologies… • Recent history of restructuring, moves, etc. • Company focused on two major initiatives • Your Future. Made Easier • Economic Value 3
  4. 4. ING Brand 4
  5. 5. ING Brand • Focus on customer success • Being easy to do business with 5
  6. 6. Managing For Value • Creating sustainable economic value • Drive profitable growth • Increase return on book • Reduced cost of capital 6
  7. 7. Critical Elements of a Successful Deployment • Leadership Commitment • Dedicated Resources • Alignment and Integration with Business Strategy • Incentives and Accountability • Quantifiable Measures and Goals • Business Process Framework • Customer Focus 7
  8. 8. Building Support Finding a Business Champion • Retail Life business hired a new leader • Open to Six Sigma methodology, had seen the results before…former skeptic converted • Recognized a need for change 8
  9. 9. Building Support Stating the Need…Getting Started in the Life Business • Business was generating strong results; however… • Falling application counts • Customer complaints/dissatisfaction • Processes and organization not aligned • Lack of metrics, very few customer- centric metrics • High-cost organization Business Leader Created the Burning Platform 9
  10. 10. Building the Team • Established a Quality Council to ensure consistency and govern the program • Resource alignment, project selection and results owned at the business unit • Quality Leaders named for each business area • Full-time Black Belts and Master Black Belts • Mix of internal and external resources • Aligned by core process where scale permitted • Established one year staffing target of 1% full-time six sigma resources 10
  11. 11. Building the Team Quality Leaders Black Belts • Influential business leaders • Hired primarily internally with a few • Not a full-time role experienced Black Belts hired externally • Champion local deployment • Full-time position • Drive local program alignment with • Deployed by business area, assigned to strategic objectives Master Black Belts Master Black Belt Green Belts • Hired externally • Executive Green Belt training rolled out • Full-time position to all leadership • Certified, experienced from well-respected • Part-time Green Belts programs • Green Belt training deployed though • Assigned to each business area Black Belt-led project teams 11
  12. 12. Training Model • Leveraged external resources to deliver off-the-shelf training • Executive Green Belt • Green Belt for Teams • Black Belt • External resources experienced with program launch phase • Critical consideration as many six sigma people come from mature programs • First round of training material enhancements completed (Black Belt) • Incorporating ING business examples • Integrating Lean methodology more closely 12
  13. 13. Measures, Goals and Accountability • Mix of global and area measures and goals • 1% full-time six sigma resources • Leadership trained • Offset cost of program first 12 / 18 months • Leadership six sigma goals and accountability • Black Belts benefit targets established by area($500k - $1MM) 13
  14. 14. ING Lean Six Sigma Model Process DMAIC DFSS Management • Improve existing • Design new • Build Six Sigma processes, processes and Structure through products or products when process physical space none exist or the documentation, current defining customer environment is not requirements, and capable tracking critical process indicators Lean Process Design Build customer-centric culture focused on value creation 14
  15. 15. Linking to Strategy ING Strategic Objectives Execution Your Future Made Easier Process DMAIC DFSS Management • Improve existing • Design new • Build Six Sigma processes, processes and Structure through ING Strategic Objectives products or products when process physical space none exist or the documentation, Manage for Value Creation current defining customer environment is not requirements, and capable tracking critical process indicators ING Strategic Objectives Winning Performance Lean Process Design Culture ING Strategic Objectives Superior Compliance Lean Six Sigma Becomes Environment “How” We Execute 15
  16. 16. Sustaining the Momentum • Communication • Employee Engagement • Brownbag sessions • Leadership • Department meetings and • Process owners overviews • Employees • Internal web site • Articles • Leadership Driven • Visible • Sharing the Results • Goals and metrics • Gallery walks • Employee meetings • Management reviews • Strategic Alignment • Goals and metrics • Project efforts focused on high-impact areas 16
  17. 17. Linking to Strategy What We Can Learn from Hoshin Kanri (Policy Deployment)… • Business to Unit to Department Strategies Linked • Consistent, aligned metrics • Critical Projects Driven by Strategic Objectives, linked with consistent metrics 17
  18. 18. Linking to Strategy Strategy Deployment Voice of Customer Voice of Business USFS Business Business Strategic Line Line Market Strategies Objectives Tactics Factors Competition/ METRICS METRICS METRICS Benchmarks SWOT PROJECTS Review Process 18
  19. 19. Sources of Six Sigma Projects Six Sigma projects may be generated from a number of sources, some examples below… • VOC – timeliness, accuracy, satisfaction • VOB – Increase sales, reduce expenses, improve productivity, enhance performance review process • VOE – Increase employee retention, improve employee satisfaction • Legal or Compliance – reduce day two items, control compliance risks, reduce fines 19
  20. 20. Project Selection Process Inputs Voice of the customer Prioritize Voice of the Projects business Known Translate into solution with project Strategic Fit supporting Voice of the opportunities employee Economic data Value ? Time/Effort Market and environmental factors NO YES Not Capable Capable Implement process, DFSS process, solution, project DMAIC project follow six s methodology methodology principles 20
  21. 21. Six Sigma Failure Factors • Leaping to Solution • Not data driven or based on faulty assumptions • Serving the Wrong Customer • Not based on the voice of the “next” customer • Selecting the Wrong Projects • Not linked to strategy • Solution-Caused Problems • Poor sequencing, stakeholder under-involvement, resource planning, change management or project closure Adapted from Six Sigma’s Seven Deadly Sins by James P. Zimmerman and Dr. Jamie Weiss of Kepner Tregoe 21
  22. 22. Use COPQ as a Source of Projects • Hidden Factories • Re-work of defects in processes or products • Complex workarounds • Excessive phone calls, emails, faxes and other correspondence as a result of poor performance • Inspections and Audits • QA functions in the process • Back-end audits and approvals • Multiple approval steps • Lost Sales and Market Share • Market product requirements not met • Service or delivery requirements not met • Fines and Other Penalties 22
  23. 23. Case Study: ING’s Life Business Leadership Commitment President of the Life business - Visible supporter of six sigma methodology - Six sigma positioned as method Life business will use to achieve its business objectives - Created the burning platform: growth and efficiency Process Owners - Build awareness, support deployment Dedicated Resources Built team of full-time MBBs and BBs - First hires 6/2005 - Certified MBB hired externally from recognized program - BBs hired internally from pool of strong candidates - External certified BBs hired to supplement six sigma expertise and accelerate team knowledge building 23
  24. 24. Case Study : ING’s Life Business Alignment and Integration Team aligned with core processes with Business Strategy Project selection and prioritization supported business strategic objectives - Increase front-end service and capacity to support growth model - Improve product delivery capability - Create value through efficient in-force management Incentives and Accountability Six Sigma team goals and metrics aligned with business strategy - Increase policy count growth by 10x - Improved profit margins - Enhance service capabilities and customer satisfaction metrics 24
  25. 25. Case Study : ING’s Life Business Incentives and Accountability Leadership incentives put in place to support ownership of program results Quantifiable Measures and Shared program goals across USFS Goals - Staffing - Program expense coverage - Training Life business unit goals - Staffing - Program expense coverage - Training - Metrics Individual six sigma team member goals - Projects - Creating the culture - Training and development 25
  26. 26. Case Study : ING’s Life Business Business Process Black Belts aligned by core process area Framework - Customer acquisition - Service the customer - Manufacture the product Functional structure versus process alignment - Business model versus shared service model Customer Focus Followed business and ING brand strategy - Your Future. Made Easier - Project selection 26
  27. 27. Case Study : ING’s Life Business Early Project Results Orange Express Goal: speed and capacity - Underwriter first-look actions improved from 7% to over 80% - Cycle time reduced by 50% - Unit cost reduced by over 60% Producer Contracting Process Goal: speed and capacity - Cycle time reduced by 70% - Variation reduced by over 80% Servicing the Customer (multiple projects) Goal: speed and cost reduction - Cycle times reduced by 70+% - Variation reduced by over 80+% - Cost reduction targets achieved 27
  28. 28. Learnings • Deployment is never finished • Program objectives play a big part in determining the nature of commitment that is required • Local versus global deployment • Culture change versus project execution • Do not underestimate program support and communication challenges • Have additional expertise available to provide coaching and mentoring when internal resources become strained • Gain early commitment on metrics and goals • Keep senior leadership engaged throughout • Select top influencers to drive deployment • Identify early adopters and leverage 28

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