The Leadership Promise… In a Lean and Six Sigma World

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The Leadership Promise… In a Lean and Six Sigma World

  1. 1. Presentation by: Michael G. Winston Lean Six Sigma Summit 2008 May 1, 2008 Chicago, Illinois The Leadership Promise… In a Lean and Six Sigma World
  2. 2. THE GAME HAS CHANGED!!!
  3. 3. A Rapidly Changing World  Faster changes in technology  Faster market saturation  Faster competition  Faster segmentation of the market  Faster changes in the external environment
  4. 4. Response to Change  Leaner and more efficient organization structures  New products and markets  Pressure for differentiation/distinctive competencies  New management methods to increase productivity and quality  Enhanced use of technology  Increased emphasis on innovation and customer service  Increased use of cost containment mechanisms  …And many more
  5. 5. Everyone is trying to master the management of rapid change!
  6. 6. There’s Nothing Different About Your Products There’s Nothing Different About Your Company There’s Nothing Different About Your People There’s Nothing Different About Your Pricing There’s Nothing Different About Your Service
  7. 7. So why should I buy from you ?
  8. 8. HOW DO YOU WIN THE NEW GAME?
  9. 9. Clear Vision
  10. 10. Unclear Vision
  11. 11. Benchmarking… Are you as good as the best in the world?
  12. 12. “Many of the things you can count, don’t count. Many of the things you can’t count, really count.” Albert Einstein
  13. 13. Anticipation Some watch Some wait Some POUNCE
  14. 14. Identify Leadership Imperatives Identify Leadership Imperatives Determine Required Organization Capabilities Determine Required Organization Capabilities Clarify Business Strategy Clarify Business Strategy Define Business Objectives Define Business Objectives Link Leadership Strengths to Business Strategy
  15. 15. Selecting Leaders “ Take our twenty best people away, and I can tell you that Microsoft would become an unimportant company.” Bill Gates, Chairman and CEO, Microsoft Corporation
  16. 16.  In 1986, Bill Smith, a senior engineer and scientist at Motorola, introduced the concept of Six Sigma to standardize the way defects are counted.  Six Sigma provided Motorola the key to addressing quality concerns throughout the organization, from manufacturing to support functions. The application of Six Sigma also contributed to Motorola winning the Malcolm Baldrige National Quality award in 1988.  Since then, the impact of the Six Sigma process on improving business performance has been dramatic and well documented by other leading global organizations, such as General Electric, Allied Signal, and Citibank. The History
  17. 17. Six Sigma – 6Σ Six Sigma means 99.9999998% defect free work or 3.4 defects per million!!
  18. 18. 99.99996% Good (6 Sigma) • 20,000 lost articles of mail per hour • Unsafe drinking water for almost 15 minutes each day • 5,000 incorrect surgical operations per week • Two short or long landings at most major airports each day • 200,000 wrong drug prescriptions each year • No electricity for almost seven hours each month • Seven articles lost per hour • One unsafe minute every seven months • 1.7 incorrect operations per week • One short or long landing every five years • 68 wrong prescriptions per year • One hour without electricity every 34 years 99% Good (3.8 Sigma) Six Sigma -- Practical Meaning
  19. 19.  In businesses everywhere, Six Sigma tools are used to drive successful business improvement.  The methodology begins with the Six Sigma principles of leadership, then defines an integrated approach to guiding improvement efforts and finally, drives results through engaged teams.  The Six Sigma leadership principles are:  Align to organizational goals.  Mobilize with empowered teams and focused project management.  Accelerate with change management and structured problem solving methodologies.  Govern through visible sponsorship, rigorous project reviews and proactive communication and knowledge sharing. Maximizing Business Performance
  20. 20. What is Six Sigma? A quality approach with several dimensions  First: A goal. It is 3.4 defects per million opportunities. Sigma is the Greek letter used by statisticians to represent one standard deviation or the variability of any normally distributed sample.  Second: A commitment to improvement. Six Sigma is a philosophy that we pursue this level of quality in our critical customer deliverables.  Third: A practice. Six Sigma is the structured, disciplined, data-driven application of appropriate methodologies to eliminate defects. There are several primary methodologies: – DMAIC (Define, Measure, Analyze, Improve and Control) – DMADV (Define, Measure, Analyze, Design and Verify) – Lean Six Sigma
  21. 21. In 1987, Motorola committed itself to a quality goal of:
  22. 22. In 1987, Motorola committed itself to a quality goal of: 10-times improvement by 1989
  23. 23. In 1987, Motorola committed itself to a quality goal of: 10-times improvement by 1989 100-times improvement by 1991
  24. 24. In 1987, Motorola committed itself to a quality goal of: 10-times improvement by 1989 100-times improvement by 1991 Six Sigma capability by 1992
  25. 25. In 1987, Motorola committed itself to a quality goal of: 10-times improvement by 1989 100-times improvement by 1991 Six Sigma capability by 1992 These goals were met and even exceeded in most products and processes.
  26. 26. In 1987, Motorola committed itself to a quality goal of: 10-times improvement by 1989 100-times improvement by 1991 Six Sigma capability by 1992 These goals were met and even exceeded in most products and processes.
  27. 27. “At the time, none of us knew how to achieve this Six Sigma goal. But, in our drive for perfection, we were committed to reach a defect rate of just 3.4 parts per million (ppm) in each step of our processes.” George Fisher Former Chairman and CEO, Motorola
  28. 28. Motorola’s Six Sigma Efforts in 1992 and Beyond  Continue our efforts to achieve Six Sigma results – and beyond – in everything we do.  Change our metrics from parts per million to parts per billion (ppb).  Go forward with a goal of 10-times reduction in defects every two years.
  29. 29. Leadership for the New Era
  30. 30. Leadership for the New Era  Keep abreast of changes
  31. 31. Analyzing Your Competitors Potential Competitors – Emergent Competitors – New Competitors – Substitute Competitors The Company Current Competitors – Direct Competitors – Horizontal Competitors – Vertical Competitors – Substitute Competitors Current Competitors Exiting Future Competitors
  32. 32. Improvement Strategy LOOK INLOOK IN Learn about your own practices LOOK OUTLOOK OUT Learn about best practices of others LOOK AHEADLOOK AHEAD IDEAS to plan improvements “Copy” Adapt Innovate TAKE ACTIONTAKE ACTION MAKE CHANGES in practices
  33. 33.  Keep abreast of changes  Learn to manage “early vs. late adopters” Leadership for the New Era
  34. 34. Learn to Manage “Early vs. Late Adopters”  Encourage the minority viewpoint  Value the differences  Empower team networks – Leader one day, follower the next – Appointed “devil’s advocate” – Reward for wearing the “big hat”  Councils (technology, manufacturing, software, training) populated by careful mix of early and late adopters
  35. 35.  Keep abreast of changes  Learn to manage “early vs. late adopters”  Willing to be-not stay- ignorant Leadership for the New Era
  36. 36. Be Willing to Be Ignorant  New definition of leader – Ask, don’t tell – Envision, enable, empower  Dramatic reduction in number of operations reviews, presentations  Experts recognized at all levels  Meritocracy vs. hierarchy
  37. 37.  Keep abreast of changes  Learn to manage “early vs. late adopters”  Willing to be-not stay-ignorant  Open to coaching Leadership for the New Era
  38. 38. Be Open to Coaching  360o feedback initiatives worldwide  Focus on performance enhancement not appraisal  Formal mentoring programs (new-hires, fresh-outs, high potentials)  Role model leadership  Sharing of best practices
  39. 39.  Keep abreast of changes  Learn to manage “early vs. late adopters”  Willing to be-not stay-ignorant  Open to coaching  Build on strengths Leadership for the New Era
  40. 40. Build on Strengths  Vision-driven, values-based  Strengths – Boldness – Creativity – Counter-intuitive thinking – Customer focus – People – Integrity – Speed of learning
  41. 41.  Keep abreast of changes  Learn to manage “early vs. late adopters”  Willing to be-not stay-ignorant  Open to coaching  Build on strengths  Challenge assumptions Leadership for the New Era
  42. 42. Challenge Assumptions  Continuous improvement culture – Six Sigma – 10X cycle time reduction – Customer satisfaction indices – Employee training – New product development
  43. 43.  Keep abreast of changes  Learn to manage “early vs. late adopters”  Willing to be-not stay-ignorant  Open to coaching  Build on strengths  Challenge assumptions  Think the unthinkable Leadership for the New Era
  44. 44. Think the Unthinkable Historical Examples  Hospital wants to enhance comfort of terminally ill patients… Benchmarks Ritz Carlton hotels.  Southwest Air wants to differentiate by on-time arrivals/ departures - Benchmarks Indy 500 pit crews for speed.  Disposable Cameras - Throw away camera instead of box it’s in.  Instead of us making show for you, you make it for us – America’s Funniest Home Videos.
  45. 45. Leadership for the New Era  Keep abreast of changes  Learn to manage “early vs. late adopters”  Willing to be-not stay-ignorant  Open to coaching  Build on strengths  Challenge assumptions  Think the unthinkable  Lead by example
  46. 46. “Example is not the main thing in influencing others. It is the only thing.” - Albert Schweitzer
  47. 47. “The Speed of the Leader Determines the Rate of the Pack.”
  48. 48. You Can Stand Still and Get Buried by the Avalanche … orYouCanLearntoSki
  49. 49. Presentation by: Michael G. Winston Lean Six Sigma Summit 2008 May 1, 2008 Chicago, Illinois www.businessthoughtleader.com The Leadership Promise… In a Lean and Six Sigma World
  50. 50. A Focused Strategy Unleashes Creativity Know What Matters Most  Identify the few most important drivers of value in your group.  Focus your agenda almost exclusively on those drivers.  Communicate those priorities relentlessly; do not fear repetition. • What good is your knowing if they don’t. • Constantly test for shared understanding.  Ensure reporting appropriately supports that focus. – Don’t drown in data for data’s sake. – Watch the important metrics and take deeper dives when necessary.
  51. 51. A Focused Strategy Unleashes Creativity  Write a concise statement describing your group’s contribution to shareholder value. – Focus on tangible contributions to revenue, margins, productivity and growth.  Identify the 5-7 departmental goals that most directly drive that contribution.  Write down 3-5 actions you can take tomorrow to bring focus and discipline to your group. – Eliminate redundant/ non- value- added work. – Drop a routine that’s not connected to specific goals.  Share your written “hot list” with a partner. State by when you will have taken action on your “hot list,” and make a telephone appointment for that day. Activity- The Hot List
  52. 52. A Focused Strategy Unleashes Creativity Activity- Align Reporting & Metrics with Goals & Results  Review your statement of contribution to shareholder value.  Review your most crucial goals for accuracy.  What reporting and metrics do you use to monitor progress? – What must be increased? Bolstered? – What is redundant, wasteful, non-value-added?
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