Everyday Excellence: Institutionalizing Six Sigma into your Entire Organization for Business Results William E. Welker Andrew P. Billet VUE Master Black Belt VUE Master Black Belt The Vanguard Group The Vanguard Group WCBF 2nd Annual Conference Six Sigma for Financial Services New York City, New York May 11-12, 2006
$985+ billion in U.S. Mutual Fund assets under management
130 Investment Offerings
11,000+ Crew members
Leading provider of diverse & disciplined investment offerings
Mutual Funds/Brokerage/Annuities/Asset Mgt
College Savings/Financial Planning/Advice
Cash Management/Exchange-Traded Funds
Institutional (Defined Contributions, Defined Benefit, NQP)
Malvern, Pennsylvania Charlotte, North Carolina Scottsdale, Arizona Vanguard Domestic Locations
The Evolution of VUE 2000 2001 2002 2003 2004 2005 2006… Continuous Improvement Process Excellence Business Processes Crew Engagement Everyday Excellence VUE Today Phase 3: Process Evolution End-to-End Process Focus Full Crew Involvement Building upon DMAIC Foundation Flexible Solutions Business Results Phase 1: Awareness “ Why Six Sigma at Vanguard?” Dashboard Creation and Implementation Introduction to Bratton and DMAIC Phase 2: Infrastructure Strong DMAIC Foundation Bring Training In-House Increase Certification Rigor VUE Framework & Program Structure
The Everyday Excellence Approach Why are we doing it?
The Problem… The majority of VUE tools and communications are delivered via a top-down approach. As the “line of sight” grows, a question presents itself: “Are all Crew getting the whole message?”
The Solution… The bottom-up, Everyday Excellence approach ensures that all Crew not only receive the VUE tools and communications, but become active participants , thereby harnessing the true power of VUE. VUE
The Components of Everyday Excellence What are they?
Metrics in Motion Dashboards are leveraged by Crew to measure relevant information on team performance. Voice of Crew is encouraged and acted upon by both the Crew and Vanguard Leadership. Broken Windows are “Quick Hit” projects that enable the Crew to take action rather than just point out problems. Crew Development is critical to encourage involvement and highlight achievement. Metrics in Motion is the framework, bringing everything together as an effective management tool and leveraging the power of all Vanguard Crew! Everyday Excellence Dashboard 6 σ Development
Crew Development refers to the growth of Vanguard Crew into effective leaders.
“ Back to Basics” is a Vanguard leadership program that focuses on people management.
Crew Development is tracked and delivered through, among other things, one-on-one’s, personal performance measures, training, and rewards and recognition.
6 σ Development Sample Crew Development Report
Metrics in Motion (MiM) Crew Team Leader Team Members/Crew Data Metrics Team Senior Team Sponsor and Directs “ On the floor, outside the Crew’s cubicles” Metrics in Motion Presentation
A Crew-led forum for presenting business unit-level dashboards/measures, Voice of Crew, Broken Windows, and Crew Development to senior management and fellow team members.
On a weekly basis, the Senior Team visits a prescheduled number of different teams in a venue visible to all Crew to participate in team presentations.
Team presentations are conducted by the Crew to senior management, and are time-boxed – typically for 15 minutes per team, and are usually held outside the Crew’s cubicles. Do not move Metrics in Motion into a conference room.
Team presentations usually cover four key topics: business unit dashboard/measures review, Voice of Crew updates/progress, Broken Windows ideas/progress, and Crew Development.
What is it?
Everyday Excellence at Vanguard How is it going?
Everyday Excellence at Vanguard < Everyday Excellence Video >
Everyday Excellence at Vanguard What have we learned?
Everyday Excellence is a culture , not a fad. Therefore, expect Everyday Excellence to generate excitement and significant change .
Everyday Excellence provides a clear “line of sight” for the Crew while emphasizing how individual contribution ultimately links to company success.
Everyday Excellence provides the majority of Crew members with a rigorous, yet simplified approach to continuous improvement while leveraging the same quality tools that are taught and used today in VUE.
Everyday Excellence requires total top-down commitment to ensure bottom-up success!
Everyday Excellence enables Crew members to feel empowered to question, recommend, and improve processes - “I can make a difference!”
Questions? Thank You! “ Everyday Excellence is harnessing the power of 11,000 Crew members who are committed to continuously improving what we do every day.” --John J. Brennan, CEO, Vanguard