Institutionalizing Six Sigma into your Entire Organization for Business Results
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share

Institutionalizing Six Sigma into your Entire Organization for Business Results

  • 725 views
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
725
On Slideshare
725
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
4
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • Wellington Fund – 1928 The Vanguard Group – 1975 Pure no-load mutual fund company Diverse, well-defined investment options More than 15 million shareholder accounts 70 years experience communicating directly with investors Managing defined contribution plans since 1982 More than $600 billion in total assets More than $280 billion in institutional assets 10,000+ Crew members
  • Goals & Benefits Opportunity - Encouraging Crew to actively utilize available resources to uncover opportunity areas and act. Accountability - Increasing Crew accountability, ownership, and involvement in team performance Idea Sharing - Providing a forum for Crew and senior management interaction to discuss team measures and performance. Line of Sight - Giving Crew a clear understanding of how their performance impacts their team, department, and Vanguard. Interaction - Crew and Upper-Level Management interact more frequently and collaborate to improve Vanguard. Success Factors A strong Sponsor – The Sponsor, who is the head of the department, has to lead by example and ensure that attendance and support for the Metrics in Motion program is a priority. This is the meeting that you only miss if you’re out of the office. A capable Process Owner – The Process Owner, typically a member of the Metrics Team, facilitates the program. An existing Measurement Framework with Team Dashboards/Measures – In order for teams to own their performance, they need the ability to collect data and report their department dashboards/measures on a per-team basis.

Transcript

  • 1. 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
  • 2. Agenda
    • Vanguard Unmatchable Excellence: Vanguard and Six Sigma
    • Why Implement Everyday Excellence
    • The Components of Everyday Excellence
    • Everyday Excellence at Vanguard
    • Lessons Learned
  • 3. Vanguard Unmatchable Excellence Vanguard and Six Sigma
  • 4. To help clients reach their financial goals by being the world's highest-value provider of investment products and services. Corporate Mission Value Proposition The Vanguard Group
  • 5. Vanguard Worldwide Locations Malvern, PA Group Headquarters Brussels Melbourne Tokyo Scottsdale, AZ Singapore    Amsterdam Charlotte, NC Asia/Pacific Rim Europe The Americas Paris Sydney
  • 6.
    • $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
  • 7. 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
  • 8. The Everyday Excellence Approach Why are we doing it?
  • 9. 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?”
  • 10. 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
  • 11. The Components of Everyday Excellence What are they?
  • 12. 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
  • 13. MiM: Dashboards
    • “ Dashboards” are created at the team level and provide clear understanding of how individual performance impacts the team, department, and Vanguard.
    • Dashboards facilitate accountability on team performance and encourages the Crew to use VUE on a daily basis.
    • Dashboards are evolving from a reactive tool to a more proactive tool as Crew modify the measures from lagging metrics to leading metrics.
    Dashboard John Doe, Team Strive Core Team Level Dashboard (Sample) Sample Team Level Dashboard
  • 14. MiM: Voice of Crew
    • “ Voice of Crew” is a similar concept to Voice of Customer or Voice of Business whereby Vanguard improves via Crew suggestions.
    • The purpose of the program is to identify, track, and report status of the suggestions made by Crew to Vanguard leadership.
    • Solutions are usually quick wins and typically involve the Crew Member who made the suggestion initially.
    Sample Voice of Crew Report
  • 15. MiM: Broken Windows
    • “ Broken Windows” are improvement opportunities where the root cause, and therefore “fix,” is obvious.
    • The purpose of the program is to identify and fix opportunities within a business unit or division through Crew empowerment.
    • Solutions are quick wins, which may have an immediate and beneficial impact on the client directly or indirectly, on the business unit in terms of efficiency gains, and on Crew morale.
    Sample Broken Window Report
  • 16. MiM: Crew 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
  • 17. 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?
  • 18. Everyday Excellence at Vanguard How is it going?
  • 19. Everyday Excellence at Vanguard < Everyday Excellence Video >
  • 20. Everyday Excellence at Vanguard What have we learned?
  • 21. Lessons 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!”
  • 22. 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