Getting Started on the Six Sigma Journey... Lessons of Experience


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Getting Started on the Six Sigma Journey... Lessons of Experience

  1. 1. Getting Started on the Six Sigma Journey… Lessons of Experience CheckFree Corporation
  2. 2. Agenda Sustainable Results Making the Climb; A Better Way The Hard Road Getting Started on the Journey
  3. 3. Maxim Making complex financial activities easier for businesses and consumers… 
  4. 4. CheckFree Divisions <ul><li>Electronic Commerce </li></ul><ul><ul><li>Integrated Electronic Billing & Payment </li></ul></ul><ul><ul><li>Available at 1000+ Financial Service Organizations (Banks, Brokerages, Portals…) </li></ul></ul><ul><ul><li>Quarter Volume = 13m Consumers Initiated OnLine Payments </li></ul></ul><ul><ul><ul><li>Generating > 130m Transactions & Receiving > 22m eBills </li></ul></ul></ul><ul><li>Investment Services </li></ul><ul><ul><li>Portfolio Management & Reporting Services; Managing Nearly 1.5m Portfolios </li></ul></ul><ul><ul><ul><li>Totaling > $900 Billion in Assets </li></ul></ul></ul><ul><li>Software </li></ul><ul><ul><li>ACH Solutions Servicing > 66% of Nations 9-Billion ACH Payments </li></ul></ul><ul><ul><li>Financial & Compliance Solutions Providing Reconciliation, Financial Messaging, Workflow, & Compliance Software to > 600 Financial Service Organizations </li></ul></ul><ul><ul><li>iSolutions Leading Provider of eBilling & eStatement Software & Services for B2C & B2B </li></ul></ul>
  5. 5. Six Sigma Context <ul><li>FY99 – Sigma Challenge (EC) </li></ul><ul><ul><li>Service Quality Measurement Focus </li></ul></ul><ul><ul><li>Six Sigma Defect Measure Methodology </li></ul></ul><ul><ul><li>Evolution Path: ITO >> Development >> Customer Ops >> EC Comprehensive </li></ul></ul><ul><li>FY02 – Six Sigma (EC limited ) </li></ul><ul><ul><li>Mainstream Six Sigma </li></ul></ul><ul><ul><li>Selective Target Approach: Customer Ops & ITO </li></ul></ul><ul><ul><li>Focus: Develop Six Sigma Core Team & EC Deployment Strategy </li></ul></ul><ul><li>FY03 – Enterprise Enablement (EC) </li></ul><ul><ul><li>EC Initiative Deployment Strategy </li></ul></ul><ul><ul><li>Investment Focus: Major Fiscal Year Initiatives, Customer Ops, & Alliance Team </li></ul></ul><ul><li>FY04 & FY05 – Six Sigma Process Excellence (Company) </li></ul><ul><ul><li>CheckFree “Process Excellence” Deployment Strategy </li></ul></ul><ul><ul><li>Creation of Corporate Process Excellence Team </li></ul></ul><ul><ul><li>Investment Focus: CIS Deployment & EC Evolution </li></ul></ul><ul><ul><li>Investment Focus: Corporate HR Division </li></ul></ul><ul><ul><li>Investment Focus: Software Division </li></ul></ul><ul><li>FY03 – Enterprise Enablement (EC) </li></ul><ul><ul><li>EC Initiative Deployment Strategy </li></ul></ul><ul><ul><li>Investment Focus: Major Fiscal Year Initiatives, Customer Ops, & Alliance Team </li></ul></ul>
  6. 6. Deployment Decisions <ul><li>Approach </li></ul><ul><ul><li>Pilot, Selective Target, Blitz </li></ul></ul><ul><li>Competency </li></ul><ul><ul><li>Develop It, Hire It, Outsource It </li></ul></ul><ul><li>Training </li></ul><ul><ul><li>Outsource or Insource </li></ul></ul><ul><li>Sequencing </li></ul><ul><ul><li>Skill Type, Business Area, People & Positions </li></ul></ul><ul><li>Infrastructure </li></ul><ul><ul><li>Organization, Primary Metric, Communication </li></ul></ul><ul><li>Projects </li></ul><ul><ul><li>Selection Criteria, Return Requirements, Scope </li></ul></ul>
  7. 7. Getting Started on the Journey
  8. 8. Starting to Climb … with the best intentions  The Hard Road
  9. 9. Grass Roots Movement <ul><li>Excitement & Activity </li></ul><ul><li>Start-Up Successes </li></ul><ul><li>Management Confusion </li></ul><ul><li>Leader Impatience </li></ul><ul><li>Practitioner Frustration </li></ul><ul><li>Momentum (towards…) </li></ul>+ -
  10. 10. Just Start Equipping <ul><li>Training Metrics </li></ul><ul><li>Skills in the Business </li></ul><ul><li>Tool Injuries </li></ul><ul><li>Favoring Activity & Noise </li></ul><ul><li>Everything’s a nail… </li></ul><ul><li>Tools & Techniques </li></ul>+ -
  11. 11. BIG 1 st Projects <ul><li>BIG Projected Return </li></ul><ul><li>High Visibility </li></ul><ul><li>Not a Learning Environment </li></ul><ul><li>Patience Wears Thin </li></ul><ul><li>Energy Wanes </li></ul><ul><li>Attention & Focus </li></ul>+ -
  12. 12. Six Sigma Science <ul><li>Data, Statistics, Metrics </li></ul><ul><li>Y = f(x 1 , x 2 , x 3 ,..) </li></ul><ul><li>Strict Adherence </li></ul><ul><li>Inflexibility </li></ul><ul><li>Barrier Creation </li></ul><ul><li>Methodology Map </li></ul>+ - 
  13. 13. Some Communication <ul><li>Awareness </li></ul><ul><li>Curiosity </li></ul><ul><li>Pockets & Cliques </li></ul><ul><li>Elite Membership </li></ul><ul><li>In the name of… </li></ul><ul><li>Buzz </li></ul>+ -
  14. 14. Strict Centralization <ul><li>Competency Momentum </li></ul><ul><li>Clarity of Vision </li></ul><ul><li>Ownership? </li></ul><ul><li>Accountability? </li></ul><ul><li>Integration? </li></ul><ul><li>Allocation Control </li></ul>+ -
  15. 15. Run-n-Gun <ul><li>Surge Ahead </li></ul><ul><li>The Deep Ball </li></ul><ul><li>Hit a Wall </li></ul><ul><li>Left Behind </li></ul><ul><li>“ The Sound Barrier” </li></ul><ul><li>Quick Traction </li></ul>- +
  16. 16. The Hard Road <ul><li>Grass Roots Movement </li></ul><ul><li>Just Start Equipping </li></ul><ul><li>Big 1 st Projects </li></ul><ul><li>Six Sigma Science </li></ul><ul><li>Some Communication </li></ul><ul><li>Strict Centralization </li></ul><ul><li>Run-n-Gun </li></ul>
  17. 17. Making the Climb from Base Camp to the Summit… A Better Way 
  18. 18. Key Elements to a Successful Journey <ul><li>Scouting the Path </li></ul><ul><li>Fortifying Base Camp </li></ul><ul><li>Lead Climbers </li></ul><ul><li>Enabling the Journey </li></ul><ul><li>Early Impact </li></ul><ul><li>Vertical Ascent </li></ul>
  19. 19. Scouting the Path <ul><li>Terrain & Climate </li></ul><ul><ul><li>Assessing, Charting, … </li></ul></ul><ul><li>Expedition Strategy </li></ul><ul><ul><li>Planning, Pathing, … </li></ul></ul><ul><li>Supply Acquisition </li></ul><ul><ul><li>Gear, Skill, Experience, … </li></ul></ul><ul><li>Assimilating Climbers </li></ul><ul><ul><li>Identifying, Preparing, … </li></ul></ul><ul><li>Tactical Targeting </li></ul><ul><ul><li>Goals, Objectives, … </li></ul></ul>Scouting the path and preparing for Base Camp… Run-n-Gun
  20. 20. Tactical Targeting <ul><li>THE ESSENTIALS </li></ul><ul><li>Leadership </li></ul><ul><li>Business Process Model </li></ul><ul><li>Process Owners </li></ul><ul><li>Measurements </li></ul><ul><li>Process Teams </li></ul><ul><li>Designs </li></ul><ul><li>THE BUILDING BLOCKS </li></ul><ul><li>BackOffice Toolbox </li></ul><ul><li>Process Competency </li></ul><ul><li>Coaching </li></ul><ul><li>Reward Structure </li></ul><ul><li>Integration Management </li></ul><ul><li>Enabling Technology </li></ul><ul><li>Management Systems </li></ul><ul><li>HR Development Systems </li></ul>CPE Enterprise Elements Run-n-Gun
  21. 21. <ul><li>CAMP @ L2 </li></ul><ul><li>Process Owners </li></ul><ul><li>Measurement </li></ul><ul><li>Coaching </li></ul><ul><li>Rewards Structure </li></ul><ul><li>Integration Mgmt </li></ul>Claiming the Summit <ul><li>BASE CAMP </li></ul><ul><li>Leadership </li></ul><ul><li>Process Model </li></ul><ul><li>BackOffice Toolbox </li></ul><ul><li>Process Competency </li></ul><ul><li>CAMP @ L3 </li></ul><ul><li>Process Teams </li></ul><ul><li>Designs </li></ul><ul><li>Enabling Technology </li></ul><ul><li>Management Systems </li></ul><ul><li>CAMP @ L4 </li></ul><ul><li>Self-Evolution </li></ul><ul><li>Continuous Improvement </li></ul><ul><li>HR Systems </li></ul>CULTURAL PROCESS EXCELLENCE Just Start Equipping
  22. 22. Fortifying Base Camp: Assimilating Climbers ENABLING <ul><li>Improvement </li></ul><ul><li>Innovation </li></ul><ul><li>Execution </li></ul><ul><li>Satisfaction </li></ul>EQUIPPING <ul><li>Tooling </li></ul><ul><li>Training </li></ul><ul><li>Coaching </li></ul>PRINCIPLES <ul><li>New Elements of Importance </li></ul><ul><li>New Questions </li></ul><ul><li>New Answers </li></ul>PERSPECTIVE <ul><li>End-to-End </li></ul><ul><li>Customer-Centric </li></ul><ul><li>Dept Spanning </li></ul><ul><li>Process Model </li></ul>The Enablement Path Just Start Equipping
  23. 23. Perspective: The Enterprise Model … describes how activities across the business should be ORGANIZED , relate, behave, and WORK TOGETHER to deliver CheckFree Services to our Customers and Shareholders. <ul><ul><li>Measure Service Performance </li></ul></ul><ul><ul><li>Diagnose Service Issues </li></ul></ul><ul><ul><li>Assess & Allocate Improvement Investment Opportunities </li></ul></ul><ul><ul><li>Managing Process & Procedural Change </li></ul></ul><ul><ul><li>Drive Accountability & Achievement in All Our Services </li></ul></ul>A basis by which we will… Fortifying Base Camp Strategic Planning Business Planning Customer Relationship Mgmt Product & Service Support Product & Line Strategy Product Development Customer Acquisition Service Delivery Knowledge Management HR Management Marketing & Brand Management Fiscal Admin Management
  24. 24. Principles We will work to ensure that every process and every sub-process within the Business reflects each of these core process principles, characteristics, and attributes… <ul><ul><li>Core Values </li></ul></ul><ul><ul><li>Salmon Factor </li></ul></ul><ul><ul><li>Process Spanning </li></ul></ul><ul><ul><li>Enterprise Model </li></ul></ul><ul><ul><li>Adaptability </li></ul></ul><ul><ul><li>Base Attributes </li></ul></ul><ul><ul><li>Quality Input </li></ul></ul><ul><ul><li>Continuous Improvement </li></ul></ul><ul><ul><li>Approach </li></ul></ul><ul><ul><li>R & R </li></ul></ul><ul><ul><li>Value-Add </li></ul></ul>Fortifying Base Camp PROCESS OUTPUT INPUTS 
  25. 25. Equipping: The Common Methodology Improvement, Innovation, Design, & Re-Design A fusion of Best Practice methods and CF experiences… <ul><li>Six Sigma DMAIC </li></ul><ul><li>Six Sigma DMADV / DFSS </li></ul><ul><li>Breakthrough Thinking Innovation Toolsets </li></ul><ul><li>Holistic Process Enterprise Management </li></ul>Common Methodology Enablement <ul><li>A Process Perspective </li></ul><ul><li>Understand the Real Problem w/Data </li></ul><ul><li>VOC / VOB Integration </li></ul><ul><li>Principle Alignment </li></ul><ul><li>Data-Driven Decision Making </li></ul><ul><li>Measured Achievement </li></ul><ul><li>Pre-Imp Validated Solution </li></ul><ul><li>Controls & Response </li></ul>
  26. 26. Lead Climbers Enabled Leaders taking action through participative leadership support… “ Leading from good-to-great does not mean coming up with the answers and then motivating everyone to follow your messianic vision. It means having the humility to grasp the fact that you do not yet understand enough to have the answers and then to ask the questions that will lead to the best possible insights.” - Jim Collins Leaders Establish Base Camp Start @ the Top Grass Roots
  27. 27. Early Impact Efforts LONG TERM EFFORT EARLY IMPACT = EARLY IMPACT RESULT Why EI? <ul><li>Renews Energy </li></ul><ul><li>Earns Patience </li></ul><ul><li>Builds Momentum </li></ul>Where EI? <ul><li>Spin-Off Projects </li></ul><ul><li>Tool Assignments </li></ul><ul><li>Improv Support </li></ul>BIG 1 ST Project EI = EI RESULT EI = EI RESULT
  28. 28. Value & Visibility <ul><li>Simple, but comprehensive communication... </li></ul><ul><li>Integrate the message into conversation </li></ul><ul><li>Reference the framework in meetings </li></ul><ul><li>Public Recognition & Quarterly Forums </li></ul><ul><li>Target by Type </li></ul><ul><li>UDE Model </li></ul>Don’t underestimate the power of your Communication Plan… Some Communication
  29. 29. Value & Visibility The UDE Model Some Communication To comprehend the nature, value, and/or significance of concept, how it impacts them, and integrates into their area of expertise. Result: Support in understanding and knowledge. U nderstand & Support The ability to recognize, convey, and characterize the value, utilization, and leverage of the concept and how it brings value to the business. Result: Utilization of the concept in application and delivery. D escribe & Utilize To equip others with the knowledge, information, and understanding of concept such that its mechanics and value can be leveraged by others. Result: The transfer of knowledge and experience. E vangelize & Educate
  30. 30. Coaching & Mentoring Science through training; Art through coaching… The Power of Balance <ul><li>COMMIT TO COACH </li></ul><ul><li>Send them in 2s </li></ul><ul><li>Soft Skill Focus </li></ul><ul><li>6 Months, Intense </li></ul><ul><li>12 Months, in Pace </li></ul><ul><li>MASTERING THE ART </li></ul><ul><li>Adaptability </li></ul><ul><li>Flexibility </li></ul><ul><li>Scalability </li></ul><ul><li>Integrity </li></ul>Six Sigma Science
  31. 31. Enabling the Climb Six Sigma Centers of Excellence… To establish and enable strategies which equip the corporation to drive shareholder value through quality leadership in every service delivered. THE MISSION… Strict Centralization In the Business, for the Business, by the Business CIS Software Admin EC
  32. 32. The Expedition: A 4-Front Strategy FUTURE VIEW Building it in for Summit-Quality VERTICAL ASCENT Enabled Leadership taking action UNIFIED CLIMB Engaging the troops & climbing together EARLY IMPACT Advance activity in immediate opportunities EI = EI RESULT
  33. 33. Vertical Ascent A fundamental approach to leading the change… <ul><ul><li>Create a sense of urgency </li></ul></ul><ul><ul><li>Build a powerful guiding coalition </li></ul></ul><ul><ul><li>Create the vision of what it will look like </li></ul></ul><ul><ul><li>Communicate the urgency, need, and vision broadly, frequently </li></ul></ul><ul><ul><li>Equip and enable employees with empowerment </li></ul></ul><ul><ul><li>Produce sufficient short-term results to silence critics and justify longer-term commitment </li></ul></ul><ul><ul><li>Build momentum to tackle tougher problems </li></ul></ul><ul><ul><li>Anchor new behavior in the culture of the corporation </li></ul></ul>Source: John Kotter, What Leaders Really Do , Harvard Business Review, 1999.
  34. 34. Sustainable Results <ul><li>Grass Roots Movement </li></ul><ul><li>Just Start Equipping </li></ul><ul><li>Big 1 st Projects </li></ul><ul><li>Six Sigma Science </li></ul><ul><li>Some Communication </li></ul><ul><li>Strict Centralization </li></ul><ul><li>Run-n-Gun </li></ul>The Hard Road <ul><li>Lead Climbers </li></ul><ul><li>Perspective & Principles </li></ul><ul><li>Early Impact </li></ul><ul><li>Coach the Art </li></ul><ul><li>Value & Visibility </li></ul><ul><li>Enable the Business </li></ul><ul><li>Plan the Expedition </li></ul>A BETTER WAY