Envisioning Quality and Excellence in a Services Environment Thomas McCarty EVP Six Sigma Practice Leader Jones Lang LaSalle
Introductions <ul><li>Executive Vice President, Six Sigma Deployment Leader, Jones Lang LaSalle, Inc </li></ul><ul><li>Co-...
The Case for Change “ Your costs are too high  and your service stinks!!” Chief Financial Officer
The Difference Between Average and Best Practice Can Make or Break A Service Business 20% Labor Costs  Accounts Payable La...
Six Sigma Methodology Is… <ul><li>An overall methodology that drives business improvement. </li></ul><ul><li>A proven tool...
Six Sigma Adoption – The Maturity Spectrum Adoption Level Business Impact <ul><li>Managing process variation </li></ul><ul...
Six Sigma Adoption – Levels of Implementation Adoption Level Business Impact Discrete  Problem Solving Targeted  Improveme...
Dismantling Resistance <ul><li>Manufacturing vs. Service </li></ul>
Dismantling Resistance <ul><li>People vs. Process </li></ul>
Dismantling Resistance <ul><li>Beyond Control (‘this is art…man’) </li></ul>
Dismantling Resistance <ul><li>The Personality Myth/ The Hero Syndrome </li></ul>
Dismantling Resistance <ul><li>The Curse of Good Enough </li></ul>
Voice of the Customer Performance  Metrics Governance Lean Process Design Process Improvement Teams Client-Driven Six Sigma
Voice of the Customer Performance  Metrics Governance Lean Process Design Process Improvement Teams Client-Driven Six Sigma
Voice of the Customer Example Voice of the Customer In order to meet my expectations, you must … <ul><li>Meet or exceed my...
Voice of the Customer Performance  Metrics Governance Lean Process Design Process Improvement Teams Client-Driven Six Sigma
(Figure 5) Project “A” Goal: Actual: Project “B” Goal: Actual: Project “C” Goal: Actual: Enables leaders to check status a...
Voice of the Customer Performance  Metrics Governance Lean Process Design Process Improvement Teams Client-Driven Six Sigma
Voice of the Customer Performance  Metrics Governance Lean Process Design Process Improvement Teams Client-Driven Six Sigma
Call Center Process innovation enables Call takers to dispatch work orders directly to sub contractors Sub-contractor <ul>...
Voice of the Customer Performance  Metrics Governance Lean Process Design Process Improvement Teams Client-Driven Six Sigma
Reaching Higher Level Partnerships with Customers Repurchase Expand Innovate Tactical Partner Vendor Strategic
The Six Sigma Methodology is the Path to Customer Driven Solutions <ul><li>A framework for discussing high level customer ...
The Six Sigma Solution Development Process <ul><li>Draw customers into a  discovery   dialogue </li></ul><ul><li>Engage cu...
Six Sigma Solution Development Process <ul><li>Develop customer Scorecard </li></ul><ul><li>Conduct high level process ana...
Tips for Getting Started <ul><li>Focus on a Few Key Metrics </li></ul><ul><ul><li>Cycle Time </li></ul></ul><ul><ul><li>Fi...
Six Sigma – Your Swiss Army Knife for Business Improvement
Let’s Have A Great Conference
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Envisioning Quality and Excellence in a Services Environment

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Transcript of "Envisioning Quality and Excellence in a Services Environment"

  1. 1. Envisioning Quality and Excellence in a Services Environment Thomas McCarty EVP Six Sigma Practice Leader Jones Lang LaSalle
  2. 2. Introductions <ul><li>Executive Vice President, Six Sigma Deployment Leader, Jones Lang LaSalle, Inc </li></ul><ul><li>Co-Author of &quot;The New Six Sigma“, Lead Author of “The Six Sigma Black Belt Handbook” </li></ul><ul><li>15 years experience in leading Six Sigma Business Improvement Initiatives </li></ul><ul><ul><li>working with numerous executive teams across multiple industries </li></ul></ul><ul><ul><li>Helping formulate strategic plans, lean process designs, and focused Six Sigma implementation plans </li></ul></ul><ul><ul><li>A variety of industry and functional expertise to assist leaders in enhancing their business performance and financial results </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul>Tom McCarty
  3. 3. The Case for Change “ Your costs are too high and your service stinks!!” Chief Financial Officer
  4. 4. The Difference Between Average and Best Practice Can Make or Break A Service Business 20% Labor Costs Accounts Payable Labor Costs Year-to-Year Cost Reduction Headcount End-to-End Cycle Time Calls Per Day Improvement Realized 40% Month End Revenue Recognition 20-30% Strategic Sourcing 20-30% Project Management 30% Project Management 30% Call Center Agent Productivity Practice Area
  5. 5. Six Sigma Methodology Is… <ul><li>An overall methodology that drives business improvement. </li></ul><ul><li>A proven tool set for driving and achieving transformational change within an organization. </li></ul><ul><li>A Continuous Improvement Process that focuses an organization on </li></ul><ul><ul><li>Customer requirements </li></ul></ul><ul><ul><li>Process alignment </li></ul></ul><ul><ul><li>Analytical rigor </li></ul></ul><ul><ul><li>Timely execution </li></ul></ul>
  6. 6. Six Sigma Adoption – The Maturity Spectrum Adoption Level Business Impact <ul><li>Managing process variation </li></ul><ul><li>Monitoring KPI’s </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Team based problem solving </li></ul><ul><li>Consistent use of DMAIC model </li></ul><ul><li>Trained project resources </li></ul><ul><li>Project selection and prioritization process </li></ul><ul><li>Organizational Transformation </li></ul><ul><li>Voice of the Customer drives strategy execution </li></ul><ul><li>Collaborative process integration </li></ul><ul><li>Metrics driven governance process </li></ul>Metric Methodology Management System
  7. 7. Six Sigma Adoption – Levels of Implementation Adoption Level Business Impact Discrete Problem Solving Targeted Improvement Projects Organizational Transformation
  8. 8. Dismantling Resistance <ul><li>Manufacturing vs. Service </li></ul>
  9. 9. Dismantling Resistance <ul><li>People vs. Process </li></ul>
  10. 10. Dismantling Resistance <ul><li>Beyond Control (‘this is art…man’) </li></ul>
  11. 11. Dismantling Resistance <ul><li>The Personality Myth/ The Hero Syndrome </li></ul>
  12. 12. Dismantling Resistance <ul><li>The Curse of Good Enough </li></ul>
  13. 13. Voice of the Customer Performance Metrics Governance Lean Process Design Process Improvement Teams Client-Driven Six Sigma
  14. 14. Voice of the Customer Performance Metrics Governance Lean Process Design Process Improvement Teams Client-Driven Six Sigma
  15. 15. Voice of the Customer Example Voice of the Customer In order to meet my expectations, you must … <ul><li>Meet or exceed my service expectations. </li></ul><ul><li>Communicate project status frequently. </li></ul><ul><li>Meet my financial objectives. </li></ul><ul><li>Provide real estate solutions tailored for my specific needs. </li></ul>(Figure 4)
  16. 16. Voice of the Customer Performance Metrics Governance Lean Process Design Process Improvement Teams Client-Driven Six Sigma
  17. 17. (Figure 5) Project “A” Goal: Actual: Project “B” Goal: Actual: Project “C” Goal: Actual: Enables leaders to check status and financial impacts of key improvement projects Transactions & Projects Goal: Actual: Space & Occ Planning Goal: Actual: Enables leaders to drill down into each operational process Ran Rate Savings Goal: Actual: Client Satisfaction Goal: Actual: Tracks performance relative to key operational performance metrics Cost Reduction Goal: $0 MM Actual: $0 MM Client Impact Goal: $0 MM Actual: $0 MM Retail Roll Out Goal: $0 MM Actual: $0 MM Shareholder ROI Goal: $0 MM Aggregate: $0 MM Tracks performance relative to strategic and financial impact of CRE Data Accuracy Goal: Actual: Speed Goal: Actual: Facilities Management Goal: Actual: Scorecard Operational Dashboard Process Drill-Down Project Status Project “D” Goal: Aggregate:
  18. 18. Voice of the Customer Performance Metrics Governance Lean Process Design Process Improvement Teams Client-Driven Six Sigma
  19. 19. Voice of the Customer Performance Metrics Governance Lean Process Design Process Improvement Teams Client-Driven Six Sigma
  20. 20. Call Center Process innovation enables Call takers to dispatch work orders directly to sub contractors Sub-contractor <ul><li>Process Innovation: </li></ul><ul><li>Data base enables call taker to dispatch directly to preferred sub-contractor </li></ul><ul><li>2 non-value added steps eliminated </li></ul><ul><li>Property managers freed to do higher value work </li></ul><ul><li>Responsiveness improves </li></ul>Dispatch sub Inform property manger Steps Customer Call taker Property manager Receive request Identify preferred sub Dispatch directly to subcontractor Perform work Close out work order Take request Input work order Call with request ID preferred sub from database Accept work request Perform work Close out ticket Call the call center R oles (Figure 6)
  21. 21. Voice of the Customer Performance Metrics Governance Lean Process Design Process Improvement Teams Client-Driven Six Sigma
  22. 22. Reaching Higher Level Partnerships with Customers Repurchase Expand Innovate Tactical Partner Vendor Strategic
  23. 23. The Six Sigma Methodology is the Path to Customer Driven Solutions <ul><li>A framework for discussing high level customer business objectives </li></ul><ul><ul><li>the customer’s big “Y’s” </li></ul></ul><ul><li>A framework for exploring performance drivers that impact those objectives </li></ul><ul><ul><li>the customer’s vital “X’s” </li></ul></ul><ul><li>A methodology for analyzing and proving business impact of innovative solutions </li></ul><ul><ul><li>the business case </li></ul></ul><ul><li>A methodology for driving solution implementation </li></ul><ul><ul><li>Execution and Sustained improvement </li></ul></ul>
  24. 24. The Six Sigma Solution Development Process <ul><li>Draw customers into a discovery dialogue </li></ul><ul><li>Engage customers in collaborative business improvement teams for joint business case development </li></ul><ul><li>Drive analysis, improve project execution and demonstrate impact on desired results </li></ul><ul><li>Enable customer to drive sustained gains and continuous improvement across the life of the solution </li></ul>
  25. 25. Six Sigma Solution Development Process <ul><li>Develop customer Scorecard </li></ul><ul><li>Conduct high level process analysis </li></ul><ul><li>Identify opportunities </li></ul><ul><li>Conduct baseline measurement & analysis </li></ul><ul><li>Develop business case </li></ul><ul><li>Select opportunity </li></ul><ul><li>Conduct deeper analysis </li></ul><ul><li>Apply rigorous project management & monitoring </li></ul><ul><li>Use Blitz and Breakthrough teams to drive implementation </li></ul><ul><li>Transfer Six Sigma capability to customer </li></ul><ul><li>Develop control plans and monitoring systems </li></ul><ul><li>Optimize processes </li></ul>Innovations Workshop Business Improvement Teams Business Case & Contract Solution Implementation Teams Ongoing Process Management Collaboration with Customer Teams
  26. 26. Tips for Getting Started <ul><li>Focus on a Few Key Metrics </li></ul><ul><ul><li>Cycle Time </li></ul></ul><ul><ul><li>First Pass Yield </li></ul></ul><ul><ul><li>Rework </li></ul></ul><ul><li>Launch Serious Improvement Projects </li></ul><ul><ul><li>Meaningful to clients </li></ul></ul><ul><ul><li>High potential team members </li></ul></ul><ul><ul><li>Demand results </li></ul></ul><ul><li>Involve Senior Leadership </li></ul><ul><ul><li>Get beyond lip service </li></ul></ul><ul><ul><li>Monthly performance monitoring and action planning </li></ul></ul>
  27. 27. Six Sigma – Your Swiss Army Knife for Business Improvement
  28. 28. Let’s Have A Great Conference
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