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Leading
in a Lean Six Sigma Environment


      Facilitated by: John Besaw, Ph.D.




                                          1
e-Genda
 The Context
 Attention through Vision
 Lean concepts and Six Sigma problem solving
  methodology
 Framework for Transformation
 Sustaining Change
 Leadership Assessment Activities




                                                2
Renewal
    or
stagnation!




              3
Lean Six Sigma

Lean Six Sigma promotes a culture that
targets continuous process improvement
through the relentless elimination of waste.




                                          4
Leading in a
   Lean Six Sigma Environment
A leadership philosophy dedicated to creating
and keeping loyal customers through continuous
improvement of all products, services, and
processes.

Requires the active and continual participation of
“engaged” employees in an environment
supportive of innovation and teamwork.


                                                 5
Activity
 What are we doing now that we
  shouldn’t be doing at all.
  1)
  2)
  3)


  There may be too many To-Do lists.
     Consider A “Not-To-Do” List

                                       6
Systems Thinking
A whole-systems approach that creates a culture
in which everyone is continuously improving
processes.
  Leadership’s commitment
  Empowered, engaged employees
  An action orientation




                                              7
Culture




          8
Two “Sides”

The “HARD” Side:      The “SOFT” Side:
 is about             is about
  •   processes         • buy-in
  •   measurement       • commitment
  •   tools             • attitude
  •   structures        • overcoming
  •   procedures          resistance to change
                        • self-leadership



                                                 9
Culture
    Traditional                              RapidLeanSixSigma
•    Authoritarian                       •    Participative
•    No risk-taking                      •    Encourage change
•    Fear of job loss                    •    Job security
•    Status quo                          •    Continuous improvement
•    Systems policies                    •    Policies that inspire people to
                                              want continuous improvement
•    “Beat on” supplier                  •    Work with supplier
•    Distant from customers              •    Close to customers
•    Few people trained in basic tools   •    Everyone trained in basic tools




                                                                         10
Example: Anchor to Culture


    Customer Satisfaction
    Pride in Continuous Improvement
    Teamwork
    Empowerment
    Employee Engagement
    Communication



                                       11
Leaders Make-It-Happen
Lean Six Sigma provides the tools and
techniques for making decisions and solving
problems - fast.

An organization’s early success will be realized
through engaged employees using an
empowered approach for “Rapid” process
improvement.

Leaders “Make-It-Happen”

                                                   12
Apparent
           Roles
                             Attitude
      Structure
                   Systems
Less Apparent
             Beliefs         Informal Communication
                       Attitude
           Motivation and Commitment



                                                      13
Keeping it Simple

Adds Value     or     Non-Value Added



  Simplicity is the new complexity.




                                        14
For Consideration

 Efficient: “Do things right.” (Management)

 Effective: “Do the right things.” (Leadership)




                                                   15
Essential Skills
Building Trust
Managing Relationships
Communicating Effectively




                              16
UN - LEARNING
. . . the real challenge today is unlearning,
which is much harder. Each of us has a
“mental model” that we’ve used to make sense
of the world. But the new world of business
behaves differently from the world in which we
grew up. Before any of us can learn new
things, we have to make our current
assumptions explicit and find ways to challenge
them.
John Seely Brown
Chief Scientist, Xerox Corp
Palo Alto, California

                                                  17
The Knowing Doing Gap
        It's doing,
      not knowing,
that makes the difference.




                             18
Orientation

            Fixing problems,

            Not - fixing blame.

“We are in a new economic age. We can no
longer live with commonly accepted levels of
delays, mistakes, defective materials and
defective workmanship.”
                          Dr. W. Edwards Deming

                                               19
Leader’s Role
Stay involved,
Actively support,
Train,
Communicate,
Motivate,
and Model the Way.




                     20
Leadership
      Key Deliverables




Increased            Higher Levels
Efficiency          of Performance




                                     21
Example: Targets



Cost Reduction (improved profitability)
Continuous Improvement
Workforce Engagement
Speed and Simplicity



                                           22
About Change

 90% of all organizations have attempted some
  form of large scale business change

 75% of these attempts fail
                                    Fortune Magazine




                                                       23
Leadership Drives Change




                Management

                             24
Leading in a
 RapidLeanSixSigma Environment
 Build a Shared Vision
 Create a Guiding Coalition
 Empower Broad-Based Action
 Generate Short-Term Wins
 Communicate the Vision
 Anchor RapidLeanSixSigma in the Culture




                                            25
“Big Picture”
 Active, executive-level leadership.
 Need highly visible (transparent) process.
 People need to be “released.”
 Each of us must find our own way.




                                               26
“The Journey”

                                        Vision
                                    Lean Six Sigma


                                             TO BE
Where we      Step 1 Analyze the Gap: Review the differences
are today?    between where you are and where you intend to be.
              Step 2 Plan the Route: Decide actions to progress
  AS IS       from present state to future state.
              Step 3 Lead the Journey: Provide resources,
              support, train, and model the way.


                                                          27
“Emotional Rollercoaster”

                                                   To Be
                                     Performance


                 Acceptance

  Trigger                          Growth
          Fear Denial
  Event
            Anger       Learning
As Is
                           Break Through

            Phase 1      Phase 2    Phase 3



                                                           28
Transition as a Continuous and Accelerating
    Process - as soon as the “Improved State” is
     achieved, make it the new “Current State.”


                                                          Improved State

R                                                    Transition State
A
T
                                                 Current State
E                               Improved State


O                           Transition State
F
                          Current State
C        Improved State
H
A      Transition State
N
G   Current State
E

                                    TIME

                                                                        29
Same Direction


Clarity         Consistency         Commitment




      Clarity   Consistency   Commitment




                                                 30
Caution

Stay away from ineffective and
 “backward focused” questions.

Use “effective questions” that are
 “forward focused.”




                                      31
Keys to Implementation
1. Keep Leaders Involved
2. Align Lean Six Sigma implementation to
   Business Strategy and Priorities
3. Keep Message Simple and Clear
4. Position as Improved Competitiveness and
   World Class
5. Focus on Short-Term Results
6. Focus on Long-Term Growth and Development
7. Make Learning an Ongoing Activity


                                           32
Steps to Action
                                           Action



                              Commitment



              Understanding




Information

                                                    33
For Discussion

Compliance          Commitment
Training            Learning
Short Term          Long Term
External            Internal
Safety              Risk-taking
Predictability      Ambiguity
Control             Order




                                  34
8th Waste
     Workers Who Are Engaged
          26%-55%-19%

 26% engaged (loyal and productive)
 55% not engaged (just putting in time)
 19% actively disengaged (unhappy and
  spreading their discontent)

        Source: “The leadership kit: Leadership is confusing as hell”
                                          Fast Company Magazine



                                                                        35
Behaviors that Get Results
“Coaching” involves letting people know
 what to do, how to do it, when to do it and
 then measuring behavior.

“Supporting” involves listening to
 people, providing support and
 encouragement for their efforts, and then
 facilitating their involvement in problem-
 solving and decision making.

                                              36
37
Anticipating and Preparing for
   Change Despite Current Success
 In this fast moving world, product life cycles are shorter than in the
  past. Consider some of the business processes, product, or
  strategies - graph where each of these might presently be on the first
  curve (shown below).
 Reflect on the significance of where you have placed your mark on
  the first sigmoid curve immediately above, be it in reference to your
  career, your group’s product or service, and so on. What steps do
  you need to consider taking so that you can prepare for the second
  curve, without prematurely leaving your current success (on the first
  curve) behind?
 How can you use the concept of the sigmoid curve to help ensure
  your success as a leader? What changing demands are being made
  of leaders in your organization, and how can you adapt your thinking
  and approach to meet these leadership demands?
 Source: The Sigmoid Curve:


                                                                       38
Growth                Decline




                          Life Cycle
Start Business            CHANGE                 Out of Business

                                                         39
Quantum improvements come not from
simply working harder or smarter at the
same old things, but from figuring out
how to eliminate the need to do the
same old things.




                                     40
Freedom to Choose

               Events


                                  Freedom to
                                    Choose




               Outcome

Events + Response = Outcome and Learning
                                         41
For Discussion
I don't have to attend every argument I'm
   invited to.

Don’t believe everything you think.


                           Source unknown


                                            42
Short Break




        43
Tracking System




                  44
Tracking System
                Nov   Dec    Jan   Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct

Coaching/
Training
Booster
Month
Communication
Campaign
Coaching

Promotion

Evaluation

Follow-up

Continuous
Improvement
Training
Master Plan


                                                                                     45
Facilitation




               46
ORID
 Objective Level Questions
    Invites inclusive participation
    Gets out the facts and objective data
 Reflective Questions
    Acknowledges emotions and initial associations
    Invites participants to use their imagination
 Interpretive Questions
    Builds shared awareness within the group
    Identifies available options and possibilities
 Decisional Questions
    Draws out deeper meaning
    Makes conversation relevant to the future
    Exposes group choice
 Closing: To confirm the group’s resolve
                                                      47
Parking
  Lot




          48
Model
Balanced Score Card




                      49
VISION
                                     Through teamwork, be the
                                        best in our business.

                                             VALUES
                                • Teamwork    • Honesty         • Integrity
                                  • Respect • Opportunity       • Urgency


                                            Culture
                                    Create an environment that
    To satisfy our customers,         inspires people to work
    at which processes must                                                   To achieve our vision, how
                                       together, engages our
            we excel?                                                         must our organization learn
                                     employees in continuous                        and improve?
                                        learning, and allows
                                         everyone to excel.
 Internal Processes                                                                    Financial
    Develop and execute                                                       Improve profit significantly
innovative processes which                                                         year over year.
allow us to exceed customer
       expectations.

   To achieve our vision, how              Customer
                                                                              When we succeed, how
      must we look to our
          customers?
                                        Deliver best value                     will we look to our
                                                                                 stakeholders?
                                    static control components


                                                                                                             50
VISION
                                                                          Through teamwork, be the
                                                                              best in our business.

                                                                                      VALUES
                                                                 • Teamwork    • Honesty               • Integrity
                                                                   • Respect • Opportunity             • Urgency



            CULTURE                           INTERNAL PROCESSES                                      CUSTOMER                                         FINANCIAL
   Create an environment that                                                                       Deliver best value .                        Improve profit significantly year
inspires people to work together,             Develop and execute innovative                                                                              over year.
    engages our employees in                 processes which allow us to exceed             • We must provide the best products and             • We must maximize total overall
 continuous learning, and allows                  customer expectations.                         services as determined by our                     performance of each of our
        everyone to excel.                                                                                 customers:                                     businesses:
                                              •We must manage our manufacturing                            - Reliability                            - Profitable Revenue Growth
• We must pursue outstanding leadership
                                               strategy to deliver Lean products on                  - Product Performance                                 - Material Costs
       at all levels of the organization.
                                                     time, at competitive costs.                        - Product Features                             - Operating Efficiency
     • We must maximize the power of
                                                   •We must continually improve                   - Product and Part Delivery                             - Warranty Costs
                    diversity.
                                                  business links with suppliers and                                                                         - Period Yield
   • We must promote the safety of our
                                                             customers.                                                                                 - Asset Management
                     people.
  • We must ensure accurate and timely
     communication about the business.
  • We must ensure that our people have
    the appropriate skill, knowledge, and
                 competencies.
       • We must meet or exceed the
     environmental requirements for our
                    facilities.
 • We must institutionalize Principles of
  Lean to drive continuous improvement
          throughout the value chain.
                                                                                       Results

                                        Results                                                                                       Results

                                                                                                                                                                         51
Initial Steps
         Might look like this. (1 of 2)
 Generate executive leadership interest in
  transformation
 Conduct Transformation Overview executive
  briefing
 Decide to move forward with Transformation
  implementation
 Conduct Transformation training to Centers of
  Influence
 Select the first cluster of business for
  Transformation


                                                  52
Initial Steps
             Might look like this (2)
 Identify training requirements
 Conduct training
 Make second assessment of implementation
 Make decision to expand the initiative
 Revise Transformation deployment Schedule
 Integrate lessons learned into strategy




                                              53
“Rapid” Recognition
Use existing awards and recognition
program.
Develop additional incentives such as
certificates of appreciation.
Publicize success stories, initiatives, and
results.
Recognize individuals and teams.



                                               54

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Leading In A Lean Six Sigma Environment.Short Version For Web

  • 1. Leading in a Lean Six Sigma Environment Facilitated by: John Besaw, Ph.D. 1
  • 2. e-Genda  The Context  Attention through Vision  Lean concepts and Six Sigma problem solving methodology  Framework for Transformation  Sustaining Change  Leadership Assessment Activities 2
  • 3. Renewal or stagnation! 3
  • 4. Lean Six Sigma Lean Six Sigma promotes a culture that targets continuous process improvement through the relentless elimination of waste. 4
  • 5. Leading in a Lean Six Sigma Environment A leadership philosophy dedicated to creating and keeping loyal customers through continuous improvement of all products, services, and processes. Requires the active and continual participation of “engaged” employees in an environment supportive of innovation and teamwork. 5
  • 6. Activity  What are we doing now that we shouldn’t be doing at all. 1) 2) 3) There may be too many To-Do lists. Consider A “Not-To-Do” List 6
  • 7. Systems Thinking A whole-systems approach that creates a culture in which everyone is continuously improving processes. Leadership’s commitment Empowered, engaged employees An action orientation 7
  • 9. Two “Sides” The “HARD” Side: The “SOFT” Side:  is about  is about • processes • buy-in • measurement • commitment • tools • attitude • structures • overcoming • procedures resistance to change • self-leadership 9
  • 10. Culture Traditional RapidLeanSixSigma • Authoritarian • Participative • No risk-taking • Encourage change • Fear of job loss • Job security • Status quo • Continuous improvement • Systems policies • Policies that inspire people to want continuous improvement • “Beat on” supplier • Work with supplier • Distant from customers • Close to customers • Few people trained in basic tools • Everyone trained in basic tools 10
  • 11. Example: Anchor to Culture Customer Satisfaction Pride in Continuous Improvement Teamwork Empowerment Employee Engagement Communication 11
  • 12. Leaders Make-It-Happen Lean Six Sigma provides the tools and techniques for making decisions and solving problems - fast. An organization’s early success will be realized through engaged employees using an empowered approach for “Rapid” process improvement. Leaders “Make-It-Happen” 12
  • 13. Apparent Roles Attitude Structure Systems Less Apparent Beliefs Informal Communication Attitude Motivation and Commitment 13
  • 14. Keeping it Simple Adds Value or Non-Value Added Simplicity is the new complexity. 14
  • 15. For Consideration  Efficient: “Do things right.” (Management)  Effective: “Do the right things.” (Leadership) 15
  • 16. Essential Skills Building Trust Managing Relationships Communicating Effectively 16
  • 17. UN - LEARNING . . . the real challenge today is unlearning, which is much harder. Each of us has a “mental model” that we’ve used to make sense of the world. But the new world of business behaves differently from the world in which we grew up. Before any of us can learn new things, we have to make our current assumptions explicit and find ways to challenge them. John Seely Brown Chief Scientist, Xerox Corp Palo Alto, California 17
  • 18. The Knowing Doing Gap It's doing, not knowing, that makes the difference. 18
  • 19. Orientation Fixing problems, Not - fixing blame. “We are in a new economic age. We can no longer live with commonly accepted levels of delays, mistakes, defective materials and defective workmanship.” Dr. W. Edwards Deming 19
  • 20. Leader’s Role Stay involved, Actively support, Train, Communicate, Motivate, and Model the Way. 20
  • 21. Leadership Key Deliverables Increased Higher Levels Efficiency of Performance 21
  • 22. Example: Targets Cost Reduction (improved profitability) Continuous Improvement Workforce Engagement Speed and Simplicity 22
  • 23. About Change  90% of all organizations have attempted some form of large scale business change  75% of these attempts fail Fortune Magazine 23
  • 24. Leadership Drives Change Management 24
  • 25. Leading in a RapidLeanSixSigma Environment  Build a Shared Vision  Create a Guiding Coalition  Empower Broad-Based Action  Generate Short-Term Wins  Communicate the Vision  Anchor RapidLeanSixSigma in the Culture 25
  • 26. “Big Picture”  Active, executive-level leadership.  Need highly visible (transparent) process.  People need to be “released.”  Each of us must find our own way. 26
  • 27. “The Journey” Vision Lean Six Sigma TO BE Where we Step 1 Analyze the Gap: Review the differences are today? between where you are and where you intend to be. Step 2 Plan the Route: Decide actions to progress AS IS from present state to future state. Step 3 Lead the Journey: Provide resources, support, train, and model the way. 27
  • 28. “Emotional Rollercoaster” To Be Performance Acceptance Trigger Growth Fear Denial Event Anger Learning As Is Break Through Phase 1 Phase 2 Phase 3 28
  • 29. Transition as a Continuous and Accelerating Process - as soon as the “Improved State” is achieved, make it the new “Current State.” Improved State R Transition State A T Current State E Improved State O Transition State F Current State C Improved State H A Transition State N G Current State E TIME 29
  • 30. Same Direction Clarity Consistency Commitment Clarity Consistency Commitment 30
  • 31. Caution Stay away from ineffective and “backward focused” questions. Use “effective questions” that are “forward focused.” 31
  • 32. Keys to Implementation 1. Keep Leaders Involved 2. Align Lean Six Sigma implementation to Business Strategy and Priorities 3. Keep Message Simple and Clear 4. Position as Improved Competitiveness and World Class 5. Focus on Short-Term Results 6. Focus on Long-Term Growth and Development 7. Make Learning an Ongoing Activity 32
  • 33. Steps to Action Action Commitment Understanding Information 33
  • 34. For Discussion Compliance Commitment Training Learning Short Term Long Term External Internal Safety Risk-taking Predictability Ambiguity Control Order 34
  • 35. 8th Waste Workers Who Are Engaged 26%-55%-19%  26% engaged (loyal and productive)  55% not engaged (just putting in time)  19% actively disengaged (unhappy and spreading their discontent) Source: “The leadership kit: Leadership is confusing as hell” Fast Company Magazine 35
  • 36. Behaviors that Get Results “Coaching” involves letting people know what to do, how to do it, when to do it and then measuring behavior. “Supporting” involves listening to people, providing support and encouragement for their efforts, and then facilitating their involvement in problem- solving and decision making. 36
  • 37. 37
  • 38. Anticipating and Preparing for Change Despite Current Success  In this fast moving world, product life cycles are shorter than in the past. Consider some of the business processes, product, or strategies - graph where each of these might presently be on the first curve (shown below).  Reflect on the significance of where you have placed your mark on the first sigmoid curve immediately above, be it in reference to your career, your group’s product or service, and so on. What steps do you need to consider taking so that you can prepare for the second curve, without prematurely leaving your current success (on the first curve) behind?  How can you use the concept of the sigmoid curve to help ensure your success as a leader? What changing demands are being made of leaders in your organization, and how can you adapt your thinking and approach to meet these leadership demands?  Source: The Sigmoid Curve: 38
  • 39. Growth Decline Life Cycle Start Business CHANGE Out of Business 39
  • 40. Quantum improvements come not from simply working harder or smarter at the same old things, but from figuring out how to eliminate the need to do the same old things. 40
  • 41. Freedom to Choose Events Freedom to Choose Outcome Events + Response = Outcome and Learning 41
  • 42. For Discussion I don't have to attend every argument I'm invited to. Don’t believe everything you think. Source unknown 42
  • 45. Tracking System Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Coaching/ Training Booster Month Communication Campaign Coaching Promotion Evaluation Follow-up Continuous Improvement Training Master Plan 45
  • 47. ORID  Objective Level Questions  Invites inclusive participation  Gets out the facts and objective data  Reflective Questions  Acknowledges emotions and initial associations  Invites participants to use their imagination  Interpretive Questions  Builds shared awareness within the group  Identifies available options and possibilities  Decisional Questions  Draws out deeper meaning  Makes conversation relevant to the future  Exposes group choice  Closing: To confirm the group’s resolve 47
  • 50. VISION Through teamwork, be the best in our business. VALUES • Teamwork • Honesty • Integrity • Respect • Opportunity • Urgency Culture Create an environment that To satisfy our customers, inspires people to work at which processes must To achieve our vision, how together, engages our we excel? must our organization learn employees in continuous and improve? learning, and allows everyone to excel. Internal Processes Financial Develop and execute Improve profit significantly innovative processes which year over year. allow us to exceed customer expectations. To achieve our vision, how Customer When we succeed, how must we look to our customers? Deliver best value will we look to our stakeholders? static control components 50
  • 51. VISION Through teamwork, be the best in our business. VALUES • Teamwork • Honesty • Integrity • Respect • Opportunity • Urgency CULTURE INTERNAL PROCESSES CUSTOMER FINANCIAL Create an environment that Deliver best value . Improve profit significantly year inspires people to work together, Develop and execute innovative over year. engages our employees in processes which allow us to exceed • We must provide the best products and • We must maximize total overall continuous learning, and allows customer expectations. services as determined by our performance of each of our everyone to excel. customers: businesses: •We must manage our manufacturing - Reliability - Profitable Revenue Growth • We must pursue outstanding leadership strategy to deliver Lean products on - Product Performance - Material Costs at all levels of the organization. time, at competitive costs. - Product Features - Operating Efficiency • We must maximize the power of •We must continually improve - Product and Part Delivery - Warranty Costs diversity. business links with suppliers and - Period Yield • We must promote the safety of our customers. - Asset Management people. • We must ensure accurate and timely communication about the business. • We must ensure that our people have the appropriate skill, knowledge, and competencies. • We must meet or exceed the environmental requirements for our facilities. • We must institutionalize Principles of Lean to drive continuous improvement throughout the value chain. Results Results Results 51
  • 52. Initial Steps Might look like this. (1 of 2)  Generate executive leadership interest in transformation  Conduct Transformation Overview executive briefing  Decide to move forward with Transformation implementation  Conduct Transformation training to Centers of Influence  Select the first cluster of business for Transformation 52
  • 53. Initial Steps Might look like this (2)  Identify training requirements  Conduct training  Make second assessment of implementation  Make decision to expand the initiative  Revise Transformation deployment Schedule  Integrate lessons learned into strategy 53
  • 54. “Rapid” Recognition Use existing awards and recognition program. Develop additional incentives such as certificates of appreciation. Publicize success stories, initiatives, and results. Recognize individuals and teams. 54