What Is Quality


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General discussion on quality
Technologies of business quality programs
Technology is never about the technology, but rather it’s about the relationships involved
Tying quality efforts to strategic planning
Business Structures to encourage quality
What type of leadership is causing quality programs to fall short of their potential?

Published in: Technology, Business
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What Is Quality

  1. 1. What is Quality? or, Search for the “Holy Grail” “In the next century, a company will stand or fall on its values” Robert Haas, CEO Levi Strauss Lecture Series by Jim Maginnis Organizational Kinetics Copyright 2001 - 2009 1
  2. 2. General Agenda  General discussion on quality  Technologies of business quality programs  Technology is never about the technology, but rather it‟s about the relationships involved  Tying quality efforts to strategic planning  Business Structures to encourage quality  What type of leadership is causing quality programs to fall short of their potential? 2
  3. 3. Table of Contents: Quality…  …in thought, education, government, software, service, data, ethics, and culture (Lecture 1 of 6)  …in self-reflection, encouragement, double- loop learning, vision, and change (Lecture 2 of 6)  …in risk assessment, process metrics, project management, and problem definition (Lecture 3 of 6) 3
  4. 4. Table of Contents: Quality…  …in a system development life cycle, architecture, team building, and release (Lecture 4 of 6)  …in control tools, quality assurance, process reengineering and management (Lecture 5 of 6)  …in integrity, business strategy, leadership, and organizational kinetics (Lecture 6 of 6) 4
  5. 5. What is Quality? … in thought, education, government, software, service, data, ethics, and culture It is difficult to sustain honest leadership in a corrupt culture or corrupt leadership in a honest culture. Lecture 1 of 6 by Jim Maginnis Copyright 2001 - 2006 Table of Contents 5
  6. 6. Discussion on Quality: What Is Quality In Thought And Statement?  Unity, authority, organization, engaging, vividness, economy, sensitivity, clarity, emphasis, flow, suspense, brilliance, precision, proportion, depth, and so on… – Unity can be improved with an outline – Authority can be improved with footnotes and references to seriously reviewed sources – Etc…  Pirsig‟s Metaphysics of Quality 6
  7. 7. For Example, What Is A Quality Introduction And Conclusion?  Introduction – Grab interest and inspire the reader – Provide paper thesis, purpose, or message – Problem description, alternatives, and solution – Sell the author as the best person for delivery  Conclusion – Restate thesis – Summary of key lessons learned 7
  8. 8. Quality Writing Is A Process  Develop and track efficient work habits – Project journal should include all references  Identify the audience and resources  Clarify in your mind what you want to say – Storyboarding uses a sequence of images  Begin with an abstract, intro, and outline  Flesh out the outline (keep asking why)  Have others read and critique the work  Write each chapter, repeating the above 8
  9. 9. What is Plagiarism?  Taking credit for the words / work of another  Quoting someone‟s entire paper is no better  Summarizing/paraphrasing still not original  Many say that without a Doctorate, though, one is not capable of an original thought, but – Percy Spencer held 225 patents, including for the microwave, with only a third grade education – HP and Atari turned Jobs/Wozniak away without college educations, so they started Apple Comp. – Dropouts started Microsoft, Dell, Oracle, Honda 9
  10. 10. By what measure does something get into a museum?  By its excellence – ---------------- It‟s the Best! No! It‟s the First Quality is first about being unorthodox  It is when we allow an individual, in fact, to redefine quality for the majority. An item makes it into a museum for its historical significance in changing our perspective.  Einstein was rejected by every instructor through college, ending up a patent clerk 10
  11. 11. NOT All Opinions Are Valid! Hypotheses or Check with Valid Opinion Intelligent hunch IPO Analysis and Action (Input) (Processing) (Quality Output) Textbook All questions Theory and Controlled Critical Thinking means are “valid” Experiences identifying assumptions, issues, and criteria for “Wishful Thinking” judgment for making or “Blowing Smoke” sound conclusions “Peacock” or “Weasel” 11 from the evidence.
  12. 12. Social Critical Theory  Aimed toward critiquing and changing society by relating the parts of society to its whole just as Copernicus revolutionized astronomy by taking into account the position of the observer  Derived from Kant‟s (1700s) arguments for the use of synthetic reasoning, “thoughts without content are empty, and intuitions without concepts are blind” as well as Marx (1800s), “philosophers have only interpreted the world in certain ways; the point is to change it.” 12 Quality is being an effective change agent
  13. 13. How is Murphy‟s Rule involved?  First: “If there is any way to do it wrong, some sod will do it.” or “The universal aptitude for ineptitude makes any human accomplishment an incredible miracle.”  People always refuse the right answers  Mutated: “It‟s not my fault, predictably bad things can‟t be planned for” was written by Larry Niven. This mimetic drift clearly demonstrates Murphy's Law acting on itself!  Corollary: Any system which depends on human reliability is inherently unreliable. 13
  14. 14. Instead, Management by Fact  Companies are moving away from relativistic management by opinion or a “soft” science – where only subjective “feelings” define truth » “I know it in my gut!” is the worst reasoning! » Failure seen only in terms of extenuating circumstances  Firms are “teaming” to collect and use hard numbers to achieve desired achievements – Establish baseline and target, calculate gap, find problems, develop and implement a improvement process, track with ~6 key metrics and adjust 14
  15. 15. Management by Fact (cont)  Starts with the establishment of a vision with objectives and appropriate measures.  And, industry and customer quality standards  Reduce errors & patching and upgrade time  Identify & answer critical business questions  Key aspect of Total Quality Management  Tools include Oracle‟s E-Business Suite (http://www.oracle.com) and the Balanced Scorecard (http://www.bscol.com). 15
  16. 16. America‟s Dark Legacy  The Alien and Sedition Acts of 1798  “The only good Indian is a dead Indian”  Economy based on horrific slave treatment  Suspension of habeas corpus in Civil War  Banning Chinese immigration 1882-1968  Kidnapping & internment camps in WWII  Blacklisting witch hunt in the McCarthy era  Harassment of Martin Luther King, Jr. et al  Corruption of law enforcement and education 16
  17. 17. Governmental Corruption  Excludes the poor  Marginalizes the middle classes  Destroys the base of natural resources  Weakens the economy The public continues to be apathetic about crime and misconduct as long as it is contained. Successful reform must thusly be directed at enhancing the national culture. 17
  18. 18. Solution Characteristics  Locally empowered actions must cover both the public and private sectors with systems of investigation, prosecution, and education  Oversight of elected and non-elected officials  Sources must be addressed by long-term Societal, Holistic, and Networked Strategy  Powerful auditing organizations backed by specialized anti-corruption legislation  Citizen participation with free & open press 18
  19. 19. Problems Solutions Immediatism Long-term policies that incorporate short and medium term results Sectoralism Integral, holistic policies and programs with information territorial approach Bureaucratism Networked, ends-oriented, problem-solving, and opportunity seeking orientation Governmentism Leadership of government, civil society, through consultative, participatory, partnership seeking, networked approach Corruption 100% transparency and 0% tolerance for corruption Lack of Combine traditional and non-traditional Resources resources 19
  20. 20. What‟s Wrong With Education?  World‟s worst for 3 R‟s but #1 in self-esteem  The greatest correlation is with teachers! – Student scores vary more than 20% by changing teachers – 2-6 times as by grade, school, or district – Typical teacher is an academic underachiever from bottom third of test scores and can‟t pass GED, ETS Math test, or Mass. Educator Certification – 16th highest paid profession (CNN: “Best Job”)  People refuse to see that quality is measurable, that the problem lies inside the room, and the 20 world cannot be divided by “us and them”
  21. 21. How To Get Better Teachers  Milken Teacher Advancement Program (TAP) – Performance-based accountability and merit pay based on long-term student progress – Professional growth with evaluated teaching – Multiple career paths (associate, mentor, master) – Market-driven compensation (e.g.: more for math) – Expanded supply of high quality teachers  9 states (30% of students) have TAP initiatives – Arizona, South Carolina, Colorado, Florida, Georgia, Michigan, Pennsylvania, Texas, Virginia 21
  22. 22. Good Teacher Causal Predictors  Coursework and certification in subject area  Prestige of degree institution and advanced degrees, especially for secondary schools  Pedagogical coursework, but ONLY when coupled with advanced content knowledge  High literacy and verbal test scores  But, NOT the National Teachers Exam!  NO value in the national teacher certification! 22
  23. 23. What Is Quality?  “A Degree of Excellence” (Webster‟s Dictionary)  Better => The fitness for use, The ability to meet intended customer expectations and produce customer successes With increasing efficiency, and The viral cultivation of quality in all involved 23
  24. 24. Quality Discussion Summary  A constant despite no consensus on how to describe it or which paths will best achieve it  Requires originality, change, and accountability which requires that dissention be encouraged  Good objective & subjective metrics come from matching internal freedoms & external controls where everybody leads, is responsible, and acts.  Quality is systemic - not heroes and villains  Modeling integrity with “walking the talk”  Long term results are more important 24
  25. 25. The Value of Quality  The Malcolm Baldrige National Award is given by the President to organizations judged to be outstanding in seven areas: leadership, strategic planning, customer and market focus, information and analysis, human resource focus, process management, and business results.  From 1995 through 1999, winners of the Malcolm Baldrige Quality Award outperformed the S&P 500 by 6.5 to 1 25
  26. 26. Key Areas of Quality Concern  Software  Customer Service  Data  Internet Web Production Environment Where All Three Are Combined Presented concepts are just as useful for governmental and community groups. 26
  27. 27. Aspects of Software Quality  Flexible: Continuously Evolving  Reusable: Optimal Code Productivity  Maintainable: Able to Be Quickly Repaired  Integration: Couple Products Together Easily  Scalable: able to handle large loads  Consistency: Rapid Learning and Use  Usable: Optimal User Productivity  Reliable: Maximizes System Productivity  Functional: Able to Produce 27
  28. 28. Aspects of Service Quality  Timeliness: Customer Waiting  Completeness: Customer Gets All Asked for  Courtesy: Treatment by Employees  Consistency: Same Level of Service for All  Accessibility and Convenience  Accuracy: Performed Right Every Time  Responsiveness: Reactions to the Unusual 28
  29. 29. Aspects of Data Quality  Timeliness: Quick to Acquire and Provide  Integrity: Appropriate and Secure  Accuracy: Regular Consistency Checks  Completeness: All the Customer Needs  Duplications: Regularly “Cleaned” Data (on both the front and back ends) 29
  30. 30. Ethical Issues Framework – Privacy – Property » Collection, storage, » Ownership and value and dissemination of of information and information about intellectual property individuals – Accuracy – Accessibility » Authenticity, fidelity, » Right to access and accuracy of information as well as information collected appropriate barriers and processed (e.g. fees) to access it 30
  31. 31. Characterizations of Quality  Producer and user perspectives  Teams and Quality Management Principles  Change Management and grabbing their hearts  ISO 9001 and Six Sigma statistics processes  Key Financial, Product, Customer Satisfaction, and Process Metrics => Metrics Action Team  Process Control Tools: Root-cause, Fishbone  SDLC Development models and methods  Completing business context and real testing  A competitive weapon and company “glue” 31
  32. 32. Perspectives on Quality The Meaning of Quality Producer's User's Perspective Perspective Quality of Quality of Conformance Design Production ----------------- ----------------- Marketing Work Process Sturdy, Easy Cost to Use, Price Product Fitness 32
  33. 33. Team vs. Workgroup  Japanese companies have successfully been using quality circles while no one has in U.S. – Quality Circles need to be Workgroup based  Most 12-step programs fail within a church – 12-step is a Team based organizational process  Work Groups have “Bosses” that lead  Teams are based on equal participants that are guided by a pre-agreed Team Charter 33
  34. 34. What is a Team Charter?  A team charter is a critical defining method for spelling out and gaining consensus on the role and responsibilities of all team members  Cannot be created after the culture develops  Problem Statement, Project Mission and Scope, Business Case, Values, Resources, Customers, Deliverables, Success Metrics, Key Milestones, Team Member Expertise and Commitments plus Expectations and Consequences, and Communication Plan 34
  35. 35. Team Success Causal Predictors  Well Defined Structural Elements – Shared team vision and management – Clear and agreed agenda and roles – Conflict Management Strategy spelled out  Positive Interdependent Behaviors – Group encouragement of innovation and diversity – Effective collaboration and decision making » Information and help is freely shared » All team members are equally responsible – Effective time management during all meetings 35
  36. 36. Start by Examining the Processes Process Quality Framework = “Best Practices” – Process Definition and Modeling » ISO 9000:2001 and SEI CMM models » OPEN and Rational Unified Processes (RUP) » IDEAL, Bellcore TR-179, and SPICE methods » Bootstrap, Healthcheck, Trillium, GQM, and Tick-IT » Function, Behavior, Organization, and Information – Assessments (Benchmarking & Data Analysis) – Process Improvement Programs – Continuous Measurable Improvement (CMI) 36
  37. 37. Quality Management Principles  Customer Focus: Meeting customer needs with an aim of enhancing their satisfaction (more importantly, though, their successes)  Leadership: Sound leadership skills must be demonstrated within the organization.  Involvement of People: People are the most valuable resource, and thus should be party to all decisions and activities. The more important the information, the more people that should see it (right to know). 37
  38. 38. Quality Management Principles  A Process Approach: An object-oriented management outlook of the business as a system of processes and interactions, based on some sort of iterative plan-do-study-act cycle approach.  A Systems Approach: A holistic awareness of the systems in place and relationships will enhance products and services as well as the satisfaction of internal and external customers. 38
  39. 39. Quality Management Principles  Continual Improvement: By knowing what the organization does and how well, one can identify ways to continually improve both the systems and their processes.  A Factual Approach: Business performance and the quality of products and services are best improved by the analysis of data, internal audits, and management reviews. 39
  40. 40. Quality Management Principles  Mutually Beneficial Supplier Relationships: Sharing organizational and customer needs with suppliers to gain in terms of decreased costs and improved performance.  These principles are intended to… – Provide a clear statement in a business framework – Provide management an understanding of benefits – Provide an understanding that will facilitate a successful culture for the ISO9001 standards 40
  41. 41. What is Change Management?  Mapping cultural to technology changes  73% of CEOs see cultural factors as most key  Requires flexible, iterative, dedicated, well- funded processes with full executive support  Human Capital Perf. Management (HCP) is results driven to better employ, deploy, develop, evaluate, and integrate a workforce  Focuses on how things are done rather than just what is done using Balanced Scorecards 41
  42. 42. The Change Wheel identifies critical success factors that will facilitate program success 42 (From http://www.army.mil/aeioo/docs/TM_Strategy.pdf)
  43. 43. 43 (From http://www.eitoolkit.com/)
  44. 44. Organizational Culture Unwritten Expectations, Values, Norms  Core attitudes, values, Rules, Policies, Core Beliefs & Assumptions Language and and Slogans Behaviors and behavioral norms Stories, Legends, Control Systems collectively valued by and Heroes Symbols organizational members Rites, Rituals, and Ceremonies and Artifacts – Rituals, rites, ceremonies – Stories, legends, heroes Language – Rules, policies, slogans Rituals Customs – Language and behaviors Organization – Control systems – Symbols and artifacts Legends Values 44
  45. 45. Translating Core Characteristics  Language Metaphor, jargon, and communication styles  Customs Standard practices and norms  Values Guiding principles, mission statements, and philosophy  Legends Founder stories and critical incidents  Rituals Annual award presentations and promotion ceremonies 45
  46. 46. Culture Effectiveness Continuum (Banner & Gagne) Ineffective  Reactive: Meet challenges with action; always struggling to keep up  Responsive: Good in stable environment, but not in dynamic one  Proactive: Analytical, anticipating emerging trends and always adapting  Interactive: Vision based, functions as a whole, focuses on connectedness Effective  Inspired: Goes beyond constraints 46 (From http://www.neiu.edu/~aserafin/421/SchoolCulture/)
  47. 47. Organizational Socialization  Formal – Orientation Programs – New Employee Training – Employee Handbook – Job Rotation  Informal – On-the-job Training – Supervisor/Coworkers  Mentoring – Experiences – Career Functions – Word-of-mouth – Psychosocial Functions 47
  48. 48. Organizational Psychology  All organizations exhibit psycho-pathology – St. John‟s Syndrome and Koinonitis – Manic and Manic-Depression (Bi-polar) » Grandiose plans, sense of invincibility » Respond with structure and performance plans – Schizophrenia » Need to define mission and better time management – Common Paranoia » Even successful intervention will make you unpopular – Narcissistic, megalomaniacal, and theomanic 48 Cohen and Cohen, The Paranoid Corporation
  49. 49. Organizational “Shrink”  Any organization that does not perceive its own pathology, will destroy itself – Refuses to see internal problems and then projects troubles on external sources  Mental health starts with consciousness – Serge and others top management consultants refer to this as “presence” – Determine if the current solutions have been coerced 49
  50. 50. Stick to Coaching and Not Therapy  Do‟s (focus on future and goals) – Develop a balance by clarifying core values – Help set better and more meaningful goals – Encourage and provide the tools, support, and structure for people to do more on their own  Don‟t (focus on past or present) – Don‟t work on “issues” or delve into the past – Don‟t try to change personality structures – Don‟t try to make better any psychic pain, anxiety, depression, or sexual dysfunction 50
  51. 51. Defuse Anger and Agree  Plan Ahead: your bottom line, their substitute, everyone‟s interests, and possible outcomes – Let your secret Plan-B dictate your Plan-A  Emotional control and reduce tension  Persuade by focusing on interests, not positions  Consider Authoritative, Righteous, Win-win, and Relationship-building options…  With both distributive and integrative solutions 51
  52. 52. Negotiating with a Narcissist  Repeatedly find agreements, even the weather, and get closure (confirm and leave a topic)  Sitting is better than standing for being calm  Never validate their self-destructive delusions  Avoid trying to disprove their perceptions  Be assertive and keep positive: never say, “No”  No hedging or dilution: no, “I feel awful, but”  Ask questions that include their cooperation 52
  53. 53. Handling the Neurotic  All organizations exhibit neuroses – Conspicuous consumption – Constant need to check on employees – Shoot the messenger  Complaining never works as it just makes them more neurotic. Better to overload them with unimportant information and kindness – Prevalent depression → well-being attacked – Denial → meet with one-on-one mirroring – Compulsive → meet with best failure awards 53 – Post-trauma → “distraction therapy”
  54. 54. Negotiating with a Personality Disorder  Rigid & adversarial relationship perspectives – Chronic inner distress (fear of abandonment) causes excessive need for controlling others – Experts at blaming others (rather than self) – Lying is often justified to an ends or revenge, likely to call others statements into question, with an intensity likely to fool the naive person  Seeks jobs as councilor, teacher, cop, religious authority, as well as organizational leadership  Only motivated by his own personal reasons 54
  55. 55. P. A. S. S. Emotional Needs  Power: often by the “power of the purse”  Affiliation: identity that is different from how they see themselves today  Status: need to feel important and visible  Security: they will be safe  In general, Personality Disorders are more focused, better organized, and with superior social skills (due to need to control others); so, they‟ll win head to head, being smarter 55
  56. 56. Handling the Personality Disorder  Reduce anxiety (esp. fear of abandonment)  Calmly maintain control of conversation  Slow down, talk slowly, brainstorm solutions, to keep the conversation simple and focused  Encourage them to be part of the solution to support their feeling of maintaining control  Show how giving up can be winning control by identifying their particular strengths  Bipolar are the most difficult to predict 56
  57. 57. Types of Personality Disorders  Borderline Personality Disorder: wide mood swings, rage, idealization and devaluation  Narcissistic Personality Disorder: feels superior and entitled to special treatment  Histrionic Personality Disorder: needs chaos  Anti-social Personality Disorder: disregard for societal rules with very little empathy  Dependent Personality Disorder: preoccupied with helplessness and passivity 57
  58. 58. Negotiating with a “Normal”  30% are Neurotic (blaming themselves), 15% Personality Disorder (blaming others)  45% are not primarily motivated by their repressed fears and emotions, but still have a strong emotional content to decision making  What to say when a customer is wrong? “You’re right! ...and there are many people who feel the same way. From years of experience, [NO however] I’ve found that in fact (insert the truth)... etc.” 58
  59. 59. Proxemics and First Impressions  Humans (& animals) make territorial claims – Walking behind a desk can be very invasive – Americans are especially space conscious  Malcolm Gladwell‟s book, Blink, showed how critical is our 5-second first impression – When a new prospect finds your web site, you have five seconds to convince them to stay – People enjoy being right, so they will continue on a poor, but immediately attractive, web site 59
  60. 60. Discussion Question How is performance currently being measured and data collected in your organization? How is success measured and/or quality defined? Does your organization tend to fix with short-term patches or fully diagnose? Is it more neurotic (blaming employees) or PD (blaming others)? What type of cultural changes might be required for a new perspective on quality? 60
  61. 61. 10-Minute Break… Question: What do you get what you cross an instructor with a spud? Answer: A Facili-Tator 61
  62. 62. What is Quality? … in self-reflection, encouragement, double-loop learning, vision, and change Change agents create fit products with increasing efficiency while cultivating excellence in all involved. Lecture 2 of 6 by Jim Maginnis Copyright 2001 - 2006 Table of Contents 62
  63. 63.  “Today‟s illiterate are not be those who cannot read or write, but those who cannot learn, unlearn, and relearn.” --Alvin Toffler  “It is not the strongest or most intelligent of the species that survive, but the one most responsive to change.” --Charles Darwin  “Willingness to change is a strength, even if it means plunging part of the company into total confusion for awhile.” --Jack Welch, GE  “It is the change agent‟s duty to prepare the organization for change. So, he or she must be able to take the pulse of the organization to assess readiness.” --Dr. Richard Bryteson 63
  64. 64. Self-reflection and Differentiation  Fahrenheit 451‟s solution was to remember, build mirrors, and contemplate for a year  Six-Sigma helps identify, develop, & nurture effective and efficient internal change agents  Members should first reassess effectiveness of their individual coping strategies  Motivation to change (“unfreezing”) comes usually from growing anxiety with reduced blaming (hitting “bottom” and surviving) 64
  65. 65. The Successful Professional is…  Motivated, strong work ethic, feels accountable  Flexible, creative, and open minded  Intelligent, w/ common sense (“street smarts”)  Able to shift to organizational ecology as focus  Open to peer supervision  Likely to volunteer to be trained  Willing to modify policies & dedicate resources  Ability to take the “lead” in decision making 65
  66. 66. Personal Pareto Analysis (80% of results comes from 20% of work)  Know what is important to boss and customer  Prioritized H/M/L to-do list that all agree on  Uninterrupted time for correspondence  Personal brainstorming when most alert  Consensus on performance goals with boss  Organized office & calendar, ready for fires  PERT chart for all projects  Delegate, Listen, and Network well  Daily exercise, alone, friends, and good sleep 66
  67. 67. Change Agents  We can all be agents of change “The process of – Change-agent skills are as unleashing important to our success as our expertise to implement professional discipline skills organizational – The purpose of our jobs is to change change what needs changing by for the purpose adding value each and every day of improving – Foresight, flexible, and responsive performance” (Swanson &  Competence maintains the system Holton, p. 260)  Expertise changes the system 67 Development
  68. 68. Preparing Others for Change  Change Readiness: It is the change agent‟s duty to prepare the group for change by conveying credible positive expectations as well as providing empathy and involvement  Building A Shared Vision: The participants in a change process must see what the pain and work of the change process will bring them – the change agent must build a vision with them and continually communicate it  Develop Political Power: Assess support 68
  69. 69. Sources of Power Strategies Individual Sources Power Strategies of Power Knowledge Knowledge Playing it Straight Others’ Others’ Support Using Social Support Networks Personality Getting Around Personality Formal System 69
  70. 70. Elizabeth Kubler-Ross Model Deal to skip: Detail benefits Sabotage: Acknowledge anger Blame game: Focus on root Shoot messenger: ID poor behavior cause Withdrawal: Focus on problem Owns solutions: Use as Coach Focus on benefits: Provide recognition Forget it: Review business case Apathy: Emphasize inevitability No Control: Stepwise w/ follow-up Rationalize: Allow to sink in Absenteeism: Reinforce positive (adapted from http://www.army.mil/aeioo/tm/) 70
  71. 71. All In A Day‟s Work  A structured approach to changing others begins with a planned mind-body focus to building personal intervention strategies – Stress management, relaxation therapy, etc 71
  72. 72. Kurt Lewin‟s Change Theory 72 Unfreezing Changing Refreezing
  73. 73. Three Steps of Successful Change  Kurt Lewin asserts that successful change requires unfreezing the status quo, changing to a new state, then refreezing the new change to make it permanent. Moving away from the equilibrium can be achieved in three ways: – The driving forces, which direct behavior away from the status quo, can be increased. – The restraining forces, which hinder movement away from the status quo, can be increased. – The two approaches can be combined. 73
  74. 74. Unfreeze – Break Frame of Reference  Create crisis to motivate people for change  Arouse dissatisfaction with the current state – Tell them about deficiencies in the organization – Expect instability as people lose old beliefs  Get people involved in decision making  Users may prefer to leave than endure – These feelings and attitudes need to be managed and understood 74
  75. 75. Unfreeze – Emotional Support  Insecurity, anger and self doubt part of user's perception of themselves, the new system and the changes being introduced  Build in rewards – Tie rewards to change/use recognition, status symbols, praise to get people to go along  Strengthen top executive support – Need to break down power centers 75
  76. 76. Change / New Ways to Work  Establish new beliefs and behaviours  Line management should provide the direction  Establish clear goals and timelines  Institute smaller, acceptable changes that reinforce and support the bigger picture – Procedures, job descriptions, reporting  Develop management structures for change – Plans, strategies, mechanisms that ensure change 76
  77. 77. Change – Second Stage  Begins when employees start to understand changes will benefit them and the company – Recognise and accept the whys and wherefores  Assistance is required at this stage – Assist line management in establishing change – involve users and introduce them to the system – dispel the myths and rumours – communicate to users how to use the system 77
  78. 78. Change Communication  Maintain open, two-way communication – What people don‟t know & understand is a problem  Communicate how it will effect people – Allay any unfounded fears users might have  Stop the “rumour mill” – Newsletters, mail, bulletins, meetings – Technicians must often deal with users‟ issues without understanding fully the broad business rationale 78
  79. 79. Refreeze – No Going Back!  When the new way to work has arrived  Celebrate “death” of the old system  Cannot assume „refreezing‟ is end of process or ever takes place  Further change must be anticipated….  Develop institutionalizing structures – Organizational appropriate retreats, technologies, and performance appraisals 79
  80. 80. Refreeze Support  Not sufficient to install / implement new system with or without enthusiasm of users  Need ongoing support and training for as long as it takes to become institutionalised  Build success experiences – Set and work towards targets for change  Reward desired behavior – reward behavior that reinforces changes – reward use of old system during interim 80
  81. 81. FORMAL (OVERT) ASPECTS • Goals • technology • structure • policies and procedures • products • financial resources INFORMAL (COVERT) ASPECTS • perceptions • attitudes • feelings • informal interactions • group norms • values • beliefs and assumptions 81
  82. 82. Organizational Culture Recap  It‟s like an Iceberg or an Onion – Little shows on the surface and under many layers  Lasting change requires new beliefs  Organizational Development (OD) aims to: – Deepen the sense of organizational purpose and strengthen interpersonal trust – Encourage problem solving rather than avoidance – Supplement formal authority with knowledge and skill based personal responsibility for change 82
  83. 83. Organizational Development (OD) avoids the usual “quick-fixes”  A long-term effort to improve visioning, empowerment, learning, problem-solving, and well-being using a collaborative management of the organization culture via interventions – Intergroup development – Process consultation – Sensitivity training – Survey feedback – Team building  Utilizing the consultant-facilitator role and 83 applied behavioral science, i.e. action research
  84. 84. Organizational Surveys  Identify perception discrepancies  Identify group‟s unique qualities – Discovery of organizational strengths – Dreaming of the future organization – Design of a common vision – Destiny for how to fulfill the dream Data Collection Feedback Develop Action Plans Employees Through group Feelings about the complete discussions, build organization are surveys to provide specific plans for summarized and information about overcoming problems problems in their shared with all are identified organization employees and developed 84
  85. 85. Other OD Change Activities  Inter-group confrontation: Each group lists its complaints about others as well as what are common complaints against itself  Process consultation: Feedback & coaching to help groups finds their own solutions  Organizational mirroring: Focal group gets feedback about how it is perceived  Role negotiation: negotiate an increase, decrease, or status quo in other‟s behaviors  Life and career building & Team building 85
  86. 86. 86
  87. 87. Creating a Learning Organization Einstein was once asked, “What is the most powerful force in the Universe?” He said, “Compound Interest.”  Outdated… – R & D as disengaged “Think Tank” – DoD Research (extra 7- 15 years to use research) – Incubators » Not About New Ideas 87
  88. 88. Technology Research Slowdown  Management still based on the Roman Army  Still using coal burning plants for additional electricity (such as for electric cars)  Car engines mostly unchanged for 140 years  E-mail basically unchanged in 30 years  Only one new programming language (Java)  Bell Research Labs was broken up  IBM now predominately a service company 88
  89. 89. Recursive Improvement Process  Important ideas (vision & strategy)  Champions and teams (passion)  Reliable sources for many smart people from many fields, simple processes, business models, human considerations, etc  Examples… (capture and iterate) – Video Games – by fervent gamers – Open Software Foundation – networks – XML – HTLM to perfection, but only iterative 89
  90. 90. Next = Past + Now New Ideas More New Ideas Tool 1 Tool 2 Product 1 Product 2 Product 3 Every product development must include tool development 90
  91. 91. How is This Realized?  Networked improvement community  Recursive and persistent  Comprehensive (products, ethics, quality…)  Systematic (A-Task; B-Improve A; C- Improve B to Improve A)  Research efforts should become increasingly networked and open, creative, persistent, comprehensive, and systematic to enable endless technology revolutions 91
  92. 92. Creating a Vision  Discern & describe group‟s core ideologies – What are the core values that inform members what is important in the organization? – What is the organization‟s core purpose or reason for being?  Construct the Envisioned Future – What are the bold and valued outcomes? – What is the desired future state? 92
  93. 93. Change Management  Practice of ensuring that all changes are done in a planned and authorized manner – Incident identification, corrective measures for problem, RFC research, infrastructure execution  Ensuring that there is a business reason (or business rule) behind each change  Plans and tests each and every change  Creates a back-out plan should the change result in an unexpected state 93
  94. 94. Authorization and Planning RFC Request for change Change Manager medium major minor Change Advisory Executive Board (CAB) Committee CAB Meeting Authorization 94
  95. 95. The Change Management Process Implement Manage RFC Preparation Categorise Prioritise Refusal Authorise Build Plan CAB Approve Test Release Refusal Backout Implementation Review 95
  96. 96. Feasibility Analysis Economic Organizational Feasibility Feasibility Can we afford it? Is it a good fit? Technical Operational Feasibility Feasibility Does the Will it be accepted? capability exist? 96
  97. 97. Six Forces For Change  Workforce is more culturally diverse and many employees are lacking in basic skills  Technology is replacing narrow, routine tasks with those requiring team, multi-tasking efforts  Economic Shocks include the Asian real estate collapse and Russian devaluation of the ruble  Competition is more global, involves more mergers, and includes more Internet commerce  Social Trends include delaying marriage, anti- smoking attitudes, and the popularity of SUVs  World Politics include U.S. embargo of Lybia, 97 Soviet collapse, and Black rule in South Africa
  98. 98. Managing Planned Change Goals of Planned Change: Improving the ability of the organization to adapt to changes in its environment. Changing the behavior of individuals and groups in the organization. 98
  99. 99. The Effective Change Manager  Anticipates the need for change – Rather than reacting to emergencies  Diagnoses the nature of needed change  Makes tough choices of alternatives – Rather than taking the fastest exit  Manages the change process – Making it effective and efficient – Rather than lurching from one crisis to another 99
  100. 100. Change Management Activities Motivating Change Creating Vision Effective Developing Change Political Support Management Managing the Transition Decide metrics at commencement Sustaining associated with Momentum incentives 100
  101. 101. Action Research Process Steps:  A combination of research and 1. Diagnosis action involving data gathering, 2. Analysis feedback to the client group, 3. Feedback discussion, planning, and action 4. Action 5. Evaluation  Intentional and goal oriented  Linear and continuous Action research benefits:  Then, second-order,  Problem-focused rather multidimensional, than solution-centered  Heavy employee multilevel, radical, involvement reduces and discontinuous resistance to change 101
  102. 102. Managing the Transition  Activity Planning – What‟s the “roadmap” for change?  Commitment Planning – Who‟s support is needed, where do they stand, and how to influence their behavior?  Change-Management Structures – What‟s the appropriate arrangement of people and power to drive the change?  Sustain Momentum with support systems 102
  103. 103. Hard and Soft Problems UNBOUNDED PROBLEMS Messes Relationship and team building Organizational Development Models for Change Hard Systems Models for Change Project Difficulties management BOUNDED PROBLEMS Technical complexity 103
  104. 104. Who‟s Involved?  Sponsor – person who authorizes  Change Agent – who causes change  Target – Subject affected by the change  TQM and CMI  Re-engineering – Incremental – Quantum leaps in improvements performance – Bottom-up – Driven by Top participative Management decision making 104
  105. 105. Flexible Manufacturing Systems  Best used with… – High-tech, initiative, self-managing employees – Organizations that use organic structures, teams  Integration of computer-aided design, engineering, manufacturing to produce low- volume products at mass-production costs  Change happens by changing computer programs, not producing new parts – Pratt and Whitney produced 20 new models 105
  106. 106. What Can Be Changed?  Culture – underlying values and goals  Structure – authority relations, coordination mechanisms, and job design  Technology – processes, methods, tools, etc  Physical Setting – workplace space, layout  People – skills, expectations, behaviors Culture Structure Tech Physical People nology Setting 106
  107. 107. Learning… …is viewed as a transaction between the learner and the environment in which neither can be regarded as fixed… The target of education is “change and growth in the individual and his behavior.” Bradford, Human Forces in Teaching and Learning 107
  108. 108. Types of Changes  Anticipatory based on expected situations  Reactive in response to unexpected situations  Incremental course adjustments  Strategic that alter core shape or direction Establish a strategy Managing Redesign the Learning structure Reshape the culture 108
  109. 109. Change Perspectives  Tuning – Most common and least risky – Known as preventive maintenance and kaizen  Adaptation – Incremental changes that are in reaction to external problems, events, or pressures  Re-orientation – Also called frame bending (Nadler and Tushman)  Re-creation – Intense and risky, also called frame breaking 109
  110. 110. Reactions to Change  On the wrong track  Laughing it off  Growing self-doubt  Buy-in / constructive CHANGE direction 110
  111. 111. The Pugh OD Matrix Behavior Structure Context Org. Poor climate: Wrong structure: Wrong strategy: level Feedback survey Change structure Change strategy Lack of Poor Inter- Distance: Brings cooperation: coordination: group groups closer Role negotiation Improve liaison Poor team spirit: Unclear tasks: Poor resources: Group Team building Redesign work Change Tech- level exercises system nology or Staffing Poorly defined Poor HRM Individ Dissatisfaction: jobs: Job application: ual Counseling enrichment Improve HRM 111
  112. 112. Lewin‟s Force Field Analysis Driving Forces E Restraining Forces Q People pressing for U People variables change I resisting change L Structure pressing I Structure variables for change B resisting change Task variables R Task variables I pressing for change resisting change U Technology variables M Technology variables pressing for change resisting change 112
  113. 113. Why Do People Resist Change?  Surprise – threaten sense of balance  Inertia – desire to maintain predictability  Misunderstanding and lack of skills – seen negatively without remedial training  Sense of powerlessness – forced change can create anger and passive resistance  Lack of trust – when talk is often not walked  Fear of failure – people doubt their abilities 113
  114. 114. Why Resist Change? (cont)  Personality Conflicts – managers disliked by management are poor change conduits  Poor Timing – events can conspire to create resentment about a particular change  Lack of Tact – a lack of sensitivity to feelings can create resistance to change  Threat to Job Security  Conflict with social groups or other goals 114
  115. 115. Overcoming Resistance  Education and communication – to prevail over misinformation or poor communication  Participation and involvement – bringing those of opposition into the decision process  Facilitation and support – easing adjustment  Economic incentives – too often, however, this can only result in overpaid burnouts  Negotiation and agreement – exchanging something of value for less resistance 115
  116. 116. Overcoming Resistance (cont)  Manipulation and co-optation – distorting facts to make them appear more attractive  Explicit and implicit coercion – the use of direct threats or force upon resisters Overcoming Resistance to Change Education and Participation Communication Facilitation Negotiation and Support Manipulation Coercion and Cooptation 116
  117. 117. Advantages of Resistance  Forces management to check and recheck each and every proposal  Helps identify specific problem areas where change is more likely to cause difficulty  Gives management information about the intensity of employee emotions on the issues  Provides a means of release of emotions – which causes employees to think and talk more about the changes 117
  118. 118. Change Without Pain Easiest to adjust Knowledge Skills Recombine through training and development Demeanor Network Harder to adjust Recombine through coaching and counseling Aptitude Values Traits Largely fixed Recombine through addition and replacement 118
  119. 119. The Status Quo Learning Curve Unfreeze Phase Change Phase Refreeze Phase Productivity Time 119
  120. 120. The “Performance Dip”  Change naturally produces a performance dip – Chaos and creation go hand in hand  Managers must make it clear that mistakes are acceptable and avoid any kind of punishment for error in a learning environment – Best Failure Award (failing when doing it right)  Stakeholder management, training, feedback 120
  121. 121. [whatever]. A motivating 121 (From http://www.youroklahoma.com/coreoklahoma/change1.pdf)
  122. 122. Politics of Change  Impetus for change is likely to come from outside change agents  Internal change agents are most threatened by their loss of status in the organization  Long-time power holders tend to implement only incremental change  The outcomes of power struggles in the organization will determine the speed and quality of change 122
  123. 123. Change Commitment Model change is implemented during this phase (from http://www.army.mil/aeioo/tm/) 123
  124. 124. Helzberg‟s Theory of Motivation Recognition Responsibility Motivators Achievement Advancement Personal Growth Job Interest Norm of work output Involvement Salary/Incentive Working Conditions Company policy and administration Status Security Hygiene Fringe benefits Job title Factors Personal Relationships 124
  125. 125. McGregor‟s Theories of Motivation X-theory vs. Y-theory  Man dislikes work and  Work is necessary to will avoid it if he can psychological growth  Must be forced to put  People want to be out the right effort interested by work  One would rather be  People can seek and directed than accept accept responsibility responsibility  Self-discipline is more  Man is motivated by effective and severe anxiety about security  Men are motivated by  Most men have little hope to realise potential creativity - except for  Creativity is widely getting around rules! distributed & underused 125
  126. 126. Leadership Responsibilities Level of change Unfreezing Movement Individuals (skills, Reductions in Demonstrate new values and attitudes) numbers skills Training Focus New supervision Structure (pay/merit BPR, Business Changes in reward systems, reporting strategy, Metrics, systems, Systems relationships, work Experiential thinking, Reporting design) training relationships Climate or culture Value Statement, More trust and (openness, conflict Customer focus, openness, Feedback management, decision Feedback on database, Shared making) employees’ views vision, Top support 126
  127. 127. Just Like a 5-speed Transmission  1st Gear - Strategy – The “it”  2nd Gear - People – Who to do it  3rd Gear - Process – How to do it  4th Gear - Technology – With what to do it  5th Gear - Continuous Improvement – How to do it better 127
  128. 128. Discussion Question What is the difference between goal-driven and purpose-driven quality programs?  Goal-Driven  Purpose-Driven – To-do list of short- – To-be list of long- term tactics term core principles – Success defined by – Success defined by achieving goals staying on the path – Afterwards, – Never ending effort program is finished for improvements 128 Is one better? Or, both equally important?
  129. 129. 10-Minute Break… Question: What do you get what you cross an instructor with a spud? Answer: A Facili-Tator 129
  130. 130. What is Quality? … in risk, process metrics, project management, and problem definition Corollary to Murphy‟s Law: Any system which depends on human reliability is inherently unreliable. Lecture 3 of 6 by Jim Maginnis Copyright 2001 - 2006 Table of Contents 130
  131. 131. Info Tech Infrastructure Library  Common vocabulary: applied simultaneously with quality improvement methodologies – Service Delivery – Service Support – Implementation Planning – Security Management – Infrastructure Mgt. – Business Perspective – Application Management – Software Asset Management 131
  132. 132. MSF and MOF  Microsoft Solutions Framework – Established in 1991, revised in 1999 and 2003 – Software Dev. and Infrastructure Deployment – Such as: www.nasdaq.com and www.marriott.com MSF MSF for CMMI MSF for Agile Third-Party In-House Process Software Dev Offerings Customizations Improvement  Microsoft Operations Framework – Based on mature ITIL and PMI PMBOK – Established in 1999, updated 2002 – Concentrates on management of IT operations 132
  133. 133. Key Parts of MSF Team Model Process Model Quality Features Risk Management 133
  134. 134. Some MSF V4 Templates  Moved away from MS-branded methodologies – “White Label” approach to customization – Ivar Jacobson‟s Essential Unified Process (EUP) – Osellus‟s RUP and CMMI integrated IRIS – Avanade‟s Connected Methods – Conchango‟s Scrum templates – GotDotNet‟s BSDAgile – Cognizant‟s version of FDD 134
  135. 135. MS Operations Framework  Three Models: Process, Team, and Risk  Service Management Functions (SMFs) – Processes and policies across service solutions – Better alignment and scalability  “Adopt and adapt” – IT core business – IT cost allocation – Speed solutions 135
  136. 136. MOF Team Role Clusters 136 (from http://www.microsoft.com/technet/itsolutions/cits/mo/mof/mofeo.mspx)
  137. 137. Daily Build  Building the product into an executable form on a daily basis is…  A strong indicator that the team is functional  A way to make the product and its progress visible  The heartbeat of the development process 137
  138. 138. Ongoing Process of Testing Golden Release/RTM Release Release Candidates Release Readiness Zero-Bug Release Betas Stability Product Test Specification Scope Complete/Alpha Complete Internal Release n (Alpha, Pilot) Internal Release ... Internal Release 2 Project Plan Internal Release 1 Approved Test Plan 138
  139. 139. BrightWork Solutions and Tools  Leading provider for managing projects on the Windows SharePoint Services (WSS) – Issue, Task, Bus. & IT Project, Agile Software, and IT Work Managers & Solution Builder – VSTS for your engineering group, and… – SharePoint solutions for everyone else  Sam Guckenheimer‟s PowerPoint entitled “As simple as possible but no simpler” 139
  140. 140. Project Management Software  MS-Project  SureTrak Manager  CA-Super Project  Kidasa Milestone  Open Source – NetOffice Project – GNATT Project (open source) – ToDoList (open source) AbstractSpoon Software 140
  141. 141. Time Management  Really Action Management – Time is constant, but we choose our action plan – See Getting Thing Done by David Allen  Personal Information Management (PIM) 141
  142. 142. The Risk Management Process  Identify, analyze, plan, track, control, & learn 142
  143. 143. The Risk Management Mindset Identification Mitigation 2. Mitigation 2. “Java by Avoidance: Project skills not Project Use Visual Finish high Finish Basic (or by enough.” transfer: Out source) Risk 2 Risk 2 Risk 1 Risk 1 1. Mitigation by Conquest: 1. “May not Avoid / Delay, Demonstrate be possible to image super- superimpose Transfer, imposition (or images Project Accept, or Project by delay or by adequately.” tolerance) Start Tolerate Start 143 Adapted from Software Engineering: An Object-Oriented Perspective by Eric J. Braude (Wiley 2001)
  144. 144. Building a Risk Statement Asset Threat Vulnerability Mitigation What are you What are you How could the What is currently trying to protect? afraid of threat occur? reducing the happening? risk? Impact Probability What is the impact to the How likely is the threat given business? the controls? Well-Formed Risk Statement 144
  145. 145. Defining Roles / Responsibilities Executive Determine Sponsor acceptable risk “What's important?” Information Assess risks Define security Measure security Security Group requirements solutions “Prioritize risks” IT Group Design and build Operate and “Best control solution” security solutions support security solutions 145
  146. 146. Security Risk Mgt Process 4 Measuring 1 Assessing Program Risk Effectiveness 3 Implementing Controls 2 Conducting Decision Support 146
  147. 147. Why Use A Project Mgt Method?  Poor estimation of duration and costs  Inadequate planning of resources and activities  Lack of co-ordination of resources & activities  Lack of communication with interested parties, leading to unwanted products being delivered  Insufficient measurables and poor quality control, resulting in the delivery of products that are unacceptable or unusable  Lack of control over progress so that projects do not reveal their exact status until too late 147
  148. 148. What is PRINCE2?  PRojects IN Controlled Environments is a standard project management methodology to apply PM skills for a structured approach to release rollouts and service improvement 148
  149. 149. What is ISO 9001:2000?  Updated to align with ISO 14001, OHSAS 18001, and the Malcolm Baldridge criteria  Do we know what we did today well enough to be sure we can do it again tomorrow?  Can be as simple as a single creative page  Retaining only the information that shows activities are being satisfactorily carried out, independently audited, with Exec‟s invested 149
  150. 150. Computer-Supported Collaborative Learning (CSCL)  Help students effectively learn together – Assumes that “Learning begins with a problem to be solved rather than content to be mastered”  Communications and Collaboration Tools – eMail, Web, calendaring, chat, databases – Exchange, GoToMeeting, Domino, iMarkup, K2 – Still need face-to-face meetings Electronic Electronic Collaborative Work Communications Conferencing Management Tools Tools Tools 150
  151. 151. Capability Maturity Models  Capability maturity models (CMMs) – Carnegie Mellon‟s CMM – Capability Maturity Model Integration – ISO 15504, or SPICE (Software Process Improvement and Capability dEtermination)  About what to measure (KPAs in level 2) to ensure that we do it better tomorrow  Can be used with MOF to benchmark the capability of one‟s SMFs 151
  152. 152. Personal Software Process (PSP)  Basically CMM level 4/5 for an individual – Emphasizes learning by doing, past performance, defect reduction, estimation accuracy, motivation – Largely based on reviews at every stage via planning, development, and post mortems » Tracking problems, earned value: time, size of product – “Engineering Disciple,” not Cognitive Psychology  Team Software Process for group dynamics – Support structure with role definition & coaching » Team building, status meetings, post mortems, synergy 152
  153. 153. From CMM / PSP to Six Sigma  Six Sigma for company (vs individual or team)  While CMM /PSP focuses on the what, Six Sigma is about evaluating processes for … – how best to forecast and validate improvements, – who (anyone honest and can handle the math) – why (with CTQs from VOCs).  More externally focused (vs inwardly CMM)  Formal Configuration & Release Management 153
  154. 154. What is Six Sigma? LSL USL 6s s Standard deviation  A measure of business capability – Tightly controlled process » Six standard deviations (or sigma) between mean and nearest specification limit » Defect rate of 3.4 defects for every 1 million opportunities ORGANIZATIONAL TRADITIONAL SIX SIGMA ISSUE APPROACH APPROACH Problem resolution Fixing (symptoms) Preventing (causes) Behavior Reactive Proactive Decision Making Experience-based Data-based Process adjustment Tweaking Controlling Employee training If time permits Mandated Chain-of-command Hierarchy Empowered teams Direction Firefighting Benchmarking and Metrics 154
  155. 155. Why is Four Sigma Not Enough?  9 hours per year of unsafe drinking water  107 incorrect medical procedures a day  200,000 incorrect drug prescriptions per day  18,322 pieces of mishandled mail an hour  2 million documents lost by the IRS a year  Two short or long landings at any major airport each day How do such situations improve… 155
  156. 156. The Target: In Other Words… 156
  157. 157. Inputs, Outputs, & Y=f(x):  X = input to the process  Y = Output to the process  Six Sigma helps explain  We typically measure which of the controllable Xs performance by measuring have the most influence on the Ys of a process! the Y! Alias: Critical Xs  Example:  Example: We weigh – Exercise (type, amount…) ourselves on a scale. – Diet (type, amount, calories, – At or below target weight carbohydrates, fats, proteins) – Medical ? – Others Above target weight 157
  158. 158. The Six Sigma Process Practical Problem Define  Define the project scope  Select the output characteristics for the Y‟s  Assess the performance specifications Practical Problem Measure  Validate the measurement systems  Establish the initial capability for the Y‟s Statistical  Define the performance objectives Problem Analyze  Document the potential X‟s  Analyze the sources of variability Statistical Solution Improve  Screen the potential causes  Identify the operating conditions  Determine the capability for the X‟s Statistical Control  Implement the process controls Control  Document what you have learned 158 Warning: Requires a cultural change for best results
  159. 159. Six Sigma Roadmap Matrix Define Measure Analysis Improve Control Develop Collect Develop focused Create Develop & baseline data problem possible document charter on defects and statement solutions for standard possible cause root causes practices Map the Plot defect data Explore Select Train teams over time and potential causes solutions process analyze for special causes Understand Create & Organize Develop plans Monitor stratify potential causes performance voice of the frequency plots Pilot plans Collect data Create process customer & do Pareto Implement for updating analysis Use statistical plans methods to procedures Calculate Measure quantify cause results Summarize and process sigma & effect communicate Create detailed relationship Evaluate results process maps benefits Recommend 159 future plans
  160. 160. Searching for Balance 6 s 5s 4s 3s 2s / 1s 160
  161. 161. 6 Sigma Problem-Solving Tools Defects % PPM 99.9996% 3.4 6s Design for 6 Sigma (DFSS) 99.9767% 233 5s Process Entitlement 99.379% 6,210 6 Sigma Tools: 4s •Process Characterization: statistics •Process Optimization Modeling Seven basic tools: Pareto, Fishbone, 93.32% 66,810 Check Sheets, Histograms, Flowcharts, 3s Brainstorming, and Control Charts 69.13% 308,700 2s Experiential or “Tribal” 30.23% 697,700 1s knowledge Current Process Capability 161
  162. 162. Voice of the People  Traditionally, Marketing defined customer needs, but isolated workers can forget the importance of ease of use and durability  Customer Relationship Management implies that everyone is involved with CS  Customers are ideally in development team  About 20 customers should be included  ISO 9001:2000 adds Customer Satisfaction 162
  163. 163. Critical to Quality (CTQ) Chart Function: Critical to Quality (CTQ) Weighting Count Score Customer Service Calls unanswered No unanswered calls Count X 2 56 112 Delay in answering Greater than 30 seconds Count 144 144 Question not answered, call back required No call backs Count 23 23 Shipping Late shipments No late shipments Count X 2 56 112 Incorrect item/quantity No incorrect items Count X 2 4 8 Incorrect address No incorrect addresses Count X 2 6 12 Shipper error No errors Count X 2 20 40 Production/QC Product defects reported No defects Count X 2 112 224 Planning/Inventory Backorders <2 days No backorders Count X 2 61 122 Backorders >2 days No backorders Count X 4 18 72 163 Monthly Customer View Score 869
  164. 164. 0 164
  165. 165. Example Kano Chart SMS texting is a Must for a mobile phone 165
  166. 166. Cost of Poor Quality (COPQ)  Cost of fulfilling the gap between the desired and actual product/service quality  Cost of lost opportunity due to resources used to rectify the defect Sigma COPQ  Labor, rework, disposition, Level (of Sales) and material costs spent up to 3 25-40% the point of rejection 4 15-25%  Appraisal, Internal Failure, 5 5-15% 6 <1% Prevention, External Failure 166
  167. 167. The Scientific Method  Observe a marketplace or business environment aspect  Conjecture a working hypothesis  Make predictions based on hypothesis.  Test predictions by conducting experiments or making more observations. Use statistical tools to help separate information from noise.  Modify hypothesis inductively & empirically.  Repeat last three steps until “no” discrepancies “Show me the data” attitude prevails 167
  168. 168. Who Does What?  Champions and Sponsors – Select best projects for corporate objectives and implement with support and eliminating barriers  Master Black Belts (1 per 1,000 employees) – Understands theory, trains, & leads project reviews  Black Belts (20 per Master, 6-7 projects) – Hands-on project leadership and execution – Train and mentor the local organization  Green Belts (5-10% of time, – Deliver successful focused departmental projects 168
  169. 169. Information Overload  Not all information is valuable – 2/3 of managers report stress from too much info – 2/3 state relationships suffer from too much info – 1/2 suffer from ill heath due to too much info – 1/2 state decisions are delayed while costs are too high from too much information – Most claim only about 6 metrics really matter  Defect focus can hinder innovation and is often at the cost of a system view and quality 169
  170. 170. What Knowledge is Required?  College-level Mathematics and Statistics – Proficient in at least one Statistical Package  Strong Technology Orientation – One or more OS's and Multiple DBMSs – Office Automation and Groupware Software  Project and Quality Management  Supply Chain and Lean Manufacturing  Organizational Psychology and How to Attract, Reward, and Retain Employees  Communication and Teaching Skills 170
  171. 171. Semi-annual Black Belt Reviews  Technical Application (20%), by Masters – Project planning / management, use of tools, documentation, process mapping, gateway reviews, control plans, methodology execution  Project Success (40%), by Sponsors – On time, deliverables are easy to implement and support, certified, and number (1 for in-training, 2 for graduates, 3-4 for experienced)  Leadership (40%), by Sponsors – Challenging, enabling, modeling, encouraging 171
  172. 172. Deliverable: Summary Report IEC Presentation / Summary Report Outline  Savings Upon  Title Implementation  Team Roster – Cost to Implement  Problem Statement – Annual Savings  Objective » 1st, 2nd year  Primary/Secondary Metrics  Implementation Plan  Key conclusions – Key Milestones – Measure – Completion dates – Analyze – Responsibilities  Recommendation  Necessary Approvals  Impact on  Authorization to Orders/Procedures Proceed 172
  173. 173. Why Does It Fail? 1. Management missing faith in employees 2. Long-term, risk-adverse culture 3. Benefits are not shared (mostly at the top) 4. Failure to “walk the talk” for a set of common values  Intensity is no substitute for integrity 5. Insufficient and/or undirected training 6. No well-articulated vision 173
  174. 174. Deliverable: Back Up Information Implementation Schedule Improve & Control Plan PBL Plan Cost Estimate Backup Bases/Qualification/Assumptions Detailed Estimate (Implementation Costs and Yearly Savings) Measure & Analyze: Analysis of improvement between “as is” and “should be”, fishbones, paretos, xy matrix, FMEA, Gage R&R, Statistical backup Process Maps “as is” and “should be” Summary Report 174
  175. 175. 175
  176. 176. Continuous Measurable Improvement is Key  Optimized – Continuous process improvement is enabled by quantitative feedback from the process and from piloting innovative ideas and technologies.  Repeatable – The software processes for management and engineering activities is documented, standardized, and integrated for the organization. Basic project management processes are used to track cost, schedule, and functionality. 176
  177. 177. Use a Structured Framework 3. Establish OPI Plan 4. Identify All Projects 5. Provide Executive Level Program “Awareness” 6. Conduct CSWP Awareness Training 7. Conduct Workshops 8. Select Candidate Projects for Assessment 9. Conduct Project KPA Completeness Class 1. Establish Management 10. Establish & Implement Commitment & Goals Project Action Plans 2. Define Process 11. Update Tailor Reports Improvement Roles and 12. Plan, Prepare, Conduct for Responsibilities Next Improv. Cycle 177
  178. 178. Perfectionists are not perfect  80% efficient call centers are best – Allow for breaks and vacations – Allow for training and time management  Last 5% usually takes the greatest effort and so often does not produce a return on the time and capital invested => quality is about knowing when to declare victory  Just paying more to work in a hostile environment merely produces burn-outs 178
  179. 179. Use Process Measurement Metrics (But, do not use them for reward or punishment)  Financial (or Project Value) Metrics  Product (or Systems) Metrics – Size (LOC, Function Points, Etc.); Number of Defects; Effort (Person-hour); Complexity;  Customer Satisfaction Metrics – Check Customer Priorities for Quality Aspects – Brand Name and Advertising Responses  Process (or Leadership) Metrics – Intermediate Work Products and Records (Test Results or Compare Time to Fix a Bug / Predicted) 179 – CPI (Cost Performance Index) / SPI (close to 1.0)
  180. 180. Focus on Flow of Value Cumulative Flow 240 220 200 180 Control height of Features 160 work in progress 140 120 100 80 60 40 20 Value measured 0 on completion 2-Mar 9-Mar 16-Mar 10-Feb 17-Feb 24-Feb Time Backlog Started Designed Tested Complete 180 David J. Anderson, Managing with Cumulative Flow, 2004
  181. 181. Quality Problem, Go to the MAT!  Metrics Action Team (MAT) Goals – Define and Measure the Best Practices – Identify and Acquire the Best Equipment – Get and Promote the Best People  Focus Efforts on Key Process Areas – Process Change Management – Product Quality Management – Product Configuration Management – Peer Reviews 181
  182. 182. Description of the Ideal MAT  Any Employee Can Submit Change Requests  MAT Consists of All Functional Managers  Meets Once a Month to Review All Reports  Able to Step Back and Do Independent Reviews to Uncover Key Program and Systemic Corporate Issues  Output Is an Update Issues Report to the Executive Team and Program Management  Changes Organizational Decision Making 182