Six Sigma Leadership & Culture


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  • Six Sigma Leadership & Culture

    1. 1. 6  - Leadership & Culture Shifting the Paradigm - To ensure success Discovering the Reality of Lean Six Sigma in Manufacturing, Services, & Transactional Environments Dallas TX – Dec 2,3 2004 Bill Pugh VP Operations, Océ North America
    2. 2. Agenda <ul><li>Océ (the commercial that allows me to be here) </li></ul><ul><li>Success vs Failure </li></ul><ul><ul><li>The basic problem and qualitative findings </li></ul></ul><ul><li>Utilizing the tools of 6  </li></ul><ul><ul><li>A more structured approach </li></ul></ul><ul><li>Project findings </li></ul><ul><ul><li>Recommendations </li></ul></ul><ul><li>What must be done </li></ul><ul><li>An approach </li></ul><ul><ul><li>A roadmap for a successful 6  journey </li></ul></ul><ul><li>Conclusion </li></ul>
    3. 3. Who we are, what we do Océ
    4. 4. Océ Who we are & what we do <ul><li>We are…. </li></ul><ul><li>~$3 billion sales </li></ul><ul><li>Technology leader for over 125 years </li></ul><ul><li>Headquartered in the Netherlands </li></ul><ul><li>U.S. accounts for ~40% of the company </li></ul><ul><li>Publicly traded in Amsterdam and the NASDAQ </li></ul><ul><li>22,000 employees </li></ul><ul><li>2000 R&D personnel (imaging technology and software) </li></ul>We serve the enterprise with integrated document management solutions <ul><li>What we do… </li></ul><ul><li>Provide industry-specific document processing & management solutions </li></ul><ul><ul><li>High Speed Digital Print </li></ul></ul><ul><ul><li>Wide Format </li></ul></ul><ul><ul><li>Facilities Management </li></ul></ul><ul><li>Throughout the organization </li></ul><ul><ul><li>Office, Data Center, Central Reproduction, Transaction Printing </li></ul></ul><ul><ul><li>Design Document Management Systems </li></ul></ul><ul><ul><li>Display Graphics </li></ul></ul><ul><li>Analytical (data driven) consultation </li></ul><ul><li>Document management staffing </li></ul>
    5. 5. Documents create problems…. … Océ delivers solutions <ul><li>Did you know? </li></ul><ul><li>Knowledge workers spend up to 50% of their time trying to find documents </li></ul><ul><li>2 to 3% of every expense dollar is eaten up by printing costs </li></ul><ul><li>6 to 15% of a company’s expense goes into document creation, distribution, maintenance, and disposal </li></ul><ul><li>Document management, is not a core competence of most organizations </li></ul><ul><li>Some organizations have a few experts, but they generally focus on just a department or two. </li></ul><ul><li>Most customers only use part our expertise and capabilities </li></ul><ul><li>Technology is moving too fast for most enterprises to optimize on their own </li></ul>This is where we come in…. Océ provides effective document production and management solutions, providing significant savings
    6. 6. We are known by the customers we keep… …& the solutions and savings we provide Reduced document retrieval from 3.75 days to under 5 minutes Management of 400,000 infrastructure drawings, some from the 1880’s Automation of land plat storage and customer self-service retrieval Eliminated 1,300 filing cabinets, reduced staffing 90%, increased file distribution accuracy 78% Print on demand - training manuals Maximized efficiency of 55 million monthly statement printing requirement Unification of mail processes and 6  productivity for continuous improvement Management & staffing of enterprise-wide printing and wide format drawings, operating 35 production centers – reduce cost 45% Consolidated 9 printing centers into 1, staffed by Océ personnel
    7. 7. The basic problem, and qualitative findings 6  – Success vs Failure
    8. 8. Large numbers of 6  efforts are falling well short of expectations – many are failing <ul><li>Many organizations have embraced 6  with tremendous fanfare, and fairly quickly this miracle program, quietly fads away. </li></ul><ul><li>Potential to deliver significant results </li></ul><ul><li>Little success to show for the effort </li></ul><ul><li>Leaving behind: </li></ul><ul><ul><li>a large bill for the project team </li></ul></ul><ul><ul><li>disillusioned Black & Green Belts </li></ul></ul><ul><ul><li>a bitter taste in the sponsors mouth </li></ul></ul>With 6  …. … . Failure – should not be an option
    9. 9. Common wisdom has clearly identified the cause and the culprits <ul><li>A quick, qualitative, analysis reveals that the top reasons given for failure are: </li></ul><ul><li>Leadership – CEO, did not provide sustained support </li></ul><ul><li>Culture – People, did not embrace change </li></ul><ul><li>Internal systems & processes – not robust, lack metrics </li></ul>This is becoming all too familiar… … Frankly, I have seen this movie before, and I did not like it the first time.
    10. 10. A more structured approach Utilizing the tools of 6 
    11. 11. Using 6  methodology to dig past common wisdom <ul><li>Define the problem </li></ul><ul><li>Many 6  programs fail. </li></ul><ul><li>Initial hypothesis: poor leadership, culture, or lack of robust systems </li></ul>My challenge … … Use tools to identify the defect and to develop a solution <ul><li>Measure </li></ul><ul><li>Successful / Failure </li></ul><ul><li>Met expectations or not </li></ul><ul><li>Analyze </li></ul><ul><li>Getting to the root cause </li></ul><ul><li>Y f X, X, X, X, ….. </li></ul><ul><li>Improve </li></ul><ul><li>Common sense and simple ANOVA reveals the true root cause </li></ul><ul><li>The classic low hanging fruit </li></ul>Control Great news, the solution is within our capability and control (DMAIC)
    12. 12. Consider this my final presentation for my 6  project <ul><li>Problem statement </li></ul><ul><li>6  programs fail too frequently </li></ul>My initial finding – it is a leadership issue … … And, there is more to leadership that we generally realize Defect Unsuccessful 6  implementation or results that fall short of expectations Goal Identify the root cause – recommend a solution
    13. 13. Recommendations Project findings
    14. 14. Benchmarking leaders… …Great leaders drive & create great change They have vision, direction, fortitude…. … . They march to their own drummer
    15. 15. These leaders had a huge advantage <ul><li>They had vision </li></ul><ul><li>They may not have known exactly where they were going, but they knew they did not like where they were </li></ul>It is rare to have such advantages <ul><li>They had direction </li></ul><ul><li>They were the experts & the leaders; they could drive the change </li></ul><ul><li>They had fortitude </li></ul><ul><li>They kept at it in face of tremendous odds and numerous nay-sayers </li></ul><ul><li>They had time </li></ul><ul><li>Because they were first, they did not have a deadline to make </li></ul>
    16. 16. Unfortunately, most of us are not blessed to have such great leaders, nor be the first <ul><li>Our leaders are not extraordinary, and they are not schooled in 6  </li></ul><ul><li>On average, most are average </li></ul><ul><li>6  was not a “requirement” when they were climbing </li></ul>Not Great, Not First… … But they want to succeed <ul><li>6  has been around for a while </li></ul><ul><li>Deming, SPC, 3  – 1940s </li></ul><ul><li>Motorola & Mikel Harry - 1980s </li></ul><ul><li>Allied Signal & Larry Bossidy – early 1990s </li></ul><ul><li>GE & Jack Welch – mid 1990s </li></ul>
    17. 17. You need to help them become great 6  leaders <ul><li>Set them up for success </li></ul><ul><li>Know the organization and its capabilities </li></ul><ul><li>Manage expectations </li></ul><ul><li>Set attainable goals </li></ul><ul><li>Use the right tools </li></ul><ul><li>Coach, mentor, & lead your leader / sponsor </li></ul><ul><li>Ensure there are no surprises </li></ul><ul><li>Show them the way </li></ul><ul><li>Make them look good </li></ul>
    18. 18. Y f X <ul><li>Great Leadership </li></ul><ul><li>f </li></ul><ul><li>Great Followership </li></ul>And that is the paradigm shift… … It is not about them, … .It is about YOU! Followership is from Greg Reid, SVP & Chief Marketing Officer, Yellow Freight
    19. 19. How to be a great follower – creating great leaders So what must you do?
    20. 20. First, know why you are there <ul><li>Hired gun </li></ul><ul><li>Come in, solve a few nasty problems, move on </li></ul><ul><li>Point of the sword – Leader using you to drive change, at your expense </li></ul><ul><li>Leader wants a few quick hits </li></ul><ul><li>Develop a sustainable 6  culture </li></ul><ul><li>Data driven </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Leader wants to be in it for the long haul </li></ul>Here, we are addressing the second option
    21. 21. You need to help them become great 6  leaders <ul><li>Set them up for success </li></ul><ul><li>Know the organization and its capabilities </li></ul><ul><li>Manage expectations </li></ul><ul><li>Set attainable goals </li></ul><ul><li>Use the right tools </li></ul><ul><li>Coach, mentor, & lead your leader / sponsor </li></ul><ul><li>Ensure there are no surprises </li></ul><ul><li>Show them the way </li></ul><ul><li>Make them look good </li></ul>
    22. 22. Do some research know your culture, process, population <ul><li>Is your culture one accepting and excited about change? </li></ul><ul><ul><li>… Is change management required </li></ul></ul><ul><li>What is your process entitlement? </li></ul><ul><ul><li>… Should you improve or replace </li></ul></ul><ul><li>Do you have consistent & repeatable processes? </li></ul><ul><ul><li>… Should you be focusing on standardization </li></ul></ul><ul><li>Are you employees ready for the quantitative requirements of 6  ? Are they afraid of math? </li></ul><ul><ul><li>… Should you start with some of the basics </li></ul></ul>Be prepared, know what you are getting into Share your learnings with your leader
    23. 23. Setting expectations <ul><li>Internally </li></ul><ul><li>Leadership </li></ul><ul><li>Organization </li></ul><ul><li>Potential team members </li></ul><ul><li>Externally </li></ul><ul><li>Customers </li></ul><ul><li>Suppliers </li></ul><ul><li>Share holders </li></ul><ul><li>Style </li></ul><ul><li>Be precise, data driven, and deliver </li></ul>Under promise…. … . Over deliver
    24. 24. Managing the culture is not difficult if you stick to the basics <ul><li>Leaders </li></ul><ul><li>Follow </li></ul><ul><li>Success </li></ul>Nothing succeeds like success Culture Follows People People Follow Leaders Success Begets Success
    25. 25. Nurture the culture you desire <ul><li>Who gets the management awards? </li></ul><ul><li>The fire fighters who jump in when there is a big issue </li></ul><ul><li>The people who do not have problems because they are constantly addressing the little issues so that the big ones never occur. </li></ul><ul><li>Teach basic problem solving </li></ul><ul><li>Not sexy – but it delivers </li></ul><ul><li>Constantly coach and keep leadership informed </li></ul><ul><li>They need to know what is coming next </li></ul>
    26. 26. Question - Do you build an organization or create a success? <ul><li>There is no right answer </li></ul><ul><li>Driving this dialogue with you leader will demonstrate your knowledge of the issues at hand </li></ul><ul><li>Driving this dialogue with your leadership team will aligned them with your success </li></ul>Knowing the culture will help you reach the correct answer for your situation <ul><li>Most leaders have built something from the ground up </li></ul><ul><li>They understand the difference between small immediate successes and building an organization to generate larger successes later </li></ul><ul><li>They understand the time and payoff tradeoffs. They expect you to provide a plan, dates, milestone, etc. This should be agreed to at the start. </li></ul>
    27. 27. Know what tools to use when… …use and teach the appropriate tools <ul><li>100% bad data or no data… </li></ul><ul><ul><li>… Does not support additional analysis </li></ul></ul><ul><li>50% rolled throughput yield… </li></ul><ul><ul><li>… Does not benefit from regression analysis </li></ul></ul><ul><li>20% Customer dissatisfaction… </li></ul><ul><ul><li>… Does not need a designed experiment (DOE) </li></ul></ul><ul><li>10% scrap or rework… </li></ul><ul><ul><li>… Does not require response surface analysis </li></ul></ul><ul><li>Just because you can, does not mean you should </li></ul><ul><li>Misuse of tools is the #1 cause of: </li></ul><ul><li>Black Belt and Green Belt frustration, fatigue, and burnout </li></ul><ul><li>Organizational mistrust and disillusionment </li></ul>
    28. 28. To speak about 6  as a quick hit wonder is a disservice <ul><li>Be accurate & precise in your discussions </li></ul><ul><li>6  is unlikely to cut your costs 50-90% </li></ul><ul><ul><li>But it can reduce your rework 90% </li></ul></ul><ul><li>6  is unlikely to increase customer satisfaction 25% </li></ul><ul><ul><li>But it can reduce defects 90% </li></ul></ul><ul><li>6  is unlikely to increase your output 10-100x </li></ul><ul><ul><li>But it can increase Rolled Throughput Yield to above 95% </li></ul></ul><ul><li>Leaders may not know 6  , but they know snow-jobs </li></ul><ul><li>And if they don’t, those in the organization will see it </li></ul><ul><ul><li>And they will set you up to fail </li></ul></ul>Do not sell instant results or snake oil… Let the results do the talking
    29. 29. A roadmap for a Successful 6  journey An approach
    30. 30. 6  is a journey <ul><li>Clean it up and standardize </li></ul><ul><li>5S, Process Mapping, TPM, & ISO </li></ul><ul><li>Make the process repeatable, remove variation </li></ul><ul><li>“ Practice does not make perfect, perfect practice makes perfect” – Coach John Woodward (won 10/12 NCAA Championships) </li></ul><ul><li>Pick the best process and improve </li></ul><ul><ul><li>Do not have 20 different processes and allow people to pick which they prefer </li></ul></ul><ul><li>Develop measurements & metrics </li></ul><ul><li>Determine what to measure – </li></ul><ul><ul><li>Customer focused CTQs </li></ul></ul><ul><ul><li>Performance KPI </li></ul></ul><ul><li>Gage R&R </li></ul>
    31. 31. Basic tools start the 6  journey <ul><li>Get your measurements / metrics right </li></ul><ul><li>Know what to measure, what matters </li></ul><ul><ul><li>Voice of the Customer </li></ul></ul><ul><ul><li>CTQ Tree – Reverse NCAA (Bill Dobbs, GE ~1985) </li></ul></ul><ul><ul><li>Performance KPI (Key Process Indicators) </li></ul></ul><ul><li>Make sure the metrics are consistent & accurate </li></ul><ul><ul><li>Gage R&R </li></ul></ul><ul><ul><li>Sanity check </li></ul></ul>Not sexy… … But it works, it will deliver solid results FMEA Scatter plots Cause & effect diagrams Rolled Throughput Yield Control Charts Process Maps – Post-its Brainstorming Affinity Diagrams Pareto Video tape
    32. 32. Make your leader(s) look smart <ul><li>Coach them </li></ul><ul><li>Teach them the basics </li></ul><ul><li>Provide them with a few key stories </li></ul><ul><li>Introduce them to people that have succeeded </li></ul>When the leader looks and acts smart… … . you win! <ul><li>Prepare them for every 6  meeting </li></ul><ul><li>Briefing books </li></ul><ul><li>Run through before </li></ul><ul><li>Notes on key success and nasty issues </li></ul>
    33. 33. The one page summary In conclusion
    34. 34. Successful 6  is led… Great leadership is the result of great followership <ul><li>When 6  fails, it can usually be traced back to: </li></ul><ul><li>Poor expectations management </li></ul><ul><li>Poor followership </li></ul><ul><li>6  leaders lack of process & organizational knowledge </li></ul>Leadership & Followership – it’s a Partnership… … You make it happen <ul><li>Keys to success </li></ul><ul><li>6  leaders who are great followers </li></ul><ul><li>Solid understanding of the environment </li></ul><ul><li>Set, manage, exceed expectations </li></ul><ul><li>Coach your leaders, make them great </li></ul>
    35. 35. Thank you