This document outlines Value Driven Solutions' approach to lean transformation for service organizations. It discusses using Lean Six Sigma principles and tools to eliminate waste, improve processes, and create better flow. The 5 step approach includes assessing the organization, developing competency in Lean Six Sigma tools, creating a vision and strategy, piloting improvements, and rolling out changes. Key aspects are aligning metrics with goals, establishing a steering committee, and customizing the transformation based on the specific business model. The overall goal is to provide a roadmap for clients to achieve world-class performance through continuous improvement.

1. By
Value Driven Solutions
The Resource for the Lean Enterprise
Lean Transformation Strategies for Service
Organizations

2. The Resource for the Lean Enterprise
Value Driven Solutions
Lean Transformation Strategy © 2015 | Value Driven Solutions 2
Value Driven Solutions (VDS) is a management consulting firm dedicated to
continuous process improvement. Our approach is based on the Lean
Principles for manufacturing and service organizations, and the Six Sigma
methodology for near-perfect quality.
Our Mission
“Value Driven Solutions is fully
committed to enabling businesses to
reach their full operational potential
through the implementation of tailored
problem solving strategies in the most
efficient and cost-effective manner.”

3. The World Class Performance Cycle
The Value Driven Approach
Lean Transformation Strategy © 2015 | Value Driven Solutions 3
7. Compare to goals,
adjust strategy
8. Continue to improve
focused on delighting
the customer
6. Standardize
processes
5. Target specific
projects using 6σ
DMAIC
4. Define Value
Streams, eliminate
waste, and introduce
pull systems
3. Ensure satisfaction
of customers
requirements
2. Established based
on LSS principles to
maximize value.
1. Identify customers
and see value through
their eyes. VOC
Define
Value
Corporate
Strategy
Develop
Metrics
Maximize
Flow
Improve
Quality
Eliminate
Variation
Analyze
Results
Share
Success
&
Lessons
Learned
Customer

4. Commodity Mentality in the Insurance Industry
Business Case for Transformation
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• Competition for market share based mostly on price
• Risk reduction strategies took back seat
• Less focus on the hidden cost drivers behind a client’s TCOR
• Instead higher TCOR due to:
• Poor risk identification process
• Gaps in coverage
• Inferior claims handling
It’s the hamster wheel effect everyone is on,
but can’t or won’t get off.
“
“ Colin D. Baird, Insurance Journal

5. Lean Six Sigma for service organizations
Business Case for Transformation
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 A method for eliminating waste, taking complexity out of
processes, and creating better flow.
 A business strategy that empowers people to create process
stability and a culture of continuous improvement
 A growth strategy... gaining more market share and increasing
sales, while lowering costs
 Not an instant transition, requires old paradigms to be abandoned
 Customer focused thinking.... a natural fit with World-Class
organizations

6. Business goals and process metrics aligned
Business Case for Transformation
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Customer satisfaction
Profitability
Market growth
Lead-time
Defects/Rework
Services cost (TCOR)
Deliver more
value to
stakeholders

7. Step
2
Step
5
Roll Out. Commence tool flow
down through structured events
managed by steering committee.
Involve all and Share Success!
Step
4
Measure. Create Leadership Standard work with
steering committee. Establish KPIs at the
enterprise, site, cell & process level.
Step
3
Vision. Create vision with senior leadership. Establish
strategic plan to address gaps from Lean Enterprise
Assessment. Create Steering Committee. Prioritize projects
according to organizational goals. Roadmap to World Class.
Competency. Intense workshop for all senior and mid-management on
operating methodology and LSS tools. Create Lean Six Sigma Tool Box,
for specific business model, and Competency Development Program.
5 Steps to Success
Lean Transformation Strategy
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Analysis. Perform Lean Enterprise Assessment. Determine the organization’s cultural
readiness for change, operational capability, and level of alignment between strategy and
goals. Select pilot cell and establish the project’s potential, scope and timeline.
Step
1
!

8. Lean Enterprise Assessment
Analysis
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The goal of the assessment is to determine the organization's:
 Cultural readiness for change
 Current state of continuous improvement efforts
 Operational capability and flexibility
 Relationship among internal processes and with suppliers
 Adaptability to the continuously changing competitive environment
and ever-changing regulations

9. Associate Level
Trained in basic tools can
participate and support events
Practitioner Level
Can Lead, Co-lead & implement
events and provide basic training.
Master Level
Creates vision with senior leadership
and provides advanced training.
Lean Six Sigma Competency Development Track
Develop curriculum to certify participants and support the transformation
.Competency
Educating the Workforce
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10. Kaizen
6S
DMAIC
VSM
Competency
The Lean Six Sigma Toolbox
LSS tools are not one-size-fits-all.
 Introduce tools sequentially according to:
 Business Model
 Type and severity of problems
 Level of competency of the workforce
There are 3 distinct tool categories
 Problem solving
 Waste elimination
 Decision making
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11. Insurance
Mfg & Aftermarket
Healthcare
Sales & Marketing
Primary focus is process improvement of
strategic intent, not on discovery of
waste.
Focus on waste elimination, control of
inventory, on time delivery, quality, and
turn around time
Improvements in patient outcome,
quality, reduced wait times
Working with the customer to lower TCOR.
Identifying and eliminating waste, and
improving flow in the agency’s processes
Effort Put Into System Design Will Result in Greater Benefits
© 2015 | Value Driven Solutions
Vision
Strategy Tailored to Specific Business Model
12Lean Transformation Strategy

12. Cross Functional Steering Committee
Measure
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Members
 Site leadership and management representatives from key departments (Claims,
Sales & Marketing, Underwriting, Human Resources, Compliance)
 Key stakeholder groups that have an interest in the outcome of the project
 Transformation leadership (Lean Transformation Leader, Site CI Manager, etc.)
Responsibilities
 Approve project deliverables
 Help resolve issues and policy decisions
 Approve scope changes
 Provide direction and guidance to the project
 Acts as liaisons to executive group and sponsors

13. Define Metrics for the Enterprise, Site, and Cells based on these four categories
Customer Focus
Focus on the Voice of
the Customer. Strive to
delight customers.
Delivery
Working every day to meet 100%
on time delivery
Quality
Zero defect/rework philosophy.
Responsiveness
Best in Class Turn Around
Time and discrepancy
resolution.
Measure
Establish Key Metrics
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14. Target cell based on process metrics or value stream data
Pilot Event
Roll Out
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 Form cross-functional, multi-level team
 Match the tools to the problem
 Document results
 Share successes and challenges
 Select next cell or area to improve
 Continue to monitor results

15. Our Vision
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At VDS, our goal is to provide our clients with…
 a true baseline from which to grow
 help to identify opportunities for improvement of critical processes
 a comprehensive road map to World Class performance
VDS offers a balanced and cost effective approach based on:
 exceptional customer support
 knowledge transfer
 innovative solutions.

16. Value Driven Solutions, LLC @Lean_VDSwww.facebook.com/VDSConsulting
Contact Us
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Call us
1 800 253 5260
Or Email us your questions at
info@vdsconsultinggroup.com