Post on 08-Apr-2016
description
Why Change Fails?
Top Ten Reasons (Price Waterhouse Cooper)
• Competing resources 48%
• Functional boundaries 44%
• Lack of change skills 42%
• Middle management 38%
• Long IT lead times 35%
• Communication 34%
• Employee opposition 33%
• Initiative fatigue 32%
• Unrealistic timetables 31%
Why Change Succeeds?
Top Eleven Reasons (Price Waterhouse Cooper)
• Good communication 100%
• Strong mandate by senior management 95%
• Setting up intermediate goals and deadlines 95%
• Having an adaptive plan 91%
• Having access to adequate resources 86%
• Demonstrating urgency of change 86%
• Setting up performance measures 81%
• Delivering early tangible results 76%
• Involving customers and suppliers early 62%
• Benchmarking performance vs. competitors 62%
Six Sigma Deployment Planning:
Basic Elements
Introduction: There are many things to consider when developing a Six
Sigma deployment plan. Leaders of organizations sometimes have
only one chance every few years to fundamentally transform their
organization, so it is important to do it well. We will discuss the basic
elements of a good deployment plan and some of the critical success
factors.
Critical Success Factors in Deployment
• Culture
• Approach
• Planning
5
Corporate Culture and Change
• Corporate culture is a company’s value
system and its collection of guiding
principles
• Cultural values often seen in mission and
vision statements
• Culture reflected by management policies
and actions
Organizational Culture Dimension Quality Management Value
The basis of truth and rationality in the organization Decision making should rely on factual information and the
scientific method.
The nature of time and time horizon Improvement requires a long-term orientation and a strategic
approach to management.
Motivation Quality problems are caused by poor systems-not the
employees. Employees are intrinsically motivated to do quality
work if the system supports their efforts.
Stability versus change/innovation/personal growth Quality improvement, is continuous and never ending. Quality
can be improved with existing resources.
Orientation to work, task, and. coworkers The main purpose of the organization is to achieve results that
its stakeholders consider important. Results are achieved
through internal process improvement, prevention of defects,
and customer focus
Isolation versus collaboration/cooperation Cooperation and collaboration (internal and external) are
necessary for a successful organization.
Control, coordination, and responsibility A shared vision and shared goals are necessary for
organizational success. All employees should be, involved in
decision making and in supporting the shared vision.
Orientation and focus-internal and/or external An organization should be customer driven. Financial results
will follow.
From
Deter, Schroeder, Mauriel (2000) A Framework for Linking Culture and Improvement Initiatives in
Organizations, Academy of Management Review, vol. 25, No. 4, 850-863
Building Culture
• Culture dominates
• Quality as a subculture
• How can culture change?
– Unfreezing, cognitive restructuring,
freezing
Cultural Change
Summary
• Change can be accomplished, but it is difficult
• Imposed change will be resisted
• Full cooperation, commitment, and participation by
all levels of management is essential
• Change takes time
• You might not get positive results at first
• Change might go in unintended directions
Approach: Contingency Perspective
From
Sitkin, Sutcliffe, Schroeder (1994) Distinguishing Quality Control from Learning in Total Quality
Management: A Contingency Perspective, Academy of Management Review, vol. 19, No. 3, 537-564
Deployment Planning Elements
• It is helpful to go back to strategic
management frameworks when considering
basic deployment planning elements
– Malcolm Baldrige
Deployment Components
Components Components Components
Vision Financial
Objectives Branding
Components
Methods
Components
Policies &
Standards
Phases Non-Financial
Objectives Promotion Tools Training
Culture
(Simple Rules)
Specialists
(Belts)
Leadership
Development
Financial
Reporting(QNI)
Integration w/
other Systems
System Map Geography/
Sites Terminology Lead Users Reviews
Balanced
Scorecard
Job Classes/
Positions
Drivers of
Behavior
Focus
Areas
Project
Portfolios
Deployment Plan Example: MGPP
Objective 2003 2004 2005 Vision Develop Project Selection Process
•Corporate design
•Division planning
•Build System portfolio
•Division operating and coordinated with Corporate Process.
•Project Selection owners identified
•Budgeting linked to portfolios
•Corporate and Division Portfolios value known and linked to strategy.
•Performance targets are hit
Project Review and Reporting
•Some review Leadership Team
•Project reporting initiated
•Project reporting from all corporate projects
•Web/intranet accessibility
•Benefits quantified
•Board & Leadership Team Review
•Alignment from Board Room to Department on project reviews
•Every level has clear understanding of progress against Scorecard targets
•Reviews are open, honest, data-based
Develop Process Infrastructure
•System Map drafted
•Process Management planning with Leadership Team
•Initiate PM for 6-8 core processes with corporate champions and owners
•Establish PM Forum
•Extend process management to 9-15 processes
•Each Division has PM Forum
•All core processes, some leadership and support formally managed
•Project priorities influenced by Process Owners
Launch New Projects & Develop Specialists
•100 GBs trained
•15 Black Belts trained
•300 GBs trained/cert
•40 BBs trained/cert.
•Financial Analysts on DMAIC/DFSS teams
•30 Champions trained
•5 Master BBs trained
•10 Design BBs trained
•All current and future leaders are GBs
•100 BBs
•1 MBB in each Division
Build Analytic Skills, Tools & Methods
•Minitab
•Some DFSS
•DMAIC
•Discovery
•Basic Data Analysis wkshps (3)
•Minitab wkshps
•DFSS wkshps (2: 5-7 projects)
•Lean wkshps (2)
•Discovery Wkshps (3)
•Basic Data Analysis wkshps (2)
•Minitab wkshps (TBD)
•DFSS wkshps (2: 5-7 projects)
•Lean wkshps (2)
•Discovery Wkshps (3)
•Capability to launch and achieve strategic initiatives in every Division
Define and Address Culture
•Simple Rules drafted •Finalize Simple Rules
•Corporate and Division leadership engage all employees
•System support is expected and practiced
Enhance Leader Development
•Informal recognition
•Some performance requirements for Sr. Leaders
•Recognize team behavior
•BB career path defined
•Core Leader Competencies & Behaviors aligned
•Succession planning for BB and MBB roles
•PE improvement and PM activities are recognized
•Succession plans and candidates for all leader
Deployment Planning Exercise
• Use the Multi-Generation Project Plan to
begin creating your deployment plan
– Brainstorm components and fill in phases/time
frames
– Place the components on the MGPP
– Start with your vision and identify goals for
each phase/time frame
Deployment Planning Summary
• Leaders have few chances to fundamentally change their organization
• There are common phases in Six Sigma deployment
• Numerous things need to be considered during a deployment
• Careful thought should be put into the deployment of a deployment plan and there should be wide involvement
Extensiveness of a Deployment
Management Philosophy & Culture
Management System
Methods
Tools
Applications
Note: This diagram is based on the work of
Dr. Mark P. Finster of the University of Wisconsin
at Madison
Common
Focus
Areas
Lasting
Change
Six Sigma and the Path to Transformation
A) Project-based Improvement
R
E
S
U
L
T
S
B) Infrastructure Alignment
C) Governance for Transformation
R.I.P.?
TIME
Strategic Scorecard (especially
predictive, preventive indicators)
Integrated Management System
Leader Development/Succession
Educating the Board of Directors
Marketing and Design
H.R. Policy
Finance
Information System
“Best Practice” exchange
Supply Chain
Project Savings
Black Belts, Green Belts
Etc.