Applying HS Into a L6S Program 1

8/8/2019 Applying HS Into a L6S Program 1

1/41

01/10/11 05:51 PM 6889-20_HS 1

Applying the Concept ofHuman Sigma a Lean/Six SigmaProgramRob Bryant

Human Sigma, Gallup Press, 2007, written by John H. Fleming, Ph.D., and Jim Asplund


2/41

01/10/11 05:51 PM 6889-20_HS 2

My Own Walk Through Change

The fall that took it all

My three thoughts on the way down

This is really going to hurt

Did I kiss my family goodbye?

I will survive

Paralysis

Surgeries

Hard times do not dictate the outcome you do.


3/41


4/41


5/41

01/10/11 05:51 PM 6889-20_HS 5

Human Sigma: Data Proven (Contd)

The meta-analysis confirmed previous findings showing that engaged workgroups(vs. disengaged) are:

51%

27%

62%

31%

51%

12%

12%

18%

Less likely to be a source of inventory or service shrinkage

Less prone to absenteeism

Less likely to be involved in a work-related accident

Less likely to leave the organization high turnover companies

Less likely to leave the organization low turnover companies

Better at engaging clients

More profitable

More productive


6/41

01/10/11 05:51 PM 6889-20_HS 6

HS Linked to ImprovedFinancial Performance

The 10 companies surveyed in the cross-validation:

All applied best-practice principles for managing theemployee-customer encounter

Together, outperformed their five largest peers during2003 by 26% in gross margins and by 85% in salesgrowth

The findings demonstrated that:

It is possible to arrive at a single measure ofeffectiveness for the employee-customer encounter

This measure has a high correlation with financialperformance


7/41


8/41

01/10/11 05:51 PM 6889-20_HS 8

Emotionally Satisfied CustomersAre Committed to Buy More

Even more striking is the relationship between emotional attachment andself-reported share of spending

This suggests an underlying neurological mechanism that links emotionalattachment to subsequent buying behavior

Clearly, a Six Sigma approach to measuring/managing the quality of the

employee-customer interaction needs to take customers emotions into account Building on work of psychologist Ben Schneider and management professor

David Bowen, HS has developed a measure of customer engagement

Overall satisfaction

Likelihood to repurchase

Likelihood to recommend

Confidence (Transition)

Integrity (Re-win)

Pride (Brand)

Passion (Emotional Engagement)

Traditional Metrics of Customer LoyaltyAssessment of Customers Emotional

Commitment

Human Sigma Measure of Customer Engagement


9/4101/10/11 05:51 PM 6889-20_HS 9

HS Improves the Service IndustryEmployee-Customer Encounter

Widespread use of Six Sigma has resulted invastly improved product quality

Inspired by these improvements, businesseshave applied Six Sigma principles in sales andservice settings

Six Sigma helps overcome the 18 month rule

Improvements tend to flat-line after 18 months

This is due to focusing on the issue but changehas not occured

In early attempts, researchers and managersalike assumed customers in those settingswould be as focused on conformance torequirements as wereengineers on the factory floor

However, in service-related industries,humans are the product: HS takes thisinto account


10/4101/10/11 05:51 PM 6889-20_HS 10

HS Improves the Service IndustryEmployee-Customer Encounter Contd)

The employee-customer studies

Identified ways to measure the effectiveness ofthe encounter

Explored how those metrics could best be used

Assessed the benefits that could result from their

application If customers were rational creatures whojudged their interactions with companyrepresentatives using rigorous, analyticalstandards then the companys flawlessperformance alone would result in satisfied,

profit-creating, lifelong customers


11/4101/10/11 05:51 PM 6889-20_HS 11

Emotions Play a Large Rolein Services

20 years of research in two very different

fields neuroscience and behavioraleconomics has established the role ofemotions in decision making

Human decisions are based on acomplicated mixture of emotion andreason

People may think that their behavior ispurely rational, but it rarely is

Emotions powerfully inform behaviorof both customer and employee

Recent work suggests that emotionsmay play even a larger role than

analysis has shown.


12/4101/10/11 05:51 PM 6889-20_HS 12

Four Dimensions of EmotionalAttachment

2000 The Gallup Organization. All rights reserved

Cant imagine a world without

Perfect company for people like me

Always treats with respect

Feel proud to be a customer

Fair resolution of any problems

Always treats fairly

Always delivers on promise

Name I can always trust

Passion

Pride

Integrity

Confidence

Each higher level leads to increased emotionalengagement resulting in increased financialperformance


13/4101/10/11 05:51 PM 6889-20_HS 13

The HS of Clients

For all kinds of companies, fully engagedcustomers deliver a 23% premium over theaverage customer

Share of wallet

Profitability

Revenue Relationship growth

Actively disengaged customers represent a 13%discount (decrease) on the same measures

Within a given company, business units

whose levels of customer engagement are inthe top 25% tend to outperform all other unitsby a factor of 2:1 on measures of:

Profit contribution

Sales

Growth

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% Fully Engaged

Actively Disengaged

Measure of Customer Engagement


14/4101/10/11 05:51 PM 6889-20_HS 14

HS Customer Survey Questions

Customers rate their CSC experience on a scale of 1 to 5

Revised Customer Survey QuestionsHow satisfied are you with CSC overall including the employees you work with?

Are you likely to continue to select CSC, based on your experience with the employees you work

with?

Are you likely to recommend CSC based on your experience with the employees you work with?

Is CSC a company you can trust, based on your experience with the employees you work with?Do CSC employees that you work with, always deliver what they promise?

Do CSC employees that you work with, always treat you fairly?

Do CSC employees that you work with, reach fair and satisfactory solutions when problems arise?

Are you proud to be a CSC customer?

Do CSC employees you work with, always treat you with respect?

Is CSC a perfect company for you, based on the employees you work with?

Have CSC employees performed such that you cant imagine your job without CSC supporting

you?

Questio

nsarec

opyrigh

tedby

Gallup.

Cann

otbeu

sedu

nless

using

Gall

upor

rewordi

ng

significa

ntly.


15/4101/10/11 05:51 PM 6889-20_HS 15

Building Confidence

What can you do:

Deliver what you promise: In the Proposal

During Meetings

When asked questions

During informal discussions

Satisfy the customers requirements, plus some

Give them value for their investment in CSC

Conduct the Customer Survey bi-yearly and employee survey yearly.

You only hear one complaint out of ten, so one unhappy customer represents

at least ten. Treat each seriously. As a company grows, it must clone successful services.

Evaluate the financial, operational and HS performance of the org.

Give the customer what they want.

Gather The Voice of the Customer so you know what they really want.


16/4101/10/11 05:51 PM 6889-20_HS 16

What can you do:

Play by the Rules Respond to Service Failures quickly:

Acknowledge the problem

Admit when youre wrong

Apologize for any negative effects it hason them

Be honest, polite, respectful andreasonable

Take ownership

Fix the Problem on the spot if you can

Escalate if necessary

Follow-up to ensure they agree its fixed

Leave the customer Better Off after theproblem

Do whats right especially when its hard!

Building Integrity


17/4101/10/11 05:51 PM 6889-20_HS 17

Treat each account as if they are our #1

customer Put the A-Team on every account by

selecting the right CSC employees fortheir account

Customers, like all of us, want to beassociated with winners, put the winningteam on the account

Make the customers who chose you, gladthey did through flawless delivery ofservice

Building Pride What you can do:

Reduce variation in serviceIf your overall sat in 90%, but your range is 90%, one of yourcustomers is extremely unhappy. What if this is your largest client,the 90% average is almost meaningless.

Treat every customer with respectMake the customer more successfulthan they were before they chose

you


18/4101/10/11 05:51 PM 6889-20_HS 18

Building Passion

What can you do:

Set the standard for others to followPartner with the client so theres no us

and them it becomes we

Treat them special and be on your bestbehavior, just like on your first date

with someone you really like and wantto impress

Spice up your customer relationship bydoing special things, just like you do ina good marriage

Listen when your customer speaks

We want engaged clients not justsatisfied ones.


19/4101/10/11 05:51 PM 6889-20_HS 19

Engaged Customers Come fromEngaged Employees

Every employee-customer interaction representsan opportunity to build customer emotionalconnection or to diminish it

These interactions represent a large, and largelyuntapped, resource

In the United States, just 29% of employees are

energized and committed at work (Gallup poll) 54% are effectively neutral they show up and do

what is expected, but little more

The remaining 20% of employees are disengaged

Work groups that are positively engaged show

Higher levels of productivity and profitability,

Better safety and attendance records

Higher levels of retention

Greater effectiveness at engaging customers

Disengaged

20%

Energized

29%

Neutral

54%


20/4101/10/11 05:51 PM 6889-20_HS 20

Four Dimensions of EmployeeEngagement

19931998 The Gallup Organization. All rights reserved

Opportunities to learn and grow

Talked to about programs

How Can

We Grow?

Opinions count

Mission and purpose translates to my job

Coworkers committed to quality

Best friend at work

Do I Belong?

Encourages development

Supervisor cares

Recognition

Opportunity to do what I do best

What Do I Give?

Have materials and equipment

Expectations clearWhat Do I Get?


21/4101/10/11 05:51 PM 6889-20_HS 21

Dual Employee-CustomerEngagement Means Higher Profits

Disengaged employees have a profoundimpact on companies

They cost companies $300B/year in lostproductivity in the United States alone

They also destroy customer relationships withremarkable ease, day in and day out

Performance metrics that acknowledgeimportance of emotional engagement forboth customers and employees providestronger links to desired financial andoperational outcomes

For sales and service organizations, unmanagedvariability in the quality of the customerexperience represents a significant threat toenterprise sustainability

This is because customers notice variation intheir experiences, not their average experience


22/4101/10/11 05:51 PM 6889-20_HS 22

Improved Attitudes Lead to HigherFinancial Performance

A local focus is powerful in reducing variability because of its simplicity and flexibility

Each unit can identify and correct its ownproblems

Conventional analyses of employee attitudes,customer requirements, and financial

performance have emphasized the linearity of therelationships among them

Employee attitudes affect customerattitudes, and customer attitudes affectfinancial performance

Our HS metric combines employee andcustomer engagement into a single measurethat provides a more comprehensive way ofcapturing and understanding this dynamicsystem


23/4101/10/11 05:51 PM 6889-20_HS 23

Engaged Employees Create LastingClient Connections

Engaged, committed employees generategreater output at a higher quality level thanuncommitted workers

They also stay longer with the firm, reducingtraining and replacement expenses

These efficiencies translate directly intoenhanced profitability

Engaged employees also generate indirectcustomer outcomes

Productive and committed employees generatestronger customer connections

This in turn leads to higher levels of customerretention, profitability, and growth

To reduce variability in customer experience,businesses must focus on reducing variability inlocal people processes (the who and howof implementation)


24/4101/10/11 05:51 PM 6889-20_HS 24

HS Employee Survey Questions

Employees rate their work satisfaction at CSC on a scale of 1 to 5

Revised Employee Survey QuestionsI know what is expected of me and have well-defined goals (KRA's in my performance review.)

I have the right tools and resources (time, information, materials, access to people) to produce

quality work.

I am in the right job at CSC doing what I do best.

I receive some form of recognition or a verbal thank you for doing good work on a weekly basis.

My supervisor seems to care about me as a person.

My continued growth and development is encouraged and supported by my supervisor.

I work in an environment where individuals are free to readily communicate their own

opinions/ideas.

The mission of my division makes me feel my work is important.

My team strives to deliver products and services of superior quality.

I have fellow employee at work that make my job more enjoyable.

My supervisor has talked to me about my career progression in the last six months.

I have had opportunities at CSC to learn and grow this past year.

Questio

nsarec

opyrigh

tedby

Gallup.

Cann

otbeu

sedu

nless

using

Gall

upor

reword

ing

significa

ntly.


25/4101/10/11 05:51 PM 6889-20_HS 25

Engaging Employees Level 1

What can you do:

Get rid of the use them up and throw them awaymentality. Employees will never feel secure ortrust in the company.

Be honest in your dealings with employees

Ensure they know what you expect of them

Put them in the right roles this builds theirconfidence and self-esteem through doing whatthey do best

Give employees the tools to do the job

If they arent in your budget, add them nextyear

Feelings have a great impact on the delivery ofservices. Feelings ARE facts to people. Thosefeelings change our perceptions and moreimportantly, our actions. Make sure your surveysand environments allow employees to express howthey really feel.


26/4101/10/11 05:51 PM 6889-20_HS 26


What can you do:

Employees should know the vision, goals andperformance of their account, division and company

Let employees accomplish their jobs their way withinparameters. Manage outcomes, not behaviors.

Praise successful services and clone them

In services, employees are the product. Treat thembetter than a manufacturer treats their finestmachines

Give employees honest feedback on theiraccomplishments

Hold employees to a high level, not impossible

Listen to them and let them make things better

Pay them fairly

Employees should reap some of the profits theywork to achieve


27/4101/10/11 05:51 PM 6889-20_HS 27


What can you do:

Recognize outstanding Client Engagementsuccesses by recognizing the employee throughcommunications, dinners, cash awards, plaques,etc)

The company must appeal to their brains andhearts

Sr. management should strive for excellencethemselves, the employees will follow

Avoid the, Do as I say, not as I do syndrome

Ensure employees know their contribution is

important to the overall missionEnsure quality is everyones job

Ensure quality is reported to all employees

Reward and recognize employees for high levels

of quality

E i E l L l 4 Wh t


28/41

01/10/11 05:51 PM 6889-20_HS 28

Build their self-esteem with positive feedback

A recent Gallup study concluded if employees are

happy in their work and their talents are matched to thejob led to a 20% increase in sales

Promote fairly linked to performance

Help employees grow, reach their goals and assist themwith education

Sr. Management should partner with employees so theirsno us and them it becomes we

Foster Mentor Programs

Level 4-6 units train level units 1-3

Level 5-6 Retreat to ascertain what they are doing, thenreplicate

Build relationships through off-site family-get-togethers justfor fun

Treat employees like part of a large family

Treat them special and be on your best behavior, just likeon your first date with someone you really like and want toimpress

We want engaged employees not just satisfied ones.

Engaging Employees Level 4 WhatYou Can Do:

S tt Pl t f O ti i ti t


29/41

01/10/11 05:51 PM 6889-20_HS 29

Scatter Plot of Optimization toClient Employee Surveys

Customer and employeeengagement interact to promotean enhanced level of financialvigor throughout the organization.This relationship is depictedgraphically by plotting individual

stores scores on these metricsalong two axes representing localemployee and customerengagement scores, with eachdot representing an individualstore in the chain. By looking atthe scatter of the points, itseasy to see the considerable

variation in performance onemployee and customerengagement at the local level.

Scatter Plot of Individual Stores Scores

(Customer Engagement vs. EmployeeEngagement)

Source: Gallup

Partially Optimized StoresNon-Optimized Stores

Optimized StoresPartially Optimized Stores

Low HighQ12 Employee Engagement

Low

High

CE

11

CustomerEngagem

ent


30/41


31/41

01/10/11 05:51 PM 6889-20_HS 31

31

2

2.2

2.4

2.6

2.8

3

3.2

3.4

3.6

3.8

4

4.2

4.4

4.6

4.8

5

2 2.2 2.4 2.6 2.8 3 3.2 3.4 3.6 3.8 4 4.2 4.4 4.6 4.8 5

teams significantly increased

no relevant change

teams significantly lowered

CSC Germany

Gallup 75. Perzentil

Changes of engagement at team level

143 teams with total average last years comparison: average improvement is 0,23

Gallup 75. P. 2008 = 4,24

Gallup 75. P.

2007 = 4,21

1st wave grand mean

2ndwav

egran

dmean

Copyright 2008 Gallup, Inc. All rights reserved.

How does HS and


32/41

01/10/11 05:51 PM 6889-20_HS 32

How does HS andL6S Integrate?

The company has to have the desire tochange (baseball story)

Align L6S Projects with HS strategic initiative

Passionate Executive sponsorship

An endorsed Project charter

Knowledgeable and excited team

Provide an amnesty program Provide an effective award program

Set realistic goals

Apply Lean first

Belts must have time to work projects

If a manager will not get onboard, improveeverything around them so their poorperformance is obvious and the boss makesthem comply.

Lessons Learned


33/41

01/10/11 05:51 PM 6889-20_HS 33

Only apply the tools that fix the problem-not the entire arsenal.

Deliver low-quick wins, then continue the longer projects Assemble a passionate team willing to visualize the steps,

count the cost, pay the price, and never give up!

Develop a phased approach for large improvements

Conduct follow-up meetings

Share the results of projects and the entire program

Train all Sr. Management at the Awareness or Championlevel and include HS.

Ensure finance measures the results, not L6S practitioners

Put a strong board in place and control the program (especiallyfor Global companies)

Eliminate the defect or very strong C in DMAIC (Hawthorne

Effect)

Lessons Learned(right up front)

H Th All Fit T th


34/41

01/10/11 05:51 PM 6889-20_HS 34

How They All Fit TogetherMethodology Analogy

DesignforSixSigma

Lean

SixSigma

Kaizen

Lean/Six

Sigma

HumanSigma


35/41

01/10/11 05:51 PM 6889-20_HS 35

Taking the First Step Toward Change

Who moved that leg?

The first step is the hardest the30 hall

The miracle walk

The row across America

Jon at USNA

Challenge yourself and others todeploy improved processes usingL6S aligned with Human Sigma

Dont give up until the change is inplace

You have to crawl beforeyou can walk, run, or fly

Walking Through Adversity Author Rob


36/41

01/10/11 05:51 PM 6889-20_HS 36

Walking Through Adversity, Author RobBryant, Published by HCI


37/41

01/10/11 05:51 PM 6889-20_HS 37

A Few Endorsements

Former First Lady Barbara Bush: I am so glad to have this opportunity to send my warmestgreetings and congratulations to Rob and Wanice Bryant. Rob's determination certainly is anenormous inspiration. George joins me in sending our very best wishes.

Governor Arnold Schwarzenegger, California: Congratulations on your accomplishment of a crosscountry trip on a row-cycle. That was a monumental achievement, and I wish to congratulate you onboth your mental and physical endurance. I deeply admire what you have done!

Tom Landry, Former Dallas Cowboys Head Coach: Rob is a coachs kind of guy, he never quits.Rob set two world records even though he is paralyzed from the waist down. He is a man of faith,and I am looking forward to walking with him in heaven some day. (Quote from a network programwhich Tom Landry hosted.)

Author and Speaker Zig Ziglar: Rob Bryant is an effective speaker! He had our staff laughing oneminute and crying the next. He is an inspirational man who, by example as well as a very effectivepresentation, is able to give encouragement and hope to those who have the privilege of listening tohim. He will be a hit with your group. Robs message is timely and challenging one that you willlong remember. Rob has a champions heart and is an encouragement and inspiration to us all.

Author and Aerobics Authority Kenneth H. Cooper, M.D.: "Rob, I am overwhelmed by youraccomplishment in the face of unbelievable obstacles! You are worthy of the highest praise formotivating millions of people to improve their health and fitness.


38/41

01/10/11 05:51 PM 6889-20_HS 38

A Few Endorsements (Contd)

Minister Joni Erickson Tada: Rob believes that we should never give up! God has given us the abilityto either accept our situation, or change it. (Quote from a broadcast)

USA Todays Ben Brown: The next time you moan about 20 minutes on an exercise bike, think aboutRob Bryant, a 35-year old aerospace engineer, who has just finished a four-month, 3,280 mile workouton an oar-equipped tricycle ... Though paralyzed from the waist down, he also pushed and pulledhimself with crutches over 24 miles from Fort Worth to Dallas!

Former Senator Chuck Robb, Virginia: Rob, it is with great pleasure that I congratulate you for holdingtwo world records and am honored that I could greet you at the finish line at the Capitol.Congratulations to you and your family.

Former Governor William Donald Schaefer, Maryland: It is with great pleasure that I congratulate you.This grueling journey, which more than tripled the previous world record, is an outstanding andinspirational achievement. I hope you are as proud of your Maryland roots as we are of you.

State Senator Roy Dyson, Maryland: Mr. Speaker, I rise today to pay tribute to [Rob Bryant's employer]and to Rob Bryant. Rob Bryant has been a paraplegic since 1982 when he fell 55 feet from an oil rig.Despite his handicap, he has just completed a courageous 3,280 mile Row Across America. Mr.Speaker, it is both an honor and a pleasure to salute Rob Bryant today.

Former Congressman Pete Geren, Texas: Mr. Speaker, strength and perseverance rolled into townthis week in the heart of Rob Bryant. He has just completed a 3,280 mile journey from Los Angeles toWashington, DC on a hand propelled row cycle. Rob Bryant is an author and stands tall in our eyes. Heis truly an inspiration to all of us.

Senator Kay Granger, Texas: I commend you for your past and future accomplishments, yourgenerosity, and for being the special person for whom we all have the greatest respect and admiration.


39/41

01/10/11 05:51 PM 6889-20_HS 39

Business Accomplishments

CSC Corporate Vice President for Quality

Assisted DynCorp in increasing revenue from $900M to $2.1B in just fouryears as a direct report to the President

Certified Six Sigma Master Black Belt Trainer; led over 100 teams andstudies resulting in over $100M in savings/revenue/improvements for all

divisions of CSC

Malcolm Baldridge Sr., Examiner for the National MB Award for the Dept.of Commerce assessing quality for the President of the United States

Served on the President Bush Business Advisory Council for two years

Served as an editor for a book called Quality for Dummies and has

written several published articles/papers for journals such as QualityDigest, Six Sigma Magazine, and others

Quality Certifications include ISO-9001:2000, TQM, ProcessManagement, ITIL, CMMI, Six Sigma Master Black Belt, BusinessExcellence, and Malcolm Baldridge


40/41

01/10/11 05:51 PM 6889-20_HS 40

Personal Accomplishments

Published author of three non-fiction books and negotiating with literary agent ontwo more (a fiction thriller and fictional love stories)

HCI (known for the Chicken Soup for the Soulseries) has now released Bryantslatest book, Walking Through Adversity

Motivational speaker with lnternational Speakers Bureau (RobBryant.com); hasspoken to over 500 business and civic organizations, churches, hospitals,universities, high schools, and many other groups

Two world records longest walk by paraplegic (24 miles); and rowing 3,280 mileson a row machine (Guinness Book of World Records, 1992-2000)

Nominated for Texas Businessman of the Year by the Texas RepublicanCommittee

Nominated as a National Republican Committee Honorary Chairman and

attended a dinner with President G.H. Bush in that capacity Past President of LeTourneau Alumni Association

LeTourneau University Instructor Principles of Self Management; AdministrationTheory and Practice; Strategic Management; Ethics and Entrepreneurship


41/41

Applying HS Into a L6S Program 1

Documents

Transcript of Applying HS Into a L6S Program 1