What to Expect from Lean Six Sigma in the First Year of Deployment September 21, 2009 IQPC 5 Th Annual Process Excell

1. What to Expect from Lean Six Sigma in the First Year of Deployment September 21, 2009 IQPC 5Th Annual Process Excellence Week Jennifer Ralston, CEO & Owner

2. Agenda The Critical X’s of Deployment What to Expect of each Critical X 30 Minute Break (10:00-10:30AM) Six Essential Themes Common Failures Deployment Checklist Keys to Success Questions & Answers Session

3. Ground Rules for Workshop • Interactive Discussion is a Must • Please Participate in Discussion • Ask Questions • Open Dialogue is Welcome • Others?

4. Y = Successful Deployment X1 = Leadership Commitment X2 = Project Selection X3 = Black Belts Selection X4 = Fully Dedicated Black Belts X5 = Champion Engagement X6 = Master Black Belt Support X7 = Organizational Tools X8 = Sustaining Infrastructure Scale 100 % 75% 50% or less

5. X1 = Leadership Commitment • Leadership must be engaged at Day 1 and Steer the Ship North

6. What to Expect X1 = Leadership Commitment • Pitch: Some Leaders will not buy in to Lean Six Sigma, be prepared to Put on your Salesman Hat • Results: Leaders will want to realize the benefits of the projects quickly, Tie Savings to the Bottom-line by Partnering with Finance • Success: Leaders want results fast, Show early Successes and Pick the Right Projects to allow for this

7. X2 = Project Selections • Selecting the right projects is key to establish early successes and gain buy-in • Align Six Sigma projects to critical business and customer strategies and operating goals • Establish a documented process for a 1-year Six Sigma project hopper refresh

8. X2 = Project Selections • Establish projects of appropriate size and scope, along with significant savings • Assign a Champion and Black Belt to each project and outline expectations for accountability upfront • Implement a project tracking system to facilitate replication and reuse, this will save you effort in the long run and ensure visibility

9. X2 = Project Selections Idea Generation Definition Prioritization Execution All Projects Must Pass Through a Strategic Filter.

10. What to Expect X2 = Project Selections • You won’t always pick the right project; Don’t be scared to stop a project that may have been the wrong choice • People will bring Pet Projects to the table • Show early Successes

11. X3 = Black Belts Selection • Black Belt Attributes are essential • Be sure to do rigorous interviewing to select the right belts • Utilize Predictive Index

12. What to Expect X3 = Black Belts Selection • Proper mentoring and coaching from the MBB and Champion will develop good belts • Be sure to select the number of Belts that is a good fit for you to manage

13. Key Belt Attributes

14. X4 = Fully Dedicated Black Belts • Until Deployment Maturity develops it is highly recommended to have your Black Belts be Full Time Positions • Standardize Job Descriptions upfront • Create a Career Ladder so Belts can see the road to growth either into a Business Leader or an MBB

15. Career Ladder

16. What to Expect X4 = Fully Dedicated Black Belts • It will be hard to keep Belts focused • They may not fully transition themselves from their old job • If they are split between two roles they become jugglers, avoid this

17. Breakout Groups • Break into groups by Deployment Age; i.e.: 6months, 1 year, 1 ½ years, 2 years • Discuss Your Experience with Critical X1 - X4of Deployment and any actions you have had to take • Each Group should be Prepared to do a 5-7 minute Report Out on their discussion

18. X5 = Champion Engagement • Set expectations upfront, Champions need to be involved and remove barriers • Must have Weekly and Biweekly Mentor meetings with MBB and BB • Ensure Steering Committee Involvement

19. What to Expect X5 = Champion Engagement • Mentor and refresh Champions of needed tools • Remind them of expectations they committed to if they become inactive • Ensure your Champions are equipped with the right questions to ask at each DMAIC Tollgate

20. X6 = Master Black Belt Support • Developing and Selecting the right MBB candidates upfront is critical to sustainability • It’s okay to supplement with consultants at the beginning, but plan to self sustain when appropriate • Use the same rigorous process to select MBBs that you do for BBs

21. What to Expect X6 = Master Black Belt Support • MBBs should be future leaders of your Company, develop them as such • MBBs need to have a planned time to exit back into the organization as a business leader

22. X7 = Organizational Tools • You may need consultants to start • Plan for Training Materials and Training Sessions • Create a Process for Certification of GBs, BBs and MBBs • Ensure a Process for Project Selection, Project Review, Belt Selection • Create Visibility with a Dashboard • Visible, Consistent Support and an Active Communications, Reward and Recognition

23. What to Expect X7 = Organizational Tools • Developing these tools for sustainment takes time, be sure to dedicate time to this upfront, possibly even assigning an MBB(s) or BB(s) to these tasks

24. X8 = Sustaining Infrastructure Leadership Team Project Champion Project Champion Master Black Belt Black Belt Black Belt Yellow Belts Green Belt Green Belt A Sustaining Infrastructure Must Have Senior Management’s Support and Guidance.

25. X8 = Sustaining Infrastructure

26. What to Expect X8 = Sustaining Infrastructure • Steering Committee Reviews with the appropriate stakeholders is key to ensure project awareness and to share touch points • Top level leadership must have oversight of the deployment and keep track of the health • Functional owners need to own their deployment and sustain the infrastructure and results

27. Breakout Groups • Break into groups by Deployment Age, i.e.: 6months, 1 year, 1 ½ years, 2 years • Discuss Your Experience with Critical X5 – X8of Deployment and any actions you have had to take • Each Group should be Prepared to do a 5-7 minute Report Out on their discussion

28. Break Time! 30 minutes

29. Six Essential Themes • True Focus on the Customer • Data and Fact Driven Management • Process Focus, Management and Improvement • Proactive Management • Boundaryless Collaboration • Drive for Perfection, and yet a Tolerance for Failure

30. Management & Company Failures

31. Management & Company Failures (continued)

32. Management & Company Failures (continued)

33. Management & Company Failures (continued)

34. Breakout Groups • Break into groups by Deployment Age, i.e.: 6months, 1 year, 1 ½ years, 2 years • Discuss Your Experience with these failures and/or how you have avoided them • Each Group should be Prepared to do a 5-7 minute Report Out on their discussion

35. Master Black Belt, Black Belt & Green Belt Failures

36. Master Black Belt, Black Belt & Green Belt Failures (continued)

37. Master Black Belt, Black Belt & Green Belt Failures (continued)

38. Master Black Belt, Black Belt & Green Belt Failures (continued)

39. Breakout Groups • Break into groups by Deployment Age, i.e.: 6months, 1 year, 1 ½ years, 2 years • Discuss Your Experience with these failures and/or how you have avoided them • Each Group should be Prepared to do a 5-7 minute Report Out on their discussion

40. Launch Phase Year 1-2 To Do • Executive Interviews • Implementation Leader(s) and Sponsor(s) Selected • Executive Management Training • Define Year 1 Implementation Plan • Core Deployment Team Selected and Trained • Define Deployment Strategy and align with business needs SCHEDULE & TIMING 2-3 Months

41. Launch Phase, continued • Develop Communications Plan • Establish Management Buy In and Commitment • Budgeting • Engage and Train Finance • Engage and Train HR • Establish Process Metrics with System Dashboard • Initiate Bonus Program • Train Initial Champions • Establish 3 Year Plan SCHEDULE & TIMING 2-3 Months

42. Implementation Year 1-2 To Do • Communications Plan Executed • Identify First Projects • Train First Wave of BB’s • MBB Support • Infrastructure Completed • Integrate Finance • Integrate HR • Launch Initial GB Training • Six Sigma Metrics Established SCHEDULE & TIMING 9-24 Months

43. Implementation Year, continued • Measurement and Tracking Systems Established • Train Functional Management • BB Certification Process Established • Champion Refresher Training • Train Initial MBB’s • Begin All Employee Awareness Training • Monthly Leadership Reviews • First Recognition and Rewards Event • Pilot Customer Engagement Process SCHEDULE & TIMING 9-24 Months

44. Institutionalizing & Sustaining

45. 12 Keys to Success • Tie Lean Six Sigma Efforts to Business Strategy and Priorities • Position Lean Six Sigma as an Improved Way to Manage Today • Keep the Message Simple and Clear • Develop Your Own Path to Lean Six Sigma • Focus on Short-Term Results • Focus on Long-Term Growth and Development • *The Six Sigma Way

46. 12 Keys to Success (continued) • Publicize Results, Admit Setbacks, and Learn from Both • Make an Investment to Make it Happen • Use Lean Six Sigma Tools Wisely • Link Customer, Process, Data, and Innovation to Build the Lean Six Sigma System • Make Top Leaders Responsible and Accountable • Make Learning an Ongoing Activity • *The Six Sigma Way

47. Here’s To Your Deployment!!

48. Jennifer Ralston, CEO & Owner HKPO Lean Six Sigma Experts 443-618-2518 jlralston@hkpproactivesolutions.com