Strategic Approach to Organisational Excellence and Improvement

1. Strategic Approach to Organisational Excellence and Improvement Alan Skinner School of Management, University of Technology Sydney Director, Lean Six Sigma Business Excellence Institute Total Operational Excellence 23-24 August 2012 Melbourne THINK.CHANGE.DO

2. Agenda • The Excellence / Improvement or Lean Six Sigma Frameworks: A Paradigm fading? • Driving sustainable high performance through Lean Six Sigma in the context of Organisational Excellence • Creating a value stream fit to market • Highlighting the importance of deploying 5 leadership practices to drive excellence and improvement • Highlighting the recent research results on Lean Six Sigma practices

3. Excellence Frameworks

4. Influence of Edwards Deming Systems view of an organisation

5. Sustainable high performance comes from … ..quality / price suited to the market Customer Focus ..predictable.. dependability.. Six Sigma idea ..low cost.. Lean idea

6. STRATEGIC Implications of Deming’s Ideas Design the Value Stream to Fit the Market Execute to the Design

7. Role of Improvement capability BUT… Many factors influence success – good quality being delivered

8. Role of Improvement capability Gap between ideal and practice So need Continuous Improvement Always changing, adapting, improving Lean Six Sigma is a way of closing the Gaps that delivers results

9. Reframing Lean Six Sigma – Improvement Lean Six Sigma is a way of closing the Gaps that delivers results So Lean Six Sigma can be seen as “bringing about change that is a measurable improvement and can be sustained”

10. History of Improvement Methodologies Long before Lean and Six Sigma became BUZZ words they were part of the original teaching of Deming He never separated the ideas !!

11. Influence of Deming and Business Excellence Frameworks Six Sigma - Motorola - Bill Smith – mid 1980s Lean - Toyota Popularised in many companies Family of approaches develop : Core Model is DMAIC Move to Lean Six Sigma History of Improvement Methodologies

12. History of Improvement Methodologies Influence of Deming and Business Excellence Frameworks

13. Organisational Excellence Models Strategic Thinking, Management and Execution Enabling People to Work on the Organisation Balanced Sustained High Performance that Delivers Value to all Stakeholders Leadership Creating Environment for Excellence Gathering and Deploying Customer and Market Intelligence Sustaining Operational Excellence Integrated System of Measures consistent with Strategy and Design

14. Key Supporting Models Practices and Tools Customer Experience Design Interlinking Critical Measures Strategy Maps Value Stream Design Balanced Scorecards Strategic Thinking, Management and Execution Enabling People to Work on the Organisation Balanced Sustained High Performance that Delivers Value to all Stakeholders Leadership for Business Improvement (LBI) Leadership Creating Environment for Excellence Organisational Excellence Assessments Gathering and Deploying Customer and Market Intelligence Sustaining Operational Excellence Lean Six Sigma / Organisational Improvement Methods Integrated System of Measures consistent with Strategy and Design Business Process Management (BPM) System or Family of Measures Customer Experience (TCE) Research Stability and Capability Analyses

15. 1 4 Planning for Improvement Purpose System for Obtaining Info 3 • Purpose • Mission • Vision • Governance • Strategic objectives • Improvement efforts • Resources Black Belts Green Belts Managing Individual & Team Improvement Efforts 2 Systems View of the Organization Improvement Plans Family of Measures/ Scorecards 5 Financial Customer Enablers Operations Employee Training…Recognition… Communication 5 Activities for Leaders to Focus the Organisation on Improvement Model is based on Content from “Quality as a Business Strategy” (API, 1998)

16. Myths about Lean Six Sigma • Recent Management Fad • Very tactical or operational • Focused internally • Suited only to manufacturing • No room for Creativity

17. Research and Literature Projects Submitted Journal Literature

18. Highlighting Research from Projects Submitted • 150 + projects over years • Sample 30 taken • Quick review of patterns emerging

19. Breakdown of Projects by Industry

20. Breakdown of Projects by Process

21. Breakdown of Projects by Problem

22. Frequently Cited Causes

23. Frequently Cited Solutions %

24. Level of Impact of Projects – from Baseline

25. Range of ROI Cited

26. Research and Literature Projects Submitted Journal Literature

27. Reviews of Research and Literature • Conceptual Discussion, Opinions, Research • Reviews and Studies over 4 decades 1970s -2012 • 500+ articles • Different Industries • Different Countries

28. Overview of Research Coverage • Conceptual Discussion and History reviews • Theory and Model Building • Critical Success Factors Link to Results • Measurement, Analysis, Tools, Models • Innovation and Design of Experiments • Action Research, PDSAs, Learning and Change • Application settings for Lean/Six Sigma • Organisational Excellence – broader area

29. Critical Success Factors – Research Literature Management Commitment Project Selection Reward Recognition Stories Competency of Belts Dashboard Investment Culture Assessment of Results

30. Critical Success Factors – Research Literature Management Commitment Link to Strategy & Project Selection Reward Recognition Stories Competency of Belts Dashboard Investment Assessment of Results Culture

31. Critical Success Factors – Research Literature Other Factors Understanding Customers Understanding Business Infrastructure and Resources Tools and Methods Skills and Training Application Beyond Core Communication

32. Success Factors Themes from Project Reports

33. Thank You Questions Interested in Research Participation Please contact me

34. Frequently Cited Causes