Getting Six Sigma into the DNA of Your Organisation

Getting Six Sigma into the DNA of Your Organisation.

By Paul Docherty, CEO of i-solutions.

Introduction Not all Six Sigma Programmes are Equal

My belief is that whilst it is relatively easy to start Six Sigma, it is much, much harder to make the transition the point that it becomes embedded into the fabric of your organisation. By embedded, I mean that systematic improvement, using Six Sigma methodologies, is not only pervasive throughout your organisation, but that it happens without corporate dictates or some deployment leader courageously fighting on a daily basis to make it happen. This white paper is about this challenge of getting Six Sigma into the DNA of your organisation. Its aim is to give people who are responsible for driving Six Sigma deployment some insights from our recent research which should help them to improve the sustainability of their Six Sigma programmes. It is largely based on a comprehensive survey of over 40 organisations which was carried out in 2002 by i-solutions (a leading provider of software to manage improvement programmes) to find out why some companies where succeeding with Six Sigma were many were failing.

Cancelled Not Perceived to Break-even Possible Break-even (No ROI Quantification) 12 10 6 Approximately 3 to 1 ROI Greater than 3 to 1 ROI

Figure 1 Macro Results from i-solutions Survey Whilst the macro results (see figure 1) from the i-solutions survey (which followed the fortunes of 43 companies who had started to deploy Six Sigma in, or before, 1999) showed dramatic differences in relative returns, the detailed interviews with deployment leaders revealed strong similarities in the emphasis and deployment approach of the more successful organisations. By piecing together feedback from various organisations, the survey team were able to build a simple causal model which integrated most of the learning from the more successful organisations.

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Getting Six Sigma into the DNA of Your Organisation

Improved Financial Performance

Increased Customer Satisfaction

continuous and sustainable improvement in business results effective performance management

Effective Project Execution

Skilled & Motivated People

Right Process, Infrastructure & Environment

supporting programme, process and knowledge management system

effective human resources

Effective Leadership

effective leadership

Figure 2 Causal Model behind the SSEM

Figure 3 The Six Sigma Excellence Model

Over time, and though use with various i-solutions customers, this causal model (see figure 2) has evolved into the Six Sigma Excellence Model (see figure 3) a comprehensive framework for assessing the health of any organisations Six Sigma programme.

Towards Joined-up Improvement - The Business Improvement Cycle

At the heart of the Six Sigma Excellence model is something that we in isolutions have christened The Business Improvement Cycle (see Figure 4) an
mission strategy business objectives
causal thinking

product/process capability

performance management
targets

key performance gaps

process execution

feedback

customer
expectations

potential impact

project selection

product/ process improvements

project execution

high leverage project opportunities

Figure 4 The Business Improvement Cycle

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effective process execution

effective project selection

effective project execution

Getting Six Sigma into the DNA of Your Organisation

integrated and closed loop approach to driving improvement that was observed in one form, or another, in all surveyed organisations that were successful in terms of relative ROI in their deployment of Six Sigma. This business improvement cycle is effectively a macro PDCA (Plan, Do, Check, Act) cycle which ensures, at the overall business level, that the effort we are investing into improvement is focused on business priorities, and the impact of that improvement effort is being continuously validated. The improvement cycle consists of four key sub -processes: Performance Management. The key inputs to the Performa nce Management process are the business objectives (what the business is trying to achieve) and the current performance of the business in terms of both operational process capability and customer satisfaction. The core purpose of the process is to evaluate whether the business is on track to deliver the required business results and to identify any performance-capability gaps that need to be addressed. Project Selection. The key inputs to the Project Selection process are identified improvement opportunities which can come from a number of sources. With an effective Performance Management process in place many will come directly from the performance-capability gaps (a more top-down approach) but they could also come from a more bottom-up (improvement ideas from employees) or outside-in (improvement ideas from suppliers, partners and customers or competitors) approach. The core purpose of the project selection process is to evaluate these ideas and select the portfolio of projects (existing and planned) which will deliver the maximum business benefit with the minimum risk given the financial constraints of the business. The outputs of this process are clearly defined project opportunities. Project Execution. The key inputs to the Project Execution process are the project opportunities themselves and the customer expectations on the process that is to be improved. The core purpose of this process is to deliver on-time, and to estimated cost, the expected tangible benefits. This process is complicated by the fact that unlike traditional projects, knowledge about the expected benefits and costs is only gained through the execution of the Six Sigma project. The outputs of the Project Execution process are changes to the business processes executed by the organisation. Process Execution. The key inputs to the Process Execution process come from the changes introduced during project execution and from the customers on-going feedback on process performance. The core purpose of this process is to manage and improve the operational processes based on measuring process capability and customer satisfaction. The output of this process is an on-going assessment of process maturity and customer satisfaction with the business performance.

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The effective implementation of this business improvement cycle means that improvement remains integrated with, and closely aligned to, the achievement of the business objectives. This in turn ensures that management stay engaged as the improvement actions that are being taken are the things that they believe will help them deliver the results they need to satisfy stakeholders. Just saying that it would be good to have such a closed-loop improvement process in place, however, is not enough to make it happen. To build such a management system we need to first lay the right foundations.

Building on Firm Foundations The Importance of Effective Leadership

Effective Leadership Do the behaviours and actions of leaders within our organisation inspire, support, enable and promote the implementation of Six Sigma?

One clear theme which echoed throughout our research was that it was ultimately effective leadership of Six Sigma programme that provided the foundation for a successful deployment. To help us discuss the different demands placed on leaders throughout the deployment of Six Sigma and to understand what the key X variables that led to effective leadership, we constructed a simple four phase Six Sigma life -cycle model (see Figure 5).

Considering

Initial

Scaling

Mature

Generate Enthusiasm Demonstrate Results Ensure Sustainability

Maximise ROI

Figure 5 Leadership Priorities through the Six Sigma Life -cycle Using this model as the basis of discussion it became clear that not only did the priorities of leaders change during the deployment of Six Sigma, but the demands placed on leaders to ensure the success of the deployment particularly the executive team were considerable both in terms of time and effort required (over 10% of leadership time was spent on Six Sigma deployment in more successful organisations see Figure 6).

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When questioned as to why leaders, did, or did not take an active role in leading the deployment of Six Sigma, many deployment leaders discussed a systemic problem which we refer to as the Urgent Not Important trap.
Link succession plans and mgmt development to Six Sigma Drive systematic replication of best practices Invest in training of project sponsors Spend time tuning the reward/recognition and retention system Invest in training all employees in process thinking/problem solving Invest in training belts and leaders in Design for Six Sigma Invest in training of process owners and green belts Spend time communicating early successes Release some of the best people you have from their day jobs Commit cash up -front To train and coach the belts Invest in developing effective systems to capture the VOC Spend more time dealing with resistance to change Invest in internalising training Spend time dealing with resistance to change Invest in systems to track and manage processes Invest in systems to deploy dashboards and measure processes Invest in systems to track and manage the programme Spend time building dashboards and baselining processes Demonstrate personal commitment by actively sponsoring projects Spend time to develop and agree a deployment plan

To Sustain It

To Scale It

To Launch It

Commit cash up-front to educate the senior team Put in time to select, scope and mobilise projects

Commit cash up-front to train and coach and equip the belts Spend time communicating what, when, how and why

Figure 6 Role of Leaders in each stage of the Six Sigma Life-cycle This trap is illustrated in figure 7. It is essentially the difficulty of being able to free yourself from the day to day urgent activities (the inevitable result of bad processes) enough to be able to focus on removing the cause rather than alleviating the symptom (an important ac tivity).
The Urgent Not Important Trap It is satisfying to be in the urgent not important box Battles get won.. Boxes get ticked Nothing happens unless Im there Its a rush But

URGENT

Urgent and Not Important 15% Not Urgent and Not Important 5%

Urgent and Important 70% Not Urgent And Important 10%

High

Low

The swamp is not being drained as you fight the alligators + Serious long-term dangers People development ignored Management burn-out Competitors move while you stand still

Low

High

IMPORTANT

Figure 7 The Important Not Urgent Trap

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The problem lies in the fact that our work system encourages this situation to persist not only is urgent work fulfilling and satisfying (battles get won, boxes get ticked, I feel that if I wasnt around things wouldnt get done) but most organisations tend to reward and recognise those people who are good at it the people who get things done. This leads to the situation that many managers when faced with the choice of draining the swamp (i.e. investing their effort in Six Sigma which will at some point in the future make life easier) or shooting the alligators (dealing with the day to day issues which will generate sales and cash) will choose a bigger alligator gun. To break out from this trap we need to be able to create a work system which ensures that leaders do not just have the motivation to act, but also have the skills needed to act effectively. Much of the feedback from deployment leaders reinforced our belief that a supportive system was one in which there was not just appropriate rewards for getting results with Six Sigma but also where the key links between a) leadership behaviour and business impact through Six Sigma and b) getting results through the impact of Six Sigma and the rewards available to individual leaders universally understood (the basis of the motivation model). The key elements identified in our survey to ensure effective leadership are illustrated in figure 8.
Perception that the effort will deliver improved performance Perception that Improved performance will lead to the outcome

Define what needs to be done

Planning Skills Analysis Skills Visioning Skills Six Sigma Knowledge

Degree of Effort

Improved Performance

Value of Outcome

Align & motivate people to do it

Communication Skills Delegation Skills Mobilisation Skills

Create a supportive environment

Organisational Skills Systems Thinking Skills Behavioural Skills

Perceived value of the outcome

The knowledge and skill to act effectively The motivation to act

Figure 8 What Leaders Need to Be Effective

Developing the Capacity to Execute The Importance of Capable People and Systems
Effective Human Resources Do our people have the necessary motivation, competencies, time and alignment needed to successfully implement Six Sigma improvement projects?

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Whilst effective leadership (the driver) is a critical first step, our finding is that without an effective supporting infrastructure (the car) and capable human resources (the engine) needed to turn good project opportunities (the fuel) into business results (the destination), Six Sigma deployments are unlikely to succeed. In relation to human resources, (and in particular Black/Green Belts), it was quickly clear from our survey that the word effective and the word skilled were not equivalent (technical skills, were as one deployment leader, put it necessary but not sufficient). To be truly effective, human resources need to be capable (of which technical skills is a subset), motivated (in a similar way to leaders), available (meaning more than just having time available) and aligned (meaning they understand how their work contributes to the achievement of business objectives) (see Figure 9).
Effective = capable * motivated * available * aligned Capable means
Appropriate competencies (personal characteristics) Appropriate knowledge (understanding of context) Appropriate skills (task specific capabilities) Truly believe outcome of good performance will be positive and yield something they value Truly believe that they have the capability to perform well Having the necessary time to complete the work Having the necessary tools/resources to complete the work Having the necessary space to complete the work Having a shared contract on what the individual needs to achieve and why Having a clear understanding of how their actions will contribute to the achievement of the larger business goal

Motivated means

Available means

Aligned means

Figure 9 The True Meaning of Effective To better understand the nature of the competencies/skills required to be an effective Black belt, we analysed the different activities undertaken by Black Belts in a sub-set of the organisations we surveyed. The results of the analysis (see Figure 10) illustrated that the activities demanding the technical/statistical skills (which dominate the traditional Six Sigma syllabus) accounted from only a small percentage of the activities undertaken by Black Belts, with the remaining activities (80%) requiring predominantly softer skills (such as relationship building and team leadership) to be successful.

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A key conclusion from this feedback was that the real X variables behind capable resources lie in having appropriate acquisition processes, which while testing that Black/Green belt candidates have the necessary intellectual horsepower to understand and implement the more analytical tools, ensure that the focus is on testing for the softer skills which are often inherent in the individuals personality type and much harder to train in. Additionally, feedback from deployment leaders highlighted the importance of ensuring appropriate coaching support is in place as, with any significant body of knowledge, Six Sigma takes time to internalise and during the initial stages of a project intervention is required from experienced Six Sigma practioners to ensure it does not go off track.
Analysing Data (6%) Planning Work (14%) Process Investigation/ Discovery (36%)

Coaching/Facilitating Teamwork (26%)

Communicating with Stakeholders (31%)

Figure 10 What Do Black Belts Actually Do? Other key feedback from deployment leaders was the importance of effective succession planning in ensuring the availability of Black belts. More than one surveyed programme could trace problems with the deployment to Black belts who had not had their existing responsibilities transferred effectively, which in turn was traced to a lack of management understanding of their role and ultimately to weak leadership of the programme. In terms of motivation and alignment, the suggestion from our interviews is to ensure that Black/Green and team member education includes clarity on the relationship between effort, business results and individual/team reward and that the rewards are appropriate to the culture in which the individuals participating in the process operate. Effective Do we have system in place that enable us to manage the Improvement improvement cycle effectively as the programme scales? System

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Whilst information technology is not the only element of the infrastructure needed to ensure the successful deployment of Six Sigma (other elements include methodologies, tool templates, gate checklists, financial quantification rules etc), feedback from deployment leaders indicates that it becomes increasingly important as the programme scales from tens to hundreds if not thousands of projects. In the context of managing the business improvement cycle, it is not difficult to see why in a multi-national organisation running many Six Sigma projects such a systems infrastructure is required to ensure benefits are maximised and the programme is sustainable. Figure 11 illustrates some of the challenges reported by the organisations surveyed in each sub-process of the improvement cycle when they tried to scale up the programme within the organisation. Faced with these challenges many organisations we surveyed had implemented different systems (from spreadsheets, through simple databases through to enterprise wide web-based systems) to try to get a grip of the process and ensure that the work being completed was delivering benefits.
Scaling Challenges Managing the demand for measurement system automation Maintaining the moving picture of the organisations processes Maximising leverage of project solutions Scaling Challenges Ensuring alignment of improvement effort with business objectives Monitoring the impact of improvement projects on the key capability -expectation gaps
performance management

process execution

project selection

Scaling Challenges Ensuring consistent application of methodology Ensuring executive attention focused on the vital few Keeping Six Sigma on the management agenda

project execution

Scaling Challenges Avoiding re-invention of the wheel Consistently selecting high impact projects Maximising utilisation of skilled resources

Figure 11 There are Many Challenges as the Deployment is Scaled.. From their feedback, our conclusion was that the key issue lies in ensuring that the system implemented fits the improvement process being implemented (covering as much of the improvement cycle as possible) and in ensuring that organisation wide there is only one system so that the knowledge gained in execution can be leveraged to multiply the benefits generated.

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Capability to: Manage a graphical enterprise process model Automate key processes and automatically generate process performance metrics Track process capability improvements generated by the improvement project portfolio Automatically notify areas of potential leverage

Capability to: Define cascading dashboards Report performance in real -time Identify capability-expectation gaps Link dashboard measures to key processes Link dashboard measures to improvement projects

performance management

process execution

project selection
Capability to: Capture all project ideas/suggestions Automatically route ideas to the right people for assessment/evalutaion Automatically prioritise based of defined criteria Enable effective resource allocation based on skills and availability Enable a portfolio view of all planned and active improvement projects to be taken.

Capability to: Capture project information using methodology roadmaps as templates Automatically notify managers of events requiring their intervention Track project progress and financial benefits Enable remote collaboration with partners, customers and suppliers

project execution

Figure 10 System Capabilities Needed to Manage Scaling Challenges Based on the scaling challenges, the capabilities that organisations should expect in such as system are illustrated in Figure 12. Effective Performance Management Do we have a sustainable process in place which translates business objectives, previous performance and future Customer expectations into opportunities for improvement ?

As a whole, our analysis showed that it was how effectively organisations had implemented the business improvement cycle that was ultimately the key differentiator between those organisations which were getting good results from Six Sigma and those who were getting exceptional results. Particularly important in terms of maximising the ROI from the programme was the effectiveness of what we subsequently have christened the Performance Management subprocess, which essentially ensures that our portfolio of improvement work remains aligned with and is having an impact on achievement of business objectives. Whilst there was a number of different approaches taken by the organisations we surveyed, in essence those that were more effective shared three core concepts the use of causal thinking combined with process yield analysis to identify key operational measures, the implementation of a balanced set of metrics with customer driven targets, and the implementation of a closed-loop measurement system to monitor performance against targets.

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Getting Six Sigma into the DNA of Your Organisation

Many deployment leaders stressed the problem of poor project identification, the cause of which could be traced to ineffective Performance Management caused by leaders not having the necessary causal thinking skills to effectively breakdown the business goals in process drivers and ultimately, through ongoing measurement into performance-expectation gaps (see Figure 13). In addition to the importance of training leaders and managers in causal thinking, we observed a strong importance placed by the more s uccessful organisations of ensuring that each business unit had dashboard (in many cases using the balanced scorecard model) in place and ensuring that each measure on each dashboard was a) linked via causal thinking to the overall business objectives, b) owned by a process owner with responsibility to change the process in question and c) linked through a closed loop directly to programmes and projects that were attempting to move the relevant dial. In terms of ensuring a closed-loop measurement system a few organisations surveyed had implemented a form of MAAR (Measure, Analyse, Action and Review) chart which ensures for each measure that the process capability of the process in question and the effectiveness of the actions identified and implemented to address special and common cause variation are monitored on an on-going basis.
Shareholder Value
Cash (Profit) From Operations

Capital Employed Working Capital Overhead Costs Fixed Assets

Revenue

Costs

Cost of Sales

Increase bid yield Reduce sales compromises Optimise product mix Reduce time to market Improve market pricing

Increase on-time delivery Reduce product/service defects Improve forecast accuracy Increase production efficiency Reduce purchase defects Reduce process delays

Increase sales efficiency Reduce non -value added Reduce time to recruit Increase staff retention Improve IT service levels Increase marketing efficiency

Reduce time to invoice Reduce time to collect cash Reduce procurement time Increase time to manufacture/ship

Increase production efficiency Reduce storage space Increase asset utilisation Improve capacity forecasting

Figure 13 Applying Causal Thinking to Business Objectives Our synthesis of the various practices suggested that a particular powerful approach to Performance Management would be to use the MAAR chart approach to drive improvement opportunity identification in combination with a balanced dashboard which has been developed through strong causal thinking from the business objectives and which features customer targets for each measure which are based on effective VOC (Voice of the Customer) analysis (Figure 14).

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By implementing a dashboard for each business

Financial Customer

And a MAAR chart for each measure

Business Results Measures

Customer Satisfaction Measures

Measure

Action

M A

A R
Review

Analyse

People

Process

Skilled and Motivated People Measures

Process Execution Measures

We can monitor our performance and validate the effectiveness of the actions we are taking.

Figure 14 Using Dashboards and MAAR charts to Achieve Closed-loop Management Effective Project Selection Do we have a sustainable process in place which helps us to prioritise and select the improvement opportunities that Six Sigma can help us with?

While effective Performance Management can ensure that the work identified remains aligned with the business objectives, effective project selection is key to ensuring the resource invested in implementing Six Sigma projects is targeted on those opportunities which will yield the greatest business benefits (in terms of both achievement of objectives and top/bottom line benefit). Figure 15 illustrates how effecti ve project selection can drive ROI.
Project Cycle Time Select projects with appropriate output frequency Select projects with high leverage potential Select projects with have a supportive environment Improve the utilisation of scarce skilled resource (black belts) Minimise false starts and aborted projects

Net Savings/Project

ROI

%Successful

Number of Projects

Programme Cost

Figure 15 How Does Effective Project Selection Drive ROI? i-solutions White Paper Page 12 of 18

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In virtually all of the organizations we surveyed we were able to identify a basic process for funneling project opportunities for evaluation and selection. In the more effective organizations, this opportunity funnel was clearly identified and had a strong information system support to ensure that ideas were collected from the widest population possible (including partners, customers and suppliers) and ensuring that they were evaluated quickly and efficiently. Figure 16 is effectively a synthesis of the best practices used in the different organizations surveyed. Whilst many evaluation and selection criteria were suggested by deployment leaders, a few were given particular emphasis. Virtually all interviews highlighted the importance of output frequency (the number of process outputs that can be measured in a given period) as a key determinant of project feasibility as in practice few projects can be completed by relying on historical data alone. Other key factors highlighted by deployment leaders, in addition to the mandatory evaluation of potential cash/profit impact, included the leverage potential of the opportunity (the degree to which the successful improvement could be replicated throughout the business and the degree of sponsorship from an individual who has a majority responsibility for the process being improved.
project ideas from employees project ideas from project ideas from capability-expectation customers, partners and suppliers gaps

Opportunity Capture

Alignment Filter Feasibility Filter Financial Filter Project Scoping

Project Allocation Project scoped

Project Qualification

Project staffed

Project Selection

Figure 16 The Project Opportunity Funnel Whilst individual criteria for evaluation and selection where considered important by virtually all organizations, there was some indication that the more successful organizations had also taken the logical next step of managing the opportunities as a portfolio focusing on the ensuring a balance within that portfolio with respect to, for example, top-line vs. bottom line improvement, customer driven vs internally driven projects as well as ensuring that the number of projects implemented was balanced with resource (people and cash) constraints. Effective Project Execution Do we have a sustainable process in place which ensures that maximise the benefits for every pound/euro/dollar invested in project execution? Page 13 of 18

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Like effective selection, effective execution can have a significant impact on the ROI generated on any organizations Six Sigma investment. Figure 17 illustrates the impact that improving project execution can have on ROI.
Project Cycle Time Reduce time spent waiting for roadblocks to be cleared and time wasted in blind alleys Ensure that the targeted benefits are actually realised Kill projects which are unlikely to realise benefits early and refocus those which are going off-track Minimise the time spent in unnecessary progress reviews Minimise the time and effort spent on unnecessary reporting

Net Savings/Project

ROI

%Successful

Number of Projects

Programme Cost

Figure 17 How Does Effective Project Execution Drive ROI? Effective project execution was one aspect of the improvement cycle that all surveyed organizations could provide significant input. One overall theme that emerged from our discussions with deployment leaders was that effective execution was in many ways tied to the consistent application of the methodology, which in itself was driven by consistent implementation of gate reviews (the main check in the process that the methodology is being applied systematically). One key finding was that many organizations found a key problem in terms of not following the methodology effectively to be not as one might expect the lack of skills and experience of the Black Belt, but rather the lack of skills and experience in the project sponsors who would often bend the methodology/project to fit their intui tion and desired result.

Establish Causal Drivers

Prioritise Define the the Drivers Defect(s)

Generate Potential Xs

Collect the Data

Analyse the Process

Generate Potential Solutions

Select Best Solution

Pilot the Solution

Transfer the Solution

Control the Process

Realise the Gains

GR0 Problem Identified

GR1 Defect(s) Defined?

GR2 Root Causes Understood?

GR3 Solution Workable ?

GR3 Benefits Realised

M A

C C

Figure 18 Key Gate Reviews and Critical Decision Points in DMAIC Process

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A strong theme in the more successful organizations was therefore the training and mentoring of project sponsors to ensure that they understood clearly the dynamics of the Six Sigma process, and in particular whether the stage the team were currently in required a more creative approach/analytic approach and what was the key deliverable at each gate. Figure 18 illustrates the DMAIC process from a spons or perspective based on a synthesis of gate review approaches used in different organizations. This diagram (a similar diagram can be constructed for the design variant of the Six Sigma process) shows the opening stages (e.g. whether hypotheses are generated and solutions identified) and well as the closing stages (where analytical processes are used to determine the most likely defects, causes and solutions), within each phase and what the key deliverables of each hard gate are. Another key learning from our survey in relation to project execution was the importance of implementing an enterprise-wide benefit reporting and management by exception system as the deployment scales up. This has the benefit of ensuring sponsors stay engaged and drive projects firstly as they do not need to process large amounts of information to understand where their intervention is required and secondly because it transfers accountability as top management can easily see where there are roadblocks in benefit delivery and who in the management team has the responsibility for managing them. Interviews with deployment leaders also underlined the importance of institutional plagiarism being able to learn from and/or quickly and easily replicate the work of other project te ams, and being able to quickly and easily gain access to experts as key factors in accelerating deployment. Effective Process Execution Do we have sustainable processes in place to ensure that changes introduced as a result of Six Sigma projects are locked into day-to-day process execution and that these processes continue to be managed ?

One of the most puzzling aspects to the survey results was the difference, in the majority of organisations we surveyed, between the (often substantial) benefits reported and the consequent lack of positive movement in the Profit and Loss or Balance Sheet. Whilst some of this can be explained by other factors e.g. changes in market demand, our hypothesis (which is yet to be confirmed with hard data) is that the most likely cause of this benefit fall-off is ineffective transfer of responsibility for on-going process improvement from the project team to the team executing the process. Indeed a number of the deployment leaders reinforced this point, highlighting the fact that the percentage of people who participate in the actual execution of Six Sigma projects (especially in the early phases of deployment) is usually a small fraction of the total number of people in the organisation and an even smaller fraction of the people who are in the frontline i.e. directly interacting with customers (see Figure 19).

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Customer
Customer Interaction

Front Line Staff Middle Management Senior Management

Top Mgmt

People impacted by Six Sigma projects on a day to day basis

Figure 19 Why Process Execution is so Important Their conclusion in relation to this point was that until there was an effective system in place to engage the vast majority of people who actually execute the processes being changed in process thinking, not only would improvements be short-lived, but customers would perceive little improvement. Talking with deployment leaders it became clear that there are several systemic problems which lead to ineffective transfer of responsibility from the project team to the process team. The first is that the last phase of the DMAIC process is essentially boring. Many deployment leaders reported that Six Sigma project teams saw the critical activities of documenting and training implicit in the Control phase as laborious and often less exciting than the next project challenge (or even their day job). The second is that the process changes inherent in the improvement projects often mean significant personal changes in their work for the people actually executing the process. It is therefore unlikely that they will make the initial effort to adopt these without fully understanding and having a chance to understand the implications. The third is that implicit in the transfer of responsibility for on-going process improvement is a significant training effort (each member of the team executing the process needs to have an understanding of variation and the ability to interpret a control chart). To overcome these obstacles, several organisations we surveyed had started to implement process management education (to spread out in a targeted way a basic understanding of variation theory, how to implement simple process measurement and how to capture customer feedback on the process). Others had reinforced the importance of the Control phase gate as the final check on responsibility transfer - effectively not allowing project teams to be decommissioned without confirmation from the team running the process that they had been fully enabled.

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Measuring Success Quantifying the Business Results

Business Results Is our Six Sigma effort really delivering a continuous and sustainable improvement in our business results?

In most organisations we surveyed, deployment leaders had implemented measurement systems to provide top management with visibility of the success of their Six Sigma programme. In the majority of these organisations the key measures taken related to the number of people trained, the number of projects completed and the value of benefits delivered. While interesting in themselves, our conclusion was that these measures (with the exception of training completed) were essentially lagging measures and did not reflect the real causal drivers of Six Sigma results. Figure 20 illustrates an alternative Six Sigma dashboard which reflects the different causal drivers and which could easily be combined with closed loop measurement to drive continuous improvement in the Six Sigma system.
By implementing a Six Sigma Dashboard
Financial Net Programme Benefits (Profit & Capital Employed Impacts) Net Benefits/Project Net Benefits as % of Revenue People Leadership Capability Index Belt Capability Index Number of Certified Belts, Sponsors, and Process Owners Customer Product/Service Capability Improvement Indices Customer Satisfaction Indices Measure net benefits that impact the P&L and balance sheet only Measure relative improvement in process capability not absolute process capability Measure customer satisfaction to validate process capability improvement Measure the key return on Investment drivers

Process Process Success Rates Project Lead-times Project Leverage Index Project Productivity Index

Measure the underlying organisational capability

Figure 20 How Do You Measure the Success of a Six Sigma Implementation?

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Summary
It is my hope that this paper has provided some useful ideas to help you further embed Six Sigma in your organisation. A free download of the Six Sigma Excellence Model (SSEM) workbook which details the criteria for each component of the model and provides a guide to scoring the health of your deployment is available in the visitor resources section of www.isolutionsglobal.com. If you have questions about this whitepaper, would like to discuss how i-solutions can help you meet you need for an integrated improvement management system or would like see further examples of best practice resources from each of the key elements of the SSEM, please contact myself or any i-solutions team member on +44 (0)8700 110621. About Paul Docherty : Paul is the CEO of i-solutions, the leading provider of software solutions to help manage improvement programmes. He was previously the deployment leader for Six Sigma within Marconi and is a firm believer in the application of systems thinking to the challenge of deploying Six Sigma in large organisations. He can be contacted on paul.docherty@i-solutionsglobal.com or by telephone on +44 (0)7985 117784 (mobile), +44 (0)8700 110626 (desk). About i-solutions: i-solutions helps organisations to get more from their investment in the critical business programmes such as Six Sigma, IT and R&D that drive growth and create value. They provide a range of enterprise software solutions, based on their flagship i-nexus product, that have been designed from the ground up to meet the real needs of Six Sigma VPs, CIOs, CTOs and other business leaders. Combining the latest web technology with powerful ROI driven functionality, these solutions are helping a growing number of global organisations to align their project portfolios with business objectives, accelerate the delivery of tangible bene fits and leverage what they learn in project execution. To find out more about how i -solutions can help you to reduce project cycle times, increase project success rates and cut the cost of managing your portfolio call +44 (0)8700 110621 or visit www.i-solutionsglobal.com

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