2/12/2015. Lean Six Sigma For Law Firms. Debbie Foster Affinity Consulting Group. Why are we here? Process. People. Technology

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1 Lean Six Sigma For Law Firms Debbie Foster Affinity Consulting Group Why are we here? People Process Technology 1

2 Solving Problems with Technology What we know What we don t know What we don t know we don t know What Is Lean Six Sigma? LEAN LEAN SIX SIGMA SIX SIGMA Why Lean Six Sigma? Eliminate Waste Increased Profitability Benefits Eliminate Mistakes Happier Employees Delight Clients 2

3 Focus. VALUE Who Defines Value? The Client 3

4 How Do You Define Value? 1. It changes the client s situation 2. The client is willing to pay for it 3. It s done right the first time. Why It Doesn t Work Another Take He who would learn to fly one day must first learn to stand and walk and run and climb and dance; one cannot fly into flying. - Friedrich Nietzsche 4

5 The Discipline of Market Leaders Technology People Process Operational Efficiency LEAN SIX SIGMA TOOLS Most Helpful Tools Understanding Waste Business Process Improvement (Process Mapping) Identifying Root Causes 5S 5

6 Extra Processing Defects Over- Production Motion 8 Deadly WASTES Waiting Inventory Transport Nonutilized talent Defects How many times have you written off your time or the time of your associates or paralegals because you knew you couldn t charge your client for fixing mistakes? Overproduction REMEMBER: If you re not adding value, you re creating waste! 6

7 Waiting Question: How much valuable time does your firm lose as a result of waiting? Answer: Too much Non-Utilized Talent ONE SURE FIRE WAY TO KILL MORALE IS TO IGNORE THE TALENTS YOUR PEOPLE BRING TO THE OFFICE EACH AND EVERY DAY Transportation When files move from office to office, and that is how people know what to work on that day, there is an inefficient process at play. 7

8 Inventory If you want to find a bottleneck in a law firm, look for the office with the piles of files. Guess who the bottleneck usually is. YOU. Motion Wasted motion can also create the sense that people are busy. But being BUSY doesn t mean you re adding value. Extra Processing Extra processing DOES NOT CREATE VALUE. It INCREASES COSTS. 8

9 BUSINESS PROCESS IMPROVEMENT You Know What It Is 9

10 Another Focus Cash Flow/Profitability 2 Sources External Customers Internal Processes Problem Solving Process D Define the problem M Measure the problem A Analyze the root cause of the problem I Improve the process C Control the process 10

11 Another Take F Focus on the specific problem I Improve the process S Sustain the improvement H Honor your progress But HOW Do You Do It? With the right people With the right facts At the right time With the intention of incremental improvement Process Mapping Why Process Map? It is critical that you start with understanding and analyzing your current way of working Only then can you redesign and improve You will be able to use the process/model as a way to implement standardization in the way you work You can better communicate with other internal groups and external entities It is a great way to train new employees 11

12 What is a process map? A process map describes in detail a series of steps or actions that when executed properly, deliver an output with a predictable outcome Everyone works in the process Maps are a visual way of describing the process A learning opportunity that can bring a team together to really analyze how the work gets done What use is process mapping? Identifies The way you CURRENTLY do a task Delays and Bottlenecks Unnecessary steps that do not add value/are waste Duplication and rework points Building the Future State How many steps and handoffs (passing the ball from one person to another)? Time between each step - any delays and why? Where are the bottlenecks or queues? Steps that do / do not add value? How many steps for the member/bp user and are they built in for a reason? 12

13 Building the Future State Where are the problems? What do the clients complain about? Where are there things done more than once? What does staff complain about? Have you got all the data you need? If not what is your plan to complete the map? Can you eliminate any waste? Can you eliminate any steps? Example of Current State Map Lead time 69 days (13.8 weeks) Cycle time: 4.5 days (0.9 weeks) Example of the Future State Map 13

14 IDENTIFYING ROOT CAUSES The 5 Whys Why? Why? Why? Why? Why? 5S 14

15 Sort Set in Order Shine/Sweep Systematize Sustain What is 5S A Factory of One Not Just About Your Desk s Research Advertisements Electronic Document Storage 15

16 Sort Eliminate the clutter Remove all items from your work area that are not needed (Red Tag it) Set in Order Organize and label, set boundaries and limits Create a place for everything and put everything in Its place Shine Clean everything, inside and out Establish a new level of cleanliness in the workplace 16

17 Standardize Formalize the first 3 S : Sort, Set in Order, Shine Keep checklists Make them visual Keep everything in a state of readiness Sustain Maintain the process Make a commitment to continue 5S as a way of life at work How To Make It Work No magic No skinny pill Nothing simple Culture change isn t like flipping a light switch. People are slow to adopt changes that they can t perceive as beneficial. Pig headed persistence is one of the keys to implementing Lean Six Sigma. Jay Arthur, author, Lean Six Sigma Demystified 17

18 Innovation Improvement 2 Mindsets Risk Free LSS Start Small Set a big goal Fly under the radar Create initial success Fight the urge to take it all on Keep it as simple as possible, but no simpler How to Pick a Project A project worth doing One you can directly control Data is available With people who want to solve the problem The appropriate LSS resources 18

19 ~Peter F. Drucker It starts at the beginning What if we don t change at all and something magical just happens? 19

20 Ultimately Learning more about Lean Six Sigma should change the way you approach problem solving, and should take you to a mindset where you are constantly looking to improve. Resources (download the waste e-book) Lean Six Sigma Demystified A Factory of One Lean Six Sigma for Service Traction and Get a Grip Good to Great 5 Dysfunctions of a Team Thank you! QUESTIONS? Debbie Foster Affinity Consulting Group dfoster@affinityconsulting.com 20