The Role of Lean Six Sigma in Enterprise Business Transformations

Transcription

1 The Role of Lean Six Sigma in Enterprise Business Transformations By Amy Speth Executive Director, Business Transformations Femme Comp, Inc May 28, 2008

2 24 years in IT About Amy Last 7 years leading complex IT transformations for large commercial corporations and federal agencies Certifications: LSS MBB, ITIL SM, PMP Texas Aggie! 2

3 Overview of Presentation What is involved in an enterprise-wide Business Transformation and how does LSS fit? Different from presentations that show how DMAIC phases can be used as implementation phases Different from presentations that show how LSS begins to be used at the Continuous Improvement phase 3

4 Transformation Components Process Reengineering Organizational Realignment Functional Roles Lean Six Sigma Strategy & Vision Governance Enhancement Cultural Change Management Strategic Communication Performance Management Industry Standards prescribe What LSS prescribes How 4

5 Step 1: BT Strategy and Vision Establish a strategy for levels of authority Publish and aggressively campaign BT strategy, internally and externally Draw threads of continuity across all messages Change terminology to overcome negative affiliations 5

6 Step 2: Stakeholder Management Over-Communicate! Over-Communicate! Over-Communicate! Over-Communicate! Build trust by Saying what you will do Then doing it Over-Communicate! LSS tools: Stakeholder Management, Communications Plan 6

7 Step 3: Process Framework Architectural blueprint for business transformation Foundation for all BT activities Provides common terminology Organized by related sets of activities Gain Acceptance of Framework before proceeding 7

8 CobiT 4.1 Process Framework 8

9 ITIL V3 Process Framework Service Strategy Portfolio Financial Demand Service Design Service Catalog Service Level Capacity Availability Continuity Information Security Supplier Service Transition Support & Transition Change Asset & Configuration Release & Deployment Validation & Testing Evaluation Knowledge Continual Improvement Service Operation Event Incident Problem Request Fulfillment Access 9

10 Step 4: Process Teams Designate one Process Owner per process Training: ITIL/CobiT and Green Belt One Green Belt per process, one Black Belt per Process Category Leadership must Empower both Authority and Accountability LSS Tools: Process Team Charters, Scoping Tools (eg. In Frame/Out Frame) 10

11 Step 5: Process Engineering Forget everything you ve been taught about base-lining As-Is processes Start with end state vision - then build implementation plan to get there Leave Generic Do not Pre-customize Establish baseline after you ve implemented your new process LSS Tools: Swimlane, SIPOC, Interrelationship Matrix 11

12 Step 6: Functional Roles Define functional roles and responsibilities Map functional roles to process activities Do not Consider Current Organizational (HR) jobs LSS Tool: RACI Matrix 12

13 Step 7: Performance Management Select Process Key Performance Indicators Select Personnel measures Create multi-generational implementation plans to capture data & report valuable information LSS tools: CTQ Houses of Quality, Data Measurement Plans 13

14 Step 8: Organizational Realignment Construct Org Design based on functional roles Calculate workforce sizing based on work loads Determine where tasks are done today & identify work not currently being done Realign personnel from other areas, then hire new Strengthen governance Before realigning people 14

15 Step 9: Implementation Plan Desired-State Maturity Assessments Statutory & Regulatory Requirements Resource Availability Prioritized Implementation Plan Organization s Critical Priorities Industry Best Practices Audit & Compliance Requirements LSS prioritization tools: C&E Matrix, Benefit/Effort Matrix, Affinity Diagrams 15

16 Instantis Maturity Model for Six Sigma Deployment 16

17 IT Infrastructure Library (ITIL) Process Maturity Model 17

18 Maturity Model Radar Chart Ta bl e 4 : Est a bl i shi ng t he P r oc e ss Founda t i on Ta bl e 5 : C a r r y i ng Out t he S e r v i c e P or t f ol io M a na ge me nt P r oc e ss M Ta bl e 6 : I nt e r f a c e s t o Ot he r P r oc e sse s Ta bl e 7 : Or ga ni z a t i ona l C l a r it y a nd C a pa bi l it y 18

19 Radar Chart Rollup Views Entire Organization Organization Process Categories Process Category Quality Resource Strategy Solution Enterprise Series1 Series2 Enterprise Architecture 4 Cyber Security Individual Processes Individual Processes Strategic Comm Bus. Relationship Series1 Series2 Culture Vision & Steering People Knowledge Current Desired IT Portfolio Regularly Report Maturity Gains Technology Processes 19

20 Variation Analysis between Assessors Dimensions N Min Mean Mode Max Stand. Dev. Vision & Steering People Processes Technology Culture LSS Tools: Standard Deviation, Regression Analysis, MSA High variation May require an MSA 20

21 Step 10: Continual Improvement D efine M easure A nalyze I mprove C ontrol D efine M easure E xplore D evelop I mplement Improve existing processes, products, services Create new processes, products, services Razor-sharp focus, With applied rigor On Quick Wins From Step 1 LSS tools: RIEs, Kaizens, DMAIC/DMEDI, Value Stream Analysis 21