Culture Change through Lean Six Sigma Education Sue Kozlowski MSA, MT(ASCP)SBB DLM CSSBB(ASQ) Presentation sponsored by: The Team and Workplace Excellence Forum Lean Six Sigma “Begin with the end in mind.” --Stephen Covey What are the outcome measures for your Lean / Six Sigma Deployment? Discussion! Slide 2 Lean Six Sigma Are you a Lean / Six Sigma organization if… • You have Belts / Facilitators? • You have projects? • You have bottom line savings? What’s missing? Slide 3 Lean Six Sigma What about: • Driving the philosophy through the organization? • Not waiting for project approval before identifying improvements? • Finding cost-avoidance and DO-IT projects? “I can’t fix that yet, the project’s not slated until 2011!” Slide 4 Objectives After this session, you will be able to: • Understand the basic concepts of business culture transformation • Describe three approaches to culture change using Lean Six Sigma concepts • List three positive outcomes that can be used to measure culture change through Lean Six Sigma education Slide 5 Business Culture Change Change to What? Culture Change TRANSMISSION / EVENT IDEA INTEGRATION DIFFUSION TIPPING POINT Slide 7 Culture Change IDEA TRANSMISSION / EVENT IDEA TRANSMISSION / EVENT IDEA DIFFUSION INTEGRATION IDEA TRANSMISSION / EVENT TIPPING POINT Slide 8 Culture Change Typical Deployment •Idea = Lean / Six Sigma •Transmission-Event = Structure, Project •Diffusion = Many Projects •Tipping Point = $$$ •Integration = ??? “We do projects” Slide 9 Culture Change Proposed Deployment •Idea = Lean / Six Sigma •Transmission-Event = Structure, Infrastructure •Diffusion = Projects, Training •Tipping Point = Lean / Six Sigma Culture •Integration = Language, Concepts, Tools “We’re a Lean / Six Sigma company!” Slide 10 Projects vs Training Can you have your cake and eat it too? Lean Six Sigma Deployments Different Approaches • Projects First – Traditional Six Sigma/DMAIC – Traditional Lean/Kaizen • Training first – “Butts in the Seat” – Certification Which will promote culture change? Slide 12 Projects First • Limit training to project leaders and team members • May have some training for Project Sponsors and/or Process Owners Slide 13 Impact of Projects First How many people have been trained after 3 waves? • • • • 20 BBs / Lean Facilitators 47 GBs 104 Project Team Members 20 Executives / Champions Slide 14 WOW! Outcomes of Projects First So at the end of 3 waves, what percent of your staff have been “transformed” into the new way of thinking? Slide 15 Outcomes of Projects First And at the end of 3 waves, how much impact have you had on your metrics? Slide 16 Culture Change TRANSMISSION / EVENT IDEA INTEGRATION DIFFUSION TIPPING POINT Slide 17 Training First • Lots of people who “know” lots of things • Lots of certificates • But, use it or lose it! Slide 18 Training First, continued How many people have been trained after 3 waves? • • • • All Senior Leaders Most Directors Some Managers / Supervisors Some Leads/Coordinators Slide 19 WOW! Outcomes of Training First So at the end of 3 waves, what percent of your staff have been “transformed” into the new way of thinking? Slide 20 Outcomes of Training First • And at the end of 3 waves, how much impact have you had on your metrics? Slide 21 Culture Change TRANSMISSION / EVENT IDEA INTEGRATION DIFFUSION TIPPING POINT Slide 22 The Middle Way • Projects – Quick start – Develop metrics – Attack problems – “Best and Brightest” for project leaders • Training – Build momentum – Develop metrics – Manage processes – “Learn to see” – Early adopters will be evident (next wave of BBs / Lean Facilitators) Slide 23 Outcomes of Training First So at the end of 3 waves, what percent of your staff have been “transformed” into the new way of thinking? Slide 24 Outcomes of Training First • And at the end of 3 waves, how much impact have you had on your metrics? Slide 25 Projects + Training • Run projects – Get financial gains • Change culture – Learn to see processes, value & waste – Data-based decisions – Clear goals and targets – Team-building – Break down barriers and silos Slide 26 Projects + Training Program Objectives Ability to… • Lead Project Teams to validated gains • Coach Project Team Members • Teach LSS tools and concepts • Mentor upcoming leaders Slide 27 Projects + Training Objectives The skills and abilities for teaching, coaching, and mentoring should be included with your Black Belt / Lean Facilitator TRAINING – in addition to project management skills and statistics. Slide 28 Black Belts as Agents of Culture Change More Than Just Project Facilitators BB / Lean Facilitator Selection The skills and abilities for teaching, coaching, and mentoring should be included with your Black Belt / Lean Facilitator SELECTION – in addition to project management skills and statistics. Slide 30 BB / Lean Facilitator Training Suggested training guideline • Training project – LSS methodology, project management, team facilitation – Assessment: Project deliverables, team effectiveness • Follow-up training – Teaching, coaching, and mentoring skills – Assessment: Teaching, GB coaching / mentoring, team facilitation Slide 31 BB / Lean Facilitator Training Advantages Career path after Black Belt / Lean Facilitator may take one of two directions: • Master Black Belt / Sensei role • Operational Leadership role Slide 32 BB / Lean Facilitator Training Advantages Master Black Belt / Sensei role • Primary Responsibility shifts to teaching, coaching, mentoring, administrative roles Operational Leadership role • Primary responsibility shifts to accomplishments through teams of people Slide 33 Development of Training Training by Vendor… Champion BB / GB LF BB / GB LF Project team Project Team Champion Op Leaders Training by you! Slide 34 BB / Lean Facilitator Training Vendor-led training may be $15,000 per person (BB, GB, LF) not including transportation, printing, etc. Internally-led training: • 2 BBs • Avg 30 per class • Eight days of training (2 days per month) • $250 per person Slide 35 BB / Lean Facilitator Training Cost of internal training BBs/LFs who are training may need a reduced project load Logistics: • Binders, tabs, & handouts • AV, flip charts, markers, sticky-notes etc. • Dietary Course development Slide 36 Typical Deployment LSS LSS LSS LSS Slide 37 LSS Suggested Deployment LSS LSS LSS LSS Slide 38 LSS What’s the advantage? Suggested model for improvement in a moderately-sized company Suggested Deployment Model - Leadership Traditional Deployment Model - Projects 450 400 Number of People 350 300 250 200 150 100 350 300 250 200 150 100 BB GB Team Champion Total Slide 39 BB GB Team Leaders Total Oct-12 Jul-12 Apr-12 Jan-12 Oct-11 Jul-11 Apr-11 Jan-11 Months Months Champion Oct-10 Jul-10 Apr-10 Jan-10 Oct-09 Jul-09 Jan-09 Oct-12 Jul-12 Apr-12 Jan-12 Oct-11 Jul-11 Apr-11 Jan-11 Oct-10 Jul-10 Apr-10 Jan-10 Oct-09 Jul-09 Apr-09 Apr-09 50 0 50 0 Jan-09 Number of Peopls 450 400 The Tipping Point… When cultural transformation occurs Executives walk the walk… • Attend training classes, lead projects Leaders talk the talk… • Use LSS terminology in daily operations Employees walk & talk! • Look for wastes, suggest improvements Slide 40 We’ll know we’ve been successful when… • Executives… • Leaders… • Employees… • BBs/GBs/Lean Facilitators… Slide 41 Planning for Culture Change Get More Than Projects Out Of Your Deployment! A Value Stream for Culture Change Culture Change Leadership New Hire Orientation Set Vision, Expectations, and Goals Select & Train Initial BBs/LFs Develop Leadership Training Projects Slide 43 Implement organizationwide training A Value Stream for Culture Change Communication Leadership Culture Change New Hire Orientation Set Vision, Expectations, and Goals Targets Select & Train Initial BBs/LFs Develop Leadership Training Projects Slide 44 Implement organizationwide training Metrics Barriers to Culture Change • Strange concepts – Front-line workers as process experts – Team not led by the boss – Set milestones • New tools – SPIOC, Value Stream Map – Statistical tools – Lean tools Slide 45 Barriers to Culture Change • Process awareness / understanding – Upstream, downstream – Suboptimizing – Wastes – Next process as customer • Unique language – DMAIC: Darned Multiple Acronyms In Class! – Lean: Let’s learn Japanese! Slide 46 A Note about Belts • Belts “Pro” – Easy to understand – People like it – Can build structure (Green, Yellow, White) • Belts “Con” – May not be appropriate for culture – Lean approach, teach everyone the tools – Overuse/abuse of terms (Grandmaster Black Belt? Gold Belt?) Slide 47 A Note about Certification • Certification “Pro” – Standard body of knowledge – People like it – Should require project plus book learning • Certification “Con” – May become a paper chase – Body of knowledge may not be appropriate for organizational needs – May mask lack of skills Slide 48 A Note about Black Belt Career Paths • In & Out – Not a good fit for skills (consider trial period) – Superficial stepping stone to next career path • Lifers – Love it – Good project managers and teachers • Careerists – Gain skills and knowledge for next level of responsibility Slide 49 A Note about Black Belt Career Paths • Novice – Training + 1 year (can define “x” completed projects) • Practitioner – Next 1 - 3 years before transition – Develop and master the skills • Sensei / Master – Remain as teacher, coach, methodology expert, involved in strategic planning Slide 50 Developing a Lean Six Sigma Culture New Hire Orientation • • • • 15 Minutes will do it LSS philosophy and approach Simple game or exercise List of who’s involved (Champions, BBs, BGs, LFx) • Invitation to contribute ideas Slide 52 Leadership Orientation Content • • • • DMAIC or Lean Approach History, success stories Types of projects Expectations of leaders (roles, participation, training) • Resources for further details • Select a project to get them involved in Slide 53 Leadership Course Content • Will the leadership course also serve as the GB/LF course? • What do leaders, who are not LSS project managers, need to know in their daily operations? • BB/LF consensus • Develop an outline • Use available resources, or buy them Slide 54 Course Organization • Select a Primary Instructor (BB or MBB) • All BBs should teach – some will need more coaching than others • Start with teaching modules – then move to exercises – then whole days of class • Have Executives / MBBs “drop in” for informal discussion & asking how they will use what they have learned Slide 55 Course Organization • Set and keep an attendance policy • Include homework (VSM, SIPOC, etc.) • Make an exam to force review of earlier concepts and study • Give a certificate, pin, etc. to indicate accomplishment • Optional – project work or GB-level classes for people who want to get deeper into it Slide 56 Black Belt Development • Set criteria for BB career path • Select / develop BB and MBB level training and certification requirements • Require portfolio of projects, professional development, and accomplishments • Post-project review should include feedback from team members • Annual eval should include career planning Slide 57 Outcome Measures • Executive behavior – Supportive, Committed, or Engaged? • Leader behavior – Sponsors, participation on teams, use of tools in daily operations? • Front-line leaders – Participation on teams, use of tools in daily operations? • Belts/Facilitators Slide 58 Closing Return on Investment • Training as essential to culture change – Connected to organizational mission – Less expensive than external training – Quicker diffusion to tipping point – Create a new culture for your organization • Support projects – Develop future project leaders • Improve operations – Get leaders using the tools in daily operations Slide 60 Sustain the Gains • Lean / Six Sigma becomes “the way we work.” – Executives – Mid-level Leaders – Front-line leaders – Staff Slide 61 Build Your House of Quality Mission – Vision – Values Employee Engagement Each Customer First Continuous Improvement & Innovation Customer Needs What will our House of Quality look like? Slide 62 Acknowledgements Chuck Debusk, Master Black Belt, GE now VP, Performance & Process Improvement, United Healthcare Todd Sperl, Master Black Belt, St. John Health now President, Lean Fox Solutions, LLC Ron Bercaw, Sensei now Sensei, Breakthrough Horizons, LLC Slide 63 Sponsored by: ASQ Team and Workplace Excellence Forum Mike Whisman, Chair Slide 64 The End Questions? Thanks! Slide 65