bs and hr six sigma practices

8/7/2019 bs and hr six sigma practices

1/38


2/38


3/38

The Balanced Scorecard is a management system that maps

an organization's strategic objectives into performance metricsin four perspectives: financial, internal processes, customers,

and learning and growth


4/38


5/38

Strategic objectives - what the strategy is to achieve in that

perspective.

Measures - how progress for that particular objective will be

measured.

Targets - the target value sought for each measure.

Initiatives - what will be done to facilitate the reaching of the

target.


6/38

objective Specific Measure

growth revenue growth

profitability return on equity

cost leadership unit cost


7/38

objective specific measure

new products % of sales from new products

responsive supply on time delivery

to be preferred supplier share of key accounts

customer partnerships number of cooperative efforts


8/38

Objective Specific Measure

Manufacturing excellence Cycle time, yield

Increase design productivity Engineering efficiency

Reduce product launch delays Actual launch date vs. plan


9/38

Objective Specific Measure

Manufacturing learning Time to new process maturity

Product focus% of products representing 80% of

sales

Time to market Time compared to that of competitors


10/38

Define the measurement Architecture

Specify strategic objective

Choose strategic measures

Develop the implementation plan


11/38

Design and test a customised Balanced Scorecard design

method. To ensure representative coverage, testing was

undertaken in three Business Units and one Function.

Roll-out of the reference design process with further business

units and functions;Training on the deployment of the reference design process for

the clients internal facilitators,

Awareness sessions for key financial managers.


12/38

Strategies were not clearly formulated, communicated or linked to

in-year plans;

Accountabilities were not clearly defined;

Consequences of failing to deliver against the plan were unclear;

Performance monitoring relied very heavily on detailed financial

metrics alone, and;

Financial targets were set at easily achievable levels.


13/38

The challenge was developing a process that management

teams could follow that would allow these long term strategic

goals to link to present in-year priorities, and for these priorities

to be associated with balanced metrics, sensible targets and

clear accountabilities.In many SMTs it was unusual for the whole team to meet face-

to-face. This presented a serious challenge for the Balanced

Scorecard design activity


14/38

Off-line working to brief the SMT members one-on-one by

telephone or face-to-face about the process, and to develop, and

review a draft Destination Statement developed by one or two

members of the SMT working with the facilitators based on the

existing five-year Plans and Strategies.Group working by the SMT to confirm/finalise the Destination

Statement and then develop from it a Strategic Linkage model (SLM)

that would document the key priorities for the SMT in the year ahead

and form the basis of their Balanced Scorecard.


15/38

More off-line working after the workshop wherein the

business unit planning team (who would be responsible for

operating the Balanced Scorecard once it was complete)

would with the internal project team to describe the priorities

on the SLM in more detail, and develop measures and targets


16/38


17/38

Balanced Scorecard designs were created within 19 Business

Units, each resulting in Balanced Scorecards showing 12-18

month priorities , metrics and targets. 16 of the workshops were

in major Business Units and 3 within functions in the UK,

continental Europe, USA and Africa.


18/38

Translation of strategy into measurable parameters.

Communication of the strategy to everybody in the firm.

Alignment of individual goals with the firm's strategic objectives -

the BSC recognizes that the selected measures influence the

behavior of employees.

Feedback of implementation results to the strategic planning

process


19/38

Lack of a well-defined strategy

Using only lagging measures

Use of generic metrics


20/38


21/38

The term "Six Sigma" is widely used to refer to all of the following:

A structured method for improving business processes. This method,called DMAIC (define, measure, analyze, improve, and control), issupported by an assortment of statistical tools.

A statistical measurement of how well a business process isperforming. A process that performs at "Six Sigma" produces only 3.4defects out of every million opportunities to produce a defect.

An organizational mindset in which people make decisions based ondata, look for root causes of problems, define defects based oncustomer rather than internal requirements, seek to control variation,

track leading indicators of problems to prevent them from happening,etc.


22/38

SponsorSenior executive who sponsors the overall Six Sigma Initiative.LeaderSenior-level executive who is responsible for implementing Six Sigma within the

business.

Champion Middle- or senior-level executive who sponsors a specific Six Sigma project,

ensuring that resources are available and cross-functional issues are resolved.

Black Belt Full-time professional who acts as a team leader on Six Sigma projects.

Typically has four to five weeks of classroom training in methods, statistical tools, and(sometimes) team skills.

Master Black Belt Highly experienced and successful Black Belt who has managed

several projects and is an expert in Six Sigma methods/tools. Responsible for

coaching/mentoring/training Black Belts and for helping the Six Sigma leader and

Champions keep the initiative on track.

Green Belt Part-time professional who participates on a Black Belt project team or leads

smaller projects. Typically has two weeks of classroom training in methods and basicstatistical tools.

Team MemberProfessional who has general awareness of Six Sigma (through no formal

training) and who brings relevant experience or expertise to a particular project.

Process OwnerProfessional responsible for the business process that is the target of a

Six Sigma project.


23/38

Human resources professionals will be able to help foster teamwork

development, conflict management solutions, and communication

among the Six Sigma team.

Throughout the entire Six Sigma Process, HR professionals will be

able to help document best practices, find and define problems andstatistical analyses, and offer potential pre-existing data that is needed

for these projects.

Another part of Six Sigma Projects that these people will be familiar

with is the use of scorecards


24/38

Building a competency model that will help identify candidates with

the right mix of technical, team, and leadership skills and abilities.

Creating job descriptions that help candidates fully understand the

position and expectations prior to signing on.

Developing a retention strategy that will help ensure Black Belts

complete their rotation and the organization recoups its investment in

training and development.


25/38

Analyzing existing compensation arrangements to identify the extent

to which those arrangements will support the Six Sigma initiative.

Creating a strategic compensation plan that will better support Six

Sigma.

Developing a non-monetary reward program for Six Sigma teams.


26/38

Ensuring team leaders and members get training and/or

coaching in teamwork, conflict management,

communications, dealing with difficult team members, and

other team effectiveness skills.

Providing teams with tools that allow them to diagnose their

own performance and identify when and where they need

help.

Acting as a resource for Black Belts who encounter team-related challenges they cannot surmount.


27/38

Working with Six Sigma Sponsors, Leaders, and Champions to

identify elements of the culture that might hinder the achievement of

Six Sigma goals.

Advising on change plans that will target those specific culturalelements.

Identifying how Six Sigma can be rolled out in a way that works

with, rather than against, the current culture.


28/38

Drafting a change management/ communications plan that

addresses the people side of the Six Sigma rollout.

Helping create a "case for change" that describes:

The reasons for and benefits of Six Sigma.How the organization will help employees succeed in new ways of

working.

How Six Sigma fits with other ongoing initiatives.

Counseling Six Sigma Leaders and Champions on how their

behavior can help or hinder Six Sigma's acceptance throughoutthe organization.


29/38

HR can play a pivotal role in the knowledge management aspect of

six sigma projects. There is immense learning in the six sigma

process.

During the implementation of the project, business processes are

examined on a microscopic level, and their productivity is analyzedon a numerical basis.

The learning process needs to be collated and disseminated within

the organization.

The Hr team can be the knowledge resource center that can

enhance business capabilities.


30/38

Need for improvement in HR

Did not enjoy a desirable reputation in the company

reactive, uncoordinated, over-manned and unprofessional,

delivering poor, slow and non cost-effective services.

The outputs of the key HR processes were not clearly defined


31/38

Business environment prior to Six Sigma Deployment

Organization environment

Employee development

Resourcing

Reward

Communication

Organization improvement


32/38

What is six sigma

Six Sigma is a logical approach to achieving continuous

improvements in areas critical to the success of any manufacturing or

service-oriented business

Define: key processes are defined.Measure:What is the capability of the process?

Analyse:When and where do defects occur?

Improve: How can Six Sigma capability be achieved?What are the vital

few factors that control process results?

Control:W

hat controls will we put in place to sustain the gain?


33/38

Improvement Team

The main stakeholders were:

Internal customers: to participate in the specification of objectives and

targets, selection of particular measures of performance which are

aligned with the overall business and HR strategy and to provide afeedback.

HR process owners and participants: in addition to the same role as of

internal customers, to learn and deploy Six Sigma improvement tools

and to develop, implement and sustain in continuous improvement of

their processes that optimize measures of performance to the

satisfaction of all stakeholders.


34/38

Objectives

develop and implement HR processes and measures of performance

with embedded continuous improvement, owned by HR process

participants, that would deliver defined strategy, with the focus on

complete internal customer satisfaction.

increase job security and survival of HR central within the company,

increase employability of HR staff, promote Six Sigma and promote the

success of empowered, high-performance teams.


35/38

Methodology: Deployment of Six Sigma process improvementmethodology

Define

Prioritization started with identification of the service provided.Process needs were identified to provide a service that

satisfied the customers. Measure

Generally, measures of performance were selected that havean impact on cost, quality, throughput time and/or humanreaction. Quality function deployment was used to identify andanalyse measures of performance that are aligned with

customer requirements and HR strategy objectivesMain objectives

to ensure alignment of HR and business strategic objectives;

to define critical-to-quality measures (CTQ);

to define critical-to-cost measures (CTX);

to define critical-to-throughput time measures (CTT);

valuable to organization;valuable to individual;

easy to understand and remember.

A cost of poor quality estimate was performed


36/38

Analyze

All data were tested against the CHART data test i.e. no data couldenter the analysis stage unless they satisfied the CHART test.Appropriate Six Sigma tools were deployed to monitor and analyseperformance of processes. Analysis was performed by process

owners, with facilitation of Six Sigma Black Belt Improve

Development and implementation of improvement solutions followedidentification of vital input parameters that affect selected processmeasures of performance (MOPs). Monitoring of improvementactions was realized through implemented HR database. Vitalprocess inputs and process results were monitored and correlation

verified. Control

The key control objective is to sustain and get a continuousimprovement process embedded into HR processes


37/38

Achieved Benefits Overall outcomes of improvement activities are better, faster

and more cost-effective HR services to the business

HR employees started enjoying greater customer satisfactionand loyalty

The future of the internal HR Department started to lookmore secure. It was recognized that HR dared to measurethemselves, change and had been proactive.

HR employees have originated a number of improvementideas

Reduction in throughput time, defect and rework are among

many elements that contribute to sizeable tangible costsavings from improved processes. Intangible costs of poorquality have been recognized

The implementation of the HR processes has supportedproactive behaviour and customer focus, and has alignedpersonal, team and company goals around HR and businessstrategy.


38/38

bs and hr six sigma practices

Documents