business transformation toward operational excellence with

2018 Operational Excellence | slide 1

Business transformation toward operational excellence

with LeanHugo Paradis, CLSSBB

Carine Botturi, MBA, CIPP-C

Perfectionnement

www.seformer.ca


Carine Botturi, MBA, CIPP-C

Experience 19 years▪ TELUS – Director Risk management – Privacy ▪ TELUS – Director Operational Excellence Enablement ▪ Bell Canada – Associate Director, Continuous business process improvement

and enablement, Performance Management, Finance, Risk Management, Project and program management

Education▪ CIPP-C : Certified Information Privacy Professional – Canada ▪ MBA : Strategy and International Management (research) ▪ MA : Politics and International relations ▪ Lean Six Sigma Black Belt

Something about me …▪ Love Canadian winter for skiing and country skiing ▪ Ballet and Pilates fan … when not snowing !

Perfectionnement

www.seformer.ca


Hugo Paradis, CLSSBB

Experience 27 years▪ Qualiti7 – Operational Excellence Dev and training LSS▪ TELUS – Operational Excellence Dev and training LSS

Senior Consultant Technology and Strategy Manager▪ E3 Services Conseils – Senior Consultant Operational Excellence :

La Presse, Banque Nationale▪ President of Sigma Performance and Senior Consultant Operational

Excellence▪ Bell Canada – Associate Director , Continuous business process

improvement, Balanced Scorecard, Project mgt, Risk mgt

Education▪ Université de Montréal: Statistics and probability▪ Master – Project Management and balanced scorecard▪ PMP, ITIL Foundation, Lean Six Sigma Black Belt

Something about me …▪ Lean Six Sigma Trainor : white, yellow, green and black belt


Operational Excellence at Telus

• Excellence is performance through end to end (e2e) processes and systems that execute the business strategy. OE creates value with higher speed, reliability and cross-functional collaboration.

• A philosophy where problem-solving, teamwork, and leadership results in the ongoing improvement in an organization. The process involves focusing on the customers' needs, keeping the employees positive and empowered, and continually improving the current activities in the organization.


• Operational Excellence – Translating strategy into execution➢ Framework and goals ➢ Methods : Problem solving approaches depending on complexity and benefits➢ Improve and innovate : Agility and scalability of the organization (process mindset, system)

• Operational Excellence – Concepts and Methodologies➢ Methodologies to control waste➢ Five Core Lean Principles ➢ Applying methodologies ➢ Lean Six Sigma

• Operational Excellence –Key Success Factors ➢ Support from the top of the organization & right relationship balance ➢ Project Selection ➢ Rigour in execution : Project and Program management & Change Management

o Project selection o Break down complex projects in smaller initiatives o Plan, do, act, check ! & DMAIC


Operational Excellence – Translating strategy into execution

• Framework and goals : • Align Vision, Strategic imperatives and projects to identify metrics, targets and

measures

• Reconcile the what we want to accomplish with the how we are going to make it happen

• Methods : Problem solving approaches depending on complexity and benefits

• Improve and innovate : Agility and scalability of the organization (process mindset, system)


MissionWhy We Exist?

ValuesWhat’s Important to Us?

VisionWhat We Want to Be?

StrategyOur Game Plan

Strategy Playbook, Maps & ThemesTranslate the Strategy

Balanced ScorecardMeasure the Focus

Targets & PMO/InitiativesWhat We Need to Do?

Personal ObjectivesWhat I Need to Do?

Strategic Outcomes

Satisfied

Shareholders

Delighted

Customers

Efficient &

Effective Process

Motivated &

Prepared Workforce

Translating Strategy into Execution


Operational Excellence Framework & Goals

Executive-level led initiative to grow Operational Excellence

Build Leadership skills on how to leverage OE to drive value on

top improvement priorities

Clear & consistent expectations to demonstrate leadership

commitment and sponsorship

General OE awareness across team members on how to identify waste

Train and develop a critical mass (~0.5-1% FTEs) of practitioners using

OE methods

Company & BU level programs promote sharing, benchmarking and

practitioner development

OE program aligned to strategic objectives and high priority areas

Comprehensive reporting to track multiple categories of benefit and

measure OE impact

Delivering positive impact with tangible benefits within each

Business Unit.

Leadership Commitment

Talent& Culture

OE Execution & Impact

Our vision is to incorporate industry best practices into the strength of the culture


Operational Excellence Methods

Hig

hM

ed

Lo

w

~1-3 months ~3-6 months ~6-12+ months

Complexity (Time/Effort)

Do

Don’t Do

Major

Projects &

Initiatives

Va

lue

/ B

en

efi

t

Long-Term

Strategic

Lean Redesign

Targeted Methods to:

Customers First

• Improve Likelihood to

recommend

• Reduce Churn

• Gain Market Share

Our Business

• Increase Revenue

• Reduce Costs

• Shorten Time to Market

Our Team

• Develop Leaders

• Grow Human Potential

• Drive Team Engagement

Lean Six SigmaOwn.it / Work out


Improve and Innovate

Operational Excellence

▪ Improve Reliability

▪ Create Efficient Processes

▪ Reduce Customer Churn

▪ Increase Operating Margins

▪ Gain Market Share

Continuous Process Improvement

Human

Capital Growth

Continuous Learning

& Reflection

Improve Today

Fuel Tomorrow

Leadership Commitment

Strategic Planning & Cascading SMART Objectives

Fair Process, DMAIC, Lean Thinking (system and process thinking)Project & Program Management, Change Management

Innovation Excellence

▪ Increase Brand Loyalty

▪ Provide Value Differentiation

▪ High Quality Products & Services

▪ Increase Speed to Market

▪ Generate New Revenue Streams

Products & Services Development


Operational Excellence – Concepts and Methodologies

• Methodologies to control waste

• Five Core Lean Principles

• Applying methodologies

• Lean Six Sigma


Defects Over Production Waiting Non-Utilized Talent

Transport Inventory Motion Extra-processing

8 Types of Waste (DOWNTIME)

Rework and Frustration are symptoms of waste that add cost


Five Core Lean Principles

Customer Value

Value Stream

Flow & Pull

Empower People

Perfection

Specify Value from the customer’s perspective

Identify the Value Stream (process steps) for each product or service

Make value “flow” without interruptions using “pull”

Make use of untapped potential from team members in improvements

Strive to pursue for perfection

Customer Value

Value Stream

Flow & Pull

Empower People

PerfectionContinuous

ImprovementCycle

Create Speed & Efficiency through Waste Elimination


Applying Methodologies: A Rule of Thumb

Strategic

Initiative

Strategic

Initiative

Strategic

Initiative

Strategic

Initiative

BlitzTeam

Project

Action

Items

Action

ItemsPDCA

PDCA

Blitz

Many Small

Problems

Few Medium Size

Problems

Very Few Big

Problems

Daily Problem Solving


Employing Lean Six Sigma (LSS) improves efficiency,

speed and quality, what leading companies do to win

A Lean Six Sigma Transformation Drives Value and Continuous Improvement

LeanSix Sigma

Lean(Less complexity = Faster speed)

Six Sigma(Less variability = Better performance)

EmployeeEngagement

ProvenMethodology

LeadershipSupport

Delivered Benefits• Organizational – Empowered leaders who

manage by facts

• Cultural – A team whose mindset is “improve and win”

• Technical – Process discipline and rigor to compete globally

Typical Initiatives• Balance work to improve output

• Prevent defects and reduce losses

• Build better products for smoother growth

Measure and reduce:• Defects• Lead time• Variation (more good, less bad)

Focus and reduce: • Waiting time• Hand offs• Wasted time and effort

Non-value steps

Value adding steps

Legend:

Fewer defects cut cost and raise revenue $$

Six Sigma

Upper Spec(Defects)

Lower Spec(Defects)

Lean

▪ Cycle Time reduction (efficiency)

▪ Productivity (resources /unit of output)

▪ Quality - Accurate & Complete (effectiveness)

▪ Rolled throughput yield (Flow)


Operational Excellence –Key Success Factors

• Support from the top of the organization & right relationship balance

• Project Selection

• Rigour in execution : Project and Program management & Change Management

– Project selection – Break down complex projects in smaller initiatives – Plan, do, act, check ! & DMAIC


Guiding principles:

◼ Identify the right business opportunities/ projects

◼ Select the right “high potential” candidates

◼ Provide the right tools/support to drive project success

Right People

Right Tools

Right

Results

Right Opportun

ity

Success Formula

Sponsorship &

Support


Project Selection


Realization roadmap

Define

Innovate for the future

1

3

Measure and Analyze the actual

2

Control the new process

4

Planning Delivery

Global action plan

Define and target

Organize and Plan

Execute and deliver

Vision and objectivesBenefits realization and

value creation

Business decisions Bottom line results


Operational Excellence – Lessons Learned

• New paradigm : New mindset

• Opportunity to challenge the status quo and to break internal silos

• Focus on collaboration and team members empowerment


Traditional Paradigm

• Jump to solutions without understanding

the real issue

• Cost cutting focus

• Band aid solutions

• Silo mentality

• On time and on budget project focused

• Many initiatives with no clear link to

strategy

New Paradigm

• Use facts to identify and solve problems

• Focus on customer satisfaction to drive

bottom line improvement

• Eliminate root causes to permanently fix

problem

• Overall business focus

• Most effective and efficient solution

• Prioritized list of initiatives based on

business strategy

A New Paradigm


System Efficiency Optimum Performance

Individual Efficiency Sub-Optimal Performance

Key Focus is to enable coordination across the system

System vs Individual Efficiency

System Efficiency Individual Efficiency

Parts of end-to-end cross-functional process fir together

Emphasis is on « Me » instead of « We »

Greater results when people coordinate across main E2E processes

The extra individual effort doesn`t have any significant impact

The result would be of optimum performance

The results is sub-optimal performance


Fun

ctio

n #

1

Fun

ctio

n #

2

Fun

ctio

n #

3

Fun

ctio

n #

1

Fun

ctio

n #

2

Fun

ctio

n #

3

Process #1

Process #2

Process #3

Customer

Functions driving businessLimited Process Focus

Processes acknowledgedFunctions dominate

Processes driving businessFunctions enabling

Functional to Process Driven


The right opportunity

+

The right people

+

The right tools

=

The right results

Right People

Right Tools

Right

Results

Right Opportunity

Operational Excellence

3

QUESTIONS ?

Making it Real

Building Operational Excellence




Customer Value

Value Stream

Flow & Pull

Empower People

Perfection

Specify Value from the customer’s perspective

Identify the Value Stream (process steps) for each product or service

Make value “flow” without interruptions using “pull”

Make use of untapped potential from team members in improvements

Strive to pursue for perfection

Customer Value

Value Stream

Flow & Pull

Empower People

PerfectionContinuous

ImprovementCycle

Create Speed & Efficiency through Waste Elimination


1. Define Customer Value

Specify Value as Viewed by the Customer’s Perspective

Steps that directly

increases the value of

the product in the eyes

of the customer-what

the customer is willing

to pay for!

Work that does not directly add customer value, but are currently

necessary to enable ‘flow’ (aka Business Value Add or BVA)

Use of resources

that does not add

any value to a

product (“waste”) Necessary

Non-Value

Added

Customer

Value Added

Non -

Value

Added

• Delays,

• Duplication,

• Unclear Info

• Rework,

• Errors, etc.

• Quality,

• Functionality,

• Timeliness,

• Availability, etc.

• Budgeting

• Coding

• Scheduling

• Regulatory

• Incidental work, etc.


Sales Schedule Installation Service

Value

Stream

PROCESS PROCESS PROCESS PROCESS

E.g. INSTALLATION PROCESSInitial

Customer

Contact

Positive

Customer

Outcome

Value Stream – ALL steps required to complete a product or a service from beginning to

end. (aka Value Chain)

2. Identify the Value Stream


Value Stream Mapping

Start Process

Process Finished

VA NVA NVA NVA VA NVA NVA NVA VA NVA NVA NVA

Total Lead Time

Process Time Process TimeProcess Time

Providing Optimum Value to the Customer through a Complete Value Creation Process

Activities that do not contribute to meeting customer requirements.

Move time – time that a work unit spends in transit from one process step to the next one

Queue time – time that a work unit waits for a downstream process step to be ready to

work on it.

37


3. Create Flow & Pull

Eliminate Waste & Make the Value-Added Steps Flow34


4. Empower People

❑ Build a Learning Organization

❑ Open Communications

❑ Investing in Development

❑ Safe work environments

❑ Recognition for Improvement

❑ Allow Learning from Mistakes

❑ Expanding Knowledge base

❑ Encourage new ideas from all

❑ Motivate with purpose over paycheck

Continuous Improvement

Respect for People

Fake Lean

Real Lean

Respect, Challenge & Grow our People35


5. Pursue Perfection

Constant Reflection & Continuously Improvement

Map the Current State (as-is process)

Map the Future State (would be process)

Focus on Sustaining Gains

Measure True Impactsof Change

Look for incremental

improvements

Implement the

incremental improvements

Let the system stabilize &

quiet down

Sta

rt th

e c

ycle

ag

ain

Identify the Problem

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