grow your training and consulting business with lean six sigma

Copyright © 2015 ITpreneurs. All rights reserved.

Growing Your Training /

Consulting Business

with Lean Six Sigma

Dr. Shree Nanguneri

Senior Master Black Belt - Lean Six Sigma


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ITpreneursDimitri van den Broek, Co-Founder


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Lean Six Sigma Understand Your

Customers Burning Platform and

Fuel Your Sales Pipeline


Moderator:

Corjan Bast

ITpreneurs

Presenter:

Dr. Shree Nanguneri

Senior Master Black Belt - Lean Six Sigma

Today’s Speakers


What Will You Learn Today?

● Value of Lean Six Sigma (LSS) to Your Business

● How can I increase the sales revenue in my business via LSS?

● How do I reduce my internal cost using LSS?

● What are some ways to increase consistency in my operations?


What Will You Learn Today?

Where are the growth opportunities for my business?

How can LSS help me PULL to:

● Gain NEW customers?

● Regain LOST customers?

● Sustain CURRENT customers?


Reduction, Elimination, and Prevention of the 3Ds of your Business:

● Defects

● Delays and

● Deviations

To Generate the 2Ds for your Customers via:

● Dollars in Revenue and

● Delight from your Products/Services

What is Lean Six Sigma (LSS)?


LSS also provides a:

● Methodology to solve problems/leverage opportunities

● Tool set to aid the problem solving process

● Philosophy of bearing customer success in mind

● Problem solving strategy to keep the rigor pure

● Working Culture where everyone needs to be engaged

● Changing the Mindset of people toward success

● Measure of the success of your customer and value chain

What Else Is Lean Six Sigma (LSS) All About?


Companies in need of any of the following, have used LSS:

● Product/Service Complaint Resolution

● Customer Retention Breakthrough

● Market Share Sustenance, Growth, and New Penetration,

● Overcome Global Market Competition

● Adapt to a Global Environment in Business

● Design processes to be customer-centric

Who Uses LSS and Why?


● Manufacturing (GE, Motorola, Allied Signal, Du Pont, 3M..)

● Service (Bank of America, Citibank, HSBC…)

● Transactional (US Post Office…)

● Government (US Army, US Navy…)

● Research and Development (Du Pont, Bristol Myer Squibb…)

● Healthcare (Johnson and Johnson, Quest Diagnostics…)

● Information Technology (Accenture, Infosys…)

● Business Process Outsourcing (Sutherland,... )

What Are a Few Types of Clients/Industries?


● Non-Profit Type Corporations

● Educational Institutions

● Independent Business Owners or

● Small, Medium, and Large Enterprises

● Other?

What Are Other Types of Clients/Industries?


Market Opportunities Vs. Customers’ Needs

LSS Marketing Opportunities

Understanding the needs of our Customers


Definition:

A value chain model comprises of activities found to be common to a wide

range of firms*

Here Is A "Value Chain" Definition!

Inbound

Logistics

Internal

Operations

Outbound

Logistics

Marketing

&SalesServices

$ $ $ $

MARGINS = Opportunity for LSS!

*Michael Porter’s generic definition and roadmap: www.netmba.com/strategy/value-chain/

$


LSS Gaps for Your Success56 % of deployments fail and 33 % of

shareholders are dissatisfied with the way LSS

was deployed.

Many training sessions didn’t result in

projects!

Accept that like anything else

there is a failure/success

element here


What Silos Get Attention?

● Quality/Speed/Cost

● Manufacturing

● Data Availability

● Proven Areas in Organization

● Bottleneck/Constraint Areas

Independent Silo-Metric Driven Deployment*

What Silos Get Left Out?

● ERP-SAP

● SHEC (Safety)

● HR

● BPOs

● Supply Chain

Are you “Pushing” or “Pulling” Customers?


Old Process

Where Are My “LSS” Opportunities?

Deplane-Exit Airport Cycle Time

De

pla

nin

g

Imm

igra

tion

Baggage

Cu

sto

ms

Cab R

ide

New Process

Is Breakthrough Significant?


What is this all about?

● Project Completion?

● Project Savings/Benefits?

● Belt Certification?

● Improving Step Performance?

● Optimize an independent Silo?

● EBITDA gains for my Customer

Where Is The Opportunity?

Is there a linkage between

LSS Training and Value to

Customer’s EBITDA?


GAPS in LSS Deployment Design

Purely pilot type – Trial Run Not a trial run

Restricted to quality or manufacturing Across business

Ignores back office operations Includes back office ops.

Missed the value chain entirely Includes strategic suppliers

No continuity plan in place Clear plan in place for execution

Types of LSS Opportunities!

Did the LSS Training/Project

Reduce Waste?


Integrated LSS Solution Involves:

● Understanding where EBITDA is impacted?

● Filling project pipeline to align with customer needs (SVA)

● Identifying and Quantifying factors that impact value chain

Opportunity for an Integrated LSS Solution!

Did the training or deployment

establish an ROI?


Some Potential opportunities in a LSS Deployment could be:

● Treating Black Belts as part time resources on FT projects

● Letting the LSS project pipeline dry

● Value Chain not having adequate projects in pipeline

● Value Chain Manager not a major deployment stakeholder

● Executing an ineffective project review system

LSS Marketing Opportunities to Leverage


Corporate-College-Community Training/Deployment

● Treating Belts to apply LSS in their projects

● Individuals or Group Training/Application

● Deployment Across an enterprise/group/students

● Project Application Support to existing or new LSS Belt

● Technology opportunity to apply LSS in any organization

● Linking LSS training/application to students’ career benefits

Your “Rich Spot” LSS Target Audience

Colleges, Corporations & Communities


How is their Sales Versus Capacity Ratio (SCR)?

● SCR > 1 – Not likely to need ROI, or may easily sign up for training

● SCR ≈ 1? – Somewhat likely to respond and value training + application

● SCR < 1? – Very likely to justify ROI from LSS training + application

Enterprise’s SCR Baseline and Target for 2014 and beyond?

What Are We targeting to “PULL” Our Audience?

Identify Proactive vs Reactive Audience


What is their leadership saying/doing/leading?

● Process Focused

● Customer Centricity

● End Customer EBITDA Purpose

● Way beyond mere training solution

● All about changing DNA of culture’s thinking

Leadership Engages In “Value” for End

Customers!

Strong “PULL” Factors for you!


Google Key Word Search String – “Market Statistics on LSS”

Market Statistics Quantification!

Untapped Potential


LinkedIn “Jobs” Key Word Search String

Market Statistics Quantification!

Hurry Territory


Value of your current training products for your customer?

● Knowledge?

● Cost of Training?

● Speed of Training/Solution?

● Convenience E_Learning?

● Other Criteria?

Value of LSS for Organizations Providing

Training

How do you sell it to them?

How do you justify the investment?

How do you close – Pull or Push?


A small training company has:

● Low marketing budget?

● Less staff to market and sell?

● Dependent on existing customers?

● LSS can significantly aid in helping them outbid competition through this

added feature on their portfolio?

Value of LSS for Small Training Companies

What are your pain points?

What 3Ds do you need help with?

What gaps do your customers have?


A medium or large training company has:

● Medium or High marketing budget?

● More staff to market and sell?

● Dependent on existing as well as new customers?

● LSS can help them reduce their internal operating costs as well as increase

their SCR?

LSS for Medium and Large Training Companies

What is the ROI on your sales/marketing staff?

What is the yield of your sales process?

What is your average SCR?


A small consulting company has:

● Little or insignificant marketing budget?

● More staff to market and sell?

● Dependent on existing as well as new customers?

● LSS can help them reduce their internal operating costs as well as increase

their SCR?

LSS for Small Consulting Companies

What are your pain points?

What 3Ds do you need help with?

What gaps do your customers have?


● Management comprehension and commitment

● Learning from past deployment Success and Failures

● Availability of a Data-Rich environment

● LSS leaders are recruited internally to execute

● Relentless effort to rid processes of 3Ds

● A dedication to changing mindset and culture’s DNA

Scenario’s to Be Successful with LSS

Training

Infrastructure committed

HR, Fin., and IT


● SCR status with current customer portfolio

● Desired or planned SCR for the fiscal year

● Do they acknowledge the gaps to be closed?

● Are they willing to invest in external assistance?

● A true soul searching effort/exercise on paper


Training

Small Training Companies

Where are we?

Where do we want to be?

Are we open to being coached?


● SCR and growth plans plus business constraints

● Do they favor to the “Pull” mode to sell?

● Do they document baseline and gaps to be closed?

● Are they aware of trained staff attrition?

● Can they comprehend a sound ROI via LSS?


Training

Medium/Large Training Companies

SCR

PULL Mode

Document Attrition

ROI


● SCR goals and objectives for the next fiscal quarter?

● What is their “Unique Sales Proposition (USP)?”

● What is their “pain” (Voice of Customer) point?

● Are they satisfied with where they are?

● Do they wish to be elsewhere?


Training

Small Consulting Companies

SCR

USP

VOC

Gaps


What is your business constraint (bottleneck)?

● High bench time of salaried/contractual staff?

● Long sales closure cycles of products/services?

● Need repeat client business and/or referrals?

● Better margins from current pricing model?

● Inconsistent sales closures across quarters?

● Customer not interested in products/services?

● Need SMEs for customer product/service demands?

How Can You Start with LSS?

Any Type: Small, Medium, Large or

Consulting

Go from “Push” to

“Pull” Mode


Pilot Project to Scale-Up?

● Choose the right area for your Pilot LSS Project!

● Execute Pilot Project either in your enterprise or at the customer’s!

● Ensure leadership is aggressive on “Pilot Project Success!”

● Pilot Project topic could be something translatable to other business areas!

● Design project charter for results within a Fiscal Quarter!

● Link success of Pilot Project to your or customer’s “EBITDA.”

● Assess what worked and what can be improved prior to scale-up!

Strategy to Benefit from LSS

Products/Services

Translation and Scale-Up

From Pilot LSS Project

Success story!


Sustain Gains from a LSS Pilot Project Breakthrough!

● Audit closed Pilot Project by a 3rd party auditing firm!

● Convert process improvement (3Ds) benefits to Value for customer!

● Reward, and Recognize team, to Renew Pilot Project Member Spirit!”

● Assess sustainability of Pilot LSS Project breakthrough and never

compromise!

● Institutionalize change needed across the enterprise or customer’s

processes!

● Motto is “One-Time-Training” and a “Lifetime-of-Application.”

Validation and Sustenance of LSS Efforts!

Translation and Scale-Up

From Pilot LSS Project

Success story!


How You Can Get Started - 1/2

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How You Can Get Started - 2/2

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3

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Contact Us

Connie Tai

Marketing Manager

ITpreneurs | Rotterdam | The Netherlands

mailto:[email protected]

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