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Implementing Six Sigma in Implementing Six Sigma in a Not-For-Profit a Not-For-Profit

EnvironmentEnvironmentOuida Cash, CEOOuida Cash, CEO Bill Hathaway, CEOBill Hathaway, CEO

Starfish Family ServicesStarfish Family Services MoreSteam.comMoreSteam.com

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Hey! We’re running a Hey! We’re running a business here!business here!

What makes not-for-profits What makes not-for-profits different than for-profits?different than for-profits?

Why should I care?Why should I care? What is your product? What is What is your product? What is

the Starfish product?the Starfish product? Why use Six Sigma to produce Why use Six Sigma to produce

and price our product and and price our product and compete in our marketplace? compete in our marketplace?

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No Money, No Mission!No Money, No Mission!

We’re Mission Driven! For years in the We’re Mission Driven! For years in the health care and human service health care and human service environment we’ve heard what you’ve environment we’ve heard what you’ve heard…heard… We’re therapists, doctors, social workers, (add We’re therapists, doctors, social workers, (add

your own) We don’t your own) We don’t dodo Six Sigma! Six Sigma! We need to give each client, patient, child, (add We need to give each client, patient, child, (add

your own)- the best service, personal attention, your own)- the best service, personal attention, more time, special treatment! Six Sigma would more time, special treatment! Six Sigma would stifle our ability to serve others!stifle our ability to serve others!

Payment isn’t our problem, that’s the billing, Payment isn’t our problem, that’s the billing, finance, some other department. finance, some other department.

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Changing the Culture- Tying Changing the Culture- Tying Money to MissionMoney to Mission Connecting money and mission by:Connecting money and mission by:

Putting cost figures on each activity, each Putting cost figures on each activity, each meeting, on rejected claims, overdue payments, meeting, on rejected claims, overdue payments, etc. etc.

Helping people see the 30% factor- money lost Helping people see the 30% factor- money lost through lack of efficiency and effectiveness and through lack of efficiency and effectiveness and how this impacts raises, funding for their how this impacts raises, funding for their programs, etc. programs, etc.

Adding Six Sigma to performance reviewsAdding Six Sigma to performance reviews Adding Six Sigma training to orientationAdding Six Sigma training to orientation Having senior leaders as Black or Green Belts, Having senior leaders as Black or Green Belts,

using the language, utilizing the tools and using the language, utilizing the tools and expecting reports that show the connection expecting reports that show the connection between mission and marginbetween mission and margin

Only accepting new business that meets the Only accepting new business that meets the “three circle” criteria “three circle” criteria

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Metrics- A New LanguageMetrics- A New Language Define metric? Objective versus subjective Define metric? Objective versus subjective

measurementsmeasurements But the patient, client, person said they But the patient, client, person said they

were happy with the service- isn’t that were happy with the service- isn’t that enough?enough?

Measuring change of internal processes; Measuring change of internal processes; mental health, parenting ability, child mental health, parenting ability, child readiness for school, etc. readiness for school, etc.

What to do when there are no What to do when there are no standardized metrics? standardized metrics?

Getting everyone to use a new language-Getting everyone to use a new language-who goes first?who goes first?

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Data Demons!Data Demons!

Data systems to meet Six Sigma Data systems to meet Six Sigma needs- not every system can handle needs- not every system can handle the new data needs.the new data needs.

Data, data everywhere- what’s it all Data, data everywhere- what’s it all mean? What are you measuring? mean? What are you measuring? How to determine the right things to How to determine the right things to measure. measure.

Getting from “gut” to data; changing Getting from “gut” to data; changing from decisions based on anecdotal from decisions based on anecdotal information to data driven decisions. information to data driven decisions.

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Building CapabilityBuilding Capability

Grant of e-LearningGrant of e-Learning Focused on Yellow Belt level – Focused on Yellow Belt level –

basic tools basic tools CEO trained as a Black BeltCEO trained as a Black Belt Blended training model Blended training model

employedemployed Built on foundation of existing Built on foundation of existing

Balanced Scorecard workBalanced Scorecard work

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Leadership Perspective:Leadership Perspective:Six Sigma On The SidewalkSix Sigma On The Sidewalk

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The Leadership ImperativeThe Leadership ImperativeAn ant colony attempts to carry away a dead lizard.

They can move it – but not all in the same direction.

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The Leadership ImperativeThe Leadership Imperative

The ants are well-trained. They know their jobs.

But they lack leadership, direction, and structure in the face of a large task.

So leadership and clear priorities are paramount.

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Project SelectionProject Selection

EnterpriseBalanced Scorecard

Program Balanced

Scorecard

Program Balanced

Scorecard

Project

Enterprise Imperatives

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Early Results!Early Results!The overall experienceThe overall experience

This is harder than it looks! This is harder than it looks! It takes longer than you think!It takes longer than you think! The “push back” is tremendous! Old The “push back” is tremendous! Old

cultures don’t die easily or without cultures don’t die easily or without pain.pain.

There is tremendous temptation to There is tremendous temptation to give up when the progress is slow, give up when the progress is slow, costly, painful, difficult, etc. costly, painful, difficult, etc.

It’s one of the most important things It’s one of the most important things we’ve ever done and will change the we’ve ever done and will change the agency forever! agency forever!

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Early Results- First projectsEarly Results- First projects

Space utilization in our mental health Space utilization in our mental health clinics; from 20% to 95% occupancyclinics; from 20% to 95% occupancy

Billing processes- the battle between Billing processes- the battle between therapists and the finance therapists and the finance departmentdepartment

250,000 meals a year produced- 250,000 meals a year produced- who are we feeding, how much does who are we feeding, how much does it cost per meal, what’s the best way it cost per meal, what’s the best way to get it to the five Head Start sites? to get it to the five Head Start sites?

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Starfish Family Services’ Future:Starfish Family Services’ Future:The Family Success Model The Family Success Model

Creating proven pathways to sustainable Creating proven pathways to sustainable family success, breaking the cycle of family success, breaking the cycle of intergenerational povertyintergenerational poverty

Where to start? The most complex Six Where to start? The most complex Six Sigma project imaginable! Sigma project imaginable!

Designing the Experiment; working to Designing the Experiment; working to determine what the critical inputs are that determine what the critical inputs are that result in the output of “Family Success”result in the output of “Family Success”

Defining “family success”- what is your Defining “family success”- what is your definition of success? What we found in definition of success? What we found in our national search may surprise you.our national search may surprise you.

Using Six Sigma’s methodology to change Using Six Sigma’s methodology to change the future for children and families. the future for children and families.

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Q & A?Q & A?

Thanks for your interest in this Thanks for your interest in this session.session.

For more information about Starfish For more information about Starfish Family Services please email Ouida Family Services please email Ouida Cash at Cash at ocash@sfish.orgocash@sfish.org

For more information about For more information about MoreSteam.com email Bill Hathaway MoreSteam.com email Bill Hathaway @ @ bhathaway@moresteam.combhathaway@moresteam.com

Think about how you can volunteer Think about how you can volunteer your wonderful Six Sigma talents in a your wonderful Six Sigma talents in a not-for-profit near you!not-for-profit near you!