six sigma leadership & culture

April 13, 2023

6 - Leadership & CultureShifting the Paradigm - To ensure success

Bill PughVP Operations, Océ North America

Discovering the Reality of Lean Six Sigma in Manufacturing, Services, & Transactional Environments Dallas TX – Dec 2,3 2004

6 - Leadership & Culture - Shifting the Paradigm – To Ensure Success. Bill Pugh April 13, 20232

Agenda

Océ (the commercial that allows me to be here)

Success vs Failure • The basic problem and qualitative findings

Utilizing the tools of 6• A more structured approach

Project findings• Recommendations

What must be done

An approach• A roadmap for a successful 6 journey

Conclusion

April 13, 2023

Who we are, what we do

Océ


OcéWho we are & what we do

We are….• ~$3 billion sales• Technology leader for over 125 years• Headquartered in the Netherlands• U.S. accounts for ~40% of the company• Publicly traded in Amsterdam and the NASDAQ• 22,000 employees• 2000 R&D personnel (imaging technology and software)

We serve the enterprise with integrated document management solutions

What we do…• Provide industry-specific document processing & management

solutions• High Speed Digital Print• Wide Format• Facilities Management

• Throughout the organization• Office, Data Center, Central Reproduction, Transaction Printing• Design Document Management Systems• Display Graphics

• Analytical (data driven) consultation• Document management staffing


DocumentsDocuments create problems….… Océ delivers solutions

Did you know?• Knowledge workers spend up to 50% of their time trying to find documents• 2 to 3% of every expense dollar is eaten up by printing costs• 6 to 15% of a company’s expense goes into document creation, distribution, maintenance, and disposal

Document management, is not a core competence of most organizations

• Some organizations have a few experts, but they generally focus on just a department or two.

• Most customers only use part our expertise and capabilities• Technology is moving too fast for most enterprises to optimize on their own

This is where we come in….

Océ provides effective document production and management solutions, providing significant savings


We are known by the customers we keep……& the solutions and savings we provide

Reduced document retrieval from 3.75 days to under 5 minutes

Management of 400,000 infrastructure drawings, some from the 1880’s

Automation of land plat storage and customer self-service retrieval

Eliminated 1,300 filing cabinets, reduced staffing 90%, increased file distribution accuracy 78%

Print on demand - training manuals

Maximized efficiency of 55 million monthly statement printing requirement

Unification of mail processes and 6 productivity for continuous improvement

Management & staffing of enterprise-wide printing and wide format drawings, operating 35 production centers – reduce cost 45%

Consolidated 9 printing centers into 1, staffed by Océ personnel

April 13, 2023

The basic problem, and qualitative findings

6 – Success vs Failure


Large numbers of 6 efforts are falling well short of expectations – many are failing

Many organizations have embraced 6 with tremendous fanfare, and fairly quickly this miracle program, quietly fads away.

• Potential to deliver significant results

• Little success to show for the effort

• Leaving behind:

• a large bill for the project team

• disillusioned Black & Green Belts

• a bitter taste in the sponsors mouth

With 6….…. Failure – should not be an option


Common wisdom has clearly identified the cause and the culprits

A quick, qualitative, analysis reveals that the top reasons given for failure are:

• Leadership – CEO, did not provide sustained support

• Culture – People, did not embrace change

• Internal systems & processes – not robust, lack metrics

This is becoming all too familiar……Frankly, I have seen this movie before,

and I did not like it the first time.

April 13, 2023

A more structured approach

Utilizing the tools of 6


Using 6methodology to dig past common wisdom

Define the problemMany 6 programs fail.• Initial hypothesis: poor leadership, culture, or lack of robust systems

My challenge ……Use tools to identify the defect and to develop a solution

MeasureSuccessful / Failure• Met expectations or notAnalyzeGetting to the root cause• Y f X, X, X, X, …..

ImproveCommon sense and simple ANOVA reveals the true root cause• The classic low hanging fruit

ControlGreat news, the solution is within our capability and control

(DMAIC)


Consider this my final presentation for my 6 project

Problem statement

6 programs fail too frequently

My initial finding – it is a leadership issue …

… And, there is more to leadership that we generally realize

DefectUnsuccessful 6 implementation or results that fall short of expectations

GoalIdentify the root cause – recommend a solution

April 13, 2023

Recommendations

Project findings


Benchmarking leaders……Great leaders drive & create great change

They have vision, direction, fortitude….…. They march to their own drummer


These leaders had a huge advantage

It is rare to have such advantages

They had vision• They may not have known exactly where they

were going, but they knew they did not like where they were

They had direction• They were the experts & the leaders;

they could drive the change

They had fortitude• They kept at it in face of tremendous

odds and numerous nay-sayers

They had time• Because they were first, they did not

have a deadline to make


Unfortunately, most of us are not blessed to have such great leaders, nor be the first

Not Great, Not First… …But they want to succeed

Our leaders are not extraordinary, and they are not schooled in 6

• On average, most are average

• 6 was not a “requirement” when they were climbing

6 has been around for a while

• Deming, SPC, 3 – 1940s

• Motorola & Mikel Harry - 1980s

• Allied Signal & Larry Bossidy – early 1990s

• GE & Jack Welch – mid 1990s


You need to help them become great 6 leadersSet them up for success

• Know the organization and its capabilities

• Manage expectations

• Set attainable goals

• Use the right tools

Coach, mentor, & lead your leader / sponsor

• Ensure there are no surprises

• Show them the way

• Make them look good


Y f X

And that is the paradigm shift…

… It is not about them,

….It is about YOU!

Great Leadership

f

Great Followership

Followership is from Greg Reid, SVP & Chief Marketing Officer, Yellow Freight

April 13, 2023

How to be a great follower – creating great leaders

So what must you do?


First, know why you are thereHired gun

• Come in, solve a few nasty problems, move on

• Point of the sword – Leader using you to drive change, at your expense

• Leader wants a few quick hits

Develop a sustainable 6 culture

• Data driven

• Continuous improvement

• Leader wants to be in it for the long haul

Here, we are addressing the second option


You need to help them become great 6 leadersSet them up for success

• Know the organization and its capabilities

• Manage expectations

• Set attainable goals

• Use the right tools

Coach, mentor, & lead your leader / sponsor

• Ensure there are no surprises

• Show them the way

• Make them look good


Do some researchknow your culture, process, population

Is your culture one accepting and excited about change?• …Is change management required

What is your process entitlement?• …Should you improve or replace

Do you have consistent & repeatable processes?• …Should you be focusing on standardization

Are you employees ready for the quantitative requirements of 6? Are they afraid of math?• …Should you start with some of the basics

Be prepared, know what you are getting intoShare your learnings with your leader


Setting expectationsInternally• Leadership• Organization• Potential team members

Externally• Customers• Suppliers• Share holders

Style• Be precise, data driven, and deliver

Under promise….…. Over deliver


Managing the culture is not difficult if you stick to the basics

Nothing succeeds like success

Leaders Follow Success

CultureFollowsPeople

PeopleFollowLeaders

Success BegetsSuccess


Nurture the culture you desire

Who gets the management awards?• The fire fighters who jump in when there is a big issue• The people who do not have problems because they are constantly

addressing the little issues so that the big ones never occur.

Teach basic problem solving• Not sexy – but it delivers

Constantly coach and keep leadership informed• They need to know what is coming next


Question - Do you build an organization or create a success?

There is no right answer• Driving this dialogue with you leader will demonstrate

your knowledge of the issues at hand• Driving this dialogue with your leadership team will

aligned them with your success

Knowing the culture will help you reach the correct answer for your situation

Most leaders have built something from the ground up• They understand the difference between small

immediate successes and building an organization to generate larger successes later

• They understand the time and payoff tradeoffs. They expect you to provide a plan, dates, milestone, etc. This should be agreed to at the start.


Know what tools to use when……use and teach the appropriate tools

100% bad data or no data…• …Does not support additional analysis

50% rolled throughput yield…• …Does not benefit from regression analysis

20% Customer dissatisfaction…• …Does not need a designed experiment (DOE)

10% scrap or rework…• …Does not require response surface analysis

Just because you can, does not mean you should

Misuse of tools is the #1 cause of:• Black Belt and Green Belt frustration, fatigue, and burnout• Organizational mistrust and disillusionment


To speak about 6 as a quick hit wonder is a disservice

Be accurate & precise in your discussions• 6 is unlikely to cut your costs 50-90%

• But it can reduce your rework 90%• 6 is unlikely to increase customer satisfaction 25%

• But it can reduce defects 90% • 6 is unlikely to increase your output 10-100x

• But it can increase Rolled Throughput Yield to above 95%

Leaders may not know 6, but they know snow-jobs

• And if they don’t, those in the organization will see it• And they will set you up to fail

Do not sell instant results or snake oil… Let the results do the talking

April 13, 2023

A roadmap for a Successful 6 journey

An approach


6 is a journey

Clean it up and standardize

• 5S, Process Mapping, TPM, & ISO

Make the process repeatable, remove variation

• “Practice does not make perfect, perfect practice makes perfect” – Coach John Woodward (won 10/12 NCAA Championships)

• Pick the best process and improve• Do not have 20 different processes and allow people to pick which they prefer

Develop measurements & metrics

• Determine what to measure – • Customer focused CTQs

• Performance KPI

• Gage R&R


Basic tools start the 6 journey

Get your measurements / metrics right• Know what to measure, what matters

• Voice of the Customer• CTQ Tree – Reverse NCAA (Bill Dobbs, GE ~1985)

• Performance KPI (Key Process Indicators)• Make sure the metrics are consistent & accurate

• Gage R&R• Sanity check

Not sexy…… But it works, it will deliver solid results

FMEAScatter plotsCause & effect diagrams Rolled Throughput YieldControl Charts

Process Maps – Post-itsBrainstormingAffinity DiagramsParetoVideo tape


Make your leader(s) look smart

Coach them

• Teach them the basics

• Provide them with a few key stories

• Introduce them to people that have succeeded

When the leader looks and acts smart……. you win!

Prepare them for every 6 meeting

• Briefing books

• Run through before

• Notes on key success and nasty issues

April 13, 2023

The one page summary

In conclusion


Successful 6 is led…Great leadership is the result of great followership

When 6 fails, it can usually be traced back to:

• Poor expectations management

• Poor followership

• 6 leaders lack of process & organizational knowledge

Leadership & Followership – it’s a Partnership…… You make it happen

Keys to success

• 6 leaders who are great followers

• Solid understanding of the environment

• Set, manage, exceed expectations

• Coach your leaders, make them great

April 13, 2023

Thank you

six sigma leadership & culture

Documents

disposal document management

minutes management

document creation

oc personnel

wide printing

reduced document retrieval

leadership culture

agenda oc