Some Stats
60% of 6 Sigma initiatives fail to produce desired results
How Software as a Service (SaaS) can address the most common causes for failure in Lean 6 Sigma initiatives • •
Grant Crow – CEO i-nexus Jon Fitzgerald – Solution Consultant
Presentation Agenda
1. Common causes for Failure 2. Results of our own poll 3. Positive impact of relevant software on common causes 4. Benefits of SaaS 5. Summary
The common causes of failure causes of Failure
1. 2. 3. 4. 5. 6.
Lack of benefit quantification Lack of Leadership buy in Lack of tangible results from a pilot Lack of coaching and skills “This only applies to manufacturing” Statistical “mumbo jumbo” raises barriers
Key Problems Facing Early Scale and Replicate Phase Deployments Root Cause
Cause
Project Selection is Not Systematically Driven by PerformanceExpectation Gaps in the Outcomes Managers Are Responsible For
Not Interested Managers Cannot See the Direct Linkage Between Projects and Their Personal Objectives
Managers Have Not Personally Experienced ‘Proof’ of the Power of Formal PI Tools on a Problem They See As Similar
Not Convinced Managers Do Not Believe PI Will Deliver the Result They Need in the Time They Have
The Consequences For Not Delivering Against Business As Usual Targets Are Greater Than The Consequences on Not Delivering Improvement Projects
Pain
Problem
Cause
Not Motivated Managers Choose to Prioritise Business as Usual Delivery Over Driving Improvement Projects
Problem
Symptom Managers Don’t Make Time For Project Reviews Managers Don’t Address Project Road-blocks Managers Don’t Provide Enough (or the Right) Resources to Projects
Lack of Management Buy-in to the Performance Improvement Program
Managers Don’t Ultimately Take Actions to Liberate Tangible Benefits Managers Behaviour Does Not Reinforce PI Principles Managers Shortcircuit Formal PI Approach With Unsustainable Actions Managers See the PI Initiative as the Deployment Leaders Program
Pain Projects Take Longer to Do Than They Should
Fewer Projects Are Successful Than They Should Be
Tangible Project Benefits Are Lower Than They Should Be Deployment Leaders Spend Time and Energy Compensating for Unsupportive Management Behaviour Deployment Leaders Spend Time and Energy Pushing PI Up the Management Agenda
Consequence
Tangible Program Results are Substantially Lower Than They Could Be
PI Program Stalls and Ultimately Fails
Rate of Program Expansion is Eroded As Deployment Leader’s Time and Energy is Sapped Keeping PI on Agenda
Lack of Benefit Quantification
1. There need to be benefits! 2. They need to be quantifiable 3. They need to be quantified
Lack of Leadership Buy In
1. The biggest single cause – see the poll results! 2. Most Executives are not known for patience.
Lack of Results from a Pilot
Pilot Schmilot. If you have to accept a pilot, you already have a problem!
Lack of Coaching and Skill
1. Six Sigma is a specialized area 2. But I can seem complicated and opaque 3. Skilled practitioners deliver better business benefits
Seen as a Manufacturing toolset
It’s a Marketing problem. Six Sigma needs better PR.
i-nexus poll results‌
Proposed Solutions
1. Benefit quantification – – – –
Needs to be systematic Needs to be systematized Hard and soft Mom and pop (assorted spread sheets) is not credible
Another Solution – Great Reporting
• Everyone loves a good report • Good reports change behaviour through focus • Visibility and transparency drive change (but need to be managed)
Solution 3 – Clear Links to Strategy
1. All projects to have a clear link to a current corporate goal 2. Real time progress evaluation through metrics and reporting 3. Join the privileged few by aligning strategy and initiatives through Hoshin Kanri
Some Benefits of Software as a Service
• Lower upfront investment • Much lower Total Cost of Ownership • Relevance – it’s simply more current • Achieve your benefits faster
Talk to us!
We’re nice people and we know what we’re doing. Follow the link to contact us. http://www.i-nexus.com/contact-us.html