Lean Six Sigma White Paper1. Failure to
Launch
How to Avoid Lean Six Sigma
Failure
Next Level Tech Writing
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Phone: 619-354-8330
Email : melinda@nextleveltechwriting.com
2. Next Level Tech Writing
Macon, GA
www.nextleveltechwriting.commelinda@ nextleveltechwriting.com
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Strategic White Paper | Failure to Launch: How to
Avoid Lean Six Sigma Deployment Failure
FAILURE TO LAUNCH
HOW TO AVOID LEAN SIX SIGMA DEPLOYMENT
FAILURE
Lean Six Sigma has evolved as one of the most powerful business process
improvement methodologies of this age. However, despite the power of the
methodology, the sophisticated analytical tools, and the trained professionals,
up 80% of all Lean Six Sigma deployments fail. This is widely due to a
misguided focus that does not contribute to the overall strength of the program.
Without a focus on the factors critical to a successful deployment, the
methodology, tools and training will yield themselves unfruitful and void of any
benefit. While training and education are integral and significant aspects of
Lean Six sigma, they should not be the initial focus of program deployment.
Companies spend thousands of dollars on elaborate training programs and
materials, while overlooking critical intangible factors to successfully deploy
Lean Six Sigma. If organizations were aware of these critical success factors and
understood their hierarchy, they would almost ensure successful
implementation and save thousands of dollars in a failed deployment.
There are ten critical success factors of successful deployment of Lean Six
Sigma. These ten factors can be
segregated into three distinct
phases: Foundational, Structural,
and Sustaining. Beginning with
the Foundational Phase and
progressing respectively, each
factor should be implemented
within the proper phase in order
to achieve successful deployment.
Below are the ten critical success
factors:
1. Management Commitment and
Engagement
2. Linking Lean Six Sigma to
Business Objectives
3. Adapting Culture
4. Enterprise Wide Rollout
5. Communication
6. Linking Lean Six Sigma to
Customers
7. Project Selection and
Prioritization
8. Training and Education
9. Program Performance Tracking
and Reviews
10.Rewards and Recognition
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Strategic White Paper Failure to Launch: How to Avoid Lean Six Sigma Deployment Failure
Understanding the hierarchy of these factors and realizing the implementation phase
in which a company is currently, will help to give greater emphasis on the aspects of
the program that should be focused on to achieve sustained success.
Phase 1: Foundational Phase
Successful Lean Six Sigma deployment begins with the Foundational Phase. During
this phase the commitment and engagement of senior management must be achieved
and a linkage of Lean Six Sigma and business objectives must be established.
Factor 1|Management Commitment and Engagement
The most critical factor in the successful deployment of Lean Six Sigma is
having a management staff that is fully engaged in the process and committed to
seeing it through to full maturity. Their commitment to understanding the
methodology, being engaged, and supporting the initiative is what will set the tone for
the entire program within the organization. Lean Six Sigma deployment will require
time, resources, and a rearrangement of priorities in some cases. Because upper
management ultimately controls budgets and sets priorities for the company, their
support of the program is the most
significant success factor.
Factor 2|Linking Lean Six Sigma to
Business Objectives
Business objectives are a symbol of
what a company is committed to. These
objectives and strategies drive activities
from the very top level of an organization
to the very bottom. Linking Lean Six Sigma
to these objectives will help to facilitate an
integration of the methodology into the
activities of all employees within an
organization and reiterate the importance and dedication of the program. The
methodology should be very visible within business objectives and strategies. Using
Lean Six Sigma language and verbiage when disseminating objectives to the
organization will show the commitment of management to the program and will also
help the employees more readily embrace this way of conducting business.
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Strategic White Paper Failure to Launch: How to Avoid Lean Six Sigma Deployment Failure
Phase 2: Structural Phase
The Structural Phase is the second phase of Lean Six Sigma deployment. During this
phase the factors and aspects that will support the stability of the program should be
instituted. Efforts to transform the company culture, communicate the newly
launched program, train employees, and select projects to support the financial return
of a program should be made. Finally, a complete enterprise rollout should commence
to guarantee a unified vision.
Factor 3|Adapting Culture
Creating a culture of continuous improvement is essential to successfully deploying
Lean Six Sigma. This type of company culture and mindset should be facilitated by top
level management and dissipated throughout the entire organization. Culture
adaptation is a by-product of upper level management support. When senior level
managers are actively engaged in the aspects of Lean Six Sigma, lower levels employees
will perceive the importance of the program and begin to mimic what they see within
the leadership team. The old adage “Practice what you preach” is a necessity for
management as it pertains to adapting a company’s culture to embrace the Lean Six
Sigma methodology.
Linking Lean Six Sigma to business objectives and goals will also facilitate a culture
change. When employees see that this approach is integrated into the overall business
strategy, their reception and adherence to the requirements and expectations will be
increased. These actions help to change and form a culture committed to Lean Six
Sigma.
Factor 4|Enterprise Wide Rollout
Deployment of a Lean Six Sigma program should occur throughout the entire
organization. Many companies have failed to launch successful Lean Six Sigma
programs because they attempted to “test” the methodology by launching it within
certain units of the business. This causes contention because there is no unified
business vision. Lean Six Sigma in some cases changes the approach to problem
solving and business process improvement. If various areas within the business are
using different approaches and methodologies, the success rate of Lean Six Sigma is
greatly compromised. While it may not be feasible to rollout all aspects or use all Lean
Six Sigma tools within every area of the business, the attitude, approach, and
continuous improvement mindset of Lean Six Sigma, should be deployed enterprise
wide.
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Strategic White Paper Failure to Launch: How to Avoid Lean Six Sigma Deployment Failure
Factor 5|Communication
Communicating the aspects and goals of Lean Six Sigma will aid in the deployment of
the methodology. Employee awareness gives strength to the program. Communicating
concepts, results, and program achievements is key to Lean Six Sigma onboarding. It is
a known fact that people reject what they do not understand. By sharing Lean Six
Sigma information with the workforce, employees will gain understanding and be more
accepting of the program.
Factor 6|Linking Lean Six Sigma to
Customers
The essence of Lean Six Sigma is to
create value for the customer and
improve the quality of products and
services provided. Lean Six Sigma
activities and projects should be linked
to delighting and pleasing the
customer. All program initiatives
should support this purpose in some
way. Keeping the customer as a focus
and linking the program activities directly to some aspect of creating value for the
customer, will add stability and ensure the longevity of a Lean Six Sigma program.
Factor 7|Project Selection and Prioritization
Project selection is one of the most challenging aspects of Lean Six Sigma. It also has
the highest impact on the financial return of the program. Many executives and senior
level managers can quickly point out problems and issues that need to be addressed
within an organization. However, organizations must create a standard process by
which projects are identified, reviewed, selected, and prioritized. Standard work is a
very powerful Lean tool and it should be utilized during the project selection and
prioritization process.
Utilizing a project selection committee, with standard criteria as to how projects
should be evaluated is an effective way to select projects that have the highest impact.
The selection committee should review the strategic plan and understand the high-
level goals and targets of the organization. Using this as a guide, projects should be
selected and reviewed by the group and prioritized using a project prioritization
matrix. The prioritization matrix provides the opportunity to access the impact of
each project by calculating a ranking based on critical measures generated by the
committee. This approach gives a collective, standard, repeatable process for project
selection and prioritization. Choosing the proper projects that will impact the
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Strategic White Paper Failure to Launch: How to Avoid Lean Six Sigma Deployment Failure
business in a positive manner gives strength to a Lean Six Sigma program.
Factor 8|Training and Education
Lean Six Sigma cannot successfully be deployed without workforce training and
education. Training the workforce and educating them on the Lean Six Sigma
methodology is by far the most costly aspect of the implementation. Ensuring that the
leadership team and project managers are trained and competent on the Lean Six
Sigma methodology is critical. These are the individuals that will help to propel the
program forward and guide the strategic function. In addition to this, the lower level
employees must receive some level of training because they make up the greater part
of the organization and will be the group to support sustainability and ensure the
continuous improvement culture is maintained.
While every employee will not receive belt level certifications or become Lean masters,
for a successful deployment, all individuals within and organization must receive some
form of education and training on the Lean Six Sigma process.
Phase 3: Sustaining Phase
Now that a Lean Six Sigma deployment foundation has been established, and the core
structure of the program reinforced, efforts to support and sustain the longevity of the
program must be instituted. This can be done by tracking the performance of your
system through monitoring Key Process Indicators (KPI’s) linked to Lean Six Sigma and
rewarding individuals who are actively engaged in actions that help propel the
program forward. This phase and its factors are frequently overlooked by companies
who implement Lean Six Sigma and this oversight often leads to the demise of the
program.
Factor 9|Program Performance Tracking and Reviews
Reviewing and tracking the performance of KPI’s linked to Lean Six Sigma is imperative
for the sustainment of the program. Sharing and tracking metrics throughout the
organization will maintain engagement, interest, and support for Lean Six Sigma
activities. Management must identify metrics critical to meeting business objectives,
identify how they are linked to the Lean Six Sigma, and share them throughout the
enterprise. Below is a list of KPI’s that can be linked to Lean Six Sigma and tracked to
assess program performance.
Labor
Productivity
People
productivity
(including
salaried
employees)
Process
Capability
Turnover Rate
Absenteeism Rate
Incident Rate
Rework Units
Customer
Returns
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Strategic White Paper Failure to Launch: How to Avoid Lean Six Sigma Deployment Failure
Process Cycle
Time
Raw or WIP
Inventory
Fill Rate
Warranty Costs
On-Time
Shipping
Percentage
Complaints
Overall
Equipment
Effectiveness
(OEE)
Customer
Satisfaction
Process
Capability
Tracking Lean Six Sigma KPI’s will ensure that
program efforts remain aligned with business
targets. Also, reviewing and sharing
performance with the workforce will provide
deployment sustainability.
Factor 10|Rewards and Recognition
Rewards and recognition can be used as
motivational tools to support the longevity of
Lean Six Sigma deployment. Rewarding
employees for leading or supporting program
projects, helps to build their confidence and commitment. It also shows that
management values their contribution. When other employees see that these type of
efforts are being rewarded and recognized it sparks their interest and desire to be
more involved as well.
Achieving Lean Six Sigma Success
Addressing each of the critical factors within the proper phase of Lean Six Sigma
deployment will help to ensure success and longevity. Understanding the hierarchy of
these aspects and their importance provides a strategic roadmap to deploy one of the
most current and effective business process improvement methodologies. The overall
goal of every Lean Six Sigma program is to please customers and have a positive
impact on business financials. With proper commitment, focus, and prioritization,
these results can be easily be achieved.
Management engagement and commitment are imperative to successfully deploying a
Lean Six Sigma program. Leadership holds the key to creating a strategy to execute so
that business processes will be improved and customers will be delighted. Avoid
losing thousands of dollars and wasted effort on a failed Lean Six Sigma launch and
use the hierarchical approach to instituting the 10 critical success factors outline in
this paper.
For additional questions on how your Lean Six Sigma launch can be successful, feel
free to contact Lean Training Resources for more information.