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Envisioning Quality and Excellence in a Services Environment
Thomas McCartyEVP Six Sigma Practice LeaderJones Lang LaSalle
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Introductions
Tom McCarty
Executive Vice President, Six Sigma Deployment Leader, Jones Lang LaSalle, Inc
Co-Author of "The New Six Sigma“, Lead Author of “The Six Sigma Black Belt Handbook”
15 years experience in leading Six Sigma Business Improvement Initiatives working with numerous executive teams across multiple industries Helping formulate strategic plans, lean process designs, and focused Six
Sigma implementation plans A variety of industry and functional expertise to assist leaders in
enhancing their business performance and financial results [email protected]
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The Case for Change
“Your costs are too high and your service stinks!!”
Chief Financial Officer
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The Difference Between Average and Best Practice Can Make or Break A Service Business
Practice Area Improvement Realized
Call Center Agent Productivity Calls Per Day 30%
Project Management End-to-End Cycle Time 30%
Project Management Headcount 20-30%
Strategic Sourcing Year-to-Year Cost Reduction 20-30%
Month End Revenue Recognition Labor Costs 40%
Accounts Payable Labor Costs 20%
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Six Sigma Methodology Is…
An overall methodology that drives business improvement. A proven tool set for driving and achieving transformational change within
an organization. A Continuous Improvement Process that focuses an organization on
Customer requirements Process alignment Analytical rigor Timely execution
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Six Sigma Adoption – The Maturity Spectrum
Adoption Level
Bus
ines
s Im
pact
Managing process variation Monitoring KPI’s Continuous improvement
Team based problem solving Consistent use of DMAIC model Trained project resources Project selection and prioritization
process
Organizational Transformation Voice of the Customer drives
strategy execution Collaborative process integration Metrics driven governance process
Metric
Methodology
Management System
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Six Sigma Adoption – Levels of Implementation
Adoption Level
Bus
ines
s Im
pact
Discrete Problem Solving
Targeted Improvement
Projects
Organizational Transformation
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Dismantling Resistance
Manufacturing vs. Service
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Dismantling Resistance
People vs. Process
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Dismantling Resistance
Beyond Control (‘this is art…man’)
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Dismantling Resistance
The Personality Myth/ The Hero Syndrome
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Dismantling Resistance
The Curse of Good Enough
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Client-DrivenSix Sigma
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Client-DrivenSix Sigma
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Voice of the Customer Example
Voice of the CustomerIn order to meet my expectations, you must …
Meet or exceed my service expectations.
Communicate project status frequently.
Meet my financial objectives.
Provide real estate solutions tailored for my specific needs.
(Figure 4)
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Client-DrivenSix Sigma
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(Figure 5)
Project “A”
Goal:Actual:
Project “B”
Goal:Actual:
Project “C”
Goal:Actual:
Enables leaders to check status and financial impacts of key improvement projects
Transactions & Projects
Goal:Actual:
Space & Occ Planning
Goal:Actual:
Enables leaders to drill down into each operational process
Ran Rate Savings
Goal:Actual:
Client Satisfaction
Goal:Actual:
Tracks performance relative to key operational performance metrics
Cost Reduction
Goal: $0 MMActual: $0 MM
Client Impact
Goal: $0 MMActual: $0 MM
Retail Roll Out
Goal: $0 MMActual: $0 MM
Shareholder ROI
Goal: $0 MMAggregate: $0 MM
Tracks performance relative to strategic and financial impact of CRE
Data Accuracy
Goal:Actual:
Speed
Goal:Actual:
Facilities Management
Goal:Actual:
Scorecard
Operational Dashboard
Process Drill-Down
Project Status
Project “D”
Goal:Aggregate:
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Client-DrivenSix Sigma
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Client-DrivenSix Sigma
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Call Center Process innovation enables Call takers to dispatch work orders directly to sub contractors
Sub-contractor
Process Innovation: Data base enables call taker to
dispatch directly to preferred sub-contractor
2 non-value added steps eliminated Property managers freed to do
higher value work Responsiveness improves
Process Innovation: Data base enables call taker to
dispatch directly to preferred sub-contractor
2 non-value added steps eliminated Property managers freed to do
higher value work Responsiveness improves
Dispatch subInform property
manger
Steps
Customer
Call taker
Property manager
Receive request
Identify preferred sub
Dispatch directly to
subcontractorPerform work
Close out work order
Take requestInput work
order
Call with request
ID preferred sub from database
Accept work request
Perform work
Close out ticket
Call the call center
Roles
(Figure 6)
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Client-DrivenSix Sigma
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Reaching Higher Level Partnerships with Customers
Repurchase
Expand
Innovate
Tactical
Part
ner
Vend
or
Strategic
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The Six Sigma Methodology is the Path to Customer Driven Solutions
A framework for discussing high level customer business objectives the customer’s big “Y’s”
A framework for exploring performance drivers that impact those objectives the customer’s vital “X’s”
A methodology for analyzing and proving business impact of innovative solutions the business case
A methodology for driving solution implementation Execution and Sustained improvement
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The Six Sigma Solution Development Process
Draw customers into a discovery dialogue
Engage customers in collaborative business improvement teams for joint business case development
Drive analysis, improve project execution and demonstrate impact on desired results
Enable customer to drive sustained gains and continuous improvement across the life of the solution
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Six Sigma Solution Development Process
Develop customer Scorecard Conduct high level process analysis Identify opportunities
Conduct baseline measurement & analysis Develop business case Select opportunity
Conduct deeper analysis Apply rigorous project management & monitoring Use Blitz and Breakthrough teams to drive implementation
Transfer Six Sigma capability to customer Develop control plans and monitoring systems Optimize processes
InnovationsWorkshop
Business Improvement Teams
Business Case & Contract
Solution Implementation Teams
Ongoing ProcessManagement
Col
labo
ratio
n w
ith C
usto
mer
Tea
ms
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Tips for Getting Started
Focus on a Few Key Metrics Cycle Time First Pass Yield Rework
Launch Serious Improvement Projects Meaningful to clients High potential team members Demand results
Involve Senior Leadership Get beyond lip service Monthly performance monitoring and action planning
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Six Sigma – Your Swiss Army Knife for Business Improvement
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Let’s Have A Great Conference