The Role of Lean Six Sigmain Enterprise Business Transformations

By Amy SpethExecutive Director, Business Transformations

Femme Comp, Incamyspeth@cox.net

757-377-5443

May 28, 2008

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About Amy

24 years in IT

Last 7 years leading complex ITtransformations for large commercialcorporations and federal agencies

Certifications: LSS MBB, ITIL SM, PMP

Texas Aggie!

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Overview of PresentationWhat is involved in an enterprise-wide

“Business Transformation”and how does LSSfit?

Different from presentations that show howDMAIC phases can be used as implementationphases

Different from presentations that show how LSSbegins to be used at the ContinuousImprovement phase

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Transformation Components

ProcessReengineering

FunctionalRoles

GovernanceEnhancement

OrganizationalRealignment

CulturalChange

Management

PerformanceManagement

StrategicCommunication

LeanSix Sigma

Industry Standards prescribe “What”LSS prescribes “How”

Strategy &Vision

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Step 1: BT Strategy and Vision Establish a strategy for levels of authority

Publish and aggressively campaign BT strategy,internally and externally

Draw threads of continuity across all messages

Change terminology to overcomenegative affiliations

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Step 2: Stakeholder Management

LSS tools: Stakeholder Management,Communications Plan

Build trust bySaying what you will do

Then doing it

Over-Communicate!

Over-Communicate!

Over-Communicate!

Over-Communicate!

Over-Communicate!

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Step 3: Process Framework

Architectural blueprint for businesstransformation

Foundation for all BT activities

Provides common terminology

Organized by related sets of activities

Gain Acceptance ofFramework before

proceeding

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CobiT ® 4.1 Process Framework

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ITIL® V3 Process FrameworkService

TransitionService

OperationServiceStrategy

ServiceDesign

PortfolioMgmt

Service CatalogMgmt

Support &Transition

EventMgmt

FinancialMgmt

Service LevelMgmt

ChangeMgmt

IncidentMgmt

DemandMgmt

CapacityMgmt

Asset &Configuration

ProblemMgmt

AvailabilityMgmt

Release &Deployment

RequestFulfillment

ContinuityMgmt

Validation &Testing

AccessMgmt

InformationSecurity

EvaluationMgmt

SupplierMgmt

KnowledgeMgmt

Continual Improvement

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LSS Tools: Process Team Charters,Scoping Tools (eg. In Frame/Out Frame)

Step 4: Process Teams Designate one Process Owner per

process

Training: ITIL/CobiT and Green Belt

One Green Belt per process, oneBlack Belt per Process Category

Leadership mustEmpower bothAuthority andAccountability

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Step 5: Process Engineering Forget everything you’ve been taught

about base-lining As-Is processes

Start with end state vision - then buildimplementation plan to get there

Establish baseline after you’veimplemented your new process

LSS Tools: Swimlane, SIPOC,Interrelationship Matrix

Leave Generic –Do not

Pre-customize

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Step 6: Functional Roles Define functional roles

and responsibilitiesMap functional roles

to process activities

LSS Tool: RACI Matrix

Do notConsiderCurrent

Organizational(HR) jobs

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Step 7: Performance Management

Select Process Key Performance Indicators Select Personnel measures Create multi-generational implementation

plans to capture data & report valuableinformation

LSS tools: CTQ Houses of Quality,Data Measurement Plans

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Step 8: Organizational RealignmentConstruct Org Design based on functional rolesCalculate workforce sizing based on work loadsDetermine where tasks are done today &

identify work not currently being doneRealign personnel from other areas, then hire

new

Strengthen governanceBefore realigning people

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Step 9: Implementation Plan

LSS prioritization tools: C&E Matrix,Benefit/Effort Matrix, Affinity Diagrams

Organization’sCritical Priorities

IndustryBest Practices

Desired-StateMaturity

Assessments

Statutory &Regulatory

Requirements

Audit &Compliance

RequirementsResource

Availability

PrioritizedImplementation

Plan

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Instantis Maturity Model forSix Sigma Deployment

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IT Infrastructure Library (ITIL)®Process Maturity Model

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Maturity Model Radar Chart

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Ta bl e 4 : Est a bl i shi ng t he P r oc e ss Founda t i on

Ta bl e 5 : C a r r y i ng Out t he S e r v i c e P or t f ol io

M a na ge me nt P r oc e ss

Ta bl e 6 : I nt e r f a c e s t o Ot he r P r oc e sse s

Ta bl e 7 : Or ga ni z a t i ona l C l a r i t y a nd C a pa bi l i t y

Ta bl e 8 : Tool s a ndM e t hodol ogy Consi de r a t i ons

Ta ble 9 : M e a suri ng a nd I mpr ov i ng t he P r oc e ss

M

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Radar Chart Rollup Views

Individual Processes

0

1

2

3

4Vision & Steering

People

ProcessesTechnology

Culture

Current

Desired

Process Category

0

1

2

3

4Enterprise Architecture

Bus. Relationship Mgmt

IT Portfolio MgmtKnowledge Mgmt

Strategic Comm.Series1

Series2

Organization

012345

Strategy Mgmt

Solution Mgmt

Enterprise Mgmt

Cyber Security Mgmt

Resource Mgmt

Quality Mgmt

Series1

Series2

Individual Processes

Process Categories

Entire Organization

RegularlyReport

MaturityGains

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Variation Analysis between Assessors

Dimensions N Min Mean Mode MaxStand.Dev.

Vision & Steering 9 1.00 2.11 2.00 5.00 1.27

People 9 1.00 1.78 1.00 5.00 1.30

Processes 9 1.00 1.67 1.00 5.00 1.32

Technology 7 1.00 1.14 1.00 2.00 0.38

Culture 7 1.00 1.29 1.00 3.00 0.76

LSS Tools: Standard Deviation,Regression Analysis, MSA

High variationMay require

an MSA

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Step 10: Continual Improvement

LSS tools: RIEs, Kaizens, DMAIC/DMEDI,Value Stream Analysis

Razor-sharp focus,With applied rigor

On Quick WinsFrom Step 1

D efineM easureA nalyzeI mproveC ontrol

Improveexistingprocesses,products,services

D efineM easureE xploreD evelopI mplement

Createnewprocesses,products,services