Tag Archives: Lean Six Sigma

Making a Point or a Difference

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Telling someone they are wrong does not inspire them to do right. Instead, it usually creates an atmosphere of conflict. The problem has two faces. First, conflict tends to entrench people into their positions, even if they realize that they are probably wrong. Nothing constructive can come from a conflictive environment because people quit trying to find solutions and start trying to save face. Second, it is quit possible, and maybe even probable, that the person accused of being wrong may actually be right.

The point is that making a point is not the same as making a difference. If the truth be told, most of us would rather win the argument than make a difference. This is the sad truth within our culture. We vote and behave as if the processes of our lives were a game where the point was to score points and win, even if no progress is being made.

You might ask how this applies to Lean Six Sigma process improvement teams. Let me explain. When working in a team environment, the team leader must always be focused on keeping a constructive dialog that is not based upon scoring points. The hardest part of process improvement is to “lead” change. To make a difference. When team members are committed to making a difference, they are not keeping score. When they are keeping score they are not making a difference.

I have had to remove individuals from process improvement teams because their “point making” attitude was distractive to the team’s mission to make a difference. This will obviously not make everyone happy, but that is OK. Being a change agent is not easy, nor is it for the faint of heart. When teaching Six Sigma Black Belts, I always instruct them to ” Leave them mad or leave them glad, but never leave them indifferent.”

Making a Point or Making a Difference

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Telling someone they are wrong does not inspire them to do right. Instead, it usually creates an atmosphere of conflict. The problem has two faces. First, conflict tends to entrench people into their positions, even if they realize that they are probably wrong. Nothing constructive can come from a conflictive environment because people quit trying to find solutions and start trying to save face. Second, it is quit possible, and maybe even probable, that the person accused of being wrong may actually be right.

The point is that making a point is not the same as making a difference. If the truth be told, most of us would rather win the argument than make a difference. This is the sad truth within our government. We vote and behave as if the processes of our lives were a game where the point was to score points and win, even if no progress is being made.

You might ask how this applies to Lean Six Sigma process improvement teams. Let me explain. When working in a team environment, the team leader must always be focused on keeping a constructive dialog that is not based upon scoring points. The hardest part of process improvement is to “lead” change. To make a difference. When team members are committed to making a difference, they are not keeping score. When they are keeping score they are not making a difference.

I have had to remove individuals from process improvement teams because their “point making” attitude was distractive to the team’s mission to make a difference. This will obviously not make everyone happy, but that is OK. Being a change agent is not easy, nor is it for the faint of heart. When teaching Six Sigma Black Belts, I always instruct them to ” Leave them mad or leave them glad, but never leave them indifferent.”

Voice of the Business

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Some of the first questions that a business must answer are:

• Why do we exist?
• Who are our customers?
• What is our mission or purpose?
• What is our vision?

To understand the importance of the answers to these questions, we must first understand that different stakeholders in a business have different perspectives. The stockholders wish to get a return on their investment. Workers wish to get a good wage for their work. Managers and officers wish to meet the business performance metrics set forth by the owners (stockholders, etc). The community wishes to have a neighbor that provides jobs, pays taxes, supports the community, and has no negative environmental impact. These are just a few.

Understanding the answers to these questions from the stakeholders’ perspective helps to define problem areas within the business and its ambient environment. It allows the business to have clearer vision. In the final analysis though, there are two high level purposes of a business. In a capitalistic society, businesses exist to make money, to make a profit. Without this, the business would not exist. Secondly, when the business is profitable, it ideally gives back stability to the community in which it exists.

When a business correctly defines its problem areas, from the customer and business points of view, it is ready to take the next step to improve processes connected to the problem areas.

So what does process improvement mean to the business? It means lower cost, higher efficiency, and higher profits. These manifest themselves in higher customer satisfaction, improved market share, and larger margins. The tie between customer satisfaction and profitability is evident.

Similar metrics apply to organizations like non-profits. For them the metrics may be lower cost and higher efficiency. These may manifest themselves as lower dependence on outside funding and improved margins. The commonality between businesses and non-profits is that the focus is upon doing more with less, thus returning more margin to the stakeholders and more value to the customers.

These bottom-line metrics in a healthy business are in alignment with their strategic planning. Furthermore, when strategic planning is in alignment with customer expectations, improvement projects will improve customer satisfaction and profitability.

Lean Six Sigma and People/Leadership Skills

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The problem with Six Sigma these days is that it is becoming a math exercise. Six Sigma, especially Lean Six Sigma, is a people thing. That is where the excitement is and where success can be found. I have never seen a project fail due to bad math, but I have seen many fail due to poor people skills and poor leadership.

If you want Six Sigma to work in your business, get people involved with people and the math will take care of itself. I can teach statistics all day (and I have), and not enhance project effectiveness. I can elevate the people skills of participants (and I have) and good things happen immediately.

How is Your Vision?

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How detailed is your vision? I’m not talking about whether or not you need glasses, but whether or not you have enough detailed information to make good decisions.

This is an issue with both business and personal decisions.  It is, in fact, why so many business process improvement initiatives fail. Six Sigma process improvement projects are meant to address this issue for businesses, but you also need a personal strategy to avoid falling prey to poor resolution (lack of detail) How many times have you decided on an action only to find that a critical, missing, detail undermined your success?  .

The problem is our reliance on two dimensional, discrete, thinking. Pass/Fail, Yes/No, Democrat/Republican, etc. Two dimensional thinking allows you to be 100% right or 100% wrong, but never partially right

A more continuous way of thinking will lead to better detail and better decisions. As detail increases, so does our ability to see problems in their true colors (resolution). What you will find is that you will move from the “what”(pass/fail), to the “why” (causal relationships).

Consider this analogy of moving from low resolution to high resolution.

At 50 miles of altitude, if you fired at a target on the ground and missed by one degree, you would miss the target by 38 miles.

At 10 miles of altitude, if you fired at a target on the ground and missed by one degree, you would miss the target by 1.74 miles.

At 5 miles of altitude, if you fired at a target on the ground and missed by one degree, you would miss the target by 2300 feet (a little less than ½ mile).

At 1000 feet of altitude, if you fired at a target and missed by one degree, you would miss the target by 3 feet.

More Detail = More Resolution = Higher Accuracy = Improved Performance

Lean Six Sigma Customer Focus

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We hear all the time that we must be customer focused, but what does that mean? Let me give you the short answer.  First, you have to know who your customers are.  Second, you need to know the needs and desires of your customers. And third, you need to have a plan to meet those needs and desires.

The first mistake we typically make is to worry about who is supposed to be providing a product or service to us.  It is totally counter productive to look at your job from the prospective of who you are a customer to.  To see yourself as the customer. This is a selfish perspective that will sub-optimize your performance. Believe it or not, it will make your job harder.

You can only improve business processes by reversing the direction of your vision. You must look instead at who your customers are.  Being customer focused is at the core of every successful business and relationship. Being inwardly focused is at the core of every business failure and personal failure.

A customer is anyone to whom you provide a product or service. Basically, customers come in two flavors. Internal and external.  We typically know who our external customers are, because that is the orientation of our thinking. At the same time, though, we typically lose site of who our internal customers are.  Internal customers are those we work with.  The person in the next cubicle or another department.

To start the process of becoming customer focused, create a list of who you think your customers are (include your family and significant others). Don’t worry about being wrong, just base it upon your opinion.  Next to each customer, list what product or service you provide them.

When ready, show your listing to your customers and ask them to rate your performance.  If they are honest, you probably won’t have too many surprises. At the same time, you will probably not like what you hear. We generally know how good or bad of job we are doing.  Don’t be defensive. Just like beauty is in the eyes of the beholder, quality is in the eyes of the customer.

Once this is done, answer the following questions.

If taking care of my customer’s needs (instead of my own), in a timely and appropriate manner, became the focus of my work, what would change about my work (what would I do differently)?

If this happened, how would you measure how successful your day was?

How would your perception of “what is a good day” and “what is a bad day” change?

The profound fact here is that if everyone were to take care of their customer’s needs (internal and external), than everyone’s needs would be met. No one would feel as if they were not given appropriate support. It becomes a seamless circle where no one gets left out.

To ensure that you get what you need, you have to first ensure that your customer’s get what they need.

Customer Focus, From Lean and Mean Process Improvement

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Two aspects of customer satisfaction affect every business: satisfaction with the process output and satisfaction with the service surrounding it. In the service industry, businesses understand that providing quality service is a key to customer satisfaction. At the same time, though, they must have concern about the service product. For example, consider receiving exceptional customer service from an associate at a retail outlet, only to find the selection of merchandise too limited. The result is that you may choose a different retail outlet on your next shopping trip.

Conversely, what happens when you receive very bad customer service at a different retail outlet, which happens to have a very wide selection of merchandise? Even though you can find what you need, you will probably decide not to do business with them in the future.

Many product manufacturers miss this connection as well. An edge in technology or functionality gives a competitive advantage in the market place. Although this physical advantage is important, if the quality of service provided to the customer is poor, it will likely negate the advantage. For example, you would probably not rush to purchase a technically superior automobile from a supplier known for poor service after the sale.

To summarize, in order to improve customer satisfaction in a meaningful way, the business needs to distinguish between the process that provides the service and the process that provides the product. Without this distinction, it is easy to blame defects on the wrong process, or to fail to recognize that the other process exists.

Specifically, the service industry must recognize that their customers see a product component associated with the service they receive, while the manufacturing industry must recognize that their customers see a service component associated with the product they receive.

Designing a Business

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I have been starting up a new business division in our company.  Nationwide Parts Distributors has been an inside sales business with connections dating back to 1992.  Now with the advent of Automotive Electronic Solutions, we are also a remanufacturer.

This is a completely different business model for Nationwide Parts Distributors.  We designed the work flow, defined the core competencies for each position, set up infrastructure, hired employees, and opened for business.  The ROI for the business turned out to be less than one month.

We did all of this in a new business format and performed well enough to maintain the highest possible rating with the Better Business Bureau. This is remarkable in that we avoided the typical start-up quality issues of a new business venture.

We are now in our third month of operation and have raised enough working capital to begin the process of purchasing the building we are operating in.  This will increase our valuation in the market place and reduces our monthly cost of operation.

It has been hard work managing  the changing design of the organization as we went through a steep growth curve. Even with a flexible, lean, organizational design, we have doubled the number of employees in the new business to accommodate the increase in throughput that our customers demand.

I am very proud of the team of professionals that work here at Nationwide Parts Distributors and Automotive Electronic Solutions. Their belief in the vision, and commitment to achieving it, has made it all possible.