Making Improvement Work, A Process Management Webinar

STAT-A-MATRIX, a SAM Group Company, hosted a Process Management Webinar on March 5, 2008.  Listed below are some basic background questions regarding process managment as well as the participant questions and answers from the session.

You can also download the audio (WAV file, 25 MB).

Background Questions

How is that different from the Six Sigma leadership steps?
The Six Sigma leadership steps happen at discrete points in time, usually related to specific improvement events. The Process Management infrastructure is a closed-loop, continuous process that can’t be accidentally discontinued if temporarily side-lined by short-term business priorities.

What is involved in establishing a Process Management infrastructure?
The top management team leads three steps: 1) Identify the PM elements already existing in the business. 2) Identify the PM elements that are weak or missing. 3) Fix or develop the PM elements identified in 2.

Who would be involved in implementing PM in an organization?
The top management team and the owners of the core (value-added) business processes. With help from several PM staff members.

What obstacles might have to be overcome to successfully implement PM?
1) Lack of strategic business goals for accomplishment of specific competitive differentiators. 2) Lack of a Process Management wheel, components and implementation roadmap. 3) Lack of leadership commitment and involvement. 4) Lack of PM coaching assistance. 5) Misaligned enabling processes (support systems) that cause the organization to under-perform on critical PM functions.

Participant Questions

How do you tie in the alignment with a strategic planning process (such as Hoshin)? Does this get real projects that are worthwhile to the business out on the table and deployed to teams who can work them?
We think of alignment as the activities and behaviors that senior management need to incorporate in order to guide the process improvement effort. Hoshin planning could be one of the tools that management uses to prioritize and deploy real projects, but it may not be the only one. For example, management can decide that it is going to delegate project selection to the operating units, and only be involved in assessing whether these projects support the business and are providing adequate ROI. We do not restrict ourselves in the model to a particular approach. The purpose of the model is to identify and use the best approach for the current circumstances for the organization.

This sounds a lot like Deming’s “path of frustration.” Has that been investigated? Short term or “special cause” firefighting activities have short term results. I would think that would be one of the most consistent issues. True?
Yes - this is exactly true. The Process Management model is intended to help companies build the profound knowledge Deming talks about that really helps organizations build a culture of continual improvement after the obvious opportunities have dried up.

This is starting to sound like “management by results” which has been profoundly rejected by such authors as Brian Joiner. The key is to not look too closely at the results, but to look more closely at what drives results. The point made by Brian about metrics is a key ingredient here. Is that what you are doing?
It is not about management by results, but about process management for the “right” results. By the time “results” happen, it is too late to act. So finding up-stream metrics that monitor what drives results is very important. Other than measuring “cost savings,” most organizations do not measure the effectiveness of their improvement initiatives and improvement practices. PM is about assessing and measuring the effectiveness of the organization’s improvement actions to make sure that what is being done improves the bottom line, has a positive impact on customers, and does a better job of engaging employees.

In a service organization, what elements in Process Management might be unique, and therefore influence which tools are selected and how they are employed?
Service organizations are different from manufacturing companies, but the core concepts of Lean and Six Sigma apply in both worlds. Likewise, there are no Process Management elements that are unique to service organizations. EVERY organization that seeks to be successful at process improvement needs to address ALL elements of the Process Management model. However, the tools (Lean, Six Sigma, SCM, ISO, etc.) that are selected for use within the PM model will depend on what the gaps are and a collaborative dialog on the best way to address the gaps. The way the elements get discussed and the examples used in a service environment should differ from a manufacturing environment. In PM, consistent performance of the PM steps is paramount to decisions on which tools to use within the steps.

How would you counsel an organization to address the inertia that exists in company after several unsuccessful attempts to implement a Continuous Improvement process?
This is a very good question. Over the last twenty years, 70% of leadership teams have stated the results of their improvement initiatives failed to meet their expectations. The approach that we have followed is to identify the “missing ingredients” that cause this frustration. We have then done work to shore up the missing pieces without labeling it as a “continuous improvement” effort. Once more of the infrastructure is in place, and it is possible to demonstrate with obvious visible results that the “missing ingredients” have been addressed, it is then more likely that the organization will engage better in the next attempt. Actions speak louder than words, and in time, the people seeing them begin to accept that things really are different; that they can be empowered to make positive changes.

The Process Management wheel represents a continuous effort, as I understand it, it is “never ending”?
Yes it does - that is the idea of “continuous” improvement

Do you have examples or recommendations for how to measure/capture ROI?
The ROI institute (see website below) provides many tools for measuring ROI. http://www.roiinstitute.net/. We offer support on measuring ROI for process improvement efforts through one of our partner companies.

For more information, please visit www.statamatrix.com

Using Process Management To Transform Your Performance Improvement Initiative

STAT-A-MATRIX
One Quality Place
Edison, NJ  08820
800-669-8326
Contact:  Christine Jersild

For immediate release
February 27, 2008

STAT-A-MATRIX Announces Publication of Our Latest White Paper: Making Improvement Work: Using Process Management to Transform Your Performance Improvement Initiative

Edison, NJ—A recent study by the Gartner group indicated that CIO’s greatest priority is business process improvement. Yet many senior executives are not satisfied with the returns they get from their quality improvement efforts. Our experience shows that the problem is not the improvement methodologies but effective execution of the process improvement program.
In our latest white paper, STAT-A-MATRIX presents a process management approach to help your organization “super charge” your process improvement initiative. If your organization already has a process improvement program, our approach will ensure better focus, alignment, and sustainability. If your organization is starting from scratch, our approach defines a road map for designing an effective process improvement program.

Dr. Stephen Spear, a Harvard University professor who has extensively researched Toyota’s way of working said recently: “One of the underpinnings of the culture that Toyota has developed is their ability to tightly couple the work they do with how to do the work better.” Similarly, the STAT-A-MATRIX approach helps you set up the infrastructure to give your organization the ability to “improve the way you improve.”

Founded in 1968, U.S.-based STAT-A-MATRIX, a SAM Group Company, is the world’s leading consulting and training organization dedicated to the pursuit of business process improvement, performance excellence, and regulatory compliance.  STAT-A-MATRIX offers ongoing consulting and training in every aspect of business process improvement, from the basics to the specialized tools needed to assure both customer satisfaction and regulatory or standards compliance.

For more information on how STAT-A-MATRIX can help your organization improve its processes, please visit www.statamatrix.com, email cjersild@statamatrix.com, or call
1-800-472-6477.

Lean Six Sigma Webinar Questions and Answers

These are the Questions and Answers from STAT-A-MATRIX’s Lean Six Sigma webinar held on January 23, 2007.  You can review the presentation slides in PDF format: Lean Six Sigma Integration for Business Excellence.

1. How does standardized work fit into QSR, CFR 820, and ISO 13485? Is it part of QMS control or is it separate?
Lean and Six Sigma are integrated into the quality management process. Recall the ISO 9000 standards, particularly ISO 9004. Appendix B of ISO 9004 categorizes continual improvement in different ways. One is through breakthrough improvement, which can be related to Six Sigma. The other way is through small steps, which relate to people, which is essentially Lean. When we look at typical characteristics of Lean and Six Sigma, we see that Six Sigma is top down and Lean is bottom up.  If we look at other standards that derive from ISO 9000 like ISO 13485 and even QSR requirements that are similar to ISO 13485, the principles are the same. So, Lean and Six Sigma fit well into the ISO-based management systems since the management system requirements lay a foundation for effectiveness while Lean and Six Sigma rise above to build efficiency in organizational performance.

2. Is standardized work part of document control?
Yes, it is. One of the elements of document control is to ensure discipline.

3. Is the “Sustain” referred to in 5S part of QFR 820.22, Quality Audit?
One of the reasons we perform quality audits is to ensure that organizations meet quality criteria established for quality management systems such as ISO 13485 for FDA regulations. In addition, we need to learn whether or not organizations follow their own requirements and “Sustain” is one major requirement of any organization. Yes, “Sustain” is implicitly included in QFR 820.22, Quality Audit.

4. How does Lean Six Sigma apply to Process (re)Design?
Process (re)design is required when an organization does not have the existing capabilities to meet customer needs in developing new products or services. Lean Six Sigma provides a comprehensive set of tools, techniques, and approaches to allow an organization to gather customer requirements, develop specifications based on those requirements, develop and implement solutions to meet the requirements, and verify the requirements have been met by the new product or service. Solutions are built to drive out waste while aligning processes with customers.

5. If I have an existing Six Sigma program, can I incorporate Lean into it for an integrated Lean Six Sigma strategy?
Yes, many organizations that have started with Six Sigma are incorporating Lean into their programs. STAT-A-MATRIX can work with your organization to integrate Lean concepts and tools into your existing structure, giving you the ability to use the tools and techniques that are best suited for the specific problem being addressed. A primary benefit of incorporating Lean into a Six Sigma program is that Lean adds efficiency to the effectiveness provided by Six Sigma. The application of certain Lean tools (e.g., value stream mapping) leads to an optimization of resources through the elimination of waste.

6. How long does it take the Lean Six Sigma management philosophies to become established in an organization?
The integration normally takes two to five years; there are no shortcuts. Progress depends on how well top management leads the initiative. If top management is out front leading the effort, then Lean Six Sigma will permeate the organization quickly and more permanently.

STAT-A-MATRIX
For more information visit www.STAT-A-MATRIX.com.

Customer Experience Management

For Immediate Release
Tuesday, August 21, 2007

Fundamentals of Customer Experience Management

Edison, NJ—The results of Six Sigma improvement efforts often fall short of senior management’s expectations. Likewise, the results of many customer surveys sit on shelves and fail to provoke action. Customer Experience Management effectively integrates survey research—specifically, Customer Value Analysis—with proven approaches to the improvement of process performance.

Customer Experience Management training is ideal for senior managers in market research, operations, customer service, quality, and financial forecasting as well as Six Sigma Black Belts and Master Black Belts. Our exciting two-day course, offered publicly or at your site, covers the fundamentals of Customer Experience Management and provides the knowledge needed to focus your organization’s improvement efforts for sustainable and profitable growth.

Founded in 1968, U.S.-based STAT-A-MATRIX, a SAM Group Company, is the world’s leading consulting and training organization dedicated to the pursuit of business process improvement, performance excellence, and regulatory compliance. STAT-A-MATRIX offers ongoing consulting and training in every aspect of business process improvement, from the basics to the specialized tools needed to assure both customer satisfaction and regulatory or standards compliance.

For more information on how STAT-A-MATRIX can help your organization improve its processes, please visit www.statamatrix.com, email wkinal@statamatrix.com, or call
1-800-472-6477.