In a recent Lean Six Sigma Project kick-off meeting of one of my clients, after the teams presented their project charters, the business leader made an extempore announcement that the best and most successful Lean Six Sigma project will receive a special recognition and the team members will be lucratively rewarded.
Immediately few of them wanted to know what criteria will be used for selection. The business leader indicated that I will be one who will define the criteria for successful Lean Six Sigma Project.
Factors that I consider among the criteria for success of Lean Six Sigma Projects are arranged in the descending order of their importance in the below list:
Project Scope – Lean Six Sigma projects without well-defined scope are bound to fail, but they end up creating a lot of mess around. Scope usually refers to the boundaries of any project. A poorly defined project is one which hasn’t balanced the Project Goal, Scope and Timelines. Also, poorly communicated scope and not defining what is out of scope are equally important.
Retains interest and commitment of the resources – Improvement projects are successful when its team members contribute their best. Lean Six Sigma projects usually challenge the existing paradigm. Hence without the wholehearted and continued participation of the team members, no project will be successful. The sponsor/champion and the Green Belt/Black Belt are entrusted to retain the interest and commitment of the resources.
Attracts adequate buy-in from key stakeholders – Stakeholders of any project could either be the decision makers, important players who influence the decisions or even impacted parties. Successful Lean Six Sigma projects will have to manage the expectations of all the above stakeholders from time to time and create adequate buy-in. Rather than focusing too much on technical root cause analysis, the emphasis should be on how Lean Six Sigma project can bring about mid-to-large change in the organization.
Flawless execution– Immaterial of the breadth and depth of the analysis done in any Lean Six Sigma project, what sticks out is execution. Well led and implemented the project is bound to be successful, as even the quality of data collected and analysis is a function of the flawless execution. Adherence to weekly team meetings, project milestones, and tollgates reviews are some simple and easy signs to evaluate execution. Further unbiased data collection and analysis, open minded assessment of solutions, in-depth piloting and sustained monitoring are additional measures of flawless execution.
Identifiable impact on customers– As the proof of the pudding is in the eating, so is the success of any Lean Six Sigma in positive impact it creates on customers. Usually, organizations evaluate the success of projects based on the performance of the CTQ (before-after studies). While this is definitely a good way to assess the impact, more often than not such movements in CTQs aren’t felt by customers. Considering several other business parameters to validate the impact of the CTQ, including post improvement Voice of Customer may be a very good method. For example, a reduction in defects certainly will reduce the rework effort, increase productivity, reduce complaints, apart from increasing customer satisfaction.
Making a discovery – Any successful Lean Six Sigma project should unearth something new, make a discovery about the problem. A project without a discovery could mean we are fixing obvious things. In order to ensure the project team makes a discovery, the quality of work done in the Measure and Analyze phase have to be evaluated. Have the teams identified all possible causes to the problem? Have they collected data of good quality and quantity? Have they holistically analyzed the data to make the discovery? And finally what is the discovery?
Based on my experience with Lean Six Sigma in the last 2 decades, I would consider these 6 factors as significant elements of the successful project.
While leaders strive to build a culture of continuous improvement (CI) in their organizations, it is equally important to understand that business-as-usual activities take precedence over improvement activities. CI programs commence with a big bang and a lot of enthusiasm, but time wears out even the strongest and what it leaves behind is mere CI hubbub. This is not a simple problem to solve. If you have been part of any enterprise-wide CI deployment, you will have no difficulty relating to this. This problem is complex and has several failure modes.
In this article, I’ll like to highlight a common but significant failure mode – Selection of projects. It’s needless to emphasize that projects play a big role in any CI journey, but to its disgrace, projects are also a significant contributor to the downfall of CI program.
Going overboard and having too many concurrent projects is one way to fail. Not selecting the right projects to pursue is another. Here are few compelling reasons to consider project selection as an important activity rather than opening the floodgates of projects:
Business Priority: Every business has its own priorities and so it’s important to select the right projects that are aligned with your priorities. Having many dispersed projects will blemish, if not nullify the impact of projects. Alignment between leader’s priority & CI program can be easily accomplished if you select projects right at the beginning.
Change due to competition: If your competition is disrupting the industry, well you better select where you need to improve. External environment often forces organizations ruthlessly reform their way of thinking and working. And today, we all live in a world that is fast changing. So unless your right projects are selected and pursued, your CI program will become redundant soon.
High Customer Expectations: Everyone I talk to says, customers are demanding more than ever before. Understanding the changing their needs and aligning the CI program to customers is vital to the success of any organization’s CI program. Organizations sometimes pursue trivial opportunities such as cost saves but miss on acting on big ticket customer facing projects or customer pain points. Of course, while dealing with customers, things are going to be volatile, but that’s not a reason to avoid them. The good project selection process should filter such project opportunities.
Limited Budgets: All organizations must work within the framework of budgets. Improvements need monetary resources to support the change. Sometimes they are direct and hence easily associated to direct cost centers. But projects with intangible benefits or the ones incurring indirect costs usually end up as scapegoats. If an organization commits to project selection, many such failures can be prevented.
Availability of Resources: Human capital is scarce. CI projects need quality time and mindshare from people of importance in the organization. Quite often resource requirements are never considered during the commencement of projects. Even if considered, it’s only the project leader’s time. As CI projects are a cross-functional effort, active participation of experts from all involved functions defines the success of the project. In order to ensure we get the best out of our teams, we need to time our success. Thus project selection is a time sensitive activity.
Optimizing Number of Projects: Not all the areas of your organization need improvement at the same time, And improvement culture building is a slow and steady process which can never be implemented overnight, nor will the results reap overnight. So getting to rush out the organizational adrenaline may not be a success recipe for good CI program. Selection of projects will ensure that you sustain optimum enthusiasm in the system for CI.
So it is very evident that selection of projects impacts the CI culture, employee satisfaction, alignment to customers and ROI to business for the investments it makes in CI in a positive way. In the future articles, we’ll take this one step further and talk about the criteria used for selecting projects.
Have you ever confronted a situation doing hard work the whole day and at the end you realize that most of the time had been given by you and your team to the Non Value Added things!
One of the important aspects of the leadership in today’s competitive world is Prioritization. It helps to save time and money as you will be able to focus on what is important at the expense of lower value activities. Prioritizing skills are your ability to see what tasks are more important at each moment and give those tasks more of your attention, energy, and time.
We all have so much on hand to do and really speaking so much time to finish the things up. But we lack the skill to manage our work with the time. We mostly forget to take up the important things first and less significant work later. Instead, we do completely opposite to this. This is human nature as we all do the same thing in our day to day lives.
This issue is pertinent not only at an individual level, but even at organizational level. Organizations focus on the wrong reasons or causes and waste a lot of effort to solve a problem or improve their business.
How to improve upon it?
Lean Six Sigma teaches a very useful technique of prioritization to overcome this problem which is a mother of our all the other problems.
Pareto Analysis is based on 80/20 rule which says that our 20% efforts (out of the whole 100%) will give 80% of the benefits. This can be interpreted in many different ways like, for sales people 80% of the orders will come from the 20% of the customers, for team managers 20% people of the whole team shall give 80% of the work or results. Here, we should keep in mind that this doesn’t mean that the rest 20% is not important at all but can be said as less significant.
To generalize, 80% of the problem is caused by 20% of the reasons!
Thus using the Pareto principle, we can derive maximum impact with minimum effort and within short time span, if we focus on the right factors. Simple it is, right?
Before understanding the benefits of Pareto Analysis there are certain facts to be known about it. They are as under:
With an example given as under you will be able to understand why to focus on significant few:
Our Online Lean Six Sigma Green Belt Certification course teaches you step by step procedure to construct a pareto chart, different pareto variants and how to interpret them. More importantly it covers when and when not to apply pareto principle.
Benefits of Pareto Analysis: