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Ensuring Project and Initiative Success
We have provided a great deal of advice on how to launch a holistic improvement initiative, lead it, and ensure its long-term success. In this appendix, we summarize our advice for ensuring the success of projects, including pitfalls to avoid. This is followed by guidance on pitfalls and success factors for the overall holistic improvement initiative. We trust that this concise listing of advice and questions to ask will prove helpful in your deployments.
Advice for Ensuring Project Success
In this section, we summarize key points made throughout this book that relate to achieving success with holistic improvement projects.
Key Project Success Criteria
Improvement initiatives produce tangible results primarily project by project, although the resulting cultural change adds benefits beyond formal projects. We must ensure that these projects succeed in order for the organization to fully benefit from holistic improvement. The following guidance is intended to relate generically, regardless of project methodology—that is, it is appropriate for Six Sigma projects, Lean projects, Work-Out projects, and so on. Note that, in Lean Six Sigma 2.0, we still use the infrastructure from Six Sigma such as Black Belts (BBs), Master Black Belts (MBBs), the DMAIC and DMADV frameworks, and so on. Although this infrastructure was originally developed through Six Sigma initiatives, it is certainly not limited to Six Sigma projects.
The primary keys to project success (discussed in Chapter 6, “Launching the Initiative,” and Chapter 7, “Managing the Effort”) include the following:
Good projects that connect to organizational objectives
The most appropriate improvement methodology, based on the specifics of the problem
A talented Black Belt and Champion assigned to the project
Proper support, such as from functional support groups (information technology [IT], finance, human resources [HR], legal, and so on)
Regular, well-structured project reviews
Clear project close-out criteria
Chapter 6 recommended criteria for project selection and provided an example of criteria used by one organization. The key points are that you should be working on important projects that are supported by management, that can be completed within a reasonable amount of time (three to six months for Six Sigma, less for Lean or Work-Out, and more for quality by design initiatives), and that have clear measures of success. To gain such projects, organizations need to develop a rigorous project identification and prioritization process, as discussed in Chapter 9, “The Way We Work.” Prioritized projects are then placed into an improvement project portfolio, to await the assignment of a Black Belt.
Some pitfalls to avoid in project selection include the following:
Fuzzy objectives
Poor metrics
No tie to financials
Overly broad scope
Lack of connection with strategic or annual plans
Projects with too many objectives
Use of top talent in key holistic improvement roles is a theme running throughout the initiative, but it is perhaps most critical in the Black Belts leading the individual projects. We have seen huge variation in success rates between projects that were led by true top talent and projects that weren’t. It is also important that projects have access as needed to resources from support groups, such as IT, finance, and maintenance. This often is critical in the Improve phase of Six Sigma projects or whenever an identified improvement needs to be implemented in other methodologies. If the improvement calls for a process step to be digitized, for example, the prompt support of the IT organization will be necessary.
Well-structured project reviews serve several purposes. First, scheduling project reviews indicates leadership’s seriousness and sets the expectation of tangible results. In addition, reviews identify issues or roadblocks hindering projects so that they can be addressed by Champions or others in leadership roles. Projects with regular, formal reviews rarely drag on past the expected completion date. A fringe benefit is that as leaders see more success in improvement projects firsthand, they become stronger proponents of the initiative.
Clear close-out criteria keep perfectionist Black Belts from continuing on a project past the point of significant return, overlooking other processes in critical condition that urgently need a Black Belt. Conversely, these criteria also prevent Black Belts from prematurely jumping from one project to another before ensuring success. Well-thought-out criteria help Black Belts move crisply from one project to the next, maximizing the overall benefit to the organization.
Common Pitfalls to Avoid
Project pitfalls that can derail success are almost mirror images of the key success criteria; omission of success criteria is itself a pitfall. However, some pitfalls are more common than others, so we briefly list the most common ones here in order of frequency, based on our experience. In each case, one or more success criteria will help address the pitfall:
Poorly scoped projects, which typically attempt to “boil the ocean” or “solve world hunger,” for example. Proper project selection and scoping are the key solutions to this pitfall. Frequent project review also can catch problems early.
An inappropriate improvement methodology. As discussed in earlier chapters, no single methodology is universally best; we must start with understanding the problem and only then select the method. An inappropriate methodology typically leads to team frustration and lack of progress. A good project selection system that is objective and carefully considers the uniqueness of the problem can circumvent this pitfall.
Lack of available data to study and improve the process. Insufficient data is generally an indication that a project should have been weeded out before this point. A good project identification and prioritization process minimizes this pitfall.
Failure to follow the DMAIC, DMADV, or other project management process. In some cases, poorly trained or led Black Belts might haphazardly attack the problem using Six Sigma tools instead of following the DMAIC process in a disciplined manner. The DMADV framework is typically more useful for quality by design projects. Proper training and frequent project reviews address this pitfall.
A weak Black Belt or Champion. Selecting Black Belts and Champions from the top talent pool prevents this problem.
Dysfunctional improvement teams. This can result from poorly trained Black Belts, lack of a team culture, or missing leadership support (especially intervention from the Champion). The combination of an active improvement organizational structure (including functional Champions), proper training of Black Belts, and a formal project review process help nip this problem in the bud.
Good Questions to Ask in Project Reviews
Of course, the best questions to ask in a project review depend on the specific methodology used for the project, the experience of the Black Belt, and many other factors. Therefore, we cannot provide a generic list of the questions that apply in all situations. However, the types of questions leaders ask in project reviews are extremely important because they set the tone for the projects. As you can see here, few of these questions can be answered as “yes” or “no.” Instead, they lead to a dialogue about the problem and how it is being attacked.
We provide sample questions that might be appropriate to ask in some reviews, particularly if the Black Belt has not already raised the subject during the review. The questions are organized according to the specific phase of the DMAIC framework to which the question would most likely pertain.
Define
Why are we working on this project instead of others we could be doing?
How does this project relate to key objectives or initiatives of the organization?
What specifically are we trying to accomplish with this project? How will you measure success?
What improvement methodology was selected for this project, and why do you feel that was the right choice?
Measure
Can you show me a map of the process in question?
Did customers validate these CTQs? If not, how were they validated?
How did you evaluate the measurement system? Where is the data?
Analyze
What data and analyses do you have to corroborate that conclusion?
Did you plot the data? May I see the graph?
What hypotheses do you have about the process that would explain the data?
Improve
What other options for improvement did you consider? Why were they not selected?
How do the proposed improvements relate back to the root causes found in the Analyze phase?
Have you piloted the improvements to make sure they work?
Control
What makes you confident that this control plan will maintain improvement?
Is the process owner comfortable with this control plan, and has he or she committed to using it going forward?
To what extent does this control plan consider key process variables (input, controlled, and uncontrolled) as well as key process outputs?
Advice for Ensuring Long-Term Success of Holistic Improvement
Not every organization that has launched a Lean Six Sigma or other improvement initiative has achieved the financial benefits it anticipated. Among those that have gained significant financial benefits, some have certainly done better than others. In addition, the improvement initiatives that have truly become the way we work have been few and far between. There are logical reasons for this: Improvement is hard, and maintaining behaviors over time is even harder. In this section, we provide guidance on steps to take to ensure long-term success in making holistic improvement the way we work.
Key Criteria for Long-Term Success
In Chapter 4, “Case Studies in Holistic Improvement,” we reviewed three specific companies’ experiences with holistic improvement; in the first edition of this book, we also reviewed several others. Based on this information, as well as our collective experience with many other organizations, we identified four key long-term success criteria (see Chapter 5, “How to Successfully Implement Lean Six Sigma 2.0”):
Committed leadership
Top talent
Supporting infrastructure
Improvement methodology portfolio
Each successful deployment of holistic improvement that we are aware of has included these criteria. Successful Six Sigma, Lean, or other one-methodology initiatives have included the first three. Similarly, the root causes of each less successful deployment that we are aware of can be traced back to the lack of one or more of these four criteria. There is simply no substitute for any of them.
Committed leadership is perhaps the most critical success criterion. Remember that there is a big difference between supportive leadership and committed leadership. Committed leadership is determined to make holistic improvement successful; it will spend the necessary time and take whatever actions are required to make this happen. Supportive leadership thinks this is a good idea but is not necessarily willing to devote personal time to the deployment or change management style to ensure success. We know of no committed leaders who have not achieved significant success for their organizations.
Committed leaders must be backed up by top talent in the operational roles in holistic improvement, such as Black Belts and Champions. These are the people who will lead the individual projects that produce the tangible results, so the organization’s most talented people are needed. Committed leaders with less talented Black Belts, MBBs, Champions, and so on can achieve only so much because they can’t do everything themselves.
One reason many improvement initiatives are not assigned top talent is that these people are typically quite busy doing important things. Freeing them from their current duties and reassigning them to improvement is painful and sometimes difficult. This is why committed leadership is necessary, to take the more difficult (but also more fruitful) path instead of the path of least resistance, which would assign whoever was available to key improvement roles.
Supporting infrastructure is perhaps a more subtle success factor. The supporting infrastructure is the organizational structure and systems that provide support to the improvement initiative, along with legitimacy and formality. Some of the typical elements in this infrastructure follow (see Chapter 7):
An organizational structure that includes overall leadership of the effort. This might initially be a Lean Six Sigma Council, for example, which would eventually be replaced with an overall improvement organization and dedicated positions for key roles (MBBs, Black Belts, and so on).
Improvement planning systems. This includes development and managerial review of implementation plans, budgets, human resources plans, and so forth done at least annually. This is nothing more than the routine planning done for each business unit in a major corporation, but it is often overlooked for improvement initiatives.
Support from functional groups, such as finance, HR, engineering, and purchasing.
Project selection and review processes.
Training systems for key roles.
Modification of human resources, reward and recognition, business planning, financial, and other business systems to support holistic improvement as needed.
We’ve previously noted that no major corporation operates its finance department without a designated leader or finance committee, with unclear roles, or with resources addressing finance in their spare time. If this type of unorganized approach doesn’t work for finance, why would we expect it to work for improvement? Without such an infrastructure, Champions, MBBs, Black Belts, and others have to spend considerable time and effort justifying every training class, begging for money for each project selected, trying to track down needed resources, and competing for managerial attention. This leaves little time and energy to actually complete projects that will benefit the bottom line.
A good infrastructure gives the initiative legitimacy, resolves personnel and budgetary issues at a strategic level, and provides formal mechanisms for such actions as project selection and training. In other words, this infrastructure allows us to manage the effort instead of having it just happen. Including a supporting infrastructure is one of the true enhancements Six Sigma brought to previous improvement initiatives, such as Total Quality Management (TQM) or reengineering. Contrary to popular opinion, it is possible to add organizational structure and processes without adding a lot of bureaucracy. The key is to ensure that the focus is always on achieving the objectives of the infrastructure (tangible results) instead of religiously adhering to the infrastructure processes.
As discussed throughout this book, creating an improvement methodology portfolio is the single most important step an organization needs to take to advance from Lean Six Sigma (or some other improvement initiative) and achieve true holistic improvement. Organizational problems are simply too diverse to solve with any one method—or even two or three methods. Furthermore, to integrate all improvement activities under one umbrella, organizations need to incorporate quality by design efforts, as well as quality and process management systems, into the holistic improvement organization. This is the only way to avoid the common pitfall of islands of improvement, in which different organizations create unhealthy internal competition for improvement resources.
Recall that no organization can realistically incorporate all known improvement methodologies into its portfolio. Therefore, organizations need to carefully consider the proper balance and mix of methodologies that it feels is most appropriate for its unique problems. The mix at a financial institution might look different from that of a hospital network or tech company. Although we do not feel that a “perfect” portfolio exists, we identified key methodologies to consider in Chapter 3, “Key Methodologies in a Holistic Improvement System,” and Chapter 8, “Sustaining Momentum and Growing.” Other methodologies might be needed as well. It should also be clear that the portfolio needs to be dynamic; new methods will need to be incorporated, and some older ones might become less useful over time.
Common Pitfalls to Avoid in Holistic Improvement
As with project pitfalls, the vast majority of pitfalls for the overall holistic improvement transformation have root causes that relate to the absence of one or more of the success criteria noted earlier. Again, we provide the pitfalls in the order of frequency based on our experience, and we offer suggestions for avoiding them.
Lack of true commitment from senior leadership. Unfortunately, this pitfall has no solution. Our recommendation is to hold off on deployment until such commitment exists and, in the meantime, try to obtain this commitment by sharing improvement success stories.
Lack of dedicated resources—that is, an attempt to do holistic improvement in people’s spare time. Who has spare time in today’s business world? Such an approach will slow, if not derail, deployment. The solution is to implement a proper improvement organization, including full-time resources.
Assignment of less than top talent to key positions. This pitfall is similar to the previous one: Both relate to providing the required human resources to achieve holistic improvement. We can appreciate that it is very tempting to merely assign resources that are available, even if they do not represent top talent in the organization. However, this will not only hinder current success, but it might convince top talent in the organization that improvement is not for them. The solution is to ensure that only top talent is assigned to key leadership positions. Referencing annual employee evaluations, where relevant, can help here.
Ad hoc deployment of Lean Six Sigma (initially) or holistic improvement (later) without the proper supportive infrastructure. This pitfall might not become obvious until a year or two into deployment, but it will prevent improvement from having a lasting impact. The key to avoiding this pitfall is for those leading deployment (overall Champion or leader, Six Sigma Council, improvement organization, and so on) to prioritize development of the key elements of the supportive infrastructure (see Chapters 6 and 7).
A bureaucratic focus for the initiative. This can occur when such factors as the number of Black Belts trained, the number of projects completed, the percentage of employees Green Belt certified, and so on become the emphasis of the organization’s improvement effort. In other words, the focus is on the effort itself, not on the results it is supposed to generate. Certainly, there is no harm in measuring these internal metrics, but you must always keep in mind that the purpose of implementing Lean Six Sigma, and eventually holistic improvement as a whole, is to better satisfy customers and generate financial benefits. Therefore, the solution to this pitfall is to make financial benefits and direct measures of customer satisfaction (such as retention and attainment of additional business) the overall measure of success.
Good Questions to Ask in Initiative Reviews
In Chapter 8, we discussed the need to hold periodic management reviews of overall deployment, as well as project reviews. We emphasized that management reviews are the “secret sauce” for success. Initially, these reviews would typically be for a Lean Six Sigma initiative; they would eventually move to a holistic improvement initiative. Once we have truly made holistic improvement the way we work, it is no longer an initiative: At that point, initiative reviews would be replaced with regular reviews of the status of improvement, just as there are regular financial reviews, regular staffing reviews, and regular reviews of other major functions.
Project reviews help ensure success of the improvement projects, but they are not designed to evaluate the overall initiative from a strategic perspective. This is the purpose of the reviews of the overall initiative. A key similarity with project reviews is that the questions leaders ask in the initiative reviews also help set the tone; they establish expectations, determine direction, create a mind-set, and so on. Therefore, it is important for leaders to ask questions that create the desired tone. Again, no single list of “correct” questions exists, but the following list can prove useful in setting the tone needed to make holistic improvement successful in the long term. Leaders can ask the questions at any time, but they are typically most relevant during the deployment phase noted.
Launching the Initiative
How often are the Lean Six Sigma projects reviewed by their Champions? By you and your staff?
What percentage of your time and your leadership team’s time will be allocated to Lean Six Sigma deployment over the next year?
May we review your overall deployment plan?
Managing the Effort
What level of incremental operating profit from Lean Six Sigma do you feel confident committing to this year? What is your basis for this number?
May I see your project selection criteria and your current project portfolio? Please describe your project prioritization process.
May I review some projects in your project tracking and reporting system?
Sustaining Momentum and Growing
Can you show me your overall financials for the Lean Six Sigma initiative so far (expenses and returns)?
Can you show me the status of each element of your Lean Six Sigma deployment plan?
What are your deployment plans for extending Lean Six Sigma across your entire business unit?
How are you expanding your improvement project portfolio toward holistic improvement?
The Way We Work
Can you show me your organizational chart for the integrated improvement group?
How do you manage differently now versus before holistic improvement?
How have you embedded improvement into quality and process management systems?