You Can be Great If You Really Want To

Software development, hardware implementation and testing in the IT domain make IT a big user of processes and therefore compatible to Six Sigma applications. Six Sigma analysis is initiated by formulating a problem statement. A classic example is a case at Raytheon Aircraft. There, the entire IT team has undergone some sort of 6 Sigma training. The problem was an abnormally high number of servers for which no plausible reason could be found. The Six Sigma team identified the problem to be separate servers for each application. Defect removal was done through a logical and secure sharing of servers between many applications. Applying 6 Sigma methodologies to tackle the problem, a 40% consolidation in servers was achieved adding attendant time and labor savings to the bottom line.

Problem Solving Through DMAIC

DMAIC in Six Sigma is an approach to problem solving, which breaks down problem evaluation into five separate and distinct steps. These are: define, measure, analyze, improve and control. Different organizations apply different tools selected from among a wide variety of choices at each of these stages. IT personnel are familiar with some of them, such as Scatter diagrams, Pareto charts and histograms. Others like House of Quality or Voice of the Customer may not be familiar sounding in IT but are, nevertheless, essential customer-centric tools.

Another Six Sigma approach for removal of process defects at the design stage itself is known as Design for 6 Sigma and is used only by those having already mastered the DMAIC system/methodology. Leading CIOs and industry watchers suggest the following for getting the best results from Six Sigma in IT.

Pick The Right People

Pick Sigma Green Belts, Brown Belts or Black Belts who are categorized on the basis of the training they have received in 6 Sigma techniques. Trained experts would form teams, which are constituted to tackle a particular problem or process and thereafter disband to form another team for tackling another process at a different time, may be with different people, all trained in Six Sigma. Selection for training should ensure picking up highly motivated employees that will result in creating a high performance team. Another important point is to give them a project right after training without allowing any time gaps.

Adhere To Six Sigma Methodologies

Generally, IT people do not go ahead with untried methodologies until they have tried out tools with which they are familiar. Experts sound a note of caution against this and say that throwing technology at a business problem results in a bad process with new technology. If the process is free from defects, then technology can be used to take it to greater heights.

Focus On Defect Removal And Improvement

While 6 Sigma tenets are supposed to be religiously followed, they should not be treated as the be-all, end-all. The aim should be to reduce defects and to continuously streamline and improve the process conducting regular evaluations.

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Six Sigma projects are strategy-driven, in the same way that the portfolio is driven by organizational strategy. So, how do the business drivers that are at work result in some projects being Six Sigma projects, and others not?

Business Drivers and Project Selection
Business drivers are the starting point for any project selection process because of their close relationship to organization strategy. Business drivers form the foundation for strategy. Strategy forms the basis for organizational goals. The goals can be translated into specific metrics for purposes of establishing benchmarks. The result of all of this is a set of initiatives wrapped up in a portfolio of projects and programs. The type of metrics determines the project methodology, such as Six Sigma.

3 Types of Metrics
There are 3 types of metrics that influence project type or approach.

1. Business Metrics – typically measure financial performance aspects
2. Operations metrics – measure various aspects of the operations for the enterprise at a macro level
3. Process Metrics – provide detailed information about the processes being employed in the day to day operations

All 3 of these metrics support and relate closely to one another, and ultimately to the organizational strategy. But Six Sigma supports the detailed process level activities, which are present throughout most functions within the organization. Thus any projects that will ultimately be measured by process metrics are candidates for Six Sigma projects.

Once a project is a candidate for a Six Sigma project, it needs to be determined if the project will be best served by a more “classical” approach to process improvement, or if the best path is a pure Six Sigma approach. The classical approach would go something like this:

1. Ientify the problems to be solved
2. Define the problems clearly
3. Investigate the defined problems
4. Analyze the problems
5. Solve the problems
6. Validate the results or solutions

If the project requires the greater rigor of Six Sigma, it will likely be best served by one of 2 main methodologies that are Six Sigma specific:

1. Design for Six Sigma (DFSS) – Processes that are compliant with Six Sigma methods and metrics are created within the project.
2. DMAIC – The Define-Measure-Analyze-Improve-Control method is the 5 step Six Sigma process improvement methodology.

The Identification of Metrics
Identifying the key driving metrics within the organization is the key to success in identifying strong candidates for Six Sigma projects. One of the most popular systems of organizational metrics today is the Balanced Scorecard. In the Balanced Scorecard, the management system that generates the metrics is aligned with the company’s strategy and goals. Metrics are developed based not only on the financial perspective, but on 4 different perspectives for measuring organizational effectiveness:

1. Financial performance – traditional way of measuring performance within a business
2. Customer-centric view – measures alignment with customer needs, such as customer retention, satisfaction, loyalty, complaints, and related measures
3. Internal business processes – these relate to operational aspects such as throughput, work in progress, and project management effectiveness
4. Learning and growth – relates to metrics around the concept of knowledge workers continuously learning, expanding competency in the right areas, and knowledge sharing and collaboration

Whether by accessing Balanced Scorecard information or identifying some other source within the organization, it is critical to access definitive information on the organization’s key metrics.

Prioritization of Six Sigma Projects
The assumption is that at this point, it has been concluded that a certain project lends itself to the Six Sigma approach. There are a number of positive and negative factors that need to be considered in prioritization. Aside from alignment with strategy, consideration must be made for urgency, size relative to resources, significance to the organization, impact, risk, ease of application or implementation, and degree of resistance within the organization.

Conclusion
Six Sigma projects are derived from the need to satisfy certain process metrics that support the business objectives and strategy of the organization. All projects need to be aligned with the business objectives and strategy, and Six Sigma projects are no exception. Six Sigma projects will typically account for a portion of the projects in the portfolio. The unique effectiveness of Six Sigma is most apparent where achievement of improved process metrics is the goal. Six Sigma is very data and metrics driven, so there must be a clear ability to gather or generate appropriate metrics before, during, and after conclusion of the project in order to drive success.

“Mountaintops inspire leaders but valleys mature them.” — Winston Churchill 

Introduction 

Your reputation as a leader is formed not only by the results you achieve, but by the behaviors you display along the way.  Nothing will contribute more to that reputation than your actions and effectiveness when things go wrong.  How do you perform under pressure? 

TV Leadership 

In an episode of “CSI Miami” a year or so ago, Eric (one of the investigators) gets himself into trouble by bending (ok, breaking) some rules while working a case.  He decides to try and work himself out of the problem, and his boss (the ever confident Lt. Horatio Caine) is in the dark until Internal Affairs comes around. 

In the end, of course, the problem gets worked out.  Horatio takes his charge aside and calmly but firmly tells him to never let this happen again.  And after he’s sure the message has been received, he adds “and if you ever do, tell me right away so I can watch your back”.   

What do you do when one of your projects is in trouble?  Maybe you’re having quality problems, or you’re behind schedule.  Perhaps you’ve lost a key resource, or you’re headed toward a budget overrun.  How will you behave? 

Evaluate Your Leadership Behavior 

There are (at least) four areas where you have the opportunity to demonstrate situational leadership and good (or bad) judgment.  In each of these areas, you are going to be making choices as to how to behave, whether you make them consciously or unconsciously.   

Urgency vs. Panic — The level of urgency you demonstrate will affect everyone.  Act too casual and you can expect continuing problems.  Treat every problem as a severity 1 crisis and you’ll eventually be ignored like Chicken Little.  Show your maturity; evaluate the situation and act accordingly.  Showing disappointment is often more effective than flashing your anger. 

Accountability vs. Blame — You have multiple roles here; you must be accountable, and you must hold others accountable.

Your customers want to see you take ownership and responsibility for the breakdown, and clearly demonstrate corrective action. 

For your people, it’s essential that you correctly assess what caused the breakdown, and hold the appropriate people accountable, even while you limit public criticism and provide individual feedback in private.   If someone can’t be trusted to perform, get them out.  Otherwise, be ready to back your people up even while you’re giving them tough love behind closed doors.

And for your own management, you need to take the same personal responsibility you take with customers, while clearly demonstrating that you’ve gotten to the bottom of the issues. 

 

 

Increased Involvement vs. Taking Over — Again, you have multiple audiences to satisfy.  Step in and take over the failed project, and your customers might be pleased.  But you’ve completely undercut your own people, and your management may or may not be happy.  Your bias here should be to increase your visibility (more status reports, quicker problem escalation) but avoid taking over unless there is truly no alternative.  

What Actions to Take — Something’s got to give.  If you’re going to recover lost schedule time, there may be added costs or heavy demands on people’s capabilities.  If you’re going to slip the schedule, what’s the business impact?  Quality problems need to be assessed and can call an entire project into question.   

Everyone will be looking for you to be decisive.  But you want to solve the problems, not compound them.  Be quick if you can, but be honest if the appropriate action is to take a few days for reassessment of the project. 

Examine your leadership actions in each of these categories.  Make sure your actions and decisions in each are consistent with the needs of the situation. 

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