Transcript Stakeholder Management

RLM & Associates LLC
Your Lean Six Sigma & Project Management Trainers
Lean Six Sigma DMAIC Workshop
Green Belt Part 2
4/13/2015
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Six Sigma Pizza Inc.
Start Boundary: Customer places order
Suppliers
Inputs
Stop Boundary: Customer receives order
Process
Outputs
Customers
Order
Received
Pizza
Built
Pizza
Cooked
Pizza
Finished
Pizza
Served
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Customer Identification
 Objective is to determine who is
directly impacted by the problem
 Looking for ROI in improvement efforts
o Identify most impacted” customers
 Correcting the problem for this group
generates the largest benefit, and can
be applied to the other customer
groups
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Who Are My Customers?
A customer is the recipient of a product
or service:
 May be internal or external
– External customer
– pay for the product or service
– Internal customer
– utilize the same output to
complete their own processes,
ultimately supplying the output to
the external customer
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Customer Identification Exercise
Internal
Customers
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External
Customers
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Critical Customer Requirements
 Objective is to determine the qualities the customer
views as important.
– How does the customer define quality?
 What specific characteristics matter most?
 Is there a difference among customer segments?
– Which segment is the target segment?
 Must be measureable!
 Requires that we gather feedback from our customers
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Six Sigma Pizza Inc.
Product Quality
Service Quality
Price
Reliability
Durability
Useability/Features
Prestige
Serviceability
Failure Recovery
Convenience
Reliability
Speed
Interraction
Tangibles
Failure Recovery
Low original price
Value
Total costs
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Voice of the Customer
 Collects information from the
customer directly through
various sources
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Internal intelligence
Outbound communications
Inbound communications
Casual contact
Formal transactions
Research
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Voice of the Customer
Typical Methods
Interviews
Focus Groups
Surveys
Customer Complaint Data
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Critical Customer Requirements CCR’s
Voice of the
Customer
Actual customer comments
which reflect their perception
of:
Key Customer
Issues
Critical
Customer
Requirements
The specific and
measurable expectation
which a customer has
regarding a product or
service.
• An encounter or
experience with a business
processes or representative
The real customer concerns,
values or expectations
regarding a product or
service. Void of emotion or
bias, the statement
describes the primary issue
a customer may have with
the product or services.
Describes the experience
surrounding the attributes
of the product or service
expected or desired by the
customer.
“This mower is way too hard
to start”
Wants the mower to start
quickly and painlessly
“I’m always on hold or end
up talking to the wrong
person”
Wants to talk to the right
person quickly
Customer reaches correct
person the first time
within 30 seconds (good)
• An attribute of a product or
Service
• An experience with a
product/service or delivery
“This package doesn’t do
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squat”
The software does what the
vendor said it would do
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Mower starts within two
pulls on the cord
Mower starts with an
effortless pull on the cord
not exceeding 24” in
length
The software is fully
operational on the
customer's existing
system
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VOC to CCR
Customer Said
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Customer Issue
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Critical Customer Requirement
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Six Sigma Pizza Inc.
Multiple CCR‘s will require prioritization
– ROI is key
1. “Must Be‘s”
– Unless fully functional, customer will be
dissatisfied
2. Performance Improvement
–Improves competitiveness
3. Delighters
–The “human touch” extras
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Air Travel Example
Must Be’s
Performance
Delighters
Safe Arrival
Seat Comfortable
Free Upgrades
Accurate Booking
XM/Sirius Satellite
Wireless Internet
Available for free
Luggage Arrives with
Passenger
Friendliness of Staff
Computer Plug-ins
On-time Arrival
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Six Sigma Pizza Exercise
Must Be’s
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Performance
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Delighters
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Six Sigma Pizza VOC
Customer Complaints
 Delivery took too long to arrive
 Pizza cold when delivered
 Pizza was stuck to the top of the box
 Adding 20% tip to my group of 16 was not justified
 Jeff Gordon crashed in turn 3 and my pizza was
stuck to the top of the package
 My pizza was cold when I got it home
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Six Sigma Pizza Inc.
Customer Loyalty Score over the last 12
months
– Dine In Customers 52%
– Carry Out Customers 48%
– Delivery Customers 22%
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Team Exercise
Assign teams:
 Complete the SIPOC Exercise for Six
Sigma Pizza Inc.
 Complete VOC to CCR template
 Complete Prioritization Matrix
 Be prepared to present
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Six Sigma Pizza Inc.
Customer Said
Customer Issue
Critical Customer
Requirements
Delivery took too long to
arrive
Pizza was cold
Pizza was stuck to the top
of the box
Jeff Gordon crashed in
turn 3 and ………
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Six Sigma Pizza Inc.
Customer Said
Customer Issue
Delivery took too long to
arrive
Timely delivery
Pizza was cold
Pizza is supposed to be
HOT
Pizza was stuck to the top
of the box
Pizza should be in one
piece
Jeff Gordon crashed in
turn 3 and ………
Safe and courteous drivers
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Critical Customer
Requirements
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Six Sigma Pizza Inc.
Customer Said
Customer Issue
Critical Customer
Requirements
Delivery took too long to
arrive
Timely delivery
Delivered in 35 minutes
Pizza was cold
Pizza is supposed to be
HOT
110 degrees at time of
delivery
Pizza was stuck to the top
of the box
Pizza should be in one
piece
Intact not stuck to box
Jeff Gordon crashed in
turn 3 and ………
Safe and courteous drivers No accidents, tickets or
complaints about drivers
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Six Sigma Pizza Inc.
Start Boundary: Customer places order
Suppliers
Inputs
Customer
Order
Ingredient
Suppliers
Ingredients
Oven
Suppliers
Staff
HR
Department
Marketing
Department
Media
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Equipment
Coupons
Stop Boundary: Customer receives order
Process
Order
Received
Outputs
Cooked
Pizza
Customers
Carry Out
Customers
Pizza
Built
Dine in
Customers
Pizza
Cooked
Delivery
Customers
Pizza
Finished
Pizza
Served
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Document and Analyze Processes
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Functional Deployment Process
 Like the top-down process map, a functional deployment
process map displays the steps depicted in a process in sequential
order. The functional deployment process map also illustrates
where each step is performed and who is involved.
– Features
 Symbols, such as those shown below, are used to illustrate
the process flow, decision points, and activities performed.
 Functional deployment process maps generally take
considerable time to prepare, but they are extremely useful in
understanding a process prior to attempting improvements.
They require input from people familiar with each area of the
process.
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Functional Deployment Mapping
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Six Sigma Pizza Inc.
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Six Sigma Pizza Exercise
Turn top-down flow chart in to
Functional Deployment Map
 Hand drawn or Visio is acceptable
 Present to group
 Remember…. AS IS Process!
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Quick Win Opportunities
Some processes have been neglected for so
long that a simple mapping exercise may
illuminate many easy and obvious improvement
opportunities.
Conducting a common sense assessment of the
value of each step may help to identify these
opportunities, referred to as ―quick wins, “or
―low hanging fruit.”
Teams should always be prepared to identify
and pursue quick win opportunities —the return
on investment can be very high.
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Quick Win Opportunities
Criteria for Defining an Opportunity as a Quick Win
Easy to Implement: Making the change or improvement does
not require a great deal of coordination and planning.
Fast to Implement: Making the change or improvement does not
require a great deal of time.
Cheap to Implement: The change or improvement does not
require a large investment of capital, of human resource or of
equipment or technology.
Within the Team‘s Control: The team and its management are
able to gain the support of the people needed to make the
change. The scope of the change is within the team‘s ability to
influence.
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Qualitative Analysis
Introduction to Improvement Criteria
 Prior to detailed measurement and analysis of a process,
a team can often identify quick and simple opportunities
for significant improvement. Sometimes these ―quick
wins‖ are sufficient for accomplishing the team‘s
improvement goals.
Customer Value-Added
 An activity can be described as adding value for the
customer only if:
 The customer recognizes the value
 It changes the product toward something the
customer expects
 It is done right the first time
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Qualitative Analysis
Operational Value-Added
 An activity adds operational value if it is not a
customer value-added activity and is:
 Required to sustain the workplace ability to
perform customer value-added activities
 Required by contract or other laws and regulation
 Required for health, safety, environmental or
personnel development reasons
 Done right the first time
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Value Added Analysis
Examples: Non-Value-Added Activities
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Counting the amount of work
Inspection and checking
Sorting work
Logging information
Checking calculations
Reviewing and approving
Moving and set-up
Monitoring work
Stamping
Any type of rework
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Value Added Observations
Let’s get back into your teams
 Based on everything you know so far….
– Quick Wins?
– Value Add Concerns?
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Stakeholder Management
Stakeholder Management
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Stakeholder Management
Committed
Leadership is critical
for success!
Questions to ask:
Who is the sponsor and
stakeholders?
What is his/her current
level of dissatisfaction
with the current state?
What data has been
surfaced to create this
need or discomfort?
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Stakeholder Management
 Create and strengthen relationships which
can be leveraged to manage the change
efforts
 Manage expectations
 Establish two-way communications channel
 Develop a process to detect fearful or
negative reactions which could hinder the
change effort
 Manage resistance to change
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Who is a Stakeholder?
 Stakeholders are individuals and groups of people who have
the ability to influence or are impacted by the direction and
success of the project
–Customers, owners, suppliers and other business partners,
manufacturers, team members, regulators, people within the
process, investment community
 Different stakeholders can perceive the same changes in
dramatically different ways
 Assessment of stakeholders and stakeholder issues are
necessary to identify:
–The range of interests
–Issues to be taken into consideration in planning change and
–To develop the vision and change process in a way that
generates the greatest support
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Stakeholder Management
Risks of Inadequate Stakeholder
Management:
 Unrealistic expectations
 Stakeholders concerned over personal impact
 Rumor mill becomes the main source of information
 Resistance to the change effort
 Fear and confusion
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Types of Resistance in Stakeholders
Technical Resistance: stakeholders believe 6
Sigma produces feelings of inadequacy or stupidity
on statistical and process knowledge
Political Resistance: stakeholders see 6 Sigma as
a loss of power and control
Organizational Resistance: stakeholders
experience issues of pride, ego and loss of
ownership of change initiatives
Individual Resistance: stakeholders experience
fear and emotional paralysis as a result of high
stress
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Supportive Stakeholder
Challenging Stakeholder
 Listens
Apathetic
 Positive toward the project
 Interrupts, not really interested
complacent, why change?
 Demonstrates awareness of
project goals, approach, timeline
and team members
 Enthusiastic; desire to be
involved
 Wants nothing to do with project
 Proactive to see what personal
impact the project will have
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 Not cooperative or forthcoming
 Plainly critical…a vocal opponent
 Willingness to offer resources,
facilities & personal time
 Voluntarily contributes ideas
 Project perceived as low priority
 Behaves as a barrier to project
implementation requirements
 Reluctance to talk/discuss
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Strategies to Overcome Resistance
 Technical Resistance: focus on high-level
concepts to build competencies. Then add more
statistical theorems as knowledge base broadens
 Political Resistance: address issues of perceived
loss straight on. Look for champions to build
consensus for 6 Sigma and change
 Organizational Resistance: look for ways to
allow the resistor greater control over the 6 Sigma
initiatives
 Individual Resistance: decrease the fear by
increased involvement, information and education
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Communication is the Key
Keep stakeholders
aware
and involved
in your project…
 Gate Reviews
 Update Meetings
 Gallery Walk
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Project Stakeholder
Management Plan:
Stakeholder
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Primary
Needs
Project Name: __________________
Planned Actions
Frequency Who will
Support
of Action Manage this Needed to
Stakeholder? Execute Role
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Communication Strategy
Communication strategy defines the message to be delivered
and the method of delivery
 What is the message to be delivered?
 Who is the target audience?
 Is it tailored to the audience?
 Who will deliver the communications?
 When should the communications be delivered?
 How will the communications be delivered?
 How frequently should communications occur?
 How will feedback be obtained and used to address resistance?
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Communication for Successful Change
 Honest and simple
 Communicate early and communicate often
 Communicate with all of your change ―targets‖ –be consistent
from one audience to the next but tailor your message to be
relevant
Be open to concerns and questions from all levels and areas of the
business affected; invite dialogue
 Build communications to address concerns voiced
 A clear demonstration of the leadership‘s commitment to the
change and the success of the business
 A clear description of the compelling need to change
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Project Communication
Plan:
Action/Task
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Objective
Project Name: __________________
Key Message Audience
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Timing Media
Activity
Owner
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Stakeholder Management
Change Management
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Organizational Change Management?
 Organizational Change Management is the
process of managing change with a focus on
people, culture, structure and process
 The goal of Organizational Change Management
is to “manage” the change by demonstrating the
value of the change and addressing any
resistance
 Organizational Change Management does not
eliminate “resistance” to change, it simply
manages it
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Why is Change Management Important
to the Success of 6 Sigma Projects?
 Understanding and managing change is vitally
important. Managing the human element will
be one of the most challenging and dynamic
components of your team experience.
 6 Sigma methodology and tools are fact based
and data driven. The project team also needs
tools to manage one of the most important
tasks of all…getting people to champion your
project and accept your solutions!
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A Basic Change Model
Change can cause a mixture of thoughts and emotions
– Excitement
– Yearning for the past
– Unfocused energy
– Productivity dip—remember, the “dip” is going to
happen, however the objective is to lessen the dip,
not remove all the pain
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Transition State
The transition state is defined by the
implementation plan developed in Improve. This
is the process in which people and organizations
move from the “as is” to the “to be”.
Consider this: Today I work at Chuckie‘s,
tomorrow I‘m doing brain surgery…
–What needs to be done to get there? What
skill sets, training, procedures are required to
facilitate the change?
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Change Management Roles
 Sponsor
–Person with ultimate responsibility,
allocates resources and calls for change
 Stakeholder
–May be responsible for area being impacted
–Needs clear understanding of the change
–Willing to support the change
–May be a sponsor
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Change Management Roles
Change Agent
–Sponsors, Stakeholders, Black Belts, Green Belts
–Create and monitor change plan
–Need to fully understand and be able to clearly
communicate the change
Target
–Group or groups impacted by the change
–Sponsors, stakeholders, change agents and
customers could and would likely be targets of the
change
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Culture Change
 Culture shapes an organization‘s decision patterns,
guides its actions, and drives the individual
behavior of all members (“The way we do things
around here”).
–What are the written and unwritten rules?
–How do people behave?
–What do we believe?
The degree of change and what people believe,
how they behave, and the rules they follow will
have a strong impact on the success or failure
of the change.
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What is Required for Change?
A Compelling Need…
The benefits or rewards of change
are greater than the cost and risk of change
...lighting a "burning platform" at both
the organizational and personal level
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Determine Compelling Need
Documenting the compelling need will require the team to
answer the following questions using data captured in the
Define Phase:
–Process mapping
–Qualitative Analysis
–Define Critical Customer Requirements
Questions to Answer:
Process
What is not working well today?
Are inter-related process identified?
Structure
What are current tools/technology?
What is the organization structure?
Who are potential targets?
Resources unused or underutilized?
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Validate Compelling Need
 Dissatisfaction with the current state must be
greater than the natural resistance to change
 Validates the business opportunity and risk
 Builds the momentum needed to keep the project
moving forward
 Establish shared recognition, by both the team and
key stakeholders of the need and logic for change
 The ability to define the need for change as both a
threat and an opportunity
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Threat Opportunity Matrix
This matrix
helps determine
the driving
factors behind
the project
which can then
be used in
communicating
the need.
Threats
(if we don‘t do the
project)
Short
Term
Long
Term
Opportunity
(if we do the project)
Short Term
Threats:
What are the threats
if the project does
not happen / if we do
not do the project?
Short Term
Opportunities:
What are the short
term opportunities
with the proposed
project?
Long Term
Threats:
What are the threats
if the project does
not happen / if we do
not do the project?
Long Term
Opportunities:
What are the long
term opportunities
with the proposed
project?
Fill Out
Each
Quadrant
Focusing on the Long Term ensures involvement
beyond what can be gained from the Short Term
sense of urgency!
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Threat/Opportunity Exercise
Threats
(if we don‘t do the project)
Opportunity
(if we do the project)
Short
Term
Long Term
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Twelve Key Drivers of Successful Change
 Accountability - Identifying specific roles, goals, and
performance measures for the change
 Adaptability - Learning from, and taking action based
on, the successful and unsuccessful change actions that
are taken
 Communication - Influencing those who will sponsor,
support, implement or be affected by the change,
including the possible determination of a displacement
plan
 Focus, Purpose, and Vision - Defining articulate
descriptions of the technical and organizational
compelling need and vision for the change
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Twelve Key Drivers of Successful Change
 Measurement and Results - Determining the
measurable improvements to be achieved through the
change, and identifying the data to be used to track
those improvements
 Momentum - Responding to shifts in the pace of the
implementation of change actions and acceptance
 Readiness - Aligning the change with the existing
culture and work climate based on an assessment of the
―readiness to change‖ of those individuals, or groups of
individuals, likely to be impacted by the change
 Recognition - Reinforcing individuals and groups
achieving results consistent with the change, and
determining sanctions for those who are not
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Twelve Key Drivers of Successful Change
 Skill Development - Providing training to prepare
for and enable effective participation during and
after the change at all levels
 Team Orientation - Using teams throughout the
organization to manage, implement and take
ownership for the change
 Involvement - Ensuring that those affected by the
change participate fully in decisions and
implementation
 Leadership – Taking leadership actions through an
infrastructure designed to promote and enable
change
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Team Exercise
 Complete Stakeholder Management plan
 Complete Threats/Opportunities Matrix
 Complete Communication Planning
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Threat/Opportunity Exercise
Threats
(if we don‘t do the project)
Opportunity
(if we do the project)
Short
Term
Long Term
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