Envisioning Quality and Excellence in a Services Environment

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Envisioning Quality and Excellence in a Services Environment

Thomas McCartyEVP Six Sigma Practice LeaderJones Lang LaSalle

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Introductions

Tom McCarty

Executive Vice President, Six Sigma Deployment Leader, Jones Lang LaSalle, Inc

Co-Author of "The New Six Sigma“, Lead Author of “The Six Sigma Black Belt Handbook”

15 years experience in leading Six Sigma Business Improvement Initiatives working with numerous executive teams across multiple industries Helping formulate strategic plans, lean process designs, and focused Six

Sigma implementation plans A variety of industry and functional expertise to assist leaders in

enhancing their business performance and financial results [email protected]

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The Case for Change

“Your costs are too high and your service stinks!!”

Chief Financial Officer

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The Difference Between Average and Best Practice Can Make or Break A Service Business

Practice Area Improvement Realized

Call Center Agent Productivity Calls Per Day 30%

Project Management End-to-End Cycle Time 30%

Project Management Headcount 20-30%

Strategic Sourcing Year-to-Year Cost Reduction 20-30%

Month End Revenue Recognition Labor Costs 40%

Accounts Payable Labor Costs 20%

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Six Sigma Methodology Is…

An overall methodology that drives business improvement. A proven tool set for driving and achieving transformational change within

an organization. A Continuous Improvement Process that focuses an organization on

Customer requirements Process alignment Analytical rigor Timely execution

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Six Sigma Adoption – The Maturity Spectrum

Adoption Level

Bus

ines

s Im

pact

Managing process variation Monitoring KPI’s Continuous improvement

Team based problem solving Consistent use of DMAIC model Trained project resources Project selection and prioritization

process

Organizational Transformation Voice of the Customer drives

strategy execution Collaborative process integration Metrics driven governance process

Metric

Methodology

Management System

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Six Sigma Adoption – Levels of Implementation

Adoption Level

Bus

ines

s Im

pact

Discrete Problem Solving

Targeted Improvement

Projects

Organizational Transformation

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Dismantling Resistance

Manufacturing vs. Service

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Dismantling Resistance

People vs. Process

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Dismantling Resistance

Beyond Control (‘this is art…man’)

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Dismantling Resistance

The Personality Myth/ The Hero Syndrome

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Dismantling Resistance

The Curse of Good Enough

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Client-DrivenSix Sigma

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Client-DrivenSix Sigma

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Voice of the Customer Example

Voice of the CustomerIn order to meet my expectations, you must …

Meet or exceed my service expectations.

Communicate project status frequently.

Meet my financial objectives.

Provide real estate solutions tailored for my specific needs.

(Figure 4)

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Client-DrivenSix Sigma

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(Figure 5)

Project “A”

Goal:Actual:

Project “B”

Goal:Actual:

Project “C”

Goal:Actual:

Enables leaders to check status and financial impacts of key improvement projects

Transactions & Projects

Goal:Actual:

Space & Occ Planning

Goal:Actual:

Enables leaders to drill down into each operational process

Ran Rate Savings

Goal:Actual:

Client Satisfaction

Goal:Actual:

Tracks performance relative to key operational performance metrics

Cost Reduction

Goal: $0 MMActual: $0 MM

Client Impact

Goal: $0 MMActual: $0 MM

Retail Roll Out

Goal: $0 MMActual: $0 MM

Shareholder ROI

Goal: $0 MMAggregate: $0 MM

Tracks performance relative to strategic and financial impact of CRE

Data Accuracy

Goal:Actual:

Speed

Goal:Actual:

Facilities Management

Goal:Actual:

Scorecard

Operational Dashboard

Process Drill-Down

Project Status

Project “D”

Goal:Aggregate:

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Client-DrivenSix Sigma

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Client-DrivenSix Sigma

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Call Center Process innovation enables Call takers to dispatch work orders directly to sub contractors

Sub-contractor

Process Innovation: Data base enables call taker to

dispatch directly to preferred sub-contractor

2 non-value added steps eliminated Property managers freed to do

higher value work Responsiveness improves

Process Innovation: Data base enables call taker to

dispatch directly to preferred sub-contractor

2 non-value added steps eliminated Property managers freed to do

higher value work Responsiveness improves

Dispatch subInform property

manger

Steps

Customer

Call taker

Property manager

Receive request

Identify preferred sub

Dispatch directly to

subcontractorPerform work

Close out work order

Take requestInput work

order

Call with request

ID preferred sub from database

Accept work request

Perform work

Close out ticket

Call the call center

Roles

(Figure 6)

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Client-DrivenSix Sigma

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Reaching Higher Level Partnerships with Customers

Repurchase

Expand

Innovate

Tactical

Part

ner

Vend

or

Strategic

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The Six Sigma Methodology is the Path to Customer Driven Solutions

A framework for discussing high level customer business objectives the customer’s big “Y’s”

A framework for exploring performance drivers that impact those objectives the customer’s vital “X’s”

A methodology for analyzing and proving business impact of innovative solutions the business case

A methodology for driving solution implementation Execution and Sustained improvement

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The Six Sigma Solution Development Process

Draw customers into a discovery dialogue

Engage customers in collaborative business improvement teams for joint business case development

Drive analysis, improve project execution and demonstrate impact on desired results

Enable customer to drive sustained gains and continuous improvement across the life of the solution

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Six Sigma Solution Development Process

Develop customer Scorecard Conduct high level process analysis Identify opportunities

Conduct baseline measurement & analysis Develop business case Select opportunity

Conduct deeper analysis Apply rigorous project management & monitoring Use Blitz and Breakthrough teams to drive implementation

Transfer Six Sigma capability to customer Develop control plans and monitoring systems Optimize processes

InnovationsWorkshop

Business Improvement Teams

Business Case & Contract

Solution Implementation Teams

Ongoing ProcessManagement

Col

labo

ratio

n w

ith C

usto

mer

Tea

ms

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Tips for Getting Started

Focus on a Few Key Metrics Cycle Time First Pass Yield Rework

Launch Serious Improvement Projects Meaningful to clients High potential team members Demand results

Involve Senior Leadership Get beyond lip service Monthly performance monitoring and action planning

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Six Sigma – Your Swiss Army Knife for Business Improvement

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Let’s Have A Great Conference