Using Lean Sigma to Develop Corporate Strategy
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john beaudoin.
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- February 5, 2009 at 9:03 pm #51804
Does anyone have examples of companies that have used Lean or Six Sigma to develop their annual corporate strategy? It’s a hard subject to research…searches tend to find examples of Lean Sigma deployment strategies or aligning Lean Sigma projects to the corporate strategy, or Hoshin Planning, but that’s not what I am looking for. Thanks for any info you may have!
0February 6, 2009 at 1:28 am #180722
Adam L BowdenParticipant@Adam-L-BowdenInclude @Adam-L-Bowden in your post and this person will
be notified via email.Strategic deployment along with some classical consulting techniques
to define existing issues, future state, vision and next mission (12
month plan) in stepping stone approach to the future state.Adam0February 6, 2009 at 2:00 am #180723In my opinion – no. Lean removes waste, SS removes variation; in simplistic terms.
Build strategy based on company strengths, market conditions, competition, trends, innovation, resource availability, etc. Then perfect what you do with LSS.0February 6, 2009 at 2:15 am #180724The waste of doing the wrong things can be far greater than the
waste of doing the right things poorly. In my view, LSS in the broader
sense is critical to strategy execution.DLW – BPEX0February 6, 2009 at 3:06 am #180725DLW, Susan asked if LSS could help “develop” strategy and that’s the question I answered.
She didn’t ask if LSS can help with strategy “execution” – had she asked that I would have said yes it can.
PS: I don’t get the relationship of your first sentence to your second one. Can’t find any logic there.0February 6, 2009 at 4:10 am #180727Yes, I understood susan’s question. And actually, it was not
whether LSS could help develop strategy. She asked whether
anyone had any examples. I do not, so I did not respond to her
question.My post was in response to yours. It seemed to me that you were
suggesting that Lean and/or Six Sigma do not come into play until
“game time”, and that strategic planning does not lend itself to
those tools and principles. Strategic planning is a process just like
any other business process. The Six Sigma BOK includes it. And I
doubt many would claim ever to have experienced a waste-free
planning session.”The waste of doing the wrong things can be far greater than the
waste of doing the right things poorly.” By that I meant simply that
if Lean is mainly about reducing waste, what more important place
to apply it than at the top?”In my view, LSS in the broader sense is critical to strategy
execution.” Therefore, the principles of Lean and Six Sigma should
be applied from the beginning, with strategic planning being the
first step in strategy execution. However, many people do not view
LSS as extending beyond their initially narrower areas of Lead Time
reduction, SPC, etc. Taken broadly enough, they overlap a good
deal. That’s why “LSS” has become more commonly used.It is not surprising that susan is finding little information on
applying LSS to strategy development. I doubt that very many
managers and leaders really attempt it at that level. The process is
more like a project, it takes place infrequently, it can be harder to
define elements and metrics, and — unless the group is relying on
an outside facilitator with thick skin — who is going to manage
that process involving top executives in order to “lean it out”?DLW – BPEX0February 6, 2009 at 4:33 am #180728I see your point DLW, however I could care less whether my strategy development is Lean. I want it to be effective. I’m willing to “waste” time to pursue thoughts & ideas that may add 20% top line revenue if I properly assess the viability of a new service line. I’m not about to save pennies here and miss dollar potentials.
After I’ve decided unique opportunties to pursue I’ll apply LSS to lower cost, improve quality, measure VOC, etc.0February 6, 2009 at 3:10 pm #180760Les,I agree with you about being willing to sacrifice time during the
planning process in favor of solid results. The problem I have seen,
though, is that waste in the planning process can be more serious
than just lost time. Leadership gets hung up on the wording of a
Vision or a Mission Statement or a Value Proposition. They confuse
goals and objectives and tactics. They jump ahead too soon. Then
when it comes time to deploy, they hit dead ends.It seems a little like doing a “5 Why” and accepting a simple fact as
a cause, then trying to build on it. It’s a more insidious form of
waste.Anyway, good discussion.
DLW – BPEX0February 6, 2009 at 3:47 pm #180764
Mario Perez-WilsonParticipant@Mario-Perez-WilsonInclude @Mario-Perez-Wilson in your post and this person will
be notified via email.I have not heard or witness any company using Lean or Six Sigma to DEVELOP their annual corporate strategy.
What I have witnessed however, is using Kenneth Andrews framework for defining strategy, SWOT: Strength, Weaknesses, Opportunities and Threats.
Michael Porters Five Forces approach on how competitive forces shape strategy is a classic framework as well. There is a cornucopia of strategy frameworks, but Lean and Six Sigma are not frameworks for strategy development.
Mario Perez-Wilson
http://www.mpcps.com0February 6, 2009 at 4:25 pm #180767Looks as if we agree Mario; but watch out, Stan will ream you out for including your website link. It’s his job to make certain the policies of the forum are followed. Must be on a retainer from iSS.
0February 6, 2009 at 4:45 pm #180772I agree, DLW, we’re bringing out some key issues. And, I wasn’t thinking about the writing, or packaging, of a mission statemeent et al. I was thinking about the down-and-dirty decision making about what lines of business to close, what one’s to open, what channels to pursue and all those other core decisions that will determine success or failure. Not the showy stuff, the real stuff. Hard decisions. Entrepreneurial stuff.
0February 6, 2009 at 7:08 pm #180780Have you heard about two small companies…GE and Honeywell?? They use six sigma to drive their corporate strategy.
Any organization that has rolled out Six Sigma properly would do likewise.. there are of course many examples of poorly implemented six sigma implementations sounds like you are familiar with these.0February 6, 2009 at 7:09 pm #180781Great answer Ron !!
0February 6, 2009 at 7:26 pm #180782What nonsense. You must not understand corporate strategy.
0February 6, 2009 at 7:37 pm #180783Ron,
You are high…0February 6, 2009 at 7:44 pm #180784
TaylorParticipant@Chad-VaderInclude @Chad-Vader in your post and this person will
be notified via email.No wonder our country is in such bad shape, if these are the kind of questions coming out of corporate America………………
Amazing0February 6, 2009 at 8:18 pm #180786Chad,The answers are more worrying… Anyone can ask a question…
0February 7, 2009 at 1:57 pm #180806
Eric MaassParticipant@poetengineerInclude @poetengineer in your post and this person will
be notified via email.Hi Susan,
You probably know that Lean is based on approaches at Toyota.
About a year ago, Decisioneering held a conference in Denver, and one of the presentations was on the Strategic Deployment approach used at Toyota.
I have a copy of that presentation, if you’d like to email met [email protected] .
Best regards,Eric Maass, PhDDirector and Lead Master Black Belt, DFSSMotorola0February 7, 2009 at 7:46 pm #180810Eric, how would that apply to Susan’s question re: corporate strategy creation?
PS: Why do you include your title & company with each post? Does that not conflict with promotion rules of the Forum?0February 7, 2009 at 9:06 pm #180811
john beaudoinParticipant@john-beaudoinInclude @john-beaudoin in your post and this person will
be notified via email.Hello All, I haven’t submitted a post in awhile, but thought I would
take a look at what’s been going on in the world of six sigma. First
of all, I’m now a head manager for logistics at a worldwide
company for all of North America. I received by greenbelt and
blackbelt prior when I worked for Sony for 8 years. I’ve also since
received an MBA from the University of Kansas, the NCAA National
basketball champions and also have a BS in Aerospace engineering
from Purdue University.The question is a good one and interesting one to respond to. The
answer is no business outside of a consulting company starts with
6-Sigma. The responders are correct in that there are traditional
concepts of providing a value add to potential customers and then
tailoring business strategy to traditional strategic items as stated. However, there are companies that once established, look to how
they can integrate 6 sigma into their business as a tool to gain
some competitive advantages over other corporations. This was
the case with Motorola, GE, and Sony in the early days.The challenge is real in that if there is no 6-Sigma model, a great
deal of money and resource is required to set up training,
development, tracking, etc and there are many consultants that are
well off from this approach.The key focus of your company’s strategic approach in these tough
economic times is to drive waste out of your business. If your
company has established products and processes that don’t
require much evolution in the near term (for example, if you
manufacture household cleaning products for example), then you
need to model 6-sigma style projects into your business plan
around taking a process you do everyday and optimizing it to
reduce waste.On the other hand, if you manufacture cell phones or provide
services, or are a marketing based company like a Nike, your
options and fruits your looking to bear with 6 sigma are limited.I recommend that an overall business plan should look at
something unique and all business encompassing. There is some
brilliant work in organizational theory around a holonomic model.
Managers would be good to focus on creating a nimble
organization that can quickly adapt to the market environment and
change. 6-Sigma tools will help you optimize a process, but it is a
lot of wasted effort to optimize a process for producing an object
that won’t exist in the next few years for example. You want to
focus on optimizing your development processes, etc.Reference this website: http://www.emacassessments.com0February 7, 2009 at 9:10 pm #180812
john beaudoinParticipant@john-beaudoinInclude @john-beaudoin in your post and this person will
be notified via email.FYI – Michelin Tires is now headed up by a former deciphel of Ken
MacKenzie and if you compare their processes from HR on down you
can see their company is outperforming Goodyear. There are a few
other companies that have made good turn around starting down the
path of the hologram0February 7, 2009 at 9:18 pm #180814What? A “deciphel” of Ken… What the heck is that? Did you mean “disciple”?
And “down the path of the hologram”? – does that mean following an illusion? Plenty of done that.
Dude, you needed to take some English classes along with the litany of other courses you listed.
AND, Susan asked about corporate strategy creation – where does any of your answer address that?0February 8, 2009 at 3:30 am #180825Sony in the early days? What BS.
0February 8, 2009 at 3:34 am #180826Who the hell is Ken MacKenzie/
0February 8, 2009 at 1:08 pm #180830
Eric MaassParticipant@poetengineerInclude @poetengineer in your post and this person will
be notified via email.Les,
Since you chose to address me in an earlier message, I thought I’d respond to you in this same train of mssages.
Many of us come into this forum with the intention of seeing if we can help other people. In my case, if I see that someone else has adequately answered the question or addressed the issue and I have nothing to add that might be value-added, I will go on to the next question.
The person who asks the question is generally an intelligent adult, and fully able to determine whether the responses they have received are applicable and helpful, or not.
I enjoy helping other people, and I tend to ignore comments unless I find them value added. I have learned a lot from some of the other people who have posted thoughts and perspectives in this forum.
My one suggestion for you, is that you take a moment to contemplate why you feel the need to judge whether other people are being helpful or not, or to make any other judgements, and whether – in so doing – you are providing value-added. If it benefits you in some way, great.
If not, perhaps you might want to think about the role you want to play in this forum. It seems that you are highly intelligent, and have a wide ranging background, and I would really enjoy hearing some of your thoughts and ideas. I think you have a lot you can contribute.
Best regards,Eric Maass, PhD and Master Black Belt0February 8, 2009 at 3:01 pm #180831Eric, thank you for taking the time to write this. I appreciate your kind comments and will make an effort to keep them in mind as I participate here.
0February 9, 2009 at 1:43 pm #180858Stan,
I think the crazy questions and responses are due in part to the full moon.0February 9, 2009 at 2:34 pm #180863That and most don’t understand the difference between strategy and
strategy execution.0February 9, 2009 at 3:13 pm #180870
TaylorParticipant@Chad-VaderInclude @Chad-Vader in your post and this person will
be notified via email.HB Even the full moon can’t be blamed for that much BS……………..
0February 9, 2009 at 3:25 pm #180876true.
“That’s no moon, that’s a space station. I have a bad feeling about this…”0February 9, 2009 at 3:37 pm #180878Well said…
0February 9, 2009 at 4:33 pm #180884
TaylorParticipant@Chad-VaderInclude @Chad-Vader in your post and this person will
be notified via email.“Lock S-Foils in attack position, May the force be with you”
0February 9, 2009 at 4:53 pm #180886Chad, I just heard your mommy say lunch is ready. You can come out of your room now.
0February 9, 2009 at 5:17 pm #180889
TaylorParticipant@Chad-VaderInclude @Chad-Vader in your post and this person will
be notified via email.Les If I want a reply from you, I’ll ask. If you don’t see the humor in it. Edited by Moderator.
0February 9, 2009 at 6:01 pm #180893Sorry to aggrevate you so much Chad but this Star Wars stuff is a bit old. And those who hang on to it are a bit old to still be living at home.
0February 9, 2009 at 6:57 pm #180900
TaylorParticipant@Chad-VaderInclude @Chad-Vader in your post and this person will
be notified via email.Les-Why do you assume I/We who enjoy such trivial things as Star Wars are still living at home? Maybe we have kids or even Grand Kids, by which we entertain them with. Maybe we find little nuggets of comedy to share from it that keep us from going completely insane while answering such mundane and often just plane stupid questions. Maybe by the end of the week I’ll get back to your level and begin some Dora the Explorer jokes for ya.
0February 9, 2009 at 8:12 pm #180904Hey, careful – I like Dora.
0February 9, 2009 at 8:14 pm #180906Swiper, no swiping…
Swiper, no swiping…
Swiper, no swiping!
yeah!0February 10, 2009 at 12:04 pm #180955No
He is just showing his level of knowledge in SS0February 10, 2009 at 1:10 pm #180959He is trying to impress us. Can’t be promoting, everyone knows the
good six sigma people are not at Motorola.0March 6, 2009 at 3:42 am #182071
john beaudoinParticipant@john-beaudoinInclude @john-beaudoin in your post and this person will
be notified via email.Actually, I punched disciphel into Google to check the spelling before
I posted and it came up. Thanks for the correction.Dude – If you don’t check out the organizational hologram, you can’t
comment on it!0March 6, 2009 at 3:45 am #182072
john beaudoinParticipant@john-beaudoinInclude @john-beaudoin in your post and this person will
be notified via email.Ken MacKenzie is a phD who recently retired from the University of
Kansas. He is the author of many publications and has studied the
structures and Organizational models of business for most of his
entire career. His breakthrough research has been published and has
spawned others to validate his findings.0March 6, 2009 at 3:48 am #182073
john beaudoinParticipant@john-beaudoinInclude @john-beaudoin in your post and this person will
be notified via email.I worked for Sony for 8 years up until 3 years ago. I was one of the
groups to be trained as a greenbelt in the first months Sony started a
6 sigma program in the US after I’d been there about 3 years.
Eventually, Sony got away from the Air Academy training and tried to
call the program their own as Sony Six Sigma. Shortly before I left the
company, they were starting to phase it out completely as the
management team waned in its support. The result is most likely
more waste and lay offs.0 - AuthorPosts
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