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Using Lean Sigma to Develop Corporate Strategy

Six Sigma – iSixSigma Forums Old Forums General Using Lean Sigma to Develop Corporate Strategy

This topic contains 42 replies, has 14 voices, and was last updated by  john beaudoin 10 years, 7 months ago.

Viewing 43 posts - 1 through 43 (of 43 total)
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  • #51804

    ellzey
    Member

    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!

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    #180722

    Adam L Bowden
    Participant

    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.Adam

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    #180723

    Nolan
    Participant

    In 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.

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    #180724

    DLW
    Participant

    The 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 – BPEX

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    #180725

    Nolan
    Participant

    DLW, 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.

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    #180727

    DLW
    Participant

    Yes, 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 – BPEX

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    #180728

    Nolan
    Participant

    I 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.

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    #180760

    DLW
    Participant

    Les,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 – BPEX

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    #180764

    Mario Perez-Wilson
    Participant

    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 Andrew’s framework for defining strategy, SWOT: Strength, Weaknesses, Opportunities and Threats.
    Michael Porter’s “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.com

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    #180767

    Nolan
    Participant

    Looks 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.

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    #180772

    Nolan
    Participant

    I 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.

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    #180780

    Ron
    Member

    Have 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.

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    #180781

    Ziggy
    Member

    Great answer Ron !!

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    #180782

    Mikel
    Member

    What nonsense. You must not understand corporate strategy.

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    #180783

    GB
    Participant

    Ron,
    You are high…

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    #180784

    Taylor
    Participant

    No wonder our country is in such bad shape, if these are the kind of questions coming out of corporate America………………
    Amazing

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    #180786

    SandMan
    Member

    Chad,The answers are more worrying… Anyone can ask a question…

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    #180806

    Eric Maass
    Participant

    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 ateric.maass@ieee.org .
    Best regards,Eric Maass, PhDDirector and Lead Master Black Belt, DFSSMotorola

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    #180810

    Nolan
    Participant

    Eric, 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?

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    #180811

    john beaudoin
    Participant

    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.com

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    #180812

    john beaudoin
    Participant

    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 hologram

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    #180814

    Nolan
    Participant

    What? 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?

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    #180825

    Mikel
    Member

    Sony in the early days? What BS.

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    #180826

    Mikel
    Member

    Who the hell is Ken MacKenzie/

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    #180830

    Eric Maass
    Participant

    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 Belt 

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    #180831

    Nolan
    Participant

    Eric, 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.

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    #180858

    GB
    Participant

    Stan,
    I think the crazy questions and responses are due in part to the full moon.

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    #180863

    Mikel
    Member

    That and most don’t understand the difference between strategy and
    strategy execution.

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    #180870

    Taylor
    Participant

    HB  Even the full moon can’t be blamed for that much BS……………..

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    #180876

    GB
    Participant

    true.
    “That’s no moon, that’s a space station.   I have a bad feeling about this…”

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    #180878

    GB
    Participant

    Well said…

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    #180884

    Taylor
    Participant

    “Lock S-Foils in attack position, May the force be with you”

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    #180886

    Nolan
    Participant

    Chad, I just heard your mommy say lunch is ready. You can come out of your room now.

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    #180889

    Taylor
    Participant

    Les If I want a reply from you, I’ll ask. If you don’t see the humor in it. Edited by Moderator.

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    #180893

    Nolan
    Participant

    Sorry 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.

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    #180900

    Taylor
    Participant

    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.
     

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    #180904

    Mikel
    Member

    Hey, careful – I like Dora.

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    #180906

    GB
    Participant

    Swiper, no swiping…
    Swiper, no swiping…
    Swiper, no swiping!
    yeah!

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    #180955

    Taguchi
    Member

    No
    He is just showing his level of knowledge in SS

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    #180959

    Mikel
    Member

    He is trying to impress us. Can’t be promoting, everyone knows the
    good six sigma people are not at Motorola.

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    #182071

    john beaudoin
    Participant

    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!

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    #182072

    john beaudoin
    Participant

    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.

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    #182073

    john beaudoin
    Participant

    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.

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