Agenda General discussion on quality Technologies of business quality programs Technology is never about the technology, but rather it’s about the relationships involved Tying quality efforts to strategic planning Business Structures to encourage quality What type of leadership is causing quality programs to fall short of their potential?

1. What is Quality?
or, Search for the “Holy Grail”
“In the next century, a company
will stand or fall on its values”
Robert Haas, CEO Levi Strauss
Lecture Series by Jim Maginnis
Organizational Kinetics
Copyright 2001 - 2009
1

2. General Agenda
 General discussion on quality
 Technologies of business quality programs
 Technology is never about the technology, but
rather it‟s about the relationships involved
 Tying quality efforts to strategic planning
 Business Structures to encourage quality
 What type of leadership is causing quality
programs to fall short of their potential?
2

3. Table of Contents: Quality…
 …in thought, education, government,
software, service, data, ethics, and culture
(Lecture 1 of 6)
 …in self-reflection, encouragement, double-
loop learning, vision, and change
(Lecture 2 of 6)
 …in risk assessment, process metrics,
project management, and problem definition
(Lecture 3 of 6)
3

4. Table of Contents: Quality…
 …in a system development life cycle,
architecture, team building, and release
(Lecture 4 of 6)
 …in control tools, quality assurance,
process reengineering and management
(Lecture 5 of 6)
 …in integrity, business strategy, leadership,
and organizational kinetics
(Lecture 6 of 6)
4

5. What is Quality?
… in thought, education, government,
software, service, data, ethics, and culture
It is difficult to sustain honest leadership in a corrupt
culture or corrupt leadership in a honest culture.
Lecture 1 of 6 by Jim Maginnis
Copyright 2001 - 2006
Table of Contents
5

6. Discussion on Quality: What Is
Quality In Thought And Statement?
 Unity, authority, organization, engaging,
vividness, economy, sensitivity, clarity,
emphasis, flow, suspense, brilliance,
precision, proportion, depth, and so on…
– Unity can be improved with an outline
– Authority can be improved with footnotes and
references to seriously reviewed sources
– Etc…
 Pirsig‟s Metaphysics of Quality
6

7. For Example, What Is A Quality
Introduction And Conclusion?
 Introduction
– Grab interest and inspire the reader
– Provide paper thesis, purpose, or message
– Problem description, alternatives, and solution
– Sell the author as the best person for delivery
 Conclusion
– Restate thesis
– Summary of key lessons learned
7

8. Quality Writing Is A Process
 Develop and track efficient work habits
– Project journal should include all references
 Identify the audience and resources
 Clarify in your mind what you want to say
– Storyboarding uses a sequence of images
 Begin with an abstract, intro, and outline
 Flesh out the outline (keep asking why)
 Have others read and critique the work
 Write each chapter, repeating the above
8

9. What is Plagiarism?
 Taking credit for the words / work of another
 Quoting someone‟s entire paper is no better
 Summarizing/paraphrasing still not original
 Many say that without a Doctorate, though,
one is not capable of an original thought, but
– Percy Spencer held 225 patents, including for the
microwave, with only a third grade education
– HP and Atari turned Jobs/Wozniak away without
college educations, so they started Apple Comp.
– Dropouts started Microsoft, Dell, Oracle, Honda
9

10. By what measure does something
get into a museum?
 By its excellence – ----------------
It‟s the Best!
No! It‟s the First
Quality is first about being unorthodox
 It is when we allow an individual, in fact, to
redefine quality for the majority. An item
makes it into a museum for its historical
significance in changing our perspective.
 Einstein was rejected by every instructor
through college, ending up a patent clerk
10

11. NOT All Opinions Are Valid!
Hypotheses or Check with Valid Opinion
Intelligent hunch IPO Analysis and Action
(Input) (Processing) (Quality Output)
Textbook
All questions Theory and
Controlled Critical Thinking means
are “valid” Experiences
identifying assumptions,
issues, and criteria for
“Wishful Thinking” judgment for making
or “Blowing Smoke” sound conclusions
“Peacock” or “Weasel”
11
from the evidence.

12. Social Critical Theory
 Aimed toward critiquing and changing society
by relating the parts of society to its whole just
as Copernicus revolutionized astronomy by
taking into account the position of the observer
 Derived from Kant‟s (1700s) arguments for the
use of synthetic reasoning, “thoughts without
content are empty, and intuitions without
concepts are blind” as well as Marx (1800s),
“philosophers have only interpreted the world
in certain ways; the point is to change it.”
12
Quality is being an effective change agent

13. How is Murphy‟s Rule involved?
 First: “If there is any way to do it wrong,
some sod will do it.” or “The universal
aptitude for ineptitude makes any human
accomplishment an incredible miracle.”
 People always refuse the right answers
 Mutated: “It‟s not my fault, predictably bad
things can‟t be planned for” was written by
Larry Niven. This mimetic drift clearly
demonstrates Murphy's Law acting on itself!
 Corollary: Any system which depends on
human reliability is inherently unreliable.
13

14. Instead, Management by Fact
 Companies are moving away from relativistic
management by opinion or a “soft” science
– where only subjective “feelings” define truth
» “I know it in my gut!” is the worst reasoning!
» Failure seen only in terms of extenuating circumstances
 Firms are “teaming” to collect and use hard
numbers to achieve desired achievements
– Establish baseline and target, calculate gap, find
problems, develop and implement a improvement
process, track with ~6 key metrics and adjust
14

15. Management by Fact (cont)
 Starts with the establishment of a vision with
objectives and appropriate measures.
 And, industry and customer quality standards
 Reduce errors & patching and upgrade time
 Identify & answer critical business questions
 Key aspect of Total Quality Management
 Tools include Oracle‟s E-Business Suite
(http://www.oracle.com) and the Balanced
Scorecard (http://www.bscol.com).
15

16. America‟s Dark Legacy
 The Alien and Sedition Acts of 1798
 “The only good Indian is a dead Indian”
 Economy based on horrific slave treatment
 Suspension of habeas corpus in Civil War
 Banning Chinese immigration 1882-1968
 Kidnapping & internment camps in WWII
 Blacklisting witch hunt in the McCarthy era
 Harassment of Martin Luther King, Jr. et al
 Corruption of law enforcement and education
16

17. Governmental Corruption
 Excludes the poor
 Marginalizes the middle classes
 Destroys the base of natural resources
 Weakens the economy
The public continues to be apathetic about
crime and misconduct as long as it is
contained. Successful reform must thusly be
directed at enhancing the national culture.
17

18. Solution Characteristics
 Locally empowered actions must cover both
the public and private sectors with systems of
investigation, prosecution, and education
 Oversight of elected and non-elected officials
 Sources must be addressed by long-term
Societal, Holistic, and Networked Strategy
 Powerful auditing organizations backed by
specialized anti-corruption legislation
 Citizen participation with free & open press
18

19. Problems Solutions
Immediatism Long-term policies that incorporate short and
medium term results
Sectoralism Integral, holistic policies and programs with
information territorial approach
Bureaucratism Networked, ends-oriented, problem-solving,
and opportunity seeking orientation
Governmentism Leadership of government, civil society,
through consultative, participatory, partnership
seeking, networked approach
Corruption 100% transparency and 0% tolerance for
corruption
Lack of Combine traditional and non-traditional
Resources resources
19

20. What‟s Wrong With Education?
 World‟s worst for 3 R‟s but #1 in self-esteem
 The greatest correlation is with teachers!
– Student scores vary more than 20% by changing
teachers – 2-6 times as by grade, school, or district
– Typical teacher is an academic underachiever from
bottom third of test scores and can‟t pass GED,
ETS Math test, or Mass. Educator Certification
– 16th highest paid profession (CNN: “Best Job”)
 People refuse to see that quality is measurable,
that the problem lies inside the room, and the
20 world cannot be divided by “us and them”

21. How To Get Better Teachers
 Milken Teacher Advancement Program (TAP)
– Performance-based accountability and merit
pay based on long-term student progress
– Professional growth with evaluated teaching
– Multiple career paths (associate, mentor, master)
– Market-driven compensation (e.g.: more for math)
– Expanded supply of high quality teachers
 9 states (30% of students) have TAP initiatives
– Arizona, South Carolina, Colorado, Florida,
Georgia, Michigan, Pennsylvania, Texas, Virginia
21

22. Good Teacher Causal Predictors
 Coursework and certification in subject area
 Prestige of degree institution and advanced
degrees, especially for secondary schools
 Pedagogical coursework, but ONLY when
coupled with advanced content knowledge
 High literacy and verbal test scores
 But, NOT the National Teachers Exam!
 NO value in the national teacher certification!
22

23. What Is Quality?
 “A Degree of Excellence”
(Webster‟s Dictionary)
 Better => The fitness for use,
The ability to meet intended
customer expectations and
produce customer successes
With increasing efficiency, and
The viral cultivation of
quality in all involved
23

24. Quality Discussion Summary
 A constant despite no consensus on how to
describe it or which paths will best achieve it
 Requires originality, change, and accountability
which requires that dissention be encouraged
 Good objective & subjective metrics come from
matching internal freedoms & external controls
where everybody leads, is responsible, and acts.
 Quality is systemic - not heroes and villains
 Modeling integrity with “walking the talk”
 Long term results are more important
24

25. The Value of Quality
 The Malcolm Baldrige National Award is
given by the President to organizations
judged to be outstanding in seven areas:
leadership, strategic planning, customer and
market focus, information and analysis,
human resource focus, process
management, and business results.
 From 1995 through 1999, winners of the
Malcolm Baldrige Quality Award
outperformed the S&P 500 by 6.5 to 1
25

26. Key Areas of Quality Concern
 Software
 Customer Service
 Data
 Internet Web Production Environment
Where All Three Are Combined
Presented concepts are just as useful for
governmental and community groups.
26

27. Aspects of Software Quality
 Flexible: Continuously Evolving
 Reusable: Optimal Code Productivity
 Maintainable: Able to Be Quickly Repaired
 Integration: Couple Products Together Easily
 Scalable: able to handle large loads
 Consistency: Rapid Learning and Use
 Usable: Optimal User Productivity
 Reliable: Maximizes System Productivity
 Functional: Able to Produce
27

28. Aspects of Service Quality
 Timeliness: Customer Waiting
 Completeness: Customer Gets All Asked for
 Courtesy: Treatment by Employees
 Consistency: Same Level of Service for All
 Accessibility and Convenience
 Accuracy: Performed Right Every Time
 Responsiveness: Reactions to the Unusual
28

29. Aspects of Data Quality
 Timeliness: Quick to Acquire and Provide
 Integrity: Appropriate and Secure
 Accuracy: Regular Consistency Checks
 Completeness: All the Customer Needs
 Duplications: Regularly “Cleaned” Data
(on both the front and back ends)
29

30. Ethical Issues Framework
– Privacy – Property
» Collection, storage, » Ownership and value
and dissemination of of information and
information about intellectual property
individuals
– Accuracy – Accessibility
» Authenticity, fidelity, » Right to access
and accuracy of information as well as
information collected appropriate barriers
and processed (e.g. fees) to access it
30

31. Characterizations of Quality
 Producer and user perspectives
 Teams and Quality Management Principles
 Change Management and grabbing their hearts
 ISO 9001 and Six Sigma statistics processes
 Key Financial, Product, Customer Satisfaction,
and Process Metrics => Metrics Action Team
 Process Control Tools: Root-cause, Fishbone
 SDLC Development models and methods
 Completing business context and real testing
 A competitive weapon and company “glue”
31

32. Perspectives on Quality
The Meaning
of Quality
Producer's User's
Perspective Perspective
Quality of Quality of
Conformance Design
Production ----------------- ----------------- Marketing
Work Process Sturdy, Easy
Cost to Use, Price
Product
Fitness
32

33. Team vs. Workgroup
 Japanese companies have successfully been
using quality circles while no one has in U.S.
– Quality Circles need to be Workgroup based
 Most 12-step programs fail within a church
– 12-step is a Team based organizational process
 Work Groups have “Bosses” that lead
 Teams are based on equal participants that
are guided by a pre-agreed Team Charter
33

34. What is a Team Charter?
 A team charter is a critical defining method
for spelling out and gaining consensus on the
role and responsibilities of all team members
 Cannot be created after the culture develops
 Problem Statement, Project Mission and
Scope, Business Case, Values, Resources,
Customers, Deliverables, Success Metrics,
Key Milestones, Team Member Expertise and
Commitments plus Expectations and
Consequences, and Communication Plan
34

35. Team Success Causal Predictors
 Well Defined Structural Elements
– Shared team vision and management
– Clear and agreed agenda and roles
– Conflict Management Strategy spelled out
 Positive Interdependent Behaviors
– Group encouragement of innovation and diversity
– Effective collaboration and decision making
» Information and help is freely shared
» All team members are equally responsible
– Effective time management during all meetings
35

36. Start by Examining the Processes
Process Quality Framework = “Best Practices”
– Process Definition and Modeling
» ISO 9000:2001 and SEI CMM models
» OPEN and Rational Unified Processes (RUP)
» IDEAL, Bellcore TR-179, and SPICE methods
» Bootstrap, Healthcheck, Trillium, GQM, and Tick-IT
» Function, Behavior, Organization, and Information
– Assessments (Benchmarking & Data Analysis)
– Process Improvement Programs
– Continuous Measurable Improvement (CMI)
36

37. Quality Management Principles
 Customer Focus: Meeting customer needs
with an aim of enhancing their satisfaction
(more importantly, though, their successes)
 Leadership: Sound leadership skills must
be demonstrated within the organization.
 Involvement of People: People are the
most valuable resource, and thus should be
party to all decisions and activities. The
more important the information, the more
people that should see it (right to know).
37

38. Quality Management Principles
 A Process Approach: An object-oriented
management outlook of the business as a
system of processes and interactions, based
on some sort of iterative plan-do-study-act
cycle approach.
 A Systems Approach: A holistic awareness
of the systems in place and relationships
will enhance products and services as well
as the satisfaction of internal and external
customers.
38

39. Quality Management Principles
 Continual Improvement: By knowing what
the organization does and how well, one can
identify ways to continually improve both the
systems and their processes.
 A Factual Approach: Business performance
and the quality of products and services are
best improved by the analysis of data, internal
audits, and management reviews.
39

40. Quality Management Principles
 Mutually Beneficial Supplier Relationships:
Sharing organizational and customer needs
with suppliers to gain in terms of decreased
costs and improved performance.
 These principles are intended to…
– Provide a clear statement in a business framework
– Provide management an understanding of benefits
– Provide an understanding that will facilitate a
successful culture for the ISO9001 standards
40

41. What is Change Management?
 Mapping cultural to technology changes
 73% of CEOs see cultural factors as most key
 Requires flexible, iterative, dedicated, well-
funded processes with full executive support
 Human Capital Perf. Management (HCP) is
results driven to better employ, deploy,
develop, evaluate, and integrate a workforce
 Focuses on how things are done rather than
just what is done using Balanced Scorecards
41

42. The
Change
Wheel
identifies
critical
success
factors
that will
facilitate
program
success
42 (From http://www.army.mil/aeioo/docs/TM_Strategy.pdf)

43. 43 (From http://www.eitoolkit.com/)

44. Organizational Culture
Unwritten Expectations, Values, Norms
 Core attitudes, values, Rules, Policies,
Core Beliefs & Assumptions
Language and
and Slogans Behaviors
and behavioral norms Stories, Legends, Control
Systems
collectively valued by and Heroes
Symbols
organizational members Rites, Rituals,
and Ceremonies
and Artifacts
– Rituals, rites, ceremonies
– Stories, legends, heroes Language
– Rules, policies, slogans Rituals Customs
– Language and behaviors
Organization
– Control systems
– Symbols and artifacts Legends Values
44

45. Translating Core Characteristics
 Language Metaphor, jargon, and
communication styles
 Customs Standard practices and norms
 Values Guiding principles, mission
statements, and philosophy
 Legends Founder stories and critical
incidents
 Rituals Annual award presentations and
promotion ceremonies
45

46. Culture Effectiveness Continuum
(Banner & Gagne)
Ineffective  Reactive: Meet challenges with
action; always struggling to keep up
 Responsive: Good in stable
environment, but not in dynamic one
 Proactive: Analytical, anticipating
emerging trends and always adapting
 Interactive: Vision based, functions
as a whole, focuses on connectedness
Effective  Inspired: Goes beyond constraints
46 (From http://www.neiu.edu/~aserafin/421/SchoolCulture/)

47. Organizational Socialization
 Formal
– Orientation Programs
– New Employee Training
– Employee Handbook
– Job Rotation
 Informal
– On-the-job Training
– Supervisor/Coworkers  Mentoring
– Experiences – Career Functions
– Word-of-mouth – Psychosocial Functions
47

48. Organizational Psychology
 All organizations exhibit psycho-pathology
– St. John‟s Syndrome and Koinonitis
– Manic and Manic-Depression (Bi-polar)
» Grandiose plans, sense of invincibility
» Respond with structure and performance plans
– Schizophrenia
» Need to define mission and better time management
– Common Paranoia
» Even successful intervention will make you unpopular
– Narcissistic, megalomaniacal, and theomanic
48 Cohen and Cohen, The Paranoid Corporation

49. Organizational “Shrink”
 Any organization that does not perceive
its own pathology, will destroy itself
– Refuses to see internal problems and then
projects troubles on external sources
 Mental health starts with consciousness
– Serge and others top management consultants
refer to this as “presence”
– Determine if the
current solutions
have been coerced
49

50. Stick to Coaching and Not Therapy
 Do‟s (focus on future and goals)
– Develop a balance by clarifying core values
– Help set better and more meaningful goals
– Encourage and provide the tools, support, and
structure for people to do more on their own
 Don‟t (focus on past or present)
– Don‟t work on “issues” or delve into the past
– Don‟t try to change personality structures
– Don‟t try to make better any psychic pain,
anxiety, depression, or sexual dysfunction
50

51. Defuse Anger and Agree
 Plan Ahead: your bottom line, their substitute,
everyone‟s interests, and possible outcomes
– Let your secret Plan-B dictate your Plan-A
 Emotional control and reduce tension
 Persuade by focusing on interests, not positions
 Consider Authoritative, Righteous, Win-win,
and Relationship-building options…
 With both distributive and integrative solutions
51

52. Negotiating with a Narcissist
 Repeatedly find agreements, even the weather,
and get closure (confirm and leave a topic)
 Sitting is better than standing for being calm
 Never validate their self-destructive delusions
 Avoid trying to disprove their perceptions
 Be assertive and keep positive: never say, “No”
 No hedging or dilution: no, “I feel awful, but”
 Ask questions that include their cooperation
52

53. Handling the Neurotic
 All organizations exhibit neuroses
– Conspicuous consumption
– Constant need to check on employees
– Shoot the messenger
 Complaining never works as it just makes
them more neurotic. Better to overload them
with unimportant information and kindness
– Prevalent depression → well-being attacked
– Denial → meet with one-on-one mirroring
– Compulsive → meet with best failure awards
53 – Post-trauma → “distraction therapy”

54. Negotiating with a Personality Disorder
 Rigid & adversarial relationship perspectives
– Chronic inner distress (fear of abandonment)
causes excessive need for controlling others
– Experts at blaming others (rather than self)
– Lying is often justified to an ends or revenge, likely
to call others statements into question, with an
intensity likely to fool the naive person
 Seeks jobs as councilor, teacher, cop, religious
authority, as well as organizational leadership
 Only motivated by his own personal reasons
54

55. P. A. S. S. Emotional Needs
 Power: often by the “power of the purse”
 Affiliation: identity that is different from
how they see themselves today
 Status: need to feel important and visible
 Security: they will be safe
 In general, Personality Disorders are more
focused, better organized, and with superior
social skills (due to need to control others);
so, they‟ll win head to head, being smarter
55

56. Handling the Personality Disorder
 Reduce anxiety (esp. fear of abandonment)
 Calmly maintain control of conversation
 Slow down, talk slowly, brainstorm solutions,
to keep the conversation simple and focused
 Encourage them to be part of the solution to
support their feeling of maintaining control
 Show how giving up can be winning control
by identifying their particular strengths
 Bipolar are the most difficult to predict
56

57. Types of Personality Disorders
 Borderline Personality Disorder: wide mood
swings, rage, idealization and devaluation
 Narcissistic Personality Disorder: feels
superior and entitled to special treatment
 Histrionic Personality Disorder: needs chaos
 Anti-social Personality Disorder: disregard
for societal rules with very little empathy
 Dependent Personality Disorder:
preoccupied with helplessness and passivity
57

58. Negotiating with a “Normal”
 30% are Neurotic (blaming themselves),
15% Personality Disorder (blaming others)
 45% are not primarily motivated by their
repressed fears and emotions, but still have a
strong emotional content to decision making
 What to say when a customer is wrong?
“You’re right! ...and there are
many people who feel the same way. From
years of experience, [NO however] I’ve
found that in fact (insert the truth)... etc.”
58

59. Proxemics and First Impressions
 Humans (& animals) make territorial claims
– Walking behind a desk can be very invasive
– Americans are especially space conscious
 Malcolm Gladwell‟s book, Blink, showed
how critical is our 5-second first impression
– When a new prospect finds your web site, you
have five seconds to convince them to stay
– People enjoy being right, so they will continue
on a poor, but immediately attractive, web site
59

60. Discussion Question
How is performance currently being measured and
data collected in your organization? How is
success measured and/or quality defined?
Does your organization tend to fix with short-term
patches or fully diagnose? Is it more neurotic
(blaming employees) or PD (blaming others)?
What type of cultural changes might be required
for a new perspective on quality?
60

61. 10-Minute Break…
Question:
What do you
get what
you cross
an instructor
with a spud?
Answer:
A Facili-Tator
61

62. What is Quality?
… in self-reflection, encouragement,
double-loop learning, vision, and change
Change agents create fit products with increasing
efficiency while cultivating excellence in all involved.
Lecture 2 of 6 by Jim Maginnis
Copyright 2001 - 2006
Table of Contents
62

63.  “Today‟s illiterate are not be those who
cannot read or write, but those who cannot
learn, unlearn, and relearn.” --Alvin Toffler
 “It is not the strongest or most intelligent of
the species that survive, but the one most
responsive to change.” --Charles Darwin
 “Willingness to change is a strength, even if
it means plunging part of the company into
total confusion for awhile.” --Jack Welch, GE
 “It is the change agent‟s duty to prepare the
organization for change. So, he or she must
be able to take the pulse of the organization
to assess readiness.” --Dr. Richard Bryteson
63

64. Self-reflection and Differentiation
 Fahrenheit 451‟s solution was to remember,
build mirrors, and contemplate for a year
 Six-Sigma helps identify, develop, & nurture
effective and efficient internal change agents
 Members should first reassess effectiveness
of their individual coping strategies
 Motivation to change (“unfreezing”) comes
usually from growing anxiety with reduced
blaming (hitting “bottom” and surviving)
64

65. The Successful Professional is…
 Motivated, strong work ethic, feels accountable
 Flexible, creative, and open minded
 Intelligent, w/ common sense (“street smarts”)
 Able to shift to organizational ecology as focus
 Open to peer supervision
 Likely to volunteer to be trained
 Willing to modify policies & dedicate resources
 Ability to take the “lead” in decision making
65

66. Personal Pareto Analysis
(80% of results comes from 20% of work)
 Know what is important to boss and customer
 Prioritized H/M/L to-do list that all agree on
 Uninterrupted time for correspondence
 Personal brainstorming when most alert
 Consensus on performance goals with boss
 Organized office & calendar, ready for fires
 PERT chart for all projects
 Delegate, Listen, and Network well
 Daily exercise, alone, friends, and good sleep
66

67. Change Agents
 We can all be agents of change “The process of
– Change-agent skills are as unleashing
important to our success as our expertise to
implement
professional discipline skills
organizational
– The purpose of our jobs is to change
change what needs changing by for the purpose
adding value each and every day of improving
– Foresight, flexible, and responsive performance”
(Swanson &
 Competence maintains the system Holton, p. 260)
 Expertise changes the system
67 Development

68. Preparing Others for Change
 Change Readiness: It is the change agent‟s
duty to prepare the group for change by
conveying credible positive expectations as
well as providing empathy and involvement
 Building A Shared Vision: The participants in
a change process must see what the pain and
work of the change process will bring them –
the change agent must build a vision with
them and continually communicate it
 Develop Political Power: Assess support
68

69. Sources of Power Strategies
Individual Sources
Power Strategies
of Power
Knowledge
Knowledge Playing it
Straight
Others’
Others’ Support Using Social
Support Networks
Personality Getting Around
Personality Formal System
69

70. Elizabeth Kubler-Ross Model
Deal to skip: Detail benefits
Sabotage: Acknowledge anger Blame game: Focus on root
Shoot messenger: ID poor behavior cause
Withdrawal: Focus on problem
Owns solutions: Use as Coach
Focus on benefits: Provide
recognition
Forget it: Review business case
Apathy: Emphasize inevitability No Control: Stepwise w/ follow-up
Rationalize: Allow to sink in Absenteeism: Reinforce positive
(adapted from http://www.army.mil/aeioo/tm/)
70

71. All In A Day‟s Work
 A structured approach to changing others
begins with a planned mind-body focus to
building personal intervention strategies
– Stress management, relaxation therapy, etc
71

72. Kurt Lewin‟s Change Theory
72 Unfreezing Changing Refreezing

73. Three Steps of Successful Change
 Kurt Lewin asserts that successful change
requires unfreezing the status quo, changing
to a new state, then refreezing the new change
to make it permanent. Moving away from the
equilibrium can be achieved in three ways:
– The driving forces, which direct behavior away
from the status quo, can be increased.
– The restraining forces, which hinder movement
away from the status quo, can be increased.
– The two approaches can be combined.
73

74. Unfreeze – Break Frame of Reference
 Create crisis to motivate people for change
 Arouse dissatisfaction with the current state
– Tell them about deficiencies in the organization
– Expect instability as people lose old beliefs
 Get people involved in decision making
 Users may prefer to leave than endure
– These feelings and attitudes need to be
managed and understood
74

75. Unfreeze – Emotional Support
 Insecurity, anger and self doubt part of
user's perception of themselves, the new
system and the changes being introduced
 Build in rewards
– Tie rewards to change/use recognition, status
symbols, praise to get people to go along
 Strengthen top executive support
– Need to break down power centers
75

76. Change / New Ways to Work
 Establish new beliefs and behaviours
 Line management should provide the direction
 Establish clear goals and timelines
 Institute smaller, acceptable changes that
reinforce and support the bigger picture
– Procedures, job descriptions, reporting
 Develop management structures for change
– Plans, strategies, mechanisms that ensure change
76

77. Change – Second Stage
 Begins when employees start to understand
changes will benefit them and the company
– Recognise and accept the whys and wherefores
 Assistance is required at this stage
– Assist line management in establishing change
– involve users and introduce them to the system
– dispel the myths and rumours
– communicate to users how to use the system
77

78. Change Communication
 Maintain open, two-way communication
– What people don‟t know & understand is a problem
 Communicate how it will effect people
– Allay any unfounded fears users might have
 Stop the “rumour mill”
– Newsletters, mail, bulletins, meetings
– Technicians must often deal with
users‟ issues without understanding
fully the broad business rationale
78

79. Refreeze – No Going Back!
 When the new way to work has arrived
 Celebrate “death” of the old system
 Cannot assume „refreezing‟ is end of
process or ever takes place
 Further change must be anticipated….
 Develop institutionalizing structures
– Organizational appropriate retreats,
technologies, and performance appraisals
79

80. Refreeze Support
 Not sufficient to install / implement new
system with or without enthusiasm of users
 Need ongoing support and training for as
long as it takes to become institutionalised
 Build success experiences
– Set and work towards targets for change
 Reward desired behavior
– reward behavior that reinforces changes
– reward use of old system during interim
80

81. FORMAL
(OVERT)
ASPECTS
• Goals
• technology
• structure
• policies and
procedures
• products
• financial resources
INFORMAL (COVERT) ASPECTS
• perceptions
• attitudes
• feelings
• informal interactions
• group norms
• values
• beliefs and assumptions
81

82. Organizational Culture Recap
 It‟s like an Iceberg or an Onion
– Little shows on the surface and under many layers
 Lasting change requires new beliefs
 Organizational Development (OD) aims to:
– Deepen the sense of organizational purpose and
strengthen interpersonal trust
– Encourage problem solving rather than avoidance
– Supplement formal authority with knowledge and
skill based personal responsibility for change
82

83. Organizational Development (OD)
avoids the usual “quick-fixes”
 A long-term effort to improve visioning,
empowerment, learning, problem-solving, and
well-being using a collaborative management
of the organization culture via interventions
– Intergroup development
– Process consultation
– Sensitivity training
– Survey feedback
– Team building
 Utilizing the consultant-facilitator role and
83
applied behavioral science, i.e. action research

84. Organizational Surveys
 Identify perception discrepancies
 Identify group‟s unique qualities
– Discovery of organizational strengths
– Dreaming of the future organization
– Design of a common vision
– Destiny for how to fulfill the dream
Data Collection Feedback Develop Action Plans
Employees Through group
Feelings about the
complete discussions, build
organization are
surveys to provide specific plans for
summarized and
information about overcoming problems
problems in their shared with all are identified
organization employees and developed
84

85. Other OD Change Activities
 Inter-group confrontation: Each group
lists its complaints about others as well as
what are common complaints against itself
 Process consultation: Feedback & coaching
to help groups finds their own solutions
 Organizational mirroring: Focal group
gets feedback about how it is perceived
 Role negotiation: negotiate an increase,
decrease, or status quo in other‟s behaviors
 Life and career building & Team building
85

86. 86

87. Creating a Learning Organization
Einstein was once asked,
“What is the most powerful
force in the Universe?” He
said, “Compound Interest.”
 Outdated…
– R & D as disengaged
“Think Tank”
– DoD Research (extra 7-
15 years to use research)
– Incubators
» Not About New Ideas
87

88. Technology Research Slowdown
 Management still based on the Roman Army
 Still using coal burning plants for additional
electricity (such as for electric cars)
 Car engines mostly unchanged for 140 years
 E-mail basically unchanged in 30 years
 Only one new programming language (Java)
 Bell Research Labs was broken up
 IBM now predominately a service company
88

89. Recursive Improvement Process
 Important ideas (vision & strategy)
 Champions and teams (passion)
 Reliable sources for many smart people
from many fields, simple processes,
business models, human considerations, etc
 Examples… (capture and iterate)
– Video Games – by fervent gamers
– Open Software Foundation – networks
– XML – HTLM to perfection, but only iterative
89

90. Next = Past + Now
New Ideas More New Ideas
Tool 1 Tool 2
Product 1 Product 2 Product 3
Every product development
must include tool development
90

91. How is This Realized?
 Networked improvement community
 Recursive and persistent
 Comprehensive (products, ethics, quality…)
 Systematic (A-Task; B-Improve A; C-
Improve B to Improve A)
 Research efforts should become increasingly
networked and open, creative, persistent,
comprehensive, and systematic to enable
endless technology revolutions
91

92. Creating a Vision
 Discern & describe group‟s core ideologies
– What are the core values that inform members
what is important in the organization?
– What is the organization‟s core purpose or
reason for being?
 Construct the Envisioned Future
– What are the bold and valued outcomes?
– What is the desired future state?
92

93. Change Management
 Practice of ensuring that all changes are done
in a planned and authorized manner
– Incident identification, corrective measures for
problem, RFC research, infrastructure execution
 Ensuring that there is a business reason (or
business rule) behind each change
 Plans and tests each and every change
 Creates a back-out plan should the change
result in an unexpected state
93

94. Authorization and Planning
RFC Request for change
Change
Manager
medium major
minor Change Advisory Executive
Board (CAB) Committee
CAB Meeting
Authorization
94

95. The Change Management Process
Implement Manage
RFC
Preparation Categorise
Prioritise Refusal
Authorise
Build Plan
CAB
Approve
Test
Release Refusal
Backout
Implementation
Review
95

96. Feasibility Analysis
Economic Organizational
Feasibility Feasibility
Can we afford it? Is it a good fit?
Technical Operational
Feasibility Feasibility
Does the Will it be accepted?
capability exist?
96

97. Six Forces For Change
 Workforce is more culturally diverse and
many employees are lacking in basic skills
 Technology is replacing narrow, routine tasks
with those requiring team, multi-tasking efforts
 Economic Shocks include the Asian real estate
collapse and Russian devaluation of the ruble
 Competition is more global, involves more
mergers, and includes more Internet commerce
 Social Trends include delaying marriage, anti-
smoking attitudes, and the popularity of SUVs
 World Politics include U.S. embargo of Lybia,
97
Soviet collapse, and Black rule in South Africa

98. Managing Planned Change
Goals of Planned Change:
Improving the ability of the
organization to adapt to
changes in its environment.
Changing the behavior of
individuals and groups in
the organization.
98

99. The Effective Change Manager
 Anticipates the need for change
– Rather than reacting to emergencies
 Diagnoses the nature of needed change
 Makes tough choices of alternatives
– Rather than taking the fastest exit
 Manages the change process
– Making it effective and efficient
– Rather than lurching from one crisis to another
99

100. Change Management Activities
Motivating Change
Creating Vision
Effective
Developing Change
Political Support Management
Managing the
Transition
Decide metrics at
commencement
Sustaining associated with
Momentum incentives
100

101. Action Research
Process Steps:
 A combination of research and 1. Diagnosis
action involving data gathering, 2. Analysis
feedback to the client group, 3. Feedback
discussion, planning, and action 4. Action
5. Evaluation
 Intentional and goal oriented
 Linear and continuous
Action research benefits:
 Then, second-order,  Problem-focused rather
multidimensional, than solution-centered
 Heavy employee
multilevel, radical,
involvement reduces
and discontinuous resistance to change
101

102. Managing the Transition
 Activity Planning
– What‟s the “roadmap” for change?
 Commitment Planning
– Who‟s support is needed, where do they stand,
and how to influence their behavior?
 Change-Management Structures
– What‟s the appropriate arrangement of people
and power to drive the change?
 Sustain Momentum with support systems
102

103. Hard and Soft Problems UNBOUNDED
PROBLEMS
Messes
Relationship
and team
building Organizational
Development Models
for Change
Hard Systems
Models for
Change
Project
Difficulties management
BOUNDED
PROBLEMS Technical complexity
103

104. Who‟s Involved?
 Sponsor – person who authorizes
 Change Agent – who causes change
 Target – Subject affected by the change
 TQM and CMI  Re-engineering
– Incremental – Quantum leaps in
improvements performance
– Bottom-up – Driven by Top
participative Management
decision making
104

105. Flexible Manufacturing Systems
 Best used with…
– High-tech, initiative, self-managing employees
– Organizations that use organic structures, teams
 Integration of computer-aided design,
engineering, manufacturing to produce low-
volume products at mass-production costs
 Change happens by changing computer
programs, not producing new parts
– Pratt and Whitney produced 20 new models
105

106. What Can Be Changed?
 Culture – underlying values and goals
 Structure – authority relations, coordination
mechanisms, and job design
 Technology – processes, methods, tools, etc
 Physical Setting – workplace space, layout
 People – skills, expectations, behaviors
Culture Structure Tech Physical People
nology Setting
106

107. Learning…
…is viewed as a transaction
between the learner and the
environment in which neither
can be regarded as fixed… The
target of education is “change
and growth in the individual
and his behavior.”
Bradford, Human Forces in Teaching and Learning
107

108. Types of Changes
 Anticipatory based on expected situations
 Reactive in response to unexpected situations
 Incremental course adjustments
 Strategic that alter core shape or direction
Establish a strategy
Managing Redesign the
Learning structure
Reshape the culture
108

109. Change Perspectives
 Tuning
– Most common and least risky
– Known as preventive maintenance and kaizen
 Adaptation
– Incremental changes that are in reaction to
external problems, events, or pressures
 Re-orientation
– Also called frame bending (Nadler and Tushman)
 Re-creation
– Intense and risky, also called frame breaking
109

110. Reactions to Change
 On the wrong track
 Laughing it off
 Growing self-doubt
 Buy-in / constructive
CHANGE
direction
110

111. The Pugh OD Matrix
Behavior Structure Context
Org. Poor climate: Wrong structure: Wrong strategy:
level Feedback survey Change structure Change strategy
Lack of Poor
Inter- Distance: Brings
cooperation: coordination:
group groups closer
Role negotiation Improve liaison
Poor team spirit: Unclear tasks: Poor resources:
Group
Team building Redesign work Change Tech-
level
exercises system nology or Staffing
Poorly defined Poor HRM
Individ Dissatisfaction:
jobs: Job application:
ual Counseling
enrichment Improve HRM
111

112. Lewin‟s Force Field Analysis
Driving Forces E
Restraining Forces
Q
People pressing for U People variables
change I resisting change
L
Structure pressing I Structure variables
for change B resisting change
Task variables R Task variables
I
pressing for change resisting change
U
Technology variables M Technology variables
pressing for change resisting change
112

113. Why Do People Resist Change?
 Surprise – threaten sense of balance
 Inertia – desire to maintain predictability
 Misunderstanding and lack of skills – seen
negatively without remedial training
 Sense of powerlessness – forced change can
create anger and passive resistance
 Lack of trust – when talk is often not walked
 Fear of failure – people doubt their abilities
113

114. Why Resist Change? (cont)
 Personality Conflicts – managers disliked
by management are poor change conduits
 Poor Timing – events can conspire to
create resentment about a particular change
 Lack of Tact – a lack of sensitivity to
feelings can create resistance to change
 Threat to Job Security
 Conflict with social groups or other goals
114

115. Overcoming Resistance
 Education and communication – to prevail
over misinformation or poor communication
 Participation and involvement – bringing
those of opposition into the decision process
 Facilitation and support – easing adjustment
 Economic incentives – too often, however,
this can only result in overpaid burnouts
 Negotiation and agreement – exchanging
something of value for less resistance
115

116. Overcoming Resistance (cont)
 Manipulation and co-optation – distorting
facts to make them appear more attractive
 Explicit and implicit coercion – the use of
direct threats or force upon resisters
Overcoming Resistance to Change
Education and
Participation
Communication
Facilitation
Negotiation
and Support
Manipulation
Coercion
and Cooptation
116

117. Advantages of Resistance
 Forces management to check and recheck
each and every proposal
 Helps identify specific problem areas where
change is more likely to cause difficulty
 Gives management information about the
intensity of employee emotions on the issues
 Provides a means of release of emotions –
which causes employees to think and talk
more about the changes
117

118. Change Without Pain
Easiest to adjust
Knowledge Skills
Recombine through training and development
Demeanor Network Harder to adjust
Recombine through coaching and counseling
Aptitude Values Traits Largely fixed
Recombine through addition and replacement
118

119. The Status Quo Learning Curve
Unfreeze Phase Change Phase Refreeze Phase
Productivity
Time
119

120. The “Performance Dip”
 Change naturally produces a performance dip
– Chaos and creation go hand in hand
 Managers must make it clear that mistakes are
acceptable and avoid any kind of punishment
for error in a learning environment
– Best Failure Award (failing when doing it right)
 Stakeholder management, training, feedback
120

121. [whatever].
A motivating
121 (From http://www.youroklahoma.com/coreoklahoma/change1.pdf)

122. Politics of Change
 Impetus for change is likely to come from
outside change agents
 Internal change agents are most threatened
by their loss of status in the organization
 Long-time power holders tend to implement
only incremental change
 The outcomes of power struggles in the
organization will determine the speed and
quality of change
122

123. Change Commitment Model
change is implemented
during this phase
(from http://www.army.mil/aeioo/tm/)
123

124. Helzberg‟s Theory of Motivation
Recognition Responsibility
Motivators
Achievement Advancement
Personal Growth Job Interest
Norm of work output
Involvement Salary/Incentive
Working Conditions
Company policy and administration
Status Security Hygiene
Fringe benefits Job title Factors
Personal Relationships
124

125. McGregor‟s Theories of Motivation
X-theory vs. Y-theory
 Man dislikes work and  Work is necessary to
will avoid it if he can psychological growth
 Must be forced to put  People want to be
out the right effort interested by work
 One would rather be  People can seek and
directed than accept accept responsibility
responsibility  Self-discipline is more
 Man is motivated by effective and severe
anxiety about security  Men are motivated by
 Most men have little hope to realise potential
creativity - except for  Creativity is widely
getting around rules! distributed & underused
125

126. Leadership Responsibilities
Level of change Unfreezing Movement
Individuals (skills, Reductions in Demonstrate new
values and attitudes) numbers skills
Training Focus New supervision
Structure (pay/merit BPR, Business Changes in reward
systems, reporting strategy, Metrics, systems, Systems
relationships, work Experiential thinking, Reporting
design) training relationships
Climate or culture Value Statement, More trust and
(openness, conflict Customer focus, openness, Feedback
management, decision Feedback on database, Shared
making) employees’ views vision, Top support
126

127. Just Like a 5-speed Transmission
 1st Gear - Strategy – The “it”
 2nd Gear - People – Who to do it
 3rd Gear - Process – How to do it
 4th Gear - Technology – With what to do it
 5th Gear - Continuous Improvement –
How to do it better
127

128. Discussion Question
What is the difference between goal-driven and
purpose-driven quality programs?
 Goal-Driven  Purpose-Driven
– To-do list of short- – To-be list of long-
term tactics term core principles
– Success defined by – Success defined by
achieving goals staying on the path
– Afterwards, – Never ending effort
program is finished for improvements
128
Is one better? Or, both equally important?

129. 10-Minute Break…
Question:
What do you
get what
you cross
an instructor
with a spud?
Answer:
A Facili-Tator
129

130. What is Quality?
… in risk, process metrics, project
management, and problem definition
Corollary to Murphy‟s Law: Any system which
depends on human reliability is inherently unreliable.
Lecture 3 of 6 by Jim Maginnis
Copyright 2001 - 2006
Table of Contents
130

131. Info Tech Infrastructure Library
 Common vocabulary: applied simultaneously
with quality improvement methodologies
– Service Delivery
– Service Support
– Implementation Planning
– Security Management
– Infrastructure Mgt.
– Business Perspective
– Application Management
– Software Asset Management
131

132. MSF and MOF
 Microsoft Solutions Framework
– Established in 1991, revised in 1999 and 2003
– Software Dev. and Infrastructure Deployment
– Such as: www.nasdaq.com and www.marriott.com
MSF
MSF for CMMI
MSF for Agile Third-Party In-House
Process
Software Dev Offerings Customizations
Improvement
 Microsoft Operations Framework
– Based on mature ITIL and PMI PMBOK
– Established in 1999, updated 2002
– Concentrates on management of IT operations
132

133. Key Parts of MSF
Team Model Process Model
Quality
Features
Risk Management
133

134. Some MSF V4 Templates
 Moved away from MS-branded methodologies
– “White Label” approach to customization
– Ivar Jacobson‟s Essential Unified Process (EUP)
– Osellus‟s RUP and CMMI integrated IRIS
– Avanade‟s Connected Methods
– Conchango‟s Scrum templates
– GotDotNet‟s BSDAgile
– Cognizant‟s
version of FDD
134

135. MS Operations Framework
 Three Models: Process, Team, and Risk
 Service Management Functions (SMFs)
– Processes and policies across service solutions
– Better alignment
and scalability
 “Adopt and adapt”
– IT core business
– IT cost allocation
– Speed solutions
135

136. MOF Team Role Clusters
136 (from http://www.microsoft.com/technet/itsolutions/cits/mo/mof/mofeo.mspx)

137. Daily Build
 Building the product into an executable
form on a daily basis is…
 A strong indicator that the
team is functional
 A way to make the product
and its progress visible
 The heartbeat of the
development process
137

138. Ongoing Process of Testing
Golden Release/RTM Release
Release Candidates Release
Readiness
Zero-Bug Release
Betas
Stability
Product
Test Specification Scope
Complete/Alpha Complete
Internal Release n (Alpha, Pilot)
Internal Release ...
Internal Release 2 Project Plan
Internal Release 1 Approved
Test Plan
138

139. BrightWork Solutions and Tools
 Leading provider for managing projects on
the Windows SharePoint Services (WSS)
– Issue, Task, Bus. & IT Project, Agile Software,
and IT Work Managers & Solution Builder
– VSTS for your engineering group, and…
– SharePoint solutions for everyone else
 Sam Guckenheimer‟s PowerPoint entitled
“As simple as possible but no simpler”
139

140. Project Management Software
 MS-Project
 SureTrak Manager
 CA-Super Project
 Kidasa Milestone
 Open Source
– NetOffice Project
– GNATT Project (open source)
– ToDoList (open source) AbstractSpoon
Software
140

141. Time Management
 Really Action Management
– Time is constant, but we choose our action plan
– See Getting Thing Done by David Allen
 Personal Information Management (PIM)
141

142. The Risk Management Process
 Identify, analyze, plan, track, control, & learn
142

143. The Risk Management Mindset
Identification Mitigation
2. Mitigation
2. “Java by Avoidance:
Project skills not Project Use Visual
Finish high Finish Basic (or by
enough.” transfer: Out
source)
Risk 2 Risk 2
Risk 1 Risk 1 1. Mitigation
by Conquest:
1. “May not Avoid / Delay, Demonstrate
be possible to image super-
superimpose
Transfer, imposition (or
images Project Accept, or Project by delay or by
adequately.” tolerance)
Start Tolerate Start
143 Adapted from Software Engineering: An Object-Oriented Perspective by Eric J. Braude (Wiley 2001)

144. Building a Risk Statement
Asset Threat Vulnerability Mitigation
What are you What are you How could the What is currently
trying to protect? afraid of threat occur? reducing the
happening? risk?
Impact Probability
What is the impact to the How likely is the threat given
business? the controls?
Well-Formed Risk Statement
144

145. Defining Roles / Responsibilities
Executive
Determine
Sponsor acceptable risk
“What's
important?”
Information
Assess risks Define security Measure security
Security Group requirements solutions
“Prioritize risks”
IT Group Design and build Operate and
“Best control solution” security solutions support security
solutions
145

146. Security Risk Mgt Process
4 Measuring 1 Assessing
Program Risk
Effectiveness
3 Implementing
Controls
2 Conducting
Decision
Support
146

147. Why Use A Project Mgt Method?
 Poor estimation of duration and costs
 Inadequate planning of resources and activities
 Lack of co-ordination of resources & activities
 Lack of communication with interested parties,
leading to unwanted products being delivered
 Insufficient measurables and poor quality
control, resulting in the delivery of products
that are unacceptable or unusable
 Lack of control over progress so that projects
do not reveal their exact status until too late
147

148. What is PRINCE2?
 PRojects IN Controlled Environments is a
standard project management methodology
to apply PM skills for a structured approach
to release rollouts and service improvement
148

149. What is ISO 9001:2000?
 Updated to align with ISO 14001, OHSAS
18001, and the Malcolm Baldridge criteria
 Do we know what we did today well enough
to be sure we can do it again tomorrow?
 Can be as simple as a single creative page
 Retaining only the information that shows
activities are being satisfactorily carried out,
independently audited, with Exec‟s invested
149

150. Computer-Supported
Collaborative Learning (CSCL)
 Help students effectively learn together
– Assumes that “Learning begins with a problem
to be solved rather than content to be mastered”
 Communications and Collaboration Tools
– eMail, Web, calendaring, chat, databases
– Exchange, GoToMeeting, Domino, iMarkup, K2
– Still need face-to-face meetings
Electronic Electronic Collaborative Work
Communications Conferencing Management
Tools Tools Tools
150

151. Capability Maturity Models
 Capability maturity models (CMMs)
– Carnegie Mellon‟s CMM
– Capability Maturity Model Integration
– ISO 15504, or SPICE (Software Process
Improvement and Capability dEtermination)
 About what to measure (KPAs in level 2) to
ensure that we do it better tomorrow
 Can be used with MOF to benchmark the
capability of one‟s SMFs
151

152. Personal Software Process (PSP)
 Basically CMM level 4/5 for an individual
– Emphasizes learning by doing, past performance,
defect reduction, estimation accuracy, motivation
– Largely based on reviews at every stage via
planning, development, and post mortems
» Tracking problems, earned value: time, size of product
– “Engineering Disciple,” not Cognitive Psychology
 Team Software Process for group dynamics
– Support structure with role definition & coaching
» Team building, status meetings, post mortems, synergy
152

153. From CMM / PSP to Six Sigma
 Six Sigma for company (vs individual or team)
 While CMM /PSP focuses on the what, Six
Sigma is about evaluating processes for …
– how best to forecast and validate improvements,
– who (anyone honest and can handle the math)
– why (with CTQs from VOCs).
 More externally focused (vs inwardly CMM)
 Formal Configuration & Release Management
153

154. What is Six Sigma? LSL USL
6s
s Standard
deviation
 A measure of business capability
– Tightly controlled process
» Six standard deviations (or sigma) between mean and
nearest specification limit
» Defect rate of 3.4 defects for every 1 million opportunities
ORGANIZATIONAL TRADITIONAL SIX SIGMA
ISSUE APPROACH APPROACH
Problem resolution Fixing (symptoms) Preventing (causes)
Behavior Reactive Proactive
Decision Making Experience-based Data-based
Process adjustment Tweaking Controlling
Employee training If time permits Mandated
Chain-of-command Hierarchy Empowered teams
Direction Firefighting Benchmarking and Metrics
154

155. Why is Four Sigma Not Enough?
 9 hours per year of unsafe drinking water
 107 incorrect medical procedures a day
 200,000 incorrect drug prescriptions per day
 18,322 pieces of mishandled mail an hour
 2 million documents lost by the IRS a year
 Two short or long landings at any major
airport each day
How do such situations improve…
155

156. The Target: In Other Words…
156

157. Inputs, Outputs, & Y=f(x):
 X = input to the process  Y = Output to the process
 Six Sigma helps explain  We typically measure
which of the controllable Xs performance by measuring
have the most influence on the Ys of a process!
the Y! Alias: Critical Xs
 Example:  Example: We weigh
– Exercise (type, amount…) ourselves on a scale.
– Diet (type, amount, calories, – At or below target weight
carbohydrates, fats, proteins)
– Medical ?
– Others Above target weight
157

158. The Six Sigma Process
Practical
Problem
Define  Define the project scope
 Select the output characteristics for the Y‟s
 Assess the performance specifications
Practical
Problem
Measure  Validate the measurement systems
 Establish the initial capability for the Y‟s
Statistical
 Define the performance objectives
Problem
Analyze  Document the potential X‟s
 Analyze the sources of variability
Statistical
Solution
Improve
 Screen the potential causes
 Identify the operating conditions
 Determine the capability for the X‟s
Statistical
Control
 Implement the process controls
Control  Document what you have learned
158 Warning: Requires a cultural change for best results

159. Six Sigma Roadmap Matrix
Define Measure Analysis Improve Control
Develop Collect Develop focused Create Develop &
baseline data problem possible document
charter on defects and statement solutions for standard
possible cause root causes practices
Map the Plot defect data Explore Select Train teams
over time and potential causes solutions
process analyze for
special causes
Understand Create & Organize Develop plans Monitor
stratify potential causes performance
voice of the frequency plots
Pilot plans
Collect data Create process
customer & do Pareto Implement
for updating
analysis Use statistical plans
methods to procedures
Calculate Measure
quantify cause results Summarize and
process sigma & effect communicate
Create detailed relationship Evaluate results
process maps benefits
Recommend
159 future plans

160. Searching for Balance
6
s
5s
4s
3s
2s / 1s
160

161. 6 Sigma Problem-Solving Tools
Defects
% PPM
99.9996% 3.4 6s Design for 6 Sigma
(DFSS)
99.9767% 233 5s
Process Entitlement
99.379% 6,210 6 Sigma Tools:
4s •Process Characterization: statistics
•Process Optimization Modeling
Seven basic tools: Pareto, Fishbone,
93.32% 66,810 Check Sheets, Histograms, Flowcharts,
3s
Brainstorming, and Control Charts
69.13% 308,700 2s Experiential or “Tribal”
30.23% 697,700 1s knowledge
Current Process Capability
161

162. Voice of the People
 Traditionally, Marketing defined customer
needs, but isolated workers can forget the
importance of ease of use and durability
 Customer Relationship Management implies
that everyone is involved with CS
 Customers are ideally in development team
 About 20 customers should be included
 ISO 9001:2000 adds Customer Satisfaction
162

163. Critical to Quality (CTQ) Chart
Function: Critical to Quality (CTQ) Weighting Count Score
Customer Service
Calls unanswered No unanswered calls Count X 2 56 112
Delay in answering Greater than 30 seconds Count 144 144
Question not answered,
call back required No call backs Count 23 23
Shipping
Late shipments No late shipments Count X 2 56 112
Incorrect item/quantity No incorrect items Count X 2 4 8
Incorrect address No incorrect addresses Count X 2 6 12
Shipper error No errors Count X 2 20 40
Production/QC
Product defects
reported No defects Count X 2 112 224
Planning/Inventory
Backorders <2 days No backorders Count X 2 61 122
Backorders >2 days No backorders Count X 4 18 72
163 Monthly Customer View Score 869

164. 0
164

165. Example Kano Chart
SMS texting is a Must for a mobile phone
165

166. Cost of Poor Quality (COPQ)
 Cost of fulfilling the gap between the desired
and actual product/service quality
 Cost of lost opportunity due to resources used
to rectify the defect
Sigma COPQ
 Labor, rework, disposition, Level (of Sales)
and material costs spent up to 3 25-40%
the point of rejection 4 15-25%
 Appraisal, Internal Failure, 5 5-15%
6 <1%
Prevention, External Failure
166

167. The Scientific Method
 Observe a marketplace or
business environment aspect
 Conjecture a working hypothesis
 Make predictions based on hypothesis.
 Test predictions by conducting experiments or
making more observations. Use statistical tools to
help separate information from noise.
 Modify hypothesis inductively & empirically.
 Repeat last three steps until “no” discrepancies
“Show me the data” attitude prevails
167

168. Who Does What?
 Champions and Sponsors
– Select best projects for corporate objectives and
implement with support and eliminating barriers
 Master Black Belts (1 per 1,000 employees)
– Understands theory, trains, & leads project reviews
 Black Belts (20 per Master, 6-7 projects)
– Hands-on project leadership and execution
– Train and mentor the local organization
 Green Belts (5-10% of time,
– Deliver successful focused departmental projects
168

169. Information Overload
 Not all information is valuable
– 2/3 of managers report stress from too much info
– 2/3 state relationships suffer from too much info
– 1/2 suffer from ill heath due to too much info
– 1/2 state decisions are delayed while costs are too
high from too much information
– Most claim only about 6 metrics really matter
 Defect focus can hinder innovation and is
often at the cost of a system view and quality
169

170. What Knowledge is Required?
 College-level Mathematics and Statistics
– Proficient in at least one Statistical Package
 Strong Technology Orientation
– One or more OS's and Multiple DBMSs
– Office Automation and Groupware Software
 Project and Quality Management
 Supply Chain and Lean Manufacturing
 Organizational Psychology and How to
Attract, Reward, and Retain Employees
 Communication and Teaching Skills
170

171. Semi-annual Black Belt Reviews
 Technical Application (20%), by Masters
– Project planning / management, use of tools,
documentation, process mapping, gateway
reviews, control plans, methodology execution
 Project Success (40%), by Sponsors
– On time, deliverables are easy to implement and
support, certified, and number (1 for in-training, 2
for graduates, 3-4 for experienced)
 Leadership (40%), by Sponsors
– Challenging, enabling, modeling, encouraging
171

172. Deliverable: Summary Report
IEC Presentation / Summary Report Outline
 Savings Upon
 Title Implementation
 Team Roster – Cost to Implement
 Problem Statement – Annual Savings
 Objective » 1st, 2nd year
 Primary/Secondary
Metrics  Implementation Plan
 Key conclusions – Key Milestones
– Measure – Completion dates
– Analyze – Responsibilities
 Recommendation  Necessary Approvals
 Impact on  Authorization to
Orders/Procedures Proceed
172

173. Why Does It Fail?
1. Management missing faith in employees
2. Long-term, risk-adverse culture
3. Benefits are not shared (mostly at the top)
4. Failure to “walk the talk” for a set of
common values
 Intensity is no substitute for integrity
5. Insufficient and/or undirected training
6. No well-articulated vision
173

174. Deliverable: Back Up Information
Implementation
Schedule
Improve & Control Plan
PBL Plan
Cost Estimate Backup
Bases/Qualification/Assumptions
Detailed Estimate
(Implementation Costs
and Yearly Savings)
Measure & Analyze: Analysis of improvement
between “as is” and “should be”, fishbones,
paretos, xy matrix, FMEA, Gage R&R,
Statistical backup
Process Maps
“as is” and “should be”
Summary
Report
174

175. 175

176. Continuous Measurable
Improvement is Key
 Optimized
– Continuous process improvement is enabled by
quantitative feedback from the process and from
piloting innovative ideas and technologies.
 Repeatable
– The software processes for management and
engineering activities is documented,
standardized, and integrated for the organization.
Basic project management processes are used to
track cost, schedule, and functionality.
176

177. Use a Structured Framework
3. Establish OPI Plan
4. Identify All Projects
5. Provide Executive Level
Program “Awareness”
6. Conduct CSWP Awareness
Training
7. Conduct Workshops
8. Select Candidate Projects for
Assessment
9. Conduct Project KPA
Completeness Class
1. Establish Management 10. Establish & Implement
Commitment & Goals Project Action Plans
2. Define Process 11. Update Tailor Reports
Improvement Roles and 12. Plan, Prepare, Conduct for
Responsibilities Next Improv. Cycle
177

178. Perfectionists are not perfect
 80% efficient call centers are best
– Allow for breaks and vacations
– Allow for training and time management
 Last 5% usually takes the greatest effort and
so often does not produce a return on the
time and capital invested => quality is about
knowing when to declare victory
 Just paying more to work in a hostile
environment merely produces burn-outs
178

179. Use Process Measurement Metrics
(But, do not use them for reward or punishment)
 Financial (or Project Value) Metrics
 Product (or Systems) Metrics
– Size (LOC, Function Points, Etc.); Number of
Defects; Effort (Person-hour); Complexity;
 Customer Satisfaction Metrics
– Check Customer Priorities for Quality Aspects
– Brand Name and Advertising Responses
 Process (or Leadership) Metrics
– Intermediate Work Products and Records (Test
Results or Compare Time to Fix a Bug / Predicted)
179 – CPI (Cost Performance Index) / SPI (close to 1.0)

180. Focus on Flow of Value
Cumulative Flow
240
220
200
180
Control height of
Features
160 work in progress
140
120
100
80
60
40
20 Value measured
0 on completion
2-Mar
9-Mar
16-Mar
10-Feb
17-Feb
24-Feb
Time
Backlog Started Designed Tested Complete
180 David J. Anderson, Managing with Cumulative Flow, 2004

181. Quality Problem, Go to the MAT!
 Metrics Action Team (MAT) Goals
– Define and Measure the Best Practices
– Identify and Acquire the Best Equipment
– Get and Promote the Best People
 Focus Efforts on Key Process Areas
– Process Change Management
– Product Quality Management
– Product Configuration Management
– Peer Reviews
181

182. Description of the Ideal MAT
 Any Employee Can Submit Change Requests
 MAT Consists of All Functional Managers
 Meets Once a Month to Review All Reports
 Able to Step Back and Do Independent Reviews
to Uncover Key Program and Systemic
Corporate Issues
 Output Is an Update Issues Report to the
Executive Team and Program Management
 Changes Organizational Decision Making
182