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Six Sigma Maturity Model

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DOCUMENT DESCRIPTION

As organizations adopt and deploy Six Sigma, they go through 5 stages of maturity, outlined in the Six Sigma Maturity Model. The intent of the model is to help Six Sigma practitioners, deployment leaders, and executives:

* Benchmark where their companies stand in relation to broader patterns experienced by other organizations.
* Assess the areas of strength and performance gaps in their deployments.
* Pinpoint specific steps they might take to close gaps and graduate to the next stage of their Six Sigma journey.
* Communicate progress to their Six Sigma teams and to the broader community within their companies to garner support for their continuous improvement efforts.

This presentation provides a high level overview to the Six Sigma Maturity Model. This model is designed as a general guideline, not a prescriptive roadmap for Six Sigma implementation.

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Six Sigma Maturity Model

  1. 1. 6σ This is an exclusive document to the FlevyPro community - http://flevy.com/pro Framework Primer Six Sigma Maturity Model Presentation created by Launch Early Success Scale Replication Institution- alization Culture Trans. 1 2 3 4 5
  2. 2. 2This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Contents Six Sigma Maturity Model: Culture Transformation Six Sigma Maturity Model: Institutionalization Six Sigma Maturity Model: Scale and Replication Six Sigma Maturity Model: Early Success Six Sigma Maturity Model: Launch 5 Stages of the Six Sigma Maturity Model Overview The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  3. 3. 3This document is an exclusive document available to FlevyPro members - http://flevy.com/pro The Six Sigma Maturity Model outlines 5 stages evolutionary stages of maturity and aids practitioners, deployment leaders, and executives Presentation Overview As organizations adopt and deploy Six Sigma, they go through 5 stages of maturity, outlined in the Six Sigma Maturity Model. The intent of the model is to help Six Sigma practitioners, deployment leaders, and executives: • Benchmark where their companies stand in relation to broader patterns experienced by other organizations. • Assess the areas of strength and performance gaps in their deployments. • Pinpoint specific steps they might take to close gaps and graduate to the next stage of their Six Sigma journey. • Communicate progress to their Six Sigma teams and to the broader community within their companies to garner support for their continuous improvement efforts. This model is designed as a general guideline, not a prescriptive roadmap for Six Sigma implementation. The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  4. 4. 4This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Organizations go through 5 stages of maturity in Six Sigma adoption and development 5 Stages of the Six Sigma Maturity Model LaunchLaunch 1 Early Success Early Success 2 Scale and Replication Scale and Replication 3 Institutionali- zation Institutionali- zation 4 Culture Transformation Culture Transformation 5 • An initial few visionaries in the organization launch Six Sigma—training is initiated and projects are begun • The initial projects are yielding results and early successes are being achieved • The early success has led to other parts of the organization buying in to Six Sigma and a broader launch of projects is under way • Throughout many parts of the company, projects are yielding broad-based financial impact • By now, Six Sigma is part of the organizational DNA, financial impact is sustained, and the Six Sigma culture is pervasive The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  5. 5. 5This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Here, we outline each of the 5 levels along 10 axes and describe the evolution of the organization along these axes 5 Stages of the Six Sigma Maturity Model – 10 Axes Leadership Support Training People Project Selection Financial Impact Reporting Software Strategy Maturing Beyond DMAIC Culture Change Level 5 Ingrained Internal, Specialty Majority Formalized Eval. General Ledger Multi-year History Strategy & Portfolio Full Closed Loop IT, Product Dev. DNA of Org. Culture Transformation Level 4 Expected Internal, e-learning Repatriated Idea Pipeline Validation Cross-org. Comps. Portfolio Mgmt. Project Roll-up DFS, Lean Institutionali- zation Level 3 Across Company External, Custom Career Dev. Copy Success Consistency, EP Aggregate, Avg. Project Tracking Maps, Goals Scale and Replication Level 2 Validated External More Believers Low Hanging Cost Reduction Aggregate, Avg. Excel, Stats Early Success Level 2 1 or 2 Visionaries Champion, Exec. Driven Few Burning Platform Ad hoc Anecdotal Launch 3-9 months 6-18 months 12-36 months 24-48+ months 1 2 3 4 5 The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  6. 6. 6This document is an exclusive document available to FlevyPro members - http://flevy.com/pro In the first stage, Six Sigma is launched within the organization Launch – Overview Launch Early Success Scale Replication Institution- alization Culture Trans. DESCRIPTION Six Sigma is launched within an enterprise. The launch can be top- down or bottom-up, but launches are generally quicker and more successful when they are top-down. The launch usually occurs with the help of an external consulting and training firm. Consultants typically preside over initial executive and Champion sessions designed to establish the potential impacts of Six Sigma on business operations, revenues, costs and the company culture. There is buy-in to start the initial training sessions to get a core group of Black Belts and Master Black Belts who will lead the initial projects. Organizations generally appoint a vice president or director of Six Sigma who reports to an executive sponsor and whose charter is to ensure a successful deployment of Six Sigma. In bottom-up launches, there may not be as much senior executive involvement; support may only exist at a divisional level. To ensure that the initial team executing the Six Sigma effort has the necessary support in the organization, and to ensure proper project selection in order to drive successes at the next level Key Challenges This level typically lasts between three and nine months An organization moves to the next level when initial training is completed and the first set of projects is under way, although not yet completed Duration and Next Level The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  7. 7. 7This document is an exclusive document available to FlevyPro members - http://flevy.com/pro The Launch Axes include Leadership Support, Training, People, Project Selection, Financial Impact, and Reporting Launch – Characteristics of Axes Launch Early Success Scale Replication Institution- alization Culture Trans. Leadership Support • Initial visionaries needed to provide impetus for adoption—top-down or bottom-up Training • Executive buy-in via external trainers; Champion training; initial Black Belts identified and trained People • A few driven believers—rest of the organization is mostly skeptical Project Selection • Usually a burning platform provides focus; but need to avoid “boiling the ocean”— need to manage excessive expectations Financial Impact • Ad hoc examples • No projects completed Reporting • Anecdotal evidence • No projects completed The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  8. 8. 8This document is an exclusive document available to FlevyPro members - http://flevy.com/pro In the second stage, early Six Sigma success is demonstrated—initial projects are well underway and may have been completed Early Success – Overview Launch Early Success Scale Replication Institution- alization Culture Trans. DESCRIPTION At this level, the initial projects are well under way and many have been completed. Improvements have already demonstrated significant financial and other impacts. The support that was given to the initial team is being validated by the early results. This is a critical “show me” stage, where it is important for the early successes to be made visible so the rest of the organization can see the real impact from Six Sigma. This is where the ambiguity and uncertainty about the potential business impact of Six Sigma are replaced by proven, relevant examples of business problems faced by the company and addressed by the successful application of Six Sigma. To ensure that projects are completed in a reasonable time and that they have meaningful financial impact on the business. Key Challenges Typical companies stay at this level for between six and 18 months A company moves to the next level of Six Sigma maturity when the initial successes have led to the other organizations in the company beginning to adopt Six Sigma Duration and Next Level The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  9. 9. 9This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Early Success Axes includes the additional axis of Software Early Success – Characteristics of Axes Launch Early Success Scale Replication Institution- alization Culture Trans. Leadership Support • The initial projects that are completed validate the vision of the leadership Training • A few waves are completed, usually still external People • Initial results are helpful; but most of the organization still waiting to see if this will affect them Project Selection • Low-hanging fruit (easy to identify projects that will yield significant results) are plentiful Reporting • No consistency yet, no roll- ups because number of projects is still small Software • Focus is on statistical tools for the Belts Financial Impact • Initial results are having some impact; usually focused on cost reduction The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  10. 10. 10This document is an exclusive document available to FlevyPro members - http://flevy.com/pro By now, the company has already experienced solid success—the focus is to Scale and Replicate the Six Sigma effort across the company Scale & Replication – Overview Launch Early Success Scale Replication Institution- alization Culture Trans. DESCRIPTION At this level, the company has experienced solid success from the initial deployment, and other parts of the company are buying into Six Sigma. This is the stage where the Six Sigma effort really scales across the company and gathers momentum. Many waves of training are in progress across many parts of the company. Projects are being pursued in multiple organizations (divisions, plants, units, etc.). To ensure that the methodology is consistently applied in other parts of the company, and to ensure that financial impact and results are replicated It is important to have a strong deployment leader for the company who ensures consistency of methodology and results Key Challenges The Scale/Replication level typically lasts for between one and three years A company goes to the next level when significant financial results have come in throughout the various organizations in the company and significant financial impact is being reported company-wide Duration and Next LevelThe content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  11. 11. 11This document is an exclusive document available to FlevyPro members - http://flevy.com/pro The Scale & Replication Axes includes the added axis of Strategy Maturity Scale & Replication – Axes of Launch Launch Early Success Scale Replication Institution- alization Culture Trans. Leadership Support • Decision to drive Six Sigma throughout the company; leadership across the company buys in Training • Many waves across the company; often external trainers; content is customized to the company People • Six Sigma now seen as a career development path; change agents throughout the organization see a platform that works Project Selection • Usually replication of the patterns of success already done (similar projects for similar problems in plants/distribution centers, etc.) Financial Impact • Consistent measures of impact are in place Reporting • Enough projects completed so that average impact per project, per Belt, etc. can be predicted; aggregate impact across the organization is significant Software • Software goes beyond statistical tools to project tracking; consistent application of methodology and financial impact reporting is ensured Strategy Maturity • Creation of strategy maps to ensure that the mass of projects under way are aligned with corporate and organizational priorities The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  12. 12. 12This document is an exclusive document available to FlevyPro members - http://flevy.com/pro By the fourth stage, Six Sigma processes have become institutionalized throughout the company Institutionalization – Overview Launch Early Success Scale Replication Institution- alization Culture Trans. DESCRIPTION At this level, it is not just replication of the success of another organization, but replication of the success within each organization in the company. There is enough financial impact from projects in each organization that meaningful comparisons can be made between organizations on average project impact, average cycle time, total impact, etc. The Six Sigma processes have become institutionalized throughout the company. To set up consistent processes for Six Sigma execution—e.g., consistency should be achieved in areas such as project selection and scoring, approvals, financial impact measurement and validation, project execution roadmaps, reports, Belt training, etc. This should be pursued while allowing for controlled variation in different parts of the company, ranging, for example, from manufacturing to transaction-heavy organizations. Key Challenges The institutionalization level can last from between two and four years, or more A company progress to the next level after multiple years of company-wide adoption of Six Sigma leading to Six Sigma being embedded throughout all parts of the company Duration and Next Level The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  13. 13. 13This document is an exclusive document available to FlevyPro members - http://flevy.com/pro The Institutionalization Axes includes the additional axis of going Beyond DMAIC (which includes DFSS, Lean, Kaizen, Hoshin Kanri, Gemba, etc.) Institutionalization – Axes of Launch Launch Early Success Scale Replication Institution- alization Culture Trans. Leadership Support • Top leadership across the business units, geographies and divisions are all expected to be Six Sigma supporters Training • Very large scale; usually internalized, use of in-house Master Black Belts as trainers; e-learning is used for scale People • Initial Black Belt waves have been repatriated, with enhanced career prospects and positions in the organization Project Selection • Formal idea- generation/evaluation process in place to ensure continued flow of meaningful projects; no more low- hanging fruit Financial Impact • Strict controls in place to ensure validation of results; measures evolve to include revenue impact Reporting • Comparison of results for each organizational unit; aggregate corporate-wide results are reported Software • Project tracking typically evolves to include knowledge management and portfolio management Strategy Maturity • Strategy maps at corporate and organizational level; going beyond alignment, to actually launch projects to impact the strategic goals Beyond DMAIC • DMAIC is mastered; but DFSS, Lean, Kaizen, etc. also are integral parts of the organization The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  14. 14. 14This document is an exclusive document available to FlevyPro members - http://flevy.com/pro By the final stage, Six Sigma is embedded into the company DNA—it has also been applied to the “extended enterprise” Culture Transformation – Overview Launch Early Success Scale Replication Institution- alization Culture Trans. DESCRIPTION At this level, the company has had sustained success with Six Sigma for a long period. Six Sigma is embedded in the company DNA. “Six Sigma is the way we do business” is truly practiced. The methodologies of Six Sigma are applied not just to Six Sigma projects and by people trained in Six Sigma, but throughout all execution processes. Six Sigma also has been applied to the “extended enterprise”– customers, vendors, distribution chain, and supply chain—for mutual benefit. The culture is data-driven, process- and metrics-oriented and focused on financial impact. To continue to keep Six Sigma fresh and to innovate in the new areas where it can be applied as the company inevitably goes through natural business cycles of growth, threat, acquisitions, etc. Key Challenges There is no end-point or duration at this level. Duration and Next Level The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  15. 15. 15This document is an exclusive document available to FlevyPro members - http://flevy.com/pro We now have all 10 Axes involved—which includes the last axis of Culture Change Culture Transformation – Axes of Launch Launch Early Success Scale Replication Institution- alization Culture Trans. Leadership Support • Top leadership across the business units, geographies and divisions are all expected to be Six Sigma supporters Training • Very large scale; usually internalized, use of in-house Master Black Belts as trainers; e- learning is used for scale People • Initial Black Belt waves have been repatriated, have risen in career stature and positions in the organization Project Selection • Formal idea-generation/evaluation process in place to ensure continued flow of meaningful projects Financial Impact • Strict controls in place to ensure validation of results; measures include revenue impact Reporting • Comparison of results for each organizational unit routinely done; aggregate corporate-wide results are reported Software • Integrated portfolio and strategy management across the enterprise; replacement of legacy applications by vendors Strategy Maturity • Full closed-loop of strategy, to projects, to roll-up of project results, to organization’s strategic goals Beyond DMAIC • Six Sigma is being applied in spirit to all project portfolios – new products, IT projects Culture Change • Entire organization operates at a higher performance level; Six Sigma embedded in culture; extends to customers, vendors, supply chain, distribution chain The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  16. 16. 16This document is an exclusive document available to FlevyPro members - http://flevy.com/pro This presentation was created by PPT Lab. PPT Lab is a PowerPoint design firm specializing in consulting-quality presentations. View our available presentations on Flevy here: https://flevy.com/seller/PPTLab The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  17. 17. 17This document is an exclusive document available to FlevyPro members - http://flevy.com/pro Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries support@flevy.com • Media/PR press@flevy.com • Billing billing@flevy.com The content on this page has been partially hidden. FlevyPro members can download the full document here: http://flevy.com/browse/flevypro/six-sigma-maturity-model-2469
  18. 18. 1 Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries support@flevy.com • Media/PR press@flevy.com • Billing billing@flevy.com

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