5 Questions with Mike Pecoraro of Leap Technolgies
Making Lean Six Sigma Work
Mike Pecoraro helped start Leap Technologies in 1993. Since then his team has led more than 4500 rapid improvement
projects, including working with RapidChange on projects with NewPage Corp.
(see story). Leap has perfected a reliable, cost-effective and remarkably
easy-to-use process for improving organization performance in 60 to 90
day "sprints". His approach meshes extremely well with RapidChange tools, making the NewPage engagement an industry landmark.
Lean SIx Sigma is a powerful business tool. But without the right buy-in, engagement and processes, many companies fail to reap the benefits. We asked Mike to answer the five questions we've recently had from RapidChange clients and potential clients about L6S.
How to create a sense of urgency
1. We're a family-owned company that has done things the same way for years. Our employees have been with us a long time and know their jobs. I'm the next family member in line to run the firm and I know we have to be much more efficient to compete globally. How do you go about convincing people that Lean Six Sigma is worth the effort - even if we're not dying today? Mike: Great question. First, I applaud you for taking a proactive approach to running your business. This is an issue many firms have faced … how to create a sense of urgency to get the attention of all employees.
There is no “one right answer” to this question. A lot of it depends upon your culture. Several things to keep in mind include: acknowledge and recognizing that employees fear what they don’t know.
1. Clearly articulate why you want to launch a LSS effort. You can anticipate the questions on your employees’ minds and address them in the form of “frequently asked questions or a Q & A”.
2. include in your “pitch” to employees the answer to this question … What is in it for them? Launching a LSS effort must include something for everyone at all levels of the organization. If you can’t appeal to all stakeholders, the effort will not be sustainable.
How to restart a stalled initiative2. One of the biggest hurdles we face is that our Lean Six Sigma program has become an Us vs. Them, or Black Belts vs. Workers, battle. Is it best just to walk away from L6S for awhile and try again in a couple years or are there ways to re-start a program? Mike: This is not an issue unique to your company. It is much more difficult to overcome this issue than it is to start your LSS effort off on the right foot. With that said, here is some food for thought … What are the specifics contributing to the Us vs. Them mentality (compensation, awards, etc.)? If there are some obvious issues like these, they need to be fixed. However, in my experience, the Us vs. Them mentality is created by a lack of engagement. Workers do not feel engaged. This can be overcome by increasing the engagement of day-to-day workers in improvement projects, etc. This does not mean putting all employees through training. It does mean involving employees in meaningful improvement projects. There are lots of ways to do this productively without breaking the bank.
How to adapt L6S learnings to other sectors3. We're a service company. Is there any way to make Lean Six Sigma easier for the non-engineers and non-manufacturing types to understand and use on a daily basis? Mike: Absolutely. Many service and transaction based companies and most healthcare organizations have already figured this out. I can’t get into all of the details here, but the short answer is to “take the Lean Path to Lean Six Sigma”.
The Lean Path includes these five elements:
1. Engage and train employees on a just in time basis
2. Don’t treat all problems the same. Use multiple toolsets (the right tool for the right problem) and use a standard project management discipline (reserved the deep dive statistics for the vital few project opportunities that require them – typically less than 10% of all project opportunities)
3. Use a “step-ladder” approach to Belt development. Allow Belts to grow into their role by demonstrating success on simpler Rapid Action project first before advancing up the ladder to tougher projects and more advanced tools
4. Operate in “rapid” timeframes for project completions. Set expectations for completing all projects in 90 days or less and finally
5. Engage leadership from start to finish.
Several great White Papers have been written on this subject … refer to The Lean Path to Lean Six Sigma. It takes the mystery out of LSS and recommends a practical approach to deploying LSS in non-engineering / non-manufacturing companies.
How to tell if your company is a good L6S candidate4. We've read where only 19 percent of companies who try Lean Six Sigma are successful. Are there company characteristics or personality traits we should look for to see if we're a candidate to be one of the 19 percent instead of one of the 81 percent? Mike: The keys to driving LSS return on investment and ultimate success include these five characteristics:
1. Aligned and focused project selection (i.e. picking projects that align with strategy and key goals),
2. High Belt effectiveness (i.e. ability to complete projects in rapid timeframes – 3 months instead of the 6 to 9 month or longer norm),
3. The ability to engage employees at all levels of the organization in improvement projects (not just the Belts),
4. The ability to “replicate” solutions (standardize and spread best practices).
5. The ability to transfer ownership for solutions to line management to sustain the gains made by improvement teams. This means identifying a local process owner responsible for tracking and reporting process performance on a regular basis.
For example, a team of nurses was assembled to reduce after shift reporting overtime and established a set of 10 standard practices for all nursing units to follow to reduce overtime. Once piloted and proven to work, Nurse Managers on each floor were identified as Process Owners and were responsible for monitoring and tracking performance. Nurse Managers reported on key overtime metrics (along with all of their peers) at the monthly nurse manager meeting. After several months, the practices were fully integrated and performance was sustained.
Unfortunately, these are characteristics that few companies have. The good news is that they can be developed and should be an integral part of any LSS Deployment.
How to make it happen fast 5. My company doesn't have three years or five years to be successful with L6S. What's the fastest way to get meaningful results? Mike: The three to five year time horizon is a myth propagated by some consultants and many deployment leaders to buy time and avoid being held accountable for results. Yes, LSS in a “journey” but meaningful results can be achieved in most deployments within a year.
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