Support from the Top to Drive Commitment & Value Across the Organization

B R E A K T H R O U G H M A N A G E M E N T G R O U P B R E A K T H R O U G H M A N A G E M E N T G R O U P

BMGBMGTMTM

BREAKTHROUGH MANAGEMENT GROUP

Support from the Top to Drive Commitment & Value Across the

OrganizationBrian A. Watson, Ph.D.

Vice President, Product Development(908)623-0686

[email protected]

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Outline

Begin with the End in Mind Why is Commitment So Hard? Create the Need Set the Right Expectations Get Involved Measure Performance Plan for Success

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Begin with the End in Mind!

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Why is Commitment So Hard?

System Dynamics May Limit DFSS Implementation Effectiveness

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Turf Wars!

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Create the Need

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Create the Need

Be Open & Honest about your Existing Product Development Process

Customer

Customer

CTO

Product Mgr

Customer

COO

Official Process

CEO

Good Idea?CEO Sell Product

Fast Track

No

Yes

yes

Sales

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Create the Need

Simulate the Current Chaos

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Set the Right Expectations

Reduce Variation then Shift the Mean

Observation

Indi

vidu

al V

alue

8273645546372819101

400

300

200

100

0

_X=68.6UCL=108.3

LCL=29.0

a b c1

I Chart of Days by Phase

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Setting the Right Expectations

Time

# Adopted

Inno

vato

r

Early

Ado

pter

Lagg

ard

Early

Maj

ority

Late

Maj

ority

Patience is a Virtue!

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Get Involved

"It is not the critic who counts, not the man who points out how the strong man stumbled, or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena; whose face is marred by the dust and sweat and blood; who strives valiantly; who errs and

comes short again and again; who knows the great enthusiasms, the great devotions and spends himself in a

worthy course; who at the best, knows in the end the triumph of high achievement, and who, at worst, if he fails,

at least fails while daring greatly; so that his place shall never be with those cold and timid souls who know neither

victory or defeat."

Theodore Roosevelt Speech at the Sorbonne

April 23, 1910

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Get Involved

“Superabrasives…used Six Sigma to quadruple its ROI [and generated] a decade’s worth of capacity without spending a nickel on P&E…”

Lead a DFSS Project

1997 GE Annual Report

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Get Involved

Great Leaders are Great Teachers Winning Leaders Make Teaching a Personal

Priority Winners have a Teachable Point of view

Teach!

The Leadership EngineNoel Tichy

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Measure Performance

Measure Product & Service Capability

Service#

Requirements Total OppsService

DPUService DPMO

Service RTY

Service Zst

1 Loan Approval Process 4 8 0.316752 39594.04 72.85% 3.262 Loan Payment 2 2 0.397879 198939.7 67.17% 2.353 Regulatory Compliance 2 33 0.01001 303.3333 99.00% 4.934 Customer Inquiry 2 2 0.155399 77699.61 85.61% 2.925 Loan Payoff Notification 2 4 0.054 13500 94.74% 3.716789

10OVERALL 12 49 0.9340 19062.06 39.30% 3.57

OVERALL PERFORMANCE SCORECARD

Consumer LoansOperation

Date: 9/1/2002Prepared by: A. B. Smith

Abi

lene

Bra

nch

Dal

las

Bra

nch

Hou

ston

Bra

nch

Lare

do B

ranc

h

San

Ant

onio

Bra

nch

Wac

o B

ranc

h

Req

uire

men

ts Z

st

Decision Cycletime 3.29 5.54 3.26 3.86 4.50 5.90 3.56Funding Cycletime 2.78 2.49 4.32 5.08 3.54 2.85 2.89Account Accuracy 2.39 2.05 2.44 3.72 3.79 4.67 2.51Amount Accuracy 1.37 2.28 5.49 0.08 2.66 4.24 1.31SERVICE Zst 2.27 2.46 3.11 2.22 3.26 3.49 2.66

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Measure Performance

Measure & Reward People Performance

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Plan for Success

Projects Right

The Right Projects

Successful Product Development is all about…

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Keys to “Doing the Right Projects”

Strategy Product development

projects must be linked to your corporate strategy.

Project Prioritization Process A robust selection

process to pick the right projects must be in place.

Superior Benefits Products selected for

development must deliver unique benefits to the user.

0

20

40

60

80

100

Success Rate (%) Market Share (%)

Me-TooSuperiorModerate

Advantage

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“Doing projects Right” CSF’s

A Robust Design Process Stresses Upfront

Homework Defines the Product or

Service before development begins

Continuously listens to the Voice of the Customer

Has rigorous tollgate reviews

Executes with high quality0

102030405060708090

Succ

ess

Rat

e (%

)

Poor

HomeworkModerate

HomeworkExcellent

Homework

Solid Upfront Homework can DOUBLE your Success Rate!Reference: Cooper & Edgett “Product Development in the Service Sector”

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Keys to “Doing projects Right”

Average

Value-Added

Time on

Design

Tasks

Number of Projects per Developer

100%

80%

60%

40%

0%

20%

65431 2

Reference: IBM Development Efficiency Study

Resource Allocation is Critical

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Plan for Success

Launch DFSS as a Process Improvement Effort

Control Improve Analyze MeasureDefine

Define Problem

Define NPD CTQs

Map AS-IS NPD Process

Measure NPD Performance

Analyze NPD Gaps

Analyze DMADV

Methodology

Re-configure NPD Process

Integrate DMADV into NPD Process

Roll out new NPD Process

Launch NPD Projects

Training & Coaching

Measure NPD Performance

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Plan for Success

Integrate DFSS into your Stage Gate Process

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Summary

Begin with the End in Mind Commitment is Hard? Create the Need Set the Right Expectations Get Involved Measure Performance Plan for Success

Documents

Support from the Top to Drive Commitment & Value Across the Organization