Corporate Sigma: Optimizing the Health of Your Company with Systems Thinking

by El-Homsi; Anwar

• ISBN13: 9781439803943
• ISBN10: 1439803943
• Edition: 1st
• Format: Hardcover
• Copyright: 2009-12-21
• Publisher: Productivity Pr

Summary

Proposing that corporations, like human bodies, have vital systems that must be cared for, this book outlines how to monitor these vital organs in a corporation. It provides a roadmap for leaders to plot a course from where they are now, to where they want to be. It begins by describing how leaders formulate effective organizational vision, mission and values, how to foster and nurture shared organizational vision to succeed, and how to clearly define strategic balanced business objectives. The book identifies the function of organizational departments and shows how to assess the quality level or health of these departments using both Lean and Six Sigma improvement tools.

Table of Contents

Foreword	p. xv
Acknowledgments	p. xvii
Introduction: Taking Charge	p. xix
Leadership Sigma: The Brain	p. 1
Leadership and Management	p. 3
Purpose of Leadership	p. 3
Importance of Leadership	p. 4
Core Competencies for Successful Leadership	p. 5
Leadership Core Competencies	p. 6
Strong Interpersonal Skills	p. 6
Personal Qualities	p. 7
Technical Knowledge	p. 9
Leadership Tasks	p. 11
Assess How the Organization Functions	p. 11
Know the Organization's Objectives	p. 11
Determine How the Organization Can Achieve Its Objectives and Improve	p. 11
Have a Vision for What the Organization Should Become	p. 11
Infuse Leadership Qualities into the Organization	p. 12
Improving Leadership	p. 12
Developing Leadership	p. 13
Leadership and Systems Thinking	p. 14
Notes	p. 15
Corporate Beliefs: The Soul	p. 17
Corporate Culture	p. 18
Organizational Mission	p. 20
Organizational Core Values	p. 21
Organizational Vision	p. 26
Shared Vision - The Secret	p. 28
Notes	p. 30
The Road to Corporate Wellness	p. 33
Corporate Balanced Scorecard	p. 34
The Four Perspectives	p. 36
Financial Perspective	p. 36
External Perspective	p. 37
Internal Perspective	p. 38
Learning and Growth Perspective	p. 38
Corporate Critical Success Factors	p. 39
Corporate Objectives	p. 40
Corporate Performance Measures	p. 41
Corporate Targets	p. 41
Corporate Improvement Actions	p. 41
Strategic Alignment by Cascading the Balanced Scorecard	p. 41
Strategy Map	p. 44
Case Study: Acme Circuits	p. 44
Acme Circuits' Corporate Balanced Scorecard	p. 44
Acme Circuits' Strategic Map	p. 45
Notes	p. 51
Human Capital: The Heart	p. 53
Employee Satisfaction	p. 54
Personal Balanced Scorecards	p. 56
Personal Vision	p. 57
Personal Mission	p. 58
Personal Key Roles	p. 59
Personal Critical Success Factors	p. 60
Personal Objectives	p. 61
Personal Performance Measures	p. 62
Personal Targets	p. 62
Personal Improvement Actions	p. 62
Notes	p. 70
Becoming Lean: Trimming the Fat	p. 71
Brief History of Lean	p. 72
Elimination of Waste	p. 75
Lean Principles	p. 79
Lean as a Business System	p. 82
Other Essential Lean Tools	p. 84
Cellular Manufacturing	p. 84
Production Smoothing	p. 86
Standardized Work	p. 86
Total Productive Maintenance (TPM)	p. 87
Business Philosophy for Lean	p. 89
Other Resources	p. 90
Notes	p. 91
Six Sigma Protocol: The Medicine	p. 93
Brief History of Six Sigma	p. 93
What Is Six Sigma?	p. 95
DMAIC Model	p. 95
Define Phase	p. 96
Measure Phase	p. 99
Analyze Phase	p. 100
Improve Phase	p. 100
Control Phase	p. 101
Process Capability Study	p. 102
Six Sigma Metrics	p. 103
Process Shift	p. 105
Types of Metrics	p. 106
Defect per Unit (DPU)	p. 106
Rolled DPU	p. 107
Defect per Million Opportunities (DPMO)	p. 107
Counting Opportunities	p. 108
Six Sigma Infrastructure	p. 109
Role of Executive Management	p. 110
Role of Champions	p. 111
Role of Finance	p. 111
Role of Master Black Belts	p. 111
Role of Black Belts	p. 112
Role of Green Belts	p. 112
Role of Project Team Members	p. 113
Lean Six Sigma: A Perfect Marriage	p. 113
Systems Thinking: The Prescription for Corporate Arrhythmias	p. 115
Systems Thinking: A Better Solution	p. 116
Systems Thinking and Statistical Thinking	p. 118
Types of Problems Systems Thinking Can Help Solve	p. 118
Systems Thinking Tools and Language	p. 120
Creating Causal Loop Diagrams	p. 123
CLD Elements	p. 123
Variables	p. 124
Connections	p. 125
Signs	p. 125
Voice of the System	p. 127
Modeling Hierarchy	p. 128
Knowledge Networking: The Big Picture	p. 129
How to Create a Connection Matrix	p. 131
Event Pattern Inference	p. 133
Input and Connection Policies	p. 137
Simulation	p. 137
Policy Status	p. 139
Leverage Variables	p. 141
Practical Application of CLD Models	p. 144
Product Line Profit	p. 144
Policy Evaluation (Policy Scores)	p. 145
Sick Call-In Reduction	p. 148
Things to Consider before Acting	p. 150
Notes	p. 151
The Corporate System	p. 153
Systems Engineering Steps	p. 154
Step 1: Identify the Stakeholders and Elicit Their Needs	p. 154
Step 2: Translate the Needs into a Set of System Requirements	p. 155
Serial Systems	p. 160
Parallel Systems	p. 161
Mixed Systems	p. 163
Step 3: Define the Bounds of the System to Be Developed	p. 164
Step 4: Define the Functions That the System Must Perform to Transform the Inputs into Outputs	p. 164
Step 5: Determine the "Best" Technology with Which to Implement the Functions	p. 166
Systems Engineering Applied to Human Systems	p. l67
Step 1: An Intense Focus on Identifying the Stakeholders and Eliciting Their Needs	p. 167
Step 2: Translate the Needs into a Set of Overall Corporate-Level Output Requirements	p. 169
Step 3: Define the Bounds of the Corporation	p. 170
Step 4: Define the Functions That the System Must Perform to Transform the Inputs into Outputs	p. 171
Step 5: Determine the "Best" Technology with Which to Implement the Functions	p. 172
Systems Engineering a Healthy Company	p. 172
Notes	p. 173
Conception and Development	p. 175
Inbound Marketing - The Ears of the Organization	p. 176
Identify the Stakeholders	p. 176
Elicit the Stakeholder Needs	p. 177
Opportunities for Success or Failure of Inbound Marketing	p. 181
Technology Development - Cellular Growth	p. 182
Technology Development for Six Sigma	p. 184
Opportunities for Success or Failure of Technology Development	p. 188
Product Development - The DNA of the Organization	p. 188
Design for Six Sigma	p. 189
Opportunities for Success or Failure of Product Development	p. 192
Innovation: Evolution	p. 196
Corporate Functions and Six Sigma	p. 201
Notes	p. 201
Sensory Systems: The Critical Role of Information Technology and Human Resources	p. 203
IT Sigma: The Nervous System	p. 204
Management Commitment to IT Sigma	p. 204
IT Sigma Quality Management and Improvement Methodology	p. 206
IT Sigma Business Case	p. 207
IT Sigma Project Selection	p. 209
Step 1: BPS Process Identification	p. 209
Step 2: BPS Process Relationships	p. 209
Step 3: IT Sigma Project Selection	p. 210
IT Sigma Project Execution	p. 211
IT Sigma Playbook	p. 211
HR Sigma: The Five Senses	p. 217
Strategic Planning	p. 217
Operations	p. 218
Administrative	p. 219
Notes	p. 222
Corporate Wellness: The Physical	p. 223
The Corporate CAT Scan	p. 224
Series Systems	p. 225
Parallel Systems	p. 227
Corporate Systems	p. 228
Scanning Serial Processes	p. 228
Scanning Parallel Systems	p. 231
Combination of Series and Parallel Systems	p. 231
Corporate Sigma Index	p. 232
Objectives of a Corporate Checkup	p. 234
Corporate 911: Trauma	p. 234
A Holistic Approach: The Value of Discipline	p. 239
CLD Simulation in ExCEL	p. 241
Relationship between Sigma Level (Short Term), DPMO, and Yield	p. 245
Selected Bibliography	p. 247
Index	p. 251
About the Authors	p. 259
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