DMAIC Reengineering

A colleague gave a wonderful talk the other day on process engineering.

The key steps to reduce waste (Lean) or variation/defects (Six Sigma) are as follows:

Define - Scope the project.

Measure - Benchmark current processes.

Analyze - Develop to-be processes (with a prioritized list of improvements) and plan for implementation.

Improve - Executive process improvements.

Control - Monitor/refine new processes.

It was amazing to me how similar to enterprise architecture this is in terms of: defining your "current" and "future" states and creating a transition plan and executing it.

Also, really liked the Project Scoping questions:

- What problem do you want to solve/what process do you want to improve?
- Why do you need this?
- What is the benefit?  And to whom?
- What are your objectives for this effort?
- Who are the key stakeholders?
- When is this needed and why?

I think process improvement/engineering methodologies like this can be a huge benefit to our organizations, especially where the tagline is "Why should we change--we've always done it this way!" ;-)

(Source Photo: Andy Blumenthal)

DMAIC Reengineering

Customer Service and Enterprise Architecture

Good customer service is worth its weight in gold and indeed, many people are willing to pay extra for this.

In fact, I would venture to say that most of us are usually willing to pay extra if we know that the customer service will be there to protect our purchase or investment.

The Wall Street Journal, 25 April 2008, introduces a new book called “The Best Service is No Service” by Bill Price and Dave Jaffe that discusses what real customer service is all about.

How bad is customer service these days (despite all the technology)?

“When calling an 800 number, we expect to find ourselves in voice-response hell. We dutifully follow instructions to key in a 10-digit policy number—only to be asked by the customer-service rep for the same darn number. Waiting on hold for 25 minutes? Well, that’s what speakerphones are for.”

How have companies responded to calls for better customer service?

“There is more to helping customers than picking up the phone within three rings or emailing within 24 hours.” And these measures are often gamed; here are some examples:

• “At one company, where managers imposed a target ‘average handle time (call time) of 12minutes, phone calls miraculously shortened to just under 12 minutes: As the 12-minute mark approached, agents simply said whatever it took to get the caller of the phone.
• The call center at another company hit on the idea of reducing the number of phone lines so that the excess callers simply got a busy signal-and went unmeasured.”

“In other words: don’t just ask how long it took to help the customer, ask how often the customer needed help and why. The goal is to avoid the need for a customer to contact the company [about problems] in the first place.”

The authors contend that the goal for good customer service is for there to be no need for customer service—i.e. the customer is happy with the product or service being provided and there are no problems and therefore, no complaints. This to me sounds akin to Six Sigma and the quest for zero defects.

And if zero (or close to zero) defects are not the reality, then good customer service is about finding out the “root causes” of the problems and solving them, not just appearing responsive to the complaints, but doing nothing to ensure they don’t happen again.

Good customer service is a strategic competitive advantage, and organizations should include improvements to this area as a goal in their plans.

From a User-centric EA perspective, good customer service is like a sister to User-centricity. We put the user/customer/stakeholder at the center of the organization’s value proposition.

We are here to serve the user and that should mean more than just paying lip service to them. It must mean that we continuously improve processes, products, and service and make the end-user experience zero-defect, problem and hassle free.

Customer Service and Enterprise Architecture

Lean Six Sigma and Enterprise Architecture

Enterprise architecture is one way for an organization to drive business process improvement and technology enablement. Another way is through Lean Six Sigma.

Federal Computer Week, 3 March 2008, reports that “DoD rallies around Lean Six Sigma: The methodology has become the Defense Department’s ‘tool of choice’ for business transformation.”

“Lean Six Sigma is simply a process-improvement method for reducing variability and eliminating waste.” With Six Sigma (developed by Motorola), the idea is to make processes efficient and repeatable, so that there are fewer than 3.4 defects per 1 million. The Lean (developed by Toyota) concept refers to “eliminating any steps that don’t add value.”

In Lean Six Sigma, process improvement is enabled through the following steps:

1. Define—identify problem and measures
2. Measure—capture data points
3. Analyze—discover areas for process improvement
4. Improve—implement process changes
5. Control—verify and validate that improvement is attained and sustained

In 2000, Deputy Defense Secretary Gordon England made Lean Six Sigma the foundation for DoD’s continuous process improvement program.

Currently, “about two-thirds of DoD organizations by some estimates are committed to Lean Six Sigma.”

DoD is training their people in Lean Six Sigma and intends to have 5% of its employees attain Green Belt (involves typically a week of training) and 1% reach Black Belt (typically involves approximately two years of training in math and statistics and several years experience working on projects as Green Belts).

However, DoD has been criticized by some for focusing more on the training, than on translating that training into practical on the job know-how to transform the Department.

Yet, by some measures DoD has made improvement. The Army claims to have “completed 770 Lean Six Sigma projects, from which it estimated savings of $1.2 billion in 2007.”

To me it seems like enterprise architects would do well to work in partnership with Lean Six Sigma professionals in order to understand the business processes, improve them, and identify requirements to technology enable those. In User-centric Enterprise Architecture, business drives technology rather than doing technology for technology’s sake. Lean Six Sigma can help business led the way for truly useable and usable technology solutions.

Lean Six Sigma and Enterprise Architecture

Organizational Blues and Enterprise Architecture

Organizations are like people, they have ups and downs. They have a beginning and an end (even as they transition or morph into something else). And somewhere in the middle or in numerous little points along the way, the organization/person experiences questioning, doubts, reevaluation or mere generally speaking, “the blues.”

The Wall Street Journal, 2-3 February 2008, has an editorial that describes “a massive American-British study of some two million souls throughout 80 counties confirming, empirically, that middle age immiserates us all without regard to income, culture, gender, marital status, or previous experience.”

The study demonstrates the “mood swing of life” with a “U-curve, in which mental stability and happiness bottoms out in our 40s and into our 50s. We then get more cheerful as we round the curve into the final stretch.”

What happens in mid-life crisis?

“Mid-life is a time when the mirage of life’s perfectibility and symmetry, as envisioned in one’s youth, come back to trouble you like a conscience…one might call it a last chance at happiness, or of “getting it right…the last opportunity to shape your fate before you have to accept it; a phase when you are suddenly taunted by the lives unlived.”

Not only people, but organizations go through mid-life crisis:

The stock market swoon of company’s stocks (representing their market values) is one gauge of their oft meteoric rise and death-defying falls. Just some recent examples of companies in the news today: Technology titans, Microsoft with an intraday low of $0.80 in 1986 and a high of $53.97 in 1999, and Yahoo $0.65 in 1996 and $125.031 in 2000, and both are slightly above or below $30 today. Another example, Starbucks has been off nearly 50% in the past year.

The rise and fall of enterprises is a reflection of their even changing environment. Life is not status quo. We are all tested, all the time. It is how we respond to those tests that determine where we go next.

How do we respond?

Some people respond to mid-life crisis by changing themselves, their jobs, careers, and even partners (some opt for the flashy red convertible sport car deluxe!). People are trying to remake themselves—for better or worse. Organizations do the same thing; they seek transformation, reengineering, and strategic change, and hence they undertake initiatives like Six Sigma, Total Quality Management, The Baldridge Award, Kaizen, and other varied change management endeavors (even enterprise architecture to an extent). We as people and organizations look in the mirror and realize that we cannot continue as we are if we are to survive and thrive to fight another day.

Organizational Blues and Enterprise Architecture

Six Sigma and Enterprise Architecture

Six Sigma is a set of practices originally developed by Motorola to systematically improve processes by eliminating defects. A defect is defined as nonconformity of a product or service to its specifications.

While the particulars of the methodology were originally formulated by Bill Smith at Motorola in 1986, Six Sigma was heavily inspired by six preceding decades of quality improvement methodologies such as quality control, TQM, and Zero Defects. Like its predecessors, Six Sigma asserts the following:

• Continuous efforts to reduce variation in process outputs is key to business success
• Manufacturing and business processes can be measured, analyzed, improved and controlled
• Succeeding at achieving sustained quality improvement requires commitment from the entire organization, particularly from top-level management

The term "Six Sigma" refers to the ability of highly capable processes to produce output within specification. In particular, processes that operate with six sigma quality produce at defect levels below 3.4 defects per (one) million opportunities (DPMO). Six Sigma's implicit goal is to improve all processes to that level of quality or better.

Six Sigma is a registered service mark and trademark of Motorola, Inc. Motorola has reported over US$17 billion in savings from Six Sigma as of 2006. (Wikipedia).

Is Enterprise Architecture another offshoot of Six Sigma, Total Quality Management, Kaizen, and so on or is it different?

First what are the similarities between EA and Six Sigma?

1. Business process improvement—both seek to improve business processes to enhance efficiency and effectiveness and improve enterprise “quality”.
2. Performance measurement— both believe in measuring and managing results of operations and in driving toward improved performance and mission execution.
3. Alignment to strategy—both seek to align outputs to strategic goals

What are the differences between EA and Six Sigma?

1. Technology versus design Focus—EA focuses on technology enhancing business performance; Six Sigma emphasizes design for defect-free performance (or zero defects).
2. Use of Information for improved decision-making versus process optimization—EA captures business and technical information to improve IT planning, governance, and decision-making (such as new IT investments); while Six Sigma captures and measures information on performance to optimize business processes.
3. Information- versus industrial-based economy—EA aligns technology solutions with the information requirements of the business and its foundation is in the information economy; while Six Sigma’s defect-free processes are based on an industrial, engineering, and product-based economy.
4. Information-centric versus process centric initiative—EA is an information-centric initiative that addresses information requirements, information technology solutions, information security, information access, information archival, information privacy, information sharing, and so on; Six Sigma is a process-centric initiative that addresses process inputs, outputs, controls, and mechanisms and works through process definition, measurement, analysis, improvement, and control (DMAIC).

So EA and Six Sigma share some important facets such as business process improvement, performance measurement, and alignment to strategy; however, EA is an information-centric initiative geared toward the information age, as such it takes Six Sigma into the 21^st century.

Six Sigma and Enterprise Architecture