Bridging the Gap (Industrial Age > Customer Age)

During my encounters with global business leaders, I am frequently asked the question of what is the difference between Lean Six Sigma (LSS) and Customer Experience Management Method (CEMMethod™), a dynamic approach for helping people and enterprises successfully embrace and realise the benefits of the Customer Age. 

 Often the question is prompted as a consequence of the huge investment many large corporations have made into up-skilling their people and processes to LSS. Many times those same executives are querying the return on those investments and hence now looking at more progressive alternative approaches to evolve their business performance.
For those familiar with Outside-In thinking and practice the difference is fundamental however if you haven’t been exposed to such training or working in one of the worlds leading Outside-In companies it would be good to have a short comparison of the key thematic differences.
In the interests of full disclosure, I was an Industrial Engineer qualified as a Lean Master and Six Sigma Master black belt and I see and witness the significant differences every day. Does the implication of the difference mean we should abandon LSS? No, far from it. In fact, integrating the Outside-In perspectives into existing programs is a proven tried and tested way of advancing LSS to the centre stage of winning performance.
Case in point is a North American plastics extrusion company. They had previously been a powerhouse of Six Sigma, grown into and become a Lean ‘Toyota way’ dynamo only to run into the problem of diminishing returns.
Plastic extrusion starts with pallets
Investing just as much in getting better the decreasing returns and eroding margins made it an issue at the top table. In true pragmatic Texan style (their CEO is from Dallas) they embraced Outside-In big time. Over 6-9 months people were upskilled for the Customer Age and then let loose to transform the organization. Not only did they save their bacon they are now a world-leading company. And what do they call their program? OIL – Outside-In Lean. Nice eh?
 So be pragmatic. Look for the bridges from here to there and you can have the best of both worlds.

Table 1: Comparison of some differences between Lean Six Sigma and the CEMMethod.

Element
Lean Six Sigma
Customer Experience Management/Outside-In
Mindset
Industrial Age
Customer Digital Age
Focus
Improve current work
Align to achieve SCO’s
Intent
Process will exist at the end of a review
Processes may be removed
Results
Focused on improving outputs
Focused on delivering Outcomes
Cost reduction
Triple Crown achievement (Cost/Service/Revenue)
Structure
Accepts the functional hierarchy
Proposes the appropriate structure to deliver SCO’s
Techniques
Effect based activity (value/ non-value added – waste identification – SPC etc.)
Causal based activity (what creates the work in the org. then let’s fix the causes)
Intelligent Processes
No mechanism exists to ensure processes are intelligent
Specifically designed to implement and mature intelligent processes
Customer
End to End working e.g. SIPOC
Centric working – the customer is at the heart of everything that happens
Are at the end and the beginning of processes
Are enlightened, Promiscuous, Rebellious, Prosumer, Multi-channel, high expectations
Enterprise objectives
Operational and tactical. Aims to fix process.
Strategic and Operational. Aims to implement a sustainable architecture.
Scope
Process based improvements
Enterprise-wide transformation
Other Customer Age resources to explore:
Outside-In The Secret: www.outsideinthesecret.com
CEMMethod™: www.cemmethod.com
Certified Process Professional: www.certifiedprocessprofessional.com
Training: www.bpgroup.org/training.html
 

The 5 most popular Lean Six Sigma Articles

Google tells us that lean thinking and practice has had its heyday. However, the overlay of ‘digital everything’ makes processes more important than ever, so what are the leading Lean Six Sigma articles of the last 12 months?


5th: Why Lean Six Sigma is a necessity in every industry

Intelligence Quality
Intelligence Quality is a Management and Business consulting firm that specializes in Lean and Six Sigma strategies. 

“There is a false notion about Lean Six SIgma wherein it is a waste of money to incorporate the concept in the company, however, one fails to realize that like any other department, Lean Six Sigma is a necessary method that every industry must follow in order to rectify their financial curve.”

Jump to the Full Article here.

4th: 5 Process Improvement Strategy Trends of Future-Ready Firms | AccountingWEB

Dustin Hostetler

Dustin Hostetler is a Lean Six Sigma consultant and shareholder of Boomer Consulting Inc.  As a Lean Six Sigma Master Black Belt with extensive experience working inside a large regional CPA firm, he has taken proven Lean techniques from the manufacturing floor and tailored them to bring groundbreaking value to public accounting firms

 
“The firms that have been comfortable with status quo, quite frankly, are going to be rudely awakened as the intersection of technology and process continues to change the game around them. I can’t help but think of companies like Blockbuster and Kodak that were at one time comfortable with the status quo.”

Jump to the Full Article here.

3rd: The 8 forms of deadly waste in LSS

Scmula.com

As a provider of LSS services and resources Scmula helps people ‘get’ techniques and approaches, tried, tested and proven.

“Lean Six Sigma is one of the most advanced and effective methodologies available for business process improvement and optimization. It is especially adept in battling a wide range of problems and inefficiencies. To help better understand and deal with waste, this approach classifies them into the 8 Forms of Deadly Waste. This classification is important because it makes waste much easier to uncover and then eradicate. It also helps you identify environmental improvement opportunities.”

Jump to the Full Article here.

2nd: The Amazingly Awesome list of LSS books

GoLeanSixSigma (May 2017)

One of the leading providers of training in the space periodically publishes ‘books most read’.

“What’s a good book to read if you want to succeed at process improvement? Is Lean Six Sigma all about manufacturing? Are there any about the service industry? HealthcareGovernment?…”

Jump to the Full Article here.

1st: Lean Six Sigma is everywhere

GoLeanSixSigma

This one for March 2017…

“Do you ever walk into a store and know at a glance where to find what you need? Do you notice that seemingly long lines can often move really quickly? Do you find yourself wondering why things don’t go horribly wrong more often? Lean Six Sigma is at work!”

Jump to the Full Article here.

Recent Articles: www.cxobsession.com

Upcoming Events > Denver | Washington DC | London | : www.bpgroup.org

Ciao,
Steve aka CXObsessed

SIngapore and PEX Asia Heads up for February 2014

Dear Colleague,

I am delighted to be working with PEX Asia on their 2014 summit.
The event is designed for process management professionals who want to be at the forefront of change, champion excellence in their organisation and collaborate on creating the next generation of process transformation strategies.

Process Excellence is being redefined in this digital age, transforming organisations and revolutionising how business is conducted globally. To be competitive your company needs to continually evolve and move beyond just Lean Six Sigma.

Process Excellence today draws on a raft of evolving methodologies including Lean, Six Sigma, Business Process Management, Enterprise Architecture, Total Quality Management and Statistical Process Controls to enable organisations to improve the way they operate and deliver. Notable organisations such as the Singapore Exchange, ANZ, Shell, Nokia and the BP Group will be sharing the different ways they have blended and harmonised approaches within their ranks to enable their teams to connect more swiftly to relevant information, improve workflow automation and meet the ever changing consumer and market needs.

Excitingly, as part of this year’s event we have provided delegates with an exclusive opportunity to undertake our certification training programme.

This is designed as two in-depth workshops which will give you the essential skills to take on process change and lead with excellence.

Completing the course will also qualify you as a Certified Process Professional (CPP Levels 1 & 2).

The process professionals we researched with during production of PEX Asia identified their core challenges as how to core challenges as how to:

1. Differentiate their organisation by continually meeting and exceeding process quality and customer service
2. Capture, synthesise and align their client and business needs
3. Continuously improve workflow automation and project turnaround times
4. Swiftly adapt, evolve and improve global supply chain management in ever changing markets
5. Better manage multiple PEX projects

All within reduced timeframes and budgets and still meeting the expected outcomes from reporting executives and boards!

At the PEX ASIA 2014 you will find presenters, delegates, information and ideas which pose solutions to resolving these exact challenges. Using PEX to drive business growth, increase profitability and competitive advantage is more critical than ever.

This is your chance to revitalise, strengthen and accelerate your process strategies.
We hope that you will be able to join us in Singapore at our PEX Asia 2014

Please do take a moment to look through the brochure or go to our PEX Asia website for more details. I look forward to meeting you in February in Singapore!

Steve Towers
Lead Coach and Co-Founder
BP GROUP, UK