Overcoming Resistance to Implementing Six Sigma inInformation Management

Carl LewisProgram DirectorMaster Black BeltProcess ExcellenceJohnson & JohnsonCorporate Office ofInformation Management

WCBF

2nd Annual Conference

Six Sigma in Service &

Transactional Environments

October 2005

Scottsdale

Arizona

2

Company Overview

Total Sales and Net Earnings

1994- 2004 in Millions US$

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

3

70's 80's 90's 00's

Quality Methodologies in IMIm

pact

Evolution of Quality Programs

QualityCircles

TotalQuality

Management

BusinessProcess

Reengineering

PExSM

4

DesignExcellence

LeanThinking

SixSigmaMetrics

Assessment Recognition

Leadership

PExSM

Improvement

5

PExSM Organization

J&J Process Excellence

Enterprise Leadership Team

ConsumerCouncil

DevicesCouncil

MedicinesCouncil

World HQCouncil

IM Council Mission: Accelerate the effective applicationof PExSM across the global IM community.

Information Management Council

6

Resistance EncounteredP

essi

mis

mO

pti

mis

m

Time

EarlyWins

AnotherCorporateInitiative

ProblemSolving

ProjectManagement?

7

What Did Not Work

Supply Push

• Product Out

• Creating Have’s & Have Not’s

• Two Piles of Work

• One Size Fits All

8

Change In Strategy

Broad

Narrow

Low Cost Value Add

Mar

ket

Pos

ition

Product Position

Facilitated WorkshopsLunch & Learn

Sharing Forums

Belt Training

Competency Toolkit

JIT Training

Train The Trainer

IM Global PE Council

Expertise Locator

SDLC Integration

IM PE Product Portfolio Aligned to Customer Need

Case Studies

Role Plays

9

What’s Working

Connecting• Share Case Studies• Establish Competencies• Solve Problems

Demand Pull

Market In• Consulting/Facilitation• Customized Training• Strategic Engagements

For All• Leadership• Associate• College Hires

Doing The Work• Integrated Methods• Workshops• Tools For Everyday

10

Barriers Past, Present, Future

TranslatingFrom Supply Chain

To Office Environment

EstablishingA Global IM

PExSM Council

Demystifying And Making It Fun

BlendingMethodologies

Developing MoreMaster Black Belts

BusinessProcess

Management

11

80

156

212

42

104

205

0

50

100

150

200

250

2002 2003 2004 2002 2003 2004

• IM-Led Projects grew 165% from 2002 - 2004– In 2004, 212 Projects returned $208 MM in Benefits

• IM Participation in Business Partner-Led Projects Doubling every year– In 2004, 205 Projects returned $156 MM in Benefits

• Projects planned for 2005– 200 IM-Led Projects– 167 Business Partner-Led Projects

2003 2004

$34

$208

$18

$156

2003 2004

PExSM Projects in IM Community IM PExSM Benefits

IM-Led Projects Business Partner-Led Project

Business Results

12

Capability Growing

• Green Belt fastest growing Certification

• Black Belt Certification shows steady growth

• Master Black Belt Attraction and Retention Issue – IM MBB’s have received great opportunities outside of IM

Certification Across IM Community

Master Black BeltBlack BeltGreen Belt

56

163

254

298

0

50

100

150

200

250

300

350

2002 2003 2004 2005

1720

31

38

0

5

10

15

20

25

30

35

40

2002 2003 2004 2005

0

2

7

4

0

1

2

3

4

5

6

7

8

2002 2003 2004 2005

13

Key Take Away’s

• Focus On Building Capability

• Meet People Where They Are

• Approach As Entrepreneur