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15 views136 pages

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The document is a promotional overview of the book 'The Intersection of Change Management and Lean Six Sigma' by Randy K. Kesterson, which focuses on the integration of change management principles with Lean Six Sigma methodologies. It highlights the challenges faced by Black Belts and change agents in organizations with low Lean maturity and emphasizes the importance of effective change management in achieving successful process improvements. The book includes various chapters addressing resistance to change, organizational change management tools, and insights from experts in the field.

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The Intersection of
Change Management and
Lean Six Sigma
The Intersection of
Change Management and
Lean Six Sigma
The Basics for Black Belts and
Change Agents

Randy K. Kesterson
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742

© 2018 by Taylor & Francis Group, LLC


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To my wife, Susan, and my three kids: Michael, Nicole, and Chase
Contents
List of Abbreviations..............................................................................xi
Foreword.............................................................................................. xiii
Preface.................................................................................................... xv
Working at the Intersection.................................................................xix
Introduction�����������������������������������������������������������������������������������������xxi
Thank You.......................................................................................... xxiii
About the Author................................................................................. xxv

Section I

Chapter 1 Why Should You Care?....................................................... 3


Change Receptiveness of the Organization...............................6
A Catalyst for Success...................................................................8
Respectful and Respected Leadership........................................8
\kə-ˌla-bə-ˈrā-shən\ .......................................................................8
The Collaboration Trade-Off.......................................................8
Key Takeaways...............................................................................9
Reference.........................................................................................9

Chapter 2 Change Is Good!................................................................ 11


Key Takeaways.............................................................................13

Chapter 3 Change Is Hard!................................................................ 15


Key Takeaways............................................................................ 20
Reference...................................................................................... 20

Chapter 4 Resistance Is Real.............................................................. 21


The Change Curve......................................................................21
Key Takeaways............................................................................24

vii
viii • Contents

Chapter 5 Minimizing Resistance..................................................... 25


The Story of the Shoe that Changed My Perspective
on Change.....................................................................................25
Key Takeaways............................................................................ 30

Chapter 6 Why?: The Most Important Word in


This Book........................................................................... 31
Why?..............................................................................................31
The Targets of the Change..........................................................32
People Analytics Tools................................................................33
Key Takeaways.............................................................................35
Reference.......................................................................................35

Chapter 7 Resistance in Your Personal Life?.................................... 37


Key Takeaways.............................................................................37
Reference.......................................................................................38

Section II

Chapter 8 What Is Organizational Change


Management? .................................................................... 41
The ADKAR Model (by Prosci, Inc.)....................................... 42
Managed Change Model (by LaMarsh Global)...................... 42
Resistance to Leaving the Current State............................. 43
Resistance to Moving to the Future State........................... 43
Resistance to the Change Plan............................................. 44
The Five Stages.............................................................................45
Emotional Support.....................................................................47
A Chaordic Change, Discovered in an
Unlikely Place..........................................................................47
Friction Equation.......................................................................49
Organizational Change Management......................................50
Some Lessons Learned on How Can I Help?......................50
The Reinforcement Paradox?............................................51
Key Takeaways.............................................................................52
References.....................................................................................53
Contents • ix

Chapter 9 Project Risk Assessment................................................... 55


Some Changes are Bad Changes................................................57
How to Prevent Bad Projects......................................................58
Key Takeaways.............................................................................58

Chapter 10 Some Basic Organizational Change Management Tools....... 59


Stakeholder Analysis Tool..........................................................59
Stakeholder..............................................................................59
What Is the Tool Used For?...................................................59
How to Use the Tool?............................................................. 60
When to Use the Tool?...........................................................61
What to Do with the Results?...............................................61
Risk Analysis Tool.......................................................................62
What Is the Tool Used For?...................................................62
How to Use the Tool?..............................................................62
When to Use the Tool?...........................................................63
What to Do with the Results?...............................................63
Communication Plan..................................................................63
What Is the Tool Used For?...................................................63
How to Use the Tool?............................................................. 64
When to Use the Tool?.......................................................... 64
What to Do with the Results?.............................................. 64
Levers You Can Pull....................................................................65
Communication.......................................................................... 66
Incentives................................................................................ 66
Training and Development...................................................67
Key Takeaways............................................................................ 68
Reference...................................................................................... 68

Chapter 11 When to Ask for Help....................................................... 69


OCM Intuition.............................................................................70
Key Takeaways.............................................................................71

Chapter 12 The Intersection of Organizational Change


Management and Lean Six Sigma.................................... 73
A Note to the LSS Program/Deployment Manager................75
Key Takeaways.............................................................................76
x • Contents

Chapter 13 People Are Different.......................................................... 77


Introduction to the WorkPlace Big Five Profile......................78
Need for Stability (N)..................................................................79
Extraversion (E)...........................................................................79
Originality (O).............................................................................79
Accommodation (A).................................................................. 80
Consolidation (C)....................................................................... 80
Change Propensity......................................................................82
People and Facts and Data.........................................................82
People Analytics..........................................................................83
Key Takeaways............................................................................ 84
References.....................................................................................85

Chapter 14 The Final Word................................................................. 87


Key Takeaways............................................................................ 88

Section III

Chapter 15 Interviews with Experts.................................................... 91


The Interview Questions.............................................................92

Chapter 16 Mini-Biographies of the Interviewees........................... 159

Section IV

Appendix A: Competencies for the Successful Black Belt................ 165


Appendix B: Coaching and Mentoring for the Black Belt................ 167
Appendix C: The Shingo Principles................................................... 169
Appendix D: A Brief History of Continuous Improvement............. 171
Appendix E: Where to Go for More Information............................. 179
Appendix F: Acknowledgments.......................................................... 181
Bibliography......................................................................................... 183
Index���������������������������������������������������������������������������������������������������� 185
List of Abbreviations
ADKAR awareness, desire, knowledge, ability, reinforcement
ASEM American Society for Engineering Management
ASQ American Society for Quality
BMGI Breakthrough Management Group Inc.
CAP change acceleration process
CEO chief executive officer
CI continuous improvement
CM change management
COO chief operating officer
CPI continuous process improvement
DISC a personality profile model
DMADV define, measure, analyze, design, verify
DMAIC define, measure, analyze, improve, control
EMO/PERF emotional response/performance
FMEA failure modes and effects analysis
HR human resources
IT information technology
LSS Lean Six Sigma
MBTI Myers–Briggs Type Indicator
OCM organizational change management
OD organizational development
PDCA plan, do, check, act (or adjust)
PM project management
PMO project (or program) management office
QWERTY name of a common computer keyboard design
ROIC return on invested capital
ROI return on investment
SQL Structured Query Language
TPM total productive maintenance
VP vice president
TV television
WIIFM what’s in it for me?

xi
Foreword
Much has been written on change. The sentiments expressed in articles
and books that describe the importance and challenges of successful
change management are certainly accurate. The statistics often quoted are
not. After all, can it really be true that 70% of change efforts fail (a number
blindly repeated time and time again)? Probably not. But then again, what
exactly does it mean to succeed? Most change DOES eventually happen.
The real question is how painful the path turns out to be and how much
time, effort, and money is lost along the way. The more time it takes and
the more effort required, the less efficient the change effort. Of course,
some change efforts DO actually fail, resulting in no net change. In the
end, the measurement of change lies along a continuum, and effective
change management is about improving the odds of success while reduc-
ing the resources required to succeed.
Randy K. Kesterson offers us his career’s worth of wisdom. In fact,
through research and interviews with others, he offers us many careers’
worth. By bringing together the collective wisdom, research, and learning
of so many others, Randy creates a truly collaborative compendium with
special emphasis on the challenges of driving day-to-day process changes
such as those often driven by the continuous improvement leaders we call
Six Sigma Black Belts.
Strategic change often comes from high above. While people might
drag their feet, mandates from high above generally move forward. In
these cases, change management is intended to grease the skids, ensuring
change happens as fast as possible.
On the other hand, Six Sigma Black Belts, the principal actors in this
book, tend to be operating at peer-to-peer levels, meaning they don’t have
the authority to mandate change and they don’t have the access to the
resources necessary to ram change through. Black Belts also tend to be
working to improve the daily operating processes of the business, which
is much like trying to change the belt on an engine while the engine is
running. In other words, for Six Sigma Black Belts, change manage-
ment efforts are often far more challenging than for their superiors in the
organization. Yet collectively, their efforts are no less important. In fact,

xiii
xiv • Foreword

strategic change driven from on high above is often implemented through


the efforts of many Six Sigma Black Belts.
I’ve known Randy for a decade, and since the day I met him, his pas-
sion for understanding and managing change has always been apparent.
When we first met, he was at LaMarsh & Associates, a time in his life that
he refers to affectionately throughout this book. Ten years on, LaMarsh
Global remains one of the top change management firms in the world.
I’ve seen Randy’s passion applied in the workplace when he was a client
at General Dynamics. Without his solid background in change manage-
ment, I don’t believe his team or mine would have met with the success
they experienced together.
The readers of this book will no doubt be able to relate to many of the
experiences and stories Randy shares. And they will likely ask themselves,
“Why wasn’t I taught this sooner?” The answer is that, while change man-
agement is very often referred to as a “soft skill,” in practice it is quite hard.
Resistance to change is complex and dynamic. Just as a block of wood
sliding across a surface meets with resistance from multiple forces, so,
too, does effort to change a process. As the block of wood moves faster,
resistance increases. The friction presented to the block by air increases
exponentially as something moves through it, while the friction between
the block and the surface also increases according to the interfaces coef-
ficient of friction. Process change is no different. There is organizational
resistance brought on by corporate bureaucracy, there is process friction
by virtue of the fact that most processes do not operate independently of
all other processes, and then there is the resistance of people who may not
understand the need for change or who are just more comfortable with
the status quo. Breaking down the change and dealing with the human
element is the focus of this book.

David Silverstein, CEO


The Lean Methods Group
Preface
I’ve had this book in my head for a while. It’s been trying to get out, and I
finally decided in early 2016 to sit down and start to write it.
The book straddles a possibly untouched niche—the intersection of
change management (CM) and Lean Six Sigma. The book is written for
the Black Belt, or the organizational change management practitioner,
working inside an organization with low Lean maturity, where significant
resistance to change is the norm. You see, I believe there is a continuum
of organizations with “Fat” (i.e., non-Lean) organizations on the left and
“Leaner” organizations on the right.
You may know of organizations with more Lean maturity, where there
is no longer as much need for overt change management and Lean has
become a part of the culture rather than a set of tools practiced by people
in structured Black Belt roles.
A recent list of the top 10 Lean manufacturing companies in the world1
included the following:

1. Toyota
2. Ford
3. John Deere
4. Parker Hannifin
5. Textron
6. Illinois Tool Works
7. Intel
8. Caterpillar
9. Kimberly-Clark
10. Nike

I’d also nominate Danaher and Milliken for inclusion in the “far right” club.
For the less-Lean organization, building change management tools into
Lean Six Sigma projects helps to mitigate resistance to change, accelerat-
ing the benefits and saving the organization time, money, and employee
angst—in short, eliminating waste. Change management can also help
with the Lean Six Sigma initiative deployment or, more likely in today’s
world, redeployment.

xv
xvi • Preface

Why is it that more organizations are not farther right on the Lean con-
tinuum? I have a theory about this. Referring to the elements of Lean on
the right side of Figure P.1, where within a typical organization does strat-
egy formulation reside? Typically, at the top, you say, with the executive
team or involving a team of experts in the business development function?
And who does the lion’s share of work on process improvement? Maybe
Operations? And who fiddles the most with org structure? Executives with
the help of Human Resources/Organizational Development (HR/OD).
And who typically strives to improve workplace culture and address nag-
ging culture gaps? Maybe HR/OD again? How about metrics? Who typi-
cally owns most of them and tracks them? Maybe Operations and Finance?
The picture I’m painting is that the work to move toward a Lean(er)
organization requires the close coordination and alignment of multiple
teams of people working across functional areas, up and down the orga-
nization. It’s not easy. My observation is that organizations that have been
most successful (at least large organizations in some parts of the world)
have relied upon Hoshin Kanri to create the needed alignment from top
to bottom and across the organization.
Some people who have read early drafts of this book come from orga-
nizations on the far right side of the Fat–Lean continuum. A few of them

The Fat–Lean Continuum

FAT Organization LEAN Organization*


FAT Strategy Deployment (None) LEAN Strategy Deployment**
FAT Processes LEAN Processes
FAT Structure LEAN Structure
FAT Culture LEAN Culture
FAT Competencies LEAN Competencies
FAT Metrics LEAN Metrics
Low LEAN Maturity High LEAN Maturity
Lots of Waste Less Waste
* If you’re not familiar with an organization on the right side of the Fat–Lean Continuum,
you can get a feel for it by reviewing the Shingo Principles at http://www.shingo.org.
** I’m not suggesting that a FAT organization never formulates strategy; I’m saying that
most seem to lack an effective strategy deployment and execution process. A strategy
deployment approach that aligns very well with Lean and the Shingo Principles is called
Hoshin Kanri. You can scan for it on the Internet or, if you want to know more, see
The Basics of Hoshin Kanri, of Hoshin Kanri (Boca Raton, FL: CRC Press, 2015) a book
at the primer level.

FIGURE P.1
The Fat–Lean Continuum. (Created by the author.)
Preface • xvii

seem to look down their Lean noses at people who don’t reside near them
in the land of Lean-ness. They tell me that Six Sigma is not really a part of
Lean, i.e., you shouldn’t require people to work on projects in Black Belt
roles, and they say that change management should not be needed. With
the greatest of respect, I tell them a story in an attempt to help them to see
other (less Lean) perspectives.
An Olympic swimmer was watching a very young boy take his first swim-
ming lesson at the community swimming pool. The boy had finally learned to
put his face in the water and was now using a float board while his instructor
held him a float. The Olympian scoffed, “you should not need a float board
to swim!” From his position at the far right end of the swimming continuum
he had forgotten that he once, long ago, had needed this kind of help as well.
I’ve spent two-thirds of my career in executive roles in industry and
one-third of my time in strategic change management consulting, working
deep inside the intersection of Lean Six Sigma and change management.
I’ve helped Master Black Belts within several Fortune 500 companies weave
structured change management approaches and tools into the DMAIC
(define, measure, analyze, improve, control) and DMADV (define, mea-
sure, analyze, design, verify) steps. The results have been significant.

DO NOT READ THIS BOOK!


Do not read this book if you are fortunate enough to work within an orga-
nization that lies on the right side of the Fat–Lean Continuum. On the
other hand, if you are like most of us, living in organizations on the left
side, struggling to move toward the right side of the continuum, facing
resistance to change at every turn, please join me for an exploration of the
intersection of two fascinating methodologies.

Randy K. Kesterson
Davidson, North Carolina

REFERENCE
1. Top 10 Lean Manufacturing companies in the world, ManufacturingGlobal.com,
June 12, 2014.
Working at the Intersection
There are many people in this world who possess more expertise than I do
in the field of OCM, and there are also a considerable number of people
with far more expertise in Lean Six Sigma.
But, I suspect that I am a member of a fairly small group of people who
possess experience and some expertise in both—people with experience
working at the intersection of change management and Lean Six Sigma.

xix
Introduction
I’m guessing that you’re reading this introduction because you’re looking for
a simple explanation of Organizational Change Management (OCM). I under-
stand. I sometimes hear people involved in a stalled project tell others, “We
need to use change management on this project.” But, I wonder, “do they
really know what Change Management is?”
This book could be titled “Change Management 101.” It is intended to
be used as follows:

1. A refresher for existing Black Belts, Green Belts, and Master Black
Belts to improve their understanding of change management;
2. A primer in change management for new belts going through Lean
Six Sigma training;
3. A source of training material for those leading Lean Six Sigma train-
ing classes; and
4. A source for change management practitioners coaching existing
belts through their projects.

A DEFINITION
“Change management is about people. It is the way we help people navigate
change successfully. Tools, techniques, and processes exist to help people
make the transition to adopt change.”

—Lisa A. Riegel, PhD


President/CEO
Educational Partnerships Institute, LLC

CONFUSION ABOUT THE TERM


Management of the people side of change is sometimes confused with the
term, change management (CM)., used in the parlance of the Information

xxi
xxii • Introduction

Technology (IT) professional. In the IT world, the people side of change is


critically important, but “change management” is also used to describe an
IT service management discipline. The objective of change management
in the IT context is to ensure that standardized methods and procedures
are used for changes to control IT infrastructure—NOT to help people.
I first learned of the term OCM when I was Executive Vice President and
COO for an aerospace and defense company. In the many years since, I
have learned that change management applies to all forms of change—
from breakthrough, cataclysmic change, to incremental continuous
improvement projects. In this book, I’ll talk about how Organizational
change management (OCM) applies to Lean Six Sigma, from the unique
perspective of the Black Belt.

TERMINOLOGY
I’ll use the terms “organizational change management”, “change manage-
ment”, and “OCM” synonymously throughout this book.
I’ll also use the terms, “Lean Six Sigma” and the abbreviation “LSS”
interchangeably.
The first part of the book explains the BIG problem—resistance—and
why you should care about it. Part II explains what you can do about it.
Part III contains Q&A sessions I conducted with experts from the fields of
OCM and Lean Six Sigma; many of the interviewees are experts in both;
mini-biographies of all the participants are also included. Section IV
includes some nuggets of information that should help you as you move
on to more advanced change management topics.

Paraphrasing Leonardo da Vinci and Albert Einstein, I hope this book is


simple enough, but not too simple.

Simplicity is the ultimate sophistication.


—Leonardo DaVinci

Everything should be made as simple as possible but not simpler.


—Albert Einstein
Thank You
To Jeanenne LaMarsh and Jeff Hiatt for sharing a small portion of your
change management expertise with me, helping me to understand a few
important things about this fascinating subject.
To all of you who spent time with me, sharing your thoughts and answer-
ing my questions for incorporation into the “Interviews with Experts” sec-
tion of this book.
To A. Blanton Godfreg Ph.D. for sharing a bit of your knowledge of Lean
Six Sigma with me.
To Ellen Domb, Pierce Howard, Ph.D., Zack Johnson, Alireza Kar,
Siobhan Pandya, Lisa Riegel, Ph.d., and Michele Quinn for your valuable
contributions to their book.
To Susan and my siblings (Lori Lynn and Kris Anthony) for your sup-
port and (mostly) positive, constructive editing.
To Chase for your help with the artwork.
To those who assisted me with the editing of the final draft, you will find
your name listed in Appendix F, Acknowledgments.
Finally, to all of you who throughout my career have given me examples
of how to (and how not to) effectively manage change.

xxiii
About the Author
Randy K. Kesterson has held executive-level positions at Cobham,
Doosan Bobcat, General Dynamics, and Curtiss-Wright, with prior suc-
cessful experience at Harsco Corporation, John Deere, and at privately
held Young & Franklin/Tactair Fluid Controls.
He also worked as a management consultant to organizations such as
Bank of America, Caterpillar, Motorola, Bank of Montreal, Ford Motor
Company, Milliken & Company, RJ Reynolds, and the Federal Aviation
Administration (FAA).
Randy recently served as the Chair of the Advisory Board for the Center
for Global Supply Chain and Process Management at the University of
South Carolina’s Moore School of Business. He earned his Six Sigma Black
Belt at North Carolina State University/IES.
He earned his Bachelor of Science degree in Engineering Operations
from Iowa State University and attended Syracuse University, where he
earned his MBA with a concentration in Operations Management.
Randy and his family have residences in North Carolina and in the
Washington, DC, area.

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