Corporate Sigma: Optimizing the Health of Your Company with Systems Thinking, 1st Edition (Hardback) book cover

Corporate Sigma

Optimizing the Health of Your Company with Systems Thinking, 1st Edition

By Anwar El-Homsi, Jeff L. Slutsky

Productivity Press

288 pages | 103 B/W Illus.

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pub: 2009-12-21
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Description

One study after the next shows that most employees are unhappy with their jobs and that less than a third actively engage with their work. That means that two out of every three are merely putting in their time, rather than maximizing productivity and attaining satisfaction. One could argue that such a malaise is the symptom of an unhealthy workforce.

Corporate Sigma: Optimizing the Health of Your Company with Systems Thinking shows you how to develop extraordinary competence in your employees. Your organization will function as a system capable of learning, adapting, developing, and growing according to the winning vision you set for it. Like Six Sigma, Corporate Sigma is a metric that assesses the quality or the health and wellness of an entire organization. But assessment is only the first step.

Providing you with distinctive tools that will transform your organization into a customer-driven, profitable, and continuous learning organization, this guide—

  • Defines the roles that employees and managers should play in a healthy organization and the principles and values that will guide them
  • Shows you how to build an inherent sense of purpose, possibility, and commitment in every employee
  • Offers you the tools needed to link an entire organization and assess its effectiveness or wellness

Organized in self-contained sections, you can focus on what you believe needs direct attention, such as leadership, vision, or tools for lean improvement. However, once you start a healing journey, you are likely to discover the best cures are always holistic.

Reviews

Corporate Sigma is a unique, one of a kind book which describes a state-of-the-art set of best practices on how Lean Six Sigma can embrace Systems Thinking. It is the clearest, simplest and most practical book I have ever read on this subject.

—Stephen G. Haines, founder and CEO of Haines Centre for Strategic Management, and an authority in the Systems Thinking approach

Corporate Sigma explains, in easy-to-understand-and-apply style, how corporate wellness can be instituted, maintained, and improved. It is evident that anyone looking for a guide to organizational reformation and path to wellness would be well-served by the guidance of Corporate Sigma.

—John W. Sheets, Jr., corporate VP and chief technology officer, Bausch & Lomb

The hard stuff of quality does not ‘stick’ without the soft skills that people bring to the process. Corporate Sigma is a comprehensive approach. Well done!

—Dennis Alimena, author of The Winning Mindset for Leadership

Table of Contents

Introduction: Taking Charge

LEADERSHIP SIGMA: THE BRAIN

Leadership and Management

Purpose of Leadership

Importance of Leadership

Core Competencies for Successful Leadership

Leadership Core Competencies

Strong Interpersonal Skills

Personal Qualities

Technical Knowledge

Leadership Tasks

Assess How the Organization Functions

Know the Organization’s Objectives Determine How the Organization Can Achieve Its Objectives and Improve Have a Vision for What the Organization Should Become Infuse Leadership Qualities into the Organization

Improving Leadership

Developing Leadership

Leadership and Systems Thinking

CORPORATE BELIEFS: THE SOUL

Corporate Culture

Organizational Mission

Organizational Core Values

Organizational Vision

Shared Vision — The Secret

THE ROAD TO CORPORATE WELLNESS

Corporate Balanced Scorecard

The Four Perspectives

Financial Perspective

External Perspective

Internal Perspective

Learning and Growth Perspective

Corporate Critical Success Factors

Corporate Objectives

Corporate Performance Measures

Corporate Targets

Corporate Improvement Actions

Strategic Alignment by Cascading the Balanced Scorecard

Strategy Map

Case Study: Acme Circuits

Acme Circuits’ Corporate Balanced Scorecard Acme Circuits’ Strategic Map

HUMAN CAPITAL: THE HEART

Employee Satisfaction

Personal Balanced Scorecards

Personal Vision

Personal Mission

Personal Key Roles

Personal Critical Success Factors

Personal Objectives

Personal Performance Measures

Personal Targets

Personal Improvement Actions

BECOMING LEAN: TRIMMING THE FAT

Brief History of Lean

Elimination of Waste

Lean Principles

Lean as a Business System

Other Essential Lean Tools

Cellular Manufacturing

Production Smoothing

Standardized Work

Total Productive Maintenance (TPM)

Business Philosophy for Lean

Other Resources

SIX SIGMA PROTOCOL: THE MEDICINE

Brief History of Six Sigma

What Is Six Sigma?

DMAIC Model

Define Phase

Measure Phase

Analyze Phase

Improve Phase

Control Phase

Process Capability Study

Six Sigma Metrics

Process Shift

Types of Metrics: Defect per Unit (DPU), Rolled DPU, Defect per Million Opportunities (DPMO)

Counting Opportunities

Six Sigma Infrastructure

Role of Executive Management

Role of Champions

Role of Finance

Role of Master Black Belts

Role of Black Belts

Role of Green Belts

Role of Project Team Members

Lean Six Sigma: A Perfect Marriage

SYSTEMS THINKING: THE PRESCRIPTION FOR CORPORATE ARRHYTHMIAS

Systems Thinking: A Better Solution

Systems Thinking and Statistical Thinking

Types of Problems Systems Thinking Can Help Solve

Systems Thinking Tools and Language

Creating Causal Loop Diagrams

CLD Elements

Variables

Connections

Signs

Voice of the System

Modeling Hierarchy

Knowledge Networking: The Big Picture

How to Create a Connection Matrix

Event Pattern Inference

Input and Connection Policies

Simulation

Policy Status

Leverage Variables

Practical Application of CLD Models

Product Line Profit

Policy Evaluation (Policy Scores)

Sick Call-in Reduction

Things to Consider before Acting

THE CORPORATE SYSTEM

Systems Engineering Steps

Step 1: Identify the Stakeholders and Elicit Their Needs

Step 2: Translate the Needs into a Set of System Requirements: Serial Systems, Parallel Systems, Mixed Systems

Step 3: Define the Bounds of the System to Be Developed

Step 4: Define the Functions That the System Must Perform to Transform the Inputs into Outputs

Step 5: Determine the “Best” Technology with Which to Implement the Functions Systems Engineering Applied to Human Systems

Step 1: An Intense Focus on Identifying the Stakeholders and Eliciting Their Needs

Step 2: Translate the Needs into a Set of Overall Corporate-Level Output Requirements

Step 3: Define the Bounds of the Corporation

Step 4: Define the Functions That the

System Must Perform to Transform the Inputs into Outputs

Step 5: Determine the “Best” Technology with Which to Implement the Functions Systems Engineering a Healthy Company

CONCEPTION AND DEVELOPMENT

Inbound Marketing — The Ears of the Organization

Identify the Stakeholders

Elicit the Stakeholder Needs

Opportunities for Success or Failure of Inbound Marketing

Technology Development — Cellular Growth Technology Development for Six Sigma

Opportunities for Success or Failure of Technology Development

Product Development — The DNA of the Organization

Design for Six Sigma

Opportunities for Success or Failure of Product Development

Innovation: Evolution

Corporate Functions and Six Sigma

SENSORY SYSTEMS: THE CRITICAL ROLE OF INFORMATION TECHNOLOGY AND HUMAN RESOURCES

IT Sigma: The Nervous System

Management Commitment to IT Sigma

IT Sigma Quality Management and Improvement Methodology

IT Sigma Business Case

IT Sigma Project Selection

Step 1: BPS Process Identification

Step 2: BPS Process Relationships

Step 3: IT Sigma Project Selection

IT Sigma Project Execution

IT Sigma Playbook

HR Sigma: The Five Senses

Strategic Planning

Operations

Administrative

CORPORATE WELLNESS: THE PHYSICAL

The Corporate CAT Scan

Series Systems

Parallel Systems

Corporate Systems

Scanning Serial Processes

Scanning Parallel Systems

Combination of Series and Parallel Systems

Corporate Sigma Index

Objectives of a Corporate Checkup

Corporate 911: Trauma

A Holistic Approach: The Value of Discipline

Subject Categories

BISAC Subject Codes/Headings:
BUS042000
BUSINESS & ECONOMICS / Management Science
BUS053000
BUSINESS & ECONOMICS / Quality Control