1st Edition

Corporate Sigma
Optimizing the Health of Your Company with Systems Thinking




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ISBN 9781439803943
Published December 21, 2009 by Productivity Press
288 Pages - 103 B/W Illustrations

USD $62.95

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Book 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.

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

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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