The document discusses how the role of Lean Six Sigma is shifting in an age of increased turbulence and unpredictability. While Lean Six Sigma has helped many companies achieve great success and savings, it did not adequately prepare them for the economic downturn. The world is changing more rapidly but few companies are adapting their strategies to keep up. Going forward, companies will need to view their business as a portfolio of processes and use tools like Lean Six Sigma to design agile, adaptable processes in order to survive unpredictable conditions. Lean Six Sigma practitioners will need to help companies apply these principles and tools more broadly to gain benefits beyond low-hanging fruit.

1. The Shifting Role of Lean Six
Sigma in The Age of Turbulence
Ron Wince

2. With You Today
Ron Wince, President/CEO, Guidon Performance Solutions, LLC
• Nearly two decades of experience in application of Lean and Six
Sigma
• Toyota Production System training from Shingijutsu in
automotive industry and Six Sigma Training at JPMC
• Co-founder of Guidon Performance Solutions – exclusive focus
in non-industrial client-base and non-operational areas of
manufacturing companies
• Client experience in retail, healthcare, financial services,
information technology, telecommunications and hospitality
• B. S. Engineering, U.S. Naval Academy in Annapolis, MD
What We Do
Guidon helps business leaders guide their companies to transform
strategy into execution through the application of world class business
management practices and lean six sigma methods.
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© 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

3. Where Did Lean Six Sigma Come From
Lean Six Sigma
Ford Deming
60s
Toyota Production System Quality Improvement Tools
70s
Reduce Variation
Just-in-Time
TQM
80s
Lean Six Sigma
(Motorola)
90s
00s
LeanSigma
Both of these methods were created out of need – need to change the
outcomes from business processes to better solve customer’s problems with
the least amount of effort and cost
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© 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

4. Lean Six Sigma Has Had Great
Success
• Longest surviving improvement
methodology in history
• Over 50% of the Fortune 500 are
using Lean Six Sigma – that we
know of
• Over 9,340,000 mentions of Lean
Six Sigma on the internet in a
single Google Search
• Every top management consulting
firm now offers some form of Lean …but despite all the success of LSS
Six Sigma consulting companies were still unprepared for
the economic downturn…too much
• Dozens (if not hundreds) of LSS
inventory, too many resources and
training programs poor responsiveness…
• Companies espouse their cost
savings from LSS at every
opportunity
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© 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

5. What Did It Cost Us?
• Large U.S. and European
banks lost more than $1 trillion
on toxic assets
• Unemployment hit 10.2% in
the US
• Real GDP declines at 6% per
year
• $1.3 trillion in personal wealth
wiped out
Lehman Brothers had a strong
LSS program
…companies who had LSS programs suffered a similar
fate to those who did not…
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© 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

6. What Could Have Been Done
Differently
• The world has changed
– Proliferation of consumer choice and
complexity
– Instant access to information – customers,
competitors, suppliers and shareholders
– Globalization and interconnectivity of the
world economy
– The disappearance of “sustainable
competitive advantage”
• But most companies continue to follow
the same playbooks they have always
followed
– They believe the economy moves in
predictable cycles …the world is changing but few
– Companies have a playbook for the companies are keeping up…
upswings and another for the downturns
– LSS plays a role in both – but only linked
to efficiency, cost and quality
…efficiency and effectiveness are table stakes – without them you are
simply not in business…companies must find radically shift their
paradigms…
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© 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

7. The New Business Normal
“Organizations are bombarded by change, and many are struggling to keep up. Eight out of
ten CEOs see significant change ahead, and yet the gap between expected change and
the ability to manage it has almost tripled since the 2006 Global CEO Study”
2008 IBM Enterprise of the Future Study
New business conditions in the future
will more closely resemble navigating
through white water than surviving
predictable economic cycles:
• Change will continue to accelerate
• Threats will come from every direction
• Storms will become normal with
intermittent hurricanes
• Unpredictable and unseen risks
Within the next 10 years only 1/3 of companies
today will survive as they are today.
– Bain Consulting
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© 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

8. Preparing for the Future
At a time when firms in many
industries offer similar
products and use
comparable technologies,
business processes are
among the last remaining
points of differentiation.
Tom Davenport, Competing on
Analytics
As simple as it sounds, few business
leaders today recognize the impact of
processes on their ability for companies
to survive and thrive in the future.
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© 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

9. Business Process Focus
• How decisions are made
Enterprise
Analytics
• How talent is developed
• How to develop new
technology
Mission
Human & Operations • How to manage risk
Capital Purpose & CRM
• How to know which
direction is best
Technology
Platforms
• How to develop products
and
Systems • How strategic plans are
done
In the future companies will have to think of their business as
a portfolio of processes – designed for agility to respond to an
unpredictable business environment
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© 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

10. What Are Companies Doing Today?
• One foot is still in the economic crisis…
– Efficiency and Cost
– Working capital and cash
• Many are starting to focus on the
recovery…
– Innovation
– Growth
– New business models
– Efficient recovery
• Focus on “uneducated” opportunities
– Applying process thinking to daily business
management practices
– Focus on revenue generation – sales,
revenue capture, marketing
– Accelerating and transforming strategic
planning processes
– Risk management, legal, customer
segmentation
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© 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

11. Principles for the Future
• Business Intelligence to guide
actions
• Mission and Purpose as the
organizational compass
• Deliberate Practice to Build
Agility
– Decision making processes at
the point of impact
– Response to opportunities and
threats
– Continued refinement of Tiger Woods regularly practices
operations and technology this shot, although he may only see
– Innovation and new offerings it under tournament conditions 2-3
times per year
View the organization as a portfolio of processes which must be
transformed and orchestrated
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© 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

12. The Role of LSS and Practitioners
• LSS will provide the best tools,
principles and methods for
focusing on business processes
• Companies must expand LSS
beyond the low-hanging fruit
which has been the focus for the
last 5+ years – apply the tools in
uncommon areas
• Practitioners must educate, coach
and push their organizations to
capture more benefit from the
internal CI teams
• LSS will not be the end-game in
the future – it will be one element
of a convergence of tools which
will drive necessary agility and
performance
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© 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

13. Questions
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© 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.

14. Thank You
Guidon Performance Solutions
(866) 986-4414 or (480) 986-4414
contact@guidonps.com
www.GuidonPS.com
Follow us on Twitter @GuidonPS
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© 2010 Guidon Performance Solutions, LLC. All rights reserved. Guidon Performance Solutions is a licensee of LeanSigma®, a service mark of TBM Consulting Group.