Key Performance Indicators in Project Management

Key performance indicators (KPIs) in project management consist of various specific measurement tools for indicating how well teams are achieving specific goals. Project management KPIs are generally agreed upon early in the project. They reflect the organization’s central concept of the project and solidify project responsibility across administrative divisions.

While each team may have differing tasks to complete and roles to play, they all support the KPIs in their own way. Understanding the role of KPIs in project management can help build team synergy and provide a framework for the data collection needed to keep track of organizational project success.

What makes a good KPI for Project Management?

Key performance indicators consist of the most important performance goals across all aspects of team involvement in a project. Effective KPIs should be:

◈ Agreed upon by all parties before the project begins

◈ Meaningful to the intended audience

◈ Quantifiable measurements that can be shared and analyzed across organizational divisions at any time

◈ Regularly measured

◈ Directed toward the benefits the project seeks to deliver

◈ A basis for critical decision-making throughout the project

◈ Aligned with objectives

◈ Realistic, cost-effective and tailored to the organization’s culture, constraints and time frame

◈ Unified with organizational efforts

◈ Reflective of an organization’s success factors

◈ Specific to the organization and the particular project

Collectively, KPIs are a powerful management tool to bring about organization-wide success. Keeping track of accurate metrics from varying teams can identify where more direction is needed or where incentives, plans and other resources, such as training, should be allocated.

KPIs for Project Management

While the scope and terms of an organization’s KPIs may differ from project to project, there are various types of data that can be helpful to any organization. Top project management benchmarking measures include return on investment (ROI), productivity, cost performance, cycle time, customer satisfaction, schedule performance, employee satisfaction and alignment with strategic business goals.

Examples of KPIs within project management include:

◈ Project schedule
◈ Estimate to project completion
◈ Current development backlog
◈ Labor costs spent per month
◈ Current resource allocation

Specific topic areas can include:

◈ Deviation of Planned Budget

Knowing how, where and why project budget deviated is important in tracking down waste and inefficiency, as well as for planning better for the unforeseen challenges inherent to most projects.

◈ Deviation of Planned Hours of Work

Understanding what tasks took more or less time can help in the efficient allocation of consulting and training time. In addition, understanding which teams had to go above and beyond can help build a meaningful incentive and reward program, as well as improve time allocation planning.

◈ Percentage of Milestones Missed

Projects shift over their life cycle. Identifying milestones and achieving goals are important to maintaining project momentum. When too many milestones are not achieved or are shifted, employees may feel frustrated. Identifying when milestones are missed can help restart a project and mitigate similar challenges in the future.

◈ Cost Variance

Keeping accurate records related to cost variance can provide a detailed profile of which teams and processes are most efficient. It can also help companies decide whether a project was worth the investment and assist managers in deciding whether to initiate similar projects.

Best Use of KPIs

Savvy project managers can use KPIs not only as a performance management tool, but also as a motivational tool. When all teams are united with common goals, their individual contributions can shine. Team competition, incentives and rewards can be a powerful motivating tool to keep project momentum pushing forward. Using quantifiable and consistent KPIs can help project managers assess project goals in an objective, fair and powerful way.

Project performance and success isn’t always easy to measure. Harnessing the power of a strong key performance indicator strategy can help project managers lead their teams to higher standards, greater goals and successful projects.

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A Method for Aligning the Six Sigma Performance Metric

Some Six Sigma practitioners are concerned about the current method used to calculate Z-scores and express process capability. A proposed modification, based on Berryman’s scorecard, may fill the need for a more intuitive and business savvy metric.

The common terminology for describing the capability of a business process is process sigma, or Z-score. Z-scores provide a universal standard performance metric for vastly different processes. According to this standard, a process sigma of 6.0 equates to 3.4 defects per million opportunities (DPMO). This value is obtained by accounting for the fact that any process in control continues to allow for a drift of about 1.5 sigma. The traditional calculation method results in the following Z-scores for error free processes:

◈ 0 percent error-free yield = negative infinity Z-score
◈ 50 percent error-free yield = 1.5 Z-score
◈ 99.99966 percent error-free yield = 6.0 Z-score
◈ 100 percent error-free yield = positive infinity Z-score

Some Six Sigma practitioners have raised concerns about the current calculation method and the need to develop a more intuitive Z-score. Because a 50 percent error-free yield does not equal a Z-score of zero, the range of Z-scores from negative infinity to positive infinity gives a false sense of symmetry. The asymmetry is due to the belief that any long-term process variability changes by about 1.5 sigma from its short-term variation.

In addition to the asymmetry in the measurement system, there are questions about the appropriateness of using a negative sigma value. While the method and logic used for negative Z-scores is clear, the intuitive meaning of them is not. What does the negative sigma value mean? What is the meaning of a Z-score of zero? As a manager, how should you react to improvements and reward sigma value gains? While the mathematically minded will argue that it is simply a definition, the fact that questions are raised about its appropriateness puts forth a challenge to the Six Sigma community to develop a metric that makes engineering as well as business sense.

The Need for Change

Recently, a Six Sigma team presented their results for a project where the initial process yield was very low, resulting in a low sigma value. A small effort by the project team, however, made a significant change in the sigma score. The management team was excited about the project team’s work. But their excitement was not as high for another project where the team was charged with making an improvement within an already high-performing process. The current Z-score calculation method does not a provide clear reflection of the effort required to improve processes at various levels of initial sigma value.

The data in Table 1 demonstrates that irrespective of initial process performance and due to the symmetry of the bell curve and the current method of calculating Z-scores, the corresponding increment in the sigma score is the same for an equal amount of yield improvement. For example, a process improvement leading to a decrease of 100,000 DPMO from an initial DPMO of 600,000 and from an initial DPMO of 400,000 leads to the same change in sigma score. This does not reflect that improving a process yield when the process is on the very low end of the performance scale is easier than improving the process yield for one that is performing on the high end of the performance scale.

Table 1: Comparison of Process Performance Improvement Symmetry Toward 50 Percent Yield

Improvement in DPMO	Initial Yield Less Than or Equal to 50 Percent			Final Yield Greater Than or Equal to 50 Percent
	Initial DPMO	Initial Z-Score	Final Z-Score	Initial DPMO	Initial Z-Score	Final Z-Score
1.0	1,000,000	negative infinity	-4.753	1	4.753	positive infinity
1.0	999,999	-4.753	-4.611	2	4.611	4.753
1.0	999,996.6	-4.5	-4.445	3.4	4.445	4.5
100,000	800,000	-0.842	-0.524	300,000	0.524	0.842
100,000	700,000	-0.524	-0.253	400,000	-0.253	0.524
100,000	600,000	-0.253	0	500,000	0	0.553
100,000	500,000	0	0.253	600,000	-0.524	0

This begs the questions: Should practitioners use a metric that is more intuitive in understanding the initial and subsequent change in sigma value? Should the metric account for the relative effort required to achieve the improvement?

Current Method for Calculating Sigma Score

In the current method used to calculate process performance on the sigma scale, the area on a standard normal curve extending from a point some Z-value to the right of center (the mean line) to infinity represents the percent of defects. Figure 1 illustrates this definition of Z-score.

Figure 1: Illustrated Z-Score Calculation

It becomes a bit more confusing once the 1.5 shift in sigma value is considered to account for long- and short-term conversions. Short-term performance is obtained by adding 1.5 to the long-term value. The shift of 1.5 is attributed to a Motorola conclusion that a process has tighter variance in the short term. Over the long term, however, because of issues such as weather, set-up changes, shift changes, batch changes and operator changes, the variation in the process increases – leading to a performance impact of about 1.5 on the Z-scale.

Proposed Method for Calculating Performance Score

The proposed method of calculating a sigma score sets a measurement boundary where a sigma score of zero represents a 0 percent yield and infinite sigma represents a 100 percent yield. For any specified process yield, the shaded area to the right of center reflects an area equivalent to one-half of the DPMO with the left tail of the curve representing the remaining half. The distance between the inner edges of these areas represents the process sigma.

Figure 2: Comparison of Current and Proposed Process Sigma Calculation Methods

But accounting for the 1.5 sigma process shift poses a challenge when using this method. The standard way of adjusting for process shift presents a 0 percent yield as either negative 1.5 sigma or positive 1.5 sigma based on whether the baseline data represents a short-term or long-term process performance. In a centered process, if the short-term data provides a 0 percent yield, the long-term performance supports a 0 percent yield, so there is nothing worse than a 0 percent yield. To account for these anomalies, practitioners may apply the scale adapted by Dr. Maurice Berryman, a Six Sigma consultant who is credited with the creation of a scorecard that uses a multiplier to account for long- and short-term process variations. The method uses a factor of 1.3 to convert between these performance values.

For illustration purposes, suppose a process carries a yield of 80 percent. Assume the process is centered, represents long-term variability and includes a 10 percent reject area on each end of the distribution. Using the proposed method of calculating the Z-score, the 10 percent reject area on the right side of the curve provides a Z-score of 1.282 as opposed to 0.842 using the current calculation method. Table 2 shows the values of Z-scores using the current (old) and proposed (new) methods with adjustment for long- and short-term capability. The new method is illustrated in Figure 2.

Table 2 indicates that for the same amount of yield improvement, the change in process sigma value is higher for a process with an initially higher yield when using this method.

Table 2: Comparison of Process Performance Scores Obtained Using Current and Proposed Methods

		Current Method		Proposed Method
DPMO	Percent Yield	Z-Score Long Term	Z-Score Short Term	Z-Score Long Term	Z-Score Short Term
1,000,000	0	negative infinity	negative infinity	0	0
999,996.6	0.00034	-4.5	-3	0.0000043	0.0000056
999,000	0.1	-3.09	-1.59	0.0012533	0.00163
990,000	1	-2.326	-0.826	0.012533	0.0163
900,000	10	-1.28155	0.218	0.12566	0.1634
800,000	20	-0.8416	0.6584	0.2533	0.3293
700,000	30	-0.5244	0.9756	0.3853	0.5009
600,000	40	-0.2533	1.247	0.5244	0.6817
500,000	50	0	1.5	0.6745	0.8768
400,000	60	0.2533	1.7533	0.8416	1.094
300,000	70	0.5244	2.0244	1.0364	1.3473
200,000	80	0.8416	2.3416	1.2816	1.6661
100,000	90	1.2816	2.7816	1.6449	2.1384
10,000	99	2.326	3.826	2.5758	3.3485
1,000	99.9	3.09	4.59	3.2905	4.2776
3.4	99.99966	4.49985	5.99985	4.64505	6.03856
0	100	positive infinity	positive infinity	positive infinity	positive infinity

The proposed calculation method redefines the scale from 0 to infinity as well as demonstrates the usefulness of using a multiplier to accommodate for long- and short-term variations. The effect of changing the scale and calculation method also helps address concerns associated with the metric accounting for the relative effort required to improve a process at different levels of initial yield. The method demonstrates that these objectives are aligned with Six Sigma philosophies and provides a more robust and useful performance-reporting process.

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PMP vs CAPM: Which Certification is Right for Me?

Difference between PMP and CAPM certifications: Project Management Institute (PMI) offers two levels of certification - Project Management Professional (PMP®) and Certified Associate in Project Management (CAPM®) - for project managers, depending upon their experience, education and training. So which certification is right for me, you may ask. In this article, I’ll review the differences between PMP and CAPM certifications in order to help aspiring candidates make the right decision.

PMP vs CAPM: Comparison Chart

Let’s start with a head-to-head comparison of PMP and CAPM. After that, we’ll address other questions such as - which certification is better and which is more popular.

	CAPM	PMP
Overview	CAPM certification is designed for project team members, entry-level project managers and qualified undergraduate or graduate students. CAPM is also suitable for anyone switching into Project Management Profession but is not qualified for PMP Certification. CAPM demonstrates a good knowledge of Project Management terminology, concepts and methodology.	PMP certification is meant for experienced Project Managers who want to gain credibility and recognition for their knowledge and skills in Project Management, and want to advance their project management career.
Who should apply?	Candidates for the CAPM credential contribute to projects as subject matter experts and team members. They may also serve as project sponsors, facilitators, liaisons or coordinators.	Those who lead and direct cross-functional teams to deliver projects within the constraints of schedule, budget, and scope.
Eligibility Criteria	To qualify for the CAPM Exam, you need: a. Secondary Education + 1500 hrs of experience on a Project Team OR b. Secondary Education + 23 hrs of formal Project Management education	To qualify for the PMP Exam, you need: a. High School Diploma or a global equivalent + 60 months / 7500 hrs of PM experience + 35 hrs of formal Project Management education OR b. Bachelor's degree or a global equivalent + 36 months / 4500 hrs of PM experience + 35 hrs of formal Project Management education
Exam Fee (USD)	a. $300 for non-PMI members b. $225 for PMI members	a. $555 for non-PMI members b. $405 for PMI members
Allotted Examination Time	3 hours	4 hours
No. of Exam Questions	135 Scored + 15 Pretest = 150 Total	175 Scored + 25 Pretest = 200 Total
Difficulty Level	Considerably less difficult than the PMP Exam	Generally considered to be difficult (a subjective matter)
Type of Questions	Objective-type; Mostly direct questions based on PMBOK Guide content.	Objective-type; Mostly situational questions.
Application Mode	Online and paper-based	Online and paper-based
Subject to Audit?	Yes	Yes
Validity	5 years	3 years
Renewal	Retest after 5 years. Details: a. Submit the online application in the 5th year b. Take the exam within the 5th year c. No need to submit eligibility info again d. Not subject to audit again	Earn 60 PDUs during the 3 year certification cycle.
Number of credential holders (as of Mar 31, 2017)	33,383	761,905
Recognition / Market Value	CAPM was introduced in 2003 and is a relatively new certification. It is steadily gaining popularity. It might not get you a Project Manager job, a promotion or a steep pay-hike immediately, but it certainly demonstrates your seriousness about pursuing Project Management as a career. It provides you a step in the door into Project Management.	PMP was introduced in 1984 and has been the premier certification in the field of Project Management for many years. It's well recognized across the world and many companies use it as a pre-requisite for Project Manager positions.

Which certification is more popular - PMP or CAPM?

As you can see from the number of PMPs and CAPMs (760K vs 33k), PMP is far more popular than CAPM. I have been running a survey of visitors of this blog, and based on the responses, PMP is at least 6 times more popular than CAPM.

Which certification is more valuable - PMP or CAPM?

PMP has undoubtedly more value than CAPM in the market as PMP affirms your knowledge and experience in the field of project management, whereas CAPM only proves your knowledge and not experience. This isn’t to say that CAPM has no value. CAPM is great for those who have no or little experience in project management, and are looking for a foot in the door to the world of project management.

Which certification is right for me - PMP or CAPM?

The answer to this question depends upon your project management experience.

If you have 3 years or more of project management experience, you should definitely go for PMP. This one is a no-brainer.

If you have 1-2 years of project management experience, you should wait it out until you have attained 3 years of project management experience, and go straight for PMP instead of spending your money and energy on CAPM.

But if you have less than 1 year of project management experience, or no project management experience at all, or as I said above, you are looking for a foot in the door to project management, then CAPM is the right certification for you. However, don’t stop at CAPM and graduate to PMP once you’ve attained the required 3 years of project management experience.

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5 Project Management Practices Vital to Project Success

Project success is on the rise. For the first time in five years, the Project Management Institute’s (PMI) 2017 “Pulse of the Profession” global survey reported substantial improvements across the profession, with project management that saw goals met and budgets maintained. In short, the profession is enjoying more overall project success.

With this success comes a decline in overall lost dollars; however, the price attached to project failure remains high. For every $1 billion invested, the PMI estimates, organizations waste about $97 million on average. Project success is critical to organizations – financially, because proven project management practices waste 28% less company money, and strategically, because project success translates to initial implementation and process change success.

While every industry may come with some specific needs, these five elements are vital for project managers to understand in any space to ensure project success:

Defined Goals

A clearly established set of goals and details must be defined, in writing, to help the project manager establish a timeline and a budget. When created up front, this project outline equips the project manager to maintain control of the project overall, even if things change during implementation. One key aspect of defining goals is to understand what is within the scope of the project – and what is out of scope, which is often referred to as “scope creep.”

Articulated project goals also aid the project manager in staffing the project with the right team of experts. For example, if the scope of a project is to integrate IT training software into the new employee training, the project manager doesn’t need to include a finance professional.

A defined goal also allows the project manager to determine the method appropriate for executing the project. For example, a project aimed at improving a process may benefit from the Six Sigma approach, whereas a new product launch may apply a waterfall method.

Relationship Management

Successful project managers navigate relationships throughout the life of a project. Daily, they must foster good relationships among team members to execute the work. The project manager should lead their team without overpowering them, listen actively, engage all team members, and ensure the trajectory of the project continues to move forward.

Project managers must also manage relationships with all project stakeholders to ensure project success. Although numerous stakeholders can impact the course of a project, and navigating them may feel more like management, the PMI emphasizes these interactions should truly be a relationship.

The first step in building these relationships is understanding the dynamics of the stakeholders involved in the project, across leadership, project team, clients and “auxiliary bodies.” Then, the project manager should assess their level of influence and the individual’s attitude toward the project. Are they an advocate? An opponent? Neutral? Once the project manager has mapped out each stakeholder’s stance on the project, they must then use negotiating and relationship building skills to influence and inspire stakeholders to support the project – and to help problem solve, facilitate and compromise when necessary. The project sponsor is a key relationship to help support the project manager, as this person has the clout to align resources and influence other business leaders, as well as the position to help to champion the project to his or her peers.

Agility

Although there are many methods for project management, the Agile project management method has been gaining traction in the last several years. The majority of organizations (71%) now report using an Agile approach in at least some of their projects, according to the PMI. With this methodology, project managers apply short sprints to their project, reviewing with stakeholders and adjusting based on that feedback dynamically.

Even if the team isn’t following agile project management as a method, all projects benefit from some degree of dynamic adjustment when issues occur. It is the responsibility of the project manager to resolve issues, and potentially adjust the overall project plan as a result. Anticipating potential pitfalls can help contingency planning, so you are ready to address issues as they arise.

Clear Communication

Communication is a core component of project success, both for internal teammates and external stakeholders. Project managers should foster open communication with both parties, encouraging team members, stakeholders, and clients alike to raise concerns and express feedback. Succinct, frequent team meetings support productivity, can motivate the team, and create a forum for the group to detect emerging issues quickly. Project managers can shape the dialogue around the change their project will incur by clearly and effectively highlighting the benefits of the new product, process or services their project will yield. In some cases, this may entail internally championing a process; in others, inspiring potential buyers to adopt a new or different offering.

Reflection

Invest in future project success – and build on past successes and failures – by reflecting on the course of the project and determining areas of success and opportunities for improvement. This review shouldn’t be isolated to the project manager, but should include seeking team, stakeholder and client feedback on how the project went, what worked well, and what did not.

Applying these practices to every project will support continued project success – and continue to minimize funds wasted by project failure.

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Best Practices in the 5 Phases of Project Management

Although specific steps and the final outcome is unique to each project, the framework of any given project is generally the same. This is why the Project Management Institute (PMI) strives to standardize information and practices in its Project Management Book of Knowledge (PMBOK®), one key component of which are the five phases of project management. The project management life cycle phases are flexible enough to adapt to specific project needs, but the overarching framework establishes the roadmap for any project. These five steps of project management include:

1. Concept and Initiation
2. Definition and Planning
3. Launch or Execution
4. Performance and Control
5. Project Close

The individual steps and emphasis may differ for your organization or project, but the groundwork is established in these five phases of project management to move the project from beginning to end, adapted for specific goals and outcomes for your organization or project.

Phase 1: Project Initiation

At the launch of a project, the project’s scope must be broadly defined; general scope is often established by a business case. In this phase, the business must determine if a project is feasible, if it has organizational approval, and what the project’s purpose and requirements are. At the outset, it’s also valuable to understand any constraints that may impact the project.

This prework is critical to lay the correct plan for the remainder of the project, and documenting the project as outlined in this phase can help ensure all stakeholders understand commitments, and help measure the overall success when the project is complete.

The organization should be able to answer some very basic questions about the project to help define it, according to project management consultant Mike McCormick, including:

◈ Why is the project being conducted?
◈ Why is now the right time?
◈ How will this project benefit the business?

From here, the project manager can also map out key stakeholders who are involved. While at this point in the project it may not be comprehensive, understanding who the major players are is important to begin the project, as those key stakeholders should help with project scope and commitments, including who is required for approval and how long a decision or input should take.

Finally, the project manager will create the project charter, which should establish deliverables, spell out the business need, detail any constraints, note assumptions, and assess risks.

Phase 2: Project Planning

In this next phase, the project manager sets goals for the project. Project managers can assess their goals through several different lenses. One commonly used approach is SMART goal setting:

◈ Specific – The goal should address who, what, when, where, and why.
◈ Measurable – The goal should be measured against specific criteria.
◈ Attainable – A realistic understanding of what it will take to achieve the goal is critical.
◈ Realistic – The project manager, project team, and organization should be able to work toward the goal.
◈ Timely – The goal should have a timeframe.

Alternatively, CLEAR goals are a new mechanism for assessing project goals, according to Inc:

◈ Collaborative – The goal should foster teamwork
◈ Limited – The goal should have a small, manageable scope
◈ Emotional – The goal should inspire employees
◈ Appreciable – The goal should be easy to achieve. Larger goals should be broken into parts to adhere to this measure.
◈ Refinable – Goals should adapt as the project progresses, and adjust if it makes sense to do so.

The tricky feature of the planning stage is that when done well, it’s often forgotten. However, if the planning phase is not done well, issues are quickly visible, often to the detriment of the project manager’s reputation. Incorporating feedback from the project team and practicing risk management in this phase can help streamline project planning.

Overall, project planning should establish:

◈ Related procurement strategies
◈ Refined scope, schedule, risks and budget
◈ Procedures to execute, monitor, and close the project
◈ Understanding of necessary approvals

Phase 3: Project Execution

With both the big picture and the details planned, the project is ready for execution.

To launch this process, the project manager may host a kick-off meeting, informing the team members of specific duties. During the project execution phase, the project manager should:

◈ Develop the project team
◈ Allocate resources and staff experts
◈ Execute the project management plans
◈ Procure resources as necessary
◈ Direct and manage all steps
◈ Establish tracking mechanisms
◈ Assign tasks
◈ Host status meetings
◈ Maintain and update the project schedule
◈ Adapt project plans as appropriate

Throughout the project execution phase, the project team should adhere to the carefully developed project plan. Although this is the most action-packed stage, if the first two stages were approached diligently, project execution should be just that – following the plan. Of course, the team cannot blindly execute, as every element should be constantly assessed to ensure quality deliverables, and sometimes adjustments to the plan are necessary for the overall success of the project.

Stakeholders will also require regular updates during this phase, in particular for any adjustments or issues.

During this pivotal phase, project managers can practice good leadership by keeping the following areas in mind:

◈ Focus on the finish line. The project’s end game should be top of mind throughout this process – and if it’s unclear, it needs to be redefined.
◈ Seek buy-in. Critical parties need to not only be supportive but be invested in the project’s success.
◈ Know your limits. Every project is different, and sometimes that means a project demands a skillset the project leader doesn’t possess – at least, not yet. Seek training or partner with another skilled professional to fill skills gaps.
◈ Inspire high performers. Align the vision for the project and the strategy to complete it, and then build a highly skilled team to execute that strategy.
◈ Take accountability. Host regular update meetings, establish communication with stakeholders and expect the same accountability from the project team.
◈ Don’t just hear – listen. Even the most well-planned projects hit speedbumps. Project managers must listen to their teams to understand – and correctly address – issues.
◈ Stay nimble. Whether it’s an issue or simply a new development, projects often require change during the process. Project leaders need to be willing to adapt in action.
◈ Find ways to celebrate. To keep morale up and find quick wins, establish short sprints within the execution phase to create milestones that be quickly achieved – and then celebrated. This boosts morale and is likely to yield better work from the team.

Phase 4: Project Monitoring

While technically the project monitoring phase occurs in tandem with the execution, it deserves treatment as a separate phase, as this vital component examines whether the project is on track – for its schedule, objectives and budget. Often called Key Performance Indicators (KPIs), these project elements should be regularly reviewed to glean an accurate understanding of project status.

Project managers should ask:

◈ Will the project meet the stakeholder’s objectives?
◈ At a task level, are deliverables met and high quality?
◈ Is the amount of effort and cost projected to meet the current completion date?
◈ What types of issues have occurred? How quickly are they addressed?

Answering these questions may spur an adjustment to the schedule or resources, but if this is done regularly, it allows for modifications to the overall plan. Changes should be assessed to determine what overall impact they will have on the project, and if it’s truly better to change the project or to stay the original course. In some cases, it may be better to remain on the original course instead of overacting to a change, according to the PMI.

Phase 5: Project Close

The final stage in the life cycle of project management is project closure. At this time, the project manager presents the deliverables, provides any training or support necessary, and ensures the stakeholders are satisfied. During this phase, the project manager presents a final budget and final project report.

Three key questions should be addressed:

1. Has all the work been completed?
2. Have all processes been completed?
3. Do all clients and stakeholders agree the project is complete?

In addition, other steps that should be taken to close the project include:

◈ End contractor relationships
◈ Recognize outstanding team member achievements and celebrate the project
◈ Together with the project team, review what went well and what should be improved
◈ Document any takeaways for future projects
◈ Create a list of outstanding tasks and ensure team members complete them
◈ Ensure project documents and deliverables are stored in an organized, secure way
◈ Complete all documentation and contracts related to the project
◈ Reallocate team members to their next task

Poor or sloppy closure can reduce the impact of a project, leave an organization legally vulnerable, or miss the opportunity to improve for the next time.

Project managers who follow these five project lifecycle stages will execute controlled, on-schedule projects and better benefit stakeholders.

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Aligning Six Sigma with Organizational Strategies

Demonstrating clear alignment between Six Sigma projects and a healthcare organization’s strategic imperatives, vision or mission has been an elusive exercise for many organizations.

Judging from a random sampling of web sites and hospital lobbies, most mission statements represent variations on a theme and relate to common issues such as clinical quality, cost management, service excellence and valuing individual contributions. But do these organizations know – based on reliable data and analysis – how they are really doing in fulfilling their mission? Chances are, they do not – unless they have been able to translate it into actionable metrics and specific behaviors. Six Sigma represents one aspect of a management framework that can help to decipher and validate the vision.

Moving From Tweaking to Transforming

While results can certainly be seen on a project-by-project basis, transformation takes place only when projects are aligned with overall goals and when the organization has been able to develop a real performance culture. Combining technical and cultural strategies is key; and it is important to build early success through projects that can produce an immediate and meaningful impact.

By acquiring skills and experience, the health system can then build internal capability to deliver benefits on an ongoing basis. Sustaining this momentum and taking the initiative to an even higher level requires strengthening management and leadership systems through operating mechanisms and performance reviews that link individual efforts to the organization’s “big Ys,” or the desired overall results.

When viewed as a management initiative, Six Sigma represents breakthrough innovation, a systematic approach linked to business goals and a way to connect people with processes. It can serve as a platform for selecting and developing leaders, a format to pursue and measure the right projects, and a strategy to achieve measurable long-term financial and quality results. Obviously, it also is a set of rigorous methods and tools that allow you to focus on specific processes – eliminating defects and reducing variation.

But the most successful organizations realize it is not just about statistical tools or training. To achieve alignment, it is important to look at Six Sigma in a broader context, including elements such as:

◈ Organizational design: Are improvement efforts spread across the entire organization?
◈ Staffing: Are sufficient resources been dedicated and are the “best and brightest” being selected to lead initiatives?
◈ Development: Are options being provided for continuing education, experiential or project-based training and cross-functional capabilities?
◈ Measurement and accountability: Are projects supported by the right metrics and aligned with strategic objectives?
◈ Rewards/recognition: Is there a process for celebrating success and are rewards linked to key metrics?
◈ Communication: Is there a detailed plan in place (who, what, when) to provide clear and consistent communication at all levels of the organization?
◈ Information Technology: Are there sufficient software programs or IT solutions in place for project funnel management, financial linkage and monitoring results?

The Big Ys in Healthcare

While there may be differences in the way they are described, the major objectives of quality healthcare generally are focused on a handful of basic areas. They are:

◈ Clinical excellence or outcomes
◈ Patient safety
◈ Quality service that leads to high patient satisfaction
◈ Good working conditions that keep physicians, nurses and staff happy, and reduce turnover
◈ Sufficient operating margin to support the hospital’s mission
◈ Living up to commitments to the surrounding community

Change does not happen at this 30,000-foot level, however, so an organization needs to begin to break down each Big Y objective into the various processes and sub-processes underneath. And then identify and concentrate on the drivers that produce most of the results or cause the majority of defects.

Using perioperative services as an example, the table below illustrates one way to translate high-level goals into specific metrics and solutions. In this case, the Big Ys for the department are quality, capacity and net revenue.

Perioperative Service Needs
Core Business Metrics	Quality <> Capacity <> Net Revenue
Performance Metrics	First Case Start Time	Room Turnover Time	Room Utilization	Patient Safety
Critical Factors	Pre-op delays Surgeon not available Anesthesia not available Equipment/supplies not available	Staff roles Setup/cleanup process Communications	Block time allocation/utilization Case time allocation Add-on management Scheduling guidelines	Anesthesia time Right side Instrument counts
Project Solutions	Lean pre-op process Staffing/anesthesia time Preference cards Equipment replenishment	Work-out: work process, Roles, Responsibilities, Commuications Kaizen event: TAT	Level loading blocks/casesacross days/time by clinical service Match schedule to staffing New guidelines: add-ons	Process for identifying, reporting, taking corrective action

Through a combination of Lean, Six Sigma and change management techniques, these broader areas can be broken into key performance metrics, and then further delineated into underlying critical factors and potential solutions. For instance, if the goal is to improve start time for the first surgery of the day, the organization might look at factors such as delays in the pre-op area, or resource issues. Solutions might include the use of Lean techniques to simplify the pre-op process and a Six Sigma project targeting staffing or anesthesia time. With education and experience, every area or issue within the organization can be analyzed in this way, determining which factors drive the primary goals and which tools or solutions are most appropriate.

Learning from Barriers and Best Practices

Not all Six Sigma initiatives are created equal – or implemented successfully. But lessons can be learned from failure as well as triumph. Some of the factors that have characterized less-successful Six Sigma deployments are lack of leadership support, poor communication, inadequate training and mentoring, projects not clearly defined, and neglect of the cultural side of change. Effectively managing people, processes and information also can present challenges within the healthcare environment. The industry generally lags behind others in using data in the most meaningful ways. But that is understandable. With lives on the line, healthcare employees tend to create work-arounds to temporarily fix a problem. With a problem masked, little attention may be paid to finding its root cause and solving the problem at that level.

North Shore-Long Island Jewish Health System implemented Six Sigma several years ago and has achieved impressive results integrating this approach with other proven strategies as part of its Center for Learning and Innovation. According to Alan Cooper, vice president of the North Shore health system, strategic alignment is something the organization continually reviews and refines. “We are coordinating Six Sigma projects directly with our chief operating officers to be used strategically at their sites. One of the COOs is currently tackling a project to improve the revenue cycle as part of operational performance aligned with their core measures.”

Efforts to align Six Sigma with organizational strategies also are working for the Nebraska Medical Center. Since implementing Six Sigma and change management, CEO Glenn Fosdick reports that patient care has improved, physician satisfaction scores have gone up, and nursing turnover dropped from 14.5 to 11.9 percent last year.

“We always have more work to do,” said Fosdick, “but we have a lot more clarity and we’re getting people to understand the word ‘accountability.’ Everyone has a clear idea of what is important and what is expected. But I believe the number one issue is that leadership has to believe in this stuff. If the CEO isn’t pushing it, I’m not sure how successful it will be.”

As part of their Six Sigma initiative, the Nebraska Medical Center uses a balanced scorecard program that is provided to the board on a monthly basis. They have been implementing this at the service line level and will soon be using it at the departmental level as well. In nursing, for example, they might track metrics such as length of stay, budget performance, physician satisfaction, patient satisfaction and nursing turnover.

The ‘Big Why’

With Six Sigma, there is a tendency sometimes to get caught up in the tools, the training, the certification, the statistics…but the really “Big Why” behind any improvement initiative in healthcare is the ability to deliver better care and service for patients. There are numerous examples to show how this approach can be translated into results that have a positive impact on the patients coming through the system everyday, and for the professionals caring for those patients.

Effectively translating the organizational vision or mission into specific metrics is crucial to creating organizational alignment and driving performance across the enterprise. Frequent and ongoing communication will help to ensure that everyone knows how his or her job connects back to the overall goals – whether they work in nursing, housekeeping, the pharmacy or any other area.

Since every organization has certain distinct requirements and readiness factors, it is impossible to write a generic and universal prescription for adapting and aligning Six Sigma. However, every organization can learn from the best practices of others while customizing an approach that will fit within its culture and priorities.

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A Guide to Project Management Certifications

In the next decade, demand for professional project managers is expected to spike, the Project Management Institute (PMI) predicts; however, much-needed project management talent may fall short of demand, generating a talent gap.

Professionals across industries and sectors looking to capitalize on this gap and move into a project management role should consider the multiple options for project management certifications available. For professionals planning to pursue a certification, it’s essential to assess the costs, requirements and skillsets in the scope of each certification.

Not only can earning a professional project management certification provide a competitive advantage, but it can also increase project management skills and position professionals for more attractive salary options. For example, the PMI reported that PMP® certification holders earn almost 20% more on average than project managers without certification in the 10th Edition of Earning Power: Project Management Salary Survey.

Recognized project management certifications to consider include:

Project Management Certifications from the Project Management Institute (PMI):

Most PMI certifications require at least a secondary degree, and many allow a four-year degree to reduce the number of required hours invested in leading projects and earning project management education.

PMP® (Project Management Professional) – This certification centers around leadership competence, establishing a skillset for leading and overseeing project teams. This certification is globally recognized.

PgMP® (Program Management Professional) – Created for project management professionals who manage projects for strategic or organizational-level results, this certification specializes in multifaceted, complex projects.

PfMP® (Portfolio Management Professional) – Project managers responsible for coordinating portfolio management to achieve strategic goals generally pursue this certification.

CAPM® (Certified Associate in Project Management) – Professionals pursue this certification as a measure of understanding core project management terminology, processes and general knowledge.

PMI-PBA® (PMI Professional in Business Analysis) – To showcase adept business analysis skills, professionals pursue this certification, which establishes skills defining business needs with stakeholders, guiding project output and driving outcomes.

PMI-ACP® (PMI Agile Certified Practitioner) – For project management professionals who specialize in Agile practices, the PMI-ACP® requires a blend of training, experience and an exam. This certification assesses all Agile approaches, including SCRUM, XP, LEAN and Kanban.

PMI-RMP® (PMI Risk Management Professional) – Professionals with expertise assessing and identifying risks, planning for hazards and identifying opportunities on projects earn this certification to demonstrate their knowledge.

PMI-SP® (PMI Scheduling Professional) – This certification acknowledges expertise and in-depth knowledge establishing and adhering to project schedules, a highly specialized project management area.

CompTIA Project +

This certification recognizes project management skills outside any single methodology or framework, assessing business professionals who work on smaller projects for their expertise in managing project life cycles, communicating well, resource management and accurate project documentation.

Certified ScrumMaster®

For project management professionals who apply Scrum practices to deliver successful projects, the CSM® certification demonstrates a core Scrum knowledge. CSM® certification holders support their team as “servant leaders,” removing distractions from the team and encouraging project teams to partner together and understand Scrum framework.

IAPM Certification (International Association of Project Managers)

Aimed at project managers with basic project management expertise, including project planning, coordination and implementation, the IAMP does not require professional expertise.

Global Association for Quality Management:

GAQM certifications are classified into three levels based on role, designation and audience. Depending on the level, some prerequisites may be required.

Associate in Project Management (APM)– Aimed at entry-level project managers, this certification helps new project managers launch a career in the field.

Professional in Project Management (PPM)™ – For experienced project management professionals, this certification demonstrates critical project managers skills and knowledge, for project managers who manage tactical project execution, including risk and crisis management.

Certified Project Director (CPD)™ – Established for experienced project management professionals who possess significant project experience and typically hold, or are planning to hold, a more senior, strategic role. CPD-certified professionals manage or direct multiple projects or programs, overseeing management, budget, scope, teams and barriers. This program requires PPM or an equivalent as a prerequisite.

Project Management Resource Group’s Master Project Manager®

For both experienced and establishing project management professionals, the MPM® establishes project management principles and practices, ranging from leadership skills, motivating teams, avoiding pitfalls and errors, establishing scope, creating a timeline, change management, and project close.

PRINCE2 Certifications

A process-based approach to project management, PRINCE2, or PRojects IN Controlled Environments, is an international certification that offers two qualification levels.

Foundation – This certification can be a stand-alone or a prerequisite (for the Practitioner) to establish PRINCE2 practices and terminology.

Practitioner – Building from the Foundation certification, the Practitioner applies practices to specific projects and outcomes.

American Academy of Project Managers (AAPM) Certifications

CIPM (Certified International Project Manager)© –  For both project managers and project leaders, the CIPM establishes knowledge, training and skills that are multi-national.

MPM (Master Project Manager)© – A graduate-level project only for project management professionals with college degrees, the MPM is designed for senior project managers or project directors.

PME (Project Management E-Business)© – For professionals adept in management, leadership, international law, marketing/SEO, e-commerce and IT principles.

MCP (Management Consultant Professional)© – Aimed at small business owners for its ability to establish leadership expertise, organizational best practices and marketing skill, the MCP equips consultants who will oversee projects and manage their own hours.

PMP, PgMP, PfMP, CAPM, PMI-PBA, PMI-ACP, PMI-RMP and PMI-SP are registered marks of the Project Management Institute, Inc.

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7 Steps to Continuous Improvement of IT Services

Continual Service Improvement (CSI) is the final stage of the ITIL lifecycle as discussed in online ITIL training. During this process, all the services in the IT service provider are reviewed to identify whether there are any areas that can be improved upon. As discussed in ITIL online courses, the continuous improvement process is applied throughout all stages of the ITIL Lifecycle: Service Strategy, Service Design, Service Transition and Service Operation. CSI feeds into these stages and information or data from these stages also feeds into the CSI process. CSI is important to ensure that all services keep adding value to the business and its customers.

The continual service improvement (CSI) stage focuses on service improvement that supports business processes. CSI uses a seven step continuous improvement process plan which is critical for CSI and other stages of the ITIL lifecycle.

Seven Step Continuous Improvement Process

This figure shows how the seven step continuous improvement process is aligned with the PDCA cycle and DIKW hierarchy respectively. Let’s take a quick step back and review the definitions of the PDCA cycle and the DIKW hierarchy. The PDCA cycle illustrates the continuous service improvement cycle moving perpetually through the following stages: Plan-Do-Check-Act. The DIKW hierarchy illustrates how data progresses from unintelligible data to information to knowledge to wisdom. Now we can go back to the seven step continuous improvement process.

Continual Service Improvement (CSI)

Step 1: Identify the strategy for improvement

Before an improvement plan is executed it is necessary to understand the need for continuous improvement. The information related to what services or processes need to be addressed and how their performance is to be measured is gathered in the initial phase of ITIL service lifecycle i.e. in service strategy and service design. The information is gathered from a thorough understanding of business objectives and areas are identified that would benefit from continuous improvement. It also focuses on the effectiveness of the continuous improvement plan. This data is then fed into the continuous improvement plan cycle.

Step 2: Define what will be measured

It would be easy to determine which areas to measure by taking the new service level requirement, available funds and IT capabilities into account. IT capabilities are identified in service design stage and implemented via service transition. During the continuous improvement process, a gap analysis is done to identify the opportunities for continuous improvement. If CSI finds that the available tools and resource are not capable enough or if the cost is non-affordable to deliver the desired data, then the measure identified in the earlier step of the continuous improvement plan needs to be revisited.

Step 3: Gather the data

In the next step of the continuous improvement plan, data is gathered according to the goals and objectives of service operation. In order to have raw and quantitative data, monitoring should be in place. The quality of data is critical and it can be gathered through various means – manual or automatic. The data collection method has to be reliable and repeatable in order to collect quality data for continuous improvement.

Step 4: Process the data

Once the data is collected it is important to provide it to the audience in the required format. Critical Success Factors and ITIL KPI play a vital role in processing the data. The raw data is organized and divided according to its categories and operation which makes it easy to process and transform the data into information.

Step 5: Analyze the information and data

In the next step of the continuous improvement plan, the data which has been converted into information is now carefully analyzed to find gaps and its impact on business. The information is thoroughly evaluated taking into consideration all relevant internal and external factors that can directly or indirectly impact the data. The information is converted into knowledge or facts.

Step 6: Present and use the information

The analyzed data is shared with the business stakeholders in a clear and defined manner, presenting them an accurate picture of the results of the improvement plan that is implemented. CSI works closely with senior management and assists them to make strategic decisions and determine the next step to optimize and improve the service through continuous improvement processes.

Step 7: Implement improvement

As CSI has identified the areas that need a change, solutions and remedial plans are communicated to the management to improve the service. A change, thus implemented with continuous improvement sets a new baseline and the seven step continuous improvement cycle begins again.

A review of continual service improvement

We have seen at the end of the service operation stage of the ITIL service lifecycle that service performance reports were generated based on the actual outputs of the services. This is actually the point where continuous improvement starts in ITIL Service Lifecycle. Note that the continual service improvement stage is the only stage that covers and cooperates with all other four stages of the ITIL service lifecycle stages.

Based on the service improvement reports, the continual service improvement stage initiates the service measurement, service reporting, and improvement. This helps to determine the baseline of the services and processes, defining metrics, KPIs, and critical success factors, enables analysis of data and respectively corrective actions are taken to improve the gaps identified in the IT service management. The seven step continuous improvement plan is the critical process of the continuous improvement stage that helps to reach better levels in service delivery and increase the value delivered to the customer.

7 Steps Improvement Process:

Based on the processes and taken actions, a service improvement plan is generated as the output of the continual service improvement stage. This plan includes the actions and steps to follow in order to improve identified gaps and weaknesses during the continual service improvement stage.

A culture of continuous improvement is vital for every IT service provider and business that wishes to stay ahead of the game. Stagnating with outdated and inefficient services will ultimately lead to customer dissatisfaction. Furthermore, continuous improvement can save the business money by reducing waste and thereby making services more cost-effective and efficient.

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The 5 Metrics of Six Sigma

“What gets measured gets managed.”

There’s some debate about who originally said that. Many people credit the quote to management guru Peter Drucker. Others say they can trace the quote back to William Thomson, a Scottish physicist.

Regardless, the debate over who said it isn’t as important as the efficacy of the idea itself. Whoever initially said those five words was absolutely correct. Take Six Sigma, as an example.

Six Sigma is designed to change processes and systems, and can create massive, multi-faceted changes to all levels of an organization. Due to its wide-sweeping nature, organizations need to know what they’re trying to measure to see progress. Once they pinpoint a target area, they need to find the metric most likely to provide that data.

These metrics can vary by industry, company size, process type, etc. There are no right or wrong forms of measurement—they all report exactly the type of data they’re supposed to. That’s why an organization needs to be hyper-specific about the data they’re hoping to collect. Here are five types of metrics commonly measured with Six Sigma implementation:

Time

Organizations interested in tracking the length of time required to produce a product or service have a slew of metrics to which they can refer.

By measuring things like lead time (the total time it takes to develop a product and get it into the customer’s hands), the best and worse completion times for a process, or (depending on industry) on-time deliveries, companies can get a better understanding of how Six Sigma has impacted the time their employees invest in the business.

Cost

Cost is the bottom line in many organizations, and it can be measured by tracking things like labor savings or cost per product (including labor, materials and overhead) before and after Six Sigma implementation.

Quality

Efficiently producing a product or economically delivering a service doesn’t mean much without quality. Organizations can measure quality by keeping an eye on customer satisfaction, the amount of rework required to create something of value, or the percent of products considered both complete and accurate at the end of a production cycle.

Productivity

Output, in many industries, is a good indicator of organizational health. It can be tracked by measuring the production backlog (specifically, whether or not it’s growing or shrinking), unfinished products in inventory, and finished products ahead of customer demand.

Process Measures

Six Sigma is, ultimately, a process-oriented ideology. Two metrics are commonly used to measure the effectiveness of a process. The first is called Rolled Throughput Yield, and it measures how frequently a process will complete all of its required steps without any failures. The higher, the better, obviously.

The second metric is Defects per Million Opportunities (DPMO). Of every million products created, DPMO will measure how many are flawed or defective.

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DMAIC vs. DMADV

How can you deliver exactly what your customers want? By implementing the customer-focused philosophy of Six Sigma, you can learn how to cut costs, increase revenue and maintain a competitive advantage by utilizing a customer-centric approach throughout business processes.

Six Sigma encompasses a set of methodologies focused on eliminating errors and improving operations to improve products or services and achieve customer satisfaction. Two of these tools are DMAIC and DMADV. While both are similar in that they focus on efficiency and effectiveness, the methodologies are used in different circumstances.

DMAIC vs. DMADV: The Five Phases

DMAIC is best utilized when project managers and stakeholders want to improve an existing business process.

◈ Define the problem with your process or product
◈ Measure your current process and collect data
◈ Analyze your data to clarify your goals
◈ Improve your process based on your data and goals
◈ Control your new process and monitor for continued success

DMADV is associated with creating a new product or design.

◈ Define the process, parameters and design goals
◈ Measure and identify several aspects of your process or product, including production capabilities and risks
◈ Analyze and test the product or service to create a baseline for improvement
◈ Design and optimize your process details by conducting tests and comparing results
◈ Verify the chosen design for your process and implement and monitor the new process

DMAIC vs. DMADV: How Are They Similar?

During the first three phases, both methodologies focus heavily on information and fact-finding by collecting and analyzing data and other metrics. This stage of both methodologies will help drive the rest of the process by providing information to create a baseline for improvement. Ultimately, both DMAIC and DMADV will help set performance standards that can be utilized to streamline resources and achieve business goals.

DMAIC vs. DMADV: How Are They Different?

The most notable differences between the two methodologies are in the last two steps of each process. DMAIC focuses on making changes to an existing business process to eliminate or reduce defects. DMADV concentrates on designing a new product or process to match customer needs.

During measurement phases, DMAIC measures the current performance of a process as compared to DMADV, which uses customer data (including specifications and needs) as primary metrics.

DMAIC vs. DMADV: When Should They Be Used?

DMAIC is generally used to improve an existing product or process that is no longer meeting customer needs and expectations. Project managers and other professionals can utilize this methodology to fully understand why customers no longer need this product or service and how to evolve what your organization is creating.

DMADV is best used for developing new products, services and designs while keeping customer requirements in mind during every phase of the process. For example, during the “Define” stage, project leaders should use customer feedback to identify customer wants and needs. During the “Define” stage of DMAIC, it could be as simple as identifying the current processes that should be examined before moving onto the next phase.

Ultimately, both well-known Six Sigma methodologies provide a framework for project leaders and professionals to make business process improvements and make a positive impact on your organization.

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Six Sigma vs. Lean Six Sigma

What is the real difference between Six Sigma and Lean Six Sigma?

The short answer is that the two methodologies complement one another. However, differences exist between them. When looking at Six Sigma vs. Lean Six Sigma, it’s important to understand the goals and tools used by both.

What is Six Sigma?

Six Sigma is a process improvement methodology that focuses on eliminating defects. The goal is to have only 3.4 defects per one million opportunities in any process.

Motorola first began using the methodology in its manufacturing plants in the 1980s. The data-driven process helped the company earn record profits.

DMAIC

Standing for define, measure, analyze, improve, control, DMAIC is used to improve existing processes that do not meet an organization’s standards for limited defects and overall efficiency. It works as follows:

◈ Define the nature of a process defect, as well as the goal for the process
◈ Measure every aspect of the process using data from current operations
◈ Analyze to find root causes that are leading to the defect
◈ Improve the process using this information and eliminate the defect
◈ Control the process to maintain and sustain improvements

DMADV

This focuses on steps used to create a process that results in a new product or service. The acronym stands for define, measure, analyze, design, verify. It works as follows:

◈ Define the process goal
◈ Measure every aspect of the proposed new process
◈ Analyze the data to create options for the process, eventually choosing the best one
◈ Design the new process and test its efficiency and quality
◈ Verify the design through pilot projects before the final process is initiated

The overall goal of Six Sigma is to eliminate defects. Too many defects lead to inferior products and services. It also erodes consumer confidence in a product.

What is Lean?

While Six Sigma focuses on eliminating defects, Lean Six Sigma focuses on bringing value to customers. Every aspect of an operation is analyzed through this lens.

Lean also focuses on moving quickly with process improvement, sustaining what works and changing what doesn’t work.

Lean operates under five main principles.

◈ Evaluate every process from the view of whether it provides value to the customer
◈ Identify every step in a process and eliminate those that don’t add value
◈ Create a schedule so that the value-adding activities work smoothly together and within a specified timeframe
◈ Incorporate feedback from customers that adds further value
◈ Focus on continuous improvement to the process, moving it closer to perfection over time with all wasteful activity eliminated

The Eight Wastes

The most important aspect of Lean is identifying waste. Lean organizes wasteful activities into eight categories:

◈ Defects: Process errors
◈ Over-Production: Having more product than needed or producing it before it is needed.
◈ Waiting: Time wasted waiting for the next process step
◈ Non-Utilized Talent: Not properly using employee’s knowledge and skills
◈ Transportation: Unnecessary movement of products and materials
◈ Inventory: Having products or materials that are going unused
◈ Motion: Unnecessary movements by workers
◈ Extra-Processing: Providing a higher standard or larger amount of work than necessary

Lean Six Sigma vs. Six Sigma

Lean and Six Sigma work best when combined, which is why Lean Six Sigma was created.

Lean focuses on creating processes and governing all operations from the standpoint of whether all activities benefit the customer. Six Sigma takes a process and analyzes it to create the most efficient and waste-free operation possible.

Used in tandem, they offer a powerful force. While Six Sigma started in manufacturing, it now is applied to many different operations in a variety of industries, including healthcare, software development, pharmaceutical, manufacturing, nonprofit agencies and government agencies.

Lean has the same track record. With its emphasis on working fast and always focusing on the customer, it has especially taken hold in technology. But it works well across every industry, as well.

Mastery Levels of Lean Six Sigma

The levels of certification in Lean Six Sigma are White, Yellow, Green, Black and Master Black Belt.  White and Yellow provide basic training in the language and strategies involved in Six Sigma. Green Belts typically work as assistants on projects with Black Belts, who act as project leaders.

Master Black Belts have attained mastery over Six Sigma methods and gained the experience of leading many successful projects. They typically work on Six Sigma projects full-time and play a key role in improving an organization’s operations, working directly with top executives.

While differences exist between Six Sigma and Lean, the two work toward the same goals of increased efficiency and better products. Learning the methodology can put an employee in a great position to move into key management roles within an organization.

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What is the ITIL service lifecycle?

To sustain high levels of business performance, organisations need to offer competitive products and services that customers will value, buy and use. Adapting quickly to changes in the economic climate and in the market place is of real importance. All services offered should enable business transformation and growth.

ITIL Service Management supports this transformation through the use of the Service Lifecycle, which is split into 5 distinct lifecycle stages:

◈ Service Strategy
◈ Service Design
◈ Service Transition
◈ Service Operation
◈ Continual Service Improvement

Each stage relies on service principles, processes, roles and performance measures, and each stage is dependent on the other lifecycle stages for inputs and feedback. A constant set of checks and balances throughout the Service Lifecycle ensures that as business demand changes with business need, the services can adapt and respond effectively to them.

Service Strategy

Service Strategy sits at the core of the Service Lifecycle and focuses on ensuring that our strategy is defined, maintained and then implemented. There is key guidance for Executive Managers’ around operating according to the business constraints, corporate governance and compliance, legislation, and some cultural aspects of organisational transformation. The focus will enable practical decision making, based on a sound understanding of the offered services, with the ultimate aim of increasing the economic life of all services.
Service Strategy is about ensuring that organisational units in support of the business are in a position to handle the costs and risks associated with their service portfolio, and that they are set up for service improvement.

Service Design

At this stage, the focus shifts to converting the strategy into reality, through the use of a consistent approach to the design and development of new service offerings:

◈ A consistent use of a common architecture
◈ Understanding and translating the business requirements
◈ Introducing the appropriate Support requirements upon implementation of the service

The scope of Service Design is also not limited to new services; it includes any changes and improvements necessary to increase or maintain value to customers over the lifecycle of services, such as improved continuity of a service, or improvements necessary to enhance service hours and service levels. Changes required because of new conformance standards and regulations are also relevant as are services bought off the shelf from suppliers.

Service Transition

As design and development activities are completed, there is a period for Service Transition with its key purpose to bridge both the gap between projects and operations more effectively, but also to improve any changes that are going into live service, even if it is transferring the control of services between customers and service providers. The Service Transition stage brings together all the assets within a service and ensures these are integrated and tested together. Its focus is on the quality and control of the delivery of a new or changed service into operations. Giving sufficient time and quality effort to this stage of the lifecycle will reduce unexpected variations in delivery of the live services.

Service Operation

The operational teams ensure there are robust end-to-end practices which support responsive and stable services. They provide on-going support unit and they are a strong influencer on how the business perceives the service it receives. A key part of this is the Service Desk that directly own and support incident management and request fulfilment for users, including feedback on user satisfaction. Supporting functions to the Service Desk include business support and administration teams. Specific to IT, there are Application Management, and Technical support teams that contribute to the successful resolution of major incidents that affect the business.

Continual Service Improvement

Continual Service Improvement works with the other four stages of the service lifecycle to align the services with the business needs, whilst recognising improvement opportunities and change.

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