Leveraging Technology for Performance Excellence Six Sigma in

Leveraging Technology for Performance Excellence: Six Sigma in the Entrepreneurial Culture Mike Adams Director, Global Performance Xcellence Customer Service and Product Support World Services Division Microsoft Global Benchmarking Council Denver, Colorado August 6, 2003

Purpose u Approach taken in deploying and developing global management system capabilities for predictable results u Challenges of balancing entrepreneurial talents with systematic approaches u Role Six Sigma is playing in the framework u Various technologies that serve as enablers u Lessons learned

Approach u Brief intro to Microsoft Customer Service and Product Support v u u Multi-year development and integration plan Positioning Performance Xcellence (PX) and Six Sigma v u u Role in the Business of providing great products as solutions for our customers Culture; Voice of Customer, Organization Effectiveness, “Making People Great” Examples Lesson Learned

“To enable people and businesses throughout the world to realize their full potential” Performance Xcellence Vision(PSS) : “take it up”

Microsoft Customer and Product Support Services • 5 networked regional tech support centers and 42 local call centers supporting over 170 products 24 x 7 and 365 days a year • customer service and support in 36 languages/ 76 countries reaching out to customers

Global Performance Xcellence Network 10 Locations developing Performance Xcellence Experts, i. e. Six Sigma Projects; Assessments; Business Leaders

Performance Xcellence u Value to customers v v v u Organizational effectiveness v v v u Understanding the drivers and attributes Innovating around new solutions Delivering repeatable experience Agility, speed, sustainability, and transference of successful practices Balanced scorecard, Hoshin planning Systematic improvement (problem solving/ six sigma), prioritized objectives) “Making people great” v v Organizational and personal learning focused on results and how they are achieved Manage-by-fact, predictable, repeatable outcomes

Building Capabilities for Performance Excellence (PX) PHASE I (H 2 -FY 01) AWARENESS PHASE II (FY 02 -FY 03) COMMITMENT • Benchmarkingawareness of gap, tool of benchmarking • Goals influenced by competitive market gaps, benchmarking projects • Systematic, integrated improvement to competitive measures (in & out of industry benchmarking) • Hoshin Planning for sr. mgmt; balanced scorecard, assessment breakthrough areas • Strong link with Hoshin plans, fact-based, numerical contributions for planning dialogue • Initiatives have prevention, predictable outcomes • Voice of Customer; PX workshops for Sr. Mgmt • VOC- “one page wonders” • Transferring successful practices normal and systematic • Global data • Select regional PX representatives • Balance of strategic vs. tactical issues • Develop marketing and communication plan with outcome of participation on 7 step/six sigma linked to business plan goals • Standardized global processes; effectively managed with process sponsorship and process consistency • Building capabilities; delivering to business plan projects, leading six sigma/ 7 -step • “the Buzz”– employees wanting to be involved; managers leading the way PHASE III (FY 03 -04) CONNECTION • Shared measures/initiatives with value chain partners • Practical Statistical Process Control (SPC) • Increased application of skills globally with goals achievement • Six Sigma projects “normal”; expected level of performance appraisal rating • Leadership in customer service and support • Management assessments and mgmt development

Framing the Evolution of Quality excerpts of milestones TQC pre 1980 QC Circles Juran - Process centered Excellence -Reengineering orgs - Crosby - Deming TQM - Performance (Hammer) -Benchmarking (Camp) 1990 - Empowerment - FPL & Deming - Services 2000 Six Sigma - Microsoft Founded- - Baldrige approved by 1975 - Six Sigma- Motorola Congress - Restructuring US (work out) work - Self managed teams • U. S. State Award -Customer and Loyalty -Change mgmt-Educ & Health Care -Process analysis Baldrige adopted added to Baldrige globally

“Hamster Wheeling” Condition of entrepreneurial culture requiring re-balancing of complete P-D-C-A (plan-do-check-act) cycle, alignment, and creating intellectual memory of the learning.

Plan-Do-Check-Act (PDCA) Act Plan Check Do The Shewhart cycle

Entrepreneurial Balance maintain the innovation 83% 88% 92% 94. 1% 65% $ 40% #’ Balance and keep to the left! . mins A B C D E F Contribution categories other

Voice of the Customer u Customer and Partner Experience v u u u Corporate Initiative Value and Tenets Customer Focused Culture and Voice of the Customer “One-page Wonders”

Global Alignment CS at Key Initiative s 7 Businesse WW Services Peopl e Customer Service and Technical Support Scorecards Some shared metrics with Product Development (DTS) EMEA CS at Key Initiative s Peopl e Financ e Americas Financ e Asia-Pacific Japan CS at Key Initiative s Peopl e Financ e

Alignment- Hoshin Planning Strategies Strategy #1 3 year targets plan fy 03 Strategy #2 fy 04 fy 05 fy 06 Benchmarks Key initiatives Strategy #3 GOALS • Supports Vision • Strategic “Big Bets” Key initiatives FY 04 Balanced Scorecard Strategy #4 (Ingrain Performance Excellence) CSat Key Init’s People Finance Improvement teams and projects

Project Summary Hoshin Contribution/Impact - Planned vs. Actual Project S t a t u s Customer Satisfaction VSast Plan Finance DSat Actual Plan Actual Cost Plan Market Share Growth Revenue Act Plan Act P l a n Act [Project Name] [Theme] Link to business plan Project Phase DEFINE MEASURE ANALYZE Problem or Opportunity Statement: [Current Problem Statement, Updated as needed] Target Improvement: [Current Target/objective, Updated as needed] Objective: IMPROVE CONTROL OHI Plan A ct u al

Performance Xcellence Key Initiatives and metrics u Improve the strategic and business planning and review process Goals achievement, candidate development achievement, assessments scores u Strengthen management-by-fact culture v Six Sigma (Business problem solving) v v One and two sessions with prereqs Mentor real time Higher skills offered v Client satisfaction (80% top 2 box (9 pt)); project impact; project cycle time, success rate; sustained results u Institutionalize Benchmarking Key initiatives, processes with comparative benchmarks, gap closure u Process and management framework Reduced variation across global processes; management assessment scores

Asia Pacific PX Making People Great u u u Michelle La. Valle Senior Regional Business Manager, Asia Pacific Support Services, Shanghai u Launched July ‘ 02 with Asia PSS Managers GTSC Project identified opportunities to improve Knowledge Management during Case Closure. Shanghai Project Team benefited deeply from leveraging the US Enterprise Outlook Team’s work on Problem Resolution. Management Teams have more rigor around setting SMART goals and predicting reliable results. Planning for additional workshops in October and January

Japan- PX Making People Great u Days to Solution Initiative v v u • Yu Kojima Business Manager Japan GTSC u August Kick-off “Kabuki” Six Sigma project v (Megumi Enomoto) Operational Reviews applying PX Hoshin planning Management-byfact and project management

EMEA –PX Making People Great u Stronger analytical skills, data-driven decisions and a systematic approach has resulted in strong improvement in CSAT v u . . • Guido Haring GM EMEA GTSC u Fuji project; UK, France Business initiatives alignment from EMEA to a global view has improved our sharing and resource management Because of their benefits we are providing more PX tools and techniques to both management and employees to “take it up”

Americas PX Making People Great Project and Goal: • Nissa Hamilton Support Engineer Improve % Customer Sat Very Satisfied rating in Technical Support as verified from Phone Incident Survey Scores in attribute of ‘SP Communication' by a statistically significant amount: 2. 0% – Goal achieved.

Summary Technology Solutions u Manage global schedule and communication v v u Cultivate global synergy v v v u Outlook/Exchange: Free/busy automatically synchronized across time zones for quick accurate scheduling. Exchange 2000 Unified Messaging: Enables access to voicemail and email messages by using your phone or PC MS Project 2003 Web capture; Web casts- Media Player Net. Meeting: On-line meetings with members from around the world collaborating on documents in real-time. Visio: Diagramming, brainstorming, and mapping activities captured digitally for immediate sharing and editing of creative efforts. Windows 2003; Office XP; . Net: Efficient creation, commenting, and editing of team documents using document collaboration features. Optimize knowledge transfer v Share. Point Team Server: [access and permission for intellectual memory and project management documents

Lesson Learned u u u u u Link to and leverage the strengths of the local culture, including similar terminology & processes Find business owners to evangelize and drive Capture examples of success and shortcomings along the way Get ahead of data requirements, data integrity, and infrastructure early Shape value of statistics and benchmarks Make performance excellence part of the job, performance reviews and compensation Connect big picture and best practices and address the illusion of speed Automate, leverage technology Patience

Purpose Recap u Approach taken in deploying and developing global management system capabilities for predictable results u Challenges of balancing entrepreneurial talents with systematic approaches u Role Six Sigma is playing in the framework u Various technologies that serve as enablers u Lessons learned

Thank you very much !! “take it up!”