Hoshin Kanri: Creating a Strategy Deployment Plan That Gets Results
 

Hoshin Kanri: Creating a Strategy Deployment Plan That Gets Results

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Recorded webinar: http://slidesha.re/1mRBbSd ...

Recorded webinar: http://slidesha.re/1mRBbSd

Subscribe: http://www.ksmartin.com/subscribe

To purchase the book: http://bit.ly/TOObk

Hoshin Kanri (also known as strategy deployment) is a highly effective way for organizations to select and prioritize the important work they need to do to realize their business goals. Done properly, the approach results in organization-wide alignment about what matters and a more focused approach for realizing results.

In this webinar, you'll learn how strategy deployment can help your organization, department, or work team accomplish far more in a given year, with far less stress and far better results. The approach also leads to far higher levels of employee engagement.

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Hoshin Kanri: Creating a Strategy Deployment Plan That Gets Results Hoshin Kanri: Creating a Strategy Deployment Plan That Gets Results Presentation Transcript

  • Hoshin Kanri: Creating a Strategy Deployment Plan that Gets Results Webinar December 5, 2013
  • Welcome! • • • • • • • • • Argentina Australia Canada Denmark France Great Britain Israel India Latvia • • • • • • • • • Morocco Malaysia Netherlands New Zealand Norway Qatar Russia Saudi Arabia United States www.ksmartin.com/subscribe © 2013 The Karen Martin Group, Inc.
  •  Coach / Facilitator / Consultant / Trainer:  Lead Lean transformations & develop people  across all industries.  Teacher: University of California, San Diego  Author & Speaker: Karen Martin, President The Karen Martin Group, Inc. www.ksmartin.com 2013 Shingo  Prize winner! © 2013 The Karen Martin Group, Inc. 3
  • Upcoming Webinars New dates added:  Feb 27, Mar 27, Apr 22, Mar 13 © 2013 The Karen Martin Group, Inc.
  • Before the webinar… • The materials are available on: – www.ksmartin.com/files/webinarmaterials/MM‐ DD‐YYYY_slides.pdf (or _handout.pdf) After the webinar… • All recordings are available on: – – – – www.vimeo.com/karenmartingroup www.youtube.com/karenmartingroup www.slideshare.net/karenmartingroup www.ksmartin.com/webinars • The materials are available on: – www.slideshare.net/karenmartingroup © 2013 The Karen Martin Group, Inc.
  • © 2013 The Karen Martin Group, Inc. 6
  • Requirements for Excellence  in ANY Endeavor To purchase Shingo award‐winning The Outstanding Organization:  www.amzn.to/VSMbk © 2013 The Karen Martin Group, Inc. 7
  • © 2013 The Karen Martin Group, Inc.
  • 70% Organization is attempting “more than” or  “significantly more than” we can  reasonably handle.* * Poll of 700+ Subscribers 9
  • Booz & Company Findings 90% 82% 80% 70% 64% 60% 50% 49% 40% 30% 20% 10% 0% No written priorities © 2013 The Karen Martin Group, Inc. Conflicting priorities Competing demands 10
  • Sporting Goods Manufacturer – Product Launches Per Year 80 73 70 No additional  resources;  higher quality  products  launched 60 50 40 30 24 20 10 0 Pre‐Focus © 2013 The Karen Martin Group, Inc. Post‐Focus 11
  • Focus Law #1: STOP DOING Focus Law #2: DO FEWER THINGS  AT ONCE © 2013 The Karen Martin Group, Inc.
  • © 2013 The Karen Martin Group, Inc.
  • A Key to Apple’s Success? “…saying no to 1,000 things  to make sure we don’t get on the  wrong track or try to do too  much. We’re always thinking  about new markets we could  enter, but it’s only by saying no  that you can concentrate on the  things that are really important.” — Steve Jobs © 2012 Karen Martin & Associates, LLC 14
  • What is Your Improvement Strategy? © 2013 The Karen Martin Group, Inc. 15
  • Annual Hoshin Planning  (Strategy Deployment) • Builds consensus around TRUE NORTH. • Creates organizational focus on what matters most © 2013 The Karen Martin Group, Inc.
  • For Further Study
  • Building PDSA Capabilities Strategy  Deployment  (Hoshin Kanri)  or A3 Value  Stream  Mapping Daily Improvement, Projects,  & Rapid Improvement Events © 2013 The Karen Martin Group, Inc.
  • Develop hypothesis Refine Standardize  Stabilize Conduct  experiment Measure  results © 2013 The Karen Martin Group, Inc. 19
  • Strategy Deployment (Hoshin Kanri) X‐Matrix © 2013 The Karen Martin Group, Inc.
  • Using A3 for Strategy Deployment:  Undergoing “Mother” (macro) and “Baby” (micro) PDSA Cycles • • • • © 2013 The Karen Martin Group, Inc. What’s the gap? What’s preventing us from meeting targets? Why? What actions do we need to take? 21
  • Strategy Deployment Plan ‐ Fiscal Year XX Last Revised: XX/XX/XX Quarterly Update:  Q1 20XX Mission ‐ Type the mission that is trying to be achieved by the organization. Performance, Gaps, and Targets Metric 20XX Actual 20XX Target 20XX Actual This Year's Action Plan Goal Success Metric 1) 2) Current Business Conditions Reflection of the current business conditions that could cause work needed to be done or work that needs to  stop.  What will be driving this years work? 3) 4) Rationale for 20XX Plans Explain how the current business conditions will affect your plans for the coming year. 5) 6) Follow‐Up / Un‐resolved Issues Anything from the current that needs to be carried over to the next year.  Why? Owner Initiative / Priority / Project A B C D E F A B C D E F A B C D E F A B C D E F A B C D E F A B C D E F Template is provided courtesy of Matt Wrye  www.beyondlean.com   Will be available for download by Thursday, December 12 – www.ksmartin.com/downloads © 2013 The Karen Martin Group, Inc. 22
  • “Hoshin‐Lite” Annual Work Plan PRE ‐ Gain clarity around overarching business needs. 1. List everything you could do (and that you are doing). 2. Categorize into: – – – – Must‐do, can’t fail Maybe Eliminate Delay (next fiscal year) 3. Decide what you will do; gain consensus. 4. Prioritize and create plan. POST ‐ Manage plan via weekly updates (may be able to reduce  to monthly reviews – but be careful!). © 2013 The Karen Martin Group, Inc. 23
  • PLAN DEVELOPMENT PRE WORK Gain clarity (and consensus)  around business needs. © 2013 The Karen Martin Group, Inc. 24
  • What matters? To whom? Why? 25
  • PLAN DEVELOPMENT PRE WORK Reflect on the organization’s current performance &                    its position in the marketplace/community. Where are                      we having  problems? What  opportunities      can we leverage?? © 2013 The Karen Martin Group, Inc. 26
  • PLAN DEVELOPMENT PRE WORK Gather lists of: • • • • • All active projects and initiatives All stalled projects and initiatives All planned projects and initiatives All desired projects and initiatives All “stealth/rogue” projects and initiatives © 2013 The Karen Martin Group, Inc. 27
  • Strategy Deployment: The mechanics of a 2‐3 day               planning session © 2013 The Karen Martin Group, Inc.
  • Label Four Flip Chart Pages & Hang on Wall Must do Maybe 1. List what you could do on  3x6” post‐its (active or  planned initiatives,  projects & improvement  activities). Gain consensus. 2. Categorize them (place  post‐it on appropriate  page. Gain consensus. Delay Eliminate 3. Decide what you will do.  (Move “maybe’s” onto one  of the other three pages.)  Gain consensus. © 2013 The Karen Martin Group, Inc. 29
  • Must do Maybe Delay Eliminate Step 4 Decide what  you will do;  Create Plan © 2013 The Karen Martin Group, Inc. 30
  • Easy Prioritization Grid 1 2 Ease of Implementation 3 4 5 6 7 8 9 10 11 12 Difficult 13 14 15 High Low © 2013 The Karen Martin Group, Inc. Anticipated Benefit
  • PACE Improvement Prioritization Grid ‐ Example Easy 9 5 22 23 10 13 17 8 3 21 4 Ease of Implementation 15 20 14 7 2 1 19 16 6 11 18 Difficult 12 Low © 2013 The Karen Martin Group, Inc. Anticipated Benefit High
  • Highest  priority Prioritization Grid 0.7 0.6 Ease of Implementation 0.5 0.4 0.3 0.2 0.1 0 0 0.1 0.2 0.3 0.4 0.5 0.6 Potential Benefit See The Outstanding Organization, p. 83 for an extensive list of prioritization considerations. © 2013 The Karen Martin Group, Inc.
  • Free Downloadable Excel Prioritization Chart  The Outstanding Organization: Achieving Focus Prioritization Chart Chart Title To use this Template: 1) Enter the title of the chart in Cell B2 2) Enter the number of items (e.g. projects, improvement activities, etc.) in cell B4 3) Enter the item name and ranking information into A8-D8 and so on. 5 Number of Items 4 Item Name 1 2 3 4 5 Execution Ease 1 3 5 7 9 Degree of Urgency* 1 2 3 4 5 Prioritization  Chart 10 9 8 Execution Ease Item Item Item Item Item Organizational Benefit 9 7 5 3 1 7 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 Organizational Benefit * Degree of urgency is indicated by bubble size. www.ksmartin.com/TOO See The Outstanding Organization, p. 83 for a list of prioritization list considerations © 2013 The Karen Martin Group, Inc. 10
  • Modified Strategy Deployment Annual Plan < Company Name > 2013 Priorities 2013 Goals & Objectives 1. Increase sales 5%. 3. Achieve 10% profit. 2. Achieve 50% gross margin. 4. Improve morale (metric TBD). X = Planned Priority 5 8 9 17 29 32 33 10 30 31 25 26 15 20 22 Content removed for confidentiality  21 ● =  Actual Jan Feb 3,500 uni ts  s ol d by 12/31/2013 through a l l  cha nnel s   (a pprox. $700K) 2 11 Goal or Measurable Objective X X X X X X Devel op & del iver tra i ni ng to top 50 Dea l ers X X X X X X X X Educa tion: 1 s chool  di s tri ct s pec'd/underperforming  COM dis tri butor (25) by 12/31 va l ued a t mi n $35K ea ch 10 new dea lers on boa rd (net) ($500K per dea l er thi s   yea r) 5 new di s tri butors  bri ngi ng $200K a nnua l  rev (& 5  termi na ted) X X X X X X X X X X X X X X Howa rd Mi cha el   S X X X X X X X X X Howa rd X X Mktg Ops 3 HR Fin 3 3 Bob 2 PE Pario COM  CDs /  PD  PD  BMD SWS Direct  AMs Rec Mgmt 3 1 1 3 2 1 3 2 3 3 3 2 3 1 3 3 3 Mi ke B 3 3 2 3 3 2 X X X X X X X X X X Howa rd Howa rd 2 3 X X X X X X X X X X Howa rd Da na 1 3 3 X X X X X X X X X Howa rd Ma rk H 2 3 Howa rd Howa rd X X X X X X X X X Howa rd Howa rd Ji m Ra nda l l Ji m Jos h TBD X X X TBD Useful  reporti ng a nd metri cs a re es ta bl i shed a nd i n  pl a ce  X X TBD X X TBD X X X X X X X X X 1 3 X X X X X X X X X Jos h Ji m  Sys tem 7.0's  i n pl a ce 1 1 X Sha nnon  1 Ji m  Ra nda l l 1 3 1 X X X Phyl l is 1 Mi cha el  M 2 Ma tt D 3 Nea l l X 1 Da na Da vi d R 1 1 1 1 1 1 1 1 1 1 1 1 1 3 2 Sus a n X 3 3 Nea l l X 3 1 Jos h X 3 1 Mi cha el  M X 3 1 1 1 1 3 Ji m TBD © 2013 The Karen Martin Group, Inc. Josh R? X X La y out compl ete; equi pment i ns ta l led 2 X X 30 pa rts  s ourced in U.S.; compl eted pl a n for ma na gi ng  Chi na ‐s ourced pa rts Wa rehous e l a id out; ka nba n revi s ed; Sys pro  i mplemented Da na Rex/Tim  X X Des ign cha nged to s ol ve dela m i ss ue  l ong‐term Bob X 20 by yea r‐end 1 14 X X 10 projects  s pec'd  by 12/31; $300K rev by 12/31 100% a ccura te pa yrol l ; 100% ma na gement s a ti sfa cti on  a t Apri l mgmt. meeting Internet ta s k l is t is  si mpl i fi ed a nd strea ml i ned for  PDs  then pl a n is  rol led out to PDs   Des ign Ca l cul a tor i s  upda ted success ful l y a nd rol l ed  out Level of Effort/Involvement Required IT Exec Owner X Competi tive Ana l ys i s  compl ete a nd di stri buted for us e 13 Aug Sep Oct Nov Dec Tactical  Owner Bob Mar Apr May Jun Jul Revis ed cours e ma teri a l s  by 6/30/2013 Plan review dates: Bob X 24 12 Created: 01‐14‐13 Revised:  1 2 3 1 1 3 3 3 2 1 X X X Susa n Sha nnon 3 X X X Susa n Sha nnon X X Susa n Da vi d R 3 2 2 3 3 X X X X X X 2 3 3 3 3 2 3 3 3 X 3 3 1 2 2 3 35
  • POST: Plan Management • Weekly status meetings to start, then 2x a month,  then monthly (required attendance). – Focus: how to turn yellow & red items into green. – Expectation: Full team helps remove obstacles. – Tone: supportive but tough. • Visibility matters: post progress physically! • Plan is adapted to changing conditions, but avoid  Org‐ADD (organizational attention deficit disorder)  and falling prey to unnecessary distractions. © 2013 The Karen Martin Group, Inc. 36
  • Strategy Deployment: Necessary leadership behaviors            and cultural shifts © 2013 The Karen Martin Group, Inc.
  • Necessary leadership mindset &  behavioral shift: FROM: “We have all the answers.” TO: “What do you think?” © 2013 The Karen Martin Group, Inc.
  • Strategy Deployment Key Feature: Catchball What? How? Who? When? Executive  Team What? How? Who? When? Year 1 Senior  Mgmt Year 2 Year 3 What? How? Who? When? Middle  Mgmt What? How? Who? When? © 2013 The Karen Martin Group, Inc. Frontlines 39
  • “Going to the gemba  has been life changing  for me as a leader.” ‐ Ginny Cattaneo, Sr. VP, Franklin Templeton Investor Services  © 2013 The Karen Martin Group, Inc. 40
  • Cascading Goals is the Means to  Organizational Alignment Organization Division/Business  Unit Department Division/Business  Unit Department Department Division/Business  Unit Department Department Department Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual © 2013 The Karen Martin Group, Inc.
  • Productivity (Pounds Produced / Hr Worked) 115.0 Pactiv Implements Strategy Deployment 108.0 105.9 101.0 95.2 93.0 94.0 90.6 87.0 84.8 86.3 80.0 FY '06 FY '07 FY '08 FY '09 FY '10 YTD '11 42
  • Rockwell Automation 25 20 20 Projects Started 15 12 12 10 5 Projects Completed 3 0 Pre‐Focus © 2013 The Karen Martin Group, Inc. Post‐Focus 43
  • Clarity Consensus Courage Commitment © 2013 The Karen Martin Group, Inc. 44
  • Avoiding the Shiny Ball Syndrome  (Organizational ADD) Requires… • Clarity – about what really  matters & organizational  direction. • Consensus – about how best  to get there. • Courage – to actively choose  to “not do” or “not do now.” • Commitment – to stick with  the plan. © 2013 The Karen Martin Group, Inc. From the Focus chapter: The Outstanding Organization, Karen Martin
  • For Further Questions Karen Martin, President 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Blog & newsletter:  www.ksmartin.com/subscribe © 2013 The Karen Martin Group, Inc. 46
  • Your Questions • How can we relate Hoshin Kanri to the  Balanced Scorecard Method for strategic  management/measurement? (Ahmad) • How does this work in a highly siloed  organization? (Anne) © 2013 The Karen Martin Group, Inc. 47