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OpEx Strategy Planning and Deployment Training Module

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The Operational Excellence Strategy Planning and Deployment Training Module v6.0 includes: …

The Operational Excellence Strategy Planning and Deployment Training Module v6.0 includes:

1. MS PowerPoint Presentation including 97 slides covering our Strategy Planning and Deployment Process, including Introduction to Strategy Planning, Organizing the Process, Current State Analysis (CSA), Strategic Vision Elements, Strategic Breakthrough Objectives, Strategic Initiatives and Tactics, Strategy Deployment Matrix, and Strategy Implementation and Review.

This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation and supporting templates.

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    • 1. 1 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 – v6.0 Operational Excellence – Strategy Planning & Deployment by Operational Excellence Consulting LLC
    • 2. 3 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 – v6.0 Strategic Planning and Deployment - Facts  Only 5% of the workforce understands their company strategy.  Only 25% of managers have incentives linked to strategy.  60% of organizations don’t link budgets to strategy.  86% of executive teams spend less than one hour per month discussing strategy. – Source: Balanced Scorecard Collaborative Strategy is an expression of what an organization intents to do to get from a current state to a future state. Strategy is often expressed in terms of a mission and vision statement, initiatives, objectives and goals. It is usually developed at the top levels of the organization, but executed by lower levels within the organization.
    • 3. 5 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 – v6.0 Strategic Planning and Deployment - The Non-Strategy Issue by John S. Hamalian Lack of a proper strategy is a serious problem that can result in ad hoc improvements that don't contribute to the organization’s overall needs.  Non-Strategy #1: ‘The Wall Placard Strategy’  Some organizations will go to great lengths to create great Vision and Mission statements, but then their planning stops there.  Non-Strategy #2: ‘The Stratospheric Strategy’  These strategies start in the clouds and they never come down, making them extremely difficult to make actionable. The result will usually be some nice slick-looking verbiage for the organization’s website and annual reports.  Non-Strategy #3: ‘The KPI Strategy’  When asked to present their strategies, some organizations excitedly pull out a beautiful PowerPoint slide that states their goals in terms of a metric. Examples are ‘double revenue in three years’ or ‘achieve 20% margin by 2013’. This is not a strategy.  Non-Strategy #4: ‘The Govern-less Strategy’  Some strategies are actually quite well constructed, but they miss one crucial element: a governance process. A strategy is worthless unless it has a clear process on who will lead the reviews, what specifically will be covered and what the frequency will be.
    • 4. 7 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 The 3 Value Propositions or Disciplines Market leaders choose to excel in delivering extraordinary levels of one of these three value propositions, while maintaining reasonable standards in the other disciplines. Organizations pursuing an Operational Excellence strategy, strive to deliver a combination of quality, price, and ease of purchase and service that no other organization in their market or industry can match. Operational Excellence: Companies that emphasize operational efficiency usually provide certain value attributes, such as competitive pricing, on-time delivery, or superb quality. Customer Intimacy: Other companies may create value for customers through their great relationship with the customer. Product Leadership: Finally, some companies may add value by emphasizing innovative and unique products and / or services.
    • 5. 9 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategic Planning & Deployment – Table of Content  Strategic Planning & Deployment Process  Organizing the Process  Current State Analysis (CSA)  Strategic Vision Elements  Strategic Breakthrough Objectives  Strategic Initiatives & Tactics  Strategy Deployment Matrix  Strategy Implementation & Review
    • 6. 11 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategic Planning & Deployment – Table of Content  Strategic Planning & Deployment Process  Organizing the Process  Current State Analysis (CSA)  Strategic Vision Elements  Strategic Breakthrough Objectives  Strategic Initiatives & Tactics  Strategy Deployment Matrix  Strategy Implementation & Review
    • 7. 13 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategic Planning & Deployment – Terminology Part I Mission: A brief description of a company's fundamental purpose. A mission statement answers the question, "Why do we exist?“. Vision: An overall statement of how the organization wants to be perceived by it’s stakeholders over the long-term (3 to 5 years). Strategic Goal: A statement of an overall achievement that is considered critical to the future success of the organization. Strategic goals express where the organization wants to be. Strategic Objective: What specifically must be done to execute the strategy; i.e. what is critical to the future success of our strategy? What the organization must do to reach its strategic goals! Another term for objectives within a strategic planning framework is to call these "enabling goals", since they will contribute to the achievement of the larger strategic goal they enable. Strategic Initiative: A major strategic thrust for the organization, such as maximizing shareholder value or improving the efficiency of operations. Strategic initiatives define the scope for building the performance management system.
    • 8. 15 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Strategic Planning: Vision, Goals & Objectives Goal #1: Land on the moon and return safely to earth by the end of the decade. … Vision: Have the most advance and successful Space Program in the world. Objective #1.1 Develop safe launch and reentry vehicles Objective #1.x Maintain a ground infrastructure
    • 9. 17 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategic Planning & Deployment – Table of Content  Strategic Planning & Deployment Process  Organizing the Process  Current State Analysis (CSA)  Strategic Vision Elements  Strategic Breakthrough Objectives  Strategic Initiatives & Tactics  Strategy Deployment Matrix  Strategy Implementation & Review
    • 10. 19 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategy Planning & Deployment – Business Excellence Models Some organizations are using Business Excellence Models like the Malcolm Baldrige Criteria to structure their Current State Analysis and assess themselves against a well established performance excellence benchmark.
    • 11. 21 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategy Planning & Deployment – Current State Analysis Leadership “The Driver” Customer “The Focus” “The System” Process Management People Operating Philosophy: Leaders build their business system so that it focuses on the customer and delivers excellent results. The business system is a set of processes that work together to produce an output that meets or exceeds the requirements of its customers.
    • 12. 23 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Enterprise Business Process Modeling – APQC Model American Productivity & Quality Center (APQC) Process Categories 1 Develop Vision and Strategy 2 Develop and Manage Products and Services 3 Market and Sell Products and Services 4 Deliver Products and Services 5 Manage Customer Service 6 Develop and Manage Human Capital 7 Manage Information Technology 8 Manage Financial Resources 9 Acquire, Construct, and Manage Property 10 Manage Environmental Health and Safety (EHS) 11 Manage External Relationships 12 Manage Knowledge, Improvement, and Change 1 Develop Vision and Strategy 1.1 Define the business concept and long-term vision 1.1.1 Assess the external environment 1.1.2 Survey market and determine customer needs and wants 1.1.3 Perform internal analysis 1.1.4 Establish strategic vision 1.2 Develop business strategy 1.2.1 Develop overall mission statement 1.2.2 Evaluate strategic options to achieve the objectives 1.2.3 Select long-term business strategy 1.2.4 Coordinate and align functional and process strategies 1.2.5 Create organizational design (structure, governance, reporting, etc.) 1.2.6 Develop and set organizational goals 1.2.7 Formulate business unit strategies 1.3 Manage strategic initiatives 1.3.1 Develop strategic initiatives 1.3.2 Evaluate strategic initiatives 1.3.3 Select strategic initiatives 1.3.4 Establish high-level measures
    • 13. 25 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Tool Box: Brainstorming Brainstorming is used to generate a large number of ideas in a short period of time.  Step 1: Review the topic or problem to be discussed. Make sure the entire team understands the subject of the brainstorm. Clarify if you are looking for potential root causes or possible solutions.  Step 2: Allow a couple of minutes for everyone to think about the task and write down some ideas.  Step 3: Invite the team members to call out their ideas, randomly or in turns around the table. Make sure that the team builds upon each others ideas (1 + 1 = 3), but do not allow discussions or evaluations.  Step 4: Record all ideas, e.g. on post-its, and stick them on a flip chart visible to everyone.  Step 5: Continue with Step 3 and 4 until several minutes silence produces no more.
    • 14. 27 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Tool Box: SWOT Analysis A SWOT Analysis is an examination of the internal strengths (S), weaknesses (W), external opportunities (O), and threats (T) affecting an organization. Harmful (to achieve future business success) Helpful (to achieve future business success) InternalFactors (attributesoftheorganization) ExternalFactors (attributesoftheenvironment) S W O T Weakness ThreatsOpportunities Strength
    • 15. 29 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Tool Box: Criticality Matrix A Criticality Matrix is a useful tool to assess and visualize the “Significance” and “Probability of Occurrence” for potential or perceived threats (T) identified during the development of the SWOT Analysis. Most Current State Analysis will generate 8 – 12 critical issues that will need to be considered during the strategic planning process. Probability of Occurrence High Medium Low High Medium Low CRITICALITY ANALYSIS Significance
    • 16. 31 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Current State Analysis (CSA) – Summary Inputs: • Current Strategic Goals and Objectives (if available) • Actual vs. Planned Performance for Key Performance Indicators • Enterprise Process Architecture • Organizational Design • Customer Needs and Satisfaction • Current Products / Services Performance • Markets and Distribution Channels • Competitor Analysis • STEEP Factors • … Activities: • SWOT Analysis • … Outputs: • SWOT Analysis • TOP 10-12 Critical Issues & Challenges • … Strategic Planning – Current State Analysis
    • 17. 33 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Characteristics of a Good Vision A Vision should meet several tests:  A Vision is grounded in the reality of the organization’s Current State; meaning, it recognizes challenges that the organization now faces as having somehow been resolved in the ideal future.  A Vision creates some significant problems and challenges for the organization.  A Vision must reflect the interests of the organization’s stakeholders (owners, employees, customers, suppliers).  A Vision should be the result of the integrated thinking of the leadership team, rather then a collection of individual visions, means it is indeed a Shared Vision. Most organizations prefer a finite time-frame of a vision, usually three to five years.
    • 18. 35 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Tool Box: Affinity Diagram An Affinity Diagram organizes large numbers of ideas or findings into their natural relationship and taps the team’s creativity and intuition. Step 1: Record each idea/finding on a separate Post-It note and stick it to on a flip chart. Step 2: Look for ideas/findings that seem to be related and place then side by side, until all ideas/findings are grouped. Very important is that no one talk during this exercise. Step 3: Select a heading for each group and write it on a separate Post-It note. You can talk during this step. Step 4: Ensure that every idea/finding in a group aligns with the heading. Make final adjustment if necessary. Quality is becoming globalized Non-user friendly products are unacceptable Need for providing complete service Unreliability in products is not tolerated TQM-aware customers are becoming common Demand for high- quality, low- cost goods increasing Technology is no longer “awe-inspiring” Brand- awareness does not guarantee customer loyalty Market different- tiation is becoming less of an issue Individual custom- ization is becoming more of an issue Need for meeting all requirements is severe Happy to pass on good product/ service stories Instant, intuitive usability becoming requirement Local service must be available immediately Replacement parts/ product expected within 24 hours Easily contacted by telephone or fax Extended warranty expected Questions answered quickly and correctly Complete customer education/in for- mation provided Happier to pass on poor product/ service stories Low-tolerance for inadequate service; likely to return prod Vision Elements
    • 19. 37 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 The Visioning Process - Catchball The Vision must be “bought into” by all members of the organization.  An effective way to do this is to share the Vision as an Affinity Diagram with all other members of the organization, and encourage additions to the preliminary version, e.g. in form of additional Post- itsTM in a different color.  Link this process step with a strategic planning road show to explain the overall planning process to your organization.
    • 20. 39 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Group Work: The Visioning Process The Task:  Create a “Vision Question” for your organization.  As a team, brainstorm answers to the Vision Question and record them on Post-itsTM with a bold pen. The usual rules of brainstorming apply.  Place the Post-itsTM on a flip chart and develop an Affinity Diagram to synthesize the high level Vision Elements.  Agree on the next steps to communicate the Affinity Diagram and Vision Elements, e.g. strategic planning road show.  Agree on a timeline to create a vision statement from the Vision Elements for your organization.
    • 21. 41 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategic Planning & Deployment – Table of Content  Strategic Planning & Deployment Process  Organizing the Process  Current State Analysis (CSA)  Strategic Vision Elements  Strategic Breakthrough Objectives  Strategic Initiatives & Tactics  Strategy Deployment Matrix  Strategy Implementation & Review
    • 22. 43 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Tool Box: Strategic Grid Correlation Matrix The Strategic Grid Correlation Matrix is a tool an organization can use to assess and visualize the correlation between its core processes & key performance indicators and the defined vision elements. Core processes with a strong correlation to the identified vision elements need to be highlighted and if necessary improved or reengineered to ensure long-term competitiveness. DevelopVisionandStrategy MarketandSellProductsandServices DeliverProductsandServices ManageCustomerService DevelopandManageHumanCapital ManageInformationTechnology ManageFinancialResources Acquire,Construct,andManageProperty ManageEnvironmentalHealthandSafety(EHS) ManageExternalRelationships ManageKnowledge,Improvement,andChange Financials Customer InternalBusinessProcesses Learning&Growth Vision Element #1 No Correlation Vision Element #2 Vision Element #3 Weak Correlation Vision Element #4 Vision Element #5 Medium Correlation Vision Element #6 Vision Element #7 Strong Correlation Vision Element #8 Critical Processes To what extent do our Critical Processes support our Vision Elements? 20xx Vision Elements Critical Success Metrics How well do we measure the Vision Elements?
    • 23. 45 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Tool Box: Radar Chart A Radar Chart can be used to assess the gap separating the desired future state from the current reality with respect to each Vision Element. • Each of the “Assessors” defines the gap between the future vs. current state for each Vision Element on a scale from “0” to “10”, with “0” representing total lack of the specific Vision Element and “10” representing “perfect” current performance. • The “green” radar plots represent the individual scores from each assessor for each Vision Element. • Vision Elements with a large variation between the individual scores require further analysis, as this indicates significant differences in opinions. • The “red” radar plot represents the average score for each Vision Element. • Vision Elements with the lowest average scores are candidates for breakthrough objectives. Vision Element Gap Analysis 0 1 2 3 4 5 6 7 8 9 10 Vision Element #1 Vision Element #2 Vision Element #3 Vision Element #4 Vision Element #5 Vision Element #6 Vision Element #7 Vision Element #8 Vision Element #9 Vision Element #10 Vision Element #11 Vision Element #12 1/17/2015 - v6.0
    • 24. 47 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Group Work: Strategic Breakthrough Objectives The Task:  If applicable, create a Strategic Grid Alignment Matrix for your current Vision Elements/Strategic Objectives, Key Performance Indicators and ongoing Programs/ Projects. Identify any misalignment or gaps.  Create a Strategic Grid Correlation Matrix for your new Vision Elements, Core Processes and Balanced Scorecard Dimensions. Document any key findings or observations.  Perform an individual and team Gap Analysis using a Radar Chart. Document any key findings and discussion points, especially if the individual gap analysis results show significant variation.  Create an Interrelationship Diagram for the new Vision Elements. Identify the basic causes or vision drivers and compare the results with the results from the Gap Analysis. Document any key findings.  Define Strategic Breakthrough Objective(s)
    • 25. 49 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategic Planning & Deployment – Table of Content  Strategic Planning & Deployment Process  Organizing the Process  Current State Analysis (CSA)  Strategic Vision Elements  Strategic Breakthrough Objectives  Strategic Initiatives & Tactics  Strategy Deployment Matrix  Strategy Implementation & Review
    • 26. 51 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Strategic Focus Areas & Objectives Strategic Breakthrough (Hoshin) Objective Strategic Focus Area(s)  By the year 2012, our organization will have the most innovative product line of smart phones.  Product Innovation  By the year 2014, customer turnover will decline by 30% through newly created customer service representatives and pro-active customer maintenance procedures.  Customer Satisfaction  Customer Support Processes  Operating downtimes will get cut in half by cross training front line personnel and combining all four operating departments into one single service center.  Operational Efficiency  Competence Development  Organizational Design  Over the next six months, delivery times will decrease by 15% through more localized distribution centers.  Lead Time Reduction  Operational Efficiency  Distribution Management Collectively, you want to limit our strategic objectives and focus areas to no more than four to five. This helps ensure successful implementation of your organization’s strategic vision. Some common strategic focus areas are: Customer Service, Shareholder Value, Operational Efficiency, Product Innovation, and Social Responsibility.
    • 27. 53 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Strategic Grid & Model Basic Flow of a Strategic Focus Area within the “Financials” Dimension We will flow our strategic objectives down each balanced scorecard perspective within a grid of boxes, making sure everything is linked. This grid will serve as the foundation for constructing the Balanced Scorecard. Strategic Focus Area: Increase Shareholder Value Financials Revenue Growth of 20% by 2014 Operating Cost Improvements of 15% by 2014 New Sources of Revenue Increase Customer Profitability Lower Operating Costs High Utilization of Assets
    • 28. 55 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Tool Box: Brainstorming Brainstorming is used to generate a large number of ideas in a short period of time. Step 1: Review the topic or problem to be discussed. Make sure the entire team understands the subject of the brainstorm. Clarify if you are looking for potential root causes or possible solutions. Step 2: Allow a couple of minutes for everyone to think about the task and write down some ideas. Step 3: Invite the team members to call out their ideas, randomly or in turns around the table. Make sure that the team builds upon each others ideas (1 + 1 = 3), but do not allow discussions or evaluations. Step 4: Record all ideas, e.g. on post-its, and stick them on a flip chart visible to everyone. Step 5: Continue with Step 3 and 4 until several minutes silence produces no more.
    • 29. 57 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Tool Box: Tree Diagram The Tree Diagram identifies initiatives and actions to solve a problem or implement a solution. Developing the Tree Diagram moves and organization’s thinking logically from broad objectives and goals to specific initiatives, projects and actions. Strategic Objective … Potential Strategic Initiatives … … … … … … IIIII II IIIIII I IIII Multi-Voting
    • 30. 59 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 First-Level Strategic Initiatives Strategic Goal Become the Price Leader Strategic Objective Improve Operational Efficiency Metrics Total Costs per Unit Goal < $15 Metrics Productivity Goal > 15 Units per DL Manhour Strategic Initiatives Implement Cost Reduction Programs Establish Lean Six Sigma Training Program Develop & Implement company-wide Database on Operational Performance Make – Buy Analysis for Forward Logistics, Reverse Logistics and Customer Service Reduce Bill of Material Costs Create Cost Management Competence Development Plan for all Management Teams Often, there will be dependencies among the different strategic initiatives, means, some might need to be completed before others can be initiated. It is useful to lay out these dependencies on a timeline. IIIII III IIIII I III IIIII III IIIII II
    • 31. 61 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Deployment of First-Level Strategic Initiatives  In many organizations the executive or management team would “hand-off” the first-level plan at this point of time and expect the organization(s) to somehow execute the strategic intent of the planning team.  It is a known empiric fact that strategic plans without tactical detail don’t usually get implemented very well, sometimes not at all.  To deploy the first-level strategic initiatives successfully, supporting initiatives and finally actionable tactics need to be identified and defined.  To ensure proper alignment of an organization’s strategic objectives, strategic initiatives, key performance indicators, key action items and human resources, the “Catchball” Process and the “Hoshin X-Matrix” will be introduced over the following slides.
    • 32. 63 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Deployment of First-Level Strategic Initiatives (Catchball) The “Catchball” Process  Tactics can be accomplished through a series of meetings at successively lower levels of the organization.  A very effective way to create the tactical detail is to use the brainstorming method with Post-its that we used during prior process steps. The strategy owner and the implementation team should do the brainstorming together.  After the brainstorming, the team arranges the Post-its on a timeline corresponding to the expected completion time-frame, in their logical order of completion.  Once tactics have been defined, the plan needs to be reviewed starting at the bottom of the organization, working up until the entire plan has been reviewed and is judged to be visible and self- consistent. Interdependencies, means that the completion of one task is required before another task can be started, need to be identified and visualized.  Results of the “Catchball” Process can be documented using the “Annual Plan Template”  The “Catchball” Process is the biggest difference between Hoshin Planning and Management-by- Objectives (MBO).  The Strategic Planning Process using Hoshin Planning isn’t complete until the strategic objectives and all initiatives and tactics are agreed to and thought to be visible and self-consistent by the entire organization.
    • 33. 65 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Project Selection Matrix Balanced Scorecard Project Selection Matrix KPI#1 KPI#2 KPI#3 KPI#4 KPI#5 KPI#6 KPI#7 KPI#8 Weights 20 10 15 10 5 20 10 10 100 50 30 20 100 70 30 100 Project Definition 1 Project #1 10 0 5 0 0 3 0 0 3.4 5 0 5 3.5 0 5 1.5 2 Project #2 0 3 0 5 0 0 0 0 0.8 0 5 0 1.5 3 0 2.1 3 Project #3 5 5 10 10 3 3 8 8 6.4 3 8 5 4.9 5 8 5.9 4 Project #4 0 0 10 5 0 0 5 0 2.5 0 0 10 2.0 3 3 3.0 5 Project #5 5 10 0 0 1 0 0 3 2.4 10 5 3 7.1 3 5 3.6 Ranking 0 = none Not Started 3 = low On Track 5 = medium At Risk 8= high Behind Schedule 10= very high CORRELATION MATRIX MANAGEMENTRISK TOTALRISK PROJECTSTATUS CAPITALRESOURCES DURATIONOFPROJECT TOTALEFFORT TECHNICALRISK EFFORT RISK PEOPLERESOURCES IMPACT FINANCIALS CUSTOMERS PROCESSES LEARNING& GROWTH TOTALIMPACT
    • 34. 67 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Group Work: Strategic Initiatives & Tactics The Task:  Formulate an appropriate question to brainstorm what needs to be done to achieve an identified strategic breakthrough objective.  Brainstorm answers to this question. Organize, group and title answers utilizing the Affinity Diagram tool.  Arrange the potential initiatives (usually the groups identified in the Affinity Diagram) using a Tree Diagram.  Narrow down the number of initiatives to the vital few using data if possible and multi-voting techniques.  Develop second- and third-level strategic initiatives and tactics.
    • 35. 69 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategic Planning & Deployment – Table of Content  Strategic Planning & Deployment Process  Organizing the Process  Current State Analysis (CSA)  Strategic Vision Elements  Strategic Breakthrough Objectives  Strategic Initiatives & Tactics  Strategy Deployment Matrix  Strategy Implementation & Review
    • 36. 71 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. How do we measure Performance? Try to balance your Performance Indicators:  Do it fast.  Do it right.  Do it on time.  Keep doing it.
    • 37. 73 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – Leading & Lagging Indicators  Some measurements will lead to change in your organization. These types of measurements are called leading indicators since they drive final outcomes within the organization.  Examples include customer contracts executed, service response time, and time spent with customers.  A common place to use leading measurements is within the “Internal Processes” and “Learning & Growth” dimensions.
    • 38. 75 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 The Strategy Deployment Hoshin X-Matrix The Hoshin X-Matrix is a tool that visualizes an organization’s  strategic objectives,  strategic initiatives,  key performance indicators,  key projects & action items, and  human resources requirements in one simple matrix. The Hoshin X-Matrix enables an organization to easily review the alignment of its strategic objectives, strategic initiatives, key performance indicators, key action items and human resources. The Hoshin X-Matrix, if used properly, improves the likelihood of a successful execution of the strategic plan. 7. … x 6. Initiate RFQ Process for Cusromer Service x x x x 5. Implement reliability program for new products x x x x x x 4. Establish LSS Balck Belt project for return drivers x x x x x 3. Establish & train order-to-cash process team x x 2. Identify Lean Six Sigma consulting company x x x 1. Define Lean Six Sigma Program x x x QualityManager SystemTestManager SystemsEngineeringManager CustomerSupportManager … x $15M in annualized cost savings in 2012 x x x x x x Order-to-Cash cycle time reduction of 25% x x x DSO reduction from 90 days to 45 days x x x x Return Rate reduction from 15% to less than 8% x x x … Resource Planning Operational Excellence Consulting Strategy Deployment Matrix 2012 3.ResolveTOP3productreturndrivers 4.Improveproductverificationandvalidation 5.OutsourceCustomerServicefunction 6.… 2.ReduceDSOfrom90daystolessthan45 days 1.ReduceOperatingCostsby15% 1.ImplementaLeanSixSigmaProgram 2.Map&streamlineorder-to-cashprocess Rev: <Rev#> Revised: <Date> Author: <Name> Status: Draft - Not Released 4.… 3.ImproveNetPromotorScoreto+50% Measures & Targets Action Items StrategicInitiatives StrategicObjectives Measures & Targets Action Items StrategicInitiatives StrategicObjectives
    • 39. 77 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 7. … x 6. Initiate RFQ Process for Customer Service x x x x 5. Implement reliability program for new products x x x x x x 4. Establish LSS Black Belt project for return drivers x x x x x 3. Establish & train order-to-cash process team x x 2. Identify Lean Six Sigma consulting company x x x 1. Define Lean Six Sigma Program x x x QualityManager SystemTestManager SystemsEngineeringManager CustomerSupportManager … x $15M in annualized cost savings in 2012 x x x x x x Order-to-Cash cycle time reduction of 25% x x x DSO reduction from 90 days to 45 days x x x x Return Rate reduction from 15% to less than 8% x x x … Rev: <Rev#> Revised: <Date> Author: <Name> Status: Draft - Not Released 4.… 3.ImproveNetPromoterScoreto+50% 2.ReduceDSOfrom90daystolessthan45 days 1.ReduceOperatingCostsby15% 1.ImplementaLeanSixSigmaProgram 2.Map&streamlineorder-to-cashprocess Resource Planning Operational Excellence Consulting Strategy Deployment Matrix 2012 3.ResolveTOP3productreturndrivers 4.Improveproductverificationandvalidation 5.OutsourceCustomerServicefunction 6.… Measures & Targets Action Items StrategicInitiatives StrategicObjectives Measures & Targets Action Items StrategicInitiatives StrategicObjectives The Strategy Deployment Hoshin X-Matrix Are all Strategic Objectives measured by Key Performance Indicators? Are all Key Performance Indicators driven by Strategic Initiatives? Are the Action Items aligned with the Strategic Objectives? Are the Action Items aligned with the Strategic Initiatives? Can all Action Items be resourced with existing Human Resources?
    • 40. 79 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Group Work: Strategy Deployment Matrix The Task:  Review and finalize strategic breakthrough objectives and goals  Review and finalize strategic initiatives and tactics  Identify key performance indicators (KPIs) as they relate to the identified strategic initiatives and Tactics  Develop the organization’s Balanced Scorecard(s) for critical KPIs with baseline, targets and stretch goals  Identify key projects and activities  Define project leaders and resource requirements (human and financial resources)  Develop and communicate Hoshin Kanri X-Matrix Strategic Deployment Matrix
    • 41. 81 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategic Planning & Deployment – Table of Content  Strategic Planning & Deployment Process  Organizing the Process  Current State Analysis (CSA)  Strategic Vision Elements  Strategic Breakthrough Objectives  Strategic Initiatives & Tactics  Strategy Deployment Matrix  Strategy Implementation & Review
    • 42. 83 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Date: ___/___/___ Owner: _________________ Year: _________ = Made = Missed Reason for Deviation Reason for Deviation Actual Performance GoalStrategic Initaitive or Tactic 1/17/2015 - v6.0 The Review Table PLAN DO ACTCHECK Preparing the Review Table is the responsibility of the strategy or tactic owner. He or she is also responsible for preparing the analysis of the outcomes, on backup sheets.
    • 43. 85 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 A few more things about the Review Table  Keep in mind that it is just as interesting to hear about successes as it is about “misses”, and just as valuable to the organization  The “Reason for Deviation” column contains only a summary of the analysis. The detailed analysis needs to be provided by the initiative owner as a separate document  Areas of analysis should include:  Tasks scheduled but not done  Tasks completed, but wrong or unexpected results  Motivation waning, e.g. wrong objectives, not worthy of effort and resources. Flaw in selection process.  Ensure that things gone right are highlighted and standardized, e.g. “Best Practices”  For “Misses” identify immediate countermeasures, as well as corrective and preventive actions based on proper root cause analysis
    • 44. 87 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategic Planning & Deployment – Table of Content  Strategic Planning & Deployment Process  Organizing the Process  Current State Analysis (CSA)  Strategic Vision Elements  Strategic Breakthrough Objectives  Strategic Initiatives & Tactics  Strategy Deployment Matrix  Strategy Implementation & Review  Final Multiple Choice Questions (optional)
    • 45. 89 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategy Deployment Process – Review Question #2 Strategic Planning should be used for each of the following except for: a. Finding a vision for the organization b. Determining future strategies or objectives c. Getting the organization out of crisis d. Managing the long-term future C
    • 46. 91 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategy Deployment Process – Review Question #4 The first real phase of strategic planning is: a. Issuing the Draft Plan b. Organizing the Process c. Approving the Plan d. Developing the Operating Plan B
    • 47. 93 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategy Deployment Process – Review Question #6 A good mission statement should: a. Be extremely specific for measurement b. Have references to management c. Outline the tactics of the organization d. Set direction for the organization D
    • 48. 95 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategy Deployment Process – Review Question #8 Marco Corporation has included the following statement within its strategic plan: By December 31st, the Production Department will re-align the Eastern Distribution System to better serve markets in Canada. This statement is an example of a: a. Strategic Goal b. Mission Statement c. Organizational Weakness d. Principle or Value A
    • 49. 97 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. 1/17/2015 - v6.0 Strategic Planning & Deployment The End … “Perfection is not attainable, but if we chase perfection we can catch excellence.” - Vince Lombardi