Driving strategic transformation programs webinar

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This presentation focuses on how to generate leadership "pull" for transformation initiatives. Those organizations less mature in their strategy execution journey tend to focus on immediate challenges together with the ROI of projects and programs. Strategic alignment is often neglected. In many ways the focus in less mature organizations is a function of the Operational excellence team's ability to control projects, but lesser ability to control or influence the more strategic issues. This ability alone is a key differentiator between those teams that don't make real progress down the maturity continuum and those that do.
So, what are the key factors for success? Firstly, the organization needs to systematically translate strategy into actionable priorities. Easier said than done. Once that's achieved, management somehow need to maintain a real focus on the execution of those priorities. Finally, the executive need to be able to make course corrections early to stay on track.
Let's look at some of the practical ways to achieve these challenging aspirations. The leading organizations are increasingly looking to implement a "closed loop" strategy execution process. The first key step is to choose an appropriate methodology to ensure goals are clear and cascaded in a systematic way. Without doubt, the best way to achieve this is to use the Hoshin planning approach. Hoshin is a structured and systematic way of linking strategic intent with the initiatives required to deliver the intent. A key tool aiding the process is the Hoshin x matrix together with A3's. We will explore the X matrix in greater detail in another presentation. You will be able to find webinars on the topic at our site - www.i-nexus.com. A3's are essentially a visual representation of progress against intent and are very useful in providing real time updates on progress and blockers. One of the key challenges faced by executives is the ability to spot non performance early - to have the leading measures in place. By influencing the leading measures, management give themselves enough time to take corrective action before its too late. As suggested in the presentation, visual management is a key element of achieving day to day focus.Having a strategy execution platform such as i-nexus helps the team to generate and manage the visual reporting required as well as provide full integration of the project initiatives to goals.

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Driving strategic transformation programs webinar

  1. 1. © i-nexus 2010 Did We Move the Dials? Driving Strategic Transformation Programs
  2. 2. © i-nexus 2010 Slide 2 Observations on Transformation Programs in 100+ Large Organisations LevelofPull Level of Maturity Size of bubble = Relative Impact on Shareholder Value Focus on Project Success Focus on Program ROI Focus on Operational Performance Focus on Strategic Alignment Big Y = Speed to Tangible Benefits Big Y = Initiative ROI Big Y = Process KPI Improvement Big Y = Business Results Improvement
  3. 3. © i-nexus 2010 Slide 3 Most organisations Follow A Similar Journey.... The Business Execution Maturity Model (BEMM) Goal Driven Process Driven Program Driven Project Driven BEMM Levels Key Goals Demonstrate Success Accelerate Benefit Delivery Make Improvement Sustainable Align Improvement With Goals Level 1 Level 2 Level 3 Level 4 We Need To Implement Some Change Projects We Need a Company-wide Transformation Program We Need Our Operational Managers to Drive Improvement We Need to Align of Transformation Efforts With Our Business Goals Typical Decisions Push Pull Predominant Change Mode
  4. 4. © i-nexus 2010 Slide 4 What is the primary way your organization measures the success of your process excellence initiatives? Hard financial benefits delivered Change in organizational culture Performance against KPIs of the program Contribution against strategic goal Increase in customer satisfaction 20122008 N=103 10 4020 30 50 60 64 7 11 5 13
  5. 5. © i-nexus 2010 Slide 5 Conceptually what do you need to succeed? Desired Business Impact Changed Process Outcomes Process, People and System Changes Needed to Achieve Changed Outcomes Ability to systematically translate strategy into actionable priorities Ability maintain a laser focus on execution Ability to systematically make course corrections as we execute
  6. 6. © i-nexus 2010 Slide 6 Practically how do we do this? Learn more – visit www.i-nexus.com Leading organizations are increasingly combining key concepts from... • Hoshin Planning – X-Matrix, Bowling Charts, A3s • Operational Excellence – Stage Gates, PDCA, Lean Six Sigma Tools • Balanced Scorecards – Strategy Maps, Cascaded Scorecards ....to create an integrated ‘Transformation’ system Closed-loop Business Execution
  7. 7. © i-nexus 2010 Slide 7 Systematically translate Objectives to Actionable Priorities Strategy Maps Hoshin X-matrices A3s/Annual Improvement Plans/Action Plans Ability to systematically translate strategy into actionable priorities
  8. 8. © i-nexus 2010 Slide 8 Strategy mapping helps you create consensus, X- matrices help you translate into actions.. Financial Customer Internal Learning Measure Target Initiative Increase Profit Maximise Utilisation Retain Customers Low Cost Offer Fast Turnaround Motivated Crew Objective Achieve Fast Ground Turnaround On Ground Time On Time Departure 25 Minutes 95% Flights Reduce Turnaround Time Strategy Map Hoshin Plan
  9. 9. © i-nexus 2010 Slide 9 Strategy Map to X-Matrix Example
  10. 10. © i-nexus 2010 Slide 10 The A3 helps those responsible for goals to charter the action plan, track the results and manage risks Ground Operations Transformation Program Background Airplane turnaround time is averaging 140 minutes. The consequence of this is poor utilization of assets and low customer satisfaction/below industry average customer retention – both of which are eroding profitability. We need to dramatically reduce turnaround time and increase on-time departures. Offloading process improvement Improved Maintenance Schedule Scoping is behind plan Process Changed Organisation Changed
  11. 11. © i-nexus 2010 Slide 11 Systematically maintain a laser focus on execution...
  12. 12. © i-nexus 2010 Slide 12 Execute against a shared plan with clear milestones and
  13. 13. © i-nexus 2010 Slide 13 Grasp the situation – utilise integrated bowling charts to track progress/impact of strategic initiatives
  14. 14. © i-nexus 2010 Slide 14 Keeping on track – Use MAAR to focus on root causes and to instigate countermeasures Dry Lot Release Date IndividualValue 28-O ct-03 20-O ct-03 11-O ct-03 01-O ct-03 21-Sep-03 11-Sep-03 02-Sep-03 24-Aug-03 15-Aug-03 07-Aug-03 01-Aug-03 100 90 80 70 60 50 40 30 _ X=61.35 UCL=92.19 LCL=30.51 1 2 Control Chart of Total Yield Phased Introduction of new insert design and new algorithm/ illusmination levels and camera orientation. Cause Action Owner Due Status A Reduce instances of A PTD Jan B Remove instances of B ABC Feb Measure Analyse Action Review On Time Departure Analysis of Root Causes Action Planning/ProgressValidation of Improvement A B C D R C J F M A M J J A S O N A 10 21 16 18 0 0 0 0 0 B 18 23 24 16 2 9 0 2 6
  15. 15. © i-nexus 2010 Slide 15 Conceptually what do you need to succeed? Desired Business Impact Changed Process Outcomes Process, People and System Changes Needed to Achieve Changed Outcomes Ability to systematically make course corrections as we execute
  16. 16. © i-nexus 2010 Slide 16 Paradigm Shift 1 - Review execution not historic performance From: Are we meeting our targets? To: Will the actions we have underway enable us to achieve our goals? FebJan Mar MayApr Jun 10 20 40 30 50 70 60 90 80 100 Action: ABC Target Date: Aug Impact: +20 UOMs Action: XYZ Target Date: Oct Impact: +35 UOMs SepJul Aug NovOct Dec
  17. 17. © i-nexus 2010 Slide 17 The Real Question is ‘Are We Likely To Hit Our Targets?’ General Display Reports & Outputs Strategy Navigator Delete Inline Edit Save Cancel Edit ViewDisassociate Business Navigator Strategy NavigatorStart CEO Selected View Business Unit Create View Show Children Hide Children Refresh Name OwnerPI TLS Trend Q1 2010 Target Actual Q2 2010 Target Forecast Q3 2010 Target Forecast Q4 2010 Target Forecast Status UOM - Example Manufacturing Business 100 80 100 85 100 85 100 90 35 40 40 10 60 70 100 102 200 157 300 100 Agreed Agreed PI60 80 PI 100 60 100 70 100 100 80 50 100 50 100 65 CEO COO Quick Filter No Filter Applied – Showing 3 Items Shift Volume Production of Product A to Low Cost Region Reduce Working Capital by 20% in XYZ Facility Reduce Inventory by $25M Inventory Turns Implement Supply Kanban.. Implement Vendor Sched.. Reduce Average Cash Collection by 15 Days Debtor Days Reduce Invoice Errors Setup New Facility in Country X - - - - - - 12 102 200 157 300 290 400Agreed #70 8.4 12 8.4 12 8.4 12 9.5Ops Manager 70 58 70 Agreed PI50 Ops Director - %55 Project Leader - %100 Project Leader Draft PI85 Finance Director Draft Days85 Financial Controller - %100 Project Leader Agreed PI100 Ops Director Agreed %100 Project Leader 44 102 200 157 300 -100 - - - - 0.1 102 200 157 300 290 4003 0.1 3 0.1 2.6 0.1 2.6 - 25 102 200 157 300 10010 45 30 68 10065 100 102 200 157 300 10085 100 85 100 100 65 102 200 157 300 290 40076 65 76 65 76 65 59 85 70 102 200 157 300 -10 100 50 - -100 55 102 200 157 300 290 40060 76 78 94 98 100 100 Scrap Rate- Agreed %30 Ops Manager Improve Process Yield - %0 Project Leader 100 102 200 157 300 290 400100 100 100 100 100 100 100 10 102 200 157 300 290 40015 20 45 80 100 100 - 65 65 65 65 Improve Process Yeild Impact: 0.4% Reduction Date: 28/09/2010
  18. 18. © i-nexus 2010 Slide 18 How can we ‘get fit’ for Business Execution? Drive Strategic and Sustainable Transformation Develop Core Execution Competencies •Causal Thinking Skills •Prioritisation/ Improvement Tools •PDCA Approach to Operational Reviews •Process Thinking Crystallize Vision/Hoshin Planning Approach •Establish Annual Hoshin Timetable •Provide Guidance on Stretch Goal Setting •Codify the Review Process •Implement Leader Standard Work Align Resource and Reward Planning •Synchronise the Budgeting/ Forecasting Process •Align With Annual Performance Reviews •Align Rewards with Catch-ball Targets Underpin With a Business Execution Platform •Create Single Version of Truth •Ensure Line-of-Sight for Every Employee •Take Effort/ Complexity out of Catch-ball/Review •Make Performance Transparent
  19. 19. © i-nexus 2010 Slide 19 How can i-nexus help you realise the full potential of Business Execution? The i-nexus on-demand Platform provides the most complete foundation available today for organisation-wide Business Execution. Our global consulting partners have a deep understanding of what it takes to establish business execution disciplines and are ready to help you build the competencies you need. Learn More: www.i-nexus.com
  20. 20. © i-nexus 2010 Slide 20 www.i-nexus.com

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