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Aligning Strategies with
Operations
by Norma Simons
presented at
The AEC Luncheon
The Ohio State University
Outline
• Food forThought
• The Path to Alignment
• Step 1: Develop a Strategy Map
• Step 2: Identify Key Performance Indi...
Food for Thought
• Can you execute your strategic plan?
• Is your organization aligned?
• Are you able to hold people acco...
Quotes
• “The most critical element in any strategy is its
translation into reality.The only true measure of
success is in...
An Organization with
Vision but Poor Alignment
Gallop Poll of 1.7 million workers found that 67%
could not answer “Strongl...
An Organization with
Vision & Alignment
There is nothing so useless as doing efficiently that
which should not be done at ...
Importance of Alignment
• Waste Reduction
• Ease of Communication
• Ability to Respond Quickly to Changes
• Improve Effici...
Senior Management
Middle Management
Workforce
Closed-Loop System
Horizontal &Vertical Alignment
© 2015 Performance Innovat...
The Path to Alignment
© 2015 Performance Innovation LLC
Step 1: Develop a Strategy Map
© 2015 Performance Innovation LLC
Step 2: Create Key Performance Measures
• Relate to the strategy
• Communicate the strategy
• Financial/non-financial meas...
Step 3: Standardize Documentation
• Structured and consistent
• Use of key tools:
-Trend chart
-Pareto chart
-8D Summary
-...
Primary Tools Used
Paynter
Chart
Pareto
Chart
Problem
Solving
Process
Trend
&
Goal Chart
© 2015 Performance Innovation LLC
Step 4: Deploy Measures
• Start at the top by defining goals &
strategies
• Translate to key measures at each
level
• Mean...
Linking Measurements
M
A
R
K
E
T
Process/Departmental
Measures
Organizational
Measures
Individual Measures
© 2015 Performa...
Step 5: Establish a Review System
• Structured and consistent
• Review of actions impacting key
measures
• Evaluate system...
Step 6: Develop a Visual Management System
• Common method of communication
• Problems more visible
• Cycle time to correc...
© 2015 Performance Innovation LLC
Components
of a
Typical
Business
Operating
System
A Structured Business Operating System
© 2015 Performance Innovation LLC
A disciplined system used to promote and
manage continuous improvement.
It focuses on the assembly and analysis of data
fo...
Some Results
• PlantTurnaround - stop loosing money in six months
• Improve cash flow by 200%
• Enhance overall company pe...
Presenter
Norma Simons
Lean Six Sigma Master Black Belt
President
Performance Innovation LLC
Novi Michigan
www.performance...
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Aligning strategies with operations

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Aligning strategies with operations

  1. 1. Aligning Strategies with Operations by Norma Simons presented at The AEC Luncheon The Ohio State University
  2. 2. Outline • Food forThought • The Path to Alignment • Step 1: Develop a Strategy Map • Step 2: Identify Key Performance Indicators • Step 3: Establish a Standard Documentation System • Step 4: Deploy Measures in all areas • Step 5: Establish a Review System • Step 6: Institute aVisual Management © 2015 Performance Innovation LLC
  3. 3. Food for Thought • Can you execute your strategic plan? • Is your organization aligned? • Are you able to hold people accountable for performance? • Do you struggle to meet financial performance at the end of the month, quarter, or year? © 2015 Performance Innovation LLC
  4. 4. Quotes • “The most critical element in any strategy is its translation into reality.The only true measure of success is in its execution. And one of the key determinants of successful strategy implementation is organisational alignment.” • “Alignment the glue to organizational performance” © 2015 Performance Innovation LLC
  5. 5. An Organization with Vision but Poor Alignment Gallop Poll of 1.7 million workers found that 67% could not answer “Strongly agree” with the statement “I know what is expected of me at work” “Great Performance is 1% vision and 99% Alignment” Jim Collins, author of Good to Great © 2015 Performance Innovation LLC
  6. 6. An Organization with Vision & Alignment There is nothing so useless as doing efficiently that which should not be done at all” —Peter Drucker © 2015 Performance Innovation LLC
  7. 7. Importance of Alignment • Waste Reduction • Ease of Communication • Ability to Respond Quickly to Changes • Improve Efficiency & Effectiveness Remember that alignment is not static Alignment is continuous © 2015 Performance Innovation LLC
  8. 8. Senior Management Middle Management Workforce Closed-Loop System Horizontal &Vertical Alignment © 2015 Performance Innovation LLC
  9. 9. The Path to Alignment © 2015 Performance Innovation LLC
  10. 10. Step 1: Develop a Strategy Map © 2015 Performance Innovation LLC
  11. 11. Step 2: Create Key Performance Measures • Relate to the strategy • Communicate the strategy • Financial/non-financial measures • Establish a Feedback mechanism. BOS © 2015 Performance Innovation LLC
  12. 12. Step 3: Standardize Documentation • Structured and consistent • Use of key tools: -Trend chart -Pareto chart -8D Summary -Paynter chart BOS © 2015 Performance Innovation LLC
  13. 13. Primary Tools Used Paynter Chart Pareto Chart Problem Solving Process Trend & Goal Chart © 2015 Performance Innovation LLC
  14. 14. Step 4: Deploy Measures • Start at the top by defining goals & strategies • Translate to key measures at each level • Means of linking strategy to tactics • Organizational alignment. BOS © 2015 Performance Innovation LLC
  15. 15. Linking Measurements M A R K E T Process/Departmental Measures Organizational Measures Individual Measures © 2015 Performance Innovation LLC
  16. 16. Step 5: Establish a Review System • Structured and consistent • Review of actions impacting key measures • Evaluate system effectiveness • Modify and close gaps. BOS © 2015 Performance Innovation LLC
  17. 17. Step 6: Develop a Visual Management System • Common method of communication • Problems more visible • Cycle time to correct problems reduced • Facilitates daily work • Promote total employee involvement • Ties to the Review System. BOS © 2015 Performance Innovation LLC
  18. 18. © 2015 Performance Innovation LLC Components of a Typical Business Operating System
  19. 19. A Structured Business Operating System © 2015 Performance Innovation LLC
  20. 20. A disciplined system used to promote and manage continuous improvement. It focuses on the assembly and analysis of data for key measures that are quickly reviewed and acted upon by a team. The Business Operating System © 2015 Performance Innovation LLC
  21. 21. Some Results • PlantTurnaround - stop loosing money in six months • Improve cash flow by 200% • Enhance overall company performance within one year • Reduce percentage defects by 50% • Improve OnTime Delivery performance from 60% to 100% • Improve inventory turns • Develop teams across functional units • Improve productivity by 40% © 2015 Performance Innovation LLC
  22. 22. Presenter Norma Simons Lean Six Sigma Master Black Belt President Performance Innovation LLC Novi Michigan www.performance-innovation.com norma@performance-innovation.com © 2015 Performance Innovation LLC

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