OpEx Strategy Planning and Deployment Training Module

OOPERATIONALPERATIONAL EEXCELLENCEXCELLENCE
C O N S U L T I N G
1
www.Operationalwww.Operational--ExcellenceExcellence--Consulting.comConsulting.com
2/26/2014 - v5.0
Operational Excellence – Strategy Planning & Deployment
Workshop Instructor & Facilitator: Frank Adler, Ph.D.
Operational Excellence ConsultingOperational Excellence Consulting

C O N S U L T I N G
4
2/26/2014 - v5.0
Strategic Planning and Deployment
Question: Most organizations tend to have good strategic plans, but they fail
to successfully implement them.
Task: Identify at least two reasons why organizations fail to implement their
strategic plans?
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/opex-strategy-planning-and-deployment-training-module--597

C O N S U L T I N G
7
2/26/2014 - v5.0
The three 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.

C O N S U L T I N G
10
2/26/2014 - v5.0
Phase IV – Strategic Breakthrough Objectives
Strategy Planning & Deployment – Process Overview
Phase II – Current State Analysis (CSA)
Phase I – Organize the Process
Phase V – Strategic Initiatives & Tactics
Phase III – Strategic Vision Elements
Phase VI – Strategy Implementation & Review

C O N S U L T I N G
13
2/26/2014 - v5.0
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.

C O N S U L T I N G
16
2/26/2014 - v5.0
Strategic Planning & Deployment – Table of Content
Strategic Planning & Deployment Process
Organizing the Process
Current State Analysis (CSA)Current State Analysis (CSA)
Strategic Vision Elements
Strategic Breakthrough (Hoshin) Objectives
Strategic Initiatives & Tactics
Strategy Deployment Matrix
Strategy Implementation & ReviewThis document is a partial preview. Full document download can be found on Flevy:

C O N S U L T I N G
19
2/26/2014 - v5.0
Strategy Planning & Deployment – Business Excellence Models
Leadership: How upper management leads the organization, and how the organization
leads within the community.
Strategic Planning: How the organization establishes and plans to implement strategic
directions.
Customer and Market Focus: How the organization builds and maintains strong, lasting
relationships with customers.
Measurement, Analysis, and Knowledge Management: How the organization uses data
to support key processes and manage performance.
Human Resource Focus: How the organization empowers and involves its workforce.
Process Management: How the organization designs, manages and improves key
processes.
Business/Organizational Performance Results: How the organization performs in terms
of customer satisfaction, finances, human resources, supplier and partner performance,
operations, governance and social responsibility, and how the organization compares to its
competitors.

C O N S U L T I N G
22
2/26/2014 - v5.0
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

C O N S U L T I N G
25
2/26/2014 - v5.0
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

C O N S U L T I N G
28
2/26/2014 - v5.0
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

C O N S U L T I N G
31
2/26/2014 - v5.0
Improve your own Productivity – TIP #2
Stop Multi-Tasking. No, seriously — stop. Switching from task to
task quickly does not work. In fact, changing tasks more than 10
times in a day makes you dumber than being stoned. When you’re
stoned, your IQ drops by five points. When you multitask, it drops by
an average of 10 points, 15 for men, five for women (yes, men are
three times as bad at multitasking than women).

C O N S U L T I N G
34
2/26/2014 - v5.0
The Visioning Process – The Vision Question
The first step in the process is to develop a “Vision Question”
Strategic Vision Question: “It is 2014 and we are very pleased with
our strategic success; what do we look like and how did we get here?”
Strategic Vision Question: “It is 2014 and we are the market leader
in our industry; what do we look like and how did we get here?”
Tactical Vision Question: “We have designed the ideal Employee
Survey Process; what does it look like and what effect is it having on
the organization?”
Tactical Vision Question: “We are one of the
most desired organizations to work for; how do we
look like and how did we get here?”This document is a partial preview. Full document download can be found on Flevy:

C O N S U L T I N G
37
2/26/2014 - v5.0
Strategic Planning – Importance of a Communication Plan
“I sure wish I’d done a better job of
communicating with GM people. I’d do that
differently a second time around and make
sure they understand and shared my vision for
the company. Then they would know why I was
tearing the place up, taking out whole divisions, changing our whole
production structure . . . I never got this across.”
Roger Smith, CEO of General Motors (1981 - 1990)This document is a partial preview. Full document download can be found on Flevy:

C O N S U L T I N G
40
2/26/2014 - v5.0
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.This document is a partial preview. Full document download can be found on Flevy:

C O N S U L T I N G
43
2/26/2014 - v5.0
Current State Analysis (CSA)
Strategic Breakthrough (Hoshin) ObjectivesStrategic Breakthrough (Hoshin) Objectives
Strategy Implementation & ReviewThis document is a partial preview. Full document download can be found on Flevy:

C O N S U L T I N G
46
2/26/2014 - v5.0
Tool Box: Strategic Grid Alignment Matrix
The Strategic Grid Alignment Matrix is a tool an organization can use to assess and visualize
that existing (or planned) initiatives drive defined vision elements and that selected key
performance indicators are actual relevant to ensure long-term competitiveness.
Project#1
Project#2
Project#3
Project#4
Project#5
Project#6
Project#7
Project#8
Project#9
Project#10
Project#11
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
Programs and Projects
How well do our programs and projects support our Vision Elements?
20xx
Vision Elements
Critical Success Metrics
How well do we measure the Vision Elements?

C O N S U L T I N G
49
2/26/2014 - v5.0
Strategic Breakthrough Objectives – Summary
Inputs:
• SWOT Analysis
• TOP 10-12 Critical Issues &
Challenges
• Vision Elements
• Vision Statement
• …
Activities:
• Create a Strategic Grid
Alignment Matrix
• Create a Strategic Grid
Correlation Matrix
• Perform a Gap Analysis
• Modify Vision Elements (if
necessary)
• Create interrelationship
Diagram
• …
Outputs:
• Strategic Grid Alignment
Matrix
• Strategic Grid
Correlation Matrix
• Updated Vision
Elements
• Interrelationship
Diagram
• Strategic Breakthrough
(Hoshin) Objectives
• …
Strategic Planning –
Strategic Breakthrough Objectives
Strategic Planning –
Strategic Breakthrough Objectives

C O N S U L T I N G
52
2/26/2014 - v5.0
Developing First-Level Strategic Initiatives
The actions required to achieve a strategic objective are generally called
strategies or strategic initiatives.
The first step in developing strategic initiatives is to formulate an
appropriate question to brainstorm what needs to be done to achieve an
identified strategic objective.
The next step is to brainstorm answers to this question. Answers can
then be organized, grouped and titled utilizing the Affinity Diagram tool.
The team is then asked to examine the candidates for strategic
initiatives (usually the groups identified in the Affinity Diagram), and to
arrange them using a Tree Diagram.
Specially, the team is asked to form a judgment, using data if possible,
on whether each of the candidates is necessary to meet the objective.

C O N S U L T I N G
55
2/26/2014 - v5.0
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

C O N S U L T I N G
58
2/26/2014 - v5.0
Strategic Objective Strategic Initiatives Owners Measures Goals
Measure #1: …
Goal: …
Measure #2: …
Goal: …
Measure #3: …
Goal: …
Deployment of First-Level Strategic Initiatives
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.

C O N S U L T I N G
61
2/26/2014 - v5.0
Deployment of First-Level Strategic Initiatives (Catchball)
The “Catchball” Process
Lower level initiatives and 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
was 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.

C O N S U L T I N G
64
2/26/2014 - v5.0
Project Ranking Matrix
10
9
8
7
6
5
4
3
2
1
0
0 1 2 3 4 5 6 7 8 9 10
EFFORT
IMPACT
Size of the Ball = Size of the Risk
1
2
3
4 5

C O N S U L T I N G
67
2/26/2014 - v5.0
Use the phone. Email isn’t meant for conversations. Don’t reply
more than twice to an email. Pick up the phone instead.

C O N S U L T I N G
70
2/26/2014 - v5.0
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
Organization’s
Strategic
Objectives &
Goals
Organization’s Key
Performance Indicator
(Balanced Scorecard)
Organization’s
Strategic Initiatives &
Tactics
Organization’s
Tactical Projects &
Action Items
Organization’s
Human Resource
Allocation

C O N S U L T I N G
73
2/26/2014 - v5.0
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

C O N S U L T I N G
76
2/26/2014 - v5.0
Current State Analysis (CSA)
Strategic Breakthrough (Hoshin) Objectives
Strategy Implementation & ReviewStrategy Implementation & ReviewThis document is a partial preview. Full document download can be found on Flevy:

C O N S U L T I N G
79
Date: ___/___/___ Owner: _________________ Year: _________
= Made
= Missed Reason for Deviation Corrective Measures and Implications
Actual
Performance
GoalStrategic Initaitive or Tactic
2/26/2014 - v5.0
The Review Table
Statement of the
Strategic Initiative
or Tactic
Numeric Goal for the
Strategic Initiative or
Tactic
Numeric Goal for the
Strategic Initiative or
Tactic
“Flag” if the Goal of the
Strategic Initiative or Tactic
was “Made” or “Missed”
Summary of the
reasons for a deviation
Summary of the intended
corrective actions to “get
back on track”

C O N S U L T I N G
82
2/26/2014 - v5.0
Work in 60 to 90 minute intervals. Your brain uses up more glucose
than any other bodily activity. Typically you will have spent most of it
after 60-90 minutes. (That’s why you feel so burned out after super
long meetings.)
So take a break: Get up, go for a walk, have a snack, do something
completely different to recharge. And yes, that means you need an
extra hour for breaks, not including lunch, so if you’re required to get
eight hours of work done each day, plan to be there for 9.5 - 10 hours.

C O N S U L T I N G
85
2/26/2014 - v5.0
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
CThis document is a partial preview. Full document download can be found on Flevy:

C O N S U L T I N G
88
2/26/2014 - v5.0
In what phase of strategic planning does identification of strengths and
weaknesses take place?
a. Organizing
b. Approval of the Plan
c. Current State Analysis
d. Implementation
CThis document is a partial preview. Full document download can be found on Flevy:

C O N S U L T I N G
91
2/26/2014 - v5.0
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
AThis document is a partial preview. Full document download can be found on Flevy:

C O N S U L T I N G
94
2/26/2014 - v5.0
Terms & Conditions
After you have downloaded the training material to your own
computer, you can change any part of the course material and
remove all logos and references to Operational Excellence
Consulting. You can share the material with your colleagues and
re-use it as you need. The main restriction is that you cannot
distribute, sell, rent or license the material as though it is your
own. These training course materials are for your — and
your organization's — usage only. Thank you.

1
Flevy (www.flevy.com) is the marketplace
for premium documents. These
documents can range from Business
Frameworks to Financial Models to
PowerPoint Templates.
Flevy was founded under the principle that
companies waste a lot of time and money
recreating the same foundational business
documents. Our vision is for Flevy to
become a comprehensive knowledge base
of business documents. All organizations,
from startups to large enterprises, can use
Flevy— whether it's to jumpstart projects, to
find reference or comparison materials, or
just to learn.
Contact Us
Please contact us with any questions you may have
about our company.
• General Inquiries
support@flevy.com
• Media/PR
press@flevy.com
• Billing
billing@flevy.com

OpEx Strategy Planning and Deployment Training Module

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (17)

More from Flevy.com Best Practices

More from Flevy.com Best Practices (20)

Recently uploaded

Recently uploaded (20)

OpEx Strategy Planning and Deployment Training Module