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.

1. Hoshin Kanri:
Creating a Strategy Deployment Plan that Gets Results
Webinar
December 5, 2013

2. Welcome!
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Argentina
Australia
Canada
Denmark
France
Great Britain
Israel
India
Latvia
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Morocco
Malaysia
Netherlands
New Zealand
Norway
Qatar
Russia
Saudi Arabia
United States
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© 2013 The Karen Martin Group, Inc.

3.  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

4. Upcoming Webinars
New dates added: Feb 27, Mar 27, Apr 22, Mar 13
© 2013 The Karen Martin Group, Inc.

5. 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
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www.ksmartin.com/webinars
• The materials are available on:
– www.slideshare.net/karenmartingroup
© 2013 The Karen Martin Group, Inc.

6. © 2013 The Karen Martin Group, Inc.
6

7. 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

8. © 2013 The Karen Martin Group, Inc.

9. 70%
Organization is attempting “more than” or
“significantly more than” we can
reasonably handle.*
* Poll of 700+ Subscribers
9

10. 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

11. 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

12. Focus Law #1:
STOP DOING
Focus Law #2:
DO FEWER THINGS
AT ONCE
© 2013 The Karen Martin Group, Inc.

13. © 2013 The Karen Martin Group, Inc.

14. 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
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15. What is Your Improvement Strategy?
© 2013 The Karen Martin Group, Inc.
15

16. Annual Hoshin Planning
(Strategy Deployment)
• Builds consensus around TRUE NORTH.
• Creates organizational focus on what matters most
© 2013 The Karen Martin Group, Inc.

17. For Further Study

18. Building PDSA Capabilities
Strategy
Deployment
(Hoshin Kanri)
or A3
Value
Stream
Mapping
Daily Improvement, Projects,
& Rapid Improvement Events
© 2013 The Karen Martin Group, Inc.

19. Develop
hypothesis
Refine
Standardize
Stabilize
Conduct
experiment
Measure
results
© 2013 The Karen Martin Group, Inc.
19

20. Strategy Deployment (Hoshin Kanri)
X‐Matrix
© 2013 The Karen Martin Group, Inc.

21. 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

22. 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

23. “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

24. PLAN DEVELOPMENT PRE WORK
Gain clarity (and consensus)
around business needs.
© 2013 The Karen Martin Group, Inc.
24

25. What matters?
To whom?
Why?
25

26. 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.
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27. 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

28. Strategy Deployment:
The mechanics of a 2‐3 day
planning session
© 2013 The Karen Martin Group, Inc.

29. 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

30. Must do
Maybe
Delay
Eliminate
Step 4
Decide what
you will do;
Create Plan
© 2013 The Karen Martin Group, Inc.
30

31. 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

32. 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

33. 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.

34. 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.
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35. 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

36. 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

37. Strategy Deployment:
Necessary leadership behaviors
and cultural shifts
© 2013 The Karen Martin Group, Inc.

38. Necessary leadership mindset &
behavioral shift:
FROM: “We have all the answers.”
TO: “What do you think?”
© 2013 The Karen Martin Group, Inc.

39. 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

40. “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

41. 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.

42. 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

43. 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

44. Clarity
Consensus
Courage
Commitment
© 2013 The Karen Martin Group, Inc.
44

45. 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

46. 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

47. 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