The document discusses operational excellence and Hoshin Kanri (a strategic planning process). It begins with an introduction to Ted Lemmers and BMGI. It then defines operational excellence and discusses why organizations should pursue it. The bulk of the document explains what Hoshin Kanri is, how the 7 step planning process works, examples of Hoshin plans/matrices, and tips for implementation. It emphasizes linking strategic objectives with continuous improvement efforts to drive operational excellence.

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Operational Excellence in
Strategy Execution
Success through Hoshin Kanri

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Agenda…
 Introduction to Ted Lemmers
 Introduction to BMGI
 Why Operational Excellence?
 What is Hoshin Kanri?
 What does a Hoshin Plan looks like?
 Top 5 Dos & Don’ts
 Why now?
 Challenges you will face
 How & Where to Start
 Questions & Answers

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Ted Lemmers, Senior Client Partner, BMGI
Married, 3 children.
10+ year NVDO Member, North
Netherlands.
Continuous Improvement Consultant.
Maintenance management, Shut down
optimization, business process
optimization.

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BMGI: 16 Years of Building Success
BMGI is an operational
strategy consulting firm
focusing on Strategy,
Innovation, Operational
Excellence and Change
Management. Our emphasis
is on the practical side of
strategy—making sure you
have clear direction and goals
while ensuring those goals
are truly achievable.
Global Business,
Local People.

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BMGI Partners with:

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From Strategy to Execution
BMGI helps you align your local and global sites around a shared
Continuous Improvement strategy and then create a plan for
successful implementation and sustainable advantage in your
daily operations.

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As usual I will start by quoting
the definition from Wikipedia,
Swati Ranganathan
“Operational Excellence is a
philosophy of leadership,
teamwork and problem solving
resulting in continuous
improvement throughout the
organization by focusing on the
needs of the customer,
empowering employees, and
optimizing existing activities in
the process.”
Operational Excellence
Operational Excellence: Defined
It is when each and every employee can see the
flow of value to the customer, and fix that flow
when it breaks down.
Apr 18, 2007
By Kevin Duggan, President, Duggan & Associates

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The phrase “Operational Excellence” speaks for itself. You can
easily explain what it means to be “operationally excellent,” but
can you explain what it takes to become operationally excellent?
The essence of operational excellence is problem solving.
Methods & Tools:
 Lean
 Lean Six Sigma
 Design for Lean Six Sigma
 Business Process Management
 Innovation and Design
 Hoshin Planning
 Daily Management
Operational Excellence By BMGI

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 A Japanese word
 Origins at the Kobe shipyards and
at Bridgestone around 1965-67
 Ho Shin Kan Ri:‘Shining Metal Pointing
Direction’
A compass!!
What is Hoshin Planning?

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7 Step Hoshin Planning Process

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Documenting the Hoshin Process
NOTE: Only Solid
dots on a resource
deploy to the next
level

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The Top Level Matrix

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Second Level Matrix

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Symptoms that your Organization Would
Benefit from this
Organizations Will See….
 Too many bad projects on-going.
 Very long lead-times for improvements.
 Constantly missed budgets and forecasts.
 Senior management vision does not
match organizational activities.
 Annual objectives rolled out in March
instead of January.
 Way too many good projects in process.
 Year to year plans never seem to
connect.
 Most employees never seem to feel a
part of the team.
 Little connection between strategy and
continuous improvement.
Common Issues That Surface
 Too many top level objectives.
 Objectives do not cascade deep enough
into the organization.
 No action plans in place at the point
where cascade ends.
 Infrequent follow up.
 Opinion rather than fact based
countermeasures.
 Adding objectives at lower levels that do
not tie or link to previous levels.
 Deployment of daily management as
breakthrough objectives.
 Targets not measurable or SMART.
 Fear of stepping outside a comfort zone
when setting stretch objectives.

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So Where do you Find Yourself?

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Dos & Don’ts
Dos
1. Take the time to setup
2. Align with budget cycle
3. Census all improvements
4. Use innovation tools
5. Pilot in one business unit
Don’ts
1. Make this just a tracking tool
2. Underestimate resistance to
change
3. Cover just financial objectives
4. Forget to review the process
5. Do this “alone”

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Breakthrough
Kaizen
Daily
Management
Senior Mgt
Middle
Mgmt
Supervisor
Operator
Develop 3-5 Year Objectives

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Linking to Performance  Operational
Excellence
Top Level Bowling Chart
Second Level
Bowling Chart
Action Plan

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Where & How to Start?
1. Raise awareness of (lack of) connection between Strategy &
Execution at Executive Management Team/Board Level
2. Build the X-Matrix of the “Current State”
3. Clean and simplify current state at Senior Management Level
4. Devise your Hoshins
5. 2nd clean and alignment to Hoshins
6. Proceed with completion of X-Matrix for the “Future State”
in one Business Unit
7. Execute!

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Questions & Answers

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Thank you
Contact details
Mail: Ted.lemmers@BMGI.com
LindedIn: nl.linkedin.com/in/tedlemmers
Phone: +31612831087