This presentation focuses on how strategy execution can make your lean six sigma efforts more strategic and sustainable. Fundamentally, a strategy execution system needs 3 main components: 1) Goal management - Hoshin planning. Hoshin is all about forcing the executive team to think about breakthrough objectives. These are those few things that will really move the business forward. This type of thinking really leads to focus and ensures that the strategy execution system is grounded in focused action rather than the usual suspects. The actual stage of Hoshin look fairly standard at face value, however it is the concepts within these stages that make Hoshin different. Catchball is an example of this. Catchball is the process of ensuring that breakthrough objectives and related planning are validated with lower levels of management before being set in stone for the period. This process increases the levels of ownership throughout the business for the goals. The focus purely on breakthrough objectives and the tight alignment and control delivered by the X matrix are also noteworthy. 2) Project and program management - operational excellence. Only those projects or actions that specifically support the achievement of the annual breakthroughs should be selected. Particualr attention should also be paid to resource planning. Hoshin is all about focus and this applies to where project resources spend their time. 3) Performance management - balanced scorecards or similar, In order to execute effectively, we do need to know at all times whether we're on track (and if not, what we're doing about it) and importantly, will the actions we're taking when aggregated get us to where we want to be? MAAR and bowling charts are excellent and much underused tools in achieving these objectives. The visibility provided in the Hoshin process enables the tools of operational excellence to be used to best effect. Early identification of deviation from the desired progress can then be acted upon. In this way, Hoshin and operational excellence fit together tightly. i-nexus is the world's leading strategy execution software tool and is specifically designed to help complex organizations to translate their aspirations into reality.

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From LSS to Business Execution…
Is Your Organization Ready to Build a Robust Business Execution System?

2. © i- n e x u s 2 0 1 0 Slide 2
Most Companies Follow A Similar Journey....
The Performance Improvement Maturity Model (PIMM)
Consider Align and
Integrate
Internalise
Scale and
ReplicateProve
PIMM
Levels
Key
Goals
Generate Enthusiasm
Demonstrate Success
Accelerate Benefit Delivery
Make Improvement Sustainable
Align Improvement With Goals
Level 0 Level 1 Level 2 Level 3 Level 4
Decision to
‘Test Water’ Via Piloting
Use of Structured
Performance Improvement
Methodology
Decision to
Commit to a Company
Wide Operational
Excellence
Program
Decision to Progressively
Shift Responsibility
for On-going
Performance Improvement
to Operational Managers
Decision to Align
Performance Improvement
Activity On a
Company Wide Basis
With Strategic Goals
Pilot Not Considered
A Success
All
Initiatives
Die
(Eventually)
Rowing Well
In The Wrong
Stream
Failure
Modes
Typical
Decisions
Push Pull

3. © i- n e x u s 2 0 1 0 Slide 3
The Topics for Today’s Webinar
How Does Business Execution
Make Your Lean Six Sigma Efforts
More Strategic and Sustainable?
Links Project Selection
To Critical Performance
Gaps
Transitions Ownership of
Improvement to Operational
Managers

4. © i- n e x u s 2 0 1 0 Slide 4
LSS + BSC + ? = Superior Execution
HoshinPlanning
Operational
Excellence
Balanced
Scorecard
s
• LSS project selection
typical driven by
operational priorities.
• Impact of LSS projects on
strategic indicators rarely
articulated.
• BSC focuses
predominantly on building
a measurement system.
• BSC doesn’t really guide
goal deployment/action
identification.

5. © i- n e x u s 2 0 1 0 Slide 5
Hoshin Planning – The Concept
方
Ho
管
KanShin Ri
針 理Direction Needle
Control
Channeling
Reason
Logic
Direction Needle, or Compass Management
Hoshin Planning is a systematic and disciplined process to align,
communicate and execute strategy by focusing on those few
breakthrough objectives that give you competitive advantage.
A ‘Vision Compass’

6. © i- n e x u s 2 0 1 0 Slide 6
Hoshin Planning – The Process
1. Establish Vision
2.
Develop 3-5 Year Breakthrough
Objectives
3.
4.
5. Implement Annual Objectives
6. Monthly Review
7. Annual Review
P
D
C
A
Reflection
Hoshin Process
in Concept
Develop Annual
Objectives
Deploy Annual
Objectives
Catch-ball
Planning

7. © i- n e x u s 2 0 1 0 Slide 7
The X Matrix – A Powerful Tool to Drive Alignment

8. © i- n e x u s 2 0 1 0 Slide 8
Catch-ball ‘handshake’ ensures commitment and
meaningful targets at every level
• What does achieving this goal
mean I/my team have to do?
• Does it need further breakdown to
be implemented?
• Given feedback from my team are
the targets achievable?
• Do I believe this action will deliver
the result expected?
• What does achieving this action
mean I/my team have to do?
• Do I have the resources to make it
happen in the time allowed?

• What are the sub-goals?
• Who needs to drive them?
• How will I track their achievement?
• What do I think are meaningful
stretch targets?
Executive

Senior
Manager
Sub-goals
and Proposed
Targets
Departmental
Manager
Sub-goals/
actions and
target timelines
Accepted goals or
counter-proposed
targets/goals
Accepted
goals/actions or
counter-proposed
timelines

9. © i- n e x u s 2 0 1 0 Slide 9
Consistent execution fundamentally depends on
being able to answer 3 questions...
1. Are we on track?
2. If we are not on track – are we
doing something about it?
3. In aggregate, will the actions
underway get us where we want
to go?

10. © i- n e x u s 2 0 1 0 Slide 10
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

11. © i- n e x u s 2 0 1 0 Slide 11
Execution Bowling Chart –
Based on the actions underway are we likely to hit our goals?

12. © i- n e x u s 2 0 1 0 Slide 12
Keeping on Track – Implementing
Countermeasures via MAAR Charts
Cause Action Owner Due Status
A Reduce instances
of A
PTD Jan
B Remove instances
of B
ABC Feb
Measure Analyse
Action
Review
Fault Resolution Cycle Time 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

13. © i- n e x u s 2 0 1 0 Slide 13
Keeping on Track – Implementing
Countermeasures via MAAR Charts
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 Delivery 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

14. © i- n e x u s 2 0 1 0 Slide 14
Keeping on Track – Implementing
Countermeasures via MAAR Charts
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 Delivery 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
• Focus on Moving the Dial
Not Just % Complete on
Action
• Focus on Elimination of Root
Cause Not Just Alleviation of
Symptom

15. © i- n e x u s 2 0 1 0 Slide 15
How can we ‘get fit’ for Business Execution?
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
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

16. © i- n e x u s 2 0 1 0 Slide 16
Business Execution – The Potential
Business Execution can:
•Motivate and align every employee
•Eliminate unnecessary internal
competition
•Focus energy on real breakthroughs
•Ensure action is followed through
•But ultimate value lies superior
results from superior execution.....
An organisation which executes well on a mediocre
strategy will always outperform an organisation that
executes badly on the most brilliantly crafted strategy.

17. © i- n e x u s 2 0 1 0 Slide 17
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

18. © i- n e x u s 2 0 1 0 Slide 18
Contact us
• www.i-nexus.com