Slides from Recent Hoshin - "Perfecting Strategy Execution" Webinar including live poll results

1. Perfecting Strategy Execution
Success through Hoshin Kanri
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2. Anthony Shingleton, Principal, BMGI
European Director for Strategy and Hoshin
Planning Execution
Country Manager for France and United
Kingdom
Confirmed Trainer, Coach and Consultant
Demonstrated success in R&D, Sales,
Business Development, Operational
Excellence, Finance, & Program
Management
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3. Agenda… 20 minutes to cover
• What is Hoshin Kanri
• What a Hoshin Plan looks like
• Top 5 Dos & Don’ts
• Why now?
• Challenges you will face
• How & Where to Start
• Questions & Answers
• Feedback
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4. What is Hoshin Planning?
So, what’s this word ‘Hoshin’ all about?
First, it’s really Japanese. Origins at the Kobe shipyards and at
Bridgestone in about 1965-67.
The Japanese is actually ‘Ho Shin Kan Ri’.
‘Shining Metal Pointing Direction’.
A Compass! A VISION COMPASS!
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5. 7 Step Hoshin Planning Process
Innovation
1. Establish Organizational Vision Tools
Strategic Planning: Develop
2. 3-5 Year Breakthrough Objectives
Catchball
3. Develop Annual Objectives
4. Deploy Annual Objectives
P
D Lean & Other
5. Implement Annual Objectives
Tools
C
A
6. Monthly Review
Self
Diagnosis 7. Annual Review
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6. Documenting the Hoshin Process
3- HOW
5- WHO
Top Level
Improvement
Priorities NOTE: Only Solid dots on a
resource deploy to the next
Annual Targets level
Breakthrough to Improve
2- HOW Objectives
FAR 3-5 Year
Breakthrough
Objectives
4- HOW RESOURCES
MUCH = Primary Responsibility
1- WHAT = Secondary Responsibility
OWNER
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7. The Top Level Matrix
Top Level Hoshin Planning Matrix
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8. Second Level Matrix
TOP LEVEL
Danaher Business System Office - Policy Deployment 1998
Improvement Priorities Cascade
Top
Level
to the Point of Action
Improvement
Priorities
Target to
Annual Improve
Breakthrough
Objectives
SECOND
3-5 Year
Breakthrough
Objectives
Resources
l Primary Responsibility
m Secondary Responsibility
LEVEL
Second Level Policy Deployment
Second
Level
Improvement
Priorities
Top
Level Target to
Improvement Improve
Priorities
Annual
Breakthrough
Objectives
RESOURCES
l Primary Responsibility
m Secondary Responsibility
ROOT CAUSE POINT OF IMPACT -
LEVEL ACTION PLAN
Cascade as many times as Second Level Policy Deployment
necessary to the Im provem ent Priority Title: *
Review Team : *
Policy Deployment Action Plan
Departm ent/Location: Managem ent Ow ner:
* *
Date: *
Next Review : *
Point of Action Level Environm ental Situation Sum m ary: *
Tim eline
Target Im provem ent
Core Objective: *
POINT
Third
= Original Plan x = Progress at Review
Level Planned 2003 Status
Im pact
Improvement Action Step/ Kaizen Events Ow ner (Lead is bold) Milestone Dates Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec ( P a st D u e i n R e d )
Priorities
Second
Level
Improvement
Priorities
Target to
Improve OF
Top
Level
Improvement
Priorities
Action
RESOURCES
l Primary Responsibility
m Secondary Responsibility
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9. Symptoms that your Organization
would benefit from this
The Organization Will See…. Common Issues That Surface
 Too many bad projects on-going. Too many top level objectives
 Very long lead-times for Objectives do not cascade deep enough
improvements. into the organization
 Constantly missed budgets and No action plans in place at the point where
forecasts. cascade ends
 Senior management vision does not Infrequent follow up
match organizational activities.
Opinion rather than fact based
 Annual objectives rolled out in March
instead of January. countermeasures
 Way too many good projects in Adding objectives at lower levels that do
process. not tie or link to previous levels.
 Year to year plans never seem to Deployment of daily management as
connect. breakthrough objectives
 Most employees never seem to feel a Targets not measurable or SMART
part of the team. Fear of stepping outside a comfort zone
 Little connection between strategy when setting stretch objectives
and continuous improvement.
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10. So where do you find yourself?
BMGI
© BMGI All rights reserved. No portion may be copied, rewritten, reproduced, or published

11. Poll Results – Question 1
What symptoms do you see in your organisation? (Tick
all that apply)
Most employees do not feel part of the team
Senior Management Vision does not match organisational
objectives
Too many bad projects ongoing
Link between strategy and improvement projects unclear
Constantly Missed Budgets and Targets
0% 10% 20% 30% 40% 50% 60% 70% 80%
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12. Poll Results – Question 2
Which common challenges have you expereienced? (tick all
that apply)
Resistance to reporting and feedback at lower levels
Too many top-level objectives
Targets are not SMART
Pile-up of objectives at lower levels of the organisation
Objectives do not cascade deep enough
0% 10% 20% 30% 40% 50% 60% 70%
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13. Dos & Don’ts
Dos Don’ts
1. Take the time to setup 1. Make this just a Tracking tool
2. Align with Budget Cycle 2. Underestimate Resistance to
3. Census all improvements change
4. Use Innovation Tools 3. Cover just Financial objectives
5. Pilot in one Business Unit 4. Forget to review the process
5. Do this “alone”
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14. 4 Growth Strategies
CONSUMER NON-CONSUMER
CURRENT JOBS
Core Market Growth Disruptive Growth
Bringing better solutions to Bring disruption by entering
existing customers to get the the low-end or new markets
job done better with lower performing,
cheaper products to non-
1 consumers 2
New Market Growth
NEW JOBS
Related Market Growth
Bringing newer solutions to
Bringing newer solutions to
perform jobs for which ad
existing customers get
hoc or no good solutions
related or ancillary jobs done 4
exist
3
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What is my best possible Future?

15. Develop 3-5 Year Objectives
Senior Mgt Breakthrough
Middle Kaizen
Mgmt
Daily
Supervisor
Management
Associate
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16. Linking to Performance
Top Level
Gillette - Policy Deployment 2003 Bowling Chart
<Name of Company >
Policy Deployment Top Level Bowling Chart
2003 YTD 2003 2003 2003 2003 2003 2003 2003 2003 2003 2003 2003 2003
PRIORITY ACT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
SAFETY
l l Plan
Act
l l QUALITY
Plan
Act
Annual Plan
Objectives Act
DELIVERY
Plan
3-5 Year Target to Act
Breakthrough Improve
Plan
Objectives
Act
COST
Benefits
Plan
Act
Plan
Act
Resources
l Primary Responsibility GROWTH
m Secondary Responsibility Plan
Act
Plan
Act
Second Level 2nd Level Policy Deployment Matrix Bowling Chart
<Name of Company >
Policy Deployments Second Level Bowling Chart
PRIORITY 1997 ACT 1998 ACT 1999 ACT JOP
2000 YTD
ACT JAN FEB MAR APR MAY JUN JUL
Im provem ent Priority Departm ent/Location:
AUG
Action Plan
Policy Deployment Action Plan
Managem ent Ow ner: * Date: **-**-02
SAFETY Title: * *
Plan
Review Team : * Next Review : **-**-02
Act
QUALITY
Environm ental Situation Sum m ary: *
Plan
l l
Act
Plan Tim eline
Target Im provem ent
Act Core Objective: *
Annual = Plan x = Progress at Review
Objectives DELIVERY Planned
Status Im pact
Plan Action Step/ Kaizen Events Ow ner Milestone Dates Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec
Act
Annual Target to
Plan
Objectives Improve Act
COST
Plan
Benefits Act
GROWTH
Resources
l Primary Responsibility
Plan
Act
Plan
Act
POINT
m Secondary Responsibility Plan
OF
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17. Top Level Initiative: Identify biomarker and proof of mechanism in 100%... Date: 8.08.08
Background: “Quality of Science” Results/Metrics:
At present, only XX% of current patients have identified biomarkers which make them good Biomarkers
PTS
candidates for phase 2 clinical trials. Our objective is to…. 16%
40%
35%
14%
This supports the Hoshin Objective of improving the quality of science as measured by
30%
increasing the PTS to 60% by 2013. 12%
10% 25%
8% 20%
6% 15%
4% 10% Bio
PTS
Hoshin : PTS 15% Bio 40% 09 5% Goal
Target Conditions: Targets 20% 50% 10
2%
0%
Goal
0%
J F M A M J J A S O N D
Best in Class Statement: Industry standard for 30% 60% 11 J F M A M J J A S O N D
Biomarkers is 35%.
PTS PTS
Industry standard for PTS is 40%, 16% 16%
14% 14%
Action Plan/ Progress to Date: Plan 12% 12%
Actual 10% 10%
8% 8%
Major Action Step J F M A M J J A S O N D Status 6% 6%
4% 4%
PTS PTS
Determine which molecules 2% Goal 2% Goal
currently have the best Bio 0% 0%
J F M A M J J A S O N D J F M A M J J A S O N D
rates.
Identify which molecules have
not identified any bio markers….
Have joint training session
with…… Issues/ Action Items:
Publish biomarker geography
map to demonstrate… Problem Counter Measure Responsibility/
Due Date
Molecule identification is behind Move Frankie to new division… Janice C.-
due to resource allocation issue. 8.30
PTS Drastically off target. See detailed counter measure Ben Franklin –
sheet 9.30
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18. 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” (“Oh
Nooo” data)
3. Clean & Simplify current state at Senior Mgt Level
4. Devise your Hoshins
5. 2nd Clean & Alignment to Hoshins
6. Proceed with completion of X Matrix for the “Future
State” in one Business Unit
7. Execute!
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19. More information on Hoshin
1-day Hoshin Strategy execution Workshops:
• Paris, FR - 22nd March (Innovation 21st March)
• Brussels, BE - 23rd May (Innovation 24th May)
• London, UK - 7th June (Running Kaizens 8th June)
• Amsterdam, NL - 21st June (Change Leadership 22nd June)
Please visit http://www.bmgi.com/training for more information on
course content.
Email: info.eu@bmgi.com
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20. Stay connected.
…on
facebook
BMGI Page
http://fr.linkedin.com/in/anthonyshingleton
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21. Perfecting Strategy Execution
Success through Hoshin Kanri
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