introduction to strategy planning & deployment
TRANSCRIPT
HOSHIN KANRI
Introduction to Strategy Planning & Deployment
Make a connection:www.breakthrough-improvement.comwalshd@breakthrough-improvement.com
Contents and Agenda
1. Overview of the Strategy Deployment (SD) Process
2. Strategy Deployment & Breakthrough Objectives versus Business Fundamentals
3. 7 Step Strategy Deployment Process (Plan-Do-Check-Act):
A. Develop Strategy
B. Develop Breakthrough Objectives which drive attainment of the strategy
C. Develop Annual Improvement Priorities (AIP’s) with Targets and Resources
D. Deploy AIP’s
E. Implement AIP’s
F. Monthly Review Process
G. Annual Review Process
Strategy Deployment Process
OVERVIEW OF THE PROCESS
Conceptually….
Strategy Deployment…
• Fosters management to work ON the business, not in the business.
• Anchors into place a culture of learning and execution by fully adopting a
consistent Plan-Do-Check-Act methodology.
Engine of Execution: Plan-Do-Check-Act
Plan
◦ Identify where you want to be
◦ Capture where you currently are
◦ Clearly understand the ‘gap’
◦ Define steps to close the ‘gap’
Do
◦ Execute the plan
Check/Reflect
◦ Review execution status and understand ahead/behind
◦ Review results for understanding
Act
◦ Based on observations from Check/Reflect, establish any required course corrections and incorporate them into the Plan
What is Strategy Deployment?
The plan (which is above and beyond the annual budget).
A planning and implementation process which:
– Focuses on the achievement of (strategic) breakthrough objectives.
– Links breakthrough objectives with specific resources.
– Aligns resources within the company.
– On-going review of progress (PDCA).
– Results in specific action plans and measurements.
– Dynamic process: changes made when necessary
– Provides a means to communicate the vision.
Derived from Japan: Hoshin Kanri
“Ho” means Direction
“Shin” means Needle“Hoshin” means Compass
“Kan” means Control
“Ri” means Logic“Kanri” means Management Control
Hoshin Kanri means Control of the Organization’s Direction
Instead of reacting, we are navigating!
Strategy:
– Achieve Market Share Objectives by Becoming Counter-Cyclical
3 Year Breakthrough Objective:
– Penetrate Asian Market Place to Achieve $X of Revenue by 2006
Annual Improvement Priority Example:
– Reduce New Product Development Process
Target / Goal :
– Achieving Time to Market Improvement from 72 months to 18 months
Case Study – OEM Manufacturer
7 Phase Strategy Deployment Process
Develop Strategy
Develop Breakthrough
Objectives
Develop AIP’S, Targets,
Resources
Deploy AIP’S
Implement AIP’S
Monthly Review
Annual Review
Catchball
Lean
ToolsCounter-
measuresPlan
Do
Check/Reflect
Act
Perf
orm
an
ce
Business
FundamentalsBusiness
Fundamentals
Kaizen
Strategy
Deployment
Year 0 Year 1 Year 2 Year 3 Year 4
Business
Fundamentals
Business
Fundamentals
Business
Fundamentals
Kaizen
Strategy
Deployment
Kaizen
Strategy
Deployment
Strategic Objective
is Achieved!
Strategy Deployment Must be Focused on Results-Oriented Business Processes
(AIP’s are process focused actions to a problem)
Overview of Strategy Deployment
Kaizen = small, incremental continuous improvement
to the Business Fundamentals
Annual Plan
Process is: Result is: MBO Says:
Strategy
Deployment
says:
Bad Bad Bad Bad
Bad Good Good You got lucky!
Good Bad Bad Not Possible
Good Good Good Good
Strategy Deployment vs. Management By Objectives (MBO)
What Strategy Deployment Will Do
Force the clear identification of ‘how’ we move ourselves towards breakthrough objectives
Create an alignment of all facets of the organization on the key strategic initiatives (multi-functional teamwork)
Foster a data-oriented, fact-based culture
Reinforces the vision, but also clearly defines how we will get there (based on ‘who does what’).
What Strategy Deployment Won’t Do
Achieve results if the management process isn’t changed (Need to move to rigorous PDCA).
Achieve results if the ‘how’s’ (AIP’s) aren’t the right ones
Achieve results if the ‘how’s’ aren’t clearly defined
Replace the need for solid Business Fundamentals (also known as Daily Management)
SUPPORT STREAMS
Standard Training Courses
On Site Review + Bespoke Training
On Site Review + Bespoke Training + Transformation Support
Lean Business Partner
STANDARD TRAINING COURSES
Lean Thinking
Strategy Deployment (Hoshin Kanri)
Lean Daily Management Visual Management
Standard Work
A3 Problem Solving
Improvement / Transformation Value Stream Mapping
Kaizen
Change Management (ADKAR)
Lean Green Belt
Make a connection:www.breakthrough-improvement.comwalshd@breakthrough-improvement.com