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Lunchtime Webinar Series: Scoping and Managing a Successful Hoshin Catchball Process

Anthony Shingleton

European Director at BMGI

© BMGI. Except as may be expressly authorized by a written license agreement signed by BMGI, no portion may be altered, rewritten, edited, modified or used to create any derivative works. 2

Operational Strategy Overview

• Saturate

• Incubate

• Illuminate Mental Modelling

Growth Strategy Matrix

The Innovation Portfolio

The S-Curve

• Establish Vision • Develop 3-5 Year

Breakthrough Objectives

Ambidextrous Paradox Strategy Maps Balanced Scorecard X-Matrix

• Annual Objectives • Deploy Objectives

VS Assessment Focal Area Assessment Prioritization Matrix

X-Matrix

• Deploy Objectives • Implement Objectives • Metrics • Monthly Review • Annual Review

VS Mapping Lean Six Sigma Rapid Innovation Teams WIG Teams A3 Reporting

• Process Improvement Management

• KPI’s • Rapid Problem Solving

Management Boards Improvement Dialogs Leadership Std Work PPSR

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A Quick Reminder of The Hoshin Process

7-step process Key phases

Setup Year 1: Top level X-Matrix Year 1: 2nd level X-Matrix Year 1: 3rd level X-Matrix Annual objectives for years 2-5

Execute

From quarterly to monthly reviews

Review & Improve

Annual process review

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What (Some) Companies Struggle With

Fancy 1-way cascade

Using Top Level X-Matrix only

Only create Year 1 X-Matrix No objectives for years 2-5

Complete 2nd /3rd Level for others No consultation

Run out of time Need to restart creation step for

a new financial year

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Why Is It So Important?

Without it you have …

No Ownership

No Accountability

No Leadership

No Engagement

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The “Easy” Theory

Strike or home run? 2 types of Catchball

“Horizontal” mode Catchball inside an X-Matrix

Consistency & robustness

Happens at every level

“Vertical” mode Catchball between 2 X-Matrices

Alignment & feasibility

Mainly between top & 2nd levels

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The Steps

1. Share & explain top level X-Matrix with direct reports

2. Initiate creation of 2nd level improvement priorities

3. Validate integrity of 2nd level

4. Present 2nd level to executive including questions

5. Submit 2nd level X-Matrices & questions to top level administrator (raise questions about top level)

6. Executive to present to board with questions

7. Administrator to submit questions that may arise from overlap of multiple 2nd Level X-Matrices

8. Capture voice of board and begin new iteration

9. If no changes then begin Catchball between 2nd & 3rd level

Horizontal Catchball Vertical Catchball

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Using Catchball To Validate an X-Matrix

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Using Catchball To Align On Execution

Catchball Top/2nd level

Catchball 2nd /3rd level

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How Companies Could Improve

Setup “workshop + catchball + workshop” sequence per X-Matrix level

Synchronize the creation step with annual budget process

Appoint and upskill Hoshin plan coordinator per Hoshin level

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Involve All Stakeholders

Top Level: CEO Executive team Top level Hoshin coordinator Finance team members

2nd Level: Executive member Direct reports Hoshin coordinator Finance team member

3rd Level: Functional manager Hoshin coordinator Project leaders

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Don’t Forget All The Inputs

The usual suspects:

Company Strategy

Three Year Operating Plan

Current Annual Operating Plan

Draft future Annual Operating Plan

Various Marketing, Sales and Ops

strategies

Business Cases and Project Briefs

Balance Scorecard information

Plus, company or topic or function

specific inputs.

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Understand Key Tasks

Level workshops

2 per level

Tidy up sessions multiple per level

Communication sessions One per end of validation

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Follow Schedule & Align With Financial Year

Best to agree & plan upfront 3-6 months target

Top level: create & validate Aim for 4-6 weeks

2nd level: create & validate Aim for 4-8 weeks

3rd level: create & validate Aim for 4-8 weeks

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Catchball: Critical To Success Factors

A clear understanding of effort required

Strong leadership to get the process up and running

Identification and upskilling of Hoshin coordinators

Technology for long term sustainability and tracking progress

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What Happens Next?

Deployment & “Walkabout” process

Communication to the rest of the organization Hoshin level meetings

“Townhall” briefings

Capturing, sorting and consolidating key feedback from the rest of the organization to top level

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Summary

Catchball is the backbone of the Hoshin Kanri process

Don’t take too long

You need resources to drive process

Without catchball you just have another visual way of communicating an imposed budget

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More Information | BMGI

Free Resources on www.bmgi.org

Videos on Strategic Planning https://www.bmgi.com/resources/strategic-planning-video-series

Contact BMGI:

Web: www.bmgi.com

Email: Info.eu@bmgi.com

Tel: +44(0)8703-892-221

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