Make strategy happen with Hoshin Kanri and Toyota Kata Agile Australia

Image courtesy of the Earth Science and Remote Sensing Unit,
NASA Johnson Space Center Mission:AS11 Roll:44 Frame:6548 Composite Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

Agile Coach
Flow Sensei
The Plumber
Toyota Kata Geek
International Speaker

I’m a huge LEGO fan!
DISCLAIMER
LEGO® is a trademark of the LEGO
Group, which does not sponsor,
authorize or endorse this presentation.

Three parts of strategy execution
Stroke of
the Pen
Whirlwind
Behavior
change

Stroke of
the Pen
Controllable actions, e.g.
Expand staff
Invest in new data center
Enter new markets
Invest in new support systems
Change of vendor

Whirlwind
Every day operational work, e.g.
Incident handling
Road map delivery
Solve customer support tickets
Month end financial reporting
Staff meetings

Behavior
change
Behavioural change to achieve our strategy, e.g.
Increase customer satisfaction
Increase average revenue per game
Improve quality
Reduce staff turnover
Reduce lead time

Daily Work
Working with the
Challenge
Whirlwind
Behavioral Change, e.g.
▪ Increase customer
satisfaction
▪ Increase average
revenue per game
▪ Improve quality
▪ Reduce staff turnover
▪ Reduce lead time
Every day operational work, e.g.
▪ Incident handling
▪ Road map delivery
▪ Solve customer support tickets
▪ Month end financial reporting
▪ Salary review
▪ Staff meetings

“Culture eats strategy for breakfast”
– Peter Drucker

What eats culture
for breakfast?

Organization wide Behaviors!

Hypothesis
driven
Alignment Daily habit

Hypothesis driven
Systematically Experiment to learn what
means generates what results
Test and verify, don’t assume

Hypothesis
Prediction
Experiment
Observation
Learning

Values
Principles
Means
Results
VPMR Model

Focus your attention on the means,
not the results
Way of
working and
people’s
behaviors
Outcomes
Means (leading) Results (lagging)
Our main attention

Leading and Lagging measures
Influencable
Predictive

Laggging measures
Leading
measures

Hypothesis
Means -> Result
Doing M will
give R
Do M
Focus on Leading
measurements
Observe
Leading & Lagging
measurements
Learning

experiment
Verb /ɪkˈsper.ɪ.ment/
to try something in order
to discover what it is like
or find out more about it.
What is an Experiment?

experiment
Verb /ɪkˈsper.ɪ.ment/
to try something in order
to discover what it is like
or find out more about it.
What is an Experiment?
Good enough for now,
safe enough to try!

Puff

Oh, I did NOT
expect that!

The sound of learning

#fail

#fail
First Attempt In Learning

Expect at least 50% of the
experiments should not give the
expected result
This is when we REALLY learn!

The Spice girls question…

Tell me what you want
what you really, really want..

Hoshin Kanri (Strategy Deployment)
Hoshin Kanri means ‘compass management’ and
serves to align the entire organization’s resources
and actions with the strategic challenge.
A strategic planning process whereby strategic
challenges are communicated and translated into
action

The Importance of Focus
Number of
Challenges
Challenges
achieved
1-3
1-3
4-10
1-2
11-20
0

Aligned on the strategic Challenge

Actions that supports the Challenge

Challenges are set together in dialog
Leaders Challenge with WHAT & WHY
Team Responds with HOW & FEEDBACK
Leaders can veto, but not dictate
Leaders can veto if the team’s Challenge
do not support the main Challenge
But the leaders can’t
dictate the teams Challenge
WHAT & WHY
WHAT & WHY
HOW & FEEDBACK
HOW & FEEDBACK

Challenge with WHAT & WHY, not HOW
Challenge with
WHAT & WHY
Intent, Boundaries…

Respond with HOW & FEEDBACK
Describe HOW &
give FEEDBACK on
Challenge

What am I not
understanding?
Is the Challenge unclear?

Iterate to align
Ask clarifying
questions
Adjust the challenge

Hypothesis
WHAT & WHY
Prediction of
response
Give the
Challenge
Listen to the
HOW & FEEDBACK
Learning

Wax on, wax off

Create ”muscle memory”
for continuous improvements

Planning Phase
Understand
Direction
Grasp Current
Condition
Executing Phase
Set the Next
Target
Condition
Experiment
toward Target
Condition
Repeat

Planning Phase
Understand
Direction
Grasp Current
Condition
Executing Phase
Set the Next
Target
Condition
Experiment
toward Target
Condition
Repeat
It's a scientific routine for
achieving tough Challenges

Vision
Current
Condition
Target
Condition
Challenge
Target
Condition
Target
Condition
Target
Condition

Vision: To boldly go where no brick has been before!

Challenge: …We choose to go to the moon in this decade…

Target Condition

Image courtesy of the Earth Science and Remote Sensing Unit, NASA Johnson Space Center
Mission:AS11 Roll:44 Frame:6548
Target Condition

Challenge
Current
Condition

Current
Condition
Challenge

Focus process
Continuous Integration process
Challenge
RED is really RED
Target Condition
Achieve by: in one month
40% RED that should have been
GREEN
Actual Condition
55% RED that should have been
GREEN
PDCA Cycle Records
Obstacle parking lot
0%
20%
40%
60%
80%
100%

Target
Condition
Current
Condition
Experiment toward Target Condition

Leaders coaching the learners

Challenge with WHAT & WHY, not HOW

Leaders can veto, but not dictate

Team responds with
HOW & FEEDBACK

Motivation
Purpose
MasterAutonomy

True Lean/Agile Leadership style

Hypothesis
driven
Alignment with
Hoshin Kanri
Daily habit
Toyota Kata

Think of every decision as a
Hypothesis that needs to be tested

Create alignment on the Spice Girls
question through dialog

Establish daily habits to execute in the
midst of the Whirlwind

Q & AHåkan Forss
Mail: hakan_forss@hotmail.com
Twitter: @hakanforss
Blog: http://hakanforss.wordpress.com

Make strategy happen with Hoshin Kanri and Toyota Kata Agile Australia

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Make strategy happen with Hoshin Kanri and Toyota Kata Agile Australia