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Businesses routinely attempt to accomplish too much and quickly lose focus when the next fire erupts or a new "shiny ball" appears.
Strategy Deployment (also known as hoshin kanri and policy deployment) is a highly effective means for creating and maintaining focus on the projects and improvement activities that lead to outstanding business performance.
Though Strategy Deployment (SD) was developed in the 1950's, it's experiencing a resurgence due to the growing popularity of Lean practices and SD's vital role in creating the climate for success.
In this webinar, you'll learn how to:
• Prioritize the laundry list of what you COULD focus on as an organization and create a "must do, can't fail" list of what you WILL focus on.
• Gain organization-wide alignment, the key to successful plan execution.
• Manage the plan to keep distractions at bay and generate the level of results all organizations are capable of.
In short, you'll learn how to accomplish meaningful improvement in a way that aligns rather than divides, and puts improvement in its rightful place as an integral part of achieving overarching business goals.
The Problem 1. Leaders are
frustrated by the “little” measurable improvement they’ve seen. 2. Improvement professionals are not held in as high regard as they need to be. 3. Too much to do; too few resources; too little time. 4. Juggling multiple balls is: o o o o Is inefficient Produces lower quality Produces chaos Slows results 5
The Evidence Poll – 760
newsletter subscribers To what degree are your organization's improvement priorities: Always Frequently Sometimes Well-defined? 11% 38% 46% Never 5% Well-communicated? 9% 32% 53% 6% Stable? (i.e., priorities only change when absolutely necessary) 7% 33% 47% 13% Aligned across the organization? (i.e., departments do not work at cross-purposes) 7% 22% 59% 12% Booz & Company study findings • 49% - company has no clearly stated list of priorities • 64% - biggest frustration is having too many conflicting priorities • 82% - functional departments get competing demands from different business units 6
The Myth of Multi-tasking •
Not possible to do two conscious activities at once. • You are “switch-tasking.” • David Meyer – University of Michigan – Engineers switched between projects 5-8 times per day – Each switch added 20 minutes of process time – If switch only 5x per day (1.7 hrs), adds 1.7 hrs per day = 407 hours (10 weeks) of process time per engineer – In company w/ 15 engineers = 3 FTEs worth of labor. 7
Apple’s Success “…saying no to
1,000 things to make sure we don’t get on the wrong track or try to do too much. We’re always thinking about new markets we could enter, but it’s only by saying no that you can concentrate on the things that are really important.” — Steve Jobs 10
Project Results Due to Focus
1. Sporting goods manufacturer 1. 2. 3. Pre-SD = 24 new product launches a year Post-SD = 73 new product launches a year No additional resources; higher quality 2. Rockwell Automation 25 20 20 15 12 12 10 5 Projects Started Projects Completed 3 0 Pre-Focus Post-Focus 11
Avoiding the Shiny Ball Syndrome
(Organizational ADD) Requires… • Clarity – about what really matters. • Consensus – about what really matters. • Courage – to actively choose to “not do” or “not do now.” 13
The Countermeasure: Strategy Deployment
Aka Hoshin kanri; policy deployment Hoshin – Direction; compass; shining needle Kanri – Management Developed in the 50’s; core element of TQM movement Integral part of Lean Establishes “true north” Two key parts: Creating the plan itself & and fanatic management to that plan. Purpose: Organizational focus & alignment Aligns everyone toward a few high impact objectives while also keeping them accountable for their commitments through visual management and review. 14
Action Plan Improvement Priority: 3
- Value Stream Map 10 Processes Management Owner: Bob the Boss Date Created: Dec. 12, 2005 Next Review: Feb. 13, 2006 Team: Jim, Bill, Jill, Cindy, Wendy Background: Being new to Value Stream Mapping, we expect there to be many new things learned as we map the processes and make the improvements. We will utilize the experience of a Consultant during our first year of mapping our processes. Relation to Annual Objective: By mapping the processes and taking action to improve the processes, we will reduced the time it takes from reciept of order to the delivery of product. This will in turn result in increased sales when the customers become increasingly satisfied with our quick response times. Action Step/ Kaizen Events Owner Deliverable Timeline Status = Original Plan Planned Com plete Date 1 - Identify top 10 products to be mapped Jim Top 10 identified and communicated 01/31/06 2 - Assign leaders to each product to be mapped Jim Leaders aw are of their products x = Complete 2011 Red, Yellow, Green (Actual and Predicted) Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec 02/03/06 3 - Lean training to all VSM Leaders Consultant delivers training 02/15/06 4a - VSM kaizen for product A Frank Jill Mapped and on the w all 02/22/06 4b - Complete actions to achieve 30% reduction in overall leadtime Jill Validated results X 04/02/06 5a - VSM kaizen for product B Cindy Mapped and on the w all 03/15/06 5b - Complete actions to achieve 10% reduction in overall leadtime Cindy Validated results 05/12/06 6a - VSM kaizent for product C Wendy Mapped and on the w all 06/02/06 6b - Complete actions toachieve 28% reduction in overall leadtime Wendy Validated results 10/14/06 7a - VSM kaizen for product D Bill Mapped and on the w all 07/14/06 7b - Complete actions to achieve 12% reduction in overall leadtime Bill Validated results 07/30/06 8a - VSM kaizen for product E Jim Mapped and on the w all 08/16/06 8b - Complete actions to achieve 8% reduction in overall leadtime Jim Validated results 12/12/06 20
Common Components of the A3
Report Plan Theme: “What is our area of focus?” Background Do, Study, Adjust Owner: Person accountable for results. Countermeasures / Implementation Plan • Problem statement • What? • Context - why is this a problem? • Who? • When? Current Condition • Where? (if relevant) • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? Effect Confirmation • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? Follow-up Actions Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?
Annual Improvement Plan 1. Gain
clarity around overarching business needs. 2. List everything you could do (and that you are doing). 3. Categorize into: “Must-do, can’t fail” Maybe Eliminate 4. Decide what you will do – prioritize “maybe’s” 5. Create plan. 6. Manage plan via weekly updates (may be able to reduce to monthly reviews – but be careful!) 26
Annual Improvement Plan 1. Gain
clarity around overarching business needs. 2. List everything you could do. 3. Categorize into: “Must-do, can’t fail” Maybe Eliminate 4. Decide what you will do – prioritize “maybe’s” 5. Create plan. 6. Manage plan via weekly updates (may be able to reduce to monthly reviews – but be careful!) 29
Simple Project Plan Task Type
Accountable KE Implementation Schedule (weeks) 2 3 4 5 6 7 8 9 10 11 12 100 25 75 50 100 25 75 50 100 25 75 50 100 25 75 50 100 25 75 50 100 25 75 JDI 50 100 Modify weekly report. 25 75 KE 50 100 Create standard template. 25 75 KE 50 100 Create self-quality checklist. 25 75 Proj 50 100 Clearn up data base. 25 75 Create visual board to track KPIs. Date Complete Mary W. 1 Progress 50 George S. Sally R. Sally R. Bruce M. 9/22/2011 Type: JDI = Just do it; KE = Kaizen Event; Proj = Project 30
Annual Improvement Plan Tier 1
Priority: Tier 2 Priority: Date Created: Executive Owner: Tactical Owner: Background/Scope: Next Review: Measurable Objective(s): Core work team: Input/Review needed by: Relationship to Annual Business Goal(s): Timeline = Original Plan Due Date # Action Item Owner Deliverable X = Complete 2012 % Complete Status (Red, Yellow, Green) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 31
Annual Improvement Plan Timeline Company
ABC Priorities Priority Jan Feb Mar Apr Integrate DHR Begin Begin Jun Jul Aug Sep Oct FY 2013 Nov Dec MS-2 Acct Complete MS-1 Ops Complete New Travel Program Roll-out FY 2012 May Complete Roll-out Tablets to Installation Scott R Begin Complete Begin Develop & Roll-out Handheld 2.2 Begin Complete Mark C Gary O MS-1 Clean Code MS-3 Go live Complete GPS Roll-out Begin Complete Complete "River" (One Soft) Roll-out Begin Begin Lisa D, Marina, SM, Tech, Hal, Doug Scott R MS-2 Pilot Develop Safety Program Steve R Lisa B Begin Complete ADP Roll-out Fred S Justin C Complete Refinance credit facility Others Brad P Begin Create Line-item P.O.s Tactical Owner Brad P Begin & Complete Complete 360 Roll-out Exec Owner Complete Not complete until 2013 Steve C Steve C TBD RDs Cons., HR, Fleet Lisa B Complete Gary O 32
Annual Improvement Plan 1. Gain
clarity around overarching business needs. 2. List everything you could do. 3. Categorize into: “Must-do, can’t fail” Maybe Eliminate 4. Decide what you will do – prioritize “maybe’s” 5. Create plan. 6. Manage plan via weekly updates (may be able to reduce to monthly reviews – but be careful!) 33
Clarifying the PDSA Cycle Phase
Detailed Steps 1. Define the problem or opportunity. 2. Set a target condition. Plan 3. Grasp the current condition. 4. Conduct root cause analysis. 5. Identify potential countermeasure(s). 6. Develop & test countermeasure(s). Do 7. Refine and finalize countermeasure(s). 8. Implement countermeasure(s). Study 9. Measure; evaluate results. 10. Refine and standardize. Adjust 11. Monitor performance. 12. Set a new target condition.
To achieve focused improvement, you
need… • Resignation – Acceptance re: how much is humanly possible. • Courage – To seek the truth about current performance – To make tough choices • • • • Select only “must-do, can’t fail” initiatives Must choose to “not do” Convert from what you could do to what you will do Emphasis on needs versus wants • Discipline – to stick with a plan. 37
2012 Webinars Month Topic February
A Factory of One – Dan Markovitz March The Outstanding Organization: Achieving Clarity April The Outstanding Organization: Achieving Focus May The Outstanding Organization: Achieving Discipline June The Outstanding Organization: Achieving Engagement The Outstanding Organization by Karen Martin Book launch – May 18, 2012 Available for preorder on www.Amazon.com 39
Your Questions 1. How do
you use SD to keep participants focused on achieving their goals in a Kaizen Event? 2. How to hold managers accountable for goals & keeping them from getting side tracked on side jobs that arise. 3. How I can assist my org with SD from a nonsupervisory position? (How on earth can I accomplish this???) 4. How it can be implemented in a hospital environment. 5. How strategy & actions are linked and deployed in bigger organizations. 6. How to engage management and gain total commitment to Lean. 40
For Further Questions Karen Martin,
Principal 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 firstname.lastname@example.org Connect, learn, and thought-share Monthly newsletter: www.ksmartin.com/subscribe 41