Hoshin Kanri: Creating a Strategy Deployment Plan That Gets Results
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The document is a webinar presentation by Karen Martin on Hoshin Kanri, or strategy deployment, emphasizing the importance of focus and alignment within organizations. It discusses various strategies for creating effective deployment plans, managing priorities, and ensuring leadership engagement for successful execution. Key concepts include the 'catchball' method, the need for explicit pre-work, and ongoing adjustments to adapt to changing conditions.
Hoshin Kanri: Creating a Strategy Deployment Plan That Gets Results
- 3. Coach / Facilitator / Consultant / Trainer: Lead Lean transformations & develop people across all industries. Teacher: University of California, San Diego Author & Speaker: Karen Martin, President The Karen Martin Group, Inc. www.ksmartin.com 2013 Shingo Prize winner! © 2013 The Karen Martin Group, Inc. 3
- 5. Before the webinar… • The materials are available on: – www.ksmartin.com/files/webinarmaterials/MM‐ DD‐YYYY_slides.pdf (or _handout.pdf) After the webinar… • All recordings are available on: – – – – www.vimeo.com/karenmartingroup www.youtube.com/karenmartingroup www.slideshare.net/karenmartingroup www.ksmartin.com/webinars • The materials are available on: – www.slideshare.net/karenmartingroup © 2013 The Karen Martin Group, Inc.
- 11. Sporting Goods Manufacturer – Product Launches Per Year 80 73 70 No additional resources; higher quality products launched 60 50 40 30 24 20 10 0 Pre‐Focus © 2013 The Karen Martin Group, Inc. Post‐Focus 11
- 12. Focus Law #1: STOP DOING Focus Law #2: DO FEWER THINGS AT ONCE © 2013 The Karen Martin Group, Inc.
- 23. “Hoshin‐Lite” Annual Work Plan PRE ‐ Gain clarity around overarching business needs. 1. List everything you could do (and that you are doing). 2. Categorize into: – – – – Must‐do, can’t fail Maybe Eliminate Delay (next fiscal year) 3. Decide what you will do; gain consensus. 4. Prioritize and create plan. POST ‐ Manage plan via weekly updates (may be able to reduce to monthly reviews – but be careful!). © 2013 The Karen Martin Group, Inc. 23
- 28. Strategy Deployment: The mechanics of a 2‐3 day planning session © 2013 The Karen Martin Group, Inc.
- 29. Label Four Flip Chart Pages & Hang on Wall Must do Maybe 1. List what you could do on 3x6” post‐its (active or planned initiatives, projects & improvement activities). Gain consensus. 2. Categorize them (place post‐it on appropriate page. Gain consensus. Delay Eliminate 3. Decide what you will do. (Move “maybe’s” onto one of the other three pages.) Gain consensus. © 2013 The Karen Martin Group, Inc. 29
- 32. PACE Improvement Prioritization Grid ‐ Example Easy 9 5 22 23 10 13 17 8 3 21 4 Ease of Implementation 15 20 14 7 2 1 19 16 6 11 18 Difficult 12 Low © 2013 The Karen Martin Group, Inc. Anticipated Benefit High
- 34. Free Downloadable Excel Prioritization Chart The Outstanding Organization: Achieving Focus Prioritization Chart Chart Title To use this Template: 1) Enter the title of the chart in Cell B2 2) Enter the number of items (e.g. projects, improvement activities, etc.) in cell B4 3) Enter the item name and ranking information into A8-D8 and so on. 5 Number of Items 4 Item Name 1 2 3 4 5 Execution Ease 1 3 5 7 9 Degree of Urgency* 1 2 3 4 5 Prioritization Chart 10 9 8 Execution Ease Item Item Item Item Item Organizational Benefit 9 7 5 3 1 7 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 Organizational Benefit * Degree of urgency is indicated by bubble size. www.ksmartin.com/TOO See The Outstanding Organization, p. 83 for a list of prioritization list considerations © 2013 The Karen Martin Group, Inc. 10
- 35. Modified Strategy Deployment Annual Plan < Company Name > 2013 Priorities 2013 Goals & Objectives 1. Increase sales 5%. 3. Achieve 10% profit. 2. Achieve 50% gross margin. 4. Improve morale (metric TBD). X = Planned Priority 5 8 9 17 29 32 33 10 30 31 25 26 15 20 22 Content removed for confidentiality 21 ● = Actual Jan Feb 3,500 uni ts s ol d by 12/31/2013 through a l l cha nnel s (a pprox. $700K) 2 11 Goal or Measurable Objective X X X X X X Devel op & del iver tra i ni ng to top 50 Dea l ers X X X X X X X X Educa tion: 1 s chool di s tri ct s pec'd/underperforming COM dis tri butor (25) by 12/31 va l ued a t mi n $35K ea ch 10 new dea lers on boa rd (net) ($500K per dea l er thi s yea r) 5 new di s tri butors bri ngi ng $200K a nnua l rev (& 5 termi na ted) X X X X X X X X X X X X X X Howa rd Mi cha el S X X X X X X X X X Howa rd X X Mktg Ops 3 HR Fin 3 3 Bob 2 PE Pario COM CDs / PD PD BMD SWS Direct AMs Rec Mgmt 3 1 1 3 2 1 3 2 3 3 3 2 3 1 3 3 3 Mi ke B 3 3 2 3 3 2 X X X X X X X X X X Howa rd Howa rd 2 3 X X X X X X X X X X Howa rd Da na 1 3 3 X X X X X X X X X Howa rd Ma rk H 2 3 Howa rd Howa rd X X X X X X X X X Howa rd Howa rd Ji m Ra nda l l Ji m Jos h TBD X X X TBD Useful reporti ng a nd metri cs a re es ta bl i shed a nd i n pl a ce X X TBD X X TBD X X X X X X X X X 1 3 X X X X X X X X X Jos h Ji m Sys tem 7.0's i n pl a ce 1 1 X Sha nnon 1 Ji m Ra nda l l 1 3 1 X X X Phyl l is 1 Mi cha el M 2 Ma tt D 3 Nea l l X 1 Da na Da vi d R 1 1 1 1 1 1 1 1 1 1 1 1 1 3 2 Sus a n X 3 3 Nea l l X 3 1 Jos h X 3 1 Mi cha el M X 3 1 1 1 1 3 Ji m TBD © 2013 The Karen Martin Group, Inc. Josh R? X X La y out compl ete; equi pment i ns ta l led 2 X X 30 pa rts s ourced in U.S.; compl eted pl a n for ma na gi ng Chi na ‐s ourced pa rts Wa rehous e l a id out; ka nba n revi s ed; Sys pro i mplemented Da na Rex/Tim X X Des ign cha nged to s ol ve dela m i ss ue l ong‐term Bob X 20 by yea r‐end 1 14 X X 10 projects s pec'd by 12/31; $300K rev by 12/31 100% a ccura te pa yrol l ; 100% ma na gement s a ti sfa cti on a t Apri l mgmt. meeting Internet ta s k l is t is si mpl i fi ed a nd strea ml i ned for PDs then pl a n is rol led out to PDs Des ign Ca l cul a tor i s upda ted success ful l y a nd rol l ed out Level of Effort/Involvement Required IT Exec Owner X Competi tive Ana l ys i s compl ete a nd di stri buted for us e 13 Aug Sep Oct Nov Dec Tactical Owner Bob Mar Apr May Jun Jul Revis ed cours e ma teri a l s by 6/30/2013 Plan review dates: Bob X 24 12 Created: 01‐14‐13 Revised: 1 2 3 1 1 3 3 3 2 1 X X X Susa n Sha nnon 3 X X X Susa n Sha nnon X X Susa n Da vi d R 3 2 2 3 3 X X X X X X 2 3 3 3 3 2 3 3 3 X 3 3 1 2 2 3 35
- 36. POST: Plan Management • Weekly status meetings to start, then 2x a month, then monthly (required attendance). – Focus: how to turn yellow & red items into green. – Expectation: Full team helps remove obstacles. – Tone: supportive but tough. • Visibility matters: post progress physically! • Plan is adapted to changing conditions, but avoid Org‐ADD (organizational attention deficit disorder) and falling prey to unnecessary distractions. © 2013 The Karen Martin Group, Inc. 36
- 42. Productivity (Pounds Produced / Hr Worked) 115.0 Pactiv Implements Strategy Deployment 108.0 105.9 101.0 95.2 93.0 94.0 90.6 87.0 84.8 86.3 80.0 FY '06 FY '07 FY '08 FY '09 FY '10 YTD '11 42
- 45. Avoiding the Shiny Ball Syndrome (Organizational ADD) Requires… • Clarity – about what really matters & organizational direction. • Consensus – about how best to get there. • Courage – to actively choose to “not do” or “not do now.” • Commitment – to stick with the plan. © 2013 The Karen Martin Group, Inc. From the Focus chapter: The Outstanding Organization, Karen Martin