Driving strategic transformation programs webinar

Did We Move the Dials?

Driving Strategic Transformation Programs

Level of Pull

Observations on Transformation Programs in 100+ Large Organisations

Focus on Strategic Alignment Big Y = Business Results Improvement

Focus on Operational Performance

Big Y = Process KPI Improvement

Focus on Program ROI Focus on Project Success

Big Y = Initiative ROI

Big Y = Speed to Tangible Benefits

Size of bubble = Relative Impact on Shareholder Value

Level of Maturity © inexus 2010

Slide 2

Most organisations Follow A Similar Journey.... The Business Execution Maturity Model (BEMM) Typical Decisions

We Need To Implement Some Change Projects

BEMM Levels

Key Goals

We Need a Company-wide Transformation Program

We Need Our Operational Managers to Drive Improvement

Level 3

Level 2

Level 1

Project Driven

Program Driven

We Need to Align of Transformation Efforts With Our Business Goals

Level 4

Goal Driven

Process Driven

Demonstrate Success Accelerate Benefit Delivery Make Improvement Sustainable Align Improvement With Goals

Predominant Change Mode

Pull

Push

Slide 3

What is the primary way your organization measures the success of your process excellence initiatives?

2008

2012 64

Hard financial benefits delivered Change in organizational culture

7 11

Performance against KPIs of the program Contribution against strategic goal Increase in customer satisfaction

5 13 10

20

30

40

50

60

N=103

Slide 4

Conceptually what do you need to succeed?

Ability to systematically make course corrections as we execute

Desired Business Impact

Ability to systematically translate strategy into actionable priorities

Changed Process Outcomes

Process, People and System Changes Needed to Achieve Changed Outcomes

Ability maintain a laser focus on execution © inexus 2010

Slide 5

Practically how do we do this? Closed-loop Business Execution Leading organizations are increasingly combining key concepts from... • Hoshin Planning – X-Matrix, Bowling Charts, A3s • Operational Excellence – Stage Gates, PDCA, Lean Six Sigma Tools • Balanced Scorecards – Strategy Maps, Cascaded Scorecards ....to create an integrated ‘Transformation’ system

Learn more – visit www.i-nexus.com

Slide 6

Systematically translate Objectives to Actionable Priorities

Strategy Maps

Ability to systematically translate strategy into actionable priorities

Hoshin X-matrices

A3s/Annual Improvement Plans/Action Plans

Slide 7

Strategy mapping helps you create consensus, Xmatrices help you translate into actions.. Hoshin Plan Strategy Map

Financial Increase Profit

Maximise Utilisation

Customer Retain Customers Low Cost Offer

Objective

Internal Fast Turnaround

Achieve Fast Ground Turnaround

Measure

Target

On Ground Time

25 Minutes

On Time Departure

95% Flights

Learning Motivated Crew © inexus 2010

Slide 8

Initiative Reduce Turnaround Time

Strategy Map to X-Matrix Example

Slide 9

The A3 helps those responsible for goals to charter the action plan, track the results and manage risks Ground Operations Transformation Program Background

Airplane turnaround time is averaging 140 minutes. The consequence of this is poor utilization of assets and low customer satisfaction/below industry average customer retention – both of which are eroding profitability. We need to dramatically reduce turnaround time and increase on-time departures.

Offloading process improvement Improved Maintenance Schedule Process Changed Organisation Changed Scoping is behind plan

Slide 10

Systematically maintain a laser focus on execution...

Slide 11

Execute against a shared plan with clear milestones and

Slide 12

Grasp the situation – utilise integrated bowling charts to track progress/impact of strategic initiatives

Slide 13

Keeping on track – Use MAAR to focus on root causes and to instigate countermeasures On Time Departure

Analysis of Root Causes

Control Chart of Total Yield 100

Individual Value

90

Measure

1

2

Phased Introduction of new insert design and new algorithm/ illusmination levels and camera orientation.

UCL=92.19

Analyse

80 70

_ X=61.35

60 50 40

LCL=30.51

30 3 3 3 3 03 03 03 03 03 03 03 -0 -0 -0 -0 ggggpppct ct ct ct Au Au Au Au Se Se Se -O -O -O -O 1 1 0 8 0 1 2 2 01 07 15 24 02 11 21 Dry Lot Release Date

A

Validation of Improvement

Review

R C

J

F

M

A

M

J

A

S

A

10

21

16

18

0

B

18

23

24

16

2

9

0

2

O

B

C

D

Action Planning/Progress N

Cause

Action

Owner

Due

A

Reduce instances of A

PTD

Jan

B

Remove instances of B

ABC

Feb

6

Slide 14

Status

Action

Conceptually what do you need to succeed?

Ability to systematically make course corrections as we execute

Desired Business Impact

Changed Process Outcomes

Process, People and System Changes Needed to Achieve Changed Outcomes

Slide 15

Paradigm Shift 1 Review execution not historic performance To: Will the actions we have underway enable us to achieve our goals?

From: Are we meeting our targets?

100 90 80 70 60 50 40 30

Action: ABC Target Date: Aug Impact: +20 UOMs

20 10

Feb

Mar

Apr

May

Jun

Jul

Slide 16

Aug

Sep

Action: XYZ Target Date: Oct Impact: +35 UOMs

Oct

Nov

Dec

The Real Question is ‘Are We Likely To Hit Our Targets?’

Improve Process Yeild Impact: Date:

Slide 17

0.4% Reduction 28/09/2010

How can we ‘get fit’ for Business Execution? Drive Strategic and Sustainable Transformation

Develop Core Execution Competencies • Causal Thinking Skills • Prioritisation/ Improvement Tools • PDCA Approach to Operational Reviews • Process Thinking

Align Resource and Reward Planning

Crystallize Vision/Hoshin Planning Approach • Establish Annual Hoshin Timetable • Provide Guidance on Stretch Goal Setting • Codify the Review Process • Implement Leader Standard Work Slide 18

• Synchronise the Budgeting/ Forecasting Process • Align With Annual Performance Reviews • Align Rewards with Catch-ball Targets

Underpin With a Business Execution Platform • Create Single Version of Truth • Ensure Line-of-Sight for Every Employee • Take Effort/ Complexity out of Catch-ball/Review • Make Performance Transparent

How can i-nexus help you realise the full potential of Business Execution? The i-nexus on-demand Platform provides the most complete foundation available today for organisation-wide Business Execution.

Our global consulting partners have a deep understanding of what it takes to establish business execution disciplines and are ready to help you build the competencies you need.

Slide 19

www.i-nexus.com

Slide 20

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Driving strategic transformation programs webinar

Published on Feb 17, 2014

Tim Bell

This presentation focuses on how to generate leadership "pull" for transformation initiatives. Those organizations less mature in their strategy execution journey tend to focus on immediate challenges together with the ROI of projects and programs. Strategic alignment is often neglected. In many ways the focus in less mature organizations is a function of the Operational excellence team's ability to control projects, but lesser ability to control or influence the more strategic issues. This ability alone is a key differentiator between those teams that don't make real progress down the maturity continuum and those that do. Article Source: <a href= “http://www.slideshare.net/grantcrow12/driving-strategic-transformation-programs-webinar-26149777”>http://www.slideshare.net/grantcrow12/driving-strategic-transformation-programs-webinar-26149777</a> For more information visit: <a href=”http://www.i-nexus.com/”>http://www.i-nexus.com/</a