From LSS to Business Execution…
Is Your Organization Ready to Build a Robust Business Execution System?
© inexus 2010
Most Companies Follow A Similar Journey.... The Performance Improvement Maturity Model (PIMM) Decision to ‘Test Water’ Via Piloting Use of Structured Performance Improvement Methodology
Typical Decisions Level 0 PIMM Levels
Consider
Decision to Commit to a Company Wide Operational Excellence Program
Level 1
Decision to Progressively Shift Responsibility for On-going Performance Improvement to Operational Managers
Decision to Align Performance Improvement Activity On a Company Wide Basis With Strategic Goals
Level 3
Level 4
Level 2
Scale and Replicate
Prove
Align and Integrate
Internalise
Generate Enthusiasm Key Goals
Demonstrate Success Accelerate Benefit Delivery Make Improvement Sustainable
Push Failure Modes Pilot Not Considered A Success © inexus 2010
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Align Improvement With Goals
Pull
All Initiatives Die (Eventually)
Rowing Well In The Wrong Stream
The Topics for Today’s Webinar
How Does Business Execution Make Your Lean Six Sigma Efforts More Strategic and Sustainable?
Links Project Selection To Critical Performance Gaps
© inexus 2010
Transitions Ownership of Improvement to Operational Managers
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LSS + BSC + ? = Superior Execution
d ce s lan rd Ba eca or Sc
Ho Pla shin nni ng
© inexus 2010
al n io e t a r c e n p e O cell Ex
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• LSS project selection typical driven by operational priorities. • Impact of LSS projects on strategic indicators rarely articulated. • BSC focuses predominantly on building a measurement system. • BSC doesn’t really guide goal deployment/action identification.
Hoshin Planning – The Concept Ho
Shin
Kan
Ri
方針管 理 Direction
Needle
Direction Needle, or Compass
Control Channeling
Reason Logic
A ‘Vision Compass’
Management
Hoshin Planning is a systematic and disciplined process to align, communicate and execute strategy by focusing on those few breakthrough objectives that give you competitive advantage. © inexus 2010
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Hoshin Planning – The Process 1. Establish Vision Develop 3-5 Year Breakthrough
2. Objectives
Develop Annual
3. Objectives 4. P D C A
Reflection
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Catch-ball Planning
Deploy Annual Objectives
5. Implement Annual Objectives 6. Monthly Review 7. Annual Review
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Hoshin Process in Concept
The X Matrix – A Powerful Tool to Drive Alignment
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Catch-ball ‘handshake’ ensures commitment and meaningful targets at every level • • • Executive •
What are the sub-goals? Who needs to drive them? How will I track their achievement? What do I think are meaningful stretch targets?
Sub-goals and Proposed Targets
Senior Manager
Accepted goals or counter-proposed targets/goals
• What does achieving this goal mean I/my team have to do? • Does it need further breakdown to be implemented? • Given feedback from my team are the targets achievable?
Accepted goals/actions or counter-proposed timelines
• Do I believe this action will deliver the result expected? • What does achieving this action mean I/my team have to do? • Do I have the resources to make it Departmental happen in the time allowed? Manager
Sub-goals/ actions and target timelines
© inexus 2010
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Consistent execution fundamentally depends on being able to answer 3 questions...
1. Are we on track? 2. If we are not on track – are we doing something about it? 3. In aggregate, will the actions underway get us where we want to go? © inexus 2010
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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
Jan © inexus 2010
Feb
Mar
Apr
May
Jun
Jul
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Aug
Sep
Action: XYZ Target Date: Oct Impact: +35 UOMs
Oct
Nov
Dec
Execution Bowling Chart – Based on the actions underway are we likely to hit our goals?
© inexus 2010
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Keeping on Track – Implementing Countermeasures via MAAR Charts Fault Resolution Cycle Time
Analysis of Root Causes
Analyse
Measure
A
Validation of Improvement
Review
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C
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Action Planning/Progress Cause
Action
Owner
Due
A
Reduce instances of A
PTD
Jan
B
Remove instances of B
ABC
Feb
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Status
Action
Keeping on Track – Implementing Countermeasures via MAAR Charts On-time Delivery
Analysis of Root Causes
Analyse
Measure
A
Validation of Improvement
Review
© inexus 2010
R C
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C
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Action Planning/Progress Cause
Action
Owner
Due
A
Reduce instances of A
PTD
Jan
B
Remove instances of B
ABC
Feb
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Status
Action
Keeping on Track – Implementing Countermeasures via MAAR Charts On-time Delivery
Analysis of Root Causes
Analyse • Focus on Moving the Dial Not Just % Complete on Action
Measure
A
Review
© inexus 2010
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F
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C
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• Focus on Elimination of Root Cause Not Just Alleviation of Symptom
Validation of Improvement R C
B
Action Planning/Progress Cause
Action
Owner
Due
A
Reduce instances of A
PTD
Jan
B
Remove instances of B
ABC
Feb
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Status
Action
How can we ‘get fit’ for Business Execution?
Develop Core Execution Competencies • Causal Thinking Skills • Prioritisation/ Improvement Tools • PDCA Approach to Operational Reviews • Process Thinking
© inexus 2010
Align Resource and Reward Planning
Crystallize Vision/Hoshin Planning Approach • Establish Annual Hoshin Timetable • Provide Guidance on Stretch Goal Setting • Codify the Review Process
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• 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
Business Execution – The Potential Business Execution can:
•Motivate and align every employee •Eliminate unnecessary internal competition •Focus energy on real breakthroughs •Ensure action is followed through •But ultimate value lies superior results from superior execution..... An organisation which executes well on a mediocre strategy will always outperform an organisation that executes badly on the most brilliantly crafted strategy. © inexus 2010
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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.
Learn More: www.i-nexus.com © inexus 2010
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Contact us
• www.i-nexus.com
© inexus 2010
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