Strategically Aligning Business Process Improvement

All Rights Reserved, Juran Global
Strategically Aligning Business
Process Improvement
Dr. Joseph A. DeFeo, CEO Juran Global

One day Alice came to a fork in the road and
saw a Cheshire Cat in a tree.
"Which road do I take?" she asked.
His response was a question: "Where do
you want to go?"
"I don't know," Alice answered.
"Then," said the cat, "it doesn't matter."
From Alice in
Wonderland
Do We Need Strategic Plans?

“In the majority of organizations – we
estimate 70% -- the real problem isn’t (bad
strategy)…. it’s bad execution. Less that
10% of strategies effectively formulated are
effectively executed.”
“Why CEO’s Fail?” Fortune Magazine
Bad Execution is often a result of
poor alignment of resources and
infrastructure.
Why Today’s Topic?

Strategic planning is an organization's process
of defining its longer term direction, and
making decisions on allocating its resources
resources to pursue this direction.
A set of aimed at targets!
What is Strategic Planning?

Implementatio
n
Define:
Key Strategies
Strategic Goals
Review and
Audit
Annual Goals
Deploymen
t
Assessment
Vision Mission Policy Values
Typical Planning Model

 Companies rarely track performance against long-term plans:
less than 15% of companies make it a regular practice to go
back and compare the business’s results with the performance
forecast for each unit in its prior year’s strategic plans. (Harvard
Business Review)
 For a typical business unit, top management and the board
should monitor no more than 3 to 5 metrics, representing different
areas of the business for each of the three time frames: short-
term, over the next 1-5 years, and long-term. (McKinsey
Quarterly)
 Companies realize only 63% of the financial performance their
strategies promise because of defects and breakdowns in
planning and execution. More than 1/3 placed the figure at less
than 50%. (Harvard Business Review)
 Only 7% of employees today fully understand their company’s
business strategies and what’s expected of them in order to
help achieve the company goals. (Success Factors)
Some Data

Today’s Agenda
1. What is strategic alignment?
2. Why is it so difficult?
3. How do you improve the process
and your success rate (3 Secrets)?

1. Misunderstanding
The workforce does not
understand the strategy.
2. Resources
Most companies do
not have budget
links to strategy.
3. Rewards and structures
Most managers don’t have
incentives linked to strategy..
4. Inattention
Most executive
teams spend less
than one hour per
month discussing
strategy.
9 out of 10
companies
fail to execute
strategy
Why Do We Need Strategic Alignment?

Establish Responsibility
Identify Actions
Identify and Provide Resources
Establish Timelines and Milestones
Subdivide Broad Goals
What is Strategic Deployment?

Strategic alignment is the process and the
result of linking an organization's structure
structure and resources with
its strategy and business objectives.
It is the actions of bringing the
organization’s business divisions and staff
members in line with the organization’s
planned objectives.
What is Strategic Alignment?

Why is It So Difficult?
Inability to manage change
 You have to be willing to create and implement innovative
strategies and adjust to change in the market
Lack of infra-structure that supports execution
 Leaders assume that the current organizational structure will
support the new strategy.
Not involving the right people at the right time
 To make good decisions, you must seek out the perspectives of
a wide range of people. Involving people in decisions gets them
focused on generating solutions to problems rather than
complaining or waiting to be told what to do.

Why is It So Difficult?
Misalignment between leadership actions and
organization long term direction and priorities
Employees observe the leaders and pick up signals about
important and appropriate
Limited or no organization-wide coordination and
collaboration
Ensuring that decisions and actions are coordinated across
organizational boundaries takes shared goals, clearly
roles and accountability

Manageme
nt
Reviews
Methods
 Outside-in
 Drivers of satisfaction and loyalty
 Growth and retention analytics
 Establish vision / mission
 Align all plans to corporate
strategy
 Align core processes, process
measures
 Integrate improvement initiatives
 Balance contributions to gap-
closure requirements
 Review performance regularly
 Manage overall effects and
market changes
 Analyze causes of gaps
 Assess impact of gaps and re-
prioritize
Improvement Methods:
 DMAIC, BPM,
 Lean, QbD, RCCA,
Voice of the
Customer & Business
Hoshin Planning
– Catch Ball
Review and Manage
Adjust & Feedback
Execute Through
Managed Processes
Set
Direction
&
Deploy Goals
Implement
Initiatives &Projects
Aligned
Performance
Plans
 Define top-level imperatives
 Define measures of success
 Launch business planning process
Strategy Alignment Solutions

Successful
Execution of
Strategy
Customer
Set
Direction
Deploy
Direction
Review
&
Manage
Implement
Solutions
Gap
Execute through Improved,
Streamlined and New Processes
RCCA
Lean
Six
Sigma
QbD,
Design For
Six Sigma
How Does It Fit Together?

Projects
Annual
Goals
Strategic
Goals
Key
Strategy
Vision
Time
5 Years 1 Year
Strategic Alignment – Detailed Look

How Do You Improve the Process?
1. Collaboration (Catch ball)
a. Organizations are complex; we must rely
on others to get things done.
b. Create the conditions for people to work
together (teams).
c. Cooperation is facilitated by clearly
defines roles.
d. Goals are best achieved when those
that have to achieve them are included
in the development of them (catch
ball).
e. Coach managers on how to cascade
their strategic plans to their teams.

2. Communication
a. Over-communicate the vision,
strategies and objectives for the
organization.
b. Develop communication
strategies for all levels of the
organization; one message
does not suit all!
c. People must know how does this
effect me and what do I need
to contribute!
d. When in doubt, communicate
more.

3. Regular Reporting &
Review
a. Create a performance management
system that assigns accountability
for each initiative and makes its
progress more transparent.
b. Develop a regular schedule of reviews
on a monthly basis.
c. Create and use action plans; these
are the cornerstones of execution.
d. Encourage leaders to identify
problems and barriers to execution
rather than masking them.

Connect With Us
@Juran_Institute
www.youtube.com/user/JuranIns
titute
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www.linkedin.com/company/juran-
institute

More Resources
 business innovation
 business process improvement
 continuous improvement
 dmaic
 juran quality handbook
 lean manufacturing
 lean six sigma
 lean transformation
 operational excellence
 process innovation
 quality assurance
 quality control
 quality improvement
 management consulting firm
 iso 9000 2015
 six sigma certification
 what is lean
 what is six sigma
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Strategically Aligning Business Process Improvement

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