X-Matrix is a very popular visual tool traditionally used by Japanese companies, and now by many world-wide for planning their organization’s strategy. It is part of the approach called Hoshin Kanri X-Matrix is a one page document that links an organization’s strategies, metrics, tactics, results and responsible people.

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Annual Goal Setting for Enterprises using X-
Matrix?
Before I start telling you what an X-Matrix is, let me give you some context. X-Matrix is a
very popular visual tool traditionally used by Japanese companies, and now by many
world-wide for planning their organization’s strategy. It is part of the approach called
Hoshin Kanri
X-Matrix is a one page document that links an organization’s strategies, metrics, tactics,
results and responsible people.
Once the 3-5 year strategic objectives of an organization are decided, then the X-Matrix
can be used break them down to tactics, metrics, assign responsibilities and track them.
It starts at an organization level where a primary X-matrix is created and for each of the
key strategies, if needed, secondary X- matrices are drilled-down.
In my experience X-matrix has been very beneficial for enterprises of all sizes. For large
corporations with multiple business lines and products, then I have found there may be
multiple X-matrices and that leads to lot of confusion.

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One of the biggest benefits of X-matrix is that it acts as a document that forges
agreement among all stakeholders on the strategies, tactics and metrics. Hence the
‘catch-ball’ happens when this document is completed. Usually this format is printed in
A0 size and used for filling up the different sections.
The second benefit is that it acts as a good communication tool for management to
share their plans with rest of the organization. It can be displayed in a common place for
employees to see and understand the organization’s priorities
How to fill the X-Matrix?
1. Start with the ‘Strategies’ – Fill in the 3 or 4 broad strategies for the organization
for the next 3-5 years.
2. Move to Annual Objectives – List down those objectives which will be accomplish
by the team
3. Establish correction between Strategies and Objectives. Link up each of the
‘strategies’ to the ‘objectives’ in the intersection place with cross signs. Some
recommend high(H), medium(M) and low(L) to denote the strength of correlation.
This exercise can be done by the team through brainstorming or by data
collection, if relevant.
4. If there are orphan strategies or objectives, then go back to second 1 and 2 and
review them.
5. Repeat steps 1 to 4 by populating the following one after the other:
o Strategies
o Annual Objectives
o Metrics
o Tactics
o Team members
6. If you like to know what goes into tactical plans, how metrics are decided and
how accountability and targets of metrics and goals are assigned, I’d recommend
that you read my articles in ‘Strategy & Hoshin’ section
7. Accountability is nothing but the correlation of Tactics to Team members

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www.collaborat.com | +91 4442851080
8. This entire exercise involves a lot of concentration and team effort and hence is
unlikely to be completed in a single sitting. Many times, the functional heads may
require inputs from their team members and hence may need more time.
9. For best results and especially if you are doing it the first time, I recommend you
have an expert run this for you. He can educate the leadership team and at the
same time get this important annual goal setting accomplished.
About the Author:
Neil started Canopus Business Management Group in 2009.
He helps a range of large enterprises in services and manufacturing, with particular emphasis on
execution of business & functional strategies, customer experience & process transformation. He
has worked with banking, outsourcing, IT, discrete manufacturing & telecom business processes.
He draws on extensive experience (15 years) in Hoshin Kanri, Blue Ocean Strategy, Lean, Six
Sigma, Outsourcing, Change Management and Touch point Management to deliver composite solutions that put
client’s business in an Advantageous & Profitable position.
Client engagements aim at eliminating the barriers for seamless execution of strategies, carpet bombing customer
touch points, diagnostic interventions on customer churn & retention and implementation of transformational
projects.
He can be reached at neil@collaborat.com or +91 9176616766.