Recorded webinar: http://slidesha.re/18ouqPy Subscribe: http://www.ksmartin.com/subscribe Karen’s Books: http://ksmartin.com/books Businesses routinely attempt to accomplish too much and quickly lose focus when the next fire erupts or a new "shiny ball" appears. Strategy Deployment (also known as hoshin kanri and policy deployment) is a highly effective means for creating and maintaining focus on the projects and improvement activities that lead to outstanding business performance. Though Strategy Deployment (SD) was developed in the 1950's, it's experiencing a resurgence due to the growing popularity of Lean practices and SD's vital role in creating the climate for success. In this webinar, you'll learn how to: • Prioritize the laundry list of what you COULD focus on as an organization and create a "must do, can't fail" list of what you WILL focus on. • Gain organization-wide alignment, the key to successful plan execution. • Manage the plan to keep distractions at bay and generate the level of results all organizations are capable of. In short, you'll learn how to accomplish meaningful improvement in a way that aligns rather than divides, and puts improvement in its rightful place as an integral part of achieving overarching business goals.

1. Strategy Deployment:
Accelerating Improvement Through
Focus and Alignment
January 26, 2012 (Webinar)
Company
LOGO

2. Your experience with
Strategy Deployment
5%
16%
16%
16%
47%
Haven't heard of
Heard of, but don't
understand
Understand, but haven't
deployed
Beginning to deploy
Seasoned
2

3. Your Instructor
 Early career as a scientist; migrated to quality &
operations design in the mid-80’s.
 Launched Karen Martin & Associates in 1993.
 Provide business performance improvement and
Lean transformation support in office, service &
knowledge work environments.
 Co-author of The Kaizen Event Planner; codeveloper of Metrics-Based Process Mapping:
An Excel-Based Solution; author of forthcoming
The Outstanding Organization (McGraw-Hill,
May 2012).
 Instructor in University of California, San Diego’s
Lean Enterprise program.
 To subscribe to our list:
www.ksmartin.com/subscribe
© 2012 Karen Martin & Associates, LLC
Karen Martin, Principal
Karen Martin & Associates, LLC
3

4. Webinar Schedule
Content

11:00 am -12:00 pm PT
Q&A

12:00-12:30 pm PT
Recorded webinars are available on our Vimeo site:
www.vimeo.com/karenmartinassoc
Materials are available on our SlideShare site:
www.slideshare.com/karenmartin2
To register for our newsletter to learn about future webinars:
www.ksmartin.com/subscribe
© 2012 Karen Martin & Associates, LLC
4

5. The Problem
1. Leaders are frustrated by the “little” measurable
improvement they’ve seen.
2. Improvement professionals are not held in as
high regard as they need to be.
3. Too much to do; too few resources; too little
time.
4. Juggling multiple balls is:
o
o
o
o
Is inefficient
Produces lower quality
Produces chaos
Slows results
5

6. The Evidence
Poll – 760 newsletter subscribers
To what degree are your organization's improvement priorities:
Always
Frequently
Sometimes
Well-defined?
11%
38%
46%
Never
5%
Well-communicated?
9%
32%
53%
6%
Stable? (i.e., priorities only
change when absolutely
necessary)
7%
33%
47%
13%
Aligned across the organization?
(i.e., departments do not work at
cross-purposes)
7%
22%
59%
12%
Booz & Company study findings
• 49% - company has no clearly stated list of priorities
• 64% - biggest frustration is having too many conflicting priorities
• 82% - functional departments get competing demands from different business units
6

7. The Myth of Multi-tasking
• Not possible to do two conscious activities at
once.
• You are “switch-tasking.”
• David Meyer – University of Michigan
– Engineers switched between projects 5-8 times per
day
– Each switch added 20 minutes of process time
– If switch only 5x per day (1.7 hrs), adds 1.7 hrs per day
= 407 hours (10 weeks) of process time per engineer
– In company w/ 15 engineers = 3 FTEs worth of labor.
7

8. 8

9. The Role of Focus in Achievement
“The difference between successful people
and very successful people is that very
successful people say ‘no’ to almost
everything.”
— Commonly attributed to Warren Buffett
© 2012 Karen Martin & Associates, LLC
9

10. Apple’s Success
“…saying no to 1,000 things to
make sure we don’t get on the
wrong track or try to do too
much. We’re always thinking
about new markets we could
enter, but it’s only by saying
no that you can concentrate
on the things that are really
important.”
— Steve Jobs
10

11. Project Results Due to Focus
1. Sporting goods manufacturer
1.
2.
3.
Pre-SD = 24 new product launches a year
Post-SD = 73 new product launches a year
No additional resources; higher quality
2. Rockwell Automation
25
20
20
15
12 12
10
5
Projects
Started
Projects
Completed
3
0
Pre-Focus
Post-Focus
11

12. The Reality…
You CAN’T Do It All –
and do it well.
12

13. Avoiding the Shiny Ball Syndrome
(Organizational ADD) Requires…
• Clarity – about what really
matters.
• Consensus – about what really
matters.
• Courage – to actively choose to
“not do” or “not do now.”
13

14. The Countermeasure: Strategy Deployment
 Aka Hoshin kanri; policy deployment


Hoshin – Direction; compass; shining needle
Kanri – Management
 Developed in the 50’s; core element of
TQM movement


Integral part of Lean
Establishes “true north”
 Two key parts: Creating the plan itself &
and fanatic management to that plan.
 Purpose: Organizational focus & alignment

Aligns everyone toward a few high impact
objectives while also keeping them accountable
for their commitments through visual
management and review.
14

15. Supply Chain - 2007
FG Lbs Sold/Total Hours Worked
Productivity (Pounds / Hr Worked)
115.0
Pactiv
Implements
Strategy
Deployment
108.0
105.9
101.0
95.2
93.0
94.0
90.6
86.3
87.0
84.8
80.0
FY '06
FY '07
FY '08
FY '09
FY '10
YTD '11
15

16. Recession deepens
2.5x more
Medicaid patients
ThedaCare
Implements
Strategy
Deployment
16

17. Strategy Deployment Requirements
1. Executive buy-in.
2. Clarity about market needs and current performance.


Strong “go and see” practices.
Clear key performance indicators.
3. Clear, relevant, and well-communicated annual business
goals.
4. Strong consensus-building skills.
5. Strong accountability culture (project and task ownership).
6. Deep experience with establishing and managing to
measurable objectives.
7. Strong commitment to and experience with PDSA (plan-dostudy-adjust)—aka PDCA (plan-do-check-act).
© 2012 Karen Martin & Associates, LLC
17

18. Key Feature: Catchball
What?
How?
Who?
When?
Exec
Team
What?
How?
Who?
When?
Sr. Mgmt
What?
How?
Who?
When?
Middle
Mgmt
What?
How?
Who?
When?
Frontlines
18

19. Strategy Deployment Requirements
1. Executive buy-in.
2. Clarity about market needs and current performance.


Strong “go and see” practices.
Clear key performance indicators.
3. Clear, relevant, and well-communicated annual business
goals.
4. Strong consensus-building skills.
5. Strong accountability culture (project and task
ownership).
6. Deep experience with establishing and managing to
measurable objectives.
7. Strong commitment to and experience with PDSA (plan-dostudy-adjust)—aka PDCA (plan-do-check-act).
© 2011 Karen Martin & Associates, LLC
19

20. Action Plan
Improvement Priority:
3 - Value Stream Map 10 Processes
Management Owner:
Bob the Boss
Date Created:
Dec. 12, 2005
Next Review:
Feb. 13, 2006
Team: Jim, Bill, Jill, Cindy, Wendy
Background: Being new to Value Stream Mapping, we expect there to be many new things learned as we map the processes and make the
improvements. We will utilize the experience of a Consultant during our first year of mapping our processes.
Relation to Annual Objective: By mapping the processes and taking action to
improve the processes, we will reduced the time it takes from reciept of order to the
delivery of product. This will in turn result in increased sales when the customers
become increasingly satisfied with our quick response times.
Action Step/ Kaizen Events
Owner
Deliverable
Timeline
Status
= Original Plan
Planned
Com plete
Date
1 - Identify top 10 products to be mapped
Jim
Top 10 identified and communicated
01/31/06
2 - Assign leaders to each product to be mapped
Jim
Leaders aw are of their products
x = Complete
2011
Red, Yellow, Green
(Actual and Predicted)
Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec
02/03/06
3 - Lean training to all VSM Leaders
Consultant delivers training
02/15/06
4a - VSM kaizen for product A
Frank
Jill
Mapped and on the w all
02/22/06
4b - Complete actions to achieve 30% reduction in overall leadtime
Jill
Validated results
X
04/02/06
5a - VSM kaizen for product B
Cindy
Mapped and on the w all
03/15/06
5b - Complete actions to achieve 10% reduction in overall leadtime
Cindy
Validated results
05/12/06
6a - VSM kaizent for product C
Wendy
Mapped and on the w all
06/02/06
6b - Complete actions toachieve 28% reduction in overall leadtime
Wendy
Validated results
10/14/06
7a - VSM kaizen for product D
Bill
Mapped and on the w all
07/14/06
7b - Complete actions to achieve 12% reduction in overall leadtime
Bill
Validated results
07/30/06
8a - VSM kaizen for product E
Jim
Mapped and on the w all
08/16/06
8b - Complete actions to achieve 8% reduction in overall leadtime
Jim
Validated results
12/12/06
20

21. Strategy Deployment Requirements
1. Executive buy-in.
2. Clarity about market needs and current performance.


Strong “go and see” practices.
Clear key performance indicators.
3. Clear, relevant, and well-communicated annual business
goals.
4. Strong consensus-building skills.
5. Strong accountability culture (project and task ownership).
6. Deep experience with establishing and managing to
measurable objectives.
7. Strong commitment to and experience with PDSA (plando-study-adjust)—aka PDCA (plan-do-check-act).
© 2011 Karen Martin & Associates, LLC
21

22. Common Components of the A3 Report
Plan
Theme: “What is our area of focus?”
Background
Do, Study, Adjust
Owner: Person accountable for results.
Countermeasures / Implementation Plan
• Problem statement
• What?
• Context - why is this a problem?
• Who?
• When?
Current Condition
• Where? (if relevant)
• Diagram of current situation or process
• What about it is not ideal?
• Extent of the problem (metrics)
Target Condition / Measurable Objectives
• Diagram of desired state
• Measurable targets – how will we know that
the improvement has been successful?
Effect Confirmation
• What measurable results did the solution
achieve (or will be measured to verify
effectiveness)?
• Who’s responsible for ongoing
measurement?
Follow-up Actions
Root Cause & Gap Analysis
• Graphical depiction of the most likely direct
(root) causes
• Where else in the organization can this
solution be applied?
• How will the improved state be standardized
and communicated?

23. Strategy Deployment Requirements
Organizational commitment to and display
of key excellence-producing behaviors:




Clarity
Focus
Discipline
Engagement
© 2012 Karen Martin & Associates, LLC
23

24. What if you don’t have that?
Start wherever you are.
Develop an “annual improvement plan” for
your department, division, work team, etc.

Use the features of SD that enable success at
any level.
 Clear goals.
 Discipline to both “do” (say yes) and “stop doing”
(say no).
 Consensus / alignment
 Fanatic management to assure excellent
execution.
© 2012 Karen Martin & Associates, LLC
24

25. Problems
Opportunities
Current
Condition
Point A
Target
Condition
Point B
Environmental
Factors
Annual Improvement Plan: How to Get from Point A to Point B
25

26. Annual Improvement Plan
1. Gain clarity around overarching business needs.
2. List everything you could do (and that you are
doing).
3. Categorize into:



“Must-do, can’t fail”
Maybe
Eliminate
4. Decide what you will do – prioritize “maybe’s”
5. Create plan.
6. Manage plan via weekly updates (may be able to
reduce to monthly reviews – but be careful!)
26

27. PACE Prioritization Grid
Easy
5
4
13
23
8
22
17
3
10
21
1
16
15
20
19
14
6
7
11
2
18
12
Difficult
Ease of Implementation
9
High
Anticipated Benefit
Low

28. Evolving Prioritization Grid
Highest
priority
Third dimension: Urgency
Mathematical Formula
0.7
0.6
Ease of Implementation
0.5
0.4
0.3
0.2
0.1
0
0
0.1
0.2
0.3
Potential Benefit
Figure 3.1 - Prioritization Grid
0.4
0.5
0.6

29. Annual Improvement Plan
1. Gain clarity around overarching business
needs.
2. List everything you could do.
3. Categorize into:



“Must-do, can’t fail”
Maybe
Eliminate
4. Decide what you will do – prioritize “maybe’s”
5. Create plan.
6. Manage plan via weekly updates (may be able
to reduce to monthly reviews – but be careful!)
29

30. Simple Project Plan
Task
Type
Accountable
KE
Implementation Schedule (weeks)
2
3
4
5
6
7
8
9
10 11 12
100
25
75
50
100
25
75
50
100
25
75
50
100
25
75
50
100
25
75
50
100
25
75
JDI
50
100
Modify weekly report.
25
75
KE
50
100
Create standard template.
25
75
KE
50
100
Create self-quality checklist.
25
75
Proj
50
100
Clearn up data base.
25
75
Create visual board to track KPIs.
Date
Complete
Mary W.
1
Progress
50
George S.
Sally R.
Sally R.
Bruce M.
9/22/2011
Type: JDI = Just do it; KE = Kaizen Event; Proj = Project
30

31. Annual Improvement Plan
Tier 1 Priority:
Tier 2 Priority:
Date Created:
Executive Owner:
Tactical Owner:
Background/Scope:
Next Review:
Measurable Objective(s):
Core work team:
Input/Review needed by:
Relationship to Annual Business Goal(s):
Timeline
= Original Plan
Due
Date
#
Action Item
Owner
Deliverable
X = Complete
2012
%
Complete
Status
(Red,
Yellow,
Green)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
31

32. Annual Improvement Plan Timeline
Company ABC
Priorities
Priority
Jan
Feb
Mar
Apr
Integrate DHR
Begin
Begin
Jun
Jul
Aug
Sep
Oct
FY 2013
Nov
Dec
MS-2
Acct
Complete
MS-1
Ops
Complete New
Travel Program
Roll-out
FY 2012
May
Complete
Roll-out Tablets to
Installation
Scott R
Begin
Complete
Begin
Develop & Roll-out
Handheld 2.2
Begin
Complete
Mark C
Gary O
MS-1
Clean Code
MS-3
Go live
Complete GPS
Roll-out
Begin
Complete
Complete "River"
(One Soft)
Roll-out
Begin
Begin
Lisa D,
Marina,
SM, Tech,
Hal, Doug
Scott R
MS-2
Pilot
Develop Safety
Program
Steve R
Lisa B
Begin
Complete ADP
Roll-out
Fred S
Justin C
Complete
Refinance credit
facility
Others
Brad P
Begin
Create Line-item
P.O.s
Tactical
Owner
Brad P
Begin &
Complete
Complete 360
Roll-out
Exec
Owner
Complete
Not
complete
until 2013
Steve C
Steve C
TBD
RDs Cons.,
HR, Fleet
Lisa B
Complete
Gary O
32

33. Annual Improvement Plan
1. Gain clarity around overarching business needs.
2. List everything you could do.
3. Categorize into:



“Must-do, can’t fail”
Maybe
Eliminate
4. Decide what you will do – prioritize “maybe’s”
5. Create plan.
6. Manage plan via weekly updates (may be able
to reduce to monthly reviews – but be
careful!)
33

34. Weekly Updates: Purpose
Check progress.
Challenge thinking.
Remove obstacles to success.
Consider new and truly urgent needs.
Maintain alignment / consensus.
Demonstrate disciplined focus.

Success with new behaviors/habits embeds those new
behaviors/habits.
© 2012 Karen Martin & Associates, LLC
34

35. Caution
Be sure you prioritize problems versus “solutions.”
Understand that consensus doesn’t mean 100%
agreement, but it does mean that 100% of the
people had an opportunity to provide input and
were heard.
Be sure you use the PDSA (PDCA) scientific
method for solving problems and capturing
opportunities.
© 2012 Karen Martin & Associates, LLC
35

36. Clarifying the PDSA Cycle
Phase
Detailed Steps
1. Define the problem or opportunity.
2. Set a target condition.
Plan
3. Grasp the current condition.
4. Conduct root cause analysis.
5. Identify potential countermeasure(s).
6. Develop & test countermeasure(s).
Do
7. Refine and finalize
countermeasure(s).
8. Implement countermeasure(s).
Study
9. Measure; evaluate results.
10. Refine and standardize.
Adjust
11. Monitor performance.
12. Set a new target condition.

37. To achieve focused improvement, you need…
• Resignation – Acceptance re: how much is humanly
possible.
• Courage
– To seek the truth about current performance
– To make tough choices
•
•
•
•
Select only “must-do, can’t fail” initiatives
Must choose to “not do”
Convert from what you could do to what you will do
Emphasis on needs versus wants
• Discipline – to stick with a plan.
37

38. For Further Study

39. 2012 Webinars
Month
Topic
February
A Factory of One – Dan Markovitz
March
The Outstanding Organization: Achieving Clarity
April
The Outstanding Organization: Achieving Focus
May
The Outstanding Organization: Achieving Discipline
June
The Outstanding Organization: Achieving Engagement
The Outstanding
Organization
by Karen Martin
Book launch – May 18, 2012
Available for preorder on
www.Amazon.com
39

40. Your Questions
1. How do you use SD to keep participants focused on
achieving their goals in a Kaizen Event?
2. How to hold managers accountable for goals &
keeping them from getting side tracked on side jobs
that arise.
3. How I can assist my org with SD from a nonsupervisory position? (How on earth can I accomplish
this???)
4. How it can be implemented in a hospital
environment.
5. How strategy & actions are linked and deployed in
bigger organizations.
6. How to engage management and gain total
commitment to Lean.
40

41. For Further Questions
Karen Martin, Principal
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
Connect, learn, and thought-share
Monthly newsletter: www.ksmartin.com/subscribe
41