1. Strategy Deployment
A discussion of both
methods and challenges
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2. Discussion Outline
 Intro and Background
 Clipper Windpower
 Definitions
 Deployment Methods
 Management by Objective
 Hoshin Kanri
 Balanced Score Card
 Quality Management Systems that Support Strategy Deployment
 ISO
 Baldrige
 Discussion Points
 “The Mind of the Lean Manager” by Jim Womack
 Resources and References
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3. My Background and Experience
 Education
 B.A. in Business Management from UNI
 Working on Masters of Manufacturing Operations at Kettering
 Work Experience
 Human Resource Intern at Beef Products Inc. (Waterloo)
 Department Manager for Pella Windows and Doors. (Clear Lake)
 Developed interest and passion for Continuous Improvement
 Quality Supervisor for Beef Products Inc. (Waterloo)
 Assembly Supervisor for Clipper in March 2007 (Cedar Rapids)
 Continuous Improvement Manager for Clipper in November 2009
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4. Clipper Windpower
 Company Incorporated in 2001
 Manufacturing began at Cedar Rapids in 2006
 2006 - 8 units produced
 2007 - 137 units produced
 2008 - 289 units produced
 2009 projecting 117 units (no orders cancelled, only delays)
 Approximately 280 employees in Cedar Rapids
 Approx. 190 assembly
 Others include Engineering, Quality, RMDC, Clipper Fleet Service, etc.
 The Facility is 330,000 sq. ft.
 Manufacturing the 2.5 MW Liberty Wind Turbine
 Gearbox, Hub, Machine Base, Rectifiers, Parts Containers Assembled
 Nacelle, Towers, Generators, Transformers, etc. outsourced
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5. Clipper Windpower Continued
 As a whole, Clipper is in the Energy Business
 The Cedar Rapids Operations is generally
considered a Heavy Manufacturing facility
 The process is entirely assembly based
 no material processing or fabrication work
 The company is in the process of developing a 7.5 to
10 MW offshore wind turbine
 Projected Capacity of the Cedar Rapids facility is
approx. 550-600 turbines per year
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6. The Disclaimer
 Not an Strategy Deployment expert
 Interest in Learning about Strategy Deployment
 That interest all too quickly transformed into an
opportunity to lead this IQC network meeting
 I’ve been dedicating extra time to this particular topic
 I’ve collected and condensed some SD information
 Many of you probably have relevant experience
 Please, stop me at any time for discussion or if you’d like to
contribute by further clarifying a particular item.
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7. Focus of Today’s Discussion
 When suggesting that we discuss strategy deployment, I was
most interested in the transition from planning to action.
 Effectively moving from Plan to Do in the PDCA cycle.
My Approach
 Basic Overview of the different Methods
 Tools associated with those methods
 Open Discussion
 Thought Provoking Article
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8. Why Focus on Strategy Deployment?
 The feeling of many good but unaligned goals
 The need for a consistent top-to-bottom message
 The importance of management effectively communicating
directives in a way that all can engage with and implement.
 The importance of knowing what activities align with goals.
 It’s a Criteria for Performance Excellence (Baldrige)
 Strategic Planning and Business Results are two key criteria for
performance excellence
 The transition away from command and control, and the
frustrating that may accompany it.
 Bottom line, it’s a necessary part of realizing success.
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9. Definitions
 Strategy –
 Is a plan of action designed to achieve a particular goal.
 The word strategy has a strong military connotation.
 Strategy is different from tactics.
 Deployment –
 To arrange in a position of readiness, or to move strategically or
appropriately.
 Again, deployment has a strong military connotation
 In business, it stands for a methodical procedure of introducing an activity,
process, program, or system to all applicable areas of an organization
 Strategic Management –
 Developing, evaluating and making decisions that will enable an
organization to achieve its long-term objectives
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10. What is Strategy Deployment?
 The nervous system of a business system
 Guides planning and action across an organization’s
total value stream
 Provides a closed circuit between an organization’s
business needs and day-to-day activities.
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11. Pre-requisites to Deployment
 Company Philosophy and Quality Policy
 Basic Strategic Planning
 Vision and Mission
 Values Statement
 SWOT Analysis
 Strengths, Weaknesses, Opportunities, and Threats
 Any others?
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12. Discussion Points
 Questions we should be asking as strategic planners.
 How widely understood is our company’s mission and/or vision and the
company’s top strategy among our employees?
 Are certain industries better at this than others? If so, why?
 Does your company have a published set of values or beliefs?
 How widely known are they?
 Do they make a difference?
 The answers to these simple questions will serve as indicators
of the company’s ability to effectively deploy a strategy.
 A commander can’t effectively deploy troops without each of them
clearly understanding the mission.
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13. Methods of Deployment
 Management by Objectives
 Cascading Objectives and Goals
 SMART Goals
 Specific
 Measurable
 Achievable
 Relevant
 Time bound
 Hoshin Kanri
 Catchball, A3-X, and A3-T
 Balanced Score Card
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14. Management By Objective (MBO)
 The Principles of Management by Objective
 Cascading of organizational goals and objectives
 Mission Critical Objectives at the CEO Level
 Mission Critical Objectives at the Plant Level
 Specific objectives for each member
 Cascaded Goals through Success Factors
 Performance evaluation and provide feedback
 Performance Evaluation System
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15. Management By Objective
 Important features and advantages of MBO are:
 Motivation –
 Involving employees in the whole process of goal setting and
increasing employee empowerment increases employee job
satisfaction and commitment.
 Better communication and Coordination –
 Frequent reviews and interactions between superiors and
subordinates helps to maintain relationships within the enterprise
and also solve many problems faced during the period.
 Clarity of goals –
 The concept of SMART goals
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16. Limitations and Arguments Against
 Over-emphasizes setting of goals, as opposed to the
working of a plan
 Could lead companies to evaluate employees by
comparing them to the “ideal employee”
 “What gets measured gets done”
 W. Edwards Deming
 argued that a lack of understanding of systems commonly
results in the misapplication of objectives
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17. Discussion Points
 When done properly MBO ideally:
 improves motivation and communication
 involves employees in goals setting
 provides frequent feedback on performance
 Is this typically what would be found if a company’s MBO
process were reviewed?
 Does MBO provide an opportunity for all employees to
provide their input and understand their importance?
 Any other challenges or short comings experienced by those
who have utilized or been a part of MBO?
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18. Definitions
 Hoshin = direction, a course, a policy, a plan, an aim
 Kanri = management, administration, or control
 Hoshin Kanri – A method of implementing strategy
to get the right thing done.
 Often referred to as:
 Policy deployment, Strategic Initiatives, Management By
Policy, Hoshin Planning, Policy Management, Managing
for Results, Strategic Deployment and Goal Deployment.
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19. Hoshin Kanri
 Purpose and Usage–
 Long term strategic planning for systems
 Developing shared strategic goals (compare Balanced Score Card)
 Continuous organizational improvement
 Cascading or deploying top management policies
and targets down the management hierarchy
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20. Hoshin Kanri
 Steps and Skills Required
 Planning and Communication
 Get Involvement
 Set the course
 X-Chart
 Project Initiation and Execution
 Two Deployment Styles or Target – Top-down and Bottom-up
 “Catch Ball” Target Deployment
 Project Charter
 Standard Process for follow through
 Reflection
 Review of what worked and what didn’t work
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21. Hoshin Kanri
 Hoshin Kanri can be thought of as the application of Deming's Plan-Do-
Check-Act (PDCA) cycle to the management process.
 The PDCA cycle represents a generic approach to continual improvement
of activities and processes.
 PLAN = a plan of action is developed to address a problem.
 DO = the plan is implemented.
 CHECK = information is collected on the control parameters.
 ACT = the results are analyzed. Corrective action is identified.
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22. Hoshin Kanri
 Three key elements
 Catchball
 Project Charter (A3-T)
 X-Charts (A3-X)
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23. Catchball
 A participative approach to decision-making.
 Used in policy deployment to communicate across management levels
when setting annual business objectives.
 The analogy to tossing a ball back and forth emphasizes the interactive
nature of policy deployment.
 Used when establishing the terms of the organizational contracts or
project charters.
 Provides employees with an opportunity to review the plan and
objective and to respond with their thoughts and ideas.
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24. Project Charter (A3-T)
 Boil things down to one page
 Clarifies that no one person can accomplish a strategy
 Very reminiscent of PDCA and DMAIC
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25. 25

26. X-Charts (A3-X)
 A bundle of contracts called team charters
 A visual tool for planning
 Can appear complex at first
 Becomes simple quickly
 The key is the Linkage of high and low
level action with people and results
 Mostly an aid to communication
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27. 27

28. Strategy Area
•Contains the highest level mandates
•Start here
•Should link directly to corporate strategy, one level above the
group for which you are planning.
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29. Metrics Area
•Fill this in second
•Put in standard and/or mandated
operational figures your group needs to
meet
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30. Tactics Area
•Work on this third
•Will lay out specific projects
•Will become the basis for managing implementation
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31. Team Members Area
•Work on this fourth
•List Names of the people who will be responsible for
implementing the tactics
•Use proper names, not titles
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32. Connectional Areas
•The absolute key to making this work
•Forces reflection, debate and conversation in an open manner.
•Do these last, in a back-and-forth manner, with others on your team and in
your company
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33. Strategy-to-Tactics Correlation
•Does a tactic really support one or more
strategies?
•Is there a more effective tactic?
•Is there a non-necessary tactic?
•Do you really understand the individual strategy
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statements?

34. Tactics-to-Metrics Correlation
& Contribution
•Does a tactic improve a specific metric's)?
•Will it move the metric adequately?
•Does each metric have some tactic to
improve it?
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•Do you really understand the individual

35. Tactics-to-Team Member
Accountability
•Does each tactic have a skilled person to lead it?
•Does one individual have too many tactics to lead?
•Are there other people who need to be listed?
•Does each individual understand his/her 35
accountability?

36. Metrics-to-Results
Correlation/Contribution
•Does each metric contribute to one or
more financial results which we value?
•How much does each metric contribute?
•Are we measuring the right things in our
results?
•Can we compare plan to actual over the
period covered by the plan?
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37. Strategy-to-Results Correlation
•Does each strategy contribute to one or
more financial results which we value?
•How much does each strategy contribute?
•Is a strategy “for show” or for results (e.g.
a Super Bowl ad)?
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38. 38

39. Hoshin Kanri
 Strengths  Limitations
 Focuses organization  A rigid implementation
on the vital few is necessary
 Communication of a  Requires a long term
shared vision commitment
 Creates alignment  Relatively Static – the
through participation breakthrough objective
 Encourages cross must be stable during a
functional cooperation 5 year period
 Planning is systematic
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40. Discussion Points
 How many currently use or have experience with
this method of planning and deployment utilized?
 Where HK has been utilized, was it well structured
and routine or informal and possibly haphazard?
 In what ways was it’s use effective or ineffective?
 Would you recommend this system to others? Why?
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41. Balanced Score Card
 A Strategic planning and management system
 May mean different things to different people (the BSC spectrum)
 From a Performance Measurement Framework = Dashboard
 To a Robust Organization-wide Strategic Planning, Mgmt, and
Communication System
 Originated by Drs. Robert Kaplan and David Norton as a
performance measurement framework
 Added strategic non-financial performance measures to
traditional financial metrics to give managers a “balanced”
view of performance.
 The “new” balanced scorecard transforms an organization’s
strategic plan from a document into “marching orders.”
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42. Balanced Score Card
 View the
organization
from four
perspectives
 Develop
Metrics
 Collect Data
 Analyze Data
to each
perspective
 PDCA
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43. Balanced Score Card Continued
 Why Implement a Balanced Scorecard?
 Increase focus on strategy and results
 Improve organizational performance by measuring what
matters
 Align organization strategy with the work people do on a
day-to-day basis
 Focus on the drivers of future performance
 Improve communication of the organization’s Vision and
Strategy
 Prioritize Projects / Initiatives
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44. Balanced Score Card Continued
 Scorecards simply for organizing measures aren’t justified.
 Start with the end in mind, focus on the desired results
 Stephen Covey – “People and their managers are working so
hard to be sure things are done right , that they hardly have
time to decide if they are doing the right things.”
 Developing a balanced scorecard system is like putting a
puzzle together
 The pieces are strategic components
 They have to be checked for fit
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45. Recall Lou Novikoff, a.k.a.“The Mad
Russian”, Chicago Cubs, 1940s
 Stole third base with
the bases loaded
 “I got a good jump” he
explained.
 Unfortunately, there is
no point in being fast at
doing the wrong thing.
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46. BSC Continued
 The major system components:
 Engaged Leadership  Customers and Stakeholders
 Interactive Communications and  Customer Value Proposition
Change  Strategy, Strategic
 Management Objectives, and Initiatives
 Vision and Mission  Performance Measures
 Core Values  Performance Information
 Organization Weaknesses and Reporting
Strengths  Rewards and Recognition
 Evaluation
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47. Questions and Discussion?
 How many currently use or have experience with the
BSC method of planning and deployment?
 Do you notice any added benefits or disadvantages
of Hoshin Kanri vs. Balanced Score Card?
 If we aren’t using either method, what else is being
done in order to fill this need?
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48. Quality Measurement Systems that
Support Strategy Deployment
Baldrige Criteria ISO Standards
1. Leadership 1. Customer Focus
2. Strategic Planning 2. Leadership
3. Customer and Market Focus 3. Involvement of People
4. Measurement, Analysis, and 4. Process Approach
Knowledge Management 5. Systems Approach to Management
5. Human Resources 6. Fact Based Decision Making
6. Process Management 7. Mutually Beneficial Supplier
7. Results Relationship
2.2 Strategy Deployment: With ISO-
How do you deploy your strategy? Describe how The concentration is on the quality systems
your organization converts its strategic
objectives into action plans. Summarize your Takes an adoption of process approach
organization’s action plans, how are they
deployed, and KEY action plan performance
measures or indicators. Project your With Baldrige-
organization’s future performance relative to Performance excellence for entire organization
KEY comparisons on these performance
measures or indicators. Focus upon business results
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49. Discussion Topics
 How many have experience working for companies
that utilize either ISO and/or Baldrige?
 Does it seem that one system is utilized more often
or more commonly accepted? Why?
 Does the industry affect which system is utilized?
 What else might affect which system is selected?
 Is there a need for the use of both systems?
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50. Discussion Points
 All methods seem to have a distinct tie back
to Plan-Do-Check-Act
 Are we informally utilizing these methods on a
daily basis, in some cases without realizing it?
 If so, would it be beneficial to formalize and
document the process?
 If so, what ways can we go about that or how
have you seen it done in the past?
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51. The Mind of the Lean Manager
Thoughts from Jim Womack
 Finding companies with X-Charts, completed A3 analysis,
and all the elements of standardized work.
 What’s missing?
 Success in Achieving the Goals
 Inability to actually read and interpret A3
 No standardized work or not following it
 Lean management techniques are quickly becoming tools
(which are necessary).
 Every manager loves a tool because it seems to provide a
short cuts to doing a better job.
 They can’t achieve their potential results or even any results
without managers with a lean state of mind to wield them.
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52. What is a lean state of mind?
 The Lean manager embraces the role of problem solver
 The Lean manager realizes the no manager at a higher level can
or should solve a problem at a lower level.
 Instead assign responsibility to the manager at the lower level
 The Lean manager believes that all problem solving is about
experimentation by PDCA
 The Lean manager knows that no problem is ever solved for ever
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53. Other Sources of Information
 Books In IQC’s Library
 Hoshin Kanri: Policy Deployment for Successful
TQM - Yoji Akao
 The Balanced Score Card – Translating Strategy
into Action
 Kaizen Sketch Book
 http://www.kaicomm.com/KaizenSketchbook.html
 And Multiple Others….
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54. Hoshin Kanri for the Lean Enterprise
 Technical description of Hoshin
 Has a CD with all forms
 Good resource; tough reading
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55. Getting the Right Things
Done
 Novel style, a la “The Goal”
 Author has terrific experience
 Has excellent examples
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56. Leadership and Self-Deception
 Deals with root cause of people
problems
 Novel style
 You can use it instantly
 “Outside the Box” Thinking
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57. Resources and References
 Balanced Scorecard and Hoshin Kanri by Marketing Partners, Inc.
 http://www.mpicompanies.com/PDFs/Balanced%20Scorecard%20and%20Hoshin%20Kanri.pdf
 Management Coaching and Training Services
 http://www.mcts.com/Hoshin-Kanri.htm
 Hoshin Kanri – Lean Strategic Planning by Joe Ely
 Director of Operations for Cook Biotech
 Baldrigeplus.com
 http://www.baldrigeplus.com/Exhibits/Exhibit%20-%20Catchball%20processes.pdf
 Strategy Deployment in Action: One Executive’s Perspective
 http://www.lean.org/Events/WebinarHome.cfm (Lean Enterprise Institute)
 Pascal Dennis and Dave Brule II
 Balanced Score Card Institute
 http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx
 Management By Objective
 http://www.12manage.com/methods_smart_management_by_objectives.html
 The Mind of the Lean Manager
 Jim Womack – Founder and Chairman of Lean Enterprise Institue
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