This presentation focuses on how to generate leadership "pull" for transformation initiatives. Those organizations less mature in their strategy execution journey tend to focus on immediate challenges together with the ROI of projects and programs. Strategic alignment is often neglected. In many ways the focus in less mature organizations is a function of the Operational excellence team's ability to control projects, but lesser ability to control or influence the more strategic issues. This ability alone is a key differentiator between those teams that don't make real progress down the maturity continuum and those that do. So, what are the key factors for success? Firstly, the organization needs to systematically translate strategy into actionable priorities. Easier said than done. Once that's achieved, management somehow need to maintain a real focus on the execution of those priorities. Finally, the executive need to be able to make course corrections early to stay on track. Let's look at some of the practical ways to achieve these challenging aspirations. The leading organizations are increasingly looking to implement a "closed loop" strategy execution process. The first key step is to choose an appropriate methodology to ensure goals are clear and cascaded in a systematic way. Without doubt, the best way to achieve this is to use the Hoshin planning approach. Hoshin is a structured and systematic way of linking strategic intent with the initiatives required to deliver the intent. A key tool aiding the process is the Hoshin x matrix together with A3's. We will explore the X matrix in greater detail in another presentation. You will be able to find webinars on the topic at our site - www.i-nexus.com. A3's are essentially a visual representation of progress against intent and are very useful in providing real time updates on progress and blockers. One of the key challenges faced by executives is the ability to spot non performance early - to have the leading measures in place. By influencing the leading measures, management give themselves enough time to take corrective action before its too late. As suggested in the presentation, visual management is a key element of achieving day to day focus.Having a strategy execution platform such as i-nexus helps the team to generate and manage the visual reporting required as well as provide full integration of the project initiatives to goals.

1. © i-nexus 2010
Did We Move the Dials?
Driving Strategic Transformation Programs

2. © i-nexus 2010 Slide 2
Observations on Transformation Programs in 100+ Large
Organisations
LevelofPull
Level of Maturity
Size of bubble = Relative Impact on Shareholder Value
Focus
on Project
Success
Focus on Program
ROI
Focus on Operational
Performance
Focus on Strategic
Alignment
Big Y = Speed to Tangible Benefits
Big Y = Initiative ROI
Big Y = Process KPI Improvement
Big Y = Business Results
Improvement

3. © i-nexus 2010 Slide 3
Most organisations Follow A Similar Journey....
The Business Execution Maturity Model (BEMM)
Goal
Driven
Process
Driven
Program
Driven
Project
Driven
BEMM
Levels
Key
Goals
Demonstrate Success
Accelerate Benefit Delivery
Make Improvement Sustainable
Align Improvement With Goals
Level 1 Level 2 Level 3 Level 4
We Need To Implement
Some Change Projects
We Need a
Company-wide
Transformation
Program
We Need Our
Operational Managers
to Drive Improvement
We Need to Align
of Transformation
Efforts With Our
Business Goals
Typical
Decisions
Push Pull
Predominant
Change Mode

4. © i-nexus 2010 Slide 4
What is the primary way your organization measures the
success of your process excellence initiatives?
Hard financial benefits delivered
Change in organizational culture
Performance against KPIs of the program
Contribution against strategic goal
Increase in customer satisfaction
20122008
N=103
10 4020 30 50 60
64
7
11
5
13

5. © i-nexus 2010 Slide 5
Conceptually what do you need to succeed?
Desired
Business
Impact
Changed Process Outcomes
Process, People and System Changes Needed
to Achieve Changed Outcomes
Ability to systematically
translate strategy into
actionable priorities
Ability maintain a laser focus on execution
Ability to
systematically make
course corrections as
we execute

6. © i-nexus 2010 Slide 6
Practically how do we do this?
Learn more –
visit
www.i-nexus.com
Leading organizations are increasingly combining
key concepts from...
• Hoshin Planning – X-Matrix, Bowling Charts, A3s
• Operational Excellence – Stage Gates, PDCA,
Lean Six Sigma Tools
• Balanced Scorecards – Strategy Maps, Cascaded
Scorecards
....to create an integrated ‘Transformation’ system
Closed-loop Business Execution

7. © i-nexus 2010 Slide 7
Systematically translate Objectives to Actionable Priorities
Strategy
Maps
Hoshin X-matrices
A3s/Annual Improvement Plans/Action Plans
Ability to systematically
translate strategy into
actionable priorities

8. © i-nexus 2010 Slide 8
Strategy mapping helps you create consensus, X-
matrices help you translate into actions..
Financial
Customer
Internal
Learning
Measure Target Initiative
Increase
Profit
Maximise
Utilisation
Retain
Customers
Low
Cost Offer
Fast
Turnaround
Motivated
Crew
Objective
Achieve Fast
Ground
Turnaround
On Ground
Time
On Time
Departure
25 Minutes
95% Flights
Reduce
Turnaround
Time
Strategy Map
Hoshin Plan

9. © i-nexus 2010 Slide 9
Strategy Map to X-Matrix Example

10. © i-nexus 2010 Slide 10
The A3 helps those responsible for goals to charter
the action plan, track the results and manage risks
Ground Operations Transformation Program
Background
Airplane turnaround time is averaging 140 minutes. The
consequence of this is poor utilization of assets and low customer
satisfaction/below industry average customer retention – both of
which are eroding profitability. We need to dramatically reduce
turnaround time and increase on-time departures.
Offloading process
improvement
Improved Maintenance
Schedule
Scoping is behind plan
Process Changed
Organisation Changed

11. © i-nexus 2010 Slide 11
Systematically maintain a laser focus on
execution...

12. © i-nexus 2010 Slide 12
Execute against a shared plan with clear
milestones and

13. © i-nexus 2010 Slide 13
Grasp the situation – utilise integrated bowling charts
to track progress/impact of strategic initiatives

14. © i-nexus 2010 Slide 14
Keeping on track – Use MAAR to focus on root
causes and to instigate countermeasures
Dry Lot Release Date
IndividualValue
28-O
ct-03
20-O
ct-03
11-O
ct-03
01-O
ct-03
21-Sep-03
11-Sep-03
02-Sep-03
24-Aug-03
15-Aug-03
07-Aug-03
01-Aug-03
100
90
80
70
60
50
40
30
_
X=61.35
UCL=92.19
LCL=30.51
1 2
Control Chart of Total Yield
Phased Introduction of new
insert design and new algorithm/
illusmination levels and
camera orientation.
Cause Action Owner Due Status
A Reduce
instances of A
PTD Jan
B Remove
instances of B
ABC Feb
Measure Analyse
Action
Review
On Time Departure Analysis of Root Causes
Action Planning/ProgressValidation of Improvement
A B C D
R
C
J F M A M J J A S O N
A 10 21 16 18 0 0 0 0 0
B 18 23 24 16 2 9 0 2 6

15. © i-nexus 2010 Slide 15
Conceptually what do you need to succeed?
Desired
Business
Impact
Changed Process Outcomes
Process, People and System Changes Needed
to Achieve Changed Outcomes
Ability to
systematically make
course corrections as
we execute

16. © i-nexus 2010 Slide 16
Paradigm Shift 1 -
Review execution not historic performance
From: Are we meeting our targets? To: Will the actions we have underway
enable us to achieve our goals?
FebJan Mar MayApr Jun
10
20
40
30
50
70
60
90
80
100
Action: ABC
Target Date: Aug
Impact: +20 UOMs
Action: XYZ
Target Date: Oct
Impact: +35 UOMs
SepJul Aug NovOct Dec

17. © i-nexus 2010 Slide 17
The Real Question is ‘Are We Likely To Hit Our
Targets?’
General Display Reports & Outputs
Strategy Navigator
Delete Inline Edit Save Cancel Edit ViewDisassociate
Business Navigator Strategy NavigatorStart
CEO
Selected View
Business Unit
Create View
Show Children Hide Children Refresh
Name OwnerPI TLS Trend Q1 2010
Target Actual
Q2 2010
Target Forecast
Q3 2010
Target Forecast
Q4 2010
Target Forecast
Status UOM
- Example Manufacturing Business 100 80 100 85 100 85 100 90
35 40 40 10 60 70
100 102 200 157 300 100
Agreed
Agreed PI60
80 PI
100 60 100 70 100 100 80
50 100 50 100 65
CEO
COO
Quick Filter No Filter Applied – Showing 3 Items
Shift Volume Production of
Product A to Low Cost Region
Reduce Working Capital by
20% in XYZ Facility
Reduce Inventory by
$25M
Inventory Turns
Implement
Supply Kanban..
Implement
Vendor Sched..
Reduce Average Cash
Collection by 15 Days
Debtor Days
Reduce Invoice
Errors
Setup New Facility in
Country X
-
-
-
-
-
- 12 102 200 157 300 290 400Agreed #70 8.4 12 8.4 12 8.4 12 9.5Ops Manager
70
58
70
Agreed PI50 Ops Director
- %55 Project Leader
- %100 Project Leader
Draft PI85 Finance Director
Draft Days85
Financial
Controller
- %100 Project Leader
Agreed PI100 Ops Director
Agreed %100 Project Leader
44 102 200 157 300 -100 - - - -
0.1 102 200 157 300 290 4003 0.1 3 0.1 2.6 0.1 2.6
-
25 102 200 157 300 10010 45 30 68 10065
100 102 200 157 300 10085 100 85 100 100
65 102 200 157 300 290 40076 65 76 65 76 65 59
85
70 102 200 157 300 -10 100 50 - -100
55 102 200 157 300 290 40060 76 78 94 98 100 100
Scrap Rate- Agreed %30 Ops Manager
Improve
Process Yield
- %0 Project Leader
100 102 200 157 300 290 400100 100 100 100 100 100 100
10 102 200 157 300 290 40015 20 45 80 100 100 -
65 65 65 65
Improve Process Yeild
Impact: 0.4% Reduction
Date: 28/09/2010

18. © i-nexus 2010 Slide 18
How can we ‘get fit’ for Business Execution?
Drive Strategic and Sustainable Transformation
Develop
Core Execution
Competencies
•Causal Thinking Skills
•Prioritisation/
Improvement Tools
•PDCA Approach to
Operational Reviews
•Process Thinking
Crystallize
Vision/Hoshin
Planning Approach
•Establish Annual
Hoshin Timetable
•Provide Guidance on
Stretch Goal Setting
•Codify the Review
Process
•Implement Leader
Standard Work
Align Resource
and Reward
Planning
•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

19. © i-nexus 2010 Slide 19
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

20. © i-nexus 2010 Slide 20
www.i-nexus.com