Strategy Deployment:

Accelerating Improvement Through

Focus and Alignment

January 26, 2012 (Webinar)

Company
LOGO
 Your experience with
Strategy Deployment

5% Haven't heard of
16% 16%
Heard of, but don't
understand
16%
Understand, but haven't
47% deployed
Beginning to deploy

Seasoned

2
 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; co-
developer of Metrics-Based Process Mapping:
An Excel-Based Solution; author of forthcoming
The Outstanding Organization (McGraw-Hill, Karen Martin, Principal
Karen Martin & Associates, LLC
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 3
 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:

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Materials are available on our SlideShare site:

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© 2012 Karen Martin & Associates, LLC 4

 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 Is inefficient
o Produces lower quality
o Produces chaos
o Slows results
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 The Evidence
Poll – 760 newsletter subscribers
To what degree are your organization's improvement priorities:
Always Frequently Sometimes Never
Well-defined? 11% 38% 46% 5%
Well-communicated? 9% 32% 53% 6%

Stable? (i.e., priorities only

change when absolutely 7% 33% 47% 13%
necessary)

Aligned across the organization?

(i.e., departments do not work at 7% 22% 59% 12%
cross-purposes)

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

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 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.

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8
 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

 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

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 Project Results Due to Focus
1. Sporting goods manufacturer
1. Pre-SD = 24 new product launches a year
2. Post-SD = 73 new product launches a year
3. No additional resources; higher quality
2. Rockwell Automation
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20 20

15 Projects
12 12 Started
10 Projects
Completed
5
3
0
Pre-Focus Post-Focus
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 The Reality…

You CAN’T Do It All –

and do it well.

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 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.”

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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.

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Supply Chain - 2007 FG Lbs Sold/Total Hours Worked

Productivity (Pounds / Hr Worked)

115.0

Pactiv
108.0
Implements 105.9
Strategy
Deployment
101.0

95.2

94.0 93.0

90.6

87.0 86.3
84.8

80.0
FY '06 FY '07 FY '08 FY '09 FY '10 YTD '11

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 Recession deepens
2.5x more
Medicaid patients

ThedaCare
Implements
Strategy
Deployment

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 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-do-
study-adjust)—aka PDCA (plan-do-check-act).

© 2012 Karen Martin & Associates, LLC 17

 Key Feature: Catchball

What?
How? Exec
Who? Team
When?

What?
How? Sr. Mgmt
Who?
When?

What?
How? Middle
Who? Mgmt
When?

What?
How? Frontlines
Who?
When?

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 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-do-
study-adjust)—aka PDCA (plan-do-check-act).
© 2011 Karen Martin & Associates, LLC 19
 Action Plan
Improvement Priority: Management Owner: Date Created:
3 - Value Stream Map 10 Processes Bob the Boss Dec. 12, 2005
Next Review:
Team: Jim, Bill, Jill, Cindy, Wendy
Feb. 13, 2006
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
Timeline
improve the processes, we will reduced the time it takes from reciept of order to the Status
delivery of product. This will in turn result in increased sales when the customers = Original Plan x = Complete Red, Yellow, Green
become increasingly satisfied with our quick response times. Planned 2011 (Actual and Predicted)
Com plete
Action Step/ Kaizen Events Owner Deliverable Date
Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec

1 - Identify top 10 products to be mapped Jim Top 10 identified and communicated 01/31/06 X
2 - Assign leaders to each product to be mapped Jim Leaders aw are of their products 02/03/06
3 - Lean training to all VSM Leaders Frank Consultant delivers training 02/15/06
4a - VSM kaizen for product A Jill Mapped and on the w all 02/22/06
4b - Complete actions to achieve 30% reduction in overall leadtime Jill Validated results 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

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 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-
do-study-adjust)—aka PDCA (plan-do-check-act).

© 2011 Karen Martin & Associates, LLC 21

 Common Components of the A3 Report
Plan Do, Study, Adjust
Theme: “What is our area of focus?” Owner: Person accountable for results.

Background Countermeasures / Implementation Plan

• Problem statement • What?
• Context - why is this a problem? • Who?
• When?
• Where? (if relevant)
Current Condition
• Diagram of current situation or process
• What about it is not ideal?
Effect Confirmation
• Extent of the problem (metrics)
• What measurable results did the solution
achieve (or will be measured to verify
Target Condition / Measurable Objectives effectiveness)?
• Diagram of desired state • Who’s responsible for ongoing
• Measurable targets – how will we know that measurement?
the improvement has been successful?

Follow-up Actions
Root Cause & Gap Analysis • Where else in the organization can this
• Graphical depiction of the most likely direct solution be applied?
(root) causes
• How will the improved state be standardized
and communicated?
 Strategy Deployment Requirements

Organizational commitment to and display

of key excellence-producing behaviors:
 Clarity
 Focus
 Discipline
 Engagement

© 2012 Karen Martin & Associates, LLC 23

 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
 Problems Opportunities

Current Target
Condition Condition
Point A Point B

Environmental
Factors

Annual Improvement Plan: How to Get from Point A to Point B

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 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!)
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 PACE Prioritization Grid
9 22 17
4 23 8 21
10 3
Easy 5
13
1 16
15
Ease of Implementation

20 14
19
6
7

11
2 18

12
Difficult

High Low
Anticipated Benefit
 Evolving Prioritization Grid
Third dimension: Urgency Highest
priority
Mathematical Formula
0.7

0.6

0.5
Ease of Implementation

0.4

0.3

0.2

0.1

0
0 0.1 0.2 0.3 0.4 0.5 0.6

Potential Benefit
Figure 3.1 - Prioritization Grid
 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!)
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 Simple Project Plan
Implementation Schedule (weeks) Date
Task Type Accountable Progress
1 2 3 4 5 6 7 8 9 10 11 12 Complete
100 25
Create visual board to track KPIs. KE Mary W.
75 50
100 25
Clearn up data base. Proj George S.
75 50
100 25
Create self-quality checklist. KE Sally R.
75 50
100 25
Create standard template. KE Sally R.
75 50
100 25
Modify weekly report. JDI Bruce M. 9/22/2011
75 50
100 25
75 50
100 25
75 50
100 25
75 50
100 25
75 50
100 25
75 50

Type: JDI = Just do it; KE = Kaizen Event; Proj = Project

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 Annual Improvement Plan
Tier 1 Priority: Executive Owner: Date Created:

Tier 2 Priority: Tactical Owner:

Background/Scope: Next Review:

Measurable Objective(s):
Core work team: Input/Review needed by:
Relationship to Annual Business Goal(s): Timeline
Status
= Original Plan X = Complete % (Red,
Due Complete Yellow,
2012
Date Green)
# Action Item Owner Deliverable 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
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 Annual Improvement Plan Timeline
Company ABC
Priorities
FY 2012 FY 2013 Exec Tactical
Priority Others
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Owner Owner
MS-2
MS-1
Integrate DHR Begin Acct Brad P
Ops
Complete
Complete New
Travel Program Begin Complete Scott R Fred S
Roll-out

Roll-out Tablets to Begin &

Brad P
Installation Complete

Lisa D,
Complete 360 Marina,
Begin Complete Justin C Steve R
Roll-out SM, Tech,
Hal, Doug

Create Line-item
Begin Complete Lisa B Mark C
P.O.s

Refinance credit
Begin Scott R
facility

Complete ADP
Begin Complete Gary O
Roll-out

Not
Develop & Roll-out MS-1 MS-2 MS-3
Begin complete Steve C TBD
Handheld 2.2 Clean Code Pilot Go live
until 2013

Complete GPS RDs Cons.,

Begin Complete Steve C
Roll-out HR, Fleet

Complete "River"
(One Soft) Begin Complete Lisa B
Roll-out

Develop Safety
Begin Complete Gary O
Program

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 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
 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

 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

 Clarifying the PDSA Cycle

Phase Detailed Steps

1. Define the problem or opportunity.

2. Set a target condition.

3. Grasp the current condition.

Plan

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.

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
For Further Study
 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

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 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 non-
supervisory 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
 For Further Questions

Karen Martin, Principal

7770 Regents Road #635
San Diego, CA 92122
858.677.6799
[email protected]

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