Deploying Hoshin Kanri as a Competitive Weapon

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Deploying Hoshin Kanri as a Competitive Weapon!
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What are we going to cover?

• What is Hoshin Kanri and what does it promise?
• How does it work (in theory)?
• What can go wrong (in practice)?
• Whats behind this?
• 4 key challenges to overcome
• Proven strategies to make Hoshin really work
• Key takeaways

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Hoshin Planning The Concept
A Vision Compass
Hoshin Planning is a systematic and disciplined
process to align, communicate and execute
strategy by focusing on those few breakthrough
objectives that give you competitive advantage.
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Hoshin Planning The Process
Hoshin Process in Concept
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Reasons Not to Do This....

• And the leaders will say....
• We already do this.
• We do not have enough time to do this.
• We can not possibly plan that far into the
  future.
• We have tried this before.
• Our corporate leadership (insert board if
  appropriate) will never give up control.
• The way we do it today is just fine.
• We will not maintain this process.
• Etc, Etc, Etc...

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Recognise these symptoms?

• And the organisation will see...
• Too many bad projects in process.
• Very long lead-times for improvements.
• Constantly missed budgets and forecasts.
• Senior management vision does not match
  organizational activities.
• Annual objectives rolled out in March instead of
  January.
• Way too many good projects in process.
• Year to year plans never seem to connect.
• Most employees never seem to feel a part of the
  team.
• Little connection between strategy and continuous
  improvement.

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The Basic Model....
A simple model.....

• Performance Management Systems are really
  designed to help organisations perform three
  basic tasks
• Monitor We have to examine our core activities
  on a regular basis. Collecting data.
• LearnFrom that examination we have to better
  understand what is working and what is not.
  Turning data into information.
• Improve Take the information and turn it into
  ACTION!

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Hoshin is rapidly becoming the de facto strategy
deployment methodology in Corporate America
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Hoshin can clearly be a Competitive Weapon...
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The 10,000 Foot View
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Hoshin and the Balanced Scorecard...
Hoshin Plan
Strategy Map
Financial
Increase Profit
Maximise Utilisation
Customer
Retain Customers
Low Cost Offer
Objective
Measure
Target
Initiative
Internal
On Ground Time On Time Departure
25 Minutes 95 Flights
Achieve Fast Ground Turnaround
Reduce Turnaround Time
Fast Turnaround
Learning
Motivated Crew
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How Hoshin Works (In Theory) The X Matrix
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Balanced Scorecard Strategy Map to X-Matrix
Example
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How Hoshin Works (in Theory)- Cascade and Action
Planning
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How Hoshin Works (in Theory) Strategy and
Performance Review
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How Hoshin Works (in Theory) - Countermeasures
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Some recent data...
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Hoshin Planning in Practice 4 Key Cultural
Challenges to Overcome

• 1 The Commitment Challenge
• 2 The Stretch Goal Challenge
• 3 The Shoot the Messenger Challenge
• 4 The Bureaucracy Challenge

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1) The Commitment Challenge How to ensure
leadership stay the course...

• Typical Mistakes....
• Not starting with/agreeing breakthroughs
• Poor discipline in the cascade
• Constant jerking of the chain
• Lack of linkage to reward and recognition
• Misalignment with the budget

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Proven Strategies for Building Commitment...
Perception that the effort will deliver
improved performance
Perception that Improved performance will lead
to the outcome
Value of Outcome
Degree of Effort
Improved Performance

• ? Three Pre-requisites for Sustained Commitment
• Clear line of sight to the breakthroughs
• Clear evidence that Hoshin approach delivers
  better outcomes
• Reward and recognition is actually linked to
  executing hoshin plan

Perceived value of the outcome
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2) The Stretch Goal Challenge How to stretch
whilst keeping the plan realistic and
achievable...
We need to double sales by 2015
A Parody...?
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The objective A3 provides a basis for a
constructive dialogue on what can be achieved...
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3) The Shoot the Messenger Challenge How to
ensure the process remains constructive...
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Proven strategies to ensure the dialogue stays
constructive and focused on the future...
Bowling Chart Focus on the forecast reds
Countermeasure Plan Majority of time should focus
on reviewing the countermeasure plan...
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The Bureaucracy Challenge Avoiding the
administration getting in the way of the
process...
X Matrix
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Let the right software take the strain....
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Key takeaways...

• Hoshin is rapidly becoming the de facto Strategy
  Deployment approach.
• Executed well, Hoshin can be a real competitive
  weapon.
• Development and reinforcement of a supportive
  culture is the primary challenge.
• Organisations typically achieve more, in less
  time, with the Hoshin process with external help.
• The right software can improve the probability of
  success by taking the heavy-lifting out of the
  Hoshin process.

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Questions? Thoughts?

• It is not the strongest of the species that
  survives, nor the most intelligent, but the one
  most responsive to change.
• Charles Darwin

There is great power in knowing where you are
going and passion in knowing how as an individual
you fit in! Anonymous
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