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Strategy Deployment A discussion of both methods and


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Title: Strategy Deployment A discussion of both methods and

Strategy Deployment
  • A discussion of both methods and challenges
  • Chris Yockey
  • Clipper Windpower

Discussion Outline
  • Intro and Background
  • Clipper Windpower
  • Definitions
  • Deployment Methods
  • Management by Objective
  • Hoshin Kanri
  • Balanced Score Card
  • Quality Management Systems that Support Strategy
  • ISO
  • Baldrige
  • Discussion Points
  • The Mind of the Lean Manager by Jim Womack
  • Resources and References

My Background and Experience
  • Education
  • B.A. in Business Management from UNI
  • Working on Masters of Manufacturing Operations at
  • Work Experience
  • Human Resource Intern at Beef Products Inc.
  • Department Manager for Pella Windows and Doors.
    (Clear Lake)
  • Developed interest and passion for Continuous
  • Quality Supervisor for Beef Products Inc.
  • Assembly Supervisor for Clipper in March 2007
    (Cedar Rapids)
  • Continuous Improvement Manager for Clipper in
    November 2009

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.

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

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
  • Ive been dedicating extra time to this
    particular topic
  • Ive collected and condensed some SD information
  • Many of you probably have relevant experience
  • Please, stop me at any time for discussion or if
    youd like to contribute by further clarifying a
    particular item.

Focus of Todays 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
  • My Approach
  • Basic Overview of the different Methods
  • Tools associated with those methods
  • Open Discussion
  • Thought Provoking Article

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.
  • Its a Criteria for Performance Excellence
  • 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, its a necessary part of realizing

  • Strategy
  • Is a plan of action designed to achieve a
    particular goal.
  • The word strategy has a strong military
  • 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
  • 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

What is Strategy Deployment?
  • The nervous system of a business system
  • Guides planning and action across an
    organizations total value stream
  • Provides a closed circuit between an
    organizations business needs and day-to-day

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?

Discussion Points
  • Questions we should be asking as strategic
  • How widely understood is our companys mission
    and/or vision and the companys 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 companys ability to
    effectively deploy a strategy.
  • A commander cant effectively deploy troops
    without each of them clearly understanding the

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

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

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
  • 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

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

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
    companys MBO process were reviewed?
  • Does MBO provide an opportunity for all employees
    to provide their input and understand their
  • Any other challenges or short comings experienced
    by those who have utilized or been a part of MBO?

  • 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.

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

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
  • Catch Ball Target Deployment
  • Project Charter
  • Standard Process for follow through
  • Reflection
  • Review of what worked and what didnt work

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
  • PLAN a plan of action is developed to address a
  • DO the plan is implemented.
  • CHECK information is collected on the control
  • ACT the results are analyzed. Corrective action
    is identified.

Hoshin Kanri
  • Three key elements
  • Catchball
  • Project Charter (A3-T)
  • X-Charts (A3-X)

  • A participative approach to decision-making.
  • Used in policy deployment to communicate across
    management levels when setting annual business
  • The analogy to tossing a ball back and forth
    emphasizes the interactive nature of policy
  • 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.

Project Charter (A3-T)
  • Boil things down to one page
  • Clarifies that no one person can accomplish a
  • Very reminiscent of PDCA and DMAIC

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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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  • 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.

  • Metrics Area
  • Fill this in second
  • Put in standard and/or mandated operational
    figures your group needs to meet

  • Tactics Area
  • Work on this third
  • Will lay out specific projects
  • Will become the basis for managing implementation

  • 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

  • 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

  • Strategy-to-Tactics Correlation
  • Does a tactic really support one or more
  • Is there a more effective tactic?
  • Is there a non-necessary tactic?
  • Do you really understand the individual strategy

  • 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?
  • Do you really understand the individual metrics?

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

  • 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?

  • 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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Hoshin Kanri
  • Strengths
  • Focuses organization on the vital few
  • Communication of a shared vision
  • Creates alignment through participation
  • Encourages cross functional cooperation
  • Planning is systematic
  • Limitations
  • A rigid implementation is necessary
  • Requires a long term commitment
  • Relatively Static the breakthrough objective
    must be stable during a 5 year period

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
  • In what ways was its use effective or
  • Would you recommend this system to others? Why?

Balanced Score Card
  • A Strategic planning and management system
  • May mean different things to different people
    (the BSC spectrum)
  • From a Performance Measurement Framework
  • 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
    organizations strategic plan from a document
    into marching orders.

Balanced Score Card
  • View the organization from four perspectives
  • Develop Metrics
  • Collect Data
  • Analyze Data to each perspective
  • PDCA

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 organizations
    Vision and Strategy
  • Prioritize Projects / Initiatives

Balanced Score Card Continued
  • Scorecards simply for organizing measures arent
  • Start with the end in mind, focus on the desired
  • 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

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.

BSC Continued
  • The major system components
  • Engaged Leadership
  • Interactive Communications and Change
  • Management
  • Vision and Mission
  • Core Values
  • Organization Weaknesses and Strengths
  • Customers and Stakeholders
  • Customer Value Proposition
  • Strategy, Strategic Objectives, and Initiatives
  • Performance Measures
  • Performance Information Reporting
  • Rewards and Recognition
  • Evaluation

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 arent using either method, what else is
    being done in order to fill this need?

Quality Measurement Systems that Support Strategy
  • Baldrige Criteria
  • 1. Leadership
  • 2. Strategic Planning
  • 3. Customer and Market Focus
  • 4. Measurement, Analysis, and Knowledge
  • 5. Human Resources
  • 6. Process Management
  • 7. Results
  • 2.2 Strategy Deployment
  • How do you deploy your strategy? Describe how
    your organization converts its strategic
    objectives into action plans. Summarize your
    organizations action plans, how are they
    deployed, and KEY action plan performance
    measures or indicators. Project your
    organizations future performance relative to KEY
    comparisons on these performance measures or
  • ISO Standards
  • 1. Customer Focus
  • 2. Leadership
  • 3. Involvement of People
  • 4. Process Approach
  • 5. Systems Approach to Management
  • 6. Fact Based Decision Making
  • 7. Mutually Beneficial Supplier Relationship
  • With ISO-
  • The concentration is on the quality systems
  • Takes an adoption of process approach
  • With Baldrige-
  • Performance excellence for entire organization
  • Focus upon business results

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
  • What else might affect which system is selected?
  • Is there a need for the use of both systems?

Discussion Points
  • All methods seem to have a distinct tie back to
  • 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?

The Mind of the Lean Manager Thoughts from Jim
  • Finding companies with X-Charts, completed A3
    analysis, and all the elements of standardized
  • Whats 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 cant achieve their potential results or
    even any results without managers with a lean
    state of mind to wield them.

What is a lean state of mind?
  • The Lean manager embraces the role of problem
  • 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

Other Sources of Information
  • Books In IQCs Library
  • Hoshin Kanri Policy Deployment for Successful
    TQM - Yoji Akao
  • The Balanced Score Card Translating Strategy
    into Action
  • Kaizen Sketch Book
  • http//
  • And Multiple Others.

Hoshin Kanri for the Lean Enterprise
  • Technical description of Hoshin
  • Has a CD with all forms
  • Good resource tough reading

Getting the Right Things Done
  • Novel style, a la The Goal
  • Author has terrific experience
  • Has excellent examples

Leadership and Self-Deception
  • Deals with root cause of people problems
  • Novel style
  • You can use it instantly
  • Outside the Box Thinking

Resources and References
  • Balanced Scorecard and Hoshin Kanri by Marketing
    Partners, Inc.
  • http//
  • Management Coaching and Training Services
  • http//
  • Hoshin Kanri Lean Strategic Planning by Joe Ely
  • Director of Operations for Cook Biotech
  • http//
  • Strategy Deployment in Action One Executives
  • http// (Lean
    Enterprise Institute)
  • Pascal Dennis and Dave Brule II
  • Balanced Score Card Institute
  • http//
  • Management By Objective
  • http//
  • The Mind of the Lean Manager
  • Jim Womack Founder and Chairman of Lean
    Enterprise Institue