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Organizational Alignment and Policy

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					Organization Alignment using
Policy Deployment




           Created with funds from WIRED NW
Organization Alignment and Policy
Deployment
After the class today you should be able to:
   Identify the top goals of your company
   Understand “break though” goals
   Produce your own “X” Matrix
   Know what a “bowler “ is and how it is used
   Create actions plans
   Develop a countermeasure



                       Created with funds from WIRED NW
Roots of Policy Deployment
 Called “Hoshin Kanri”
    Hoshin- Direction
    Kanri- Map or plan
 1960’s- Originated in Japan as part of TQC (Total
  Quality Management)
 1980’s- Widely used in Japan
 Based on MBO (Management by Objectives) and Plan-
  Do-Check-act improvement cycles


                         Created with funds from WIRED NW
Policy Deployment
 To align all efforts management must translate
                 Goals into Actions
• Actions must be tracked and measured to assure
                 Results meet Goals
 This policy deployment process is called
                    Hoshin Kanri

                      Created with funds from WIRED NW
Need for Alignment
 Focus change energy on area with the “mass” to move
  the needle
 Align all levels to Corporate Goals
 Transform long range plans to actions
 Consistent methodology
 Drive actions and accountability




                      Created with funds from WIRED NW
Hoshin Kanri – Harness the Power
                                                           ANA




                                                  GOAL
                                                        Delivery             Cost


                                                                   Employee
                                              Quality             Involvement

                                          OBJECTIVES
                                         Safety



                                     Created with funds for WIRED NW
                        orm Team           orm Team                                            rmT



                          Heijunka       Prevent Problem          Early Launch      Engage Mgmt.
                                           Recurrence             Involvement        At Worksite


             MANAGEMENT CREATES STRATEGIES
                         
                                                            
                                                                                                         
                                                                                                           
                       
                      
                                                        
                                                          
                                                                                                     
                                                                                                       
                                                                                                     




            SUPERVISORS CREATE ACTION PLANS

                                                                                  Employee
           Safety              Quality                  Delivery                 Involvement                   Cost



                    ASSOCIATES CREATE RESULTS
                              Created with funds from WIRED NW
Lean Conversion Process
 Education-
    All levels on Lean Principles
 Policy Deployment
    Establish key projects, metrics, linkages,
     accountabilities
    Value Stream Mapping
      Establishment of future state and work plans

    Work plan execution
        Lean tool applications
        Best practices cross linking
                             Created with funds from WIRED NW
     Strategic Planning:

 Linking Long-term Strategic
Goals to Current Action Plans


            Created with funds from WIRED NW
   Strategic Planning Process
1. Assessment: Candid analysis of where you are today
2. Mission: What you do
3. Vision: Where you want to be
4. Strategic Plan: How do we get from where we are to
   where we want to be?
5. Action Plan: How do you set short-term action plans
   to get to your long-term goals?


                      Created with funds from WIRED NW
Strategic Planning
How do we bridge the gap from where
  we are to where we want to be?


 Policy Deployment Map


              Created with funds from WIRED NW
 Policy Deployment
Components of a Policy Deployment Statement:

    1.   Start with a Vision
    2.   Strategic Results Required
    3.   Strategic Objectives
    4.   Near-term Goals
    5.   Current Action Items
    6.   Tracking Metrics



                     Created with funds from WIRED NW
Policy Deployment




                    Created with funds from WIRED NW
Performance Expectation Setting




             Created with funds from WIRED NW
Organizational Business Results
   What are some of the desired business results of
    your organization?

   Write down the three most important “business
    results” expected of your organization.




                     Created with funds from WIRED NW
              “Setting expectations” discussions
              will be effective when you and
              individual:
               Have the same understanding of
               the expectations


               See how all expectations align
               with the group’s or organization’s
               goals



               Reach agreement that the
               individual will meet each
               expectation



Created with funds from WIRED NW
Making Expectations Clear
 Draw a picture of a ball……

 What are the major questions you would ask me to gain
 more understanding of what I expected?




                      Created with funds from WIRED NW
 ”In God we trust – everybody else bring data”


 ”You don’t have to change – after all survival isn’t
  mandatory”




                      Created with funds from WIRED NW
SMART Criteria
S       Specific
M       Measurable
A       Attainable
R       Relevant
T       Time Bound



             Created with funds from WIRED NW
SMART Card Activity
 Determine if your assigned “goals” meet the SMART
 criteria




                    Created with funds from WIRED NW
Created with funds from WIRED NW
Created with funds from WIRED NW
Performance Expectations &
Timing
 Visualize a football field…100 yards
   long

 Your “game plan” can take multiple
   paths…

 Overall goal – win the game on the
  scoreboard

 Interim goals – score by quarter,
   number of first downs, etc.

                          Created with funds from WIRED NW
Performance Expectations &
Timing
 Setting interim goals, with
   adequate timing and rhythm, is
   essential to sustain
   improvement and meet overall
   goals




                       Created with funds from WIRED NW
Performance Expectations &
Timing
    What “rhythm” is your work group on?

                 Annual?
                Quarterly?
                Monthly?
                 Weekly?
                  Daily?
                 Hourly?


                  Created with funds from WIRED NW
Applied Goal Setting
 Is it S.M.A.R.T.?
 How will you measure your success?
 Do all of the people on your team have an
  understanding of the desired outcome?
 How will you get their involvement and support (for
  your stretch goal)?




                        Created with funds from WIRED NW
Daily Management
 Smaller, incremental, performance expectations
 Measure daily – where you ARE vs. where you WANT
  TO BE
 Examples:
       Schedule goals
       Quality goals
       Productivity goals
       Safety goals
       Inventory goals


                             Created with funds from WIRED NW
Share Best Practices
 Share best practices with others:
    How do you set expectations in smaller increments
     (hourly, daily, by shift)?
    How do you measure performance?
    What works best to gauge performance?
    How do you communicate actual performance?
    What doesn’t work? Why not? What are the options?




                           Created with funds from WIRED NW
Hoshin Kanri Steps
   Establish organizational vision
   Develop 3-5 year strategic plan
   Develop annual objectives
   Deploy/roll down to departments
     Departments develop plans and means
     Focus deployment – not everyone needs to be involved
      in everything
     Iterative (catchball) nature may take time




                            Created with funds from WIRED NW
Hoshin Kanri Steps
 Implementation of plans
 Review progress regularly
 Annual review
    Drop or continue incomplete policies
    Check results
    What caused us to miss targets




                          Created with funds from WIRED NW
Relationship Between Strategic
Plan & PD
                                                          World
                                                          Class
                                                          Perf.
                                 Policy                    In:
           Strategic
 VOC                          Deployment                    Q
            Plan
                             Breakthroughs                  D
                                                            C
                                                            &
                                                            S

   Key Deliverable from Strategic Planning:
        Top Level Policy Deployment
                       Created with funds from WIRED NW
7 Phase Policy Deployment Process
                                                    Establish
                                              Organizational Mission
  PLANNING
                                        Strategic Planning/ Develop 3-5
                                        Year Breakthrough Objectives

                                         Develop Annual Breakthrough
                                         Objectives and Improvement
                                                  Priorities
                   Self-Diagnosis
                                        Deploy Improvement Priorities

                                            Implement Improvement
IMPLEMENTATION                                    Priorities

   REVIEW          Root Cause                     Monthly Review
                 Countermeasures
                                                    Annual Review
                                                    Annual Review


                      Created with funds from WIRED NW
Critical Thinking Process (CTP)
   Step 1 : WHAT
Breakthrough Thinking

      Step 2 : HOW FAR
     Annual Breakthroughs

                    Step 3 : HOW
             Identify Key Driver Process

                     Step 4 : HOW MUCH/WHEN
                     Determine Measures & Track

                                                     Step 5 : WHO
                                               Identify Key Resources &
                   Created with funds from WIRED NW
                                                         Deploy
Who do you compare your
company and its performance to?
 Competitors
 Industry Standards
 Best in Class
 World Class


How do you get to be World Class?


                       Created with funds from WIRED NW
CTP Step 1 WHAT?
Breakthrough Thinking
  World-Class
                                          Breakthrough
                                            Objective
 Best-In-Class

Industry Standard                                      GAP


                                               Current
Current Situation
                                               Situation

Breakthrough Thinking Drives to World Class
                    Created with funds from WIRED NW
CTP Step 2 HOW FAR? Identify
First Year Breakthrough Objective

                                                         Breakthrough
                                                           Objective


            Annual BT Objectives Yr 3                                 Yr 3
          Annual BT Objectives Yr 2                                 Yr 2
                                                             Yr 1
       Annual BT Objectives Yr 1
                                                         Current Situation

 Identify First Year Breakthrough Objective


                      Created with funds from WIRED NW
CTP Step 3 HOW?
Identify Key Driver Processes
             Improvement                  Annual Breakthrough
 Why?                                          Objective
             Priority
   Why?
                                                           GAP
      Why?
          Why?
                                              Current Situation
            Why?

 Identify Key Driver Processes


                        Created with funds from WIRED NW
CTP Step 4
HOW MUCH/WHEN? Determine
Measures & Track
                                                      100




                                                       0

  Determine Measures & Track
                   Created with funds from WIRED NW
CTP Step 5 WHO?
Identify Key Resources & Deploy
    100%                                                     100%
             Resource A                              17%
                                                      3%
               Team B                                20%
  Current                                                  Relative
 Resources                                           20% Impact On
             Resource C                                  Improvement
                                                           Priorities
             Resource D                              40%

               Team E
     0%                                                       0%
      Identify Key Resources & Deploy
                  Created with funds from WIRED NW
What Is A Breakthrough?
   Represents SIGNIFICANT change in process
    improvement, especially as seen through the eyes
    of the customer.
   Requires the organization to stretch itself.
   Usually requires multi-functional efforts and
    teamwork.
   Usually, no standard or system exists for this level
    of breakthrough.
   Can be characterized as a “Big Win.”

                        Created with funds from WIRED NW
     Breakthrough Objective
     Summary Checklist
1.  Are daily management systems in place that allow us to improve?
2.  Is it a stretch goal ?
3.  Is it measurable ? (SMART?)
4.  Is it linked to Voice of the Customer ?
5.  Will it provide significant competitive advantage?
6.  Does it require multi-functional involvement?
7.  Will it result in a new standard and/or system?
8.  Is the answer to how to do it unknown?
9.  Have you checked that no problems exist in other areas that
    need to be fixed first?
10. When we accomplish the above objectives, does the
    customer/shareholder benefit?

                             Created with funds from WIRED NW
     Annual Breakthrough Objective
     Checklist
1.  Did you consider the pace of meeting the 3 yr breakthrough when
    developing the annual objective??
2. Does it divide the 3-5 Year Breakthrough into annual amounts?
3. Does it quantify the first year goal?
4. Is it still a stretch goal?
5. When we accomplish the annual objective, does the
    customer/shareholder benefit?
6. Will it provide significant competitive advantage?
7. Does it require multi-functional involvement?
8. Will it result in a new standard and/or system?
9. Is the answer to how to do it unknown?
10. Have you checked that no problems exist in other areas that need to be
    fixed first?
                               Created with funds from WIRED NW
Effective Top Level Improvement
          Priorities Are:
Process Oriented
   • Should lead to the creation of sustainable,
     results-oriented processes… not short-term
     tasks.
Focused
   • Meets Current or Emerging Customer Needs
   • Limited to a Critical Few

                     Created with funds from WIRED NW
Effective Top Level Improvement
          Priorities Are:
Clear
  • Easy to Communicate
  • Simple Flow of Logic
  • Team understands what is to be
   achieved and why



        If you can’t easily communicate…
             Go back, Simplify, Clarify


                      Created with funds from WIRED NW
 Effective Top Level Improvement
           Priorities Are:
Measurable
 The objective you write must be something that
  can be measured




 But, not a Measure!

                       Created with funds from WIRED NW
Top Level Improvement Priorities Contribute
to the Annual Breakthrough Objective
        Improvement
                                                              We apply problem
 Why?
           Priority
                    Annual Breakthrough
                          Objective                          solving techniques to
  Why?                             G                       identify the key process
                                   A
   Why?                            P                             that drives the
    Why?                                                     improvement priority.
     Why?             Current Situation
                                                            This will enable us to
 Identify Key Driver Processes                            reach our overall annual
                                                          breakthrough objective.


                                          Created with funds from WIRED NW
Top Level Improvement Priority
Checklist
1. Does it lead to creation of a sustainable process?
2. Does it lead to creation of a results-oriented process?
3. Does it meet current or emerging customer needs?
4. Is it easy to communicate?
5. Does it demonstrate a simple flow of logic?
6. Is it measurable, but not a measure itself?
7. Does it enable the implementation of a process which
      exceeds budget targets, if and where applicable?

                          Created with funds from WIRED NW
    Identify Targets To Improve
   For Each Improvement Priority
                                        Targets are measures of the
                     100
                                            effectiveness of a given
                                            process

                                        Think in terms of process
                      0
                                            capability (statistics)
  Determine
  Measures & Track                      Improvement Priorities tell
                                            “how”, Targets tell
                                            “how much” & “by when”
• Typically a from:___to:___by:___ statement
                           Created with funds from WIRED NW
     Targets to Improve Checklist
1.    Does it track progress toward full implementation of the
      Improvement Priority?
2.    Can it be broken down into at least monthly progress
      increments?
3.    Does it exceed budget targets?
4.    Does it track progress toward achieving the Annual
      Objective?
5.    Does it reflect if the Improvement Priority has an impact
      on the Annual Objective?
6.    Does it measure results, rather than action plan
      milestones?
7.    Is it easy to calculate and communicate?
8.    Does it demonstrate a simple flow of logic?
                        Created with funds from WIRED NW
Critical Thinking Process & the Top
Level PD Matrix
                  HOW


                      Top Level
               All items
                    Improvement
                      Priorities
               are listed                          HOW
     HOW      Annual                                                           WHO
           in priority order
           Breakthrough
                                 Targets
                               to Improve          MUCH
     FAR    Objectives

            starting from
                      3-5 Year
                    Breakthrough
              the center
                     Objectives


                                                                                 RESOURCES



                 WHAT                                                          = Primary Responsibility

                                                                               = Secondary Responsibility

                                                                                OWNER


                                            Created with funds from WIRED NW
    Complete Top Level PD Matrix
               The whole picture of your company on one sheet of paper!
                                 3- HOW                                   Use dots to show
                                                                       relationship of Targets
                                                                        and Resources to the
   Use dots to show
     relationship of
                                                                        Improvement Priority
                                                                                                                  5- WHO
Improvement Priorities to
   Annual Objectives




                                   Top Level
                                 Improvement
                                   Priorities                                NOTE: Only Solid dots on
                                                                             a resource deploy to the
                               Annual                                               next level
                            Breakthrough          Targets
    2- HOW                   Objectives         to Improve



      FAR                             3-5 Year
                                    Breakthrough
                                     Objectives


                                                                      4- HOW                              RESOURCES



                                                                       MUCH                             = Primary Responsibility

                            1- WHAT                                                                     = Secondary Responsibility

                                                                                                         OWNER


                                                        Created with funds from WIRED NW
 Linkage on the Matrix

                          Top Level
                         Improvement
                           Priorities
                   Annual
   Dots show                                   Targets
                    Break-
 linkage from                                    To
                   through
Target back to                                Improve
                  Objective
 Breakthrough
 for that level             3-5 Year
                         Breakthroughs




                        Created with funds from WIRED NW
Policy Deployment




                    Created with funds from WIRED NW
 Points to Remember about the
 Matrix
 As soon as a solid dot is placed above a resource, that resource will
  get a lower level matrix or an action plan.
 Clear circles indicate support resources. They do NOT get a lower
  level matrix or action plan unless they get a solid dot on another
                              TOP LEVEL - Company
  matrix.                    Danaher Business System Office - Policy Deployment 1998




 The dots are
  to be used as
                                                    Top Level
                                                  Improvement
                                                    Priorities


                                              Annual                  Targets
                                            Breakthrough                to
                                             Objectives               Improve




  a sanity check
                                                          3-4 year
                                                       Breakthrough
                                                         Objectives




                                                                                             Resources
                                                                                        Primary Responsibility
                                                                                       m Secondary Responsibility




                                                  SECOND LEVEL - Plant
 The Improvement                                                                                                   Second Level Policy Deployment




  Priority is deployed
  to the lower level                                                                                                                  Second Level
                                                                                                                                      Improvement
                                                                                                                                        Priorities


                                                                                                                                  Top Level
                                                                                                                                                      Targets to
                                                                                                                                Improvement




  matrix or an action
                                                                                                                                                      Improve
                                                                                                                                  Priorities


                                                                                                                                          Annual
                                                                                                                                       Breakthrough
                                                                                                                                        Objectives



                                                                                                                                                                       RESOURCES




  plan
                                                                                                                                                                    Primary Responsibility
                                                                                                                                                                   m Secondary Responsibility




                             Created with funds from WIRED NW
       Improvement Priorities Cascade
TOP LEVEL –
           to the Point of Impact
Company/Group
Danaher Business System Office - Policy Deployment 1998




                          Top
                                                                                                                                                                                                  Point of Impact - Action Plan
                                                                                                                                                                                                  The level where root causes are
                          Level
                          Improvement
                          Priorities




           Annual
           Breakthrough
           Objectives
                                        Target to
                                         Improve
                                                                                       SECOND
                                                                                       LEVEL –                                                                                                    addressed! Action Plans can be
                        3-5 Year
                      Breakthrough
                       Objectives


                                                                Resources




                                                                                       Plant/Business
                                                           Primary Responsibility
                                                          m Secondary Responsibility




                                                                                       Second Level Policy Deployment
                                                                                                                                                                                                  initiated out of any matrix level.

                                                                                                                Second
                                                                                                                Level
                                                                                                                Improvement
                                                                                                                Priorities

                                                                                                  Top
                                                                                                  Level                  Target to
                                                                                                  Improvement             Improve
                                                                                                  Priorities



                                                                                                             Annual
                                                                                                       Breakthrough




                                                                                                                                                                      ROOT CAUSE
                                                                                                           Objectives




                                                                                                                                                                                                                                                  POINT OF IMPACT -
                                                                                                                                         RESOURCES
                                                                                                                                      Primary Responsibility
                                                                                                                                     m Secondary Responsibility




                                                                                                                                                                      LEVEL-                                                                      ACTION PLAN
                                                                                                                                                                      Sub Plant/Dept                                                              Engineer/Supv
                                                    Cascade as many times as                                                                                      Second Level Policy Deployment



                                                        necessary to the                                                                                                                                                                          Im provem ent Priority Title: *


                                                                                                                                                                                                                                                  Review Team : *
                                                                                                                                                                                                                                                                                                    Policy Deployment Action Plan
                                                                                                                                                                                                                                                                                                          Departm ent/Location: Managem ent Ow ner:
                                                                                                                                                                                                                                                                                                                   *            *
                                                                                                                                                                                                                                                                                                                                                                                                     Date:     *


                                                                                                                                                                                                                                                                                                                                                                                                     Next Review : *




                                                        Root Cause Level                                                                                                                                                                          Environm ental Situation Sum m ary: *


                                                                                                                                                                                                                                                                                                                                                        Tim eline
                                                                                                                                                                                                                                                                                                                                                                                                          Target Im provem ent
                                                                                                                                                                                                                                                  Core Objective:   *




                                                                                                                                                                                                                                                                                                              POINT
                                                                                                                                                                                           Third
                                                                                                                                                                                                                                                                                                                                             = Original Plan      x = Progress at Review
                                                                                                                                                                                           Level                                                                                                                               Planned                            2003                                    Status
                                                                                                                                                                                                                                                                                                                                                                                                                           Im pact
                                                                                                                                                                                           Improvement                                                      Action Step/ Kaizen Events    Ow ner (Lead is bold)   Milestone     Dates    Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec ( P a st D u e i n R e d )
                                                                                                                                                                                           Priorities


                                                                                                                                                                             Second
                                                                                                                                                                             Level
                                                                                                                                                                             Improvement
                                                                                                                                                                             Priorities
                                                                                                                                                                                                         Target to
                                                                                                                                                                                                          Improve                                                                                              OF
                                                                                                                                                                                           Top
                                                                                                                                                                                           Level
                                                                                                                                                                                           Improvement
                                                                                                                                                                                           Priorities
                                                                                                                                                                                                                                                                                                             IMPACT
                                                                                                                                                                                                                         RESOURCES
                                                                                                                                                                                                                      Primary Responsibility
                                                                                                                                                                                                                     m Secondary Responsibility




                                                                                                                                            Created with funds from WIRED NW
            Creating Action Plans
                                                                 Create an Action Plan
                                                                 For every Improvement
                                                                 Priority at the Point of
                                                                 Impact


                                                                   Step 4: Identify the
                                                                     impacts on the
                                                                improvement priority and
                                                                 top level breakthrough
                                                                        objective

    Step 1:                                                   Step 3: What is the current
  Determine          Step 2: Record                           status of the action. Color
actions & write      ownership and                            code background as red to
on worksheets     timing of the actions                          show items past due.

                           Created with funds from WIRED NW
                                                                                                         Planned date
                Milestones are                                                                        could become the
                discrete events                                                                         revised date if
               that indicate that                                                                     there is a change
                action step has                                                                         to the original
                   occurred                                                                                  plans

   If there are
                                                                                                               Status should be:
 multiple TTI’s
                                                                                                                 -Complete OR
 (metrics) for a
                                                                                                                  -On time OR
       single
                                                                                                                 -Past Due OR
  Improvement
                                                                                                                  -% complete
  Priority, they
 are listed here
      in Core
    Objective




These are specific tasks to be
   accomplished, they are
 generally in chronological
  order for simplicity. Use
                                    Shade the month the action step is to
     outlining to better
                                    be completed – shade several months
       communicate.
                                     if needed. Place “x” where activity
                                            actually takes place.
                                                                              The impacts should sum to
                                                                               the improvement priority
                                                                              goal with specific numbers
                                                                                    and/or actions



                                                      Created with funds from WIRED NW
  Notes about Action Plans
 How long should Action Plans be?
   Long enough to track progress weekly.
   Include key actions and kaizen events.
   No prize for length. Keep brief and to the point.




                           Created with funds from WIRED NW
     Action Plan Checklist
1.   Does it “tie” to PD (is the Improvement Priority it “ties” to clear)?
2.   Are all the top-part sections of the Action Plan complete?
3.   Are the Actions clearly documented?
4.   Are there appropriate number of Actions? Litmus test is should be
     able to track improvement actions on a monthly/weekly basis.
5.   Is the Ownership of each Action identified?
6.   Is the timing of each Action identified?
7.   Is the impact of each or grouping of Action(s) quantified and is there
     enough to get you to reach your Objective?
8.   Is the correct timing legend used (plan vs. progress at review)?


                             Created with funds from WIRED NW
                  Bowling Charts
  Targets To
    Improve          JOP – Jumping Off Point from
are entered in       which you started tracking the target
 priority order
                     YTD ACT – Each month this field gets
                     updated (is YTD from the monthly
                     fields located to the right)




                         Planned targets are established for each month based
                                    on the overall Target to Improve.
                        An actual that is a miss from the plan, is color coded red


                                    Created with funds from WIRED NW
Bowling Charts Are Created For
    Policy
AllLEVEL Deployment Matrices
TOP
Danaher Business System Office - Policy Deployment 1998
                                                                                                                   BOWLING CHART


                            Top Level
                          Improvement
                            Priorities




             Annual                      Target s to
           Breakthrough                   Improve
            Objectives


                              3-5 year
                            Breakthrough
                              Objective



                                                                                    Resources
                                                                              Primary Responsibility
                                                                             m Secondary Responsibility




                                                       SECOND LEVEL
                                                                                                                                                                                              Created with funds from WIRED NW

                                                       Second Level Policy Deployment


                                                                                                                                                                                  BOWLING CHART

                                                                                                                           2nd Level
                                                                                                                         Improvement
                                                                                                                           Priorities




                                                                                                                                        Targets to
                                                                                                            Top Level                    Improve
                                                                                                          Improvement
                                                                                                            Priorities


                                                                                                                  Annual Breakthrough
                                                                                                                      Objectives


                                                                                                                                                          RESOURCES
                                                                                                                                                      Primary Responsibility
                                                                                                                                                     m Secondary Responsibility
              Each Target Is Copied To The
                Top Level Bowling Chart

                                  Reduce New Prod. Dev. Cycle


                                            TOP LEVEL
   Increase Market Share to 60%




                                          IMPROVEMENT
                                                                   Dev. Cycle to 120 Days by 12/95




                                            PRIORITIES




                                                                                                                                                                                                                                                            Human Resources Dept.
                                                                                                                                                                   Engineering Department
                                                                                                                    Production Department




                                                                                                                                                                                            Marketing Department
                                                                                                                                            Materials Department




                                                                                                                                                                                                                                       Finance Department
                                  ANNUAL                 TARGET




                                                                                                                                                                                                                   Sales Department
                                  BT                       TO
                                  OBJECTIVES
                                                         IMPROVE


                                           3-5 YEAR
                                        BREAKTHROUGH
                                          OBJECTIVE




                                                                                                                                                                                            RESOURCES



                                                                                                                                                                     = Primary Responsibility

                                                                                                                                                                     = Secondary Responsibility



TOP LEVEL MATRIX                                                                                     TOP LEVEL BOWLING CHART                                                                                                          Created with funds from WIRED NW
Personal Tracking Report




             Created with funds from WIRED NW
What are Countermeasures?
 Countermeasures are actions plans designed
  from problem solving techniques designed to
  bring you back to your PD target
  • Written for any monthly miss on Policy Deployment
  • Can also be required for KPIs based on the manager’s
    discretion




                       Created with funds from WIRED NW
 Countermeasure Components
 Format: can use A3 or matrix format
 Include trend charts, pareto diagrams, or any visual
  tools to help speak with data and tell the story
 Must be at Point of Impact
 Assure the countermeasures are tied to the greater
  vision
 Define the root causes and quantify amount of “miss”
 Focus on the critical few… may not get to 100% of the
  “miss” in 30 days-Sometimes you will have short-term
  and long-term countermeasures
 Clearly define ownership and timing
                        Created with funds from WIRED NW
Countermeasure Key Points
                      Know the “tie”                                                             May need
                         to PD!                                                                More Paretos to
                                                                                               “Peel-back-the
                                                        Define the Root                           Onion”
                                                         Causes and
                                                       Quantify amount
                                                          Of “Miss”
     Run chart of
    Plan vs. Actual                Must be at
    Same data from                 “Point of
      PD Bowler                     Impact!”



                                                                       Clearly define
                                                                        Ownership
                                                                        And timing!

                                                                                                 Quantify the
 Focus on the
                                                Sometimes you                                      Impact!
  critical few…
                                                  Will have                                      Do you have
 May not get to
                                                Short-term and                                    Enough?
   100% of the
                                                Long-term CMs
“Miss” in 30 days


                                                            Created with funds from WIRED NW
 Countermeasures
• Having a PD miss and having to write
  countermeasures does not mean that someone
  has failed
  • PD Targets, by their nature, should be
    aggressive stretch targets
  • Outstanding organizations will normally be
    required to write numerous
    countermeasures each month


                   Created with funds from WIRED NW
  Countermeasures
• Good countermeasure preparation will drive an
  organization to productive self-criticism, more
  robust systems, closer customer contact, a higher
  level understanding of the marketplace, etc.

• Effective Countermeasure development is a team
  effort. Writing them in a vacuum normally does not
  yield the best results or plans


                                     Created with funds from WIRED NW
     Countermeasure Checklist
1.   Does it “tie” to policy deployment (is the “tie” clear)?
2.   Does it have a run chart showing plan versus actual data?
3.   Does the Pareto show the why versus the where (i.e., get to root
     cause)?
4.   Is the Root Cause Statement made with quantified amount of
     miss?
5.   Are the Countermeasures focused on the critical few?
6.   Are there short-term as well as long-term countermeasures (if
     appropriate)?
7.   Is the Ownership of each Countermeasure identified?
8.   Is the timing of each Countermeasure identified?
9.   Is the impact of each Countermeasure quantified and is there
     enough to get you back to Plan?

                              Created with funds from WIRED NW
 Do a Monthly Review of Your
 Action Plan
 Policy Deployment meetings are held monthly (a
  meeting for each PD matrix)
 Countermeasures are fact based
 Countermeasures are specific, with due dates and
  responsibilities listed
 Problem solving tools are used to determine
  countermeasures
 PD targets are measured frequently enough to provide
  adequate data

                         Created with funds from WIRED NW
    Top Management’s Role in
    Policy Deployment
 Conduct lively policy deployment sessions that test people’s
    understanding. Information must be fact-based.
   Evaluate effectiveness of specific projects & action plans
   Evaluate effectiveness of the overall improvement process
   Decide when to take action & what type of action to take
   Communicate Stretch vs. Budget and hold associates
    accountable


                             Created with funds from WIRED NW
          Summary
1. ASSESSMENT - Take careful stock of where you are today
2. VISION - Decide where you want to be in the future
3. STRATEGIC PLAN - Work out a Policy Deployment Map to
   bridge the gap from now to your vision
4. AOP - Ensure that current year actions are included in your
   Annual Operating Plan
5. MEASURE PROGRESS - Establish formal tracking for
   management team for their short term action items
6. ACCOUNTABILITY - Keep the plan alive by getting monthly
   strategic updates regarding progress
7. CELEBRATE your victories!
                                 Created with funds from WIRED NW
  Independent Assignment #2
 Meet with your mentor and review the materials
  discussed in today’s session.
 Mutually agree on opportunities to apply what was
  learned today, using as many tools as possible.
 Bring a completed X matrix to the next session.




                        Created with funds from WIRED NW

				
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