Policy Deployment. Peter Sylvest Sylvest Consulting

Transcription

1 Policy Deployment Peter Sylvest Sylvest Consulting

2 WHAT IS POLICY DEPLOYMENT?

3 Policy Deployment The idea is to translate selected strategic objectives and goals of the organisation into specific projects and deploy them down to the implementation level Policy Deployment known as Hoshin Kanri originates from Japan It was developed and refined by Japanese companies during the 1960s It derives from ideas of Deming (PDCA), Juran (quality policy), and Drucker (MBO) It was introduced in the U.S. as Policy Deployment in the 1980s Sometimes referred to as: Hoshin Kanri Management By Policy Management By Planning Danish based companies that have embraced it: Radiometer (Danaher), Vestas (Nacelle), Novo Nordisk (partly), Danfoss (partly) mfl. U.S. based companies that have embraced it: Danaher, Hewlett-Packard, Proctor & Gamble, Xerox, Florida Power and Light (FP&L)

4 WHY USE POLICY DEPLOYMENT?

5 Why do we need Policy Deployment in general? Strategy deployment can help avoid the negative effects of poorly managed change initiatives. When practically applied, PD makes business improvement efforts more ambitious, easier to manage, less stressful, and more successful. Why Projects Fails Too many example of strategic initiatives set off full of vision, energy, and high hopes but make little progress because they work in a thousand directions, i.e. going mile wide inch deep and without review of actions or accountability and without sufficient resources allocated What you need to do is Prioritise and focus on a few selected projects form a vision focus on the vital few not the evil many select the 3-5 most important steps to get you to your vision postpone the other steps designate people and resources for the projects establish numerical improvement targets to be achieved

6 Improvement Policy Deployment is an active relationship between 2 parts Policy Deployment Management is special actions/plans required to achieve a desired result and Daily Management (Routine KPI Management) is targets that can be achieved with usual improvement activity and resources (Goal Directed Management) PD Planning PD Planning KAIZEN Strategic Objective is Achieved! PD Planning KAIZEN PD Planning KAIZEN KAIZEN Base Base Base Base Base Year 0 Year 1 Year 2 Year 3 Year

7 What Does Policy Deployment Mean To You? Top Mgt Middle Mgt Breakthrough Kaizen Supervisor Front Line Associate Daily Management Adapted From Beyond Strategic Vision, Effective Corporate Action With Policy Deployment; Cowley, Domb, 1997 pg

8 HOW TO USE POLICY DEPLOYMENT?

9 7 Phases in the Policy Deployment Process The Policy Deployment process starts with the formulation of the Vision and the 3 year strategic objectives PLANNING Establish Organizational Vision Strategic Planning/ Develop 3-5 Year Breakthrough Objectives Self-Diagnosis Develop Annual Breakthrough Objectives and Improvement Priorities Deploy Improvement Priorities Catchball IMPLEMENTATION Implement Improvement Initiatives REVIEW Root Cause Countermeasures Monthly Review Critical Step Annual Review

10 l l l = Original Plan x = Progress at Review ( P a st D ue i n R e d ) Cascading Priorities to ACTION TOP LEVEL Company/Group Danaher Business System Office - Policy Deployment 1998 Top Level Improvement Priorities Target to Annual Improve Breakthrough Objectives 3-5 Year Breakthrough Objectives Resources Primary Responsibility m Secondary Responsibility SECOND LEVEL Plant/Business Second Level Policy Deployment Point of Impact - Action Plan The level where root causes are addressed! Action Plans can be initiated out of any matrix level. Second Level Improvement Priorities Top Level Improvement Priorities Target to Improve Annual Breakthrough Objectives RESOURCES Cascade as many times as necessary to the Root Cause Level Primary Responsibility m Secondary Responsibility ROOT CAUSE LEVEL- Sub Plant/Dept Second Level Policy Deployment Second Level Improvement Priorities Third Level Improvement Priorities Target to Improve POINT OF IMPACT - ACTION PLAN Manager Improvement Priority Title: * Core Objective: * Policy Deployment Action Plan Department/Location: * Management Ow ner: * Timeline Planned 2003 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 Date: * Review Team: * Next Review : * Environmental Situation Summary: * POINT OF IMPACT Target Improvement Status Impact Top Level Improvement Priorities RESOURCES Primary Responsibility m Secondary Responsibility

11 Timing of Policy Deployment The PD process is an integrated part of the strategic planning and budgeting process and the planning process is normally completed before the new year July August September October November December January STRATEGIC PLANNING Breakthrough Objectives PD LEVEL 1 COMPLETE Improvement priorities ACTION PLAN DEV COMPLETE Annual BT Objectives CONCURRENT BUDGETING PROCESS PD LEV 2 & 3 COMPLETE NEW YEAR PD BEGINS

12 Monthly PD is typically an 8 hour meeting Monthly PD Review Agenda Format Establish the Agenda for Today s PD Review Financial Review Policy Deployment KPI s Road Blocks, Major Predetermined Topics Established PD initiatives Remaining PD Elements (Q, D,C) People/Org. Issues Other Business 5% 15% 60% 20%

13 HOW TO GET STARTED AND TIPS

14 How to start? A good way to start is by identifying your current strategic projects and hook them up to the existing vision and strategic objectives (reverse engineering) PLANNING Establish Organizational Vision Strategic Planning/ Develop 3-5 Year Breakthrough Objectives We are here Self-Diagnosis Develop Annual Breakthrough Objectives and Improvement Initiatives Deploy Improvement Initiatives Catchball IMPLEMENTATION Implement Improvement Initiatives REVIEW Root Cause Countermeasures Monthly Review Critical Step Annual Review

15 Tips and Tricks Remember: Policy Deployment Management is special actions/plans required to achieve a desired result To identify Breakthrough Objectives is a top management issue and CAN NOT BE DELEGATED! Use maximum two levels and then go to ACTION It takes often longer to define, plan and initiate the strategic projects than you think often 2-3 months Spend the time you need! Target setting for projects with a timeline longer than 6 months can be difficult Spilt between progress, result and effect targets and do always demand effect targets! If it is not possible then cut up the project in smaller chunks (3 months) You might find out that you are missing procedures, standards and tools for running internal projects in general not just PD projects Just another thing on the to-do list! PD will change the way you as a manager prioritize and runs your daily business! PD interferes with the way you do decision making run with it, do not fight it!