Strategy Deployment Process. Harman Kular

Transcription

1 Strategy Deployment Process Harman Kular

2 Agenda Define the following concepts: Business Strategy Value Proposition of Strategy Process of Strategy Development and Deployment Strategy Deployment Tools What are the consequences for human performance and enterprise performance? Michael Hammer, Faster, Cheaper, Better, 2010

3 What is the Essence of Strategy? Why do we need a strategy? - Limited resources - Competition What is the main purpose of a strategy? - Make the best choices - Create clarity of focus What questions must it answer? - Where we will compete? - What is our aim? - How we will win? How will we measure success? - Greater value for our customers - Superior profits for our company

4 Current State of SDP What is Strategy Deployment? Goal Deployment Breakthrough Daily Management Strategy Deployment Y = f(x) Rigorous Management Review X = Enabling processes

5 Difference between Strategy and Execution Strategy Strategy: Doing the Right Things Make intelligent choices Determine where to compete and how to win Create an intense focus on the vital few Execution Execution: Doing Things Right Puts strategy into action Provide discipline around process

6 Iterative Strategy Development and Deployment Process Top Level ning Team Debate and Buy In Lean and SixSigma tools Repeatable Process Daily Management Adapted from Next Level Partners, LLC

7 5-Year Critical Few Breakthrough 5 Year Critical Few, Breakthrough 2 AOP Daily Management Rigorous Management Review Process Increase value and importance of your business to customers Creates sustainable differentiation Significant stretch Measurable Increase Gross profit by 40% in (5 year)

8 Annual (NOT AOP) Breakthrough 1 st Year, Annual What portion can be accomplished in one year? Directly linked to 5-yr critical objective Aggressively realistic expectation Increases value and importance of your business Creates sustainable differentiation Really a stretch Measureable Increase Gross Profit by 20% in (1 st year)

9 Key Business Processes Breakthrough 1 st Year, Annual Key Processes What processes are we going to fix that will help sustain the change!! Where are we losing steam? Ask: are we getting consistent results YOY? If yes, great and move on to the next one. If NO, what is the root cause? Do we know? 5-year: Increase GP by 40% 2015: Increase GP by 15% Key Process: Improve the QC, Delivery, PPM etc..

10 Clear Ownership - Accountability Breakthrough 1 st Year, Annual Key Processes Owners One clear leader for each process Resources are the right mix of functions and skills Resources have adequate capacity Leader and resources can be held accountable to deliver the results Cross-Functional Teams Driving Business Performance

11 Target to Improve (TTI) Breakthrough 1 st Year, Annual Key Processes Owners TTIs Format: [ion Verb] [Measure] from to [future #] by [Date]. Improve OI from X% to Y% by Dec 31

12 Data Distillation Value Proposition Who should be involved in gathering the data? What data should be gathered? Why should this data be gathered, i.e., why is this data important to your business? Filter The Biggest Opportunities

13 SDP Expected Outcomes of SDP Work Session Identified 5-year critical few objectives (1-3) Created 1 st year annual objectives (2-3) Identified broken or missing processes (Key Improvement Priorities) (4) Assigned owners and other resources. Developed Targets to Improve (TTI)

14 Thinking Through the X Matrix 1 st Level Level One Strategy Identify level of ion Set Stretch Targets Identify key PROCESSES Key Improvement Priorities (Processes) Measure Results and Timing Define Ownership and Accountability 1st Year Annual 5 Year Critical Few Targets to Improve Reduce quality defects PPM by 50% Primary Responsibility Secondary Responsibility Identify the Critical Few Focus On The Critical, Vital Few

15 ion for 1 st and 2 nd level Improvement Priorities Project Name: Project Leader: Start Date: PROBLEM STATEMENT IMPLEMENTATION PLAN Concise statement of problem OBJECTIVE AND SCOPE and scope to solve the problem PROJECT METRICS Metric Baseline Goal Current State Task Who Wk 1 X Wk 2 Wk 3 X Wk 4 Wk 5 X Wk 6 Wk 7 X Wk 8 Wk 9 X X Wk 10 Wk 11 X Wk 12 Wk 13 Annual Save Leader: Advisor: Members: Cost TEAM CURRENT STATUS IMMEDIATE NEEDS, BARRIERS, ISSUES A3s Monitor - PROGRESS

16 Targets To Improve (TTI) Chart Example Business Name Strategy Deployment TTI Chart for (April, 2008) TTI Decrease number of suppliers from 950 to 580 by 12/31 Increase OTTR from 78% to 91% by 9/ YTD ACT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC % 81% 81% 82% 84% 84% 87% 90% 91% 91% 91% 91% 83% 78% 80% 82% 83% TTIs Monitor - RESULTS

17 Management Review System Create a Sense of Urgency Remove obstacles/barriers Ensure your team keeps the pace and not lose momentum Design a Management Review System to achieve these three objectives.