Hoshin Kanri: A Systematic Strategic Planning/Strategic Management Methodology

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2 Hoshin Kanri: A Systematic Strategic Planning/Strategic Management Methodology Turning Vision and Strategy into Results through Action 2 Introduction to Hoshin Kanri Karen Schmidt Henderson

3 Hoshin Kanri: Direction + Execution 3

4 What is Hoshin Kanri? The hoshin kanri methodology, which flows from Lean, employs a structured planning and deployment cycle during which goals are determined, plans to achieve the goals are established, and measures are created to ensure progress toward these goals. 4

5 Basic Principles of Hoshin Kanri Is the embodiment of the Plan-Do- Check-Adjust (PDCA) cycle 5

6 Basic Principles of Hoshin Kanri Allows the system to prioritize and sequence Provides focus for the alignment of effort and resources 6

7 Traditional Implementation Trying to accomplish everything all at once Fighting for resources No prioritization amongst initiatives Difficult to adapt to changes in environment Few initiatives completed 7

8 Hoshin Kanri Implementation Initiatives are prioritized Only a few deployed at a time (de-selection) Easy to adapt to changes in environment Most initiatives completed on time 8

9 Basic Principles of Hoshin Kanri Utilizes collective knowledge: the insight and creative talents at all levels must be effectively brought to bear on system challenges and opportunities Requires frequent measuring and rigorous review of results by leadership, with timely course correction as required 9

10 Basic Principles of Hoshin Kanri Requires shared responsibility and accountability for achieving timely results There is no shame and blame there is learn and improve. 10

11 11 We are going to be bad travelers

12 Hoshin Kanri is about the journey and the destination Based on the Road Metaphor for Planning (Cowley & Associates, 1995) 12

13 Insights from the Health System When you go back to Education, tell them the first time through is REALLY hard!! But by Cycle 2, you will know that it was worth it! Health Region Employee You will get better each cycle: taking an evolutionary approach to hoshin implementation We are learning to do this. is imperative. 13

14 14 Hoshin Kanri Follows a Cycle

15 Hoshin Kanri Terminology Strategic intent Enduring strategies Outcomes Improvement targets Hoshins Actions 15

16 Hoshin Kanri Tools X-Matrix Drafted during Strategic Development Example: Sam, the Par Golfer 16

17 Parts of a Level 1 Matrix Strategic Intent 17

18 Parts of a Level 1 Matrix Enduring Strategies 18

19 Parts of a Level 1 Matrix Long-term Outcomes 19

20 Parts of a Level 1 Matrix Improvement Targets 20

21 Parts of a Level 1 Matrix Hoshins 21

22 Hoshin Kanri Tools A3 s (Project Plans): A one-page storyboard Drafted during Strategic Development 22

23 Example: Sam, the Par Golfer A3 (Project Plan) 23

24 Catchball Is a series of formal discussions between leaders and their teams during which they throw and catch information, data, and analysis back and forth between each other with regard to the draft strategic plan and outcome and hoshin A3s. 24

25 Catchball Is about dialogue, engagement, and garnering the insights of employees who are directly responsible for implementing strategic and operational work. This is in alignment with Lean thinking that those who do the work are the experts who know the work best. 25

26 Catchball Within the context of a system plan, Catchball also involves each organization within the system creating its own Level 2 plan (matrix) and accompanying organization A3s. These describe the work that that organization will undertake to do its part in achieving the hoshins and outcomes of the system plan. 26

27 Catchball Confirms the practicality of proposed plans Actively solicits feedback and ideas from people responsible for implementing the plans Greatly improves wide-spread understanding of what needs to be done, why, and how Greatly improves ownership and buy-in from the people responsible for results. 27

28 Regular Progress Review Gantt chart 28 28

29 Regular Progress Review Bar chart 29 29

30 Hoshin Kanri Tools Corrective Action Plans Created to move an off-target ( yellow or red ) project back on-target ( green ) 30

31 Hoshin Kanri Tools Visibility Walls 31

32 Hoshin Kanri Tools Visibility Walls 32

33 Hoshin Kanri Processes 33 Wall Walks 33

34 34 Wall Walks

35 Questions? Hoshin Kanri: Direction + Execution 35

36 For more information contact: Karen Schmidt Henderson Strategic Policy Branch Ministry of Education

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38 Plan Adjust Grasp the situation Do Check Hoshin Kanri Cycle Hoshin Kanri in a Learning Organization Direction and Execution Process Details Who is Involved Tentative Cycle Schedule DRAFT 1. Strategic Intent What are we ultimately trying to accomplish? Determine the destination SD DoEs MoED DM & ADMs October Scan environment for potential influences/impacts/barriers 2. Diagnosis and Review Determine the system s present state in light of last year s performance against targets SD Executive MoED EDs & Directors October PLAN What do we need to do? How should we do it? 3. Reflection and 4. Strategy Development 5. Catchball 6. Plan Finalization Draft Strategic Plan (on X-matrix) Confirm the desired future state: describe as 5-year outcomes (What change? By how much? By when?) Define improvement targets for each outcome (What change? By how much? By when?) Prioritize and select the few vital priorities for breakthroughs for the year (hoshins) Create high-level draft project plans ( A3s ) Formally discuss the draft strategic and project plans throughout the system, channelling feedback up to the leadership Confirm the outcomes, targets, hoshins and project plans, including metrics Hoshin Kanri is an annual learning cycle of plan, do, check, adjust (PDCA) for improvement SD DoEs MoED DM & ADMs (with report out to Board Chairs on Day 4) SD Executive & Staff MoED EDs & Directors & Staff SD DoEs MoED DM & ADMs October 4 day event Oct/Nov Late Nov. 2 day event Draft plan submitted to Ministry of Finance DO CHECK ADJUST Do it! How are we doing? How can we improve? 7. Strategy Deployment 8. Regular Progress Review Cascade plan down through the system through the creation of aligned organization and individual work plans Wall Walks: Weekly and monthly reviews of data posted on visibility walls with course correction as required Corrective Action Plans (CAP) implemented as required All SD DoEs & Staff MoED DM & ADMs & Staff January on; plans in place for April 1 TBD Plan made public on Budget Day C:\Users\aashton\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\20D757RD\ Hoshin Kanri Cycle for Education System - Final - kmsh.docx :10 AM

39 Hoshin Kanri Definitions and Examples for Sam, the Par Golfer Strategic Intent Enduring Strategies Definition What Sam wants to accomplish or what Sam cares most about. What is Sam s aspiration? Broad areas of strategic focus Defines What s in and What s out The Big How Typically 3-5 years, but may be longer Outcome Longer-term result (typically 3-5 years) The change Sam wants to see in the future The what that is accomplished through the improvement targets and hoshins States what the desired improvement/change is, by when it will be achieved, and a measurement of how much will be improved (what, by when, by how much). Improvement Target How Sam intend to achieve the outcome the process or shorter-term outcome improvements are needed for Sam to achieve the long-term outcome Maybe a subset of the larger outcome Could be shorter-term or longer-term (1 5 years) Measures an approach that will be used to achieve the outcome The measure should indicate whether the there is movement on the outcome dial in the right direction Hoshin Short-term (1 year) area of strategic focus for Sam This will be the highest priority must do, can t fail work for Sam Sam s resources are aligned to and prioritized for hoshin work The key mantra for this work is focus and finish Action Short-term work that helps to move the dial on improvement targets and outcomes Typically found in Sam s implementation plan Work that will be achieved within one year Examples To become a par golfer Physical Preparedness Mental Preparedness Prioritization/Time Management Training and Practice Quality Equipment By April 30, 2014, I will spend 3 hours per week learning from my golf coach. By September 30, 2016, I will shoot par on 18 holes for at least half of the games I play. By February 15, 2014, I will be able to run 5 km without stopping and will do so a minimum of 3 times per week on an ongoing basis. By January 15, 2014, I will be able to complete an intermediate level, hour-long Ashtanga yoga class and will do so a minimum of 3 times per week on an ongoing basis. By October 31, 2013, I will meditate 10 minutes per day every day. By November 20, 2013, I will free up enough time, on a daily and weekly basis, to accommodate the time I need for physical and mental preparedness and training and I will be using the time. By March 31, 2014, I will have saved enough money to pay for one year's training with a golf coach. By March 31, 2014, I will have saved enough money to pay for the equipment I will need to purchase. Find a suitable Ashtanga yoga class that will fit my schedule, enrol, and attend. C:\Users\aashton\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\20D757RD\ Hoshin Kanri Definitions and Examples for the Par Golfer - Final - kmsh.docx :12 AM

40 Understanding a Level 1 Matrix: Strategic Plan for Sam, the Par Golfer Reading and making sense of a hoshin kanri x-matrix can be difficult for the uninitiated. It contains a large amount of information that is structured and formatted in a novel and, at first glance, seemingly confusing way. This one page visual helps make sense of the x-matrix and provides explanations of each of the different aspects of a level one x-matrix. Level one denotes the highest level in the organization that is using hoshin kanri. As a starting point, an x- matrix outlines an organization s strategic direction over a 3-5 year period in a visually succinct way. It contains enduring strategies, long-term outcomes, improvement targets, and hoshins. This information is presented in a template that allows for the development of correlations between different elements. The x-matrix is not intended to be a communication tool but a management tool. When reading this guide, please read counter-clockwise and sequentially from box number 1 to box number 5. NOTE: This example matrix features a strategic plan for an individual as opposed to a system or organization. 5. One of the intentions and benefits of the x-matrix is to show the correlations between the four different sides of the x. This is always done in a downward manner. In other words, starting at the top of the matrix, how well do the hoshins correlate with the enduring strategies and the improvement targets and how well do the enduring strategies and improvement targets correlate with the outcomes? An example is provided in the matrix. The hoshin "By November 20, 2013, I will free up enough time, on a daily and weekly basis, to accommodate the time I need for physical and mental preparedness, and training and I will be using the time." is strongly correlated with all of the enduring strategies except "Proper Equipment" as well as all of the improvement targets except "By December 31, 2013, I will have purchased a quality driver, wedge, and putter." Continuing downward both the "Time Prioritization/Time Management" enduring strategy and the improvement target "By December 31, 2013, I will play a minimum of 18 holes of golf a week." are strongly correlated with the outcome of "By April 30, 2014, I will dedicate 9 hours per week to playing golf." 1. To the left of the x is the enduring strategies column. This area contains the strategic focuses for planning including Physical Preparedness, Mental Preparedness, Time Prioritization/Time Management, Training and Practice, and Proper Equipment. This section is the foundational piece of the x-matrix out of which the outcomes, the improvement targets, and the hoshins flow. Enduring over time Short Term (Immediate) Proper Equipment Training and Practice By March 31, 2014, I will have saved enough money to pay for the equipment I will need to purchase By March 31, 2014, I will have saved enough money to By November pay for one 20, year's 2013, I training will free with up enough a golf coach. time, on a daily and weekly basis, to accommodate the time I need Outcomes By March 31, 2014, I will be in good enough shape to play 18 holes of golf every day with ease. By February 28, 2014, I will meditate 20 minutes per day every day. By April 30, 2014, I will dedicate 9 hours per week to playing golf. By April 30, 2014, I will spend 3 hours per week learning from my golf coach. By September 30, 2016, I will shoot par on 18 holes for at least half of the games I play. By March 31, 2015, I will have acquired a full set of top quality golf clubs and a golf club membership Long Term (1-3 Years) Correlations Key Last updated: Strong Correlation 2 Moderate Correlation 1 Weak Correlation 0 No correlation Time Prioritization/Time Management Correlations Mental Preparedness 4. Above the x are the hoshins or improvement breakthroughs which flow out of the enduring strategic areas for planning (Physical Preparedness, Mental Preparedness, Time Prioritization/Time Management, Training and Practice, and Proper Equipment ). These are the short term projects for the current period (12 or fewer months) and are the most important areas for focus and finish. Hoshins are the "must do, can't fail" work. The example given is to "By November 20, 2013, I will free up enough time, on a daily and weekly basis, to accommodate the time I need for physical and mental preparedness, and training and I will be using the time." Physical Preparedness Correlations Enduring Strategies Correlations Strategic Intent: "To become a par golfer" Correlations Correlations Improvement Targets (Medium Term) By February 15, 2014, I will be able to run 5 km without stopping and will do so a minimum of 3 times per week on an ongoing basis. 2. The outcomes are the "destination" or "big dot" targets to achieve over the next 5 or more years. They are outcome measures and they reflect the results desired. When developing an x-matrix, the outcomes help decision makers decide what the improvement targets and hoshins should be. By January 15, 2014, I will be able to complete an intermediate level, hour-long Ashtanga yoga class and will do so a minimum of 3 times per week on an ongoing basis. By October 31, 2013, I will meditate 10 minutes per day every day. Correlations By December 31, 2013, I will play a minimum of 18 holes of golf a week. By December 31, 2013, I will have purchased a quality driver, wedge, and putter. 3. The improvement targets are the link between outcomes and the hoshins. To achieve the outcomes listed below the x, what improvements need to be achieved? The targets in the outcomes section typically are long-term outcome measures. In comparison, the targets in this section tend to be short-term process measures that would rely on data that is more frequently and readily available. The main questions when developing improvement targets are: What are the improvement targets that will support the achievement of the outcomes? What are the specific things that need to be done to get to the outcomes? What are the performance measures that need to improve? An example improvement target from the matrix is "By February 15, 2014, I will be able to run 5 km without stopping and will do so a minimum of 3 times per week on an ongoing basis." This is an example of something that could be done to help achieve the outcome, "By March 31, 2014, I will be in good enough shape to play 18 holes of golf every day with ease." 15/10/ :24 AM C:\Website Updates\Seminars\Members Council Fall 2013\UnderstaningLevel1Matrix_ExSamParGolfer_kmsh

41 Understanding a Level 1 Matrix: Strategic Plan for Sam, the Par Golfer matrix can be difficult for the uninitiated. It contains a large amount of information that is structured and formatted in a matrix and provides explanations of each of the different aspects of a level one x-matrix. Level one denotes the highest 5 year period in a visually succinct way. It contains enduring strategies, long-term outcomes that allows for the development of correlations between different elements. The x-matrix is not intended to be a communication tool but a management tool. When reading this guide, please read counter from box number 1 to box number 5. NOTE: This example matrix features a strategic plan for an individual as opposed to a system or organization. 4. Above the x are the hoshins or improvement breakthroughs which flow out of the enduring strategic areas for planning (Physical Preparedness, Mental Preparedness, Time Prioritization/Time Management, Training and Practice, and Proper Equipment ). These are the short term projects for the current period (12 or fewer months) and are the most important areas for focus and finish. Hoshins are the "must do, can't fail" work. example given is to "By November 20, 2013, I will free up enough time, on a daily and weekly basis, to accommodate the time I need for physical and mental preparedness, and training and I will be using the time." Short Term (Immediate) By March 31, 2014, I will have saved enough money to pay for the equipment I will need to purchase. By March 31, 2014, I will have saved enough money to pay for one year's training with a golf coach. By November 20, 2013, I will free up enough time, on a daily and weekly basis, to accommodate the time I need What are the improvement Strategic targets Intent: that will support the achievement of the outcomes? What are the specific things that need to be done "To become a par golfer" Outcomes By March 31, 2014, I will be in good enough shape to play 18 holes of golf every day with ease. By February 28, 2014, I will meditate 20 minutes per day every day. By April 30, 2014, I will dedicate 9 hours per week to playing golf. By April 30, 2014, I will spend 3 hours per week learning from my golf coach. By September 30, 2016, I will shoot par on 18 holes for at least half of the games I play. By March 31, 2015, I will have acquired a full set of top quality golf clubs and a golf club membership. Correlations Improvement Targets (Medium Term) Correlations 3. The improvement targets are the link between outcomes and the term outcome measures. In comparison, term process measures that would rely on data that is more frequently and readily available. An example improvement target from the matrix is "By February 15, 2014, I will be able to run 5 km without stopping and will do so a minimum of 3 times per week on an ongoing basis." This is an example of something that could be done to help achieve the outcome, "By March 31, 2014, I will be in good enough shape to Long Term (1-3 Years) 2. The outcomes are the "destination" or "big dot" targets to achieve over the next 5 or years. They are outcome measures and they reflect the results desired. When developing an x-matrix, the outcomes help decision makers decide what the improvement targets and hoshins should be. 15/10/ :24 AM C:\Website Updates\Seminars\Members Council Fall 2013\UnderstaningLevel1Matrix_ExSamParGolfer_kmsh

42 DRAFT Which outcome does this project plan support? By March 31, 2014, I will be in good enough shape to play 18 holes of golf every day with ease. Date of Original Draft: September 12, 2013 Date Last Updated: 1. Problem Statement (Current state and the reason for action.) [Explain what and how big the problem is and why strategic action is required to address it.] I am not in good enough physical shape to easily play several golf games in a week. 2. Root Cause Analysis (What is causing the problem and what evidence can be provided to support the analysis?) [Highlight baseline data and analysis that helps clarify the magnitude of the problem statement and narrow the focus for the future state statement. What are the barriers impeding change or success?] I have a desk job and sit nearly 8 hours a day. I do not make physical activity a priority in my life. I have poor flexibility (cannot touch my toes). I cannot run for more than 2 consecutive minutes. I have trouble walking briskly more than 10 consecutive minutes without having to slow down or stop Outcome Plan: Good Physical Shape Primary Owner: Sam, the Par Golfer Lead Unit/Branch: Team Lead(s) and/or Contact Person: Secondary Owner: Expert Advisor: Buddy Bob (a professional trainer) Other Team Members: Running buddies, weight lifting buddies 4. Implementation Plan (What are the high-level actions that will be taken to address the problem within the given timeframe? How will the future state be achieved?) [More detail can be included in a separate implementation plan.] Actions Deliverables Lead Start Date Completion Date Train to improve cardiovascular endurance through running. Find an appropriate Ashtanga yoga class, enrol and attend faithfully. Strength train 3x per week Increased running distance and speed so as to be able to run 5 km non-stop at least 3 times per week. Increased strength and flexibility Be able to complete weight workout with at least 3x the weight as I could lift as of September 15, Sam Sam Sam September 14, 2013 September 16, 2013 September 15, 2013 February 14, 2013 then maintenance January 15, 2014 then maintenance ongoing Resources Required (Human and Financial) Running buddies Time Good running shoes Appropriate running attire Garmin sports watch $$ to pay for class Appropriate yoga attire Yoga mat None have free weights and workout DVDs Risk/Mitigation Injury/Learn how to warm up properly and find a training plan to ensure gradual improvement Injury/Enrol in introductory level class first then move to intermediate class Injury/Start with very light weights and gradually increase load 3. Future State (How will the situation will be different because of the actions taken to improve it?) [List the overarching and annual targets for the outcome.] By March 2014, I will be flexible enough, have enough cardiovascular endurance and enough strength to complete an 18-hole golf game without physical difficulty and without being stiff and sore the following day. 5. Metrics (How will you know a change has been an improvement?) [Identify outcome and process metrics that will indicate the project success and include balancing measures to ensure the project doesn t negatively affect other metrics. These should relate to the actions noted above in the implementation plan. Identify measures that are anticipated to change monthly.] By January 15, 2014, I will be able to complete an intermediate level, hour-long Ashtanga yoga class and will do so a minimum of 3 times per week on an ongoing basis. By February 15, 2014, I will be able to run 5 km without stopping and will do so a minimum of 3 times per week on an ongoing basis. 6. Engagement (How is this plan informed by the principles of Citizen-centred Service? How will children, parents, and stakeholders, etc., be engaged in this work?) [Name any target groups required for success.] Friends who run will support my running training. Friends who lift weights will work out with me. I will find a proficient and effective yoga instructor and enlist his/her support. Last updated: :05 AM C:\Website Updates\Seminars\Members Council Fall 2013\OutcomeA3forSamtheParGolfer_kmsh.docx