Strategic Planning. Jim Creiman. April 13, 2010
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1 Strategic Planning Breakthrough for Quality Jim Creiman April 13, 2010
2 2 ND CLASS TICKET FROM: HERE DESTINATION: NOWHERE
3 It is not the strongest that survive, nor the most intelligent, t but the one most responsive to change. - Charles Darwin
4 Problem: Top Executives don t speak the Quality language We want to explain Quality helps the Company Is Quality doing what it should to help the Company?
5 Problem: Top Executives don t speak the Quality language Want to explain Quality helps the Company Is Quality doing what it should to help the Company? Possible Solutions: Hire Translation Services Prepare a 15-second elevator speech Align Quality activities with Company Objectives
6 Aligning Quality Activities with Company Objectives Company Objectives Increase Sales Revenue Increase Operating Profit Quality Activities Control of Defectives Process Control Problem Solving Continuous
7 Aligning Quality Activities with Company Objectives Company Objectives Increase Sales Revenue Increase Operating Profit? Quality Activities Control of Defectives Process Control Problem Solving Continuous
8 Aligning Quality Activities with Company Objectives Company Objectives Increase Sales Revenue Increase Operating Profit? Quality Activities Control of Defectives Process Control Problem Solving Continuous Proposed Solution: X-Matrix
9 X-Matrix Variant of the Matrix Diagram Tool in Quality Toolbox Compares 2 pairs of lists s
10 X-Matrix Variant of the Matrix Diagram Tool in Quality Toolbox Compares 2 pairs of lists s Often Referred to Hoshin X-Matrix Commonly used in Hoshin Kanri, or Hoshin Planning Based on Plan-Do-Check-Act Cycle Displays relationships between cascading levels of Displays relationships between cascading levels of objectives
11 X-Matrix Tool
12 FMEA Example of X-Matrix Fluid Tank Filling System Source: Willy Vandenbrande, Preventive Process Control and the Learning Organization, 2002
13 X-Matrix for Strategic Planning Source: Jd Marhevko, ASQ Quality Management Forum, Fall 2007
14 X-Matrix Format for Planning Source: Jd Marhevko, ASQ World Conference on Quality and, May 5-7, 2008
15 Strategic Planning X-Matrix Example Source: Jd Marhevko, ASQ World Conference on Quality and, May 5-7, 2008
16 X-Matrix Summary Source: Jd Marhevko, ASQ World Conference on Quality and, May 5-7, 2008
17 X-Matrix Worksheet Our Organization's Plan Projects Initiatives Targets Strategic Objectives Resources
18 Strategic Planning Example ABC Company Plan Projects Initiatives Targets Strategic Objectives 1. Increase Sales Revenue 2. Increase Operating Profit Resources
19 Define Initiatives ABC Company Plan Projects 1.1 Increas se Customer Satisf faction Initiatives Strategic Objectives Targets 1. Increase Sales Revenue 2. Increase Operating Profit Resources
20 Define Initiatives ABC Company Plan Projects New Marketing Pla an se Customer Satisf faction 1.2 Initiate 1.1 Increas Initiatives Strategic Objectives Targets 1. Increase Sales Revenue 2. Increase Operating Profit Resources
21 Link Objectives and Initiatives ABC Company Plan Projects New Marketing Pla an se Customer Satisf faction 1.2 Initiate 1.1 Increas X Initiatives Strategic Objectives X 1. Increase Sales Revenue 2. Increase Operating Profit Targets Resources
22 Identify Quality Activities ABC Company Plan X 1.1a Satisfaction Survey with all deliveries Projects New Marketing Pla an se Customer Satisf faction 1.2 Initiate 1.1 Increas X X Initiatives Strategic Objectives 1. Increase Sales Revenue 2. Increase Operating Profit Targets Resources
23 Define Quality Activities ABC Company Plan X X 1.1b Customer Complaint FMEA 1.1a Satisfaction Survey with all deliveries Projects New Marketing Pla an se Customer Satisf faction 1.2 Initiate 1.1 Increas X Initiatives Strategic Objectives X 1. Increase Sales Revenue 2. Increase Operating Profit Targets Resources
24 Define Success Metrics ABC Company Plan X X 1.1b Customer Complaint FMEA 1.1a Satisfaction Survey with all deliveries X Projects New Marketing Pla an se Customer Satisf faction 1.2 Initiate 1.1 Increas Initiatives Strategic Objectives Targets 1.1a 90% Top Block Survey Results X X 1. Increase Sales Revenue 2. Increase Operating Profit Resources
25 Define Success Metrics ABC Company Plan X 1.1b Customer Complaint FMEA X X 1.1a Satisfaction Survey with all deliveries X X 1.2 Initiate New Marketing Plan 1.1 Increase Customer Satisfaction 1.1a 90% Top Block Survey Results 1.1b C/A for 75% of complaints within 30 days Initiatives Projects Strategic Objectives Targets X X 1. Increase Sales Revenue X X 2. Increase Operating Profit Resources
26 Define Success Metrics ABC Company Plan X 1.1b Customer Complaint FMEA X X X 1.1a Satisfaction Survey with all deliveries X X X 1.2 Initiate New Marketing Plan 1.1 Increase Customer Satisfaction 1.1a 90% Top Block Survey Results 1.1b C/A for 75% of complaints within 30 days 1. 20% Sales Revenue Growth Initiatives Projects Strategic Objectives Targets X X 1. Increase Sales Revenue X X X 2. Increase Operating Profit Resources
27 Identify Resources ABC Company Plan X 1.1b Customer Complaint FMEA X X X X X 1.1a Satisfaction Survey with all deliveries X X X X X X 1.2 Initiate New Marketing Plan 1.1 Increase Customer Satisfaction 1.1a 90% Top Block Survey Results 1.1b C/A for 75% of complaints within 30 days 1. 20% Sales Revenue Growth Initiatives Projects Targets Cindy Worth Charlie Charles Bobbie Pan Rick Wright Strategic Objectives X X 1. Increase Sales Revenue X X X 2. Increase Operating Profit Resources
28 Other Initiative(s) ABC Company Plan X 1.2a Market Quality Leadership X X X 1.1b Customer Complaint FMEA X X X X X 1.1a Satisfaction Survey with all deliveries X X X X X X 1.2 Initiate New Marketing Plan 1.1 Increase Customer Satisfaction 1.1a 90% Top Block Survey Results 1.1b C/A for 75% of complaints within 30 days 1. 20% Sales Revenue Growth Initiatives Projects Targets Cindy Worth Charlie Charles Bobbie Pan Rick Wright Joseph B. Goode Strategic Objectives X X 1. Increase Sales Revenue X X X 2. Increase Operating Profit Resources
29 Complete Plan ABC Company Plan X X 2.2a Green Belts on High Hitters X X X X X 2.1a Green Belt on Top Rework Costs X X X X X 1.2a Market Quality Leadership X X X 1.1b Customer Complaint FMEA X X X X X 1.1a Satisfaction Survey with all deliveries X X X X X X 2.2 Reducee Cost of Poor Supplier Quality 2.1 Reducee Internal Rework Costs 1.2 Initiate New Marketing Plan 1.1 Increase Customer Satisfaction 1.1a 90% Top Block Survey Results 1.1b C/A for 75% of complaints within 30 days 1. 20% Sales Revenue Growth 2. Reduce Rework Costs by 25% 2. 10% Increase in Operating Profit Cindy Worth Charlie Charles Bobbie Pan Rick Wright Joseph B. Goode John Q. Engineer Initiatives Projects Strategic Objectives Targets X X 1. Increase Sales Revenue X X X X X 2. Increase Operating Profit X X Resources
30 X-Matrix Benefits and Limitations Benefits Helps organizations focus on shared goals Communicates goals Communicates plans to achieve goals Helps obtain commitment and accountability
31 X-Matrix Benefits and Limitations Benefits Helps organizations focus on shared goals Communicates goals Communicates plans to achieve goals Helps obtain commitment and accountability Limitations Can be large & complex Less valuable if delivered from above Garbage in, Garbage out
32 ASQ Section Strategic Plan ASQ Section Strategic Plan Activity Description Activity Targets Strategic Objectives Resources
33 ASQ Section Strategic Plan ASQ Section Strategic Plan Activity Description Activity Targets Strategic Objectives 1. Increase Member Value 2. Increase Member Retention 3. Increase Member Satisfaction Resources
34 ASQ Section Strategic Plan ASQ Section Strategic Plan 3.1a Survey Program Sastisfaction & PDCA X X 2.1a Send Welcome to New Members X X 1.3a Post Quality Jobs on Website 1.2a Sponsor Certification Prep. Courses 1.1b Host Lunchtime Webinars 1.1a Host Dinner Programs & Tutorials X X X X X X X X X X X X 1.1a At Least 9 Program and Tutorial Events 1.1b At least 6 Lunchtime Webinars 1.2 Offer 16 Cert. Prep. Courses, Run % Local Q Job Postings on Website 1. Increase Surveyed Member Value by 5% 2.1a Send to 100% of new members 3.1a Increasee Program Satisfaction by 5% Joan Bill Eric F. Mark Activity Activity Description Strategic Objectives Targets 3.1 Program Satisfaction 2.1 Member Welcome 1.3 Job Placement 1.2 Education 1.1 Programs X X X 1. Increase Member Value X X X X X X 2. Increase Member Retention X X 3. Increase Member Satisfaction X Resources
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