Practical Strategy Deployment

Size: px
Start display at page:

Download "Practical Strategy Deployment"

Transcription

1 Practical Strategy Deployment LEAN GLOBAL NETWORK UK Lean Summit 16 Learning Lean, Lean Learning Wiebe Nijdam & Roberto Priolo E: What do we exactly understand by strategy deployment or hoshin? Create a con3nuous communica3on structure where we are breaking down abstract organiza3onal objec3ves into clear targets for value streams and processes Done by the whole organiza3on, everybody involved A3 s are the pivot point of effec3ve strategy deployment think deeply Engage everybody in improving the work and solving the problem on a daily basis Copyright Lean Management Ins3tuut 16 1

2 Framework and essen3al elements Effec3ve strategy deployment is a live system Leadership Standardized Work 4 Process focus Daily accountability Visual Management 3 Dialogue and giving authority is essen3al: Dialogue between the layers Common targets & problems Copyright Lean Management Ins3tuut 16 2

3 Quick response on small devia3ons Traditional management Lean management Assignments, projects,... Solu'ons Problems Sorry, can t do this, because... sr mgt middle management team leaders and group leaders Vague concerns, performance gaps Challenges Countermeasures This is a great solution! Mentoring on the 7 Elements of A3 Thinking shop floor Solutions go down, implementation problems escalate up Challenges go down, proposed countermeasures go up, mentoring on sound Problem Solving goes down Copyright Lean Management Ins3tuut 16 3

4 The board structure Site level & Department level Start your own strategy deployment journey. The paperfactory Copyright Lean Management Ins3tuut 16 4

5 The Structure First step, breaking down the strategical goals into goals for the organiza3on (SQDC) Copyright Lean Management Ins3tuut 16

6 Second step, understanding the gap! For each of the goals: How did we do last year? How did we do this year What is our target? Do this with a yearly target in mind Get an idea of the required ac3on Are we moving towards target? Make a plan and s3ck to it! Are we on target Fine, make sure you stay (next challenge is.?) Are we moving away from target? We are moving in wrong direc3on! What is our interven3on? Copyright Lean Management Ins3tuut 16 6

7 Clarify & Break Down the Problem: Participant #1 This problem concerns: QUALITY q QUANTITY q COST q PEOPLE q Exactly what is the problem? Behind schedule by Rework increased by Defects increased by Tool breakage increased by Machine down time is Accident rate increased by Set-up time is Paperwork is increased by The above problems are caused by.. Job method Layout Tools, gauges etc. Machines & equipment Materials Design Housekeeping & working conditions Unsafe conditions When it is Mechanical (involving Things & Places) PROOF or EVIDENCE of the PROBLEM Productivity is Work habits are Job interest is General attitude is Workmanship is Complaints are Attendance is Job satisfaction is EXPLORE the CAUSE When it is People who Don t know Can t do Don t do Won t do The above problems are caused by. Incorrect job assignment Faulty instruction & follow up Insufficient skill & experience Poor human relations Personality situation Basic wants threatened Health & physical fitness Unsafe acts CONCLUSION: This problem is: MECHANICAL q or it involves PEOPLE q or BOTH q Clarify & Break Down the Problem: Participant #1 This problem concerns: QUALITY q QUANTITY q COST q PEOPLE q Exactly what is the problem? Behind schedule by Rework increased by Defects increased by Tool breakage increased by Machine down time is Accident rate increased by Set-up time is Paperwork is increased by The above problems are caused by.. Job method Layout Tools, gauges etc. Machines & equipment Materials Design Housekeeping & working conditions Unsafe conditions Clarify & Break Down the Problem: Participant #1 This problem concerns: QUALITY q QUANTITY q COST q PEOPLE q Exactly what is the problem? Behind schedule by Rework increased by Defects increased by Tool breakage increased by Machine down time is Accident rate increased by Set-up time is Paperwork is increased by The above problems are caused by.. Job method Layout Tools, gauges etc. Machines & equipment Materials Design Housekeeping & working conditions Unsafe conditions When it is Mechanical (involving Things & Places) Clarify & Break Down the Problem: Participant #1 This problem concerns: QUALITY q QUANTITY q COST q PEOPLE q Exactly what is the problem? PROOF or EVIDENCE of the PROBLEM Productivity is Work habits are Job interest is General attitude is Workmanship is Complaints are Attendance is Job satisfaction is EXPLORE the CAUSE When it is Mechanical (involving Things & Places) PROOF or EVIDENCE of the PROBLEM Productivity is Work habits are Job interest is General attitude is Workmanship is Complaints are Attendance is Job satisfaction is EXPLORE the CAUSE When it is People who Don t know Can t do Don t do Won t do The above problems are caused by. Incorrect job assignment Faulty instruction & follow up Insufficient skill & experience Poor human relations Personality situation Basic wants threatened Health & physical fitness Unsafe acts CONCLUSION: This problem is: MECHANICAL q or it involves PEOPLE q or BOTH q When it is People who Don t know Can t do Don t do Won t do The above problems are caused by. Incorrect job assignment Faulty instruction & follow up Insufficient skill & experience Poor human relations Personality situation Basic wants threatened Health & physical fitness Unsafe acts CONCLUSION: This problem is: MECHANICAL q or it involves PEOPLE q or BOTH q PROOF or EVIDENCE of the PROBLEM When it is Mechanical When it is People (involving Things & Places) who Don t know Clarify Can t do & Break Don t do Down Won t do the Problem: Participant #1 This problem concerns: QUALITY q QUANTITY q COST q PEOPLE q Behind schedule by Productivity is Exactly what is the problem? Rework increased by Work habits are Defects increased by Job interest is PROOF or EVIDENCE of the PROBLEM Tool breakage increased by General attitude is When it is Mechanical When it is People Machine down time is Workmanship is (involving Things & Places) who Don t know Can t do Don t do Won t do Accident rate increased by Complaints are Behind schedule by Productivity is Set-up time is Attendance is Rework increased by Work habits are Paperwork is increased by Job satisfaction is Defects increased by Job interest is EXPLORE the CAUSE Tool breakage increased by General attitude is The above problems are caused by.. The above problems are caused by. Machine down time is Workmanship is Job method Incorrect job assignment Accident rate increased by Complaints are Layout Faulty instruction & follow up Set-up time is Attendance is Tools, gauges etc. Insufficient skill & experience Paperwork is increased by Job satisfaction is Machines & equipment Poor human relations EXPLORE the CAUSE Materials Personality situation The above problems are caused by.. The above problems are caused by. Design Basic wants threatened Job method Incorrect job assignment Housekeeping & working conditions Health & physical fitness Layout Faulty instruction & follow up Unsafe conditions Unsafe acts Tools, gauges etc. Insufficient skill & experience CONCLUSION: This problem is: MECHANICAL q or it involves Machines & PEOPLE equipment q or BOTH q Poor human relations Materials Design Housekeeping & working conditions Unsafe conditions Personality situation Basic wants threatened Health & physical fitness Unsafe acts CONCLUSION: This problem is: MECHANICAL q or it involves PEOPLE q or BOTH q Clarify & Break Down the Problem: Participant #1 This problem concerns: QUALITY q QUANTITY q COST q PEOPLE q Exactly what is the problem? Behind schedule by Rework increased by Defects increased by Tool breakage increased by Machine down time is Accident rate increased by Set-up time is Paperwork is increased by The above problems are caused by.. Job method Layout Tools, gauges etc. Machines & equipment Materials Design Housekeeping & working conditions Unsafe conditions When it is Mechanical (involving Things & Places) PROOF or EVIDENCE of the PROBLEM Productivity is Work habits are Job interest is General attitude is Workmanship is Complaints are Attendance is Job satisfaction is EXPLORE the CAUSE When it is People who Don t know Can t do Don t do Won t do The above problems are caused by. Incorrect job assignment Faulty instruction & follow up Insufficient skill & experience Poor human relations Personality situation Basic wants threatened Health & physical fitness Unsafe acts CONCLUSION: This problem is: MECHANICAL q or it involves PEOPLE q or BOTH q What is the plan in place to reach the targets? Review the exis3ng plans and see if they match with the gap we have just seen. If not, review the A3 s The importance of the A3 We have to make more profit. How do we understand what the causes are of costs we have?. Yearly goals for the organization PLAN DO & CHECK Understanding the gap Improvement A3s Measuring on a monthly basis ADJUST Problem solving Move from red to green COST DELIVERY QUALITY SAFETY Copyright Lean Management Ins3tuut 16 7

8 A3 Title I. Background What are the real reasons for our organiza3on to change (what happens if we decide not to change)? Looking at which concrete changes that appear in our organiza3on in the coming year, can we see that we are effec3ve (think of year end report, changed way of thinking and working, structures and ini3a3ves) II. Current situa3on Where are we today? Get informa3on out of our daily processes. What is really happening in our processes and how do the people in the processes experience this? Does management has the perspec3ve as the people in the processes? Where are the current performance gaps (caused gaps)? Where do we need to improve in rela3on to the current performance (created gaps)? Express the problem in one line III. Measurable goals Which measurable goals do we have to see if we are successful? How and where do we collect data to see if we are successful and evaluate? IV. Root cause Analysis Lean Leadership The Key Value Streams Opera'onal Management Lean Culture What is the root cause of the problem? Keep on going back to the current situa3on (and gathering new necessary informa3on) un3l you have established the root cause. Dis3nguish symptoms from problems Ogen problems have mul3ple causes. Think of experiments that you can perform to establish cause and effect. V. Proposed countermeasures What is our proposal to address the issues and reach the future (target) situa3on)? In which value streams do we need to achieve concrete improvements? How do we create the necessary capabili3es in order to realize the improvements in these value streams? VI. Plan Lean Leadership The Key Value Streams Opera'onal Management Lean Culture Which ini3a3ves should we deploy in order to close the performance gaps? Who could be responsible for which ini3a3ves and work with the proposed countermeasures? What is our standardized work to mentor? How can we see if we are successful? VII. Follow up Issues Countermeasures Expected impact Which issues can we an3cipate the will block success and how can we detect them in an early stage? Ensure con3nuous PDCA Capture learning's and share them! Which other value streams could benefit from these learning's? What do we need to do in order to embed this improvements in the way we perform our daily business? 18 Roles in the A3 Process: On strategic A3 s Coach Coachee On VSM A3 s Coach Coachee On strategic A3 s Coach Coachee Remark, this is an example and not a % rule. For instance, problem solving is done on every level and the CEO can be coached by people from other layers of the organiza3on Copyright Lean Management Ins3tuut 16 8

9 The Do & Check phase (do our countermeasures work?) Break yearly targets down in monthly steps Doorloop3jd Output Target This is the start of the accountability process Control the hour = Control the shig Control the shig = Control the day Control the day = Control the week Control the week = Control the month Control the month = Control the year Control the year = Reach your targets! Copyright Lean Management Ins3tuut 16 9

10 How are we doing? See if we are on a monthly basis working towards the yearly target Do the check, fill in by hand and put in the green area or in the red area. Green & Red Green means recogni3on & reward Red means problem solving: Why are we in red What is the cause that we are in red What is our countermeasure to go back to green Focus on solving two issues per week Copyright Lean Management Ins3tuut 16

11 Next step is to create a board per department, process etc. Now we have an obeya board for the organiza3on Goals are breaking down from yearly to monthly, from monthly to weekly, from weekly to daily. Board mee3ng and Kata coaching Daily rhythm preferred Always with 2 organiza3onal levels together Moving form red to green only once a month Kata coaching The Five Questions 1. What is the Target Condition? 2. What is the Actual Condition now? Turn card over 3. What Obstacles do you think are preventing you from reaching the target condition? Which *one* are your addressing now? 4. What is your next step? (next PDCA/ experiment) What do you expect?. When can we go and see what we have learned from taking that step? *You ll often work on the same obstacle for several PDCA cycles Copyright Lean Management Ins3tuut 16 11

12 The Five Ques3ons The Five Questions 1. What is the Target Condition? 2. What is the Actual Condition now? Turn card over 3. What Obstacles do you think are preventing you from reaching the target condition? Which *one* are your addressing now? 4. What is your next step? (next PDCA/ experiment) What do you expect?. When can we go and see what we have learned from taking that step? *You ll often work on the same obstacle for several PDCA cycles Reflect on the Last Step Taken Because you don t actually know what the result of a step will be! 1. What was your Last Step? 2. What did you Expect? 3. What Actually Happened? 4. What did you Learn? Return Who is the Kata coach? Always two organiza3onal levels involved Senior Management Management Team- & Line leaders Process Strategy Deployment VSM / A3 Kaizen / daily PS Copyright Lean Management Ins3tuut 16 12

13 Some ar3cles on Prac3cal strategy deployment and Leadership / teamdevelopment Prac3cal strategy deployment: hqp://planet-lean.com/how-to-deploy-hoshin-kanri-successfully Team & Leadership development, impera3ve for Prac3cal Strategy Deployment: Example of Prac3cal Strategy Deployment at the Dutch Ministry of Infrastructure: hqp://planet-lean.com/two-years-of-hoshin-at-the-dutch-ministry-ofinfrastructure hqp://planet-lean.com/the-step-by-step-lean-development-of-teams-andleaders 29 Strategy deployment is part of our leadership program Do you want to know more, contact us or visit the Planet-lean website to learn more about the subject. Wiebe Nijdam nijdam@leanins3tuut.nl Mobile: Copyright Lean Management Ins3tuut 16 13