hoshin promotion demystifying the x-matrix - manos

ASQ World Conference on Quality & Improvement May 2011

Hoshin Promotion – Demystifying the X-matrix

© Profero, Inc. 2011 1

1

Hoshin PromotionDemystifying the X-Matrix

Session M10Monday, May 16th, 2011 1:30 – 2:30 pm

Presented by

Anthony ManosCatalyst

Profero, Inc.

22

Outcomes & Agenda

Outcomes

• How to properly complete an X-matrix

• The relationship between the main sections of an X-matrix

• How an X-matrix fits in with Hoshin Planning

Agenda

• Different styles of matrices

• How to fill out the main sections

• The interactions of the main sections

• Multiple interactions to complete

• Optional information to display




3

Hoshin Kanri Background

What is Hoshin Kanri?

44

What is Hoshin Kanri?

• Used in Japan since 1960s

• Sets the direction for long-term prosperity

• Allows all ships to arrive at the same destination

• ho = direction

• shin = needle

• Hoshin = “compass”, a plan, policy, aim

• kan = control, channeling

• ri = logic, principle, reason

• Kanri = management, administration

• a.k.a Policy Deployment, Hoshin




55

Hoshin Process – Review & Scan

Review

• Honest reflection

• Review previous year’s plan

• What worked – what didn’t work?

• Capture lessons learned

• Create a “Stop doing” list

Environmental Scan

• Economic

• Socio-cultural

• Technological

• Political/Legal

• Macro-industry

• Resources

• Market

• Competitors

• Suppliers

66

Hoshin Process – SWOT & VVM

SWOT Analysis

• Internal Strengths & Weaknesses (Baldrige)

• External Opportunities & Threats (Porter’s Five Forces)

VVM

• Values

• Vision

• Mission




77

Hoshin Process – Selecting Top Ideas

• Brainstorming

• Affinity

• Gap Analysis

• Drivers, Means, & Outcomes

• Focus

• Selecting Top Ideas

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Brainstorming Question

• Remember to think of all your prep work for this next part

• As a starting point, think of how you might answer this question

It is five years in the future, we are wildly successful. What do we look like and how did we get here?




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Affinity Diagram

• As a team, organize and

group the like or similar ideas

• Remove any

duplicates• If needed,

consolidate• Remove the (currently)

impossible• Lastly, create names and

descriptions for the headers

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Gap Analysis and Cause & Effect

• Use the Headingsfrom the Affinity Diagram

• Determine the gapbetween where you are now and world-class

• Determine Drivers, Means and Outcomes




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Gap Analysis

• Even though this is subjective and based on the team members present, it will give a

good indication of

where you are

• $100 method or other ranking systems (n/3)

• Look at the average

and range

$100 Method

• Each team member is given ten dots (each dot is worth $10)

• They can place their dots where ever they like

• They can spread them out or if they feel strongly on a subject, they can place more there

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Gap Analysis Example

None = Zero

Gap

World Class =10




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Cause & Effect

• Ask:

– Does “A” cause “B”?

– Does “B” drive “A”?

– Neither or about the same?

• Draw lines from one to the other

• Determine Drivers, Means and Outcomes -

Count the number of ins and outs

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Drivers-Means-Outcome

• Count the number of “ins” and “outs” for each category

• All or almost all “outs” = drivers

• All or almost all “ins” = outcomes

• About equal “ins” and “outs” = means

• Judgment and part subjective

• Determine Drivers, Means and Outcomes

Driver

5 outs

0 ins2 outs

3 ins

Means

0 outs

5 ins

Outcome




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Focus

• Using Gap Analysis and Drivers-Means-Outcomes helps us determine which

items to focus on

• Look at drivers and

gaps• The team must achieve

consensus on the

top priorities

Driver

Means

Outcome

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Select Top Ideas Agenda

• Many organizations try to bite off more than they can chew by selecting

too many projects and

therefore do not get the

results that they were

expecting

• Think of the number of major initiatives you have undertaken in the past –how many were done with

excellence?

• Types of improvements

• Think B.I.G.

• Breakthrough items

• X-matrix




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Think BIG

• Think BIG - Boldly Important Goal• This will dramatically move us ahead

• Not achieving this goal would render all other

efforts useless

“Make no little plans; they have no magic to stir men's blood and probably will themselves not be realized. Make big plans; aim high in hope and work, remembering that a noble, logical diagram once recorded will not die.”

- Daniel Burnham (1846-1912)

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X-matrix

How to fill in the X-matrix




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X-matrix Overview

• The X-matrix is one of

the main things that helps set Hoshin planning apart from other methods

• It is the interactionbetween sections that will lead to better decisions

• There are many different

styles of matrices

� 5 �

� � � � � 2 � � � � � � � � � � �

� � � � � 1 � � � � � � � � � �

� � � 3 � � � � � � � � �

� � � 4 � � � � � � � � �

4 1 2 5 3 F C I I I I L

� � � � � � � � � � � �

� � � � � � � � � � �

�

�

�

F

C

I

L

New Product Development

Management/Operations

Parties or Departments

Increase 5S Supply Revenue to $250,000

Customer satisfaction ratings of 4.5 or higher

Greater than 99% on-time delivery

3-5 Focus Strategic Goals for Planning Year (Short-term

, 1-year)

Outstanding Products

Exceeding Customer Expectations / Outstanding Service

Fantastic M

arketing

Main Tactical Improvement Initiatives or Projects Team

5S Move

Breakthrough Strategies (Long-term, 3-5 years)

Make 5S Supply a great place to work

Increase 5S Supply Revenue

12 inventory turns per year

Measurement & Metrics (Balanced Scorecard)

100% m

oved into new location

100% "Go-live" with website

5S Training for all staff

Order Fulfillment

Purchasing

ParticipantWeak

Relationship Team

Correlation Legend

Accounting

Sales

Delivery of Services

Learning & Growth

Financial

Customer

Internal Processes

Balanced Scorecard

Member

Very Strong

Important

Leader

Training Preparation

Customer Service

New Product Development

Marketing / Promotions/ / Sales

Website / IT

Outstanding Staffing and Facilities Environment

Profero Marketing and Sales

Conferences and Seminars

Profero NPD/Update Materials

Value Stream Mapping Basics & Beyond Book

Group Health Insurance

5S New Product Development (NPD) Program

5S Marketing / Promotions / Sales

5S Website Redesign

Review / Environmental Scan / SWOT /

Vision-Mission-Values / Brainstorm / Af finity

Strategic Initiatives

Initiatives & ProjectsTree Diagram /

Process Decision Program Chart

Focus S

trate

gie

sGap Analysis /

Driver-Means-O

utcome

Balanced Score Card /

Metrics Correlation Matrix /

Strategy Maps

Targ

ets

& M

etr

ics

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Notes on X-matrix

• The X-matrix is usually not filled in all at once

• It takes several iterations before it is set

• Top level and other level X-matrices have

different sections

• “Standardize then customize” – many

companies customize their version to

make sense for them




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Anatomy of a High Level X-matrix

Key Players

Targets & Metrics

Initiatives & Projects

Focus Strategies

Strategic InitiativesVery Strong

Strong

Weak

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High Level X-matrix Example

Strategy 2

Strategy 3

Initiative 4

Initiative 3

Initiative 2

Initiative 6

Initiative 5

Key Players

Target 1

Initiative 1

Focus 1

Strategy 1Very Strong

Strong

Weak

Focus 2

Focus 3

Focus 4

Target 2

Target 3

Target 4

Target 5

Target 6

Target 7

Target 8

Department 1

Department 2

Department 3

Department 4

Department 5

Department 6




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Exponential Growth

• Remember for each breakthrough item you add, you are

adding hundredsof tasks

• Do you have the

resources to complete all these projects?

• Example: 5 x 3 x 4 x 7 x 15 = 6,300 action items!

5 15 60420

6,300

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000Example:5 Strategic Initiatives with3 Focused strategies each and4 Projects for each strategy7 categories of action items for each project15 action items for category

For each Strategic Initiative you add, there can be over 1,200 additional Action Items!

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Example

• “Sanitized” version

• Don’t get lost in the details – your X-matrix will be different!

• Think how this might work for you




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Example - Overall View

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Long-term Initiatives




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Short-term Initiatives

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Projects & Initiatives

• High level to start

• Don’t forget carry-over projects




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Measures & Metrics

• Try for a Balanced Scorecard approach

• Include Quality, Cost, Delivery/Service

• Leading / Lagging / Real-time

• Must make sense for organization

• Dashboard

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Teams

• Use departments or groups

• Typically not names of individuals but can be if needed

• Leader / (F/T) Member / (P/T) Participant




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Interactions

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Example - Overall View




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Other Information

• Additional helpful information

• Vision/Mission

• Rankings

• Balanced Score Card or Quality, Cost, Delivery, Safety, Morale

• Descriptions

• Standardize then customize

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X-matrix Example




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Drilling down

By Focus

By Department

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Playing Catch Ball

• Think of possible first level strategies that should

be worked on this (upcoming) year

• “Throw” these items to the appropriatedepartments or groups

• Have them develop strategies or ideas for

implementation• When they are ready, they can “throw” it back for

feedback




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Drilling Down

• As you are developing the next tier strategies and tactics you can create another X-matrix to fit that item

• Update the X-matrix as you go

• Use brainstorming and create Tree Diagrams, Value Stream Maps or A3’s to connect top level strategies to first tier, second tier and tactics

• The number of tiers depends on the complexity of strategies and the size of the organization

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Drill Down Methods

• There are many ways you can create lower level X-matrices, find one that works for you

• By Focus – create X-matrices for the

Major initiatives

• By Department – create X-matrices

based on department

• other




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Comparison

By Focus• Allows the teams to only complete x-matrices for the major initiatives

• Easily shows the cross-functional initiatives

By Department• Allows the department to add their own initiatives

• May make more sense for organizations based on corporate structure

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2nd Tier X-matrix by Focus




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2nd Tier X-matrix by Department or Group

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2nd Level

• Rotate and drill down for a 2nd Level X-matrix

• Put in additional information or specifics about tactical implementation

• Fill in interactions, measures & metrics, teams or groups

• 2nd Level items do not always require another X-matrix

• A Tree Diagram, A3, or Project Plan may suffice




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2nd Tier X-matrix “Rotation”

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2nd Level Example by Focus




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Review

Outcomes

• How to properly complete an X-matrix

• The relationship between the main sections of an X-matrix

• How an X-matrix fits in with Hoshin Planning

Agenda

• Different styles of matrices

• How to fill out the main sections

• The interactions of the main sections

• Multiple interactions to complete

• Optional information to display

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Conclusion

Wrap-up

Q&A

Evaluations




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Q&A

• Questions

• Comments

• Evaluations

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Resources

“Getting the Right Things Done” –Pascal Dennis

“Hoshin Kanri” –Yoji Akoa, editor

“Hoshin Kanri for the Lean Enterprise” –Thomas Jackson

Lean Policy Deployment DVD -GBMP

These titles and more available at www.5Ssupply.com




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Thank you

Hoshin Promotion

Demystifying the X-matrixSession M10

hoshin promotion demystifying the x-matrix - manos

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