Strategic Planning & Execution

using
i the
th X-Matrix
XM ti
R b t Q
Robert QualityBob
lit B b Mit
Mitchell
h ll
MNASQ Professional Development Summit
Session W225
April 3, 2012
Planning Process Outcomes
MNASQ LRP Outcomes
X-Matrix
What,
What Why
Projects A3
What,
Wh t Who,
Wh How,
H Wh
When
Bowler Scorecard
Execution effectiveness
Management Reviews
Weekly rhythm
Plan-Do-Check-Adjust
j
Root Cause Analysis
2012-2013 MNASQ Strategic Plan

To be the community of
choice pro
providing
iding
professional development
focused on
total customer experience
Project
A3
Bowler Scorecard
Hoshin
H hi Kanri
K i (definition):
(d fi iti ) TheTh process
used to identify and address critical
b i
business needsd and dddevelop
l ththe
capability of employees, achieved by
aligning
li i company resources att allll llevels l
and applying the PDCA cycle to
consistently
i t tl achieve
hi critical
iti l results.
lt
Why Hoshin Kanri?

Identifies the Vital Few

Level loading of resources
Catch Ball communication process to
establish
t bli h accountability
t bilit
Business process that aligns short and long
term strategic objectives
Rigor and discipline via PDCA (Target vs.
Actual please explain...,
Actual, explain etcetc.))
Establishes a rhythm of periodic reviews
Origins

Originated by Toyota (Toyota Production

System)
Hoshin = a course, policy, plan, aim
Kanri = administration
administration, management
management, control
control,
charge of, care of
Hoshin-Kanri
Hoshin Kanri = policy deployment with method
Ship in a storm going in the right direction
Makes it possible to get away from the status
quo and achieve breakthrough performance
improvement
p
Generic Strategic Planning Model

Corporate Charter
Key Environmental
Assumptions
Mission
Key Competitor
Assumptions
Vision
Organization Goals Critical Issues

Strategic Intent

Strategy Objectives Tactics/

Programs/
Projects

Resource Allocation
Execution Process

Operations
Playbook

H hi
Hoshin

Lean Six Sigma

Kanri
PDCA

Strategic Plan
&
Operational
Plans
Plan, Do, Check, Adjust (PDCA) Model
Grasp the Situation
Data Driven Discovery Process

Where have we been? Work the Plan

Where are we going? Engage and build the team
Develop SMART Metrics
Develop Action Plans

Execute the Periodic Monitoring

Countermeasures Swarm the problems
Adjust the Plan as needed D t
Determine
i Root
R t cause
Make the Changes Develop
Start Over!!! Countermeasures

We ALL become problem solvers

Long-Range Planning Model
1
Purpose
(Mission, Vision)

3 4
2
Desired Future Current Reality
(Practical Vision) (Environment)
Underlying
Contradictions
Creative Tension

5 Strategic Directions

Operational Plans 6
The North Star

Vision

Strategy

Strategy
Strategy

Strategy Strategy

Strategy
MNASQ - Previous Vision Statement

To be recognized as the preferred

source of quality concepts, technology
and tools for the benefit and value to
our members, our Society, our
communities and our profession
profession.
MNASQ - New Vision

T be
To b the
th community
it off choice
h i
providing professional
development
p focused on
total customer experience
MNASQ Mission

Foster personal and professional

relationships connections and sense
relationships,
of belonging.
Equip our community with the skills,
competencies and knowledge that
impact the total customer experience.
Reaction

What is your visceral reaction to the

new MNASQ mission
i i andd vision?
i i ?
Current State
Long-Range Planning Model
1
Purpose
(Mission, Vision)

4
3
2
Desired Future Current Reality
(Practical Vision) (Environment)
Underlying
Contradictions
Creative Tension

5
Strategic Directions

Operational Plans 6
MNASQ Current Reality

Mind Map

ASQs largest Section; 2500+ members

MN,
MN eastern ND & SDSD, western WI
Volunteer member leaders
2011 Forces of Change (Future of Quality)

1. Global Responsibility
2
2. C
Consumer A
Awareness
3. Globalization
4. Increasing Rate of Change
5. Workforce of the Future
6. An Aging Population
7. 21st Century Quality
8. Innovation

The full study is available at

http://asq.org/about-asq/how-we-do/futures-study.html
7 21st Century Quality
Cannot take quality for granted
Quality is the competitive advantage
Then Next
Goal Prevention Perfection
Quality of Product Enterprise
Philosophy Processes Community
Sector Manufacturing Every
W t
Waste T l bl
Tolerable Abh
Abhorrentt
Focus Product/Service Experience
Methodology Control/ Change/
Improvement Transformation
Current Realities
Discussion:
What is your current performance?
Sales, Profits
Portfolio management
Customer loyalty
Employee
p y engagement
g g
What issues or challenges are your
organizations facing today impacting
quality, innovation and growth?
Desired Future State
Long-Range Planning Model
1
Purpose
(Mission, Vision)

4
3
2
Desired Future Current Reality
(Practical Vision) (Environment)
Underlying
Contradictions
Creative Tension

5 Strategic Directions

Operational Plans 6
MNASQ Desired Future State
Brainstorm & Affinity Process
MNASQ Desired Future State (2 of 2)
Desired Future State (True North)
Discussion:
Where does your organization want to be
in 3-5 years?
What will it look, feel like?
Cores Values, Principles
Examples:
$X sales in 2015 at a Y% OI minimum
#1 or #2 solution p
provider in every
y market we serve
Expand into X new markets
Engaged employees proud to be
a part of XYZ
Underlying Contradictions
Long-Range Planning Model
1
Purpose
(Mission, Vision)

4
3
2
Desired Future Current Reality
(Practical Vision) (Environment)
Underlying
Contradictions
Creative Tension

5 Strategic Directions

Operational Plans 6
Underlying Contradictions
What is holding your organization back?
What is blocking your progress?
Barriers? Conflicts? Constraints?
* Never a Lack of...
Lack of money
Lack of time
Lack of people
 MNASQ Underlying Contradictions
Communication Challenges Succession Planning not documented Under-utilized partnersip alliances
Do we have members with expertise in the new Steep learning curve for incoming Committee and Expand offerings to our members via
social networking tools? Board members
partnerships with other potential
Difficulty communing the WIIFM for members, No strategy or process documentation exists for professional organizations
nonmembers leader succession planning
We do not have a strategy, objectives, or
Tailor the communication to each segmented Individuals may lack support, time to commit to a process to identify and engage partners
market 3 year Board rotation.
We do not who the potential organizations
We had a lack of communication in 2010 due to Most leadership terms are just 1 year - difficult to
might be; limited contacts. What are their
BenchmarQ and website problems learn and contribute before rotating off
products?
Demonstrate the value of MNASQ alliance
The changing role of Quality in the world today How do we identify qualified potential committee
leaders and/or Officers? to partners' membership.
Enterprise memberships: Primary contact Little team building offered today by which to build
versus Individual member types relationships trust.
relationships, trust Limited visibility of Section by We lack a defined Volunteer engagement
Use VOC feedback to customize our Little visibility of current Board to the rank and file Business Leaders model
communications to each segment. members; lost opportunity to build rapport
Grow our presence and impact by Committee leaders must identify specific
connecting with business leaders via a needs and required skills to the Volunteer
Need faster response to issues, opportunities Fill existing vacancies CEO Roundtable structure Placement Coords.
Section leaders do not have contacts with Fill existing open positions on the
Need more frequent communciations
liocal business leaders or Quality Heads leadership team
Need more diverse communciations tools

Business Heads of Quality are not aware Identify specific skillsets desired, and time
Changing Face of Quality
of Section products, services, value commitment needed, for various volunteer
Most training today is classroom seting in No strategy to attract, recriuit, retain young
the Twin Cities metro area professionals
proposition. opportunities
Gain access to Enterprise-member Volunteers may need assistance from
No strategy exists today on what, how, where, Professionals in nontraditional markets do not
when to deliver training outside of the TC area associate themselves with Quality "primary contacts" Section
Need to identify a well-connected local Document the value proposition for
20% of section members live out-state
out state Define the target markets of younger generations business leader to sponsor Section volunteering
"Roundtable" efforts
Limited use of distance learning tools Don't lose focus on small businesses who Consider unemployed experts to help
Speakers not prepared to present on-line We are a volunteer professional organization probably lack the quality training Committees
resources of large companies
Speakers not skilled in use of new technology Revenue generated from membership dues

No out-state contacts/coordinators available Passionate members with limited availability to

volunteer
Part-time volunteers
Underlying Contradictions
Discussion:
What are some contradictions in your
operations holding you back?
Long-Range Planning Model
1
Purpose
(Mission, Vision)

4
3
2
Desired Future Current Reality
(Practical Vision) (Environment)
Underlying
Contradictions
Creative Tension

5 Strategic Directions

Operational Plans 6
Strategic Directions
Brainstorm how we can overcome the
Underlying Contradictions?
More of, Less Of, Stay the Same
Reverse brainstorming
Interrelationship Diagram
Pugh Concept
Hoshin kanri Strategy Deployment

From the Strategic Directions discussion:

Prioritize
P i iti th the vital
it l ffew
C&E Matrix
Pairwise comparisons
X-Matrix
3-5 Year Objectives
j
Annual Objectives
Strategic plans (Operational plans; Tactics)
T
Targets
t to
t Improve
I (Key
(K metrics)
ti )
Develop, assign projects
A3s
C&E Analysis

Matrix Scoring:
9 = High
3 = Medium
1 = Low
Paired Comparison (for C&E Weightings)

Alternative: Analytic Hierarchy Process (AHP) Methodology

 X-Matrix

The Conference Board X-Matrix template

Long-term Objectives (True North)
2012 MNASQ X-Matrix w Owners

To be the
community of choice
providing
professional development
focused on
total customer experience
Example: MNASQ Marketing Plan
Action Plan Template
Bowler Scorecard (Targets to Improve)
 Management by Fact Tool..
2010 Strategic Performance Dashboard
Priori Starting This
ty Deliverables and Measures Owner Point EOY Year: JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
A Plan 12.5 25.1 39.6 53.7 67.1 81.9 95.9 111.0 125.3 139.2 152.3 163.5
1
Item #1 B $0M A Actual 10.8 22.4 36.9 50.8 64.4 79.3
C Plan 12.6 25.5 36.1 55.5 61.4 74.9 98.1 113.3 127.8 141.8 155.0 166.3
2
Item #2 D $0M B Actual 13.7 26.6 40.9 53.9 65.9 80.5
E Plan 34.0 68.3 107.8 146.4 182.9 223.1 261.5 302.5 341.6 379.5 415.3 445.6
3
Item #3 F $0M C Actual 29.6 62.1 100.6 137.3 173.3 213.2
G Plan 60.7 121.4 182.1 242.8 298.0 364.2 424.9 485.6 546.3 607.0 667.7 728.4
4
Item #4 H $0M D Actual 52.6 107.1 174.0 236.0 297.0 365.0
5
Item #5
K
I
J $0M E
Plan
Actual
Plan
60.7
52.6
14.0
121.4
107.1
29.0
182.1
174.0
45.0
242.8
236.0
61.0
298.0
297.0
77.0
364.2
368.0
93.0
424.9 485.6 546.3 607.0 667.7 728.4

109.0 126.0 143.0 159.0 174.0 188.2

Root Cause & Corrective
6

7
Item #6

Item #7
M
N
L $0M

$0M G
F Actual
Plan
Actual
13.9
0.15
0.10
28.6
0.35
0.23
45.0
0.55
0.37
64.8
0.85
0.48
78.2
1.25
0.62
94.0
1.80
1.2
2.50 3.60 5.00 6.50 8.50 10.00 Action if Metric is Off Target
O Plan ##### ##### ##### ##### ##### ##### ##### ##### ##### ##### ##### #####
8
Item #8 P $0M H Actual 49
4.9 96
9.6 16 7
16.7 21 8
21.8 27 8
27.8

Special Cause vs.

Q Plan 0 0 0 0 25 60 100 145 195 250 295 339
9
Item #9 R 0 I Actual 0 0 0 0 14 50
S Plan 1.8 3.5 5.6 7.3 9.1 11.0 12.7 14.5 16.3 19.1 22.0 24.9
10
Item #10 T A J Actual 2.1 4.3 6.9 9.2 11.5 13.0
11
Item #11
U

W
V C K
Plan
Actual
Plan
59.2%
54.4%
88.0%
59.1%
54.6%
89.0%
58.1%
55.4%
90.0%
57.9%
54.4%
92.0%
57.9%
55.1%
92.0%
57.4% 57.4% 57.2% 57.1% 56.9% 57.0% 57.4%
54.7%
92.0% 92.0% 92.0% 92.0% 92.0% 92.0% 92.0%
Common Cause
12
Item #12 Z B L Actual 90.7% 90.1% 90.7% 90.2% 89.6% 91.0%
Y Plan 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 36.0 40.0 44.0 48.0
13
Item #13 Z $0M M Actual 3.7 6.9 11.1 15.1 19.5 24.5
A Plan ##### ##### ##### ##### ##### ##### ##### ##### ##### ##### ##### #####
14
Item #14 B $0M N Actual 0.8 2.9 4.6 4.8 5.7 6.7

Management by Fact Template

Problem Statement:

Reds from Root-Cause

5 Why's:

Bowler to Pareto Analysis:

Proposed Response:

Mgmt by Fact Prioritization Counter Measures

and Root Cause and Activities
Who When Expected
Benefits/Impact
Target
Achieved?/Impact
Addressed

tool 1
2
3
4
5

46
 Thank you

Robert H Mitchell
QualityBob www.linkedin.com/in/roberthmitchell
twitter.com/QualityBob
y
[email protected] www.facebook.com/pages/QualityBob
Quality Matters blog