Driving strategic transformation programs webinar

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© i-nexus 2010 Did We Move the Dials? Driving Strategic Transformation Programs

description

This presentation focuses on how to generate leadership "pull" for transformation initiatives. Those organizations less mature in their strategy execution journey tend to focus on immediate challenges together with the ROI of projects and programs. Strategic alignment is often neglected. In many ways the focus in less mature organizations is a function of the Operational excellence team's ability to control projects, but lesser ability to control or influence the more strategic issues. This ability alone is a key differentiator between those teams that don't make real progress down the maturity continuum and those that do. Article Source: http://www.slideshare.net/grantcrow12/driving-strategic-transformation-programs-webinar-26149777 For more information visit: http://www.i-nexus.com/

Transcript of Driving strategic transformation programs webinar

Page 1: Driving strategic transformation programs webinar

© i-nexus 2010

Did We Move the Dials?Driving Strategic Transformation Programs

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Observations on Transformation Programs in 100+ Large Organisations

Leve

l of P

ull

Level of Maturity

Size of bubble = Relative Impact on Shareholder ValueFocus

on ProjectSuccess

Focus on ProgramROI

Focus on OperationalPerformance

Focus on StrategicAlignment

Big Y = Speed to Tangible Benefits

Big Y = Initiative ROI

Big Y = Process KPI Improvement

Big Y = Business Results Improvement

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Most organisations Follow A Similar Journey....The Business Execution Maturity Model (BEMM)

GoalDriven

ProcessDriven

ProgramDriven

ProjectDriven

BEMMLevels

KeyGoals

Demonstrate Success

Accelerate Benefit Delivery

Make Improvement Sustainable

Align Improvement With Goals

Level 1 Level 2 Level 3 Level 4

We Need To Implement Some Change Projects

We Need a Company-

wideTransformation Program

We Need Our Operational

Managers to Drive Improvement

We Need to Align of

Transformation Efforts With Our Business Goals

TypicalDecisions

Push PullPredominantChange Mode

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What is the primary way your organization measures the success of your process excellence initiatives?

Hard financial benefits delivered

Change in organizational culture

Performance against KPIs of the program

Contribution against strategic goal

Increase in customer satisfaction

20122008

N=103

10 4020 30 50 60

647

11

5

13

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Conceptually what do you need to succeed?

DesiredBusines

s Impact

Changed Process Outcomes

Process, People and System Changes Needed to Achieve Changed Outcomes

Ability to systematicallytranslate strategy intoactionable priorities

Ability maintain a laser focus on execution

Ability to systematically make

course corrections as we execute

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Practically how do we do this?

Learn more –visit

www.i-nexus.com

Leading organizations are increasingly combining key concepts from...

• Hoshin Planning – X-Matrix, Bowling Charts, A3s

• Operational Excellence – Stage Gates, PDCA, Lean Six Sigma Tools

• Balanced Scorecards – Strategy Maps, Cascaded Scorecards

....to create an integrated ‘Transformation’

system

Closed-loop Business Execution

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Systematically translate Objectives to Actionable Priorities

StrategyMaps

Hoshin X-matrices

A3s/Annual Improvement Plans/Action Plans

Ability to systematicallytranslate strategy intoactionable priorities

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Strategy mapping helps you create consensus, X-matrices help you translate into actions..

Financial

Customer

Internal

Learning

Measure Target Initiative

Increase Profit

Maximise

Utilisation

RetainCustomer

sLow

Cost Offer

FastTurnaround

MotivatedCrew

Objective

Achieve FastGround Turnaround

On Ground TimeOn Time Departure

25 Minutes

95% Flights

ReduceTurnaroundTime

Strategy Map

Hoshin Plan

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Strategy Map to X-Matrix Example

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The A3 helps those responsible for goals to charter the action plan, track the results and manage risks

Ground Operations Transformation Program

BackgroundAirplane turnaround time is averaging 140 minutes. The consequence of this is poor utilization of assets and low customer satisfaction/below industry average customer retention – both of which are eroding profitability. We need to dramatically reduce turnaround time and increase on-time departures.

Offloading process improvementImproved Maintenance Schedule

Scoping is behind plan

Process Changed

Organisation Changed

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Systematically maintain a laser focus on execution...

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Execute against a shared plan with clear milestones and

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Grasp the situation – utilise integrated bowling charts to track progress/impact of strategic initiatives

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Keeping on track – Use MAAR to focus on root causes and to instigate countermeasures

Dry Lot Release Date

Indi

vidu

al V

alue

28-Oct-

03

20-Oct-

03

11-Oct-

03

01-Oct-

03

21-Sep

-03

11-Sep

-03

02-Sep

-03

24-Aug

-03

15-Aug

-03

07-Aug

-03

01-Aug-

03

100

90

80

70

60

50

40

30

_X=61.35

UCL=92.19

LCL=30.51

1 2Control Chart of Total Yield

Phased Introduction of newinsert design and new algorithm/illusmination levels and camera orientation.

Cause

Action Owner

Due

Status

A Reduce instances of A

PTD Jan

B Remove instances of B

ABC Feb

Measure Analyse

ActionReview

On Time Departure Analysis of Root Causes

Action Planning/ProgressValidation of Improvement

A B C D

RC

J F M A M J J A S O N

A 10

21 16 18 0 0 0 0 0

B 18

23 24 16 2 9 0 2 6

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Conceptually what do you need to succeed?

DesiredBusines

s Impact

Changed Process Outcomes

Process, People and System Changes Needed to Achieve Changed Outcomes

Ability to systematically make

course corrections as we execute

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Paradigm Shift 1 -Review execution not historic performance

From: Are we meeting our targets? To: Will the actions we have underway enable us to achieve our goals?

FebJan Mar MayApr Jun

1020

4030

50

7060

9080

100

Action: ABCTarget Date: AugImpact: +20 UOMs

Action: XYZTarget Date: OctImpact: +35 UOMs

SepJul Aug NovOct Dec

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The Real Question is ‘Are We Likely To Hit Our Targets?’

General Display Reports & Outputs

Strategy Navigator

Delete Inline Edit Save Cancel Edit ViewDisassociate

Business Navigator Strategy NavigatorStart

CEO

Selected ViewBusiness Unit

Create View

Show Children Hide Children Refresh

Name OwnerPI TLS Trend Q1 2010

Target Actual

Q2 2010

Target Forecast

Q3 2010

Target Forecast

Q4 2010

Target Forecast

Status UOM

- Example Manufacturing Business 100 80 100 85 100 85 100 90

35 40 40 10 60 70

100 102 200 157 300 100

Agreed

Agreed PI60

80 PI

100 60 100 70 100 100 80

50 100 50 100 65

CEO

COO

Quick Filter No Filter Applied – Showing 3 Items

Shift Volume Production of Product A to Low Cost Region

Reduce Working Capital by 20% in XYZ Facility

Reduce Inventory by $25M

Inventory Turns

Implement Supply Kanban..Implement Vendor Sched..

Reduce Average Cash Collection by 15 Days

Debtor Days

Reduce Invoice Errors

Setup New Facility in Country X

-

-

-

-

-

- 12 102 200 157 300 290 400Agreed #70 8.4 12 8.4 12 8.4 12 9.5Ops Manager

70

58

70

Agreed PI50 Ops Director

- %55 Project Leader

- %100 Project Leader

Draft PI85 Finance Director

Draft Days85 Financial Controller

- %100 Project Leader

Agreed PI100 Ops Director

Agreed %100 Project Leader

44 102 200 157 300 -100 - - - -

0.1 102 200 157 300 290 4003 0.1 3 0.1 2.6 0.1 2.6

-

25 102 200 157 300 10010 45 30 68 10065

100 102 200 157 300 10085 100 85 100 100

65 102 200 157 300 290 40076 65 76 65 76 65 59

85

70 102 200 157 300 -10 100 50 - -100

55 102 200 157 300 290 40060 76 78 94 98 100 100

Scrap Rate- Agreed %30 Ops Manager

Improve Process Yield - %0 Project Leader

100 102 200 157 300 290 400100 100 100 100 100 100 100

10 102 200 157 300 290 40015 20 45 80 100 100 -

65 65 65 65

Improve Process Yeild

Impact: 0.4% ReductionDate: 28/09/2010

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How can we ‘get fit’ for Business Execution?

Drive Strategic and Sustainable Transformation

DevelopCore Execution Competencies

•Causal Thinking Skills•Prioritisation/

Improvement Tools•PDCA Approach to

Operational Reviews•Process Thinking

CrystallizeVision/Hoshin

Planning Approach

• Establish Annual Hoshin Timetable

• Provide Guidance on Stretch Goal Setting

• Codify the Review Process

• Implement Leader Standard Work

Align Resource and Reward

Planning

•Synchronise the Budgeting/ Forecasting Process

•Align With Annual Performance Reviews

•Align Rewards with Catch-ball Targets

Underpin With aBusiness Execution

Platform

•Create Single Version of Truth

•Ensure Line-of-Sight for Every Employee

•Take Effort/ Complexity out of Catch-ball/Review

•Make Performance Transparent

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How can i-nexus help you realise the full potential of Business Execution?

The i-nexus on-demand Platform provides the most complete foundation available today for organisation-wide Business Execution.

Our global consulting partners have a deep understanding of what it takes to establishbusiness execution disciplines and are ready to help you build the competencies you need.

Learn More: www.i-nexus.com

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