November 15, 2017 Strategic Goal...
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Transcript of November 15, 2017 Strategic Goal...
2
To be Understood Prior to November 15th
These slides are meant to be reviewed and understood prior to arrival at the Leadership Summit.
Day 3 of the Summit will be spent further developing our 2018 Strategic Goal Deployment plans beyond the X-Matrix included here.
11/9/2017
3
Why Use SGD?
To clarify strategy and align & focus resources throughout the organization on the critical few.
4
Converting Strategy Into Reality Is Challenging, Here’s Our Methodology
SGD Environment
CompanyVision
StrategicPlan
GoalDeployment
Disciplined OperatingReview Process (KBM’S)
SustainableBreakthroughImprovements
The Vehicle Used toConvert
Strategy Into Reality
5
I Value DisciplineAnalysis
• Product Leadership
• Customer Intimacy
• Operational Excellence
III OperationalExcellence
• Lean / Kaizen– Continuous
Improvement– Achievement of
customer metrics
• Six Sigma– Continuous
Improvement– Quest for perfect quality– Achievement of
customer metrics
• Personnel Development
II Growth Strategy
• Concentration– selling more of current
products into current markets
• Market Development– selling more of current
products into new markets
• Product Development– Developing new
products for current markets
• Other
OPW Fluid Transfer Group Top Level "X" Matrix 2008
CCCCCC
Breakthrough Objective 1Breakthrough Objective 2Breakthrough Objective 3Breakthrough Objective 4
Top Level Improvement
Priorities
2008 Annual Objectives
Targets to Improve
3 Year Financial Breakthrough
Objectives
<Name of Company>Goal Deployment KPI Bowling Chart
2002 YTDKPI JOP ACT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT
SAFETY Plan Act
QUALITY Plan Act Plan Act Plan
ActDELIVERY
PlanAct
PlanActPlanActPlanAct
COST Plan
Act Plan
ActPlanAct
GROWTHPlanAct
PlanAct
PSG StrategyStrategic Goals feed SGD “X – Matrix”
Each Goal gets a detailed Action Plan
Action Plan progress is updated each month on a “bowling chart”
Action Plans that are behind require a “Counter-Measures”
Strategic Goal Deployment Process Can Help
6
Benefit Of The Goal Deployment Process
FREQUENT CHALLENGE YET, WITH SGD BENEFIT
Flavor Of The MonthOnly A Major Shift In The
Business Alters Us From The Plan
We Stay Focused On The critical few goals
Incremental Process Is Insufficient To Achieve
Strategic Goals
Resources Can Be Focused On Critical Few Breakthroughs
Step Function Improvements To Performance Are Achieved
Improvements Don’t Stick Progress Changes Are Key To Breakthroughs
Improvements This Year Roll Into Baseline For
Performance Next Year
Daily Demands Interfere With Breakthrough Achievement
Breakthroughs Take Precedence
We Hit Our Targets More Regularly
In Time, Breakthrough Performance Is Realized
7
Annual SGD Preparation Process
1. Develop Top Level X Matrix for PSG (done and provided by PSG HQ in this pre-read pack)
2. Determine Where 2nd Level X Matrix Cascade Is Needed (to be done by you during Leadership Summit)
3. Determine TLIP Leaders and Resources Needed (to be completed by you during Leadership Summit)
4. Develop Action Plans for each TLIP (Action Plan owners assigned and Key Milestones to be done by you during Leadership Summit)
5. Develop Bowling Chart with monthly milestones for each TTI (to be done by you during Leadership Summit)
8
X Matrix Thought Process
XStep 3: HOW?
Which Key Processes?
Step 2: HOW FAR…This Year?
Step 1: WHAT?Financial Breakthrough Thinking
Step 4: HOW MUCH& WHEN?Measures?
Step 5: WHO?Resource
Deployment
9
The “X Matrix”
CCCCCC
Breakthrough Objective 1Breakthrough Objective 2Breakthrough Objective 3Breakthrough Objective 4
Top Level Improvement
Priorities
2008 Annual Objectives
Targets to Improve
3 Year Financial Breakthrough
Objectives
Step 3: HOW?Which key processes?
Step 2: HOW FAR?This Year?
Step 4: HOW MUCH & WHEN?Metrics / Measures?
Step 5: WHO?Resource Deployment
Breakthrough ObjectivesShould be listed in order
of Priority.
Step 1: WHAT?Financial Breakthrough Thinking
11
Start With 3 Year “Breakthrough” Objectives
Achieve Organic Revenue of $500M
EBIT Margins over 25%
Improve WC to 14%
Finish Rollout of Efficiency enablers - Oracle, Shared Services, and CI
Top Level Improvement
Priorities
2018Annual
Objectives
Targets to Improve
3 Year Breakthrough
Objectives
12
How Far Can We Push This Year?
CCCCCC
Ann
ual O
bjec
tive
4A
nnua
l Obj
ectiv
e 3
Ann
ual O
bjec
tive
2A
nnua
l Obj
ectiv
e 1
Breakthrough Objective 1 Breakthrough Objective 2
Breakthrough Objective 3
Top Level Improvement
Priorities
2008 Annual Objectives
Targets to Improve
3 Year Financial Breakthrough
Objectives
Step 1: WHAT?Financial Breakthrough Thinking
Step 2: HOW FAR?This Year?
Annual Objectives should beListed in order of 3-5 Yr
Breakthrough they support.
13
2018 ObjectivesIm
plem
ent S
GD -
DBS
- CI -
Tal
ent R
evie
w
Wor
king
Cap
ital t
o 15
%
Impr
ove
EBIT
Mar
gins
to 2
2.5%
Achi
eve
Reve
nue
of $
425M
Achieve Organic Revenue of $500M
EBIT Margins over 25%
Improve WC to 14%
Finish Rollout of Efficiency enablers - Oracle, Shared Services, and CI
Top Level Improvement
Priorities
2018Annual
Objectives
Targets to Improve
3 Year Breakthrough
Objectives
14
p p
Improvement Priority 6 C Improvement Priority 5 C Improvement Priority 4 C Improvement Priority 3 C Improvement Priority 2 C Improvement Priority 1 C
Ann
ual O
bjec
tive
4A
nnua
l Obj
ectiv
e 3
Ann
ual O
bjec
tive
2A
nnua
l Obj
ectiv
e 1
Breakthrough Objective 1 Breakthrough Objective 2
Breakthrough Objective 3
Top Level Improvement
Priorities
2008 Annual Objectives
Targets to Improve
3 Year Financial Breakthrough
Objectives
Step 1: WHAT?Financial Breakthrough Thinking
Step 2: HOW FAR?This Year?
Step 3: HOW?Which key initiatives?
What key initiatives are we to implement to meet our 1st Year
Annual Objectives?
Top Level Improvement Priorities Are The “Critical Few”
15
Top Level Improvement - Priority Examples
GROWTH
Earnings
ROI
EBIT
CASH FLOW
• Dev & Launch New Product Development Process
• Create & Implement Key Customer Conversion Process
• Apply Lean/Sigma Tools to XYZValue Stream to Reduce Lead Time
• Launch Prodt’y Imp Std Work Series in Assy
• Develop & Implement LCR Sourcing Plan
• Develop & Implement Mfg Rationalization Plan
• Launch “War on WC” Process• Implement POU Replenishment
Process
• Dev & Implement SG&A CostReduction & Control Plan
• Create & Implement Rapid Defect Reduction Process
• Dev & Implement Reverse Unprofitable Accts Process
The “short list” of goals and objectives that will enable the
company to achieve breakthrough performance (as opposed to incremental gains
in performance)
I Value DisciplineAnalysis
• Product Leadership
• Customer Intimacy
• Operational Excellence
III OperationalExcellence
• Lean / Kaizen– Continuous
Improvement– Achievement of
customer metrics
• Six Sigma– Continuous
Improvement– Quest for perfect quality– Achievement of
customer metrics
• Personnel Development
II Growth Strategy
• Concentration– selling more of current
products into current markets
• Market Development– selling more of current
products into new markets
• Product Development– Developing new
products for current markets
• Other
16
Top Level Improvement Priorities (TLIP)PE
RFO
RM
ANC
E
Current
AnnualObjective
GAP
1.) Understand the key drivers of current performance.
2.) Determine whether or not the key goals and objectives can bridge the gap between current performance and the Annual Objective.
17
Top Level Improvement Priorities Checklist
Does it lead to the creation of a sustainable: Results oriented process? a new revenue stream? Cost savings? competitive advantage?
Does it begin with an action verb?Does it meet current or emerging customer needs?Does it reflect simple flow of logic?Is it easy to communicate? (If not, simplify/clarify).Is it critical, primary driver of the Annual Objective?
18
2018 PSG Top Level Improvement PrioritiesDeliver "one PSG backoffice"
+1 Turn Inventory Initiative
Accelerate Global Sourcing
Expand Diaphragm Sales Channels
Globalize Gear and Screw Sales
Impl
emen
t SGD
- DB
S - C
I - T
alen
t Rev
iew
Wor
king
Cap
ital t
o 15
%
Impr
ove
EBIT
Mar
gins
to 2
2.5%
Achi
eve
Reve
nue
of $
425M
Achieve Organic Revenue of $500M
EBIT Margins over 25%
Improve WC to 14%
Finish Rollout of Efficiency enablers - Oracle, Shared Services, and CI
Top Level Improvement
Priorities
2018Annual
Objectives
Targets to Improve
3 Year Breakthrough
Objectives
19
SGD Thought Process: Step 4
X1
2 4
3
5
Step 4: HOW MUCH & WHEN?Defining the metrics
Determine which metrics willreflect timely progress of
improvement Priorities & trackthem.
J F M A M J J A S O N D
PlanActual
20
The “X” MatrixOPW Fluid Transfer Group Top Level "X" Matrix 2008
Improvement Priority 6 C Improvement Priority 5 C Improvement Priority 4 C Improvement Priority 3 C Improvement Priority 2 C Improvement Priority 1 C
Ann
ual O
bjec
tive
4A
nnua
l Obj
ectiv
e 3
Ann
ual O
bjec
tive
2A
nnua
l Obj
ectiv
e 1
Targ
et to
Impr
ove
1Ta
rget
to Im
prov
e 2
Targ
et to
Impr
ove
3Ta
rget
to Im
prov
e 4
Targ
et to
Impr
ove
5Ta
rget
to Im
prov
e 6
Breakthrough Objective 1 Breakthrough Objective 2
Breakthrough Objective 3
Top Level Improvement
Priorities
2008 Annual Objectives
Targets to Improve
3 Year Financial Breakthrough
Objectives
Step 2: HOW FAR?This Year?
Step 3: HOW?Which key processes?
Step 4: HOW MUCH & WHEN?Metrics?
Step 1: WHAT?Financial Breakthrough Thinking
Improvement Priorities tell “How” Targets to Improve (TTI’s) tell
“How Much” & by “When”
21
Identify Targets to Improve (TTI’s)
Are required for each Improvement Priority Are measures of effectiveness of
an Improvement Priority Should be able to be broken
down into monthly increments Are typically, From: _____ To:
______ by_______: statements
TTI’s…
22
TTI - Examples
GROWTH
Earnings
ROI
EBIT
Inventory Turns
10 new accounts by 12//07
Inc Prod’ty Index From 1.0 to 1.12 by 12/31
Increase ROI from 22% to 26% by 12/31
SG&A From 24% to 20% to Sls by 12/31
Increase turns from 6 to 9 by 12/08
23
Target to Improve Checklist
Will it effectively reflect impact of Improvement Priority implementation?Can it be broken down into at least monthly progress increments?Does it exceed Plan targets?Does it track progress toward achieving the Annual Objective?Does it measure results (preferable), vs. action plan milestones?Is it easy to calculate and communicate?Does it demonstrate a simple flow of logic?
24
Deliver "one PSG backoffice"
+1 Turn Inventory Initiative
Accelerate Global Sourcing
Expand Diaphragm Sales Channels
Globalize Gear and Screw Sales
Impl
emen
t SGD
- DB
S - C
I - T
alen
t Rev
iew
Wor
king
Cap
ital t
o 15
%
Impr
ove
EBIT
Mar
gins
to 2
2.5%
Achi
eve
Reve
nue
of $
425M
Glob
al G
ear S
ales
of $
4.5M
Glob
al S
crew
Sal
es o
f $6.
5M
Sale
s thr
ough
Cat
alog
s and
ISC
of $
1.2M
Gran
d Ra
pids
Pro
duct
ivity
Sav
ings
of $
2.5M
BVC
Spen
d >
23%
+1 P
SG In
vent
ory
Turn
to 6
.0
Ora
cle
Go Li
ve a
t KL
DSO
to 5
7 da
ys
DPO
to 1
00 d
ays
Achieve Organic Revenue of $500M
EBIT Margins over 25%
Improve WC to 14%
Finish Rollout of Efficiency enablers - Oracle, Shared Services, and CI
Top Level Improvement
Priorities
2018Annual
Objectives
Targets to Improve
3 Year Breakthrough
Objectives
2018 PSG TTI’s
25
SGD Process: Step 5
X1
2 4
3
5
Step 5: WHO?Resource Deployment
Identify key cross-functional resources, align
and assign by priorityimpact to the business.
26
Who?OPW Fluid Transfer Group Top Level "X" Matrix 2008
� Improvement Priority 6 � C �
� Improvement Priority 5 � C � � � � � � � �� Improvement Priority 4 � C � � � � � � � � � � �
� Improvement Priority 3 � C � � � � � � � � � �
� Improvement Priority 2 � C � � � � � � �
� Improvement Priority 1 � C � � � � � �
Ann
ual O
bjec
tive
4A
nnua
l Obj
ectiv
e 3
Ann
ual O
bjec
tive
2A
nnua
l Obj
ectiv
e 1
Targ
et to
Impr
ove
1Ta
rget
to Im
prov
e 2
Targ
et to
Impr
ove
3Ta
rget
to Im
prov
e 4
Targ
et to
Impr
ove
5Ta
rget
to Im
prov
e 6
Civ
acon
Kna
ppco
(Pre
side
nt)
Engi
neer
ed S
yste
ms
(Pre
side
nt)
Mid
land
(Pre
side
nt)
Sure
Sea
l (G
M)
OPW
FTG
Eur
ope
(MD
)O
PW C
hina
(MD
)O
PW In
dia
(MD
)O
PW B
razi
l (M
D)
Etha
nol /
Bio
fuel
s M
anag
erG
loba
l Sou
rcin
g M
anag
erLe
an E
nter
pris
e M
anag
er
� Breakthrough Objective 1� Breakthrough Objective 2
� � Breakthrough Objective 3
Top Level Improvement
Priorities
2008 Annual Objectives
Targets to Improve
3 Year Financial Breakthrough
Objectives
Step 3: HOW?Which key processes?
Step 2: HOW FAR?This Year?
Step 4: HOW MUCH & WHEN?Measures?
Step 5: WHO?Resource DeploymentStep 1: WHAT?
Financial Breakthrough Thinking
Identify the primary (lead) and secondary resources that will have the greatest influence or ability to impact the Improvement Priority & Target to
Improve.
27
Identify Key Resources To Deploy Priorities
There should be one clear leader assigned to each Improvement Priority.
Leader and support resources should be: Appropriate
AdequateAvailable (made, if req’d)Accountable
The Largest Or Most Available Resources Won’t Always Have The Greatest Impact On Achieving Your Companies’ Most Important
Strategic Initiatives…Select & Assign Accordingly.
28
Resource Deployment Checklist
Is the leader the most appropriate in terms of ability to impact implementation of this priority?
Can the leader be available to deploy this priority? Are the support resources the most appropriate, are they adequate
and can they be available for this priority? Is accountability clear to assigned resources? Do leader and support resources have clear access/visibility to TTI
measure and impact on pertinent Annual Objective?
29
2018 TLIP Owners
Deliver "one PSG backoffice"
+1 Turn Inventory Initiative
Accelerate Global Sourcing
Expand Diaphragm Sales Channels
Globalize Gear and Screw Sales
Impl
emen
t SGD
- DB
S - C
I - T
alen
t Rev
iew
Wor
king
Cap
ital t
o 15
%
Impr
ove
EBIT
Mar
gins
to 2
2.5%
Achi
eve
Reve
nue
of $
425M
Glob
al G
ear S
ales
of $
4.5M
Glob
al S
crew
Sal
es o
f $6.
5M
Sale
s thr
ough
Cat
alog
s and
ISC
of $
1.2M
Gran
d Ra
pids
Pro
duct
ivity
Sav
ings
of $
2.5M
BVC
Spen
d >
23%
+1 P
SG In
vent
ory
Turn
to 6
.0
Ora
cle
Go Li
ve a
t KL
DSO
to 5
7 da
ys
DPO
to 1
00 d
ays
Karl
Busc
her,
Pres
iden
t
Ryan
Del
ack,
CFO
Heat
her G
raha
m, V
P HR
Gero
Von
Der
Wen
se, V
P Ro
tatin
g Eq
uipm
ent B
U
Tim
Xio
ng, D
irect
or G
loba
l Sup
ply
Chai
nPa
ul T
wad
dell,
VP
Diap
hrag
m B
U
Achieve Organic Revenue of $500M
EBIT Margins over 25%
Improve WC to 14%
Finish Rollout of Efficiency enablers - Oracle, Shared Services, and CI
Top Level Improvement
Priorities
2018Annual
Objectives
Targets to Improve
3 Year Breakthrough
Objectives
30
The Completed MatrixOPW Fluid Transfer Group Top Level "X" Matrix 2008
� Improvement Priority 6 � C �
� Improvement Priority 5 � C � � � � � � � �� Improvement Priority 4 � C � � � � � � � � � � �
� Improvement Priority 3 � C � � � � � � � � � �
� Improvement Priority 2 � C � � � � � � �
� Improvement Priority 1 � C � � � � � �
Ann
ual O
bjec
tive
4A
nnua
l Obj
ectiv
e 3
Ann
ual O
bjec
tive
2A
nnua
l Obj
ectiv
e 1
Targ
et to
Impr
ove
1Ta
rget
to Im
prov
e 2
Targ
et to
Impr
ove
3Ta
rget
to Im
prov
e 4
Targ
et to
Impr
ove
5Ta
rget
to Im
prov
e 6
Civ
acon
Kna
ppco
(Pre
side
nt)
Engi
neer
ed S
yste
ms
(Pre
side
nt)
Mid
land
(Pre
side
nt)
Sure
Sea
l (G
M)
OPW
FTG
Eur
ope
(MD
)O
PW C
hina
(MD
)O
PW In
dia
(MD
)O
PW B
razi
l (M
D)
Etha
nol /
Bio
fuel
s M
anag
erG
loba
l Sou
rcin
g M
anag
erLe
an E
nter
pris
e M
anag
er
� Breakthrough Objective 1� Breakthrough Objective 2
� � Breakthrough Objective 3
Top Level Improvement
Priorities
2008 Annual Objectives
Targets to Improve
3 Year Financial Breakthrough
Objectives
Step 3: HOW?Which key processes?
Step 2: HOW FAR?This Year?
Step 1: WHAT?Financial Breakthrough Thinking
Step 4: HOW MUCH & WHEN?Measures?
Step 5: WHO?Resource Deployment
Benefit: You have begun to lead the organization with
stretch levels of performance
...a complete picture of the company’s bridgefrom Strategy through
Implementation on one sheet of paper!
Benefit: The right things beingmeasured, are the right thingsgetting done.
Benefit: Your likelihood of moving the “right” performanceneedles has just increased exponentially.
Benefit: By ensuring your 1 year objectives are linkedTo your 3-5 year Strategy, you have separated yourself from 90% of other firms.
Benefit: The right resources, working on the right things.
The completed matrix...
31
2018 Completed PSG X-Matrix
Deliver "one PSG backoffice"
+1 Turn Inventory Initiative
Accelerate Global Sourcing
Expand Diaphragm Sales Channels
Globalize Gear and Screw Sales
Impl
emen
t SGD
- DB
S - C
I - T
alen
t Rev
iew
Wor
king
Cap
ital t
o 15
%
Impr
ove
EBIT
Mar
gins
to 2
2.5%
Achi
eve
Reve
nue
of $
425M
Glob
al G
ear S
ales
of $
4.5M
Glob
al S
crew
Sal
es o
f $6.
5M
Sale
s thr
ough
Cat
alog
s and
ISC
of $
1.2M
Gran
d Ra
pids
Pro
duct
ivity
Sav
ings
of $
2.5M
BVC
Spen
d >
23%
+1 P
SG In
vent
ory
Turn
to 6
.0
Ora
cle
Go Li
ve a
t KL
DSO
to 5
7 da
ys
DPO
to 1
00 d
ays
Karl
Busc
her,
Pres
iden
t
Ryan
Del
ack,
CFO
Heat
her G
raha
m, V
P HR
Gero
Von
Der
Wen
se, V
P Ro
tatin
g Eq
uipm
ent B
U
Tim
Xio
ng, D
irect
or G
loba
l Sup
ply
Chai
nPa
ul T
wad
dell,
VP
Diap
hrag
m B
U
Achieve Organic Revenue of $500M
EBIT Margins over 25%
Improve WC to 14%
Finish Rollout of Efficiency enablers - Oracle, Shared Services, and CI
Top Level Improvement
Priorities
2018Annual
Objectives
Targets to Improve
3 Year Breakthrough
Objectives
32
What the Strategy Deployment Process Will Mean To You?
How Should You Spend Your Time?
Breakthrough
Kaizen
DailyManagement
Staff Level
MiddleManagement
Supervisor
Hourly
35
2018 PSG Top Level “X Matrix”
Deliver "one PSG backoffice"
+1 Turn Inventory Initiative
Accelerate Global Sourcing
Expand Diaphragm Sales Channels
Globalize Gear and Screw Sales
Impl
emen
t SGD
- DB
S - C
I - T
alen
t Rev
iew
Wor
king
Cap
ital t
o 15
%
Impr
ove
EBIT
Mar
gins
to 2
2.5%
Achi
eve
Reve
nue
of $
425M
Glob
al G
ear S
ales
of $
4.5M
Glob
al S
crew
Sal
es o
f $6.
5M
Sale
s thr
ough
Cat
alog
s and
ISC
of $
1.2M
Gran
d Ra
pids
Pro
duct
ivity
Sav
ings
of $
2.5M
BVC
Spen
d >
23%
+1 P
SG In
vent
ory
Turn
to 6
.0
Ora
cle
Go Li
ve a
t KL
DSO
to 5
7 da
ys
DPO
to 1
00 d
ays
Karl
Busc
her,
Pres
iden
t
Ryan
Del
ack,
CFO
Heat
her G
raha
m, V
P HR
Gero
Von
Der
Wen
se, V
P Ro
tatin
g Eq
uipm
ent B
U
Tim
Xio
ng, D
irect
or G
loba
l Sup
ply
Chai
nPa
ul T
wad
dell,
VP
Diap
hrag
m B
U
Achieve Organic Revenue of $500M
EBIT Margins over 25%
Improve WC to 14%
Finish Rollout of Efficiency enablers - Oracle, Shared Services, and CI
Top Level Improvement
Priorities
2018Annual
Objectives
Targets to Improve
3 Year Breakthrough
Objectives
36
2nd Level X Matrix – Define Where NeededOPW Fluid Transfer Group Top Level "X" Matrix 2008
CCCCCC
Breakthrough Objective 1Breakthrough Objective 2Breakthrough Objective 3Breakthrough Objective 4
Top Level Improvement
Priorities
2008 Annual Objectives
Targets to Improve
3 Year Financial Breakthrough
Objectives
IDENTIFY KEY DRIVERPROCESSES at THIS level.
HOW?Which Key Processes?CASCADE FROM TOP
HOW MUCH & WHEN?Measures? WHO?
Resource Deployment(NAMES)
HOW FAR?This Year?
CASCADE FROM TOP LEVEL
Follow same process of linking as on Top Level
2nd LevelImprovement
Priorities
AnnualObjectives
2nd Level “X” Matrix
37
2nd Level Improvement Priorities - Examples
GROWTH
OP
ROI
EBIT
CASH FLOW
TOP LEVEL 2ND LEVEL• Create Key Customer Conversion
Process• Develop Promotion and Pitch New
Valve to ABC
• Launch Productivity Improvementsvia Standard Work
• Perform 1 pc Flow Kaizen Plan inPumps
• Develop and Implement Mfg Rationalization Plan
• Perform Regional Total Cost ofMFG Study and Recommendation
• Dev & Implement ESG&A CostReduction & Control Plan
• Dev & Exe TPI Kaizen Roadmap inCommercial & Admin Functions
• Launch “War on WC” Process • Implement New Net 60 PaymentTerms Policy
38
2nd Level Improvement Priority Checklist
Does it lead to creation of a sustainable process? Does it lead to creation of a results-oriented process? Does it meet current or emerging customer needs? Is it easy to communicate? (If not simplify/clarify) Does it demonstrate a simple flow of logic? Is it measurable, but not a measure itself? Is it a key driver of the higher level Improvement Priority? Does it get cascaded to a lower level matrix, or does it go
directly to an action plan?
39
Creating Action Plans
PrimaryResource as
Indicated on“X” MatrixImprovement Priority
from “X” Matrix
Detailed Action Planand Timing
Use these columns forQuantifying/tracking
Impact (as appropriate)
An Action Plan Should be Created for EveryImprovement Priority at the Point of Impact
40
Action Plans are owned by Team Leader Action Plans are developed by the TEAM!! Should be circulated to people off the team for reality
checking, feedback on clarity, feedback on granularity! Should be approved by company President! Should be “the playbook” on how to get the goal done! Should take some time to complete…….
Creating Action Plans
42
TTI “Bowling Chart”
Targets To Improve Should Be Listed In Order Of PriorityOn the Bowling Chart From the “X” Matrix.
OPW Fluid Transfer Group Top Level "X" Matrix 2008
CCCCCC
Breakthrough Objective 1Breakthrough Objective 2Breakthrough Objective 3Breakthrough Objective 4
Top Level Improvement
Priorities
2008 Annual Objectives
Targets to Improve
3 Year Financial Breakthrough
Objectives
Reduce New Prod. Dev. Cycle
Incr
ease
Mar
ket S
hare
to 6
0%
Dev
. Cyc
le to
120
Day
s by
12/
95
Top Level Bowling Chart
TARGET TO IMPROVE
List targets in 2003order of priority 2002 YTDaccording to top ACT JOP ACT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
<Target 1> Plan
Act
<Target 2> Plan
Act
<Target 3> Plan
Act
<Target 4> Plan
Act
<Target 5> Plan
Act
<Target 6> Plan
Act
Breakdown AnnualTarget to Improve intoMonthly increments.
TOP LEVEL MATRIXTOP LEVEL BOWLING CHART
43
Measuring Targets to Improve - (TTIs)
Top Level Bowling Chart
TARGET TO IMPROVE
List targets in 2003order of priority 2002 YTDaccording to top ACT JOP ACT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
<Target 1> Plan
Act
<Target 2> Plan
Act
<Target 3> Plan
Act
<Target 4> Plan
Act
<Target 5> Plan
Act
<Target 6> Plan
Act
BOWLING CHART
TOP LEVELOPW Fluid Transfer Group Top Level "X" Matrix 2008
CCCCCC
Breakthrough Objective 1Breakthrough Objective 2Breakthrough Objective 3Breakthrough Objective 4
Top Level Improvement
Priorities
2008 Annual Objectives
Targets to Improve
3 Year Financial Breakthrough
Objectives
There is a Bowling Chart for Each “X” Matrix.
Action Plan
44
Action Plans Drive The Rate Of ImprovementTop Level Bowling Chart
TARGET TO IMPROVE
List targets in 2003order of priority 2002 YTDaccording to top ACT JOP ACT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
<Target 1> Plan
Act
<Target 2> Plan
Act
<Target 3> Plan
Act
<Target 4> Plan
Act
<Target 5> Plan
Act
<Target 6> Plan
Act
ACTION PLAN
45
Bowling Chart and Action Plan Review
Point of ImpactAction Plan
Whether You Are Hitting Your TTI Plan orNot, You Should Review Your Action Plan
Script A:It’s On Track,It’ll Stay On Track,Any Questions?
Script B:It’s “X” Weeks Behind,The Cause is “Y,”The Impact is “Z,”Here’s How and When We’ll Catch-upAny Questions?
46
Countermeasures
Perform “5 Whys”to get to root cause
for miss.
Focus on the key elements of youraction plan or what are you
changing on your action plan sinceit may not be working.
Countermeasures Must Be In Place EveryTime A Target to Improve Is Not Met.
Point of ImpactAction PlanJ F M A M J J A S O N D
PlanActual
Target to Improve
47
Countermeasure Sheet
PlanActual
Target to Improve
Problem Statement:
Root cause problem statement.
What Who When
WHAT will be done? By WHO? By WHEN?
Without All Three, It’s Not a Countermeasure!
Countermeasure SheetCompanyDate of Review
02468
10
1 2 3 4 5 6
Causes
Pareto
49
Point of Impact Summary
Create an Action Plan for every Improvement Priority at the Point Of Impact.– Without Action Plans, There Is No Goal Deployment
Create a Bowling Chart for each “X” Matrix
Monthly review: On-Track or Behind
If behind, must have a Counter-Measure
50
Top Management’s Role in Monthly Review
Be diligent and consistent. Conduct lively, interactive sessions that test people’s
understanding of the situation. Press for fact-based data. “Drill” down to root cause, point of impact. Evaluate effectiveness of projects & Action Plans. Evaluate effectiveness of the overall improvement process
(are results sustainable?) Decide when to take action & what type of action to take.
51
Point of Impact Owners Roles in SGD…Between Reviews
Plan your Work. (Action Plan) Work your Plan. Daily. Find a way to collect TTI data. Daily/Weekly. Find a way to collect root cause problem solving data.
Daily, at the source. (Over-) communicate, with your collaborators. Get all the help you need to win. “Live” the process.
52
I Value DisciplineAnalysis
• Product Leadership
• Customer Intimacy
• Operational Excellence
III OperationalExcellence
• Lean / Kaizen– Continuous
Improvement– Achievement of
customer metrics
• Six Sigma– Continuous
Improvement– Quest for perfect quality– Achievement of
customer metrics
• Personnel Development
II Growth Strategy
• Concentration– selling more of current
products into current markets
• Market Development– selling more of current
products into new markets
• Product Development– Developing new
products for current markets
• Other
Questions?
OPW Fluid Transfer Group Top Level "X" Matrix 2008
CCCCCC
Breakthrough Objective 1Breakthrough Objective 2Breakthrough Objective 3Breakthrough Objective 4
Top Level Improvement
Priorities
2008 Annual Objectives
Targets to Improve
3 Year Financial Breakthrough
Objectives
<Name of Company>Goal Deployment KPI Bowling Chart
2002 YTDKPI JOP ACT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT
SAFETY Plan Act
QUALITY Plan Act Plan Act Plan
ActDELIVERY
PlanAct
PlanActPlanActPlanAct
COST Plan
Act Plan
ActPlanAct
GROWTHPlanAct
PlanAct