Policy Deployment - Sigma Process Consulting

1 Policy DeploymentHoshin KanriPolicy Theory Into ActionStrategy Deployment 1 Heinrich MoormannWhat is Policy Deployment ?Hoshin Kanri was developed in the 1950s in japan in order to drive down strategic key entity goals systematicallyand sustainableinto operationsHo = directionPolicy Deployment or Hoshin KanriHo = directionShin = needleKanri = Management and controlHoshin Kanri = management and control of the organization's direction needle (compass) or Kanri provides us with standardized tools for step-by-step entity wide strategic planning, an inherited continuous improvement Process and the control of MoormannPage 2 Strategy Deployment Kanria companywide planning and controlling systemAll employees and managers are involvedStarting with the corporate vision key long term objectives are deduced (Breakthrough s)

2 These Breakthrough objectives are cascaded systematically Policy Deployment or Hoshin KanriThese Breakthrough objectives are cascaded systematically and stringent to different levelsAt the end every employee or manager has his own strategies and objectives deduced from the top employees are aligned to the corporate vision and the same Deployment MoormannPage 3 Why use Hoshin Kanri?The goal is to build a sustainablecompetitive advantagePolicy Deployment or Hoshin KanriStrategy Deployment MoormannPage 4 BasisKaizen+KVPP olicy DeploymentBasisBasisKaizen+KVPP olicy DeploymentBasisKaizen+KVPP olicy DeploymentBasisYear 0 Year 1 Year 2 Year 3 Year 4 Breakthrough Objectives Reached.

3 Once Breakthroughis achieved the Process is standardized and becomes daily managementThe Hoshin Kanri ProcessFrom Mission to ActionHeinrich MoormannPage 5 Strategy Deployment Hoshin Kanri core The X MatrixThe X-Matrix is the helmstand for the Hoshin Kanri System: In 6 h position Financial Breakthrough objectives are defined for the next 3 years In 9 h position the annual objectives are developed and establishedStrategy Deployment 6 Heinrich Moormannand established In 12 h position top level strategic priorities and action are created and set In order to measure and control the actions Targets to Improve (TTI s) are created in 3 h position.

4 Furthermore responsible employees for the actions are assignedCascading the objectivesThe objectives are cascaded from top to bottom and back during the recon-ciliation the end there are The reconciliation processAt the end there are action plans for every Deployment MoormannPage 7 The Point Of ImpactAction PlansFrom strategic priorities to actionStrategic Priority from the X-MatrixPrimary Resource from the X-Matrix TTI from the X-MatrixCritical DependenciesStrategy Deployment MoormannPage 8 Detailed Action Plan Steps Detailed TimingColumns to quantify and track impactTTI from the X-MatrixAn Action Plan must be created for everystrategic priority at the point of impactThe monthly review processThe results are controlled from the management on a monthly baseThe review Process is also cascaded and drives down to all necessary levelsCheck action plans and measure TTI snecessary levelsIf objectives are not reached the responsible person has to analyze the root causes and define countermeasures in order to get back on track Strategy Deployment MoormannPage 9 Monthly Review Process3 in 1 chartsMetrics Tracking.

5 Pareto and CountermeasuresA cause is something you want to remove A Why The measurements Heinrich MoormannPage 10 The action must relate directly to the causes in the ParetoThe status is a choice of On Track , Caution , or Problem By name, who s the owner of this action?The measurements which describes your processStrategy Deployment