Strategy Deployment is a process for effectively deploying high-level organisational goals into measurable objectives through all levels of an organisation. It seeks to eliminate the waste that comes from inconsistent direction and poor communication. In essence, it strives to get every employee pulling in the same direction and at the same time. This streamline of information is a very important part of defining the purpose of a Lean Organisation.
At LBSPartners we have designed our 7 Phase Strategy Deployment Model to assist executives and senior management align the resources at their disposal with the strategic objectives of the organisation.
7 Phase Strategy Deployment Model (Hoshin Planning)
1. Setting Direction
Create a Vision of the desired organisation at a future point. Use PESTLE and SWOT analysis to better understand the forces both internally and externally that will affect the organisation in the future.
2. Three to Five Year Strategy
Bring the vision to life by agreeing the key metrics and how they would look in three to five years’ time compared to the present. These metrics will include: Revenue, Profitability, Costs, Customer Reach, Production Quality and Customer KPIs.
3. Preparing the X Matrix
The X Matrix links the vision, strategic and annual objectives together. The output is a list of actionable improvements that are reviewed and modified as the organisation progresses.
The X Matrix plan is communicated to other levels of the organisation. Each level indicates acceptance by going through a process known as “catchballing”. Each department can prepare its own Hoshin Plan with appropriate KPIs.
5. Management Process
Management agree to track performance including the agreed KPIs as per the vision statement. Management coaching as part of the Strategic Deployment transforms the culture of an organisation.
6. Review Process
The key to successful Strategic Deployment is the level of governance applied. Departmental monthly reviews should take place along with quarterly corporate meetings to ensure deployment is being tracked successfully.
7. Annual Review/Diagnosis
Annual review provides opportunity for “lessons learned” to feed into the following year. This allows for better planning and should be used as an opportunity to debate changes to the plan and the resources necessary to deliver it.