The document summarizes a presentation on demystifying the Hoshin Kanri or policy deployment X-matrix. It discusses how to properly complete an X-matrix including filling out the main sections of initiatives/projects, targets/metrics, focus strategies, and key players/interactions. It provides an example of a high-level X-matrix and explains how the sections are related and how drilling down into lower level X-matrices can help implement strategies and tactics.

1. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Hoshin Promotion
Demystifying the X-Matrix
Session M10
Monday, May 16th, 2011 1:30 – 2:30 pm
Presented by
Anthony Manos
Catalyst
Profero, Inc.
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Outcomes & Agenda
Outcomes
• How to properly complete an X-matrix
• The relationship between the main sections of an X-matrix
• How an X-matrix fits in with Hoshin Planning
Agenda
• Different styles of matrices
• How to fill out the main sections
• The interactions of the main sections
• Multiple interactions to complete
• Optional information to display
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2. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Hoshin Kanri Background
What is Hoshin Kanri?
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What is Hoshin Kanri?
• ho = direction • Used in Japan since
• shin = needle 1960s
• Hoshin = “compass”, a • Sets the direction for long-
plan, policy, aim term prosperity
• kan = control, channeling • Allows all ships to arrive
at the same destination
• ri = logic, principle,
reason
• Kanri = management,
administration
• a.k.a Policy Deployment,
Hoshin
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3. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Hoshin Process – Review & Scan
Review Environmental Scan
• Honest reflection • Economic
• Review previous • Socio-cultural
year’s plan • Technological
• What worked – what • Political/Legal
didn’t work? • Macro-industry
• Capture lessons • Resources
learned
• Market
• Create a “Stop doing”
list • Competitors
• Suppliers
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Hoshin Process – SWOT & VVM
SWOT Analysis VVM
• Internal Strengths & • Values
Weaknesses • Vision
(Baldrige) • Mission
• External Opportunities
& Threats (Porter’s
Five Forces)
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4. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Hoshin Process – Selecting Top Ideas
• Brainstorming
• Affinity
• Gap Analysis
• Drivers, Means, & Outcomes
• Focus
• Selecting Top Ideas
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Brainstorming Question
• Remember to think of all your prep work for
this next part
• As a starting point, think of how you might
answer this question
It is five years in the future, we are
wildly successful. What do we look like
and how did we get here?
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5. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Affinity Diagram
• As a team, organize and
group the like or
similar ideas
• Remove any
duplicates
• If needed,
consolidate
• Remove the (currently)
impossible
• Lastly, create names and
descriptions for the
headers
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Gap Analysis and Cause & Effect
• Use the Headings
from the Affinity
Diagram
• Determine the gap
between where you
are now and world-
class
• Determine Drivers,
Means and Outcomes
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6. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Gap Analysis
• Even though this is $100 Method
subjective and based on • Each team member is
the team members given ten dots (each dot is
present, it will give a worth $10)
good indication of • They can place their dots
where you are where ever they like
• $100 method or other • They can spread them out
ranking systems (n/3) or if they feel strongly on a
subject, they can place
• Look at the average
more there
and range
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Gap Analysis Example
World Class =10
Gap
None = Zero
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7. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Cause & Effect
• Ask:
– Does “A” cause “B”?
– Does “B” drive “A”?
– Neither or about the
same?
• Draw lines from one to
the other
• Determine Drivers,
Means and Outcomes -
Count the number of
ins and outs
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5 outs
Drivers-Means-Outcome 0 ins
2 outs
Driver 3 ins
• Count the number of “ins”
and “outs” for each
category
• All or almost all “outs” = Means
drivers
• All or almost all “ins” =
outcomes
• About equal “ins” and 0 outs
“outs” = means 5 ins
• Judgment and part
subjective
• Determine Drivers, Outcome
Means and Outcomes
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8. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Focus
Driver
• Using Gap Analysis and
Drivers-Means-Outcomes
helps us determine which Means
items to focus on
• Look at drivers and
gaps
• The team must achieve
consensus on the
top priorities
Outcome
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Select Top Ideas Agenda
• Many organizations try to • Types of
bite off more than they improvements
can chew by selecting • Think B.I.G.
too many projects and • Breakthrough items
therefore do not get the
• X-matrix
results that they were
expecting
• Think of the number of
major initiatives you have
undertaken in the past –
how many were done with
excellence?
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9. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Think BIG
• Think BIG - Boldly Important Goal
• This will dramatically move us ahead
• Not achieving this goal would render all other
efforts useless
“Make no little plans; they have no magic to
stir men's blood and probably will
themselves not be realized. Make big
plans; aim high in hope and work,
remembering that a noble, logical diagram
once recorded will not die.”
- Daniel Burnham (1846-1912)
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X-matrix
How to fill in the X-matrix
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10. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
X-matrix Overview
• The X-matrix is one of Main Tactical Improvement Initiatives or Projects
Profero Marketing and Sales
Conferences and Seminars
Team
the main things that helps
Profero NPD/Update Materials
Value Stream Mapping Basics & Beyond Book
5 Group Health Insurance
2 5S New Product Development (NPD) Program
set Hoshin planning apart
1 5S Marketing / Promotions / Sales
3 5S Website Redesign
4 5S Move
1 Exceeding Customer Expectations / Outstanding Service
3-5 Focus Strategic Goals for Planning Year (Short-term, 1-year)
Initiatives & Projects
Outstanding Staffing and Facilities Environment
Customer satisfaction ratings of 4.5 or higher
from other methods
Tree Diagram /
Increase 5S Supply Revenue to $250,000
Process Decision Program Chart
Measurement & Metrics (Balanced Scorecard)
Greater than 99% on-time delivery
Marketing / Promotions/ / Sales
100% moved into new location
100% "Go-live" with website
12 inventory turns per year
New Product Development
New Product Development
Management/Operations
5S Training for all staff
Metrics Correlation Matrix /
Outstanding Products
Delivery of Services
Training Preparation
Targets & Metrics
Fantastic Marketing
Driver-Means-Outcome
Customer Service
Focus Strategies
Balanced Score Card /
Order Fulfillment
Website / IT
Purchasing
Accounting
Strategy Maps
Gap Analysis /
Sales
• It is the interaction
between sections that will Review / Environmental Scan / SWOT /
Vision-Mission-Values / Brainstorm / Af finity
Strategic Initiatives
C
4
2
5
3
F
L
Parties or Departments
I
I
I
I
lead to better decisions
Increase 5S Supply Revenue
Make 5S Supply a great place to work Correlation Legend
Relationship Team
Very Strong Leader
Important Member
Breakthrough Strategies (Long-term, 3-5 years) Weak Participant
• There are many different
Balanced Scorecard
F Financial
C Customer
I Internal Processes
L Learning & Growth
styles of matrices
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Notes on X-matrix
• The X-matrix is usually not filled in all at
once
• It takes several iterations before it is set
• Top level and other level X-matrices have
different sections
• “Standardize then customize” – many
companies customize their version to
make sense for them
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11. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Anatomy of a High Level X-matrix
Initiatives & Projects
Targets & Metrics
Focus Strategies
Key Players
Strategic Initiatives
Very Strong
Strong
Weak
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High Level X-matrix Example
Initiative 6
Initiative 5
Initiative 4
Initiative 3
Initiative 2
Initiative 1
Department 1
Department 2
Department 3
Department 4
Department 5
Department 6
Key Players
Target 1
Target 2
Target 3
Target 4
Target 5
Target 6
Target 7
Target 8
Focus 4
Focus 3
Focus 2
Focus 1
Strategy 1
Strategy 2 Very Strong
Strategy 3 Strong
Weak
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12. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Exponential Growth
• Remember for each Example:
7,000
breakthrough item 6,300
5 Strategic Initiatives with
6,000
you add, you are 3 Focused strategies each and
4 Projects for each strategy
adding hundreds 5,000
7 categories of action items for
of tasks 4,000
each project
• Do you have the 15 action items for category
3,000
resources to 2,000
For each Strategic Initiative you
complete all these add, there can be over 1,200
1,000
projects? 420
additional Action Items!
5 15 60
0
• Example: 5 x 3 x 4 x 7
x 15 = 6,300 action
items!
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Example
• “Sanitized” version
• Don’t get lost in the details – your X-matrix
will be different!
• Think how this might work for you
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13. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Example - Overall View
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Long-term Initiatives
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14. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Short-term Initiatives
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Projects & Initiatives
• High level to start
• Don’t forget carry-over projects
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15. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Measures & Metrics
• Try for a Balanced
Scorecard approach
• Include Quality, Cost,
Delivery/Service
• Leading / Lagging /
Real-time
• Must make sense for
organization
• Dashboard
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Teams
• Use departments or
groups
• Typically not names of
individuals but can be
if needed
• Leader / (F/T) Member
/ (P/T) Participant
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16. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Interactions
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Example - Overall View
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17. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Other Information
• Additional helpful
information
• Vision/Mission
• Rankings
• Balanced Score
Card or Quality,
Cost, Delivery,
Safety, Morale
• Descriptions
• Standardize then
customize
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X-matrix Example
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18. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Drilling down
By Focus
By Department
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Playing Catch Ball
• Think of possible first level strategies that should
be worked on this (upcoming) year
• “Throw” these items to the appropriate
departments or groups
• Have them develop strategies or ideas for
implementation
• When they are ready, they can “throw” it back for
feedback
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19. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Drilling Down
• As you are developing the next tier strategies and
tactics you can create another X-matrix to fit
that item
• Update the X-matrix as you go
• Use brainstorming and create Tree
Diagrams, Value Stream Maps or
A3’s to connect top level strategies to first tier,
second tier and tactics
• The number of tiers depends on the
complexity of strategies and the size of the
organization
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Drill Down Methods
• There are many ways you can create lower
level X-matrices, find one that works for
you
• By Focus – create X-matrices for the
Major initiatives
• By Department – create X-matrices
based on department
• other
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20. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Comparison
By Focus By Department
• Allows the teams to • Allows the department
only complete x- to add their own
matrices for the major initiatives
initiatives • May make more
• Easily shows the sense for
cross-functional organizations based
initiatives on corporate structure
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2nd Tier X-matrix by Focus
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21. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
2nd Tier X-matrix by Department or Group
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2nd Level
• Rotate and drill down for a 2nd Level X-
matrix
• Put in additional information or specifics
about tactical implementation
• Fill in interactions, measures & metrics,
teams or groups
• 2nd Level items do not always require
another X-matrix
• A Tree Diagram, A3, or Project Plan may
suffice
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22. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
2nd Tier X-matrix “Rotation”
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2nd Level Example by Focus
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23. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Review
Outcomes
• How to properly complete an X-matrix
• The relationship between the main sections of an X-matrix
• How an X-matrix fits in with Hoshin Planning
Agenda
• Different styles of matrices
• How to fill out the main sections
• The interactions of the main sections
• Multiple interactions to complete
• Optional information to display
45
Conclusion
Wrap-up
Q&A
Evaluations
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24. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Q&A
• Questions
• Comments
• Evaluations
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Resources
“Hoshin Kanri” – “Hoshin Kanri for
Yoji Akoa, editor the Lean
Enterprise” –
Thomas Jackson
These titles and more available at www.5Ssupply.com
“Getting the Right Lean Policy
Things Done” – Deployment DVD -
Pascal Dennis GBMP
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25. ASQ World Conference on Quality & Improvement May 2011
Hoshin Promotion – Demystifying the X-matrix
Thank you
Hoshin Promotion
Demystifying the X-matrix
Session M10
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