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Make strategy happen with Hoshin Kanri and Toyota Kata Agile Australia

Lean and Agile software development can help your organisation deliver early and often, but this is not sufficient. Without clear and transparent alignment on a strategy, the organisation might still just end up keeping itself busy and not achieving the desired results.

Making your strategy happen involves two major, symbiotic components: strategy alignment and strategy execution.

Aligning on the right strategy can be a challenge in today’s complex world. Hoshin Kanri is an approach to meeting this challenge by drawing for the collective brain trust in your organisation.

Organisations also need to become laboratories: constantly running experiments, generating learning, and applying that learning to continually progress towards their strategy. In this session, you will learn how to create this symbiosis of strategy alignment and strategy execution using Hoshin Kanri and Toyota Kata as one system.

Make strategy happen with Hoshin Kanri and Toyota Kata Agile Australia

  1. 1. Image courtesy of the Earth Science and Remote Sensing Unit, NASA Johnson Space Center Mission:AS11 Roll:44 Frame:6548 Composite Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  2. 2. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  3. 3. Image courtesy of the Earth Science and Remote Sensing Unit, NASA Johnson Space Center Mission:AS11 Roll:44 Frame:6548 Composite Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  4. 4. Agile Coach Flow Sensei The Plumber Toyota Kata Geek International Speaker Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  5. 5. I’m a huge LEGO fan! DISCLAIMER LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  6. 6. Three parts of strategy execution Stroke of the Pen Whirlwind Behavior change Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  7. 7. Three parts of strategy execution Stroke of the Pen Controllable actions, e.g. Expand staff Invest in new data center Enter new markets Invest in new support systems Change of vendor Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  8. 8. Three parts of strategy execution Whirlwind Every day operational work, e.g. Incident handling Road map delivery Solve customer support tickets Month end financial reporting Staff meetings Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  9. 9. Three parts of strategy execution Behavior change Behavioural change to achieve our strategy, e.g. Increase customer satisfaction Increase average revenue per game Improve quality Reduce staff turnover Reduce lead time Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  10. 10. Daily Work Working with the Challenge Whirlwind Behavioral Change, e.g. ▪ Increase customer satisfaction ▪ Increase average revenue per game ▪ Improve quality ▪ Reduce staff turnover ▪ Reduce lead time Every day operational work, e.g. ▪ Incident handling ▪ Road map delivery ▪ Solve customer support tickets ▪ Month end financial reporting ▪ Salary review ▪ Staff meetings
  11. 11. “Culture eats strategy for breakfast” – Peter Drucker Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  12. 12. What eats culture for breakfast? Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  13. 13. Organization wide Behaviors! Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  14. 14. Hypothesis driven Alignment Daily habit Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  15. 15. Hypothesis driven Systematically Experiment to learn what means generates what results Test and verify, don’t assume Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  16. 16. Hypothesis Prediction Experiment Observation Learning Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  17. 17. Values Principles Means Results VPMR Model Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  18. 18. Focus your attention on the means, not the results Way of working and people’s behaviors Outcomes Means (leading) Results (lagging) Our main attention Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  19. 19. Leading and Lagging measures Influencable Predictive
  20. 20. Laggging measures Leading measures
  21. 21. Hypothesis Means -> Result Doing M will give R Do M Focus on Leading measurements Observe Leading & Lagging measurements Learning Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  22. 22. experiment Verb /ɪkˈsper.ɪ.ment/ to try something in order to discover what it is like or find out more about it. What is an Experiment? Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  23. 23. experiment Verb /ɪkˈsper.ɪ.ment/ to try something in order to discover what it is like or find out more about it. What is an Experiment? Good enough for now, safe enough to try! Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  24. 24. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  25. 25. Puff Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  26. 26. Oh, I did NOT expect that! Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  27. 27. The sound of learning Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  28. 28. #fail Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  29. 29. #fail First Attempt In Learning Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  30. 30. Expect at least 50% of the experiments should not give the expected result This is when we REALLY learn! Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  31. 31. Hypothesis driven Alignment Daily habit Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  32. 32. The Spice girls question… Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  33. 33. Tell me what you want what you really, really want.. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  34. 34. Hoshin Kanri (Strategy Deployment) Hoshin Kanri means ‘compass management’ and serves to align the entire organization’s resources and actions with the strategic challenge. A strategic planning process whereby strategic challenges are communicated and translated into action Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  35. 35. The Importance of Focus Number of Challenges Challenges achieved 1-3 1-3 4-10 1-2 11-20 0 Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  36. 36. Aligned on the strategic Challenge Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  37. 37. Actions that supports the Challenge Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  38. 38. Challenges are set together in dialog Leaders Challenge with WHAT & WHY Team Responds with HOW & FEEDBACK Leaders can veto, but not dictate Leaders can veto if the team’s Challenge do not support the main Challenge But the leaders can’t dictate the teams Challenge WHAT & WHY WHAT & WHY HOW & FEEDBACK HOW & FEEDBACK Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  39. 39. Challenge with WHAT & WHY, not HOW Challenge with WHAT & WHY Intent, Boundaries… Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  40. 40. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  41. 41. Respond with HOW & FEEDBACK Describe HOW & give FEEDBACK on Challenge Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  42. 42. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  43. 43. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  44. 44. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com What am I not understanding? Is the Challenge unclear?
  45. 45. Iterate to align Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com Ask clarifying questions Adjust the challenge
  46. 46. Hypothesis WHAT & WHY Prediction of response Give the Challenge Listen to the HOW & FEEDBACK Learning Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  47. 47. Hypothesis driven Alignment Daily habit Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  48. 48. Wax on, wax off Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  49. 49. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  50. 50. Create ”muscle memory” for continuous improvements Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  51. 51. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  52. 52. Planning Phase Understand Direction Grasp Current Condition Executing Phase Set the Next Target Condition Experiment toward Target Condition Repeat Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  53. 53. Planning Phase Understand Direction Grasp Current Condition Executing Phase Set the Next Target Condition Experiment toward Target Condition Repeat Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com It's a scientific routine for achieving tough Challenges
  54. 54. Vision Current Condition Target Condition Challenge Target Condition Target Condition Target Condition Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  55. 55. Vision: To boldly go where no brick has been before! Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  56. 56. Current Condition
  57. 57. Challenge: …We choose to go to the moon in this decade… Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  58. 58. Target Condition Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  59. 59. Target Condition Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  60. 60. Target Condition Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  61. 61. Target Condition Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  62. 62. Image courtesy of the Earth Science and Remote Sensing Unit, NASA Johnson Space Center Mission:AS11 Roll:44 Frame:6548 Target Condition Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  63. 63. Challenge Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com Current Condition
  64. 64. Current Condition Challenge Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  65. 65. Focus process Continuous Integration process Challenge RED is really RED Target Condition Achieve by: in one month 40% RED that should have been GREEN Actual Condition 55% RED that should have been GREEN PDCA Cycle Records Obstacle parking lot 0% 20% 40% 60% 80% 100% Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  66. 66. Target Condition Current Condition Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com Experiment toward Target Condition
  67. 67. Target Condition Current Condition Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com Experiment toward Target Condition
  68. 68. Target Condition Current Condition Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com Experiment toward Target Condition
  69. 69. Target Condition Current Condition Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com Experiment toward Target Condition
  70. 70. Target Condition Current Condition Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com Experiment toward Target Condition
  71. 71. Target Condition Current Condition Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com Experiment toward Target Condition
  72. 72. Target Condition Current Condition Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com Experiment toward Target Condition
  73. 73. Target Condition Current Condition Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com Experiment toward Target Condition
  74. 74. Target Condition Current Condition Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com Experiment toward Target Condition
  75. 75. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  76. 76. Leaders coaching the learners Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  77. 77. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  78. 78. Challenge with WHAT & WHY, not HOW Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  79. 79. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  80. 80. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  81. 81. Leaders can veto, but not dictate Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  82. 82. Team responds with HOW & FEEDBACK Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  83. 83. Motivation Purpose MasterAutonomy Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  84. 84. True Lean/Agile Leadership style Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  85. 85. Hypothesis driven Alignment with Hoshin Kanri Daily habit Toyota Kata
  86. 86. Think of every decision as a Hypothesis that needs to be tested Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  87. 87. Create alignment on the Spice Girls question through dialog Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  88. 88. Establish daily habits to execute in the midst of the Whirlwind Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  89. 89. Image courtesy of the Earth Science and Remote Sensing Unit, NASA Johnson Space Center Mission:AS11 Roll:44 Frame:6548 Composite Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  90. 90. Q & AHåkan Forss Mail: hakan_forss@hotmail.com Twitter: @hakanforss Blog: http://hakanforss.wordpress.com Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

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