1. Strategic Planning & Execution
using the X-Matrix
i th X M t i
Robert ‘QualityBob’ Mitchell
R b t ‘Q lit B b’ Mit h ll
MNASQ Professional Development Summit
Session W225
April 3, 2012

2. Planning Process Outcomes

3. MNASQ LRP Outcomes
• X-Matrix
– What Why
What,
• Projects A3
– Wh t Who, How, Wh
What, Wh H When
• Bowler Scorecard
– Execution effectiveness
• Management Reviews
– Weekly rhythm
– Plan-Do-Check-Adjust
j
– Root Cause Analysis

4. 2012-2013 MNASQ Strategic Plan
To be the community of
choice pro iding
providing
professional development
focused on
total customer experience

5. Project
A3

6. Bowler Scorecard

7. Hoshin Kanri (d fi iti ) The process
H hi K i (definition): Th
used to identify and address critical
business needs and d
b i d d develop th
l the
capability of employees, achieved by
aligning company resources at all l
li i t ll levels
l
and applying the PDCA cycle to
consistently achieve critical results.
i t tl hi iti l lt

8. Why Hoshin Kanri?
 Identifies the Vital Few
 Level loading of resources
 ‘Catch Ball’ communication process to
establish accountability
t bli h t bilit
 Business process that aligns short and long
term strategic objectives
 Rigor and discipline via PDCA (Target vs.
Actual,
Actual please explain etc )
explain..., etc.)
 Establishes a rhythm of periodic reviews

9. Origins
• Originated by Toyota (Toyota Production
System)
• Hoshin = a course, policy, plan, aim
• Kanri = administration management control
administration, management, control,
charge of, care of
• Hoshin Kanri = policy deployment with method
Hoshin-Kanri
“Ship in a storm going in the right direction”
• Makes it possible to get away from the status
quo and achieve breakthrough performance
improvement
p

10. Generic Strategic Planning Model
Corporate Charter
Key Environmental
Assumptions
Mission
Key Competitor
Assumptions
Vision
Organization Goals Critical Issues
Strategic Intent
Strategy Objectives Tactics/
Programs/
Projects
Resource Allocation

11. Execution Process
Operations
Playbook
Hoshin
H hi
Lean Six Sigma
Kanri
PDCA
Strategic Plan
&
Operational
Plans

12. Plan, Do, Check, Adjust (PDCA) Model
Grasp the Situation
Data Driven Discovery Process
• Where have we been? • Work the Plan
• Where are we going? • Engage and build the team
• Develop SMART Metrics
• Develop Action Plans
• Execute the • Periodic Monitoring
Countermeasures • Swarm the problems
• Adjust the Plan as needed • Determine Root cause
D t i R t
• Make the Changes • Develop
• Start Over!!! Countermeasures
We ALL become problem solvers

13. Long-Range Planning Model
1
Purpose
(Mission, Vision)
3 4
2
Desired Future Current Reality
(Practical Vision) (Environment)
Underlying
Contradictions
Creative Tension
5 Strategic Directions
Operational Plans 6

14. The North Star
Vision
Strategy
Strategy
Strategy
Strategy Strategy
Strategy

15. MNASQ - Previous Vision Statement
To be recognized as the preferred
source of quality concepts, technology
and tools for the benefit and value to
our members, our Society, our
communities and our profession
profession.

16. MNASQ - New Vision
To b th
T be the community of choice
it f h i
providing professional
development focused on
p
total customer experience

17. MNASQ Mission
• Foster personal and professional
relationships,
relationships connections and sense
of belonging.
• Equip our community with the skills,
competencies and knowledge that
impact the total customer experience.

18. Reaction
What is your visceral reaction to the
new MNASQ mission and vision?
i i d i i ?

19. Current State

20. Long-Range Planning Model
1
Purpose
(Mission, Vision)
4
3
2
Desired Future Current Reality
(Practical Vision) (Environment)
Underlying
Contradictions
Creative Tension
5
Strategic Directions
Operational Plans 6

21. MNASQ Current Reality
Mind Map
• ASQ’s largest Section; 2500+ members
• MN eastern ND & SD western WI
MN, SD,
• Volunteer member leaders

22. 2011 Forces of Change (Future of Quality)
1. Global Responsibility
2.
2 Consumer A
C Awareness
3. Globalization
4. Increasing Rate of Change
5. Workforce of the Future
6. An Aging Population
7. 21st Century Quality
8. Innovation
The full study is available at
http://asq.org/about-asq/how-we-do/futures-study.html

23. 7 21st Century Quality
• Cannot take quality for granted
• Quality is the competitive advantage
Then Next
Goal Prevention Perfection
Quality of Product Enterprise
Philosophy Processes Community
Sector Manufacturing Every
Waste
W t Tolerable
T l bl Abhorrent
Abh t
Focus Product/Service Experience
Methodology Control/ Change/
Improvement Transformation

24. Current Realities
Discussion:
• What is your current performance?
• Sales, Profits
• Portfolio management
• Customer loyalty
• Employee engagement
p y g g
• What issues or challenges are your
organizations facing today impacting
quality, innovation and growth?

25. Desired Future State

26. Long-Range Planning Model
1
Purpose
(Mission, Vision)
4
3
2
Desired Future Current Reality
(Practical Vision) (Environment)
Underlying
Contradictions
Creative Tension
5 Strategic Directions
Operational Plans 6

27. MNASQ Desired Future State
Brainstorm & Affinity Process

28. MNASQ Desired Future State (2 of 2)

29. Desired Future State (“True North”)
Discussion:
• Where does your organization want to be
in 3-5 years?
• What will it look, feel like?
• Cores Values, Principles
• Examples:
• $X sales in 2015 at a Y% OI minimum
• #1 or #2 solution provider in every market we serve
p y
• Expand into X new markets
• Engaged employees proud to be
a part of XYZ

30. Underlying Contradictions

31. Long-Range Planning Model
1
Purpose
(Mission, Vision)
4
3
2
Desired Future Current Reality
(Practical Vision) (Environment)
Underlying
Contradictions
Creative Tension
5 Strategic Directions
Operational Plans 6

32. Underlying Contradictions
• What is holding your organization back?
• What is blocking your progress?
• Barriers? Conflicts? Constraints?
• * Never a “Lack of...”
– Lack of money
– Lack of time
– Lack of people

33. MNASQ Underlying Contradictions
Communication Challenges Succession Planning not documented Under-utilized partnersip alliances
Do we have members with expertise in the new Steep learning curve for incoming Committee and Expand offerings to our members via
social networking tools? Board members
partnerships with other potential
Difficulty communing the WIIFM for members, No strategy or process documentation exists for professional organizations
nonmembers leader succession planning
We do not have a strategy, objectives, or
Tailor the communication to each segmented Individuals may lack support, time to commit to a process to identify and engage partners
market 3 year Board rotation.
We do not who the potential organizations
We had a lack of communication in 2010 due to Most leadership terms are just 1 year - difficult to
might be; limited contacts. What are their
BenchmarQ and website problems learn and contribute before rotating off
products?
Demonstrate the value of MNASQ alliance
The changing role of Quality in the world today How do we identify qualified potential committee
leaders and/or Officers? to partners' membership.
Enterprise memberships: Primary contact Little team building offered today by which to build
versus Individual member types relationships, trust
relationships trust. Limited visibility of Section by We lack a defined Volunteer engagement
Use VOC feedback to customize our Little visibility of current Board to the rank and file Business Leaders model
communications to each segment. members; lost opportunity to build rapport
Grow our presence and impact by Committee leaders must identify specific
connecting with business leaders via a needs and required skills to the Volunteer
Need faster response to issues, opportunities Fill existing vacancies CEO Roundtable structure Placement Coords.
Section leaders do not have contacts with Fill existing open positions on the
Need more frequent communciations
liocal business leaders or Quality Heads leadership team
Need more diverse communciations tools
Business Heads of Quality are not aware Identify specific skillsets desired, and time
Changing Face of Quality
of Section products, services, value commitment needed, for various volunteer
Most training today is classroom seting in No strategy to attract, recriuit, retain young
the Twin Cities metro area professionals
proposition. opportunities
Gain access to Enterprise-member Volunteers may need assistance from
No strategy exists today on what, how, where, Professionals in nontraditional markets do not
when to deliver training outside of the TC area associate themselves with Quality "primary contacts" Section
Need to identify a well-connected local Document the value proposition for
20% of section members live out-state
out state Define the target markets of younger generations business leader to sponsor Section volunteering
"Roundtable" efforts
Limited use of distance learning tools Don't lose focus on small businesses who Consider unemployed experts to help
Speakers not prepared to present on-line We are a volunteer professional organization probably lack the quality training Committees
resources of large companies
Speakers not skilled in use of new technology Revenue generated from membership dues
No out-state contacts/coordinators available Passionate members with limited availability to
volunteer
Part-time volunteers

34. Underlying Contradictions
Discussion:
• What are some contradictions in your
operations holding you back?

35. Long-Range Planning Model
1
Purpose
(Mission, Vision)
4
3
2
Desired Future Current Reality
(Practical Vision) (Environment)
Underlying
Contradictions
Creative Tension
5 Strategic Directions
Operational Plans 6

36. Strategic Directions
• Brainstorm how we can overcome the
Underlying Contradictions?
– More of, Less Of, Stay the Same
– Reverse brainstorming
– Interrelationship Diagram
– Pugh Concept

37. Hoshin kanri Strategy Deployment
From the Strategic Directions discussion:
– P i iti th vital f
Prioritize the it l few
• C&E Matrix
• Pairwise comparisons
– X-Matrix
• 3-5 Year Objectives
j
• Annual Objectives
• Strategic plans (Operational plans; Tactics)
• Targets to Improve (Key metrics)
T t t I (K ti )
– Develop, assign projects
• A3s

38. C&E Analysis
Matrix Scoring:
9 = High
3 = Medium
1 = Low

39. Paired Comparison (for C&E Weightings)
Alternative: Analytic Hierarchy Process (AHP) Methodology

40. X-Matrix
The Conference Board X-Matrix template

41. Long-term Objectives (“True North”)

42. 2012 MNASQ X-Matrix w Owners
To be the
community of choice
providing
professional development
focused on
total customer experience

43. Example: MNASQ Marketing Plan

44. Action Plan Template

45. Bowler Scorecard (Targets to Improve)

46. Management by Fact Tool…..
2010 Strategic Performance Dashboard
Priori Starting This
ty Deliverables and Measures Owner Point EOY Year: JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
A Plan 12.5 25.1 39.6 53.7 67.1 81.9 95.9 111.0 125.3 139.2 152.3 163.5
1
Item #1 B $0M A Actual 10.8 22.4 36.9 50.8 64.4 79.3
C Plan 12.6 25.5 36.1 55.5 61.4 74.9 98.1 113.3 127.8 141.8 155.0 166.3
2
Item #2 D $0M B Actual 13.7 26.6 40.9 53.9 65.9 80.5
E Plan 34.0 68.3 107.8 146.4 182.9 223.1 261.5 302.5 341.6 379.5 415.3 445.6
3
Item #3 F $0M C Actual 29.6 62.1 100.6 137.3 173.3 213.2
G Plan 60.7 121.4 182.1 242.8 298.0 364.2 424.9 485.6 546.3 607.0 667.7 728.4
4
Item #4 H $0M D Actual 52.6 107.1 174.0 236.0 297.0 365.0
5
Item #5
K
I
J $0M E
Plan
Actual
Plan
60.7
52.6
14.0
121.4
107.1
29.0
182.1
174.0
45.0
242.8
236.0
61.0
298.0
297.0
77.0
364.2
368.0
93.0
424.9 485.6 546.3 607.0 667.7 728.4
109.0 126.0 143.0 159.0 174.0 188.2
Root Cause & Corrective
6
7
Item #6
Item #7
M
N
L $0M
$0M G
F Actual
Plan
Actual
13.9
0.15
0.10
28.6
0.35
0.23
45.0
0.55
0.37
64.8
0.85
0.48
78.2
1.25
0.62
94.0
1.80
1.2
2.50 3.60 5.00 6.50 8.50 10.00 Action if Metric is “Off Target”
O Plan ##### ##### ##### ##### ##### ##### ##### ##### ##### ##### ##### #####
8
Item #8 P $0M H Actual 4.9
49 9.6
96 16.7
16 7 21.8
21 8 27.8
27 8
• Special Cause vs.
Q Plan 0 0 0 0 25 60 100 145 195 250 295 339
9
Item #9 R 0 I Actual 0 0 0 0 14 50
S Plan 1.8 3.5 5.6 7.3 9.1 11.0 12.7 14.5 16.3 19.1 22.0 24.9
10
Item #10 T A J Actual 2.1 4.3 6.9 9.2 11.5 13.0
11
Item #11
U
W
V C K
Plan
Actual
Plan
59.2%
54.4%
88.0%
59.1%
54.6%
89.0%
58.1%
55.4%
90.0%
57.9%
54.4%
92.0%
57.9%
55.1%
92.0%
57.4% 57.4% 57.2% 57.1% 56.9% 57.0% 57.4%
54.7%
92.0% 92.0% 92.0% 92.0% 92.0% 92.0% 92.0%
Common Cause
12
Item #12 Z B L Actual 90.7% 90.1% 90.7% 90.2% 89.6% 91.0%
Y Plan 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 36.0 40.0 44.0 48.0
13
Item #13 Z $0M M Actual 3.7 6.9 11.1 15.1 19.5 24.5
A Plan ##### ##### ##### ##### ##### ##### ##### ##### ##### ##### ##### #####
14
Item #14 B $0M N Actual 0.8 2.9 4.6 4.8 5.7 6.7
Management by Fact Template
Problem Statement:
“Reds” from Root-Cause
5 Why's:
Bowler to Pareto Analysis:
Proposed Response:
Mgmt by Fact Prioritization Counter Measures
and Root Cause and Activities
Who When Expected
Benefits/Impact
Target
Achieved?/Impact
Addressed
tool 1
2
3
4
5
46

48. Thank you
Robert H Mitchell
‘QualityBob’ www.linkedin.com/in/roberthmitchell
twitter.com/QualityBob
y
roberthmitchell@gmail.com www.facebook.com/pages/QualityBob
Quality Matters blog