7 Steps for Strategy Deployment
“If you don’t know where you are going, you will probably end up somewhere else”. Great quote by Lawrence J. Peter, which epitomises the importance of creating and managing a Business Strategy. The X Matrix, also known as Hoshin Kanri, provides a good process to develop and align Strategic Goals through to annual priorities, targets and owners. This blog outlines the 7 key steps within this process.
Step 1: Create a Vision
Consider, what is the Purpose of the Organisation? Why do we exist? What does the ideal future of the business look like? This step can take many creative revisions, starting with ideals and refining to key words and or phrases that define your ideal future state.
Step 2: Define Your Long-term Strategic Goals
What are the key SMART transformational objectives the organisation will deliver on route to the Vision? Identify a maximum of 3 to 5 strategic objectives and ensure that they are aligned to your Vision statement, are truly objectives that will transform your organisation and are both specific and measurable. In terms of time frame, ideally look 3 to 5 years into the future.
Example: Increase New Production Introduction Growth by 45% profitably by 2024.
Step 3: How Far Will We Go in the Current Year?
On establishing the long-term transformation objectives in step 2, identify how far the organisation will go in the current year. The annual objectives align directly to the Strategic Objectives. Essentially, this means that the objectives, when achieved, will deliver a % of the long-term strategic goal. Again, be specific and include a measure of success
Example: Implement 3 New Products by Q4
Step 4: Identify Key Annual Priorities
On establishing the current annual goals, identify what are the key transformation priorities that will deliver the annual goals.
Example: Optimise New Product Introduction Process
Step 5: Identify Target for Each Priorities
For each priority, identify what is the expected output when the priority project is delivered. You can then review against annual goal to ensure that the priorities identified will deliver the annual goal. Ask the question, if I deliver this target, will it deliver the annual objective and by how much.
Example: Reduce NPI Leadtime by 50%
Step 6: Identify Sponsor and Leader for Each Priority
For each priority, identify a Sponsor and Leader. The Sponsor (S) role in the organisation is the role that ultimately wants to project to success, typically a Senior role in the business. This role develops the charter in conjunction with the Leader and supports the Leader throughout the duration of the project. The Project Leader (L) is responsible for the day to day management of the project with the team to deliver the project results.
Step 7: Linking Step 1 to 6 Together
Each part of the X Matrix is connected together using the linking boxes. For each alignment box include a circle or “X” to identify strongest link between
a) strategic goal and annual goal
b) annual goal to annual priority
c) annual priority to target
d) annual priority to Leader and Sponsor
This is a final check ensures that all priorities are aligned to the annual gaols and ultimately to the strategic goals. In the event of gaps, it provides the leadership team with opportunity to close gap. The X Matrix is then deployed throughout the organisation, with many levels of X Matrix possible, given the structure of an organisation.
Full Presentation: Click here for Strategy Presentation by Maria Ryan at the 2019 Lean Productivity and Continuous Improvement Summit benefits-and-pitfalls-of-bringing-strategic-goals-to-life
To find out more about X Matrix deployment, contact email@example.com