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Strategically Aligning Business Process Improvement
Dr. Joseph A. DeFeo, CEO Juran Global
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One day Alice came to a fork in the road and saw a Cheshire Cat in a
tree."Which road do I take?" she asked.
His response was a question: "Where do you want to go?"
"I don't know," Alice answered."Then," said the cat, "it doesn't
matter."
From Alice in Wonderland
Do We Need Strategic Plans?
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“In the majority of organizations – we estimate 70% -- the real problem isn’t
(bad strategy)…. it’s bad execution. Less that 10% of strategies effectively
formulated are effectively executed.”
“Why CEO’s Fail?” Fortune Magazine
Bad Execution is often a result of poor alignment of resources and
infrastructure.
Why Today’s Topic?
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Strategic planning is an organization's process of defining
its longer term direction, and making decisions on allocating its resources to
pursue this direction.
A set of aimed at targets!
What is Strategic Planning?
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Implementation
Define:Key
StrategiesStrategic
Goals
Review and Audit
Annual Goals
Depl
oym
ent
Asse
ssm
ent
Vision Mission Policy Values
Typical Planning Model
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Companies rarely track performance against long-term plans: less than 15% of companies make it a regular practice to go back and compare the business’s results with the performance forecast for each unit in its prior year’s strategic plans. (Harvard Business Review)
For a typical business unit, top management and the board should monitor no more than 3 to 5 metrics, representing different areas of the business for each of the three time frames: short-term, over the next 1-5 years, and long-term. (McKinsey Quarterly)
Companies realize only 63% of the financial performance their strategies promise because of defects and breakdowns in planning and execution. More than 1/3 placed the figure at less than 50%. (Harvard Business Review)
Only 7% of employees today fully understand their company’s business strategies and what’s expected of them in order to help achieve the company goals. (Success Factors)
Some Data
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Today’s Agenda
1. What is strategic alignment?
2. Why is it so difficult?
3. How do you improve the process and your success rate (3 Secrets)?
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1. MisunderstandingThe workforce does not understand the
strategy.
2. ResourcesMost companies
do not have budget links to
strategy.
3. Rewards and structures
Most managers don’t have incentives linked to
strategy..
4. InattentionMost executive teams spend less than one
hour per month discussing strategy.
9 out of 10 companies
fail to execute strategy
Why Do We Need Strategic Alignment?
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Establish Responsibility
Identify Actions
Identify and Provide Resources
Establish Timelines and Milestones
Subdivide Broad Goals
What is Strategic Deployment?
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Strategic alignment is the process and the result of linking an organization's structure and resources with its strategy and business objectives. It is the actions of bringing the organization’s business divisions and staff members in line with the organization’s planned objectives.
What is Strategic Alignment?
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Why is It So Difficult?
Inability to manage change You have to be willing to create and implement innovative
strategies and adjust to change in the market
Lack of infra-structure that supports execution Leaders assume that the current organizational structure will
support the new strategy.
Not involving the right people at the right time To make good decisions, you must seek out the perspectives
of a wide range of people. Involving people in decisions gets them focused on generating solutions to problems rather than complaining or waiting to be told what to do.
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Why is It So Difficult?
Misalignment between leadership actions and organization long term direction and priorities
Employees observe the leaders and pick up signals about what is important and appropriate
Limited or no organization-wide coordination and collaboration
Ensuring that decisions and actions are coordinated across organizational boundaries takes shared goals,
clearly defined roles and accountability
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Management
ReviewsMethods
Outside-in Drivers of satisfaction and loyalty Growth and retention analytics Establish vision / mission
Align all plans to corporate strategy
Align core processes, process measures
Integrate improvement initiatives Balance contributions to gap-
closure requirements Review performance regularly Manage overall effects and
market changes Analyze causes of gaps Assess impact of gaps and re-
prioritizeImprovement Methods: DMAIC, BPM, Lean, QbD, RCCA,
Voice of the Customer &
BusinessHoshin
Planning – Catch Ball
Review and ManageAdjust & Feedback
Execute Through Managed Processes
Set Direction
&Deploy Goals
ImplementInitiatives &Projects
Aligned Performance
Plans
Define top-level imperatives Define measures of success
Launch business planning
process
Strategy Alignment Solutions
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Successful Execution of
Strategy
Customer
SetDirection
DeployDirection
Review&
Manage
ImplementSolutions
Gap
Execute through Improved, Streamlined and New Processes
RCCALeanSix
Sigma
QbD,Design ForSix Sigma
How Does It Fit Together?
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ProjectsAnnualGoals
StrategicGoals
KeyStrategy
Vision
Time
5 Years 1 Year
Strategic Alignment – Detailed Look
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How Do You Improve the Process?
1. Collaboration (Catch ball)a. Organizations are complex; we must
rely on others to get things done.b. Create the conditions for people to
work together (teams).c. Cooperation is facilitated by clearly
defines roles.d. Goals are best achieved when those
that have to achieve them are included in the development of them (catch ball).
e. Coach managers on how to cascade their strategic plans to their teams.
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How Do You Improve the Process?
2. Communicationa. Over-communicate the vision,
strategies and objectives for the organization.
b. Develop communication strategies for all levels of the organization; one message does not suit all!
c. People must know how does this effect me and what do I need to do to contribute!
d. When in doubt, communicate more.
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How Do You Improve the Process?
3. Regular Reporting & Review
a. Create a performance management system that assigns accountability for each initiative and makes its progress more transparent.
b. Develop a regular schedule of reviews on a monthly basis.
c. Create and use action plans; these are the cornerstones of execution.
d. Encourage leaders to identify problems and barriers to execution rather than masking them.
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Connect With Us
@Juran_Institute
www.youtube.com/user/JuranInstitute
www.facebook.com/JuranInstitute
www.linkedin.com/company/juran-institute
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More Resources
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process improvement continuous improvement dmaic juran quality handbook lean manufacturing lean six sigma lean transformation operational excellence process innovation
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g firm iso 9000 2015 six sigma certification what is lean what is six sigma
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Thank You!
Copyright ©2015, Juran Institute, Inc. For more information, please visit www.juran.com
Contact us at: info@juran.com
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