© i-nexus 2010
Did We Move the Dials?Driving Strategic Transformation Programs
© i-nexus 2010 Slide 2
Observations on Transformation Programs in 100+ Large Organisations
Level of
Pu
ll
Level of Maturity
Size of bubble = Relative Impact on Shareholder Value
Focus on ProjectSuccess
Focus on ProgramROI
Focus on OperationalPerformance
Focus on StrategicAlignment
Big Y = Speed to Tangible Benefits
Big Y = Initiative ROI
Big Y = Process KPI Improvement
Big Y = Business Results Improvement
© i-nexus 2010 Slide 3
Most organisations Follow A Similar Journey....The Business Execution Maturity Model (BEMM)
GoalDriven
ProcessDriven
ProgramDriven
ProjectDriven
BEMMLevels
KeyGoals
Demonstrate Success
Accelerate Benefit Delivery
Make Improvement Sustainable
Align Improvement With Goals
Level 1 Level 2 Level 3 Level 4
We Need To Implement Some Change Projects
We Need a Company-
wideTransformation Program
We Need Our Operational
Managers to Drive Improvement
We Need to Align of
Transformation Efforts With Our Business Goals
TypicalDecisions
Push PullPredominantChange Mode
© i-nexus 2010 Slide 4
What is the primary way your organization measures the success of your process excellence initiatives?
Hard financial benefits delivered
Change in organizational culture
Performance against KPIs of the program
Contribution against strategic goal
Increase in customer satisfaction
20122008
N=103
10 4020 30 50 60
647
11
5
13
© i-nexus 2010 Slide 5
Conceptually what do you need to succeed?
DesiredBusines
s Impact
Changed Process Outcomes
Process, People and System Changes Needed to Achieve Changed Outcomes
Ability to systematicallytranslate strategy intoactionable priorities
Ability maintain a laser focus on execution
Ability to systematically make
course corrections as we execute
© i-nexus 2010 Slide 6
Practically how do we do this?
Learn more –visit
www.i-nexus.com
Leading organizations are increasingly combining key concepts from...
• Hoshin Planning – X-Matrix, Bowling Charts, A3s
• Operational Excellence – Stage Gates, PDCA, Lean Six Sigma Tools
• Balanced Scorecards – Strategy Maps, Cascaded Scorecards
....to create an integrated ‘Transformation’
system
Closed-loop Business Execution
© i-nexus 2010 Slide 7
Systematically translate Objectives to Actionable Priorities
StrategyMaps
Hoshin X-matrices
A3s/Annual Improvement Plans/Action Plans
Ability to systematicallytranslate strategy intoactionable priorities
© i-nexus 2010 Slide 8
Strategy mapping helps you create consensus, X-matrices help you translate into actions..
Financial
Customer
Internal
Learning
Measure Target Initiative
Increase Profit
Maximise
Utilisation
RetainCustomer
s
LowCost Offer
FastTurnaround
MotivatedCrew
Objective
Achieve FastGround Turnaround
On Ground Time
On Time Departure
25 Minutes
95% Flights
ReduceTurnaroundTime
Strategy Map
Hoshin Plan
© i-nexus 2010 Slide 9
Strategy Map to X-Matrix Example
© i-nexus 2010 Slide 10
The A3 helps those responsible for goals to charter the action plan, track the results and manage risks
Ground Operations Transformation Program
BackgroundAirplane turnaround time is averaging 140 minutes. The consequence of this is poor utilization of assets and low customer satisfaction/below industry average customer retention – both of which are eroding profitability. We need to dramatically reduce turnaround time and increase on-time departures.
Offloading process improvementImproved Maintenance Schedule
Scoping is behind plan
Process Changed
Organisation Changed
© i-nexus 2010 Slide 11
Systematically maintain a laser focus on execution...
© i-nexus 2010 Slide 12
Execute against a shared plan with clear milestones and
© i-nexus 2010 Slide 13
Grasp the situation – utilise integrated bowling charts to track progress/impact of strategic initiatives
© i-nexus 2010 Slide 14
Keeping on track – Use MAAR to focus on root causes and to instigate countermeasures
Dry Lot Release Date
Indiv
idual V
alu
e
28-O
ct-03
20-O
ct-03
11-O
ct-03
01-O
ct-03
21-S
ep-03
11-S
ep-03
02-S
ep-03
24-A
ug-03
15-A
ug-03
07-A
ug-03
01-A
ug-03
100
90
80
70
60
50
40
30
_X=61.35
UCL=92.19
LCL=30.51
1 2
Control Chart of Total Yield
Phased Introduction of new
insert design and new algorithm/illusmination levels and camera orientation.
Cause
Action Owner
Due
Status
A Reduce instances of A
PTD Jan
B Remove instances of B
ABC Feb
Measure Analyse
ActionReview
On Time Departure Analysis of Root Causes
Action Planning/ProgressValidation of Improvement
A B C D
RC
J F M A M J J A S O N
A 10
21 16 18 0 0 0 0 0
B 18
23 24 16 2 9 0 2 6
© i-nexus 2010 Slide 15
Conceptually what do you need to succeed?
DesiredBusines
s Impact
Changed Process Outcomes
Process, People and System Changes Needed to Achieve Changed Outcomes
Ability to systematically make
course corrections as we execute
© i-nexus 2010 Slide 16
Paradigm Shift 1 -Review execution not historic performance
From: Are we meeting our targets? To: Will the actions we have underway enable us to achieve our goals?
FebJan Mar MayApr Jun
10
20
40
30
50
70
60
90
80
100
Action: ABCTarget Date: AugImpact: +20 UOMs
Action: XYZTarget Date: OctImpact: +35 UOMs
SepJul Aug NovOct Dec
© i-nexus 2010 Slide 17
The Real Question is ‘Are We Likely To Hit Our Targets?’
General Display Reports & Outputs
Strategy Navigator
Delete Inline Edit Save Cancel Edit ViewDisassociate
Business Navigator Strategy NavigatorStart
CEO
Selected View
Business Unit
Create View
Show Children Hide Children Refresh
Name OwnerPI TLS Trend Q1 2010
Target Actual
Q2 2010
Target Forecast
Q3 2010
Target Forecast
Q4 2010
Target Forecast
Status UOM
- Example Manufacturing Business 100 80 100 85 100 85 100 90
35 40 40 10 60 70
100 102 200 157 300 100
Agreed
Agreed PI60
80 PI
100 60 100 70 100 100 80
50 100 50 100 65
CEO
COO
Quick Filter No Filter Applied – Showing 3 Items
Shift Volume Production of Product A to Low Cost Region
Reduce Working Capital by 20% in XYZ Facility
Reduce Inventory by $25M
Inventory Turns
Implement Supply Kanban..
Implement Vendor Sched..
Reduce Average Cash Collection by 15 Days
Debtor Days
Reduce Invoice Errors
Setup New Facility in Country X
-
-
-
-
-
- 12 102 200 157 300 290 400Agreed #70 8.4 12 8.4 12 8.4 12 9.5Ops Manager
70
58
70
Agreed PI50 Ops Director
- %55 Project Leader
- %100 Project Leader
Draft PI85 Finance Director
Draft Days85Financial Controller
- %100 Project Leader
Agreed PI100 Ops Director
Agreed %100 Project Leader
44 102 200 157 300 -100 - - - -
0.1 102 200 157 300 290 4003 0.1 3 0.1 2.6 0.1 2.6
-
25 102 200 157 300 10010 45 30 68 10065
100 102 200 157 300 10085 100 85 100 100
65 102 200 157 300 290 40076 65 76 65 76 65 59
85
70 102 200 157 300 -10 100 50 - -100
55 102 200 157 300 290 40060 76 78 94 98 100 100
Scrap Rate- Agreed %30 Ops Manager
Improve Process Yield
- %0 Project Leader
100 102 200 157 300 290 400100 100 100 100 100 100 100
10 102 200 157 300 290 40015 20 45 80 100 100 -
65 65 65 65
Improve Process Yeild
Impact: 0.4% ReductionDate: 28/09/2010
© i-nexus 2010 Slide 18
How can we ‘get fit’ for Business Execution?
Drive Strategic and Sustainable Transformation
DevelopCore Execution Competencies
•Causal Thinking Skills•Prioritisation/
Improvement Tools•PDCA Approach to
Operational Reviews•Process Thinking
CrystallizeVision/Hoshin
Planning Approach
•Establish Annual Hoshin Timetable
•Provide Guidance on Stretch Goal Setting
•Codify the Review Process
• Implement Leader Standard Work
Align Resource and Reward
Planning
•Synchronise the Budgeting/ Forecasting Process
•Align With Annual Performance Reviews
•Align Rewards with Catch-ball Targets
Underpin With aBusiness Execution
Platform
•Create Single Version of Truth
•Ensure Line-of-Sight for Every Employee
•Take Effort/ Complexity out of Catch-ball/Review
•Make Performance Transparent
© i-nexus 2010 Slide 19
How can i-nexus help you realise the full potential of Business Execution?
The i-nexus on-demand Platform provides the most complete foundation available today for organisation-wide Business Execution.
Our global consulting partners have a deep understanding of what it takes to establishbusiness execution disciplines and are ready to help you build the competencies you need.
Learn More: www.i-nexus.com
© i-nexus 2010 Slide 20
www.i-nexus.com