1. HOW DO YOU TAKE YOUR PEX PROGRAM TO THE NEXT LEVEL?
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2. PART I – THE LEADERSHIP PARADOX
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3. TOP 5 OBSTACLES TO SUCCESSFUL PEX DEPLOYMENT
#1 Lack of Management Buy-in
#2 Lack of Tangible Results from Pilot
#3 Lack of Quality Resources (Belts)
#4 Lack of Benefit Quantification
#5 Lack of Effective Coaching
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4. ...More than 50% of PEX Pilots Are Not Successful!!
REALITY IS DIFFERENT…
Survey of 120 PEX
“Deployments” – Position 2 Years From Launch
Pilot Defined As:
<30 Projects
Limited Scope (1-2 Divisions)
Run by First/Second Wave
...More than 50% of PEX Pilots Are Not Successful!!
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5. NEED TO UNDERSTAND WHAT REALLY MOTIVATES LEADERS…
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6. THREE DRIVERS OF MANAGEMENT BUY-IN…
Cause
Problem
Pain
Root Cause
Cause
Problem
Symptom
Pain
Consequence
Managers Don’t Make Time For Project Reviews
Not Interested
Managers Cannot See the Direct Linkage Between Projects and Their Personal Objectives
Not Convinced
Managers Do Not Believe PEX Will Deliver the Result They Need in the Time They Have
Not Motivated
Managers Choose to Prioritise Business as Usual Delivery Over Driving Improvement Projects
Project Selection is Not Systematically Driven by Performance-Expectation Gaps in the Outcomes Managers Are Responsible For
Managers Have Not Personally Experienced ‘Proof’ of the Power of Formal PEX Tools on a Problem They See As Similar
The Consequences For Not Delivering Against Business As Usual Targets Are Greater Than The Consequences on Not Delivering Improvement Projects
Projects Take Longer to Do Than They Should
Less Projects Are Successful Than They Should Be
Tangible Project Benefits Are Lower Than They Should Be
Deployment Leaders Spend Time and Energy Compensating for Unsupportive Management Behaviour
Deployment Leaders Spend Time and Energy Pushing PEX Up the Management Agenda
Tangible Program Results are Substantially Lower Than They Could Be
Rate of Program Expansion is Eroded As Deployment Leader’s Time and Energy is Sapped Keeping PEX on Agenda
PEX Program Stalls and Ultimately Fails
Managers Don’t Address Project Road-blocks
Managers Don’t Provide Enough (or the Right) Resources to Projects
Lack of Management Buy-in to the Process
Excellence
(PEX)
Program
Managers Don’t Ultimately Take Actions Needs to Liberate Tangible Benefits
Managers Behaviour Does Not Reinforce PEX Principles
Managers Short-circuit Formal PEX Approach With Unsustainable Actions
Managers See the PEX Initiative as the Deployment Leaders Program
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7. PUSH DRIVEN OPEX PROGRAMS ARE HARD TO SUSTAIN….
Initiative Fatigue
Will/Belief of Deployment
Leader/Sponsoring Executives
Quarterly Pressure For Results (Urgent vs. Important)
Power of LSS Methodologies to
Deliver Tangible
Results
Misalignment With Immediate Operational Priorities
Well Publicised
Results of
Successful
Organisations
Lack of WIIFM
Inconsistent Executive Behaviour
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8. 5% 10% 70% 15% AVOIDING THE URGENT NOT IMPORTANT TRAP IS DIFFICULT
AND
IMPORTANT
HIGH
URGENT
NOT
URGENT
IMPORTANT
IMPORTANT
NOT
URGENT
LOW
LOW
HIGH
IMPORTANT
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9. URGENT IMPORTANT LEADERS FACE CONFLICTING FORCES… The Whirlwind Goals
or The Day Job
New Activities
URGENT
IMPORTANT
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10. ONE KEY IS MAKING HARD CHOICES…
# of Breakthrough Objectives
(In Parallel With the Whirlwind)
2-3
4-10
10-20
# of Resulting Programs
32-48
64-160
# of Breakthroughs
Successfully Achieved
2-3
1-2
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11. BEWILDERING RANGE OF ADVICE AND TOOLS….
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12. INTEGRATED BUSINESS “EXECUTION” SYSTEM
PART II – THE POWER OF AN
INTEGRATED BUSINESS “EXECUTION” SYSTEM
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13. WHAT DO THESE ORGANISATIONS HAVE IN COMMON….?
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14. AND THESE….? John S Stroup Lawrence Kingsley
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15. THE EVOLUTION OF THE PRODUCTION SYSTEM…
Business
System
+ Transform the Business
+ Hoshin Kanri/Strategy A3s
+ Systematic Approach to Innovation
+ Systematic Approach to Growth
+ Systematic Approach to Leadership
Typified by Danaher
Production
System
Business Impact of “System”
Run and Improve the Business
Lean/Daily Management
CI Culture
Respect for People
Long Term Philosophy
Typified by Toyota
Breadth and Depth of “System”
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16. PART III – USING HOSHIN TO ALIGN PEX TO SUPPORT
“TRANSFORM THE BUSINESS”
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17. THE RISE OF HOSHIN PLANNING….
Hoshin Planning is a systematic and disciplined process to align, communicate and execute strategy by focusing on those few breakthrough objectives that give you competitive advantage.
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18. 5. Implement Annual Objectives
THE HOSHIN PLANING PROCESS….
1. Establish Vision
Hoshin Process
in Concept
Develop 3-5 Year Breakthrough Objectives 2.
Develop Annual Objectives
Catch-ball Planning 3.
Deploy Annual Objectives 4. P
5. Implement Annual Objectives D C
6. Monthly Review A
Reflection
7. Annual Review
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19. THE A3-X (X-MATRIX) – ONE PAGE STRATEGIC PLAN
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20. ROTATE TO CASCADE TO THE POINT OF ACTION…
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21. BOWLING CHART AND COUNTERMEASURES KEEP FOCUS
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22. HOSHIN ENSURES LEADERS ARE MOTIVATED TO DRIVE STRATEGIC PEX ACTIVITY
Hoshin helps leaders understand the logic that connects improvement actions to business outcomes
Hoshin helps create the consensus that the selected actions are likely to deliver the outcomes that leaders seek
Hoshin makes it easier to reward leaders for the achievement of strategic goals
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23. PART IV – USING MAAR TO ALIGN PEX TO SUPPORT
“RUN AND IMPROVE THE BUSINESS”
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24. THE IMPORTANCE OF DAILY MANAGEMENT TO HOLD THE GAINS…
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25. TRANSITION FROM “TRANSFORM THE BUSINESS” TO “RUN AND IMPROVE THE BUSINESS”
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26. THE KEY IS CHANGING THE WAY MANAGERS REVIEW PERFORMANCE…
Identify Actions
Review Performance
Review
Actions Do
Predominantly Lagging KPIs
Inconsistent Inputs
Based on Gut Feel
Poorly Scoped Actions
Ready, Fire, Aim
Little Formalisation
Last Minute Scramble
Focus on % Complete
Traditional
Management
Review Cycle
Simple, Consistent and Visual
Approach to Review of
Operational Performance
Identify Actions
Review Performance
Review
Actions Do
Systematic Identification
of Actions Based on
Primary Failure Modes
New
Management
Review Cycle
Focus on Whether
the Actions have
Moved the Dials
Chose and Consistently
Apply the Right
Best Practice Methodologies
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27. Y=f(x) From Lagging Measures of Outcome... P&L and BS Impact
WE HAVE TO SHIFT ATTENTION FROM MANY LAGGING TO VITAL FEW LEADING INDICATORS…
From Lagging Measures of Outcome...
P&L and BS Impact
Efficiency
Productivity
Cost/Output
Outcomes
Monthly Averages
Periodic Commentary
Y=f(x) 10 20 30 40 50 60 70 80 90
100
UCL
LCL
Speed/Cycle Time
Waste
Yield/Defects
Timeliness
Process
Driver
Process
Driver
Process
Driver
Control Charts - Variation
Individual/Sample Data
Trend/Special Cause
To Leading Indicators of Process Capability...
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28. Customer Satisfaction/
NEED A FACILITATED (CAUSE_EFFECT ANALSIS) WORSHOP TO IDENTIFY VITAL FEW VALUE DRIVERS…
Business
Outcomes
Lagging Indicators
Aggregate Data
Periodic Reporting B A C D E
Speed
Roll Through Yield
SLA Adherence
Complaints
Volume produced
Rework
Backlogs
Cycle Time
Process Yield
Productivity
Profitability
Customer Satisfaction/
Retention
Operational
Outcomes
Process
Outcomes
Leading Indicators
Raw/Event Data
Process Frequency
Process
© i-solutions Global Ltd. 2008
Slide Number 28
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29. Analyse Measure Review Action
THE MAAR CHART LINKS IMPROVEMENT TO OPERATIONAL KPIS… SIMPLE TO LEARN AND UNDERSTAND…
Fault Resolution Cycle Time
Analysis of Root Causes
Analyse
Measure
A B C D
Validation of Improvement
Action Planning/Progress RC J F M A S O N 10 21 16 18 B 23 24 2 9 6
Cause
Action
Owner
Due
Status A
Reduce instances of A
PTD
Jan B
Remove instances of B
ABC
Feb
Review
Action
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30. Analyse Measure Review Action
EXTERNAL FACILITATION IS USEFUL TO DEVELOP FAILURE MODE ANALYSIS
On-time Delivery
Analysis of Root Causes
Analyse
Measure
A B C D
Validation of Improvement
Action Planning/Progress RC J F M A S O N 10 21 16 18 B 23 24 2 9 6
Cause
Action
Owner
Due
Status A
Reduce instances of A
PTD
Jan B
Remove instances of B
ABC
Feb
Review
Action
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31. MAAR SHIFTS OWNERSHIP FOR IMPROVEMENT TO THE LINE…
On-time Delivery
Analysis of Root Causes
Analyse
Measure
Focus on Moving the Dial Not Just % Complete on Action
Focus on Elimination of Root Cause Not Just Alleviation of Symptom
A B C D
Validation of Improvement
Action Planning/Progress RC J F M A S O N 10 21 16 18 B 23 24 2 9 6
Cause
Action
Owner
Due
Status A
Reduce instances of A
PTD
Jan B
Remove instances of B
ABC
Feb
Review
Action
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32. MAAR PROCESS CAN BE FULLY DEPLOYED IN 6 MONTHS…
Clarify Ownership
Clarify Operational Definitions/Targets
Establish Y Measure Data Collection Process
Train MAAR Owners
Month 2/3
Identify and Codify Potential Failure Modes
Extend Data Collection System
Analyse Failure Modes & Identify Process Drivers
Transaction Fulfilment Cycle Time
Analysis of Failure Modes
Analyse
Measure
A B C D
Validation of Improvement
Action Planning/Progress
Month 6
Review Effectiveness of Actions
Assess if Sufficient Actions Underway to Close Gaps
Review Data Collection/ Operational Definition
Month 4/5
Scope and Prioritise Actions/Estimate Impact
Coach MAAR/Action Owners
Execute Actions
Mode J F M A 10 21 16 18 12 15 B 23 24 2
Mode
Action
Lead
Due
Status A
DMAIC Project to Reduce A
PTD
Sep B
Just Do It Action to Impact B
ABC
Jun
Review
Action
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33. PART IV – BUILDING YOUR BUSINESS SYSTEM
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34. If I don’t include it I’ll lose it...
THE TRADITIONAL APPROACH TO STRATEGY EXECUTION….
The Off-site Strategy Day(s)
Unclear
Accountabilities
Poorly Defined
Goals
.ppt deck
The Ivory Tower Exercise
Grow Sales of New Product
Customer Focus
Invest in China
Improve employee satisfaction 
Divisional President
Functional Heads
Departmental Heads
Middle Managers
Employees
Project
The Ad Hoc Cascade
Funding
Constraints
Give me
your numbers...
I need to include
some contingency...
Way too much!
Cut by 25%!
If I don’t include it I’ll lose it...
The Budget Dance
It’s close enough for
Military work...
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35. THE STRATEGY EXECUTION MATURITY MODEL…
Level 2
Disciplined
A more structured approach to strategic planning and follow-up built on a foundation of strong project execution and improvement disciplines
Basic Execution Disciplines & Performance Management Framework
Level 3
Aligned
Increasing focus on top-down/bottom-up alignment typically via a more systematic and collaborative goal cascade process and/or by establishing a cross-functional enterprise program office
Increased Focus on Alignment & Making Hard Choices
Creation of a “feedback loop” that enables earlier course correction and continual “testing” of strategic assumptions plus internalisation of “execution” culture
Level 4
Integrated
Closure of the “Loop” & Increasing Reflection
Level 1
Traditional
Largely financially driven using traditional (and often fragmented) approaches to defining strategy, budgeting, target setting, executing and following-up actions.
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36. 15 154 31 5 7.3% 75% 15.1% 2.4% Level 2 Disciplined Level 3 Aligned
WHERE ARE THE MAJORITY OF GLOBAL 5000 ORGANISATIONS?
Level 2
Disciplined
Basic Execution Disciplines & Performance Management Framework
Level 3
Aligned
Increased Focus on Alignment & Making Hard Choices
Level 4
Integrated
Closure of the “Loop” & Increasing Reflection
Level 1
Traditional
7.3% % % %
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37. THE “GO TO” RESOURCE FOR STRATEX BEST PRACTICE…
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38. Execution Capability Assessment
PREPARE – CREATE THE CASE TO ACT AND CLARIFY WHAT MATTERS…
Prepare
Assess existing execution capability and establish Breakthrough Goals
Align
Focus management attention on what matters
Cascade
Ensure plan is comprehensive and executable
Execute
Relentlessly drive execution and take action where needed to stay on track
Key Output –
Execution Capability Assessment
Capture existing vision/mission/goals
Build inventory of existing strategic/operational indicators
Build inventory of existing strategic/operational initiatives
Complete an ‘Execution Maturity Assessment’
Run ‘Execution Readiness’ (SBU level) workshop:
Develop shared understanding of current execution system strengths/weaknesses
Articulate 2-4 Breakthrough Goals
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39. Strategic Grid Alignment Assessment
ALIGN – FOCUS MANAGEMENT ATTENTION ON WHAT MATTERS MOST…
Prepare
Assess existing execution capability and establish Breakthrough Goals
Align
Focus management attention on what matters
Cascade
Ensure plan is comprehensive and executable
Execute
Relentlessly drive execution and take action where needed to stay on track
Translate Breakthrough Objectives into Improvement Priorities and clarify functional Ownership (SBU X- Matrix)
Align existing indicators (where possible) as Hoshin Targets or Operational KPIs
Identify additional indicators (if required) to ensure all Improvement Priorities tracked
Align existing “in-flight” initiatives (where possible) to Improvement Priorities and estimate projected impact
Baseline KPIs and run SBU level alignment and target setting workshop
Key Output –
Strategic Grid Alignment Assessment
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40. Key Output – Functional X Matrices
CACADE – ENSURE PLAN IS DEPLOYED AND REALISTIC…
Prepare
Assess existing execution capability and establish Breakthrough Goals
Align
Focus management attention on what matters
Cascade
Ensure plan is comprehensive and executable
Execute
Relentlessly drive execution and take action where needed to stay on track
Cascade Improvement Priorities that are not addressed by cross-functional initiatives (Develop individual functional X-Matrices*)
Align existing indicators (where possible) or scope new indicators (where necessary)
Align existing initiatives (where possible) and estimate projected impact
Baseline Hoshin Indicators and run functional alignment and target setting workshops.
Run catch-ball alignment workshop (SBU Level) to validate/adjust targets/plan.
Key Output – Functional X Matrices
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41. Actual and Forecast Bowling Chart
EXECUTE – RELENTLESSLY DRIVE EXECUTION AND COURSE CORRECT WHERE NEEDED…
Prepare
Assess existing execution capability and establish Breakthrough Goals
Align
Focus management attention on what matters
Cascade
Ensure plan is comprehensive and executable
Execute
Relentlessly drive execution and take action where needed to stay on track
Key Output –
Actual and Forecast Bowling Chart
Resource and implement Action Plans.
Implement on-going data collection for Hoshin indicators and Action Plan progress.
Set-up and deploy a Monthly Reporting and Execution Review Cycle.
Update current and forecast Bowling Charts based on Project Impact
Run monthly ‘Execution Reviews’ at functional and SBU Level focused on Operational Scorecard/MAAR Charts
Instigate countermeasures to maintain performance
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42. FINAL QUESTIONS/THOUGHTS?
“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”
Charles Darwin
“There is great power in knowing where you are going and passion in knowing how as an individual you fit in!”
Anonymous
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43. Portfolio Prioritisation
I-NEXUS SOFTWARE BRINGS IT ALL TOGETHER
One Integrated Cloud Solution to Manage…
Strategic Planning
Strategy Deployment
Performance Review   
Portfolio Prioritisation
Program Governance
Project Execution
Daily Management
Operational Review
Benefit Tracking
i-nexus
STRATEGY
EXECUTION SOFTWARE      
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