Who's Got The Ball - Roger Olson

1
WHO’S GOT THE

BALL?
THE CHALLENGE OF ALIGNMENT
Roger E Olson
ASQ 0701
October 30, 2015
2
On Change
“There is nothing more difficult to take
in hand, more perilous to conduct, or
more uncertain in its success, than to
take the lead in the introduction of a
new order of things.”
Niccolo Machiavelli
1469 – 1527
(Historian, politician, diplomat, philosopher, humanist, and writer, who is
recognized as the founder of modern political science and political
ethics)
3
70% of strategic plans and change efforts fail to

Meet the goals (that number has remained
unchanged for over 20 years)
4
What a Waste!
When change efforts fail,
When strategic plans fail,
So much of the time and effort
Is just a waste!
And most companies will do it again without

considering what went wrong, and more importantly,
what to do differently.
5
What They Have in Common

Strategic plans and Change Initiatives both:
• Start from on high
• Are passed down through the organization
• Need involvement & commitment from the top
• Need involvement & commitment from the front
line
• Require great ongoing communication
• Require resources
6
Causes of Failure:
• Failure to create executable plans
• Failure to plan for obstacles, setbacks and resistance.
• Executives frequently fail to step up their regular
communications throughout the process
• Executives tend to forget they need to remind their people
why the change is necessary (or why goals are important)
• Failure to realign the resources necessary for the
plan/change to succeed
• Lack of alignment
• Lack of commitment
7
A Lack of Alignment
Leadership
Customers
Executives
Employees
The Implementation Plan

8
What We Want
Customers
Executives
Leadership
Suppliers Employees
Implementation Plan
9
Typical Strategic Planning Approach

1. Exec team has an offsite
a. Decide on priorities
b. Decide on goals
c. Create a “plan”
2. “Communicates” the plan to directors and managers
3. “Communicates” the plan to front line workers
4. Wait for results
10
Who’s Got the Ball?

• Exec’s tell directors and managers what the goals are,
and pass the ball
• Directors and managers tell front line workers what the
goals are, and pass the ball
• Front line workers have enough to do, and don’t want the
ball
• When communication is vague, when responsibility is not
clear, when accountability is poor, the ball gets dropped.
• Most of the time it’s too late before it is noticed.
11
Increasing number of messages as information

cascades through the organization
Leaders Directors Managers Front Line

Employees
10 Priorities 15 Priorities 20 Priorities 25 Priorities
Information Overload
(Actual example)
Source: Most Change Initiatives Fail -- But They Don't Have To by David Leonard and Claude Coltea
12
Insight and recommendations tailored to each

Manager’s level, challenges and resources
Leaders Directors Managers Front Line

Employees
10 Vital 8 Vital 5 Vital 3 Vital
Priorities Priorities Priorities Priorities
Reducing Information Overload

Source: Most Change Initiatives Fail -- But They Don't Have To by David Leonard and Claude Coltea
13
Goals and Objectives

• “Top management shall ensure that quality objectives,
including those needed to meet requirements for product
[see 7.1 a)], are established at relevant functions and
levels within the organization. “ (ISO 9001/AS9100)
• “designation of responsibility for achieving objectives and
targets at relevant functions and levels of the
organization, and the means and time-frame by which
they are to be achieved” (ISO 14001)
• Yet most organizations fail to do this
14
There Is A Better Way:
Hoshin Planning
15
7 Phase Hoshin Planning Process

Establish
Organizational Vision
PLANNING P Strategic Planning/ Develop 3-5
Year Breakthrough Objectives
Develop Annual Breakthrough

Objectives and Improvement
Priorities
Self-Diagnosis Catchball
Deploy Improvement Priorities
D
Implement
IMPLEMENTATION
A Improvement Initiatives
REVIEW Root Cause Monthly Review Critical Step

Countermeasures
C
Annual
AnnualReview
Review
Source: freeleansite.com
16
Nested Deming Cycles

Plan
Plan
Act Do
Manager
Plan Plan Act 1 Do Check
Check
Act Do Act Exec Do Plan

Team Plan
Act Do
Act Manager Do
Check
Check Check 2 Plan
Check Act Do
Check
Front Line
Teams
17
• Catchball creates constant dialogue between the people

doing the work at the 500 foot process level and management
at a 25,000 foot process level to ensure that resources are
provded, key performance indicators are being impacted, and
• Key activities and objectives are cascading down through the
organization.
• Everyone is encouraged to think, engage with, and become a
part of the improvement process versus being told “this is how
it will be.”
18
Executive Team
Round 1 Round 2
Here’s how we Here’s how we

Here’s where Here’s where Would do it,
Would do it,
We’re going We’re going Here’ what
Here’ what
We need We need
Managers
19
Managers
Round 1 Round 2
Here’s how we Here’s how we

Here’s where Here’s where Would do it,
Would do it,
We’re going We’re going Here’ what
Here’ what
We need We need
Front Line Teams

20
Catchball addresses:
Failure to create executable plans
Failure to plan for obstacles, setbacks and resistance.
• Executives frequently fail to step up their regular
• Executives tend to forget they need to remind their people
Failure to realign the resources necessary for the
Lack of alignment
• Lack of commitment
21
The Process of Critical Thinking (PCT)

Step 1 : WHAT
Breakthrough Thinking
Step 2 : HOW FAR

Annual Breakthroughs
Step 3 : HOW
Identify Key Driver Process
Step 4 : HOW MUCH/ WHEN

Determine Measures & Track
Step 5 : WHO
Identify Key Resources &
Deploy
22
PCT Step 1 – WHAT?
World-Class
Breakthrough
Objective
Best-In-Class
Industry Standard GAP
Current
Current Situation
Situation
Breakthrough Thinking Leads us to World Class

23
PCT Step 2 - HOW FAR?
Breakthrough
Objective
Annual BT Objectives Yr 3 Yr 3
Annual BT Objectives Yr 2 Yr 2
Yr 1
Annual BT Objectives Yr 1
Current Situation
Identify First Year Breakthrough Objective
24
PCT Step 3 - HOW?
Improvement Annual Breakthrough

Why? Objective
Priority
Why?
GAP
Why?
Why?
Current Situation
Why?
Identify Key Driver Processes
25
PCT Step 4 - HOW MUCH/ WHEN?
100
Determine Measures & Track
26
PCT Step 5 - WHO?

100% 100%
Resource A 5%
Current Team B 45% Relative

Distribution Impact On
Of Resources Improvement
Resource C 20% Priorities
Resource D 15%
Team E 15%
0% 0%
Identify Key Resources & Deploy
27
Daily Management and Hoshin Planning

Once Breakthrough is achieved…
process is standardized to
Daily Management! Strategic
Objective is
Improvement
Hoshin Achieved!
Planning
KAIZEN
Hoshin
Planning
KAIZEN
Hoshin Daily
Planning Mgmt
Daily
KAIZEN
Mgmt
Daily
Foundation Mgmt
for Daily Daily
Mgmt Mgmt
HP
Year 0 Year 1 Year 2 Year 3 Year 4

28
PCT & the Top Level HP Matrix
HOW
Top Level
All items
Improvement
Priorities
are listed HOW
HOW Annual WHO
in priority order
Breakthrough
Targets
to Improve MUCH
FAR Objectives
starting from
3-5 Year
Breakthrough
Annual Metrics the center
Objectives
RESOURCES
WHAT = Primary Responsibility
= Secondary Responsibility
OWNER
29
Complete Top Level HP Matrix

3- HOW Use dots to show
relationship of Targets and
Resources to the
Use dots to show
relationship of Improvement
Improvement Priority
5- WHO
Priorities to Annual
Objectives
Top Level
Improvement
Priorities NOTE: Only Solid dots on a
resource deploy to the next
Annual Targets level
Breakthrough to Improve
2- HOW Objectives
FAR 3-5 Year

Breakthrough
Objectives
4- HOW RESOURCES
MUCH = Primary Responsibility
1- WHAT = Secondary Responsibility
OWNER
The whole picture of your company on one sheet of paper!
30
Linkage on the Matrix
Top Level
Improvement
Priorities
Dots show Annual Targets
linkage from Breakthrough To
Target back to Objective Improve
Breakthrough
for that level 3-5 Year
Breakthroughs
31
Points to Remember about the Matrix

• As soon as a solid dot is placed above a resource, that resource
will get a lower level matrix or an action plan.
• Clear circles indicate support resources. They do NOT get a
lower level matrix or action plan unless they get a solid dot on
another matrix.
TOP LEVEL - Company
• The dots are

Danaher Business System Office - Policy Deployment 1998
to be used as Top Level

Improvement
a sanity check
Priorities
Annual Targets
Breakthrough to
Objectives Improve
3-4 year
Breakthrough
Objectives
• The Improvement Resources

l Primary Responsibility
m Secondary Responsibility
SECOND LEVEL - Plant

Priority is deployed Second Level Policy Deployment
to the lower level

matrix or an action Second Level
Improvement
Priorities
Top Level
Improvement
Priorities
Targets to
Improve
plan Annual
Breakthrough
Objectives
RESOURCES
32
Transferring Improvement Priorities to the 2nd Level
TOP LEVEL The 2nd level 12 o’clock and 3

TOP LEVEL Policy Deployment 2004
o’clock positions have all new
Imp. Priorities text in them – nothing is
and Annual rotated into them from level
Objectives are 1.
Top Level
copied directly
Improvement
Priorities
onto the 2nd

Annual Target to
Breakthrough Improve
Objectives
Level HP. 3-5 Year

Breakthrough
Objectives
Matrices. l
m
Resources
Primary Responsibility
Secondary Responsibility
SECOND LEVEL
Second Level Policy Deployment
Typically, a 2nd Level

Matrix is created for
a primary resource Second Level
Improvement
for each top-level Priorities
Top Level
Improvement Improvement
Priorities
Target to
Improve
Priority. Annual
Breakthrough
Objectives
RESOURCES
33
Transferring Improvement Priorities To The 3rd Level
SECOND LEVEL Not always suggesting

SECOND LEVEL Policy Deployment 2004
you need 3rd Level.
Top Level and Based on size, complexity,
Second Level breadth, and maturity of
Imp. Priorities organization.
Second Level
are copied
Improvement
Priorities
Top Level
directly onto the Improvement

Priorities
Target to
Improve
3nd Level HP Annual

Breakthrough
Objectives
Matrices. l
m
Resources
THIRD LEVEL
THIRD Level Policy Deployment
If necessary, a 3rd
Level Matrix is
created for a Third Level
Improvement
primary resource Priorities
Second Level
for each second- Improvement

Priorities
Target to
Improve
level Improvement Top Level

Improvement
Priorities
Priority. l
m
RESOURCES
34
Completing the Second Level PD Matrix
Use dots to show relationship

3- HOW of Targets and Resources to 5- WHO
Use dots to show the Improvement Priorities
relationships between
Improvement Priorities
and Annual Objectives
2nd Level
Improvement
2- HOW Priorities Use dots as a check to make sure
Top Level
Improvement
Targets to
Improve
the Improvement Priorities & Targets
Priorities
meet the goal and support the
Annual
Breakthrough Annual Breakthrough Objectives
Objectives
RESOURCES
4- HOW
1- HOW FAR MUCH/WHEN
= Primary Responsibility
OWNER
35
Cascading Priorities to ACTION

TOP LEVEL –
Company/Group
Top
Point of Impact - Action Plan The
level where root causes are
Level
Improvement
Priorities
Annual
Breakthrough
Objectives
Target to
Improve
SECOND
LEVEL – addressed! Action Plans can be
3-5 Year
Breakthrough
Objectives
Resources
Plant/Business

initiated out of any matrix level.
Second
Level
Improvement
Priorities
Top
Level Target to
Improvement Improve
Priorities
Annual
Breakthrough
ROOT CAUSE
Objectives
POINT OF IMPACT -
RESOURCES
LEVEL- ACTION PLAN

Sub Plant/Dept Engineer/Supv
Cascade as many times as Second Level Policy Deployment
necessary to the Im provem ent Priority Title: *
Review Team : *
Policy Deployment Action Plan
Departm ent/Location: Managem ent Ow ner:
* *
Date: *
Next Review : *
Root Cause Level Environm ental Situation Sum m ary: *
Tim eline
Target Im provem ent
Core Objective: *
POINT
Third
= Original Plan x = Progress at Review
Level Planned 2003 Status
Im pact
Improvement Action Step/ Kaizen Events Ow ner (Lead is bold) Milestone Dates Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec ( P a st D u e i n R e d )
Priorities
Second
Level
Improvement
Priorities
Target to
Improve OF
Top
Level
Improvement
Priorities
IMPACT
RESOURCES
36
Creating Action Plans
Hoshin Planning Action Plan
Im provem ent Priority Title: * Date: *
* *
Review Team : * Next Review : *
Environm ental Situation Sum m ary: *

Create an Action Plan
Tim eline
Core Objective: *
Planned
2004
Status
For every Improvement
Im pact
Action Step/ Kaizen Events Ow ner (Lead is bold) Milestone Dates Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec ( P a st D u e i n R e d )
Priority at the Point of

Impact
Step 4: Identify the impacts

on the improvement priority
and top level breakthrough
objective
Step 3: What is the current

Step 1: status of the action. Color
Determine Step 2: Record code background as red to
actions & write ownership and timing show items past due.
on worksheets of the actions
37
Action Steps Complete the Cause & Effect Chain

Breakthrough Objective:
Attain competitive advantage in Delivery Performance
Effect = Results!
Annual BT Objective #1:
Streamline Engineer-to-Order Processes
Top Level Improvement Priority:

Effect = Cause
Use HOS Tools to improve value stream of
Engineer-to-Order Process
Second Level Improvement Priority:

Implement Improved Order Entry Process Effect = Cause
POINT
Action Step 1: OF
IMPACT
VSM Customer Service Process
POINT
Action Step 2: OF
IMPACT
SW Kaizen to improve productivity
by 35% Actions = Cause
POINT
OF
Action Step 3: IMPACT
VRK to reduce Quote processing time
by 50%
38
Action Plans Drive The Rate Of Improvement

Hoshin Planning Action Plan
Im provem ent Priority Title: * Date: *
* *
Review Team : * Next Review : *
Environm ental Situation Sum m ary: *
Tim eline
Core Objective: *
Planned 2004 Status
Im pact
Action Step/ Kaizen Events Ow ner (Lead is bold) Milestone Dates Jan Feb M ar Apr M ay June July Aug Sept Oct Nov Dec ( P a st D u e i n R e d )
DASHBOARD/SCORECARD
39
Scorecards
Targets To
Improve JOP – Jumping Off Point from
are entered in which you started tracking the target
priority order
YTD ACT – Each month this field gets
updated (is YTD from the monthly
fields located to the right)
Planned targets are established for each month based

on the overall Target to Improve.
An actual that is a miss from the plan, is color coded red
40
Each Target is Copied to the Top Level Scorecard
Reduce New Prod. Dev. Cycle
TOP LEVEL
IMPROVEMENT Dev. Cycle to 120 Days by 12/95
Increase Market Share to 60%
PRIORITIES
Human Resources Dept.

Engineering Department
Production Department
Marketing Department
Materials Department
Finance Department
TARGET
Sales Department
ANNUAL
BT TO
OBJECTIVES
IMPROVE
3-5 YEAR
BREAKTHROUGH
OBJECTIVE
RESOURCES
= Primary Responsibility
TOP LEVEL MATRIX TOP LEVEL SCORECARD CHART

41
Scorecards are Created for All HP Matrices

TOP LEVEL
Title
SCORECARD
Top Level
Improvement
Priorities
Annual Target s to
Breakthrough Improve
Objectives
3-5 year
Breakthrough
Objective
Resources
SECOND LEVEL
SCORECARD
2nd Level
Improvement
Priorities
Targets to
Top Level Improve
Improvement
Priorities
Annual Breakthrough
Objectives
RESOURCES
42
The Review Process – Ensure Plan and Learn

Execute To Conduct Regular
The Plan P
Reviews
A D
C
• Execute to the plan and perform daily, weekly and monthly reviews of
each action plan (Daily Mgt.)
• Reviews are designed to keep the Hoshin Plan on track

• Improvement Action owners don’t come to be evaluated
• The intent is to present the results of self assessment
• The review team provides focused assistance primarily around the

owner’s analytical process and preparation.
• What did you plan to do? (Plan)
• What did you actually achieve? (Do)
• How does actual vs. target compare (CHECK)
• Standardize what’s working, implement countermeasures and/or plan again as
required. (ACT)
43
Manage Daily Management Through Leadership Standard Work
• Embed the Hoshin Plans into Leadership Standard

Work
• Make the Hoshin review process part of the daily,

weekly and monthly audit process
• The key is to constantly monitor progress and drive

accountability to the lowest level
Third Level HP Countermeasure Sheet 44
Improvement Priority: Process and organization to grow Printos sales in textiles and ceramics
Targets to Improve: Increase Printos valve/module sales in textiles & ceramics from $100k to $2,500k in 2003
Run Chart Pareto (the

(the "Why"
"Why"you
youmissed)
missed)
2003 Plan
$500 50%50%
2003
2003 Actual
Plan
$450
$400 2003 Actual 40%40%
$350
30%30%
$300
$250
20%20%
$200
$150
10%10%
$100
$50 0% 0%
Delayed
Delayed Evaluation Insufficient
Kit DelayedSales
Insufficient Print Delayed Print Engine
$0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Evaluation Kit
Development Sales Engine
Prospects Delivery
2003 Plan $0 $20 $3 $65 $65 $123 $345 $397 $286 $333 $400 $453 Development Prospects Delivery
2003 Actual $0 $21 $22 $61 $136 $164 $330 $350 $150 %
Percent 45%
45% 35% 35%
20% 20%
Problem Statement:
$136k monthly miss is due to Delayed Evaluation Kit Development, Insufficient Sales Prospects and Delayed Print Engine
Delivery.
Countermeasures
What Who When How Much (Impact)
Addressed Root Cause: Delayed Evaluation Kit Development
Short-Term:
Short-Term: Assign additional Engineer to complete evaluation
Short-Term: MJF 10/28/03
kit development (delayed one month) in time for ITMA show. $61
Long-Term: JBR Long-Term:
Long-Term: Update Tollgate process to include Engineering
12/15/03
development for necessary targeted-vertical launch kits.
Addressed Root Cause: Insufficient Sales Prospects
Execute Sales Funnel Targets for UK 'T' Shirt outlet…twice per DW/HW 10/15/03 $48
week follow-up on Sales Funnel Targets with Sales Engineer.
Addressed Root Cause: Delayed Print Engine Delivery
Execute kanban re-sizing process for Printos at once per quarter
RZ/ MJF 10/22/03 $27
frequency (currently twice-per-year…which is not frequent
enough for ramping production).
45
5 Why Analysis
• Systematic method to drive to the true root cause(s) of a problem
• Simply ask “why” in a step ladder approach until fundamental root

cause is discovered. Root cause is not simply listing the
symptoms of a problem
• Normally, after up to 5 steps, the true root cause(s) will be

exposed
46
Action Plans vs. Countermeasures?
Countermeasures are
reactive – they address how
60 to get back to plan when a
goal is missed for a period
50
40
HP miss Jump Off Point (JOP)
to stretch target
30
Action Plans are proactive –

20 they address how to achieve
a particular goal from the
10 Plan Actual
jump off point (JOP) to the
stretch target
0
J F M A M J J A S O N D
Inventory Reduction Plan
47
Monthly HP Review Agenda Format
• Establish the Growth Agenda for

Today’s HP Review 5%
• Financial Review
15%
• Hoshin Planning 60%
- Road Blocks to Growth, Major
Predetermined Topics
- Established HP Growth Initiatives
- New Product Development
- Remaining HP Elements (Q, D,C)
• KPI’s
• People/Org. Issues 20%
• Other Business
48
Hoshin Planning Summary

• Aligns Strategy and Execution
• Systematically develops and links plans from

organizational vision to operational tactics
• Ensures deep and common understanding and

maximizes ownership and buy-in to plan
• Requires thoughtful, detailed planning for each and

every improvement action
• Consistently assesses actual performance vs. plan and

addresses issues and learns from the process
All Employees are Engaged in the Process
49
Hoshin Planning addresses:

Failure to create executable plans
Failure to plan for obstacles, setbacks and resistance.
Executives frequently fail to step up their regular
Executives tend to forget they need to remind their people
Failure to realign the resources necessary for the
Lack of alignment
Lack of commitment
And, we always know, “Who’s Got The Ball”
50
QUESTIONS?

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1

WHO’S GOT THE

70% of strategic plans and change efforts fail to

And most companies will do it again without

What They Have in Common

The Implementation Plan

Typical Strategic Planning Approach

Who’s Got the Ball?

Increasing number of messages as information

Leaders Directors Managers Front Line

Insight and recommendations tailored to each

Leaders Directors Managers Front Line

Reducing Information Overload

Goals and Objectives

There Is A Better Way:

7 Phase Hoshin Planning Process

Develop Annual Breakthrough

REVIEW Root Cause Monthly Review Critical Step

Nested Deming Cycles

Act Do Act Exec Do Plan

• Catchball creates constant dialogue between the people

Here’s how we Here’s how we

Here’s how we Here’s how we

Front Line Teams

The Process of Critical Thinking (PCT)

Step 2 : HOW FAR

Step 4 : HOW MUCH/ WHEN

PCT Step 1 – WHAT?

Industry Standard GAP

Breakthrough Thinking Leads us to World Class

PCT Step 2 - HOW FAR?

Identify First Year Breakthrough Objective

PCT Step 3 - HOW?

Improvement Annual Breakthrough

Identify Key Driver Processes

PCT Step 4 - HOW MUCH/ WHEN?

Determine Measures & Track

PCT Step 5 - WHO?

Current Team B 45% Relative

Identify Key Resources & Deploy

Daily Management and Hoshin Planning

Year 0 Year 1 Year 2 Year 3 Year 4

PCT & the Top Level HP Matrix

WHAT = Primary Responsibility

Complete Top Level HP Matrix

FAR 3-5 Year

MUCH = Primary Responsibility

1- WHAT = Secondary Responsibility

The whole picture of your company on one sheet of paper!

Linkage on the Matrix

Points to Remember about the Matrix

• The dots are

to be used as Top Level

• The Improvement Resources

SECOND LEVEL - Plant

to the lower level

Transferring Improvement Priorities to the 2nd Level

TOP LEVEL The 2nd level 12 o’clock and 3

onto the 2nd

Level HP. 3-5 Year

Typically, a 2nd Level

for each top-level Priorities