I’ve been working with a company on a strategy deployment project recently and noticed some common problems across the teams as they’ve worked on their hoshin plans.
1. No, you’re not an army of one. Leaders are smart and experienced, which makes them think that they can develop the hoshin plan on their own. But without including the whole team in the conversation, they may not be fully on board during the year. It’s equally important to include people from other organizational silos so that their efforts are coordinated and aligned with yours. The HR and finance departments would love to know six months in advance that you need to hire two more process engineers, instead of dropping the request on them at the last minute. And you can avoid a lot of heartache if the sales team knows today that you won’t continue work on the new project that one of your customers was hoping for.
2. Projects are not chocolate. More is not better. Leaders are ambitious, and it’s difficult for them to turn down opportunities. However, it’s essential to face reality—there’s limited time, people, and money, and it’s impossible to do everything, no matter how appealing. Even companies that thoroughly analyze expected ROI for equipment or new products are usually not as thorough in calculating it for non-revenue producing projects. But that analysis is critical in enabling you to cull the list of projects from the attractive “nice to do” list to the “must do, can’t fail” list.
3. Fear the walking dead. And the zombie projects. Every group has “zombie” projects that seemed like a good idea at the time. Perhaps the projects seemed small and relatively easy at the outset. Or perhaps a customer pulled a Lucy and assured them that no, really, this time, they really would jack up their orders if the company just made this one change. Even though everyone knows that they should kill these projects, they survive on momentum and a reluctance to forgo possible revenue. Be tough. Kill them. Individually these projects may seem insignificant, but taken together, they compromise the team’s ability to execute on the critical few hoshin priorities.
4. Beware the Hemingway rule of bankruptcy. In The Sun Also Rises, Ernest Hemingway's character Mike Campbell explains how he went bankrupt: “Two ways. Gradually and then suddenly.” In an environment where you’re working on multiple projects at a time, it’s essential to check on progress at least weekly (if not daily). Monthly or quarterly reviews just aren’t frequent enough to identify and deal with the inevitable problems that arise—they lead to the “green-green-green-red” syndrome, where everything is on track until suddenly it’s delayed by two months. Frequent check-ins on projects will increase the likelihood that you’re able to stay on track, and if not, at least have more time to adjust. If former Ford CEO Alan Mulally could convene his top executives for a weekly business plan review, you can manage it, too.
5. For heaven’s sake, not another email. Email is fast, free, and easy—unless you’re using it to stay on top of ongoing projects or to solve problems. Then it’s slow and clunky, and the important information is at risk of disappearing into the bottomless pit of an inbox. It may seem charmingly retro at best, or a logistical hassle at worst, but discussing projects while standing around visual boards that have project timelines, KPIs, problem solving worksheets, etc., posted on them is a better option. Avoid the temptation to deal with problems via a lengthy series of emails. It’s easier and more productive to address them when you’re all standing around the visual management boards, looking at the data together.
6. Look through the windshield. Not the rear-view mirror. We’re so used to looking at lagging indicators that we often don’t realize that they’re useless in helping us improve. You cannot drive forward (safely) by looking at the rear-view mirror. You have to look through the windshield to see where you’re going. If you’re trying to improve corporate culture, don’t just conduct an annual survey or exit interviews—track attrition rates and number of resumes received for job openings. If you’re trying to improve first-pass yield, by all means measure it—but also look at compliance with 5S policies, machine maintenance records and employee training measures. These leading indicators are more useful than lagging metrics. Make sure that you’re choosing KPIs that tell you where you’re going, not where you’ve been.
The mechanics of strategy deployment are actually pretty easy (even if you do use an X-matrix). But the way to make it truly superior to the strategic planning you’ve done in the past and fully reap the benefits of this powerful tool, is to avoid these six pitfalls.
Dan Markovitz is president of Markovitz Consulting, a firm that helps organizations become faster, stronger and more agile through the application of lean principles to knowledge work. He is a faculty member at the Lean Enterprise Institute and teaches at the Stanford University Continuing Studies Program. His book “Building the Fit Organization,” received the Shingo Research Award.