plan roadblocks to ncs physical obstacles emotional...

Smart Operational leadership

Figure10.1RightobstaclesPhysicalandemotionalobstaclestonecessaryconditionsaredefinedassingularperformancegaps.

OperationalBusinessResults

DetermineVisionandStrategy

OperationalLeadership

BusinessFunction

Performance

OperationalPlan

5.RightOperationalLeadership

PLAN1.RightGoal2.RightPlan

EXECUTE3.RightExecution

CHECK4.RightReview OperationalExcellence

Alwaysachieveto-dateoperationalgoals

Obstacles•  RoadblockstoNCs•  Physicalobstacles•  Emotionalobstacles•  Threerules•  Operationalizeobstacles•  Checkentirebusinesssystem•  Consideremotionalobstacles


ProductManagement

Marketing

Manu-facturing

Sales

Prod.Dev. CallCenter

Innovation

OrderProcessing

Distributors

CustomersTypeA

CustomersTypeB

Suppliers

TechnologyGurus

Ecosystem

Development-Partners

Value

Value

Value

Income

Income

Income

MARCOMServices Competitors

Figure10.2Obstacles:HinderingprogresstowardNCsMaybelocatedinthefunctioncarryingtheNCorinotherfunctions,anywhereinthebusinesssystem.

OperationalBusinessGoal

CriticalSuccessFactor



Competitors’Plans

Competitors’Plans

Competitors’Plans

Obstacle

Obstacle

Obstacle

Obstacle

Obstacle

DoD

DoD

DoD DoD


Figure10.3WhenwegetaskedtodosomethingweevaluatetherequestemotionallyFranziskaevaluatestherequest“Doyourhomework”,arrivingattheemotionaldecisionYESorNO.

Trigger“Doyour

homework”

EmotionalDecision

0

2

4

6Relevantformygoals?

DidIexpectthis?

CanIcopewiththeconsequences?

Inagreementwithsocialnorms?

Emotionalevaluation


Figure10.4Obstacles,operationalizedasperformancegapsIntuitivephrasingneedstobeoperationalizedintodata-baseddescriptionofthegapofwhichtheobstacleconsists.

NecessaryconditionObstacles

Intuitive(System1) Databased(System2)

95%on-timecustomeracceptance

Wearenotcompetentenoughtoquicklyinstall.

InService,weneed25technicianstrained.Only18aretrainednow.

<6monthsfornewproducts Wetaketoolongtodevelopnewproducts

InProductDevelopment,weneedmanufacturingreleaseafter6monthsofdevelopment.Currently,3of10projectstakemorethan6months.

120m$levelofqualifiedfunnel

Wedonotgenerateenoughleads

InSales,werequire$300Minnewleadsperquarter.Marketingcurrentlygenerates$225M

<8%marketingcostenvelope

Wehavetoomanyproductoptionsandourwinrateistoolow.

InProductDevelopment,wehave98productoptions,shouldhavemax.5

InSales,ouropportunitywinrateis<30%,shouldbe>50%


Figure10.5WorksheetobstaclesearchgridCheckingeverysinglefunctionofthebusinesssystemforobstaclestoachievingnecessaryconditions.Thebusinessecosystemischeckinentirety.Checkincludestheculturaldomain.

Suppliers Enablers CustomersOp.Leadership

EdwardE.Service

ThomasT.SupplyChainWilliamW.

Sales&MktgMaryM.

ProductsJamesT.

Ourculturedoesnotvalue

engineeringefficiency

Weshouldmanagedevelopmentas

projects,don'tdothat.

1.1Productdevelopment:<6months

newproductcycleJamesT.BT(01-16)

WedonottrackTTFasKPI,shouldhaveaccountable

owner

1.2Service:>8hourstimetofixThomasT.IP(03-16)

Engineeringefficiencyisanew

performanceindicator

Wehaveupto98optionsper

product,shouldhavemax5

2.1Marketing:+15%RFQsbyweb

marketingMaryM.BT(12-15)

Welackanagreeduponkeyaccountapproach,shouldhaveoneforall

functions.

Keyaccountopportunitywinrateis<30%,

shouldbe>50%

2.2Sales:$60m

keyaccountsalesFrankF.IP(FY-16)

Nrofpartsis>20.000shouldbe<

2000

3.1Manufacturing:<$25mCOGS

EdwardE.IP(12-15)

Excess/obsolencyis19%

shouldbe<12%

3.2SupplychainInventorydrivencost<

14%ofrevenueWilliamW.IP(03-16)

SeparatingandfocusingonPLsisunpleasantformanagers

Staffsellsproductmix,shouldsellonlyPLAorB

4.1Co-managementSeparateorganizations

forvaluechainsofPLAandB

EdwardE.BT(07-15)

NecessaryconditionsEcosystem InternalSystem

Obstaclestoachievenecessaryconditions

Culturaldomain


Figure10.6Designingtheoperationalplan–Step4:NoteobstaclesfornecessaryconditionsOneormoreobstaclesforNCsloggedintheone-pageplan.

Commitments Obstacles Necessaryconditions Competitors'plans Criticalsuccessfactors Operationalbusinessgoal

Weshouldmanagedevelopmentas

projects,don'tdothatpresently

Ourculturedoesnotvalue

engineeringefficiency

WedonottrackTTFasKPI,

shouldhaveaccountableowner

1.2Service:

>8hourstimetofix

ThomasT.IP(03-16)

(B)Perf.Goal:Topservicerating

>TTF<3days(ongoing)

>65%partsonstock(12-15)

Wehaveupto

98optionsperproduct,

shouldhavemax5

2.1Marketing:

+15%RFQsbywebmarketing

MaryM.BT(12-15)

Keyaccountopportunitywinrate

is<30%,

shouldbe>50%

Welackanagreeduponkey

accountapproach,

shouldhaveoneforallfunctions.

Nrofpartsis>20.000

shouldbe<2000

3.1Manufacturing:

<$25mCOGS

EdwardE.IP(12-15)

(A)Perf.Goal:

Costofmaterial<15%

>Newsuppliercontracts(12-15)

Costofwarrantyis19%,

shouldbe<5%

3.2Supplychain:

Inventorydrivencost<14%of

revenue

WilliamW.IP(03-16)

(B):Perf.Goal:

Finalconfigurationexworks

>CustomerconfigviaWeb(06-15)

Staffsellsproductmix,

shouldsellonlyPLAorB

SeparatingandfocusingonPLsis

unpleasantformanagers

1.1Productdevelopment:

<6monthsnewproductcycle

JamesT.BT(01-2016)

4.1Companymanagement:

Separateorganizations

forvaluechainsofPLAandB

EdwardE.BT(07-15)

2.2Sales:

$60mkeyaccountsales

FrankF.IP(FY-16)

Contributionmargin

2015:$250m

2016:$280m

(A)Perf.Goal:

Stableproductdevelopmentcycle

>12mths,ongoing

(B)Perf.Goal:

$8msales/head

>50/50incentivescheme

>Salesworkfromhome

Bothongoing

(A),(B)Perf.Goal:

Profitbycountry,ongoing.

Noplansforseparateunitsby

productlines.

1.Advantage

intrendsinuserneeds

2.Highlyeffective

salesfunction

3.Worldclass

lowcostorganization

4.Highlyfocused

productlineteams


Figure11.1RightoperationalcommitmentsBindingpromisestoovercomeobstacles.Definedwithrightcontentandrightforexecution.




BusinessFunction

Performance

OperationalPlan






Commitments•  Bindingpromisesfornewsystemstates•  Fourrules•  Operationalizecommitments•  Phrasetoovercomeobstacles•  Searchentirebusinesssystem•  Provecausalconnection


Figure11.2Operationalcommitments:PromisesfornewsystemstatesStatestobeachievedtoovercomeanobstacletoanecessarycondition.Locatedinafunctioncontainingtheobstacleorinanyotherfunction.

6of47salesprofessionalsarecompetent

invaluebasedselling.Allshouldbe.(Sales)

Avalue-basedselling(VBS)methodologyisselected(MarketingManagement,

Jan.31,2016)

SalesmanagementandsalesstaffaretrainedinVBS

(SalesManager,March31,2016)

TheVBSmethodologyincludesourproductroadmap(ProductDevelopment,

June30,2016)

Salestokeyaccounts$20M(=+15%)(GM,2016)

ProductManagement

Marketing

Manu-facturing

Sales

Prod.Dev. CallCenter

Innovation

OrderProcessing

Distributors

CustomersTypeA

CustomersTypeB

Suppliers

TechnologyGurus

Ecosystem


Value

Value

Value

Income

Income

Income


OperationalBusinessGoal




Competitors’Plans

Competitors’Plans

Competitors’Plans

Obstacle

COM

COM

COM


Figure11.3Commitmentmilestones:TwotypesofintermediateDoDsDelivering:tocheckprogressagainstthecommitment’sDoD.Building:tocreatetheprerequisites.

FEB

Trainingcontentnot

defined

Trainingagendadefined

Notrainingmaterialavailable

Trainingmaterialdeveloped

IntermediateObstacle

IntermediateDoD

Notrainingplan

defined

Trainingscheduleconfirmed

OCTSEPAUG

Buildingmilestones

8SalesEngtrained

OCT

32SalesEngtrained

JAN

22SalesEngtrained

DEC

16SalesEngtrained

NOV

DoDmilestones

46SalesEngaretrained


Figure11.4Theeco(German:öko)bagShowcaseexampleofresolvinganobstacleby„goingaroundit“.(cartonbox,folded)


Figure11.5Definingcommitments–Worksheet(Example)Searchingtheentirebusinesssystemforcommitmentsrequiredtoovercomeobstaclestonecessarycommitments.

Suppliers Enablers CustomersOp.Leadership

EdwardE.Service

ThomasT.SupplyChainWilliamW.

Sales&MktgMaryM.

ProductsJamesT.

CCPMinusefornewproducts

(05-15)

Weshouldmanagedevelopmentasprojects,dothatpresently

Engineeringefficiencyworkshopallengineers(02-

15)

Ourculturedoesnotvalueengineeringefficiency

ServicesupervisorsmanageTTFasKPI

(06-15)

WedonottrackTTFasKPIshouldhaveaccountableowner


Fiveoptionsonlyonpricelist(10-15)

Wehaveupto98productoptions,perproduct,

shouldhavemax5

2.1Marketing:+15%RFQsbywebmarketing

MaryM.BT(12-15)

Mustwindealsreviewedmonthly

(04-15)

Dealqualificationisrevised(05-15)

Keyaccuntopportunitywinrateis<30%,

shouldbe>50%

Keyaccountapproachagreedupon(04-15)

Welackanagreeduponkeyaccountapproach,


DesignforassemblyinplaceforPLA

(06-15)

Nrofpartsis>20.000shouldbe<2000

3.1Manufacturing:<$25mCOGS

EdwardE.IP(12-15)

DOAreducedto<1%(12-15)

Costofwarrantyis19%,shouldbe<5%

3.2Supplychain:Inventorydrivencost<14%of

revenueWilliamW.IP(03-16)

Customersinformedoffocused

staff(03-15)

Revisedsalescontractssigned

(06-15)


Engagementworkshopswithmanagers(02-15)


4.1SeparateorganizationsforvaluechainsofPLAandBEdwardE.BT(07-15)

Ecosystem InternalSystem

Commitmentstoovercomeobstacles

Obstacles Necessaryconditions

1.1Productdevelopment:<6monthsnewproductcycle

JamesT.BT(01-16)

2.2Sales:$60mkeyaccountsales

FrankF.IP(FY-16)


Figure11.6Completingtheoperationalplan–Step5:NotingcommitmentsforovercomingobstaclesUponenteringthecommitments,theone-pageplaniscompleted.


Criticalchainprojectmanagementinusefornewproducts

JamesT.(05-15)

Weshouldmanagedevelopmentasprojects,don'tdothatpresently

Allengineersattendedengineeringefficiencyworkshop

EdwardE.(02-15)


ServicesupervisorsmanageTTFasKPIThomasT.(06-15)

WedonottrackTTFasKPI,shouldhaveaccountableowner


(B)Perf.Goal:Topservicerating>TTF<3days(ongoing)


FiveoptionsonlyonpricelistMaryM.(10-15)

Wehaveupto98optionsperproduct,shouldhavemax5


MaryM.BT(12-15)

DealqualificationisrevisedMaryM.(05-15)

MustwindealsarereviewedmonthlyEdwardE.(04-15)

KeyaccountapproachagreeduponEdwardE.(04-15)




WilliamW.(06-15)


3.1Manufacturing:<$m550COGS

EdwardE.IP(12-15)

(A)Perf.Goal:Costofmaterial<15%


DOAreducedto<1%ThomasT.(12-15)


3.2Supplychain:<$285mtotalcostofsupplychain

WilliamW.IP(03-16)

(B):Perf.Goal:Finalconfigurationexworks


RevisedsalescontractssignedMaryM.(06-15)

CustomersinformedoffocusedstaffMaryM.(03-15)

Engagementworkshopswithmanagers

EdwardE.(02-15)



shouldbe>50%



JamesT.BT(01-2016)

4.1Companymanagement:Separateorganizations

forvaluechainsofPLAandBEdwardE.BT(07-15)


FrankF.IP(FY-16) Contributionmargin2015:$250m2016:$280m

(A)Perf.Goal:Stableproductdevelopmentcycle

>12mths,ongoing

(B)Perf.Goal:$8msales/head

>50/50incentivescheme>Salesworkfromhome

Bothongoing

(A),(B)Perf.Goal:Profitbycountry,ongoing.

Noplansforseparateunitsbyproductlines.

1.Advantageintrendsinuserneeds

2.Highlyeffectivesalesfunction

3.Worldclasslowcostorganization

4.Highlyfocusedproductlineteams


NC2.2

NC2.1ObstacleCOM2.11

COM2.11

Obstacle

ObstacleCOM1.22

COM1.21

COM1.12

COM1.11

NC3.2

NC1.2

NC1.1

Figure12.1Allobligationsmustbeconfirmed–otherwise,theoperationalplanisincompleteByconfirmingobligations,ownersacceptaccountabilitytodelivertheobligations’DoDs.

Obstacle

Commitments Obstacles NecessaryConditions Obstacles CriticalSuccessFactors

Obstacle

Obstacle

Confirmed

Confirmed

Confirmed

Confirmed

Confirmed

Confirmed

Confirmed

Confirmed

Competitors’Plans

Competitors’Plans

Competitors’Plans

CSF1

CSF1

CSF1COM3.11


Figure13.1RightexecutionTheentireoperationalteammustengageinexecutingtheiroperationalplan:focusonthegoal,shareprogressinnecessaryconditionsandimpeccablydeliverobligations.




BusinessFunction

Performance

OperationalPlan






•  Onesurfboardforthewholeteam•  Threerulesforsuccess•  Focusonperformanceinbusinessgoal

•  Shareprogressagainstnecessaryconditions

•  Impeccablydeliverobligations


Figure13.2Executingoperationalplans:theentireoperationalteamononesurfboardEveryonemustfocusonthegoalandcontributeascommitted.


Figure13.3TrackingouroperationalbusinessgoalGoalchartshowsactualandforecast,commented.

Contribution margin, M$ Owner J F M A M J J A S O N D

Goal 26 39 52 57 58 61 75 118 154 189 213.8 250

Actual 30 50 66

Forecast 70 75 80

Americas Mary S. 8 13 18 23 24 25 30 59 80 104 118 140

International John W. 18 26 34 34 34 36 45 59 74 85 95.8 110

Skis Robert K. 14 19 24 25 26 27 35 70 92 117 132 152

Snowboards William K. 12 20 28 32 32 34 40 48 62 72 81.8 98

James T.

Regions and Countries

Products

0

50

100

150

200

250

300

J F M A M J J A S O N D

Con

tribu

tion

mar

gin,

M$

Our operational business goal

Goal Actual Forecast

Jan:ShipmentsinDec112%offorecastFeb:NewdistributorinChinaMar:Internationalskisbelowforecast,expecttorecoverinrestofyear

April,May,June:Inspiteofseasonalslowdownexpectstableprogressincontributionmargin


Figure13.4Trackingprogressinnecessaryconditions.SummaryforoperationalplanProgressagainstallnecessaryconditions,bytheirmilestones.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec


JamesT.BT(01-2016)

(A)Perf.Goal:Stableproductdevelopment

cycle>12mths,ongoing


(B)Perf.Goal:Topservicerating

>TTF<3days(ongoing)>65%partsonstock(12-15)


MaryM.BT(12-15)


FrankF.IP(FY-16)


EdwardE.IP(12-15)



3.2Supplychain:<$285mtotalcostofsupply

chainWilliamW.IP(03-16)

(B):Perf.Goal:Finalconfigurationexworks>CustomerconfigviaWeb

(06-15)






Necessaryconditions Competitors'plans Criticalsuccessfactors OperationalbusinessgoalProgressinnecessaryconditions

Contributionmargin2015:$250m2016:$280m



Bothongoing





Figure13.5Trackingprogressagainstnecessaryconditions’DoDsWhendeterminingnecessaryconditions,milestonesweredefined.Basedonthese,trackandshareprogress.

Necessarycondition:<5%defectiveshipments

Actual

Goal

Obstacle:Dominantdefectnotknown.Commitment:AllDEFOAreported(Logistics),starting1101.

Obstacle:Dominantdefect(incompletecabling)notaddressed.Commitment:Completecablingaddedtofullkitlist(Assembly),starting1102.


Figure13.6Whyoperationalplansfail:LowreliabilityTypicaldataforfivedifferentoperationalplans.Notdeliveringobligationsaspromisedisthemostfrequentcauseforfailuretoreachthegoal.

523

178

94

36

0

100

200

300

400

500

600

Defect

Lowreliabilitythedominantcauseforfailureofoperationalplans

Latevsduedate Incomplete Nocontributiontogoal Other

Lowreliability


Figure13.7Personalobligationprocess–ThebackboneofoperationalreliabilityToensurereliabledeliveryofoperationalobligations,everyteammembermustperformtheprocess–likeSwissclockwork.

PersonalObligationProcess

OperationalPlanning

PlanObligation

ConfirmObligation

BuildObligation

DeliverObligation

DefineObligation

AssignObligation

Workinprogress(WIP)

ObligationLog• Weeklyobligationsprints

• Teamupdates

CloseObligation


Figure14.1RightcheckWithdeepreviews(tunedtolevelofoperationalperformance),checkprogressagainstgoalsandplansanddecidehowtoadjustoperationalplans.




BusinessFunction

Performance

OperationalPlan






•  Levelofoperationalperformance

•  Improvemanagementofobligations

•  Refinetheoperationalplan

•  Findingconstraints•  Plantoresolve


WrongplanRebuildplan

GotitwrongFindconstraintRebuildplan

Improveobligationmanagement

LuckywinRefineplan

Improveobligationmanagement

Figure14.2Fourquadrantsofoperationalexcellence–ExamplesUnitBperformsatoperationalexcellence.Theothersneedtogobacktotheirplansandrebuildthem,asrequiredbytheirindividualsituations.

Excellenceinachievinggoals(%ytd)

Excellenceinm

anagingob

ligations(%

obligationsontrack)

100

90

80

70

60

50

D

1209080 100 110

C

E

ExcellenceinOperationalleadership

Refineplan

A

B


Figure14.3WrongplanquadrantActionsdoneasplanned,stillnoprogresstothegoal.

70

72

74

76

78

80

82

84

86

88

90

May June July Aug Sep Oct Nov Dec

Goal Actual

Saladonlyinlunchcafeteria.

Winelimitkept.120km/week


Winelimitkept.200km/week


Noalcoholfor3weeks

200km/week


Figure14.4ImprovingtheobligationspipelineUnderstandingofftrack/ontrackintheobligationspipelinerevealsconstraints.

PersonalObligationProcess

OperationalPlanning

PlanObligation

ConfirmObligation

BuildObligation

DeliverObligation

DefineObligation

AssignObligation

Workinprogress(WIP)

CloseObligation

49 4018 16

1 9

5 1

0

20

40

60

Assigned Confirmed WIP Delivered

Offtrack

Ontrack



Criticalchainprojectmanagementinusefornewproducts

JamesT.(05-15)

Weshouldmanagedevelopmentasprojects,don'tdothatpresently

Allengineersattendedengineeringefficiencyworkshop

EdwardE.(02-15)


ServicesupervisorsmanageTTFasKPIThomasT.(06-15)

WedonottrackTTFasKPI,shouldhaveaccountableowner


(B)Perf.Goal:Topservicerating>TTF<3days(ongoing)


FiveoptionsonlyonpricelistMaryM.(10-15)

Wehaveupto98optionsperproduct,shouldhavemax5


MaryM.BT(12-15)

DealqualificationisrevisedMaryM.(05-15)

MustwindealsarereviewedmonthlyEdwardE.(04-15)

KeyaccountapproachagreeduponEdwardE.(04-15)




WilliamW.(06-15)



EdwardE.IP(12-15)



DOAreducedto<1%ThomasT.(12-15)


3.2Supplychain:<$285mtotalcostofsupplychain

WilliamW.IP(03-16)

(B):Perf.Goal:Finalconfigurationexworks


RevisedsalescontractssignedMaryM.(06-15)

CustomersinformedoffocusedstaffMaryM.(03-15)

Engagementworkshopswithmanagers

EdwardE.(02-15)



shouldbe>50%



JamesT.BT(01-2016)




FrankF.IP(FY-16) Contributionmargin2015:$250m2016:$280m

(A)Perf.Goal:Stableproductdevelopmentcycle

>12mths,ongoing



Bothongoing







Figure14.5RefiningtheoperationalplanStartingfromCSFs,answerfourquestionsforeachitem:Stop?Continue?Improve?New?

CSFs

Stop?Continue?Improve?New?

Competitors


Commitments


Obstacles


NCs



Figure14.6Searchingforcausalclusters:FourcolumnapproachExample.Twofunctionsanalyzed.Contentcoveredforconfidentiality.

Why do we struggle to reach our goal of ..... ?

....

....

....

.... .... ....

....

.... ....

....

....

....

....

....

....

....

....

....

Causalcluster


OperationalGoals

Figure14.7Acausalcluster(schematic)OnobstacleforreachingthegoalisidentifiedinSALES,withconsequencesinCALLCENTERandCUSTOMERSTYPEA.Threecausesinotherfunctionsfound.

ProductManagement

Marketing

Manu-facturing

Sales

ProductDevelopment

CallCenter

Innovation

OrderProcessing

Distributors

CustomersTypeA

CustomersTypeB

Suppliers

TechnologyGurus

Eco-System


Value

Value

Value

Income

Income

Income


Consequence

Obstacle

Cause

Cause

Cause

Consequence

Whydowestruggletoreachourgoalof...?

0

20000

40000

60000

80000

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011


Figure14.8CurrentrealitytreecompiledfromcausalclustersExample.Contentcoveredforconfidentially.

....

.... .... ....

....

....

....

....

....

....

....

....

....

....

.... .... ....

....

....

....

....

.... .... ....

We struggle to reach our goal of ..... because …

...


OperationalGoals

Figure14.9Futurerealitytree:SimulatingtheeffectofresolvingtherootcauseconstraintAssumingtheplannedinjection,predict/simulateforwardthroughthelogictreetotheundesiredeffect(UDE),theeffectivenessofactionsandeventualother/negativeconsequences.

ProductManagement

Marketing

Manu-facturing

Sales

ProductDevelopment

CallCenter

Innovation

OrderProcessing

Distributors

CustomersTypeA

CustomersTypeB

Suppliers

TechnologyGurus

Eco-System


Value

Value

Value

Income

Income

Income


Symptom

Symptom

Symptom

Symptom

Symptom

Symptom

Symptom

Constraint

UndesiredEffect

Symptom

EffectofinjectiononUDE

Resolvetheconstraint(Injection)

Effectonsymptom

Effectonsymptom

Effectonsymptom

Effectonsymptom

Effectonsymptom

Othereffect

Effectonsymptom

Effectonsymptom

Effectonsymptom Injection’s

effectonUDE

0

20000

40000

60000

80000

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017


Figure15.1RightoperationalleadershipTwotasksforoperationalleaders:PECcompetenceandcultureofoperationalexcellence.Neithercanbedelegated.




BusinessFunction

Performance

OperationalExcellenceAlwaysachieveto-date

operationalgoals

Rightoperationalleadership

• LeadthecompetenceinPECcycles• Leadtoestablishandsustainthecultureofoperationalexcellence


OperationalPlan



CHECK4.RightReview


Figure15.2LeadingthePECcycle–FourkeyeventsLeadinglaunchofPECcycle:Operationalplanningworkshop.Leadingexecution:Managementmeetingsandquickreviews.Leadingcheckingplans:Deepreviews.




BusinessFunction

Performance

OperationalPlan






1.Operationalplanningworkshops

2.Meetings3.Quickreviews

4.Deepreviews


Figure15.3TheoperationalplanningworkshopWorkspacewithsystemdiagramontheleftandoperationalplanstotheright.


Figure15.4Operationalplanningworkshop-PerfectlypreparedAllstrategicinformationrequiredforoperationalplanningmustbeavailablefortheworkshop.

OperationalPlan

Informationprovidedbyvisionandstrategy

Triggers&WavesCustomersChannels

Competitors’Products&Services

Performanceofownfunctions

Financialgoalsshortandlonger

range

Commitments ObstaclesNecessaryconditions

Competitors'plans

Criticalsuccessfactors

Operationalbusinessgoal


Figure15.5Operationalplanningworkshop–TwoversionsTostart,agoodenoughorlightversionshouldbeused,toberefinedatthenextdeepreview.

Element Lightversion:GoodEnough Fullversion:Right

Goalchart Incomegoal,linear Incomegoal,withseasonality

Systemdiagram KeyfunctionswithownersAddedvalueascomment

Formultiplebusinessunits,onecommonsystemdiagram

MorethankeyfunctionsAddedvalueasnumericalgoalsIndividualsystemdiagramsby

businessunit

CSFs Productandservicesratedbycustomer

Productsandservicesratedbycustomer

FunctionalperformanceSpeed

Competitors’plans Spottytonone Bothgoalsandplans

NCs DoDs,somedata-based DoD,alldata-based

Obstacles Verbalgapstatements Strictlynumericalgaps

Commitments DoDs,somedata-based DoDs,alldata-based

Milestones Noneorfew Complete,bothfornecessaryconditionsandcommitments

Timing Onefullworkingday 2fullworkingdays


Figure15.6Operationalplanningworkshop-AgendaSixstepsforpreparingtoexecute.

1.   Introduction:Whywearehere•  Ouroperationalleadershipmethodology•  Workshopoutcomes:Operationalgoal,plan

andkeyeventsschedule

2.   Operationalgoal•  Agreed-upongoalchart

3.   Businesssystem•  Agreeonbusinesssystem

4.   Operationalplan•  Developoperationalplan•  Finalreviewofgoalandplan

5.   Keyeventsschedule•  Plan-Execute-Checkcycle•  Datesofquickanddeepreviews

6.   Conclusion•  Calltoaction:Confirmobligations•  Summingup


Figure15.7Mappingthebusinesssystem(Draft,lightversion)Businessfunctionsarenamedwiththeircontribution,bothinternallyandasexternalelementsofthebusinessecosystem.


Figure15.8Keyeventscheduleforexecutionofoperationalsprints(example)WithQuickReviews(monthlystand-upmeetings)andDeepReviews(quarterlysprintreviewmeetings).RapidlyexecutedtooutpacethecompetitionintheoperationalOODAloop.

Jan

JunAug

MaySep

Mar

Feb

Nov

Dec

Oct Apr

Jul

DeepReviewQuarter4

DeepReviewQuarter2

DeepReviewQuarter1

DeepReviewQuarter3

QuickReview

DeepReview


Figure15.9Quickreview:MonthlysprintreviewmeetingThemosteffectiveandefficientmeetingmustbe:limitedto1hour,focusedontheessentialsofexecutingtheoperationalplans.

Details

Date,location Fixedwellinadvance–nosurprisereviews

Plansreviewed Oneatatime

Goal Updateonprogressingoalsandnecessaryconditions

Participants Operationalteamofplanreviewed

Time Timelimitedto1hour

Agenda

Whatwasachieved? 1.   Accomplishmentsofgoals2.   Deliveryofnecessaryconditions.Special

attentiontoNCsaimedatresolvingconstraints

Whatcomesnext? 3.   Forecastandobstaclesforgoals4.   NCs:Milestonesdueinnextperiod,obstacles

Adjustingaccountability 5.   Changesinorganization,ownership

Otheritemsarenotedfordiscussionafterwards


Figure15.10Reviewofplans,traditionalInadeepreviewweWANTtounderstandwhereouroperationalplanwentwrongandhowtoimproveit.

Don’tnobodyeverbring

nobadnewstoavicepresident.


Figure15.11Deepreview:TheoperationalsprintreviewmeetingAgendatunedtotheunit’spositioninthequadrantsofoperationalperformance.

Details

Date,location Fixedwellinadvance–nosurprisereviews

Plansreviewed Oneatatime

Goal Updateonprogressagainstgoalsandnecessaryconditions

Participants Operationalteamofplanreviewed

Time Dependingonpositioninquadrant:1-2days

Agenda

Excellentoperationalleadership(1/2-1day)

Luckywin(1day)

Wrongplan(1-2days)

Gotitwrong(2days)

• Refineplan• Assigndeepreviewobligations

• Findconstraintinobligationspipeline• Plantoresolve• Rebuildplan• Assigndeepreviewobligations

• Findrootcauseconstraint• Plantoresolve• Rebuildplan• Assigndeepreviewobligations

• Findrootcauseconstraint• Findconstraintinobligationspipeline• Plantoresolve• Rebuildplan• Assigndeepreviewobligations

Newormodifiedbusinessunits:Operationalplanningworkshop


Figure15.12LevelsofcompetenceOperationalcompetenceshowsinresultsachievedthroughuseofprovenmethodsknownandusedwidely.

Level Methods Use Results

5 CanteachManynewmethods

developedEverywhere

Faraheadofcompetitors

4 CanleadAfewnewmethods

developedManyplaces

Clearlyaheadofcompetitors

3 CandoFullrangeofexistingmethodsknown

SeveralplacesAheadof

competitorsinsomeareas

2 CantalkSomeexistingmethodsknown

FewinstancesBehind

competitors

1 Cannottalk Unknown Nowhere None


Figure15.13AssessingcompetenceinPECcycles–Summary(Example)SummarizingthelevelofPECcompetenceasassessedinthediagnostictables.

0

1

2

3

4

51.Rightgoals

2.Rightplans

3.Rightexecution4.Rightcheck

5.RightleadingPECcycles


Figure15.14TheHPWay–Leadingexampleofthecultureofoperationalexcellence

Wehavetrustandrespectforindividuals.Weapproacheachsituationwiththebelief thatpeoplewanttodoagood jobandwilldoso,giventhepropertoolsandsupport.Weattracthighlycapable,diverse,innovativepeopleandrecognizetheireffortsandcontributionstothecompany.HPpeoplecontributeenthusiasticallyandshareinthesuccessthattheymakepossible.Wefocusonahighlevelofachievementandcontribution.OurcustomersexpectHPproductsandservicestobeofthehighestqualityandtoprovidelastingvalue.Toachievethis,allHPpeople,especiallymanagers,mustbeleaderswhogenerateenthusiasmandrespondwithextraefforttomeetcustomerneeds.Techniquesandmanagementpracticeswhichareeffectivetodaymaybeoutdatedinthefuture.Forustoremainattheforefrontinallouractivities,peopleshouldalwaysbelookingfornewandbetterwaystodotheirwork.Weconductourbusinesswithuncompromisingintegrity.WeexpectHPpeopletobeopenandhonestintheirdealingstoearnthetrustandloyaltyofothers.Peopleateverylevelareexpectedtoadheretothehigheststandardsofbusinessethicsandmustunderstandthatanythinglessisunacceptable.Asapracticalmatter,ethicalconductcannotbeassuredbywrittenHPpoliciesandcodes;itmustbeanintegralpartoftheorganization,adeeplyingrainedtraditionthatispassedfromonegenerationofemployeestoanother.

Weachieveourcommonobjectivesthroughteamwork.Werecognizethat it isonlythrougheffectivecooperationwithinandamongorganizationsthatwecanachieveourgoals.Ourcommitmentistoworkasaworldwideteamtofulfilltheexpectationsofourcustomers,shareholdersandotherswhodependuponus.ThebenefitsandobligationsofdoingbusinessaresharedamongallHPpeople.

Weencourageflexibilityandinnovation.Wecreateaninclusiveworkenvironmentwhichsupportsthediversityofourpeopleandstimulatesinnovation.Westriveforoverallobjectiveswhichareclearlystatedandagreedupon,andallowpeopleflexibilityinworkingtowardgoalsinwaysthattheyhelpdeterminearebestfortheorganization.HPpeopleshouldpersonallyacceptresponsibilityandbeencouragedtoupgradetheirskillsandcapabilitiesthroughongoingtraininganddevelopment.Thisisespeciallyimportantinatechnicalbusinesswheretherateofprogressisrapidandwherepeopleareexpectedtoadapttochange.


Figure15.15Thehigherup,thelessfreetimeIdeally,topmanagersshouldfollowtheItohmodel,focusingonleadingbreakthroughanddevelopment.Inreality,theyonlyhaveasmallshareofcapacityfreelyavailable.

Itoh model

ChiefExecutive

SeniorManagers

MiddleManagers

Supervisors

OtherEmployees

Reality

BreakthroughandDevelopmentActivities

ImprovementActivities

RoutineorMaintenanceActivities

0Timespent(%)100

BreakthroughandDevelopmentActivities

ImprovementActivities

RoutineorMaintenanceActivities

0Timespent(%)100

Workimposed

byourBusinessSystem


Figure15.16Assessingcultureofoperationalexcellence–Summary(Example)Summarizingthelevelasassessedinthediagnostictables

0

1

2

3

4

5

Breakthroughgoalsculture

Teamculture

AgilecultureManagersnotthe

constraint

Positiveemotionsculture


Figure17.1DELTATCockpit:Utmostsimplicity-onesinglescreenservingallusersSamescreenforalluserswithfourelements:Goalchart,obligationworkbench,graphsshowinglevelofoperationalexcellenceandmailbox.


Figure17.2DELTATCockpit–Thetopmanagementtoolforoperationalleadership1.Rightgoal–Goalchart.2.Rightplan–Onepageplan.3.Rightexecution–Goalchart,Quickreview.4.Rightcheck:Goalchart,Deepreview.5.Rightleadership–Excellenceinoperationalleadership.

4.RightReview

Constraint

3.RightExecution

5.Rightoperationalleadership


OperationalPlan



CHECK4.RightReview

1.RightGoal 2.RightPlan

plan roadblocks to ncs physical obstacles emotional...

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