Strategy Deployment

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Strategy DeploymentA discussion of both methods and challengesChris Yockey Clipper Windpower


Discussion Outline

Intro and Background Clipper Windpower Definitions Deployment Methods

Management by Objective Hoshin Kanri Balanced Score Card ISO Baldrige

Quality Management Systems that Support Strategy Deployment

Discussion Points The Mind of the Lean Manager by Jim Womack Resources and References


My Background and Experience


B.A. in Business Management from UNI Working on Masters of Manufacturing Operations at Kettering Human Resource Intern at Beef Products Inc. (Waterloo) Department Manager for Pella Windows and Doors. (Clear Lake)

Work Experience

Developed interest and passion for Continuous Improvement

Quality Supervisor for Beef Products Inc. (Waterloo) Assembly Supervisor for Clipper in March 2007 (Cedar Rapids) Continuous Improvement Manager for Clipper in November 2009


Clipper Windpower

Company Incorporated in 2001 Manufacturing began at Cedar Rapids in 2006

2006 - 8 units produced 2007 - 137 units produced 2008 - 289 units produced 2009 projecting 117 units (no orders cancelled, only delays) Approx. 190 assembly Others include Engineering, Quality, RMDC, Clipper Fleet Service, etc.

Approximately 280 employees in Cedar Rapids

The Facility is 330,000 sq. ft. Manufacturing the 2.5 MW Liberty Wind Turbine

Gearbox, Hub, Machine Base, Rectifiers, Parts Containers Assembled Nacelle, Towers, Generators, Transformers, etc. outsourced4

Clipper Windpower Continued

As a whole, Clipper is in the Energy Business The Cedar Rapids Operations is generally considered a Heavy Manufacturing facility The process is entirely assembly based

no material processing or fabrication work

The company is in the process of developing a 7.5 to 10 MW offshore wind turbine Projected Capacity of the Cedar Rapids facility is approx. 550-600 turbines per year5

The Disclaimer

Not an Strategy Deployment expert Interest in Learning about Strategy Deployment That interest all too quickly transformed into an opportunity to lead this IQC network meeting Ive been dedicating extra time to this particular topic Ive collected and condensed some SD information Many of you probably have relevant experience

Please, stop me at any time for discussion or if youd like to contribute by further clarifying a particular item.6

Focus of Todays Discussion

When suggesting that we discuss strategy deployment, I was most interested in the transition from planning to action. Effectively moving from Plan to Do in the PDCA cycle.

My Approach

Basic Overview of the different Methods Tools associated with those methods Open Discussion Thought Provoking Article7

Why Focus on Strategy Deployment?

The feeling of many good but unaligned goals The need for a consistent top-to-bottom message The importance of management effectively communicating directives in a way that all can engage with and implement. The importance of knowing what activities align with goals. Its a Criteria for Performance Excellence (Baldrige)

Strategic Planning and Business Results are two key criteria for performance excellence

The transition away from command and control, and the frustrating that may accompany it. Bottom line, its a necessary part of realizing success.8



Is a plan of action designed to achieve a particular goal.

The word strategy has a strong military connotation.

Strategy is different from tactics.


To arrange in a position of readiness, or to move strategically or appropriately.

Again, deployment has a strong military connotation In business, it stands for a methodical procedure of introducing an activity, process, program, or system to all applicable areas of an organization

Strategic Management

Developing, evaluating and making decisions that will enable an organization to achieve its long-term objectives9

What is Strategy Deployment?

The nervous system of a business systemGuides planning and action across an organizations total value stream Provides a closed circuit between an organizations business needs and day-to-day activities.


Pre-requisites to Deployment

Company Philosophy and Quality Policy Basic Strategic Planning

Vision and Mission Values Statement SWOT Analysis

Strengths, Weaknesses, Opportunities, and Threats

Any others?11

Discussion Points

Questions we should be asking as strategic planners.

How widely understood is our companys mission and/or vision and the companys top strategy among our employees?

Are certain industries better at this than others? If so, why?

Does your company have a published set of values or beliefs?

How widely known are they? Do they make a difference?

The answers to these simple questions will serve as indicators of the companys ability to effectively deploy a strategy.

A commander cant effectively deploy troops without each of them clearly understanding the mission.12

Methods of Deployment

Management by Objectives

Cascading Objectives and Goals SMART Goals

Specific Measurable Achievable Relevant Time bound

Hoshin Kanri

Catchball, A3-X, and A3-T13

Balanced Score Card

Management By Objective (MBO)

The Principles of Management by Objective

Cascading of organizational goals and objectives

Mission Critical Objectives at the CEO Level Mission Critical Objectives at the Plant Level

Specific objectives for each member

Cascaded Goals through Success Factors

Performance evaluation and provide feedback

Performance Evaluation System14

Management By Objective

Important features and advantages of MBO are:


Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment. Frequent reviews and interactions between superiors and subordinates helps to maintain relationships within the enterprise and also solve many problems faced during the period. The concept of SMART goals15

Better communication and Coordination

Clarity of goals

Limitations and Arguments Against

Over-emphasizes setting of goals, as opposed to the working of a plan Could lead companies to evaluate employees by comparing them to the ideal employee What gets measured gets done W. Edwards Deming

argued that a lack of understanding of systems commonly results in the misapplication of objectives


Discussion Points

When done properly MBO ideally:

improves motivation and communication involves employees in goals setting provides frequent feedback on performance

Is this typically what would be found if a companys MBO process were reviewed?Does MBO provide an opportunity for all employees to provide their input and understand their importance? Any other challenges or short comings experienced by those who have utilized or been a part of MBO?17


Hoshin = direction, a course, a policy, a plan, an aim Kanri = management, administration, or control Hoshin Kanri A method of implementing strategy to get the right thing done. Often referred to as:

Policy deployment, Strategic Initiatives, Management By Policy, Hoshin Planning, Policy Management, Managing for Results, Strategic Deployment and Goal Deployment.


Hoshin Kanri

Purpose and Usage

Long term strategic planning for systems Developing shared strategic goals (compare Balanced Score Card) Continuous organizational improvement Cascading or deploying top management policies and targets down the management hierarchy


Hoshin Kanri

Steps and Skills Required

Planning and Communication

Get Involvement Set the course X-Chart Two Deployment Styles or Target Top-down and Bottom-up

Project Initiation and Execution

Catch Ball Target Deployment

Project Charter Standard Process for follow through Review of what worked and what didnt work20


Hoshin Kanri

Hoshin Kanri can be thought of as the application of Deming's Plan-DoCheck-Act (PDCA) cycle to the management process. The PDCA cycle represents a generic approach to continual improvement of activities and processes. PLAN = a plan of action is developed to address a problem. DO = the plan is implemented. CHECK = information is collected on the control parameters. ACT = the results are analyzed. Corrective action is identified.


Hoshin Kanri

Three key elements

Catchball Project Charter (A3-T) X-Charts (A3-X)



A participative approach to decision-making. Used in policy deployment to communicate across management levels when setting annual business objectives. The analogy to tossing a ball back and forth emphasizes the interactive nature of policy deployment. Used when establishing the terms of the organizational contracts or project charters. Provides employees with an opportunity to review the plan and objective and to respond with their thoughts and ideas.


Project Charter (A3-T)

Boil things down to one page Clarifies that no one person can accomplish a strategy Very reminiscent of PDCA and DMAIC



X-Charts (A3-X)

A bundle of contracts called team charters A visual tool for planning Can appear complex