best practices in strategic planning · sample by team 16 teams / # of ... hoshin kanri- ongoing...
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Best Practices
in Strategic
Planning Charles Aubrey
V.P. Performance Excellence
AndersonBrecon An AmerisourceBergen Company
1
Where do We Begin?
Foundation
2
Hoshin Kanri Policy Deployment
Management by Planning
Customer-focused Strategic Quality Planning
HOSHIN KANRI
Systematic Approach
Team Oriented – Maximum
Participation
Deploys Quality
Organization Wide
Aligns Organizational
Resources
Creates Maximum
Buy In
3
Strategic Planning Cycle
4
FOUNDATION ENGAGE & ALIGN HOSHIN KANRI
2007 2008 2009 2010 2011 2012
Mission & Vision Yes
Values 7 7 7 6
Goals 3 3 3 BSC 26 BSC 23 BSC 21
Quality Policy Yes
Strategies 6 5 5 + Teams 5 + Teams 5 + Teams
Initiatives 10 18
Projects 70 85 117 52
Organizational Assessment
(Baldrige +/-) Yes
Core Competencies 4
Situation, Market & Growth
Statements Yes
White Paper Yes
SWOT Analysis Yes
Financial Projections Yes
People Involved 6 35 70 130 150 200
Strategic Plan Evolution
5
FOUNDATION
2007 2008
Mission & Vision Yes
Goals 3 3
Strategies 6
Initiatives 10 18
Situation, Market &
Growth Statements Yes
Financial Projections Yes
People Involved 6 35
Strategic Plan Foundation
6
Foundation –Vision, Mission
•To be recognized leader in pharmaceutical packaging through industry leading performance in quality, operational excellence and customer satisfaction.
Vision
•To achieve superior returns and increasing value for all stakeholders by providing a competitive advantage to our customers by high-quality and continuous improvement of pharmaceutical packaging solutions in innovative and cost-effective ways.
Mission
7
Goals:
1) Sales Growth
2) ROCC levels
3) Zero Recalls
Foundation – Goals & Strategies
Strategies:
1) Focused Marketing
2) Strong Regulatory Profile
3) Customer Service
4) Continuous Improvement Culture
5) Leverage Information Technology
6) Process & Product Excellence
8
Initiative:
“Form strategic partnerships/successful
account penetration”
Situation:
U.S. market growing 15% annually
Market/Competitors:
Cardinal Health, Sharp, etc.
Growth:
Market share 30%
FOUNDATION – Examples
9
FOUNDATION ENGAGE & ALIGN
2007 2008 2009 2010
Mission & Vision Yes
Values 7 7
Goals 3 3 3 BSC 26
Quality Policy Yes
Strategies 6 5 5 + Teams
Initiatives 10 18
Projects 70 85
Organizational Assessment
(Baldrige +/-) Yes
Situation, Market & Growth
Statements Yes
White Paper Yes
SWOT Analysis Yes
Financial Projections Yes
People Involved 6 35 70 130
Strategic Plan ENGAGE & ALIGN
10
ENGAGE & ALIGN Statements
•We will be the preferred strategic partner to pharmaceutical and biotech manufacturers supporting their drug development and commercialization activities through industry leading performance, agility and customer satisfaction.
Vision
•Our place in this universe is to provide pharmaceutical packaging excellence and innovation to the world’s pharmaceutical manufacturers so that they may effectively bring life changing and life saving medicines to patients.
Mission
•Customer Focus, Teamwork, Respect, Improve, Engage, Coach Values
•We will engage every employee and customer to continuously improve QUALITY in our processes, achieving world class performance and global regulatory compliance while surpassing customer expectations
Quality Policy
11
White Paper Topics: Global Perspective
Patent Cliff
Regulatory & Quality Requirements
Challenges
Market Segment Perspective
Changing Customer Requirements
Market Diversification
Quality, Service & Technology
Current Situation
Market Environment
Competitors
Customer Needs
ENGAGE & ALIGN White Paper
12
Strengths, Weaknesses, Opportunities
& Threats Analysis
SWOT Vision, Mission,
Values, Quality Policy
Satisfaction Survey Results
Customer & Employee Feedback
Competitive & Regulatory
Data
Horizon Scan (White Paper)
Metric Gap Analysis
ENGAGE & ALIGN - SWOT Analysis
13
Example SWOT
ENGAGE & ALIGN -SWOT Example
Customer Service:
Our customer service distinguishes us from competitors.
Marketing:
The ability to market our newly patented package designs.
Out-Sourcing:
Cost and capital constraints make us a viable alternative to in-sourcing.
In-Sourcing:
In-sourcing could provide sustainable cost savings for customers.
SWOT
Str
en
gth
O
pp
ort
un
ity
We
akn
ess
Thre
at
14
Self - Assessment Mission, Vision, Values, Quality Policy
Workforce – capabilities, diversity, culture,
satisfaction
Customer – requirements, expectations,
drivers
Competitors –environment, changes,
innovations, limitations
Operations – efficiency, effectiveness, quality
Suppliers –roles, key products,
communications
Metrics and Analysis – measure & improve
Results – how do we perform
ENGAGE & ALIGN – Self Assess
15
Value Driven Leadership “To create vision, values, strategy, and governance which are effectively
modeled, communicated, and deployed to motivate each employee and team to achieve their highest potential and performance.”
Surpass Customer Expectations “We meet and exceed customer expectations both stated and
anticipated, and create exceptional value and innovative offerings that delight our customers and engender long term relationships, trust, and loyalty resulting in growth, greater market share and business expansion.”
Superior Technology & Innovation “We encourage creativity, develop innovative solutions and values for
customers, employees, and leadership by leveraging our technology and advancing knowledge.”
World Class Workforce “Create a compelling, sustainable strategy to build and inspire a skilled,
engaged, motivated and diverse workforce.”
Process & Quality Management “We provide ever-improving customer value and sustainability by
developing and operating work processes and systems that create and leverage our strengths.”
ENGAGE & ALIGN – Strategies
Sample by Team
16
Teams / # of Projects:
Value Driven Leadership – 16
Surpass Customer Expectations - 15
Superior Technology & Innovation - 12
World Class Workforce - 11
Process & Quality Management – 31
# of Projects tied to Bonus’s: 28
# of Associates Involved: 130
Teams Included: All Sr. Leaders, All Directors,
Selected Managers, and other Associates
ENGAGE & ALIGN Teams/Projects
17
Value Driven Leadership “Develop & implement a proactive Associate Communication
strategy”
“Develop & implement a formal succession planning program”
Surpass Customer Expectations “Develop Compliance packaging strategy”
Superior Technology & Innovation “Create metrics tree that links all KPI’s to departments”
World Class Workforce “Benchmark, develop & implement a Workforce and Workplace
engagement strategy”
Process & Quality Management “Develop & implement the Visual Factory concept to enhance
communication & visibility”
“Create a Maintenance Excellence benchmarking system”
“Collaborate to develop Core Competencies and intellectual property vision and approach”
ENGAGE & ALIGN Sample Projects
Sample by Team
18
FOUNDATION ENGAGE & ALIGN HOSHIN KANRI
2007 2008 2009 2010 2011 2012
Mission & Vision Yes
Values 7 7 7 6
Goals 3 3 3 BSC 26 BSC 23 BSC 21
Quality Policy Yes
Strategies 6 5 5 + Teams 5 + Teams 5 + Teams
Initiatives 10 18
Projects 70 85 117 52
Organizational Assessment
(Baldrige +/-) Yes
Core Competencies 4
Situation, Market & Growth
Statements Yes
White Paper Yes
SWOT Analysis Yes
Financial Projections Yes
People Involved 6 35 70 130 150 200
Strategic Plan HOSHIN KANRI
19
HOSHIN KANRI - Statements
• To be the preferred partner to healthcare providers and pharmaceutical manufacturers Vision
• To improve patients’ lives by delivering innovative products and services that drive quality and efficiency in pharmaceutical care Mission
• Accountability, Collaboration, Customer Focus, Innovation, Integrity, Passion Values
• We will engage every employee and customer to continuously improve QUALITY in our processes, achieving world class performance and global regulatory compliance while surpassing customer expectations
Quality Policy
• Quality/Continuous Improvement/LSS Culture, Packaging Line Technology & Integration Systems, Unbridled Customer Focus, Packaging Solutions
Core Competencies
20
Best Practices Continue
HOSHIN KANRI – Best Practices
Mission, Vision, Values, Quality Policy, Core Competencies Re-evaluated
5 Strategy Teams
5 Strategies Reviewed and Confirmed
Team Goals Reset: 2011–23, 2012-21
New Projects Selected: 2011-117, 2012-52
White Paper Refreshed
SWOT Renewed
Self-Assessment Retaken
# of Associates Involved: 2011-150,
2012 - 200
21
Develop the Balanced Scorecard Top level processes identified
Senior management identified as Owner
Owners identify top level metrics for each process
•Sales & Marketing
• Project Management, Planning & Purchasing
•Quality
•Operations
•Receiving, Warehouse, Shipping
•AP, Invoicing, AR
HOSHIN KANRI – Core Processes
•President
VP
Level
22
Balanced Scorecard – Level 1
Top level processes
Develop Balanced Scorecard
Review metrics regularly
Identify gaps and take action
Add or change measures & goals from feedback
Measures aligned with 5 strategy teams
HOSHIN KANRI – L1 Measures
23
Develop the Departmental Scorecard Level 2 process identification
Mid level management determine measure for each process to support top level metrics
Regular review, identify gaps, and take action
HOSHIN KANRI – L2 Process Map
• Validation
• Documentation
• Quality Control
• Quality Assurance
• Training
•VP of Quality
Director
Level
24
Level 2 Measures – To Drive Improvement
HOSHIN KANRI – L2 Scorecard
Look deeper for potential root causes to
develop solutions to close the gap
25
Level 2 Measures – ID Specific Project
Develop and deliver a robust training program with an
eye on scrap reduction, eliminating defects, meeting
regulatory requirements and creating and retaining a
talented workforce.
Goal: 40 training hours per associate annually
Execution Goal: This project is to be completed by
Fourth Quarter of FY 2011.
HOSHIN KANRI – L2 Goals/Initiatives
Goal – to close the gap – add project to
strategic plan
During regular review if gap is identified project
may be started at any time
Pro
jec
t
26
Level 3 Measures
Develop Level 3 process maps
Identify measures with goals
Develop associate awareness & accountability:
How does your process impact others?
How do other processes impact you?
How do your actions impact our measures?
How can we improve?
Create new lines of communication
Benchmark
HOSHIN KANRI – L3 Cascade
27
Dive Into the Detail – Level 3
HOSHIN KANRI – L3 Measures
28
Three Year Development Plan
HOSHIN KANRI- Ongoing
Define &
Prioritize
3 Year Strategic
Objectives
1 Yr. Strategic Plan with
Cascaded Initiatives & Measures
Monthly Project/Metric
Reviews by Strategy Teams
Workforce C/C Plans &
Budget
Measures/Goals, Strategies, Projects,
Assessment & SWOT
Mission, Vision, Values, Quality
Policy, Core Competencies & White Paper
Tie to Reviews, Merit Pay, Bonus Structure
& Succession Planning Process
29
Strategic Planning Cycle
3rd Quarter FY1
4th Quarter FY1
1st Quarter FY2 + Ongoing Restart
30
AndersonBrecon
Sales
31
AndersonBrecon
Operating Income
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2009
$10,000
$8,000
$12,000
$14,000
$16,000
$6,000
$4,000
$2,000
32
2010 2011 2012
(000)
33
AndersonBrecon Non-Diversification FY Sales 2010
High Potency , 0%
Traditional , 77%
Scheduled Drugs, 3%
Clinicals, 0%
Generic , 2%
Cold Chain, 2%
Spec/Med Dev, 16%
High Potency
Traditional
Scheduled Drugs
Clinicals
Generic
Cold Chain
Spec/Med Dev
34
High Potency $3,787
2%
Traditional $105,147
65%
Scheduled Drugs
$11,516 7%
Clinicals $13,486 8%
Generic $1,316 1%
Cold Chain $10,450
7%
Spec/Med Dev
$16,349 10%
High Potency
Traditional
Scheduled Drugs
Clinicals
Generic
Cold Chain
Spec/Med Dev
AndersonBrecon Diversification
FYTD Sales - 2012
(000)
35
Comparison of 2010 to 2012
Diversification
FYTD Sales - 2012
0%
77%
3% 0%
2% 2%
16%
2010 2012
$3,787 2%
$105,147 65%
$11,516 7%
$13,486 8%
$1,316 1%
$10,450 7%
$16,349 10%
High Potency
Traditional
Scheduled Drugs
Clinicals
Generic
Cold Chain
Spec/Med Dev
(000)
36
Market Share
Best Practices
in Strategic
Planning Charles Aubrey
V.P. Performance Excellence
AndersonBrecon An AmerisourceBergen Company
37
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