breakthrough planning
Post on 21-Oct-2014
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DESCRIPTION
Breakthroughs in a Mass Ingenuity℠ system of management require people to combine their most creative ideas and most diligent execution to build a competitive advantage.TRANSCRIPT
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ACHIEVING BREAKTHROUGH
SINTRODUCTION
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BREAKTHROUGHElimination of a constraint
that prevents you fromachieving what you want
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LEARNING OUTCOMES
YOU WILL LEARN TO SUCCESSFULLY:
• Develop Breakthrough plans
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Right Tool for the Right Job
Fundamentals Breakthroughs• Quarterly Target Reviews• Maintaining Scorecards• Escalation & Corrective Action
• Build out the Management System Map
• Build out Outcome & Process Measure Scorecards
• Establish Quarterly Review Process
• Management System Map• 7-Step Problem Solving
• Quarterly Target Reviews• Breakthrough Planning• Execution Management
• Build out 3-year Strategy Map• Write Breakthrough Plans• Assign Owners & Develop
Workplans• Establish Quarterly Review
Process
• Strategy Map• 7-Step Problem Solving• Anatomy of a Transformation
CORE DISCIPLINES
WORK TOESTABLISH
SUPPORTTOOLS
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What's Breakthrough Planning Do?
• Drives logical thinking, but leaves lots of room for creativity
• Creates a common understanding of what we are doing, why and how
• Establishes ownership• Sets in motion disciplined execution• Facilitates delegating authority
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Sources of Breakthroughs?
• Vision• Threat• Opportunity• Crisis• Weakness• Any combination
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A Language; A Discipline
• Common Language– Everyone learns to speak the organization’s
language of planning
• Disciplined Thinking – A structured methodology for answering the
why’s, how’s and when’s of the organization’s efforts to translate plans into actions
• Discipline Execution– Makes rationale and ownership clear; linked to a
review cycle to ensure follow through or intervention
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Shared Vision
Key Goal
CompetitiveDemand
Underperforming Critical Process
Major New Strategy
Emerging Technology
Competitor’s Action or Situation
The Push to Breakthrough
CompetitiveOpportunity
Customer Requirement
RegulatoryRequirement
Values
BrilliantIdea
Major Shortfall
FUNDAMENTALSARE OUT OF
CONTROL
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The more out of control our Fundamentals are, the morewe must spend time “IN” the
business; The more in control our Fundamentals are,
the more time we have to work “ON” the business
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Strategy/Initiatives Map
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The Two Types of Breakthroughs
• Performance Breakthroughs– Existing fundamental – Performance significantly
short of what is needed• Capability Breakthroughs
– Missing capability– Needed to meet goals/vision
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Performance or Capability?
• Customer’s are unhappy with how long they have to wait on the phone and it hasn’t gotten better even though we’ve tried
• Products need to be chrome plated and the company has no plating experience
• The company handles in excess of 250 orders a day, up from 100 two years ago. The error rate has climbed to 9%.
• New production workers take 3 months to get to the level of productivity we expect. It’s been that way as long as anyone can remember
• Our fundamentals are out of control—the routine work doesn’t happen as expect and needs regular intervention
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Finding Your Breakthrough
• What is standing between your organization and its goals?
• What keeps breaking down and consumes a lot of resources?
• What’s one of your most critical processes, that if done exceptionally well, would significantly strengthen the company’s competitive position?
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How do you know you have picked the right breakthrough
TEST CRITERIA• Is it doable within 90-180 days? (rarely
longer)• Would it make a real difference in
reaching one of our important goals? • Would it free up time that’s wasted?• Would in improve our market position?• Would we be proud of this
accomplishment?
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Tool SetWhat you want toachieve, why and how you plan to do it
Who needs to dowhat by when
How we’re doingalong the way
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Creating Breakthrough Plans
• Is a logic that creates a disciplined way of thinking through how to best eliminate an obstacle and/or leverage an opportunity
• It creates a language for planning that is inherently execution based; it sets up the DOING
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What do we want, when were done?
1
What obstacles will we have to overcome to achieve our objective? What opportunities exists that we can leverage to achieve our objective?
2
How will we overcome the primary obstacles? What will we do to leverage the opportunities?
3
For each Strategy, what can we measure that would tell us we succeeded in pulling off that strategy?
5What measurable thing will tell us we have achieved our objective?
4
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The Logic
OBJECTIVE STRATEGIES SUBTARGETS
TARGETS
SITUATION:
1. OBJECTIVE
2. SITUATION
3. STRATEGIES
4. TARGETS5. SUBTARGETS
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The Reality
OBJECTIVE STRATEGIES SUBTARGETS
TARGETS
SITUATION:
OBJECTIVE
SITUATION
STRATEGIES
TARGETSSUBTARGETS
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The Logic
OBJECTIVE STRATEGIES SUBTARGETS
TARGETS
SITUATION:
1. OBJECTIVE
2. SITUATION
3. STRATEGIES
4. TARGETS5. SUBTARGETS
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"In the absence of adestination, any which way
will do."
AliceAlice in Wonderland
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The Objective
DESIRED OUTCOME• Begin with the end in mind; What end
state do you want to achieve– It is written in future tense (what it will be)– It contains a few words as possible (simple,
clear)– It is agreed upon– It does not contain measures/numbers– It does not contain cause or the reason why
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ObjectiveAsk:1. What do you want to
accomplish?2. When this is all done,
what is it you want to have in place?
3. Is there any ambiguity in any of the words in the stated objective? Keep it short!
4. Does everyone agree to the objective without hesitation -- if there is some doubt, explore it fully
Hints:1.This is your starting point
of your plan, from it all else emanates: be precise!
2.Fuss over EVERY word to make sure EVERYONE has a common understanding
3.If ANYTHING is unclear, keep working!
4.Do not include numbers or measures (those are covered in Targets)
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OBJECTIVE EXAMPLES
WRONG RIGHT
Train Customer Service Reps So They Can Do a Better Job of Dealing with Angry Customers
Angry Customers Satisfied
Get Our Fundamentals in Place Fundamentals Management Routine
Reduce the Number of Customers We Lose Each Year by 30 Percent
Loyal Customers
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The Situation
OBSTACLES & OPPORTUNITIES• What’s preventing the achievement of
your Objective (OBSTACLES)?• What’s available to leverage that will
help you achieve your Objective (OPPORTUNITIES)?
• What is driving you to want to achieve this objective?
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The Situation
• Set of declarative sentences• Simply descriptive of “what is” relative to
the objective• Do not contain opinions, wishes or blame• Ideally, facts are used to aid the
description• In the end, they only contain obstacles
you plan to remove and opportunities you plan to leverage
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Situation
Ask:1. What obstacles are we
facing, or opportunity is presenting itself, that causes us to need to pursue this objective?
2. What obstacles must we overcome, and opportunities must we leverage, to achieve our objective?
3. What facts & figures do we have that make the obstacles and opportunities clear?
Hints:1. Describe thoughtfully
what is going on2. Agreement on the
Situation is key because it is the basis for agreement on what to do
3. This is the hardest part to do well -- so take your time to think the situation out!
4. In the end, if you don’t need to address a part of the situation, take it out.
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SITUATION EXAMPLESWRONG RIGHT
We need to increase our web sales because they are not what we need them to be.
Web sales in 2008 are $266K, 30% off the budgeted amount. For 2009 the sales target is $320k.
Patients can’t get appointments when they want and when they do come in, they are mad at us.
Patient surveys show dissatisfaction with how long it takes to get an appointment is the lowest of all ratings with only 17% satisfied or completely satisfied. Care providers report frequent verbal negative feedback from patients.
The people who issue group contracts cannot get the contracts out on time and that means when new customers file claims we cannot process them because we do not have the policy we need to understand the coverage they bought.
New Group Contracts issued in the past 12 months were issued on effective date 39% of the time. Claims is unable to process new claims when there is not a policy in effect.
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The Strategies
WORK TO GET DONE• The work that must be done to
achieve the objectives• What you want to do to
• Overcome obstacles• Leverage opportunities
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The Strategies
DESIRED OUTCOME• Begin with the end in mind; What end
state do you want to achieve– It is written in future tense (what it will be)– It contains a few words as possible (simple,
clear)– It is agreed upon– It does not contain measures/numbers– It does not contain cause or the reason why
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Strategies
Ask:1. How can we overcome
the obstacles?2. What can we do to
leverage the opportunities?
3. Is there any one thing we can do that would overcome several obstacles or leverage several opportunities?
4. What MUST get done to achieve the objective?
Hints:1. Write strategies as
objectives: Define what you want to accomplish, the desired outcome
2. Each strategy is a chunk of work that must be done
3. Assign an owner to make sure each strategy is executed
4. Keep strategies simple, and limit to 3-5 is ideal
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STRATEGY EXAMPLESSITUATIONAL ELEMENT STRATEGY IN RESPONSE
Web sales in 2008 are $266K, 30% off the budgeted amount. For 2009 the sales target is $320k.
Web Sales Meet Plan
Patient surveys show dissatisfaction with how long it takes to get an appointment is the lowest of all ratings with only 17% satisfied or completely satisfied. Care providers report frequent verbal negative feedback from patients.
Time-to-Get Appointment Improved
New Group Contracts issued in the past 12 months were issued on effective date 39% of the time. Claims is unable to process new claims when there is not a policy in effect.
New Group Contracts Issued on Time
Competitors provide comprehensive web portals to their clients and a recent survey of our clients showed 86% would use the portals if they were available.
Comprehensive Web Portal Available to Clients
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The Target
OBJECTIVE ACHIEVED• Specific & measurable (what will
have happened, what needle will move to where)
• Includes a time element (by when)• May include parameters that must be
met as well (within current budget, etc.)
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Targets
Ask:1. What will best indicate our
objective has been achieved? How will we know we’ve been successful?
2. Is it specifically measurable -- then what would be the best indicator to use as the measure?
3. What is the level of performance we expect?
4. If it can’t be measured, what will we accept as the indicator of success?
Hints:1. Things that ARE specific
and numerically measurable are Targets, those that are not are Goals
2. Consider Cost, Quality and Time when picking your measures
3. Be as clear and as precise as possible!
4. Be realistic!
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TARGET EXAMPLESOBJECTIVES TARGETS
Angry Customers Satisfied Escalated customer issues earn “satisfied” or “completely satisfied” rating ≥70% by 6.30.09.
Fundamentals Management Routine
Quarterly Business Reviews conducted within 14 working days of end of each quarter; ≥85% of scorecards installed by 12/31/09.
Loyal Customers ≥80% of customers do business with us 2 or more times a year by the end of 2009.
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The Subtargets
STRATEGY ACHIEVED• Specific & measurable (what will
have happened, what needle will move to where)
• Includes a time element (by when)• May include parameters that must be
met as well (within current budget, etc.)
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Sub-Targets
Ask:1. What will best indicate our
strategy has been achieved? How will we know we’ve been successful?
2. Is it specifically measurable -- then what would be the best indicator to use as the measure?
3. What is the level of performance we expect?
4. If it can’t be measured, what will we accept as the indicator of success?
Hints:1. Things that ARE specific
and numerically measurable are Targets, those that are not are Goals
2. Consider Cost, Quality and Time when picking your measures
3. Be as clear and as precise as possible!
4. Be realistic!
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The OptionsWhen the tasks are straightforward
When the plan is complex and requires more detailed thinking before the tasks are straight forward
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REVIEW TABLE
OBJECTIVE/STRATEGY ACTUAL PERFORMANCE SUMMARY OF ANALYSIS IMPLICATIONS FOR FUTURE & LIMITS S/C/T OF DEVIATIONS
Prepared by: Date: Fiscal Year: Location/Department:
S = Status: on target behind plan far below expectations metrics or strategy changeC = Concern for Future: H High M Moderate L LowT = Trend: data shows improvement since last review; data shows decline in performance since last review
From the BREAKTHROUGH Planning Table
What was the root cause of this deviation? Ask the five “whys”
Record changes in objectives, strategies, redeploy- ment plans, record lessons learned and provide record for changes.
Where am I year-to-date?
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The First BreakthroughNOT STARTED………………………………………………………………. COMPLETED
0 1 2 3 4 5CRITICAL PROCESSES
1 Critical processes identified2 Process owners assigned3 Key Activities/Sub-Processes finalized4 Process measures finalized5 Management System Map completed
SCORECARDS1 Red/yellow/green ranges agreed upon 2 Frequency of reporting established3 Historical data gathered (if available)4 Procedure for owners to update understood5 Scorecards built out and fully populated with available data
CORRECTIVE ACTIONS1 Escalation policy approved2 Escalation "triggers" defined3 Escalation policy communicated4 Process owners trained in 7-Step problem solving5 First corrective action plan written6 Corrective actions in place for processes per policy
BUSINESS REVIEWS1 Reviews scheduled for the current fiscal year2 Preparation checklist finalized3 Groundrules for reviews agreed upon4 First formal business review completed
SECTION TOTALS Your CompletionCRITICAL PROCESSESSCORECARDSCORRECTIVE ACTIONSBUSINESS REVIEWS
TOTALS 100
TOTAL
20
IMPLEMENTATION LEVEL
100% Complete252530
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Prepared By:
John Bernard Date: December 5, 2008
Fiscal Year: 2008
Entity: My Company
Division/Department: CEO
Situation: Other than a budget and some annual goals, the company has never formally managed the performance of its most critical routine work. While the company has done some process work, it has not identified, agreed upon, documented and assigned ownership for what is sees as its most critical routine work. The company tracks cost budgets and sales performance, but it has not clearly measured/ monitored the performance of its fundamental work nor has it set expectations for performance levels. Problems do occur in the business, but there has never been a formal policy or practice as to when corrective action is expected nor what kind of action is considered appropriate. The review of routine work has been informal, and mostly done in 1-on-1 meetings between managers; there has been little visibility of how things are going and accountability has been almost exclusively between the manager and their subordinates. The company’s vision calls for creating a “greater sense of accountability and ownership” yet no mechanism exists to cause this to happen. Today employees cannot see how what they do impacts the company, yet this factor is proven to be a huge contributor to employee engagement and satisfaction. The company’s leadership has stated its commitment to build an “execution” based culture.
Objective
No.
Strategy (Owner)
Sub-Targets
S1. Fundamentals Management
Routine
Targets
Employees rate in 2009 10x10 Survey this question at ≥8.0: I understand what I am accountable for and how well I am doing Business Reviews conducted on time and Corrective Action in Place for 100% of Processes in Red by 12/ 31/ 09.
1.1
1.2
1.3
1.4
1.5
Critical process understood (CEO).
Scorecards in place (CFO).
Corrective actions taken (CEO).
Business reviews routine (CEO).
Fundamentals built into performance expectations for employees (CEO).
Management system map complete, process owners assigned by 3/1/09.
Outcome, process measures approved, ranges set and scorecards fully functional by 6/1/09.
Policy approved by Management Committee by 5/1/09; ≥60 or Critical Processes compliant with policy by 9/1/09, 100% by 12/1/09.
First quarterly business review held within 15 working days of the end of Q2; subsequent QBR’s held within 15 working days of quarter end.
≥80% of employees have fundamental measures in the 2010 performance plans by 1/1/2010.
FUNDAMENTALS BREAKTHROUGH
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Breakthroughs at Every Level
CEO/Company Level
Individual Level
Functional/Process Level
Team Level
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Level One
Level Two
SITUATION
BREAKTHROUGH PLANNING TABLE
SITUATION
OBJECTIVE NO. STRATEGY(OWNER) SUB TARGETS
TARGET/GOAL
Prepared by: Date: Fiscal Year: Location/Department:
Each level isclosely linkedto the next
BREAKTHROUGH PLANNING TABLE
OBJECTIVE NO. STRATEGY(OWNER) SUB TARGETS
TARGET
Prepared by: Date: Fiscal Year: Location/Department:
Layering
RECOMMENDATIONStart with single-layer
plans if possible
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Situation Analysis
Strategies TargetsGOALS
Situation Analysis
Strategies TargetsGOALS
Situation Analysis
Strategies TargetsGOALS
Those Who Need to Be involved are linked in through Planning Tables -- in a
cascading process...
FIRST LEVEL
SECONDLEVEL
THIRDLEVEL
Situation Analysis
Strategies TargetsGOALS
BreakthroughPlanningLayeringLEVELS
Situation Analysis
Strategies TargetsGOALS
Situation Analysis
Strategies TargetsGOALS
Situation Analysis
Strategies TargetsGOALS
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Strategic & Tactical
STRATEGIC BREAKTHROUGHS• Involves most or all of the organization• Limit of 2-3 at any given time
TACTICAL BREAKTHROUGHS
• Involves a subset of the organization• Quantity simply limited by resources available
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Pitfalls/Downside
• Many people have a tough time doing a good job on accessing the Situation -- and yet it is THE key to understanding what to do!
– without agreement on it, there will not be agreement on the response -- the Strategies
• People go crazy by Breakthrough Planning everything: think before you commit the resources
• The biggest temptation is to set unrealistic targets and goals -- perfection is unlikely