What is the first step in the lean transformation process?
This is the first question students and clients ask me. My reply is always "Strategy Deployment."
Here is the second question asked by my students and clients:
Why is Strategy Deployment at Step 1 in your 10-Step model?
Every organization wanting to be involved in a lean transformation must start by answering the key questions raised through the 5W2H process - What, Why, Where, When, Who, How, and How Much.
Without clearly defining each W and H, your organization is not participating in an organizational wide lean transformation process, it is simply conducting a series of potentially sub-optimized point kaizens which are short-lived improvement events.
The primary focus of Step 1 - Strategy Deployment is for an organization to identify and clearly define Why are they doing this, then What are they going to do and Where their business needs to direct its resources to get the "best bang for the buck" from their lean transformation process.
Strategy Deployment came from the Japanese term "Hoshin Kanri". This process was developed by compiling the best practices of companies who competed for the Deming Award in Japan. Strategy Deployment is a tool to help a business define how it must improve to reach its vision. It is an organization's internal GPS to ensure their valuable resources are being directed and focused to improve critical business processes.
The Strategy Deployment procedure requires three inputs:
1. Define where the business needs to be. What is the desired future state (vision)?
2. Collect the performance data for each key business process
3. Gap analysis to determine difference between the current and the future state
The Strategy Deployment procedure generates four outputs:
1. Strategic initiatives which are improvements to reach the future state (vision)
2. Identifies the opportunities for improvement (Kaizen) in key business processes
3. Generates feedback and results from key business processes improvements
4. Develops Standard Work or best practices
In this short video, Chris Turner - Lean Mfg. Coach will give an explanation about Strategy Deployment and why it is so important for it to be Step 1.
I have an individual training module for Strategy Deployment available to purchase. It is from my advanced level training course which is Level 3 - Lean Expert in Manufacturing. For more information click the image below:
Categories: 10-Step Model