Better Project Selection using Hoshin Planning and Balanced Scorecards

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Just Do Projects or Achieve Real Results?Better
Project Selection Using Hoshin Planning and
Balanced Scorecards
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Six questions we want to answer...

1. Why is project selection so important?
2. How are projects typically identified / selected
   and why are the results not as good as they could
   be?
3. How can you improve the identification and
   selection of projects and the commitment to
   executing those projects?
4. What results can you see when a more strategic
   approach to project selection is taken?
5. How can we help you improve project selection in
   your organisation?
6. What is the next step for you?

Project Ideas from Operational Priorities
Project Ideas from Strategic Goals
Project Ideas from Employees
Project Ideas from Customers, Partners and
Suppliers
Capture Opportunity
Alignment Filter
Feasibility Filter
Qualify Opportunities Select Project
Financial Filter
Project Scoping
Project scoped
Project Allocation
Start Project
Project staffed
Execute Project
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1. Why is project identification and selection so
important?
ROI Results
Business Outcomes
Project Cycle Time ?
Net Savings/Project ?
ROI?
Successful ?
Number of Projects ?
Programme Cost ?
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2. How are projects typically identified
andselected?

• In early stages of maturity... project selection
  largely is driven by local agendas
• Organisations with focus on Six Sigma typically
  use weighted evaluation matrices
• Organisations with focus on Lean often start with
  VSM and choose areas of improvements
• Focus is usually... Tactical

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Ultimately poor project selection will lead to
the death of an operational excellence
initiative...
Cause
Problem
Pain
Consequence
Root Cause
Cause
Problem
Symptom
Pain
Managers Dont Make Time For Project Reviews
Managers Dont Address Project Road-blocks
Managers Dont Provide Enough (or the Right)
Resources to Projects
Lack of Management Buy-in to the Performance
Improvement Program
Managers Dont Ultimately Take Actions Needs to
Liberate Tangible Benefits
Managers Behaviour Does Not Reinforce PI
Principles
Managers Short-circuit Formal PI Approach With
Unsustainable Actions
Managers See the PI Initiative as the Deployment
Leaders Program
i-solutions Global Ltd. 2007
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3. How can you improve the selection of projects
and the commitment to executing those projects?

• Use Strategy Maps to Capture Strategic
  Goals/Assumptions and Engage Leaders

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The Balanced Scorecard ( and strategy maps) helps
us to visualise goals and assumptions
Strategy Map
Financial
Balanced Scorecard
Increase Profit
Maximise Utilisation
Customer
Retain Customers
Low Cost Offer
Internal
Fast Turnaround
Learning
Motivated Crew
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Hoshin Planning The Concept
A Vision Compass
Hoshin Planning is a systematic and disciplined
process to align, communicate and execute
strategy by focusing on those few breakthrough
objectives that give you competitive advantage.
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How Hoshin Works The X Matrix (Basic Concept)
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Balanced Scorecard Strategy Map to X-Matrix
Example
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Weightings can be used in conjunction with
X-matrix to quantify alignment/value

• Value scores derived from weightings on X-matrix
• Risk scores based on appraisal of execution risk
  e.g. Novelty, timing, complexity, resource
  dependencies

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Frequently translation from goals into actions
requires multiple levels of cascade... and review
Show review process happens at multiple levels
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The X-matrix helps us pick the right projects,
the bowling chart help to keep executives focused
X-Matrix Translate Breakthrough Goals to
Improvement Priorities
Bowling Chart Drive Relentless Focus on
Execution/ Improvement
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4. What results can you see when a more strategic
approach to project selection is taken?
Push
Pull
Level 4
Level 1
Level 2
Level 3
Internalize
Scale and Replicate
Align and Integrate
Prove
Primary Focus Projects Programs/Projects Operational Indicators/ Projects Business Objectives
Big Y Time to First Results Financial Return/ROI Operational Performance Business Results
Scope Single SBU/Division Multiple Divisions Company Wide Company Wide
Leadership Energy Deployment Leader/ 1-2 Key Executives Deployment Leader/ MBBs/ Coalition of Key Executives Operational Leaders/Managers Senior Executives/ Operational Leaders
Project Selection Ad hoc/Tactical Weighted Evaluation Criteria Directly Linked to Operational Priorities Directly Aligned With Goals
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The impact of this higher level of ownership and
focus is dramatic
data from 2011 i-nexus survey of 41 organizations
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5. How can we help you improve project selection
in your organisation?

• Challenges

Personal Dimension
Organisational Dimension
2
C
B
Knowledge Skills
Competence Support
Opportunity
Roles
3
Motivation Leadership
Willingness to Change status quo
A
1
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We support you all the way from the idea up
toyour successful implementation

• Training and Coaching
• Efficiently supported by i-nexus

Personal Dimension
Organisational Dimension
Learning Organization (e.g. change and program management)
Organizational Structure (e.g. roles and responsibilities )
Operational Excellence (e.g. X-Matrix and i-nexus)
A
1
Personal Excellence (e.g. talent discovery)
Hard and soft skills (e.g. scientific thinking and facilitation)
Personal Leadership (e.g. visioning, communication)
B
2
C
3
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Deploying Hoshin Kanri with Spread sheets Quickly
Becomes Unsustainable...
X Matrix
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Let i-nexus take the strain....
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6. What is the next step for you?

• For a copy of the presentation and more
  information on i-nexus contact
• paul.docherty_at_i-nexus.com or visit
  www.i-nexus.com
• For more information on training and coaching in
  Hoshin Kanri contact
• enzo.di.nunzio_at_six-winners.com or visit
  www.six-winners.com

There is great power in knowing where you are
going and passion in knowing how as an individual
you fit in! Anonymous