How to: Strategy deployment with Hoshin Kanri X-matrices

Over the past 4-5 years, I have been leading diverse teams of senior professionals located in various places across the world from Tokyo to Boston.

Building a common strategy with aligned goals is key

I have been successfully using Hoshin Kanri X-matrices to achieve this.

Click here to access my X-matrix template in google sheets to experiment with:

Breakthrough Objectives (What)

With your team start building your X-matrix.

Start at the 🕡 6 o’clock position and define your 3-5 year Breakthrough Objectives.

Dream big.

Make sure these are truly market differentiators with a maximum of 4 items.

More than this and you will lack clarity of focus.

Annual Objectives (How Far)

Next, build your annual objectives at 🕘 9 o’clock.

This should be directly linked to your breakthroughs:

Focus on the essential goals which lead to the breakthroughs

Choose S.M.A.R.T. goals:

• Financial objectives
• Team Development
• Performance or service outcomes

Priority Actions (How)

At the 🕛 12 o’clock describe the priorities or actions which explain how you can fulfil the objectives

Ensure the team have clarity on how to deliver these.

Describe the action that the priority owner will perform.

• Implement process X
• Enter market Y
• Build Z tool

Targets to Improve (How Much)

At the 🕒 3 o’clock you can define the target to improve (TTIs) or key performance indicators (KPIs)

⚠ This is the most difficult part of the X-matrix.

Poorly defined metrics lead to unwanted outcomes.

For each TTI/KPI define clearly:

• Who will use the KPI?
• What is the data source?
• What is the formula to generate the KPI?
• Who is the KPI owner?

Define team (Who)

Assign resources and connect the dots.

Each priority needs an accountable team member to lead.

They will be responsible to gather the required resources, plan the execution and report the associated TTI/KPIs:

For the final step using the checkmarks in the corners, link together each associated row/column.

This will allow your team to connect all the way around from KPI -> Priority -> Annual Objective -> Long Term Goal

Voila. You’re now set up to go execute!

Benefits

Hoshin Kanri X-matrices help you

• Align the team to the long term goals
• Define short term (annual) objectives
• Explain how (priorities)
• Build relevant TTI/KPI’s
• Identify the resources required and accountability

Your team will now be able to fully link their actions to the global strategy

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