Use the Catchball Process to Reduce Ambiguity

To reduce ambiguity and misinterpretation during the planning phase of Hoshin Kanri management uses a fact-based inter-level negotiation process known as “Catchball”. The word “catchball” denotes a simple social game in Japan in which a circle of young children throw a baseball back and forth. It metaphorically describes a participative process that uses iterative planning sessions to field questions, clarify priorities, build consensus, and ensure that strategies, objectives, and measures are well understood, realistic and sufficient to achieve the objectives.

Hoshin planning begins with the senior management identifying the strategic outcomes/goals to be achieved, complete with deadlines. Once determined, the ‘challenges’ are sent to the operational units who break them down and determine what each unit and person has to do to be able to achieve the management objective. They then bounce the ‘ball’ back to senior management who catches it and determines if the execution committed to will be satisfactory or not. If it is not, the ‘ball’ is bounced back to the operations folks again who catch it and respond accordingly.

The conversation about strategic objectives and means widens as top management deploys its strategy to middle management because managers throw ideas back and forth from one level of the organization to another. There are three major benefits to catchball. First, it opens up new channels of communication between company leaders and process owners, which greatly improves the quality of the organization’s shared knowledge about its processes, people and relationships. Second, it forges new relationships necessary to execute the strategy. Third, by engaging middle and even front line managers in genuine give-and-take negotiations—that is, by getting their buy-in—Hoshin dramatically reduces the cost of getting people to do what they’ve agreed to do.

In short, catchball is a disciplined multi-level planning methodology for “tossing an idea around.” It takes strategic issues to the grassroots level, asking employees at each level of management to “value add” to the plan based on data analysis and experience of their functional areas.

President Dwight D. Eisenhower was on to something when he said, “A strategic plan is nothing but a dead letter. It comes to life only through discussion and negotiation.”

Catchball requires that the people who deploy downward engage in some kind of data-based conversation with the people who design the plans. There must be sufficient coupling and discussion during the planning process to ensure the strategic plan is clear and realistic otherwise it will be nothing but a dead letter.



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Hoshin Kanri: Setting Management's Compass for Alignment

If management by objectives is so deficient in communicating direction and ensuring cross-functional coordination, then how can managers develop, communicate, and monitor their corporate road maps? The answer is to find an alternative management methodology to disseminate and implement strategic policy in a turbulent operating environment.

Such a planning process already exists. The Japanese call it Hoshin Kanri. The word hoshin is formed from two Chinese characters: ho stands fro “method,” shin means “shiny metal showing direction.” Kanri stands for “planning.” Together, hoshin kanri is used to communicate a “methodology for setting strategic direction,” in other words, a management “compass.”

Hoshin kanri is not a strategic planning tool, it is an execution tool. It is a system to deploy an existing strategic plan throughout the organization. In other words, hoshin management is an idea handler, not an idea generator. It depends on a preexisting statement of direction typically generated by an augmented strategic planning process.

There are many versions of hoshin kanri. However, certain themes recur in many stages of the planning process, at many levels of the hierarchy, and at many levels of abstraction. These principles include:

• Align the organization’s goals with changes in the environment.
• Focus on the vital few strategic gaps.
• Work with others to develop plans to close the gaps.
• Specify the methods and measures to achieve the strategic objectives.
• Make visible the cause and effect linkages among local plans.
• Continuously improve the planning process.

These principles describe certain basic practices associated with the school of total quality management (TQM). In the context of hoshin kanri, they are specifically applied to achieving dramatic and measurable breakthroughs.

At the heart of hoshin kanri is the Plan-Do-Study-Act (PDSA) cycle. Promoted by w. Edwards Deming, this management cycle (sometimes called the PDCA cycle) is an iterative process. A closed loop system, it emphasizes four repetitive steps:

• First, start with an idea and create a PLAN to test it.
• Then, DO adhere to the plan, and take corrective action when necessary.
• Next, analyze and STUDY discrepancies to identify the root causes of obstacles.
• Finally, take appropriate ACTion. If the outcome matches expectations, then standardize the process to maintain the gains. If the results were disappointing, then modify the process to eliminate the root cause of remaining problems. In either case, repeat the process starting again with PLAN.

While these steps appear in a linear sequence, when implemented the phases are best thought of as concurrent processes that can continually be improved.

The hoshin kanri process is sometimes described as the SA/PDSA (Study-Act/Plan-Do-Study-Act) cycle. In the face of changing goals and moving targets, the SA/PDSA cycle reminds members of the organization not only to review pas performance, but also to conduct a qualitative assessment of the next important direction. As the environment changes, the organization can modify it strategic priorities to ensure a dominant position in the eye of the customer.

Hoshin Kanri is the system for setting management’s compass toward True North. It is a tool to align people, activities, and performance metrics with strategic priorities. It can be used to communicate direction, coordinate activity, and monitor progress. It enables members of the organization to work together in the most creative way to define and achieve the strategic intent.



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Lean Quote: Safety Culture and Leadership Behavior

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"The desire for safety stands against every great and noble enterprise." — Tacitus, Publius Cornelius

One of the key predictors of an organizations safety culture is perceived management value of safety, often expressed by the behavior of managers within the organization. It is the leadership behavior therefore of managers that often can be the key to influencing risk taking occurring within organizations.

Leadership behavior and safety culture is related to safety performance in two ways:

1. Organization’s safety culture affects safety performance.
2. Leadership behavior affects safety culture and indirectly affects safety performance.

Leadership is more than just management, and refers to not to just what, but how a person influences and motivates others. For example if a manger walks by an employee not wearing the correct PPE for the job, because they do not notice it is not being worn, the employee can be left with impression that managers do not mind if safety rules are not followed. It is these subtle things or soft signals that can play a major role in safety across the board.

As a leader your behavior affects the safety culture of your organization. Focus on three strategies to achieve world-class leadership in safety and operational discipline:

• Change Culture and Behavior - Build and lead a culture of personal accountability for safety and operational discipline.
• Provide Staff with Knowledge and Tools - Establish, and continue to improve, communicate, and maintain well-defined standards, requirements, and tools that integrate safety into processes and operations.
• Create Safer Workspaces – Through direct observation reduce/eliminate hazards to prevent near miss injuries.

In order to connect safety objectives to safety performance, leaders perform critical behaviors, such as challenging assumptions, describing a safety vision, and providing feedback to other leaders on performance.

As the business climate continues to change, it is critical that we think beyond traditional safety management paradigms that limit leadership activities to detached “prescribe and allocate” roles. Successful organizations are demonstrating that active safety leadership is not only definable, it is also effective. Leaders who harness this knowledge stand to gain significant improvements in safety and at the same time build a foundation for other kinds of organizational excellence.



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Everything in it's Shadow

In 5S there is a saying  "A place for everything and everything in it's place." 5S is a technique that results in a well-organized workplace complete with visual controls and order. 5S produces an environment that’s clean, uncluttered, safe and organized. People become empowered, engaged and spirited.

A shadow board is a device used in the straightening phase of 5S to organize tools and materials. It contains outlines of designated tools to show where they should be stored. Here is an example of the shadow boarding technique from FastCap.




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Creating Good BHAG

Last, Friday in the Lean Quote I introduce a “Big Hairy Audacious Goal”. Remember, a BHAG is different from traditional organizational goals and objectives in that they are way bigger. James Collins and Jerry Porras suggest that a good BHAG has four qualities:

Aligned. Properly set goals can be transformational if they’re tied closely to what is most important to the organization.
Audacious. BHAGs are a breed apart. You’re probably on to something if the first reaction to a BHAG is “impossible!” BHAGs can’t be achieved easily or quickly. They demand different thinking.
Articulate. A good BHAG is a clear target. And it’s real. It’s not in any way a fanciful statement disconnected from the business. Kennedy’s 1961 mission to “land on the moon by the end of the decade” needs no further detail.
Arduous. Easy goals don’t require innovation. A good BHAG does. It’s achievable, but only through different thinking, real struggle, and a dash of luck. If it’s truly impossible—as opposed to perceived as impossible—people will disengage from the process entirely.

And here’s how you create a good BHAG:

1. Conceptualize It
The first step is taking the time to think through and conceptualize a goal you can aim toward that will change your business and/or your life. Let go of constraints and let your imagination takes charge; your BHAG should be overly ambitious and seem unattainable. Here are the other criteria of a BHAG to keep in mind:

• Minimum of a 10-year plan
• Action-oriented
• Innovative
• Compelling and exciting
• This is probably the most difficult part of creating a BHAG. It can take a long time (weeks, months, even years) to identify a goal that is important enough to you to qualify it as a BHAG.

 2. Test It
Now that you have your BHAG in mind, run it through a feasibility check to gauge if it’s a BHAG and really one that you can dedicate the next decade to achieving. Some questions you may want to ask yourself include:

• Is it long-term?
• Is it something people will understand if you share it?
• Will it require you to stretch yourself out of your comfort zone?
• Is it measurable and life changing?
• Does it create momentum?
• Does it excite and stimulate you?

3. Commit to It
Just like you do with any goal, you will need to commit to your BHAG and start forward progress immediately. You can break it down into smaller, measurable chunks, or mini-goals. And make sure you check-in on your progress regularly (I suggest monthly) to dedicate productive focus to your BHAG.

So basically, when you create your BHAG, don't get overly excited or egotistical. Instead, use your understanding of who you are and what you are capable of doing to create realistic, but challenging, goals. Remember to look into the distant future and always stay true to your organizations core beliefs, morals and principles.



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Celebrating my 500th Blog Post

When I posted my first blog post about two and a half years ago on May 23, 2009, not for one moment did I anticipate 500. But I confess that I enjoy it – I hope a pleasure for you as well.

In this post, I thought I’d chronicle my blogging experience by looking back at some of my blog posts.

1st Post:

In my first post I set out to explain my thoughts on Lean and why I wanted to share my journey with you.  Little did I realize at that time that I would learn more from you than from what necessarily share.  The sharing within the Lean community has been an invaluable learning experience.

100th Post:

Lean Thinking has a lot to do with problem solving so in my 100th post I discuss how to define the problem statement.  A properly defined problem in the beginning can save valuable time in solving the right problem.






200th Post:

I started doing the Friday Lean Quote November 13, 2009.  The 200th post was a quote from Charles Kettering on the limitless opportunities from having an open mind.  Since change is so difficult I thought it was important to reiterate the value of having an open mind.




300th Post:

Daily Lean Tips was a feature I started on our facebook page in July of 2010.  As a way to stimulate Lean Thinking I post a comment, tip, or advice on a Lean idea daily.  I share those collective tips every 3 weeks or so in a new edition in a post.





400th Post:

Lean concepts are all around us in our daily lives and from time to time I share those with you.  This post happened to highlight standard work from my son's school classroom.  They have a morning routine with a posted sequence to follow.





Thanks to all of you who read this blog, thanks for your insightful comments and for stubbornly coming back for more.

Out of my 500, which was your favorite post?

Lean Quote: BHAG Acts as a True Catalyst for Team Spirit

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"A true BHAG is clear and compelling, serves as unifying focal point of effort, and acts as a clear catalyst for team spirit. It has a clear finish line, so the organization can know when it has achieved the goal; people like to shoot for finish lines." — Collins and Porras, 1996

BHAG stands for Big Hairy Audacious Goal, an idea conceptualized in the book, “Built to Last: Successful Habits of Visionary Companies” by James Collins and Jerry Porras. According to Collins and Porras, a BHAG is a long-term goal that changes the very nature of a business’ existence.

BIG HAIRY AUDACIOUS GOALS ARE:
Action-oriented
Clear (who, what, where, by when)
Compelling and gripping ~ people "get it" right away
Bold; bordering on hubris and the unattainable

BHAGs are meant to shift how we do business, the way we are perceived in the industry and possibly even the industry itself. Collins and Porras describe BHAGs on a corporate level as nearly impossible to achieve without consistently working outside of a comfort zone and displaying corporate commitment, confidence and even a bit of arrogance.

BHAGs are bigger, bolder and more powerful than regular long- and short-term goals. They typically take a 10- to 30-year commitment, but they are exciting, tangible and something everyone just “gets” without any further explanation.

For me the key benefit of a BHAG is the focus and change of mindset which it demands. BHAGS cannot be achieved by continuing to do what you did last year and the year before. Incremental improvements a not sufficient it you are to achieve the BHAG. You’re forced to think differently, to work differently and to break away from that which worked in the past. A real BHAG require people to behave and act differently. Lastly a real BHAG is accompanied by a true sense of urgency.

Bold visions stimulate progress, ignite passion, focuses the mind and fires up the imagination. They ensure that you focus on what’s important and are influenced by unnecessary distractions. Big bold visions break the back of mediocrity and small mindedness. Don’t settle. Aim high, make a dent in the universe.

If you can envision the big picture and are ready to take a bold and life-changing step, then it’s time to develop a BHAG.


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