The document outlines six steps to aligning strategies with operations: 1) Develop a strategy map, 2) Identify key performance indicators, 3) Establish standard documentation systems, 4) Deploy measures across all areas, 5) Establish a review system, and 6) Institute visual management. It emphasizes that alignment requires continuous effort to translate strategic plans into actionable measures, communicate goals across levels, and regularly review performance to ensure gaps are addressed. When properly implemented, a business operating system using these alignment practices can lead to improved processes, productivity, cash flow, and overall company performance.

1. Aligning Strategies with
Operations
by Norma Simons
presented at
The AEC Luncheon
The Ohio State University

2. Outline
• Food forThought
• The Path to Alignment
• Step 1: Develop a Strategy Map
• Step 2: Identify Key Performance Indicators
• Step 3: Establish a Standard Documentation System
• Step 4: Deploy Measures in all areas
• Step 5: Establish a Review System
• Step 6: Institute aVisual Management
© 2015 Performance Innovation LLC

3. Food for Thought
• Can you execute your strategic plan?
• Is your organization aligned?
• Are you able to hold people accountable for performance?
• Do you struggle to meet financial performance at the end
of the month, quarter, or year?
© 2015 Performance Innovation LLC

4. Quotes
• “The most critical element in any strategy is its
translation into reality.The only true measure of
success is in its execution. And one of the key
determinants of successful strategy implementation
is organisational alignment.”
• “Alignment the glue to organizational performance”
© 2015 Performance Innovation LLC

5. An Organization with
Vision but Poor Alignment
Gallop Poll of 1.7 million workers found that 67%
could not answer “Strongly agree” with the
statement “I know what is expected of me at
work”
“Great Performance is 1% vision and
99% Alignment”
Jim Collins, author of Good to Great
© 2015 Performance Innovation LLC

6. An Organization with
Vision & Alignment
There is nothing so useless as doing efficiently that
which should not be done at all” —Peter Drucker
© 2015 Performance Innovation LLC

7. Importance of Alignment
• Waste Reduction
• Ease of Communication
• Ability to Respond Quickly to Changes
• Improve Efficiency & Effectiveness
Remember that alignment is not static
Alignment is continuous
© 2015 Performance Innovation LLC

8. Senior Management
Middle Management
Workforce
Closed-Loop System
Horizontal &Vertical Alignment
© 2015 Performance Innovation LLC

9. The Path to Alignment
© 2015 Performance Innovation LLC

10. Step 1: Develop a Strategy Map
© 2015 Performance Innovation LLC

11. Step 2: Create Key Performance Measures
• Relate to the strategy
• Communicate the strategy
• Financial/non-financial measures
• Establish a Feedback mechanism.
BOS
© 2015 Performance Innovation LLC

12. Step 3: Standardize Documentation
• Structured and consistent
• Use of key tools:
-Trend chart
-Pareto chart
-8D Summary
-Paynter chart
BOS
© 2015 Performance Innovation LLC

13. Primary Tools Used
Paynter
Chart
Pareto
Chart
Problem
Solving
Process
Trend
&
Goal Chart
© 2015 Performance Innovation LLC

14. Step 4: Deploy Measures
• Start at the top by defining goals &
strategies
• Translate to key measures at each
level
• Means of linking strategy to tactics
• Organizational alignment.
BOS
© 2015 Performance Innovation LLC

15. Linking Measurements
M
A
R
K
E
T
Process/Departmental
Measures
Organizational
Measures
Individual Measures
© 2015 Performance Innovation LLC

16. Step 5: Establish a Review System
• Structured and consistent
• Review of actions impacting key
measures
• Evaluate system effectiveness
• Modify and close gaps.
BOS
© 2015 Performance Innovation LLC

17. Step 6: Develop a Visual Management System
• Common method of communication
• Problems more visible
• Cycle time to correct problems
reduced
• Facilitates daily work
• Promote total employee involvement
• Ties to the Review System.
BOS
© 2015 Performance Innovation LLC

18. © 2015 Performance Innovation LLC
Components
of a
Typical
Business
Operating
System

19. A Structured Business Operating System
© 2015 Performance Innovation LLC

20. A disciplined system used to promote and
manage continuous improvement.
It focuses on the assembly and analysis of data
for key measures that are quickly reviewed
and acted upon by a team.
The Business Operating System
© 2015 Performance Innovation LLC

21. Some Results
• PlantTurnaround - stop loosing money in six months
• Improve cash flow by 200%
• Enhance overall company performance within one year
• Reduce percentage defects by 50%
• Improve OnTime Delivery performance from 60% to 100%
• Improve inventory turns
• Develop teams across functional units
• Improve productivity by 40%
© 2015 Performance Innovation LLC

22. Presenter
Norma Simons
Lean Six Sigma Master Black Belt
President
Performance Innovation LLC
Novi Michigan
www.performance-innovation.com
norma@performance-innovation.com
© 2015 Performance Innovation LLC