All industry sectors have been rocked by several major issues over the last few years:
- Supply chain shortages forced manufacturers to scramble just to get products out the door.
- Labor disruptions due to COVID-19 created operational challenges.
- Rapidly rising material costs forced companies to execute multiple price increases to customers over the past 12-18 months, putting pressure on already stretched teams to manage customer feedback.
Now that these pressing tactical issues appear to be subsiding and business is settling into a new normal, strategic growth and operational excellence are clamoring for much-needed attention as manufacturing priorities.
The trouble is: how do we get our teams to shift from tactical day-to-day issues and instead focus on executing strategic initiatives?
A GPS System for Strategic Initiatives
The most powerful tool that leaders can bring to their teams is Strategy Deployment. Also known as Policy Deployment or Hoshin Kanri, this management process was developed in the 1960s in the automotive industry, and today is used by many of the most respected companies in the world.
So, what exactly is Strategy Deployment? Think of it as a roadmap that guides firms toward the successful execution of their strategy. By implementing Strategy Deployment, organizations can confidently execute the key actions needed to achieve milestones toward breakthrough levels of performance. It’s these breakthrough initiatives that will propel the company to future profitable growth.
The Strategy Deployment Process
Strategy Deployment starts by calibrating the entire organization around a common vision and set of objectives. This brings focus, alignment, and discipline to the forefront, ensuring that every action is directly linked to the overall strategy. No more scattered efforts or wasted resources. Everyone in the organization is on the same page, working together toward a shared goal. All associates understand how their work connects to the larger strategic goals.
At the heart of Strategy Deployment lies the X-matrix, a visual representation of the strategic plan that outlines the key objectives, initiatives, owners, and metrics. This “roadmap” ensures clarity and understanding across all levels of the organization by showing where the organization is headed over the next 3-5 years and how everyone is going to get there.
Unlike traditional strategic planning processes, Strategy Deployment is dynamic. It brings the strategic plan to life. When executed well, teams are meeting weekly to work on key actions that trace back to the initiatives, and monthly to track progress toward milestones. By tracking key performance indicators (called targets-to-improve or TTIs) and regularly reviewing progress, companies can identify areas that require attention and make data-driven decisions to stay on track.
Strategy Deployment in Action
Imagine a company that historically grew at the same rate as GDP but struggled to maximize the potential of newly acquired businesses. These acquisitions were often entrepreneur-owned and lacked investment in sales and marketing. Each plant operated independently, with siloed sales and marketing teams and no common CRM system. It was a recipe for limited commercial leverage and missed opportunities.
But when this company, along with NEXT LEVEL Partners®, LLC, implemented Strategy Deployment, the transformation was astounding. By developing and executing commercial excellence processes as a top strategic initiative, they changed commercial processes systematically across all 20 plant locations.
- They introduced a trademarked market basket approach and implemented industry segment branding.
- They adopted CRM systems, value selling techniques, and sales productivity tools.
- Their channel strategy was revamped, digital marketing efforts were expanded, and pricing practices were modernized.
And the results? Simply mind-blowing.
- A growth rate of 9% compared to the market’s 3%, outperforming its competitors and solidifying its position as a leader.
- Cross-sell revenue grew 35% faster than overall revenue, showcasing the power of a coordinated approach.
- Gross margins increased by 11% through strategic pricing decisions and product mix optimization.
- Brand awareness soared, with thousands of new customers introduced to their products and services.
But it didn’t stop there. Digital marketing efforts paid off, with a significant increase in e-commerce revenue and website traffic. The company’s sales funnel value surged, and customer engagement reached new heights. Strategy Deployment provided the framework and discipline needed to drive these impressive results.
Taking Your Success to the Next Level
If you’re looking to take your company performance to the next level, consider implementing the Strategy Deployment Process. It’s not just about creating a strategic plan; it’s about executing that plan with precision and driving sustainable growth.
Unlock success and set yourself apart from the competition. Reach out if you’d like to learn more about Strategy Deployment. We have helped hundreds of firms implement Strategy Deployment to change the way they execute their value-creation initiatives. With a team led by former executive-level Danaher professionals, we bring a wealth of experience and expertise to companies looking to create breakthrough levels of profitable growth.
Lean consulting, Lean manufacturing, Lean transformation
