Hi. This is Mark Raven.
This is episode 7. And today's post was published
on January 14 2015 and it's titled strategy deployment as a
series of hypotheses or predictions part 1.
So even with 20 years of experience in studying and
applying and teaching lean principles, I've had relatively
limited experience with the strategy deployment methodology.
I've never had the opportunity to work full-time In an
organization that really had a mature strategy deployment
process and culture. I have had thankfully the
opportunity to learn from many visits to Theta care about how
they do strategy deployment and including helping to lead the
production of a DVD that was published by the Theta Care
Center for Health Care value. I've been able to work as a
consultant where I've been learning from other Consultants
who are more experienced with strategy deployment and I've
supported some of these ongoing efforts in the standpoint of
Coaching people on A3 thinking and pdsa problem-solving areas
where I have more experience. And within the past year, I've
had a chance to work with Karen Martin at a health system.
That's getting started with a brand new strategy deployment
process. So again, I'm supporting them in
those areas where I've got more experience.
Kaizen value stream mapping generally and thinking, but you
back to strategy deployment, I think one key reflection of mine
on Work. And what I've learned is the
following. It seems to me that a strategy
deployment process can be described as a series of
hypotheses that are tested over time.
Strategy deployment is a high-level annual pdsa cycle.
That contains embedded pdsa cycles of analysis, Improvement
measurement and adjustment. So an organization whether
they're practicing lean or not. Generally already has a defined
mission. Owen and articulated Vision a
set of stated values. Now, whether the Mission Vision
Values are correct or not, seems like something that can only be
tested through an ongoing pdsa mindset and reflection over time
over many years and a strategy deployment process from that
Mission Vision and values. An organization defines four,
maybe five key, objectives and goals.
These are called Focus areas that faded care.
So if you go to the blog at lean, Like dot org slash Audio 7
in the post. You'll see a picture of theta
care. CEO, dr.
Dean gruner as he talks about strategy deployment in the DVD
that I mentioned earlier and I've linked to that DVD.
If you go to the blog, so you would see Dean standing in front
of one of the walls and their executive meeting room.
And Theta care is for True. North Focus areas as they're
called our first off safety and quality second customer
satisfaction. And third, people and forth,
Financial stewardship. So those four areas are
important and meaningful. The Theta care is, they might be
two other hospitals, but that doesn't mean, that makes these
four things the right to North objectives that we all must use
or have to copy. But I think, you know, the
hospital Karen. And I are working with, we see a
very similar set of categories. So this this part seems to be
the first hypothesis, which you I could stay like this
hypothesis 1 if we focus our Improvement efforts and close
performance gaps in these four areas we will therefore perform
well as an organization this year and over the long term.
So at the attic are the true. North Focus areas tend to stay
the same each year since they're the compass and the direction
for the organization these shouldn't change every year.
They should be an example of what dr.
W Edwards Deming called constancy of purpose.
These four areas are interconnected and mutually
supportive as a hospital. And Healthcare organization are
a system as Deming would have explained in organization could
choose to change or replace your true, north Focus.
If that initial hypothesis seem to not be working out is
expected over time. You know, it's hard to see how
doing well in a focus area. Like customer satisfaction would
not improve overall organizational performance but
maybe the broader conditions have changed and the senior team
decides at some point that a different key Focus areas should
be brought in instead. So under each of these four
Focus areas, you generally see two to three key, performance
indicators that are tracked and watch closely by the senior
leadership. Team on a monthly basis.
If not more frequently, these specific metrics are chosen
because they're the specific areas in which the organization
needs to improve this year and breakthrough Improvement
projects, managed through a 3s or then chosen to drive
Improvement in those metrics. So that seems to lead us to a
second hypothesis. If we can improve and close or
performance gaps and these key performance indicators, we will
satisfy our need for improvement in our key, Focus areas and
therefore we will be successful as an organization overall.
So you might call these key performance.
Indicators Focus metrics because they're providing Focus to the
senior leadership team within their true.
North Focus areas. So instead of looking at a
hundred different measures for these for True, North categories
and trying to drive Improvement in all of those measures the
strategy deployment approach tells us that it's better.
To pay attention to a few High leverage areas, instead of
spreading our attention and efforts to thin.
I visited one organization a few years ago that bragged about
being down to quote, just 37, Focus metrics.
Well, I guess that's progress as they study.
And adjust over time through pdsa, they might realize that 37
still isn't really focused enough.
Now, Theta care has about 10 of these Focus metrics that they
look at each year. These kpis are focused metrics
change more often than do the true north Focus areas under the
safety and quality Area. Hospital might initially measure
medication, errors and patient falls but after making big
improvements in those particular kpis they might shift to
measuring things like hospital-acquired infections and
overall mortality instead, Changing the kpis after a yearly
strategy deployment. Cycle doesn't mean that it
measures no longer important, that's no longer important to
prevent medical errors. For example, that's likely still
something that's being measured somewhere in the organization
but it means that it's not one of the key indicators that the
senior leadership team needs to be looking at constantly
throughout the year. So how do we close the gaps in
performance? How do we ensure that we have
enough organizational capacity to do so part You, this post
will discuss the next two. Hypotheses are deformed and
tested in the strategy deployment Cycles.
So I think a couple key questions and if you'd like to
comment again, please go to lean blog dot org.
Slash Audio 7 does your organization use strategy
deployment. If so, how would you state the
hypotheses that you're testing and what are the results of
those tests? If you've been working at this
for some time? So thanks for listening if you'd
like to subscribe to the podcast.
You can go to lean blog dot org slash audio for more information
about how to do so and if you have any feedback you can email
me Mark at lean blog dot-org.