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Hi. 
This is Mark Raven. 

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This is episode 7. 
And today's post was published 

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on January 14 2015 and it's 
titled strategy deployment as a 

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series of hypotheses or 
predictions part 1. 

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So even with 20 years of 
experience in studying and 

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applying and teaching lean 
principles, I've had relatively 

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limited experience with the 
strategy deployment methodology.

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I've never had the opportunity 
to work full-time In an 

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organization that really had a 
mature strategy deployment 

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process and culture. 
I have had thankfully the 

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opportunity to learn from many 
visits to Theta care about how 

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they do strategy deployment and 
including helping to lead the 

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production of a DVD that was 
published by the Theta Care 

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Center for Health Care value. 
I've been able to work as a 

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consultant where I've been 
learning from other Consultants 

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who are more experienced with 
strategy deployment and I've 

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supported some of these ongoing 
efforts in the standpoint of 

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Coaching people on A3 thinking 
and pdsa problem-solving areas 

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where I have more experience. 
And within the past year, I've 

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had a chance to work with Karen 
Martin at a health system. 

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That's getting started with a 
brand new strategy deployment 

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process. 
So again, I'm supporting them in

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those areas where I've got more 
experience. 

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Kaizen value stream mapping 
generally and thinking, but you 

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back to strategy deployment, I 
think one key reflection of mine

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on Work. 
And what I've learned is the 

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following. 
It seems to me that a strategy 

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deployment process can be 
described as a series of 

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hypotheses that are tested over 
time. 

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Strategy deployment is a 
high-level annual pdsa cycle. 

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That contains embedded pdsa 
cycles of analysis, Improvement 

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measurement and adjustment. 
So an organization whether 

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they're practicing lean or not. 
Generally already has a defined 

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mission. 
Owen and articulated Vision a 

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set of stated values. 
Now, whether the Mission Vision 

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Values are correct or not, seems
like something that can only be 

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tested through an ongoing pdsa 
mindset and reflection over time

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over many years and a strategy 
deployment process from that 

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Mission Vision and values. 
An organization defines four, 

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maybe five key, objectives and 
goals. 

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These are called Focus areas 
that faded care. 

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So if you go to the blog at 
lean, Like dot org slash Audio 7

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in the post. 
You'll see a picture of theta 

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care. 
CEO, dr. 

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Dean gruner as he talks about 
strategy deployment in the DVD 

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that I mentioned earlier and 
I've linked to that DVD. 

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If you go to the blog, so you 
would see Dean standing in front

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of one of the walls and their 
executive meeting room. 

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And Theta care is for True. 
North Focus areas as they're 

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called our first off safety and 
quality second customer 

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satisfaction. 
And third, people and forth, 

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Financial stewardship. 
So those four areas are 

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important and meaningful. 
The Theta care is, they might be

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two other hospitals, but that 
doesn't mean, that makes these 

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four things the right to North 
objectives that we all must use 

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or have to copy. 
But I think, you know, the 

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hospital Karen. 
And I are working with, we see a

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very similar set of categories. 
So this this part seems to be 

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the first hypothesis, which you 
I could stay like this 

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hypothesis 1 if we focus our 
Improvement efforts and close 

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performance gaps in these four 
areas we will therefore perform 

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well as an organization this 
year and over the long term. 

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So at the attic are the true. 
North Focus areas tend to stay 

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the same each year since they're
the compass and the direction 

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for the organization these 
shouldn't change every year. 

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They should be an example of 
what dr. 

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W Edwards Deming called 
constancy of purpose. 

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These four areas are 
interconnected and mutually 

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supportive as a hospital. 
And Healthcare organization are 

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a system as Deming would have 
explained in organization could 

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choose to change or replace your
true, north Focus. 

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If that initial hypothesis seem 
to not be working out is 

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expected over time. 
You know, it's hard to see how 

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doing well in a focus area. 
Like customer satisfaction would

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not improve overall 
organizational performance but 

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maybe the broader conditions 
have changed and the senior team

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decides at some point that a 
different key Focus areas should

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be brought in instead. 
So under each of these four 

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Focus areas, you generally see 
two to three key, performance 

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indicators that are tracked and 
watch closely by the senior 

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leadership. 
Team on a monthly basis. 

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If not more frequently, these 
specific metrics are chosen 

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because they're the specific 
areas in which the organization 

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needs to improve this year and 
breakthrough Improvement 

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projects, managed through a 3s 
or then chosen to drive 

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Improvement in those metrics. 
So that seems to lead us to a 

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second hypothesis. 
If we can improve and close or 

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performance gaps and these key 
performance indicators, we will 

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satisfy our need for improvement
in our key, Focus areas and 

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therefore we will be successful 
as an organization overall. 

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So you might call these key 
performance. 

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Indicators Focus metrics because
they're providing Focus to the 

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senior leadership team within 
their true. 

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North Focus areas. 
So instead of looking at a 

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hundred different measures for 
these for True, North categories

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and trying to drive Improvement 
in all of those measures the 

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strategy deployment approach 
tells us that it's better. 

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To pay attention to a few High 
leverage areas, instead of 

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spreading our attention and 
efforts to thin. 

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I visited one organization a few
years ago that bragged about 

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being down to quote, just 37, 
Focus metrics. 

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Well, I guess that's progress as
they study. 

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And adjust over time through 
pdsa, they might realize that 37

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still isn't really focused 
enough. 

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Now, Theta care has about 10 of 
these Focus metrics that they 

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look at each year. 
These kpis are focused metrics 

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change more often than do the 
true north Focus areas under the

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safety and quality Area. 
Hospital might initially measure

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medication, errors and patient 
falls but after making big 

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improvements in those particular
kpis they might shift to 

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measuring things like 
hospital-acquired infections and

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overall mortality instead, 
Changing the kpis after a yearly

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strategy deployment. 
Cycle doesn't mean that it 

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measures no longer important, 
that's no longer important to 

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prevent medical errors. 
For example, that's likely still

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something that's being measured 
somewhere in the organization 

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but it means that it's not one 
of the key indicators that the 

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senior leadership team needs to 
be looking at constantly 

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throughout the year. 
So how do we close the gaps in 

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performance? 
How do we ensure that we have 

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enough organizational capacity 
to do so part You, this post 

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will discuss the next two. 
Hypotheses are deformed and 

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tested in the strategy 
deployment Cycles. 

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So I think a couple key 
questions and if you'd like to 

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comment again, please go to lean
blog dot org. 

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Slash Audio 7 does your 
organization use strategy 

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deployment. 
If so, how would you state the 

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hypotheses that you're testing 
and what are the results of 

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those tests? 
If you've been working at this 

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for some time? 
So thanks for listening if you'd

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like to subscribe to the 
podcast. 

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You can go to lean blog dot org 
slash audio for more information

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about how to do so and if you 
have any feedback you can email 

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me Mark at lean blog dot-org.