Home' AME : AME Target Summer 2018 Contents SUMMER 2018 TARGET 29
and front-line tactics that are people-
centric, customer focused, visually
managed and impactful at all levels. It
can’t be done now and then—it takes
the same rhythm and cadence as lean.
You already have many of the tools
and practices. Now it’s time to use
your strategy deployment tool to impact
your entire organization creating the
cadence of execution to capture
incremental improvements every month.
Step 4: Excellence in
execution to deliver growth.
a) Streamline your strategy when you
vividly identify the hill you need
to take: Modern military command-
ers still say “take that hill” because
it works. Those responsible are
empowered to do whatever it takes
to achieve the objective, in a flexible,
ingenious and adaptable way as the
situation evolves. Unless everyone in
your company knows exactly what hill
you’re taking, you’ve got work to do.
b) Simplify your tactics when you find
your “Fitbit Moment”: Fitbit owners
know they need to do 10,000 steps a
day to reach their fitness objectives.
That’s it. Simple, crystal clear whether
they achieved it and, above all, very
doable. Unless your employees have
that level of clarity about the small
behaviors that they need to do every
in place, but it is your management
system that guides them and aligns
them, with a framework of policy and
processes that ensures the organi-
zation can achieve its objectives.
When we look at leading companies
furthest along in their lean journey,
they have structured their manage-
ment system to develop their leaders
Similar to a lean journey, creating enter-
prise excellence throughout the value
chain is a process, undertaken with a
proven roadmap of high-level strategies
Improving operations is the focus of most CI efforts, but they comprise only 30 percent of
the value chain, shown here in gray. Future success demands a more holistic approach.
day to relentlessly do their part to help
the organization achieve their goals,
you’ve got work to do.
c) Do the work: Think about how a team
repeatedly gets to and wins the Super
Bowl. They play to win—consistently.
They practice and fine-tune every area
of their game every week, develop
their high potential players, monitor
and improve their KPIs, create their
own unique plays for competitive
advantage, measure progress toward
their goals with every first down, learn
from setbacks, never take their eye off
the prize and celebrate every victory.
Enterprise excellence takes that type
of commitment, but you already have
the CI methodologies in place—if you
simply extend them throughout the
enterprise. If they’re not already in
place, you have work to do.
Action plan for results
1. Rather than engaging in months of
planning and research, accept that
future business models are basically
good guesses or untested hypotheses.
Instead of writing an intricate business
plan, summarize the future state hypoth-
eses in a simple diagram (value stream
map) of how your company creates
value for its customers and itself. Keep it
always up-to-date and use it to educate
associates and test ideas.
2. Get people out of the building. Have
people go out and ask current and poten-
tial users, purchasers and partners for
feedback on all elements of the business
model, including product features, pric-
ing, distribution channels and affordable
customer acquisition strategies. Use cus-
tomers’ input to revise assumptions, test
redesigned offerings and guide improve-
ments across the total value chain.
3. Look at enterprise excellence as a con-
tinual product development problem and
learn how to practice Agile development.
Agile development works hand-in-hand
with customer development. Unlike the
typical stage-gate product develop-
ment cycles that assume knowledge of
1 Peter F. Drucker, “Managing in a Time of Great Change,” 1995, page 250.
2 Johnson and Johnson Corporation website, http://www.jnj.com/about-jnj/management-approach.
The management systems of com-
panies such as Johnson & Johnson,
Toyota and Danaher are their compet-
itive weapon. For example, to keep its
purpose clear, J&J developed a credo
in the 1940s which is still emphasized
in the company today.
“The success of our enterprise is built
on Our Credo and a unique set of stra-
tegic principles. We are broadly based
in health care. Our focus is on man-
aging for the long term. We operate
under a decentralized management
approach. And we do all this through a
unique culture that values and fosters
the development of our people.”
J&J’s credo fosters
engagement and alignment
Expanding CI Investments
Links Archive AME Target Spring 2018 AME Target Fall 2018 Navigation Previous Page Next Page