QFD for product & business development

Executing a Collaborative Business Strategy

Executing a Collaborative Business Strategy

Policy deployment employs a system that aligns the actions of its people to produce collaborative action among the various business functions and processes to enhance the value an organization delivers to its customers.

Executing a Collaborative Business Strategy – Introduction

   Organizations that achieve their goals in the long term “plan their work and work their plan.” Realization of strategy – the long-term vision of an organization is achieved by a disciplined approach to setting direction and then executing that direction through the effective use of an organization’s resources – its processes, capital and people. In Japan this method is called policy deployment. Policy deployment is a strategic direction setting methodology used to identify business goals as well as formulate and execute major change management projects throughout an organization. It describes how strategy cascades from vision to execution in the workplace through a collaborative engagement process which results in implementation of the plan through linkages to daily management methods such as performance self-assessment and management review. This article describes how policy deployment relates to strategy development and the daily imperative to measure and manage operations – the linkage of the strategy, operations and people processes of an organization. Policy deployment employs a system that aligns the actions of its people to produce collaborative action among the various business functions and processes to enhance the value an organization delivers to its customers.

Historical Development of Policy Deployment

   What were the circumstances under which policy deployment originated? Interest in strategy, market focus, and long-term planning were generated by visits of Dr. Peter F. Drucker to Japan in the early 1950s. As a result of his teaching, “policy and planning” was added to the Deming Prize checklist in 1958. Bridgestone Tire Corporation developed the first iteration of a policy deployment system in 1965. In 1976 Dr. Yoji Akao and Dr. Shigeru Mizuno coached Yokagawa Hewlett-Packard (YHP) in implementation of a more fully developed system as part of the company’s pursuit of the Deming Prize. By 1982 YHP had used this approach to manage a strategic change that, in just five years, had moved it from the least profitable HP division to the most profitable. In 1985 this methodology was introduced to the rest of the company as a lesson learned from the YHP Deming Prize journey. From HP it was transferred to other leading companies including: Proctor & Gamble, Ford, Xerox and Florida Power & Light, involving several advisors and councilors of the Union of Japanese Scientists and Engineers (JUSE). The work of the GOAL/QPC Research Committee, directed by Bob King, also extended the exposure of policy deployment to some 40 member companies and was a key ingredient in introducing policy deployment across North America and, through multi-national companies, into the world. From Xerox Corporation the concepts of policy deployment were transferred to the United States government in a planning system developed under the Clinton administration called the Government Performance Results Act (GPRA) of 1993 which currently governs planning at the executive level of cabinet-level departments in the United States federal government and cascades actions down to their distributed operating units.

by Gregory H. Watson

Read the full article →PDF First Step in Modern QFD – Policy Deployment

Facebooktwittergoogle_plusredditpinterestlinkedinmailFacebooktwittergoogle_plusredditpinterestlinkedinmail

Leave a Reply