7 Steps for Strategy Deployment: Mastering the X Matrix (Hoshin Kanri)

December 12, 2024
7 Steps for Strategy Deployment: Mastering the X Matrix (Hoshin Kanri)

7 Steps for Strategy Deployment

"If you don't know where you are going, you will probably end up somewhere else" - Lawrence J. Peter

The X Matrix, also known as Hoshin Kanri, provides a comprehensive process to develop and align Strategic Goals through to annual priorities, targets, and owners. This guide outlines the 7 key steps within this process.

Step 1: Create a Vision

Consider the following key questions:

  • What is the Purpose of the Organisation?
  • Why do we exist?
  • What does the ideal future of the business look like?

This step can take many creative revisions, starting with ideals and refining to key words or phrases that define your ideal future state.

Step 2: Define Your Long-term Strategic Goals

Identify the key SMART transformational objectives the organisation will deliver en route to the Vision:

  • Select a maximum of 3 to 5 strategic objectives
  • Ensure alignment with the Vision statement
  • Choose objectives that will truly transform the organisation
  • Ensure objectives are specific and measurable
  • Look 3 to 5 years into the future

Example: Increase New Production Introduction Growth by 45% profitably by 2024

Step 3: How Far Will We Go in the Current Year?

After establishing long-term transformation objectives:

  • Identify how far the organisation will progress in the current year
  • Ensure annual objectives directly align with Strategic Objectives
  • Confirm that achieved objectives will deliver a percentage of the long-term strategic goal

Example: Implement 3 New Products by Q4

Step 4: Identify Key Annual Priorities

After establishing current annual goals, identify key transformation priorities that will deliver these goals.

Example: Optimise New Product Introduction Process

Step 5: Identify Target for Each Priority

For each priority:

  • Identify the expected output when the priority project is delivered
  • Review against annual goal to ensure priorities will deliver the objective
  • Ask: "If I deliver this target, will it deliver the annual objective and by how much?"

Example: Reduce NPI Leadtime by 50%

Step 6: Identify Sponsor and Leader for Each Priority

For each priority, identify:

  • Sponsor (S): A senior role ultimately wanting the project to succeed. Develops the charter with the Leader and provides ongoing support.
  • Project Leader (L): Responsible for day-to-day project management and delivering project results.

Step 7: Linking Steps 1 to 6 Together

Connect each part of the X Matrix using linking boxes:

  • Include a circle or "X" to identify the strongest link between:
    • Strategic goal and annual goal
    • Annual goal to annual priority
    • Annual priority to target
    • Annual priority to Leader and Sponsor
  • Provides a final check to ensure all priorities align with annual goals and strategic goals
  • Highlights potential gaps for the leadership team to address

The X Matrix can be deployed throughout the organisation, with multiple levels possible depending on organisational structure.

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