Applying a Strategic Framework to Your Organizational Plan
“It’s Groundhog Day … again,” said Phil Connors, a disgruntled weatherman.
In the movie “Groundhog Day,” Phil Connors knew what it was like to experience life as an endless series of tedious events that recur in the same way day after day. And many of us working in online education management — especially in a highly competitive environment — can begin to feel like Phil did.
Receive enrollment targets. Develop and launch annual marketing campaigns. Pursue prospective students. Track students’ applications to completion. Onboard students. Repeat.
But when do you have time to reflect and analyze? When do you pause long enough to identify areas in need of improvement? How do you plan for innovation, growth, or testing when all of your time is spent on the status quo?
In my recent article on building online student services, we discussed the importance of assessing your organizational design and effectiveness to identify improvement opportunities and facilitate high-quality growth. My latest article on the organizational development journey took the discussion a step further to describe the steps involved in developing a multiyear approach to stakeholder engagement around strategic initiatives.
With this article, we address the concept of escape velocity. We’ll show you how a multiyear strategic growth road map can help your organization break free from its Groundhog Day cycle and launch it into tomorrow.
Why a Multiyear Strategic Road Map Matters
In higher education, we’re accustomed to having a university-level strategic plan with broad themes and objectives. These plans are useful in that they allow academic and service units to identify areas of contribution or special projects.
Less common, however, is a performance road map for the unit-level organization itself. Specific programs and functions may have goals, targets, or expected outcomes, but do they collectively add up to something more than the sum of parts? Are teams competing against one another for resources or prospects? Have the true bottlenecks in processes and infrastructure been identified so that teams can tackle them together, or are they each working on problems in a silo?
A multiyear strategic road map aligns the work you and your colleagues are doing today with the work to be done next year — and the year after that — to reach new levels of achievement, performance, and value. This means moving beyond “keeping the lights on” to building a true organizational vision where day-to-day tasks and operations contribute to a larger mission.
The multiyear road map also works to keep everyone accountable, so that the organization can escape the gravitational pull of mere survival, instead moving up through the atmosphere into new spaces and opportunities.
Importantly, the road map is not developed by a small group of people and then handed down from organizational leadership. It requires a strategic conversation across the organization that identifies what winning looks like and how all parties will win together.
Introducing the Hoshin Kanri Strategic Framework
A simple search for “strategic framework” in your browser or artificial intelligence tool will bring up 25 to 50 options, which can feel overwhelming. As you dig into the variety of frameworks, you realize that each has a specific purpose and most are not interchangeable. For example, a strengths, weaknesses, opportunities, and threats (SWOT) analysis can be used to understand your organization’s general position in the current environment, while the Ansoff matrix can help you dive into your individual products and their specific markets.
In our opinion, if you want to develop an organization-wide multiyear strategic road map, the Hoshin Kanri framework is a powerful tool.
The Hoshin Kanri framework originated in Japan after World War II and was historically used in the manufacturing and technology industries (think Toyota). However, the framework can apply to any industry including higher education. The words “hoshin” and “kanri” mean direction and administration, which in this context refers to identifying the most important strategic focus areas for the next three to five years, and then managing activities and delivering against annual objectives in those focus areas.
To fully engage with the framework, there are seven steps that move from vision development to planning and execution to bidirectional feedback management, which makes this framework different from those that only focus on one of those aspects.
At its core, the framework is an iterative blueprint for escape velocity — where everyone’s contributions align and where individuals are responsible for providing direct, productive, and sometimes even uncomfortable feedback about progress, barriers, and how the plans are working. This feedback loop is one of the most powerful parts of the model for organization-wide deep listening and trust-building.
In the next section, we will discuss each part of the framework.
Breaking Down the Hoshin Kanri Model Components
As we walk through the components of the Hoshin Kanri model, remember that models and frameworks are suggestions or guidelines on how to organize a strategy, not directives. Every organization is different, and you should feel free to make the model your own.
Step 1: Establish (or Revisit and Refine) Your Organizational Vision
A multiyear road map, by definition, requires a vision for where your organization could or should be three to five years from now. While it’s easy to understand what you want your organization to “escape” from in terms of the status quo, it’s more work to determine the opportunity space, the direction of progress, and the velocity at which the organization should move there.
This is often the point where organizations need external support: fresh eyes to assess the market opportunities and the organizational development opportunities (e.g., a good, better, best model). Once the organizational vision is defined, communication and socialization of that vision to every individual in the organization is critical for feedback, engagement, and buy-in.
Step 2: Establish Strategic Focus Areas (aka Stretch Goals)
Here’s where your organization places its bets. What are the three to five focus areas that define how your organization will escape the status quo and strategically move into a new level of opportunity, performance, or achievement?
Think big swings that are a stretch but still possible. Think about what would get individuals in your organization excited about the work.
Remember, these strategic focus areas flow from the organizational vision. Some of the areas will be quantitative in nature (e.g., grow enrollments by 20% year over year; improve satisfaction scores by 40%), and some may be more qualitative (e.g., develop an organizational decision-making framework and process). All areas should be measurable.
Step 3: Break Strategic Areas of Focus Into Annual Objectives
In this stage of the process, your organization works backward from those strategic focus areas to plot the annual steps of achievement and progress. These objectives are established at the organizational level.
Step 4: Cascade Annual Objectives Into Programmatic and Functional Objectives
In this stage, program and function leaders develop their annual objectives based on the annual organizational-level objectives and begin to determine the key performance indicators for their teams.
This is also the step where the organization agrees upon an objective-level primary plan owner. Which individual is accountable for progress against the objective, for escalations when progress is impeded, and for communication of wins? Does that individual agree that the resource base to support the objective is sufficient?
Step 5: Execute
In this implementation stage, plans are deployed and progress is measured.
Steps 6 and 7: Conduct Monthly and Annual Reviews
The Hoshin Kanri model builds in regular strategic road map and annual plan feedback loops to ensure bidirectional feedback and iteration are employed where needed.
The frequency of your periodic reviews within an annual cycle may depend on the size and structure of your organization. The model suggests monthly plan reviews. But for some organizations, monthly reviews are too frequent and quarterly reviews are preferred. For other organizations, such as start-ups, monthly reviews are not frequent enough and biweekly sprint-level reviews may be needed.
The core idea is to ensure that those who are implementing against annual plans have the opportunity to discuss progress, blockers, resource concerns, and more so that leadership can determine if adjustments to the plans are necessary.
The annual review is the time to consider progress against the multiyear vision. Is the organization on target? Does the team need to be even more ambitious given evolving market conditions, the competitive landscape, or technological advances? Does the organization need to adjust its resource planning or design to support progress?
Organizational Strategic Road Map: An At-a-Glance View
As you can see from the seven steps detailed above, the Hoshin Kanri model is basically a series of embedded to-do lists with metrics and owners attached to them. The plan can be created in a document that displays the action items in a sequential order with as many words as it takes to describe the holistic plan. There is nothing wrong with this approach, as long as the organization can access, understand, and execute against the plan.
However, there is a way to develop a visual tool — without fancy applications or systems — that summarizes the entirety of the plan so that everyone can see themselves aligned with both the long-term and immediate objectives. This method is called the X-matrix. It works well with a spreadsheet tool, for example. In our graphic example below, we’ve replaced the “X” with a compass visual, but an X works just as well.
Within a box in your spreadsheet, create your “X” by inserting crossed lines. This creates four quadrants. In Hoshin Kanri, these quadrants are classified with compass directions: north, south, east, and west (hence our graphical treatment).
An organization starts with the south quadrant (or bottom of the X). This is where you list the three to five strategic areas of focus. Each area of focus has its own row. In our graphic, these are the bottom three rows in the light blue, orange, and dark blue colors.
In the west quadrant, you can list the high-level annual objectives for the year. Use the spreadsheet rows to enter an “x” where the strategic area of focus (on the bottom) matches the individual high-level annual objective (shown here as columns to the left that correspond in color).
Then, move to the north quadrant. This is where you list the business-level objectives that flow from the annual objectives. What are the specific tasks for each program and function? You can use the spreadsheet rows to enter an “x” where the business-level objective aligns with the high-level annual objective. In our example here, all three business-level objectives in the top rows correspond to the strategic focus area and the high-level annual objective color-coded in light blue.
Keep the east quadrant blank for a moment. This is where key targets or key performance indicators (KPIs) will go, and again, once you complete these, you can use the spreadsheet model to put an “x” where the target aligns with the individual business-level objective. In our version, we’ve used slightly different shades of light blue to show which KPIs go with which business-level objectives.
Go to the Resources section of the spreadsheet. Here you can document the accountable owner of the business-level objective, and use the spreadsheet rows to note with an “x” which owner is aligned with the particular initiative. You can use primary and secondary owners or just stick with primary owners, depending on your organization’s size and structure. These owners can then finalize the east quadrant with the specific KPIs in coordination with organizational leadership.
Depending on your organization’s size and structure, you can develop one master-level version of this multiyear plan, or you can develop one per program or function for ease of use. If spreadsheets are not of interest, there are online applications and services (some are free; some are fee-based) that serve as an interactive platform on which you and your teams can manage the development and tracking of objectives and progress.
Build Your Multiyear Growth Road Map
Engineering your escape velocity from Groundhog Day to the future takes introspection, time, iteration, and communication in all directions. Strategic tools and frameworks, like Hoshin Kanri, are not always necessary, but they can help your teams organize against a vision with plans, processes, and performance conversations.
No matter the tool, framework, or steps you take, the payoff of using introspection and planning to achieve your multiyear targets is escape velocity from the tethers of winter doldrums into a spring of new growth.
The strategy and development team at Archer Education can help you develop and achieve your multiyear strategic road map goals. Contact us today.
