A3-X

correlation correlation / contribution accountability

team members
tactics
strategies

process
results
Revenue $0
Legend
Development costs $0

Material costs $0 8 = strong correlation or team leader

important correlation or core team
Conversion costs $0 = member
weak correlation or rotating team
Value stream profit $0 r = member

correlation correlation / contribution

CD Form 1-2 Hoshin Kanri for the Lean Enterprise 2006 Thomas L. Jackson Page 1
 A3-X Instructions
CORRELATION CORRELATION / CONTRIBUTION ACCOUNTABILITY
Analyze each pair of strategies or In the rows provided please enter separate statements of up to Analyze each pair of initiatives or projects on the one
policies on the one hand and ten of your company's most important tactical improvement hand and performance measures on the other hand to team leader
improvement initiatives or initiatives or projects. Typically initiatives or projects are led or determine how strongly the initiative or project in question

Optional: Assign and record index number for each

projects on the other hand. Use implemented by a team of individuals, often from different may affect the measurable in question. Use the symbols in
the symbols in the center field to business functions within your company. In addition, these the center field to indicate the level of correlation or
core team member
indicate the level of correlation or initiatives frequently involve the introduction of new technologies contribution, entering the appropriate symbols in each of
contribution. Enter the or work methods, such a lean production, total quality the cells that mark the intersections of the relevant
appropriate symbols in each of management, six sigma, and their respective toolkits. For initiative rows and target columns.
the cells that mark the example, "Implement lean production at all manufacturing participating
intersections of the relevant plants;" or "Initiate six sigma in our engineering function." team member
policy columns and initiative Projects will normally be more specific than initiatives. For
rows. example, "Implement quick changeover in our stamping plants;"

initiative or project here.

or "Apply quality functional deployment in the next new product Use this space to analyze the relationships
launch." These initiatives or projects will later be deployed to the between the accountable parties listed below
to the improvement initiatives or projects listed
teams you describe in the "Team Member" matrix on the right to the left. Using the symbols above, record
hand side of this document. the level of accountability by entering the
relevant symbols in the cells marking the
intersection of team member columns and
initiative rows.
In the columns provided please In the columns provided please enter your company's critical
tactics
TEAM MEMBERS
enter separate statements of two to process improvement targets, stated in terms of performance
five of your company's most improvement measurables and indicating the date by which In the columns provided on the
important strategic goals. Typically, the target is to be achieved. Improvement measurables are reverse side of this document, list up
such statements pertain to the cost, normally leading indicators of a company's fitness and are to twelve parties who must work
functionality, and/or quality of your frequently connected to the development of competitive together or coordinate their activities
strategies

process
product or service. For example, high correlation or
"Become the low cost producer of rate of contribution
family automobiles;" or "Be the
most innovative audio equipment medium correlation
company;" or "Lead the market for or rate of
contribution
luxury hand-bags."
low correlation or
rate of
contribution
resources, such as brand identity, intellectual property, to achieve the performance
business processes, and human skills. Examples of improvement and financial targets.
performance targets include: "Improve customer satisfaction
as measured by a 50% reduction in customer returns per
month by December 31, 2004;" or "Reduce changeovers at all
plants to less than 10 minutes by June 30, 2003;" or "Cross-
train all members of production cell workgroups on all cell
equipment on the Ford line before October 1, 2002."

Optional: Assign and record index number

for each strategy or policy here.
results
FINANCIALS
Optional: Assign and record an index number for each improvement measure
here. USE PENCIL
Analyze each pair of strategies In this section, please enter key data for a value stream profit Analyze each pair of leading performance measures and to remain open to feedback and
and financial indicators to and loss statement for the business unit for which you are financial indicators to determine the contribution level of improvement ideas during the catchball
number for each financial indicator here.

determine the level of preparing the X-matrix. Build the actual value stream P&L with each performance measure to each financial indicator. process.
Optional: Assign and record an index

importance, contribution, or full details on a separate worksheet or in a separate workbook. Use the symbols in the center field to indicate the level of
correlation between strategy and correlation or contribution, entering the appropriate Also,
strictly limit the number of policies,
financial performance. Use the symbols in each of the cells that mark the intersections of
initiatives, targets, and financials.
symbols in the center field to the relevant target columns and financial rows. If 3 policies give rise to only 3 initiatives,
indicate the level of correlation or and 3 initiatives give rise to only 3 projects,
contribution. Enter the and 3 projects give rise to only 3 team
appropriate symbols in each of activities, you will have a total of 819 team
the cells that mark the activities and innumerable targets to
intersections of the relevant schedule, track, and manage!
policy columns and financial
rows.

CORRELATION 2006 taktX LLC CORRELATION / CONTRIBUTION

CD Form 1-2 Hoshin Kanri for the Lean Enterprise 2006 Thomas L. Jackson Page 2