X Matrix
The first step in creating a LRAN culture starts with developing goals and strategies to reach those goals. The LEAN tool we use to accomplish this is the X matrix. It is sometimes referred to as the bowling chart.
Three are three sections n the matrix. Each section drills down lower than the previous section. The sections are, starting from the left, long term or strategic goals, core objectives and measures.
The exercise starts with the board. It is their responsibility to set the strategic goals of the organization. These are generally broad statements such as become recognized as a world class organization. When steering goals a very long term view should be taken. Think in terms of creating an organization for individuals whose grandparents haven’t yet been conceived. That perspective gives the sense, when setting goals, of an organization that will be relevant and vibrant to future generations. These goals are placed on the left side of the matrix. The matrix is not a static tool. If there is insufficient space for your goals, expand that section to suit your needs. An example of a strategic goal is to improve financial returns.
Once the strategic goals have been set, the next step is for the senior management team to develop for objectives that support the strategic plan. As core measures are developed, they are placed in the section on the top. Each core objective should relate to one or more strategic goals. In the matrix immediately to the left of the core objective place a solid circle in the column of the strategic goal the core measure addresses directly. If the core measure has an influence rather than direct influence, place a circle. Every strategic goal should have several several objectives that directly address the goal. In our example, to improve financial returns (strategic goal), one element is we need to implement cost reduction projects (core objective).
After setting core objectives, the responsibility passes to the entire management team to set measures that address the core objectives. These are short term i.e. one year goals. Each measure should address at least one for objectives. These measures will be spread across the entire organization although not necessarily very department. . In the matrix immediately above the measures, place a solid circle in the column of the core measure the measure addresses directly. If the measure has an influence rather than direct influence, place a circle. Every core measure should have several measures that directly address the core measure. In our example, to improve financial returns (strategic goal), we need to implement cost reduction projects (core objective), w need to increase productivity, increase quality (measures).
Additionally, specific managers and directors are listed as measures. Place a solid circle in the core measures matrix. This gives us a visual indicator of what needs to be done and where the responsibility lies.
The X matrix is a powerful for setting the stage for the LEAN journey, giving the organization the direction it needs especially at the start of the journey.