Definition
The annual plan and execution process that takes up the 3-5-year strategy and focuses on a few breakthrough objectives, linking major objectives with support plans across the organization through layer-by-layer deployment.
In detail
Policy Deployment is the annual plan and execution process that takes up the 3-5-year strategy and focuses on a few breakthrough objectives, linking major objectives with support plans across the organization through layer-by-layer deployment. It addresses the disconnect between strategy and execution, ensuring alignment from top to bottom. Unlike the sustaining metrics of Daily Management (DM), PD focuses on breakthrough improvement. It typically outputs a Policy Deployment Matrix, Bowling Chart, Action Plan, and more.
Example in practice
The company sets a strategic goal of becoming the industry quality benchmark within three years. Through strategy deployment, the goal is broken down into annual breakthrough objectives, such as reducing the product defect rate by 50%. These are further cascaded to each department, forming specific improvement projects and KPIs. Progress is tracked monthly via bowling charts, and problem-solving processes are initiated for unmet items. Through PD, strategic goals are realized, and departments work together in a coordinated manner.