Enterprise Strategic Analysis for
Transformation (ESAT) Overview
Massachusetts Institute of Technology
October 2008
Why ESAT?
The ESAT methodology is an integrated, analytical framework for
diagnosing and improving overall enterprise performance
• Emphasis of ESAT:
•
•
•
•
•
Qualitative and quantitative data points the way for creating:
•
•
•
•
Understanding the enterprise value streams
Value flow between key stakeholders and the enterprise, and
Interactions both within and across the enterprise
Allows the identification of enterprise wastes and opportunities
A future state vision
An actionable transformation plan and
Governance structure to…
Drive enterprise transformation
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© 2008 Massachusetts Institute of Technology October 2008- 2
Enterprise Strategic Analysis for
Transformation
• What distinguishes ESAT from other approaches
to transformation?
• A focus on the total enterprise
•
•
Emphasis on enterprise-wide processes, rather than
individual functions, programs or tasks
Emphasis on value flows between the enterprise and its
stakeholders
• ESAT built upon well-tested, well-understood
methods
http://lean.mit.edu
© 2008 Massachusetts Institute of Technology October 2008- 3
Enterprise Strategic Analysis and
Transformation (ESAT)
Strategic Objectives
ESAT
Enterprise Analysis
Enterprise
Identification
Future State Vision
Actionable Transformation Plan
http://lean.mit.edu
© 2008 Massachusetts Institute of Technology Presenter MM/ DD/YY- 4
1
2
• Enterprise
Commitment
• ESAT Team
• Current
Enterprise Goals
Enterprise
Strategic
Analysis for
Transformation
• Team Charter
• Enterprise
Description:
Boundaries,
Stakeholders,
Processes
Collect Data
Define the Enterprise
4
3
• Prioritized
Stakeholder Values
• LESAT Scores
• Enterprise Resource
Allocation
• Processes Data
• Current Metric
Values
5
Leadership Processes
• Stakeholder Value
Analysis
• Current State
Process Map
• Process Interactions
Material Value Stream - ÒShop FloorÓ
Product(s)
&
Service(s)
Life Cycle
Processes
High
Information
Value Stream - ÒOffice FloorÓ
Product /
Service
Quality
Current Performance
Enabling Processes
Cost of
Ownership
Cycle
Time
Relationship
with Corp.
Low
Relative Importance to Stakeholder
Construct Current
State Perspectives
Identify Enterprise
Opportunities
High
6
Project A
People
Project B
Processes
Information
Flow
Project K
Project E
Project J
Project D
Customers
Suppliers
9-block Initial Planning Template
Project Name
Project C
Project H
Project F
Project G
Project I
Create Transformation
Plans
http://lean.mit.edu
• Strategic
Transformation
Plan
• Governance Model
• Revised System
of Metrics
• Communication
Plan
JDI
X
Kaizen
X
Project
Difficulty
Event Description: Describe the task in sufficient
detail. (one or two sentences)
Reason for Event: Describe the problem the team
is addressing and answers the Òwhy nowÓ
question.
• 3 - 5-yr Goal
• Transformation
Focus Areas
• Waypoint Goals
Describe Future State
Vision
8
7
Impact
Leadership
• Alignment of
Goals, Values,
Processes,
Metrics
• List of Wastes
• List of
Opportunities
Estimated Event Date(s):
XXX
Recommended Process Owner:
XXX
Recommended Team Leaders &
Members:
XXX
Estimated Implementation Costs:
None
Estimated Savings:
XXX
Create Actionable
Project Descriptions
• Integrated
Project Portfolios
Transformation
• Detailed
Plan
Descriptions
• Recommended
Metrics
Create Deployment
• Resources
Plans
Required
by Project
• Project
Benefits
© 2008 Massachusetts Institute of Technology Presenter MM/ DD/YY- 5
Pre-Planning
Enterprise
Strategic
Analysis for
Transformation
Workshop 1
1
Collect Data
2
• Enterprise
Commitment
• ESAT Team
• Current
Enterprise Goals
• Team Charter
• Enterprise
Description:
Boundaries,
Stakeholders,
Processes
Collect Data
Define the Enterprise
Workshop 2
4
3
• Prioritized
Stakeholder Values
• LESAT Scores
• Enterprise Resource
Allocation
• Processes Data
• Current Metric
Values
5
Leadership Processes
• Stakeholder Value
Analysis
• Current State
Process Map
• Process Interactions
Material Value Stream - ÒShop FloorÓ
Product(s)
&
Service(s)
Life Cycle
Processes
High
Information
Value Stream - ÒOffice FloorÓ
Product /
Service
Quality
Current Performance
Enabling Processes
Cost of
Ownership
Cycle
Time
Relationship
with Corp.
Low
Relative Importance to Stakeholder
Construct Current
State Perspectives
Identify Enterprise
Opportunities
High
6
Project A
People
Project B
Processes
Information
Flow
Project E
Project J
Project D
Customers
Suppliers
Project H
Project F
Project G
Project I
Create Transformation
Plans
• Strategic
Transformation
Plan
• Governance Model
• Revised System
of Metrics
• Communication
Plan
Describe Future State
Vision
8
9-block Initial Planning Template
Project Name
Project C
Project K
• 3 - 5-yr Goal
• Transformation
Focus Areas
• Waypoint Goals
Workshop 3
7
JDI
X
Kaizen
Impact
Leadership
• Alignment of
Goals, Values,
Processes,
Metrics
• List of Wastes
• List of
Opportunities
X
Project
Difficulty
Event Description: Describe the task in sufficient
detail. (one or two sentences)
Reason for Event: Describe the problem the team
is addressing and answers the Òwhy nowÓ
question.
Estimated Event Date(s):
XXX
Recommended Process Owner:
XXX
Recommended Team Leaders &
Members:
XXX
Estimated Implementation Costs:
None
Estimated Savings:
XXX
Create Actionable
Project Descriptions
Project Portfolios
• Detailed
Descriptions
• Recommended
Metrics
• Resources
Required
by Project
• Project Benefits
• Integrated
Transformation
Plan
Create Deployment
Plans
Goals and Expected Outcomes
•
•
Create a vision of a lean enterprise three to five years in
the future which optimizes enterprise value creation &
delivery
Provide enterprise executives with a balanced decision aid
to:
•
•
•
•
Identify barriers to the creation/delivery of value to each
stakeholder
Specify a vision of their future lean enterprise
Determine significant gaps between current and future states
Prioritize opportunities for eliminating waste and increasing
value delivery for the maximum benefit of the total enterprise
http://lean.mit.edu
© 2008 Massachusetts Institute of Technology Presenter MM/ DD/YY- 7
Benefits of ESAT
• Focuses at total enterprise level
• Provides a cohesive method for diagnosing an enterprise
•
•
•
•
•
in order to expose sources of waste and to identify
barriers to value delivery
Gives consideration to the needs/values of all
stakeholders
Focuses on enterprise-wide processes
Identifies process interfaces, disconnects and delays
Establishes an enterprise vision for the future
Identifies improvement opportunities that will benefit the
entire enterprise
http://lean.mit.edu
© 2008 Massachusetts Institute of Technology Presenter MM/ DD/YY- 8
ESAT Generic Event Timeline
Event
Duration
Step
0
Prep
Workshop
#1
Data
Gathering
Workshop
#2
Project
Refinement
Workshop
#3
1 day
About 1
week,
organization
specific
2 days
3-4 weeks
1 week
At least one
week
3-5 days
Approximate Total Duration
2 to 2 ½ months
Note: Times shown are average times and may be adjusted for each
enterprise context
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© 2008 Massachusetts Institute of Technology Presenter MM/ DD/YY- 9
Typical Resources Required
• From organization doing ESAT event:
•
•
•
Enterprise leader as champion or sponsor
Team lead & members are enterprise leader’s direct
reports
Enterprise process owners on an ad hoc basis as
needed to provide information
• Provided by LAI for assistance with event:
•
•
Leader, with background in lean and ESAT method
Additional facilitators to assist with the methodology
• Time to complete the ESAT methodology -
minimum of 2 to 2 ½ months of execution time
http://lean.mit.edu
© 2008 Massachusetts Institute of Technology Presenter MM/ DD/YY- 10
Summary
The ESAT methodology provides:
• Enterprise Perspective
• Enables a clear definition of the enterprise as a whole
• Fosters enterprise thinking and system-wide
improvement
• Stakeholder Centricity
•
•
Process focuses on maximizing value delivery to all key
enterprise stakeholders
Emphasizes enterprise effectiveness over efficiency
•
Data Driven
• Qualitative data through stakeholder interviews
• Quantitative data from performance against key
processes and strategic goals
http://lean.mit.edu
© 2008 Massachusetts Institute of Technology Presenter MM/ DD/YY- 11