How to check if the strategy is understood?

Illustration of a traditional employee satisfaction survey question focused on understanding the organization's strategy.

Employee engagement

Many organizations regularly conduct employee engagement or satisfaction surveys to assess staff knowledge and understanding of the strategy. However, a common issue with most surveys is the leading nature of the questions. For example, asking employees, “Do you understand the company’s strategy and its priorities?” with responses like yes, partially, or not, often leads most people to believe they understand the strategy. This approach typically yields encouraging results, suggesting that the hard work of communicating the strategy has been effective.

Visual representation of the Hoshin Kanri method and digital X matrix, emphasizing that clear strategies enhance employee engagement and lead to higher profits.

Does employee engagement matter?

Studies show that organizations with engaged employees generate four times more profit than their peers. However, only 20-40% of employees are typically engaged.

The leading cause of declining employee engagement is a lack of understanding of how they can contribute to the organization’s strategy. In organizations strong in strategy execution, over 70% of employees clearly understand their responsibilities.

Is this a common problem?

According to a study published in HBR in 2015, 84% of employees agreed with the statement, “I am clear on our organization’s top priorities.” However, when asked to list those priorities, the results were less encouraging:

  • Management team members can typically name 4 out of 5 strategic priorities.
  • Only one-third of team leaders can name 2 out of 5, and the rest even less.
Graph illustrating the decline in knowledge of strategic priorities with organizational position, alongside Amplon's interactive visualization of strategy using the Hoshin planning X matrix.

Beyond listing strategic priorities, understanding and explaining how these priorities link to strategic initiatives is crucial. Yet, only 50% of management team members and less than 16% of team leaders can explain these connections.

The summary

Employee engagement is essential not only for short-term profits but also for retaining talent and attracting new hires. The next time you conduct an employee engagement or satisfaction survey, instead of asking leading questions, provide multiple choices of your five strategic objectives mixed with five fake objectives. This method makes it easier to see which priorities employees understand and which they don’t.

Amplon is increasing your employee engagement and profits

Amplon applies the Hoshin Kanri (or policy deployment)principles to engage all employees and visualize the strategy. The X Matrix serves as a one-page strategy tool.

With a visual and clickable X Matrix, it’s easy to show company and departmental objectives. The list of key initiatives clarifies focus and links them to the objectives.

Amplon software enhances transparency, a crucial element in helping employees understand the strategy.

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Amplon interface of interactive Hoshin Kanri X matrix for strategic planning and communication

The Ultimate Hoshin Kanri X Matrix Guide

The “Ultimate Hoshin Kanri X Matrix Guide” provides an in-depth exploration of the X Matrix as a critical tool for strategic planning and execution. This guide details how the X Matrix aligns organizational objectives, improvement projects, and KPIs to ensure cohesive strategy deployment across all levels. With a focus on clarity and alignment, the X Matrix simplifies complex strategic processes into a single, visually engaging framework.

Amplon interactive X matrix software providing a clear and easy-to-understand visualization of the X matrix

Implementing hoshin kanri with software

Hoshin Kanri software, like Amplon, revolutionizes strategic planning by using a digital X matrix to align organizational goals with vision and mission, ensuring transparency and collaboration. This approach offers real-time data updates and intuitive interfaces, making the strategic process more agile and efficient than traditional Excel tools.

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