Step 2 : Turnaround Strategy : Develop an action plan to restore and/or improve profitability.
The second step is to develop a concrete action plan, the Master Plan. The focus is on the business processes and the introduction of Lean principles, taking a value stream approach to deliver significant customer value. The Key Elements of the Master Plan:
· Identifying Concrete Actions/Projects
· Definition of Measurables (Key performance indicators, KPIs)
Concrete actions normally include the implementation of Lean tools and techniques; plans to reduce overheads and cost, restructuring, revision of product portfolio, etc.
All actions in the Master Plan are clearly addressed and planned.
Additionally, a key part is to recognise and employ a small number of appropriate, meaningful and critical metrics (KPIs). All processes and projects are based on a fully-embedded Plan-Do-Check-Act cycle (PDCA).