The latest news and other interesting stuff.

December 23, 2020

Hire Smarter Episode 14: Kendall Hoyd, President at Residential Design Services

Welcome to our latest episode of Hire Smarter. Our mission is to help building materials industry leaders adopt best practices for hiring talent while helping professionals make better career decisions.

In this episode, we are excited to be joined by Kendall Hoyd. Kendall was the president of Idaho Truss, CFO of Trussway, the largest privately-held components company in the US, and most recently, the President of Residential Design Services.

We have recognized a key trait in identifying high performing leaders – Hoshin Kanri, otherwise known as Policy Deployment. Kendall has been effective at implementing Hoshin Kanri in multiple business models and cultures.

What is Hoshin Kanri?

At this time of the year, how many leaders and professionals are spending hours, days, even weeks grinding through the 2021 Strategy and Budget Plans? The team grinds away until the plan is completed, holds it high in the air, proud of their achievement. Fast forward to the Monday after New Year’s, hangovers fading, and the team is entrenched fighting the present fire. Only 3 truck drivers left, out of stock on 3 core commodities, main customers are upset over delayed shipments, and your top salespeople have come forward wanting compensation raises.  “Keeping the trains on time” or keeping the train from derailing, is the urgent issue, and the bright, shining orb that was the Strategic Plan gets put on hold until December rolls around once again. The company’s gross margins and profits remain average, turnover is an ongoing problem, and the company remains perpetually stuck in this familiar business cycle holiday story.

Hoshin Kanri is a methodology used in strategic planning that creates alignment and ensures that the goals drive action across the entire organization.  Hoshin Kanri leaders are excellent at keeping the trains on time and actioning the strategy simultaneously. If Six Sigma Lean is the continuous improvement method for day-to-day operations, think of Hoshin Kanri as the six sigma for effectively deploying strategic plans.

Kendall does an excellent job sharing 5 best practices:

#1 Strategy: In episode 12, our guest was Jim Robish from the Farnworth Group and we covered strategy planning. Does your strategic plan answer the following questions:

What needs to change in your product and service offering to raise your prices, lower your expenses, and increase your profits?

What does your customer want that your competition is not doing, allowing you to increase your profits?

What is it the customers who are not doing business with you want?

#2 Org Structure: Do you have the right organizational structure to deliver on your strategic plan? In the LBM industry, we are all watching as BFS/BMC navigate their merger, creating the right org chart to fit their new objectives.

#3 Job Descriptions: Do your job descriptions create a gravitational pull towards the company’s strategic goals? Alignment of resources happens in this stage, freeing up your best people to work on your most significant strategic breakthroughs.

#4 Personnel: Do you have the right people in key positions? People who can achieve both day-to-day operational objectives and strategic goals?

#5 Measurements: Do you have a culture of self-measurement? Does the team have an independent feedback loop in real-time of how their actions relate to performance outcomes?

Kendall also shares some pitfalls he has made in the past while implementing Hoshin.

The culture of the business must have an operating rhythm. Every person on the team must know their performance metrics and understand what defines a good day in clear, concise numbers. The team is using the same language daily, supporting the core vision and values of the company.

When you start searching on Hoshin, be wary of educators and consultants over-focusing on data with X-charts. Aligning every individual’s personal goals with your company’s strategic objectives should be the focal point.

Hoshin Kanri is not new. Hoshin has been a standard in Japan since post-WWII and arrived in the US in the 1980s. Young Fortune 500 leaders understand it’s a prerequisite to enter their manager-in-training program.

It’s about having the right people. As we evaluate good and great leaders, the distinction is often the speed at which they can shift cultures. Solid leaders can dramatically move a culture to a sustained higher standard in 90 days. Hoshin leaders are also excellent at integrating new acquisitions. It’s essentially the same process, requiring the same skills.

Hire Smarter – Tony

Prefer reading over listening? You can access the full episode transcript here.

Sign Up For Updates