HOW TO CREATE AN X-MATRIX

Creating an X-Matrix

Deploying a strategy using the X-Matrix is more than copying details of the strategic plan into
a standard template. The level-by-level deployment involves making connections between the
actions, targets, and resources needed to meet our objectives. When we create an X-Matrix, it
requires that we have a higher-level reference, so that we can align with it.

We begin with the top-level X-Matrix, based on the organization’s long-term breakthrough
objectives. Completing the second, third, and additional levels of X-Matrices relies on direction
from the level directly above it.

Other than a few minor differences between what happens at the top level and at the other
levels, the format, basic steps, and logic for creating an X-Matrix are the same at all levels of the
organization.

Questions to Answer When Creating an X-Matrix

We complete our X-Matrix by answering a series of questions, beginning with, “Why are we
doing this?” The long-term strategic objectives for achieving the organization's mission and
vision belong in this section of the X-Matrix, located at the 6 o'clock position.

Next, we answer the question, “What must we do this year to meet our breakthrough
objectives?” We identify what we think are the breakthrough improvements needed during the
next 12 months to move toward our long-term vision. We put these in the nine o’clock
position. There may be one or more annual objectives in support of a breakthrough objective.
Therefore, this area often has between five and ten rows as needed.

Now that we have two sections completed, we show the correlation between the breakthrough
objectives and the annual objectives by filling in the grid in the bottom left of the matrix. We
place a solid color, an X or other mark, to indicate the relationship between an item in the
breakthrough section and the annual objective or objectives that support it.

In the 12 o’clock section we answer the question, “How will we meet our annual objectives?”
Here we add the strategic initiatives or priority improvement areas for achieving each of our
annual objectives. We show the correlation between annual objectives and the priority
improvement areas, this time in the grid on the top left of the X-Matrix.

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 HOW TO CREATE AN X-MATRIX

We answer the question, “How much will this contribute toward our objectives?” by
completing the three o’clock section. Here we identify metrics for tracking the progress of each
of our strategic initiatives. It’s important to note that we are not tracking KPIs, or key
performance indicators, of our day-to-day business in this section. Instead, we measure how
we’re doing on improvement initiatives toward achieving our annual breakthroughs. Once
again, we show the correlation between the improvement priorities and the targets by filling
in the grid on the top right of the matrix.

Next, we look to the right of the improvement targets section. This is where we’ll answer the
question, “Who is responsible for this item?” In this section, we use symbols to show who’s the
primary resource and who’s a support resource for each improvement priority. The primary
resource is typically indicated by a solid or black circle while support is indicated by a hollow
or white circle.

For the level 1 matrix, the answer to “who” may be a department, division, or other
organizational group, rather than an individual. In this case it’s common to only have just one
resource, or solid circle. When the strategy is deployed to second, third, fourth and further
levels of the organization, it’s normal to name specific individuals as the primary and support
persons for each improvement priority.

We show the correlation between the improvement priorities and the people responsible in the
far-right top corner of the X-Matrix. All improvement priorities must have an assigned resource
or person or department. It’s possible for one resource to be responsible for multiple items,
with one name having many black dots.

The Next Steps

Once we have completed creating the top-level X-Matrix, the job is not done. We need every
person with a black dot on our matrix to follow the same steps to create their own X-Matrix.
The next step is to create the second level matrices. This process continues, level by level,
across the organization, until we have detailed actions that will add up to achieving the annual
objectives.