What Is the A3 Business Model?
Long-term planning is something from which every business can benefit. Knowing where a company needs to go and how to get there can provide innumerable benefits over the long term and help avoid pitfalls associated with economic downturns.
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Background
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The A3 model, first developed by Toyota in the late 1970s, is one such type of plan. The name may sound mysterious but is nothing more than a reference to the paper size used to lay out the plan. A3 paper is used primarily outside the United States and measures 11.69 by 16.54 inches, very close to the standard U.S. tabloid size of 11 by 17 inches. One piece of paper is used because the point of the plan is to be able to see a single snapshot that summarizes all relevant information. This way, it is easy to see the entire plan as quickly as possible.
Uses and Layout for an A3 Plan
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A3 planning can be used for a variety of needs: proposals, status reports, strategic planning and problem solving. No matter the type, A3 plans have two sections called "plan" and "do, act, check." When laid out on paper, the total plan is read from the top left to the bottom right, with Section One on the left side and Section Two on the right. The template is a flowchart, moving from one box to another as each step is accomplished.
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A3 Plan Section One
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The planning stage encompasses five steps: define the focus of the plan (what is this about?), know the background of the problem (where are failings occurring?), know the current status of the problem (how was performance last year?), have goals (where do we want to end up?) and justify current priorities.
A3 Plan Section Two
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The "do, act, check" stage is made up of four steps: 1) the details of the plan--who is going to do what and the resources available to do it; 2) expected results and a time line in which to accomplish them; 3) follow-up and a look at outstanding problems; 4) approval of the plan with dates and signatures.
Key Points of A3 Plans
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A3 plans involve teams, not individuals. Every person and department involved in achieving the goals takes part in the planning, and gets a chance to sign off on the plan at the end of Section Two--Toyota calls this the "Catch Ball" process. Not only does this ensure everyone is working toward the same goals, but communications across the company are improved, and all involved become problem solvers and mentors.
Reasons to Use A3 Planning
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An entire plan on one piece of paper allows it to be understood by anyone at any level. Planning can turn reactive actions into proactive ones, and the "do, act, check" stage means every step can be watched as it happens and changes made quickly if needed. A3 planning also emphasizes doing well and improving and learning, rather than depending on rigid procedures, and encourages objectivity, logical thinking and consistency across the organization.
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- Photo Credit process flow image by Christopher Hall from Fotolia.com
