The Benefits Of Hoshin Kanri Strategic Planning

The Benefits of Hoshin Kanri Strategic Planning

Hoshin Kanri strategic planning is a highly potent means to amplify organizational performance, identify critical objectives, and track the advancement towards desired objectives. It serves as a successful approach to keep a business on the right path and ensure that all personnel is devoted to the same ambitions.

In this blog post, we’ll discuss the benefits of hoshin kanri strategic planning and how it can help your organization reach its goals.

1. What is Hoshin Kanri?

Hoshin Kanri, also known as Policy Deployment or Management by Objectives, is a process of planning and strategy development used in many organizations. It is based on the Japanese term “hoshin”, which means “direction” or “policy”.

Hoshin Kanri strategic planning
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Strategic planning is one of the most important aspects of any organization, and different strategies can yield very different results. According to Grant (2010), it may also be the strategy process in which understanding, external factors, and mutually beneficial goals are discussed that may make up the most crucial part of this planning. Hoshin Kanri method is a practice from Japan particularly effective in achieving these objectives. It consists of creating an action plan that includes daily tasks and activities aligned with long-term strategic goals and objectives.

It helps align everyone in the organization, ensures that all resources are being used effectively, and allows for quick and timely implementation of changes.

2. Hoshin Kanri Catchball method

What is the catchball process?

The catchball process is used in the Hoshin Kanri methodology to help organizations achieve their strategic objectives. It involves the development of annual objectives that lead to breakthrough objectives that support the organizational vision.

The Hoshin planning process is centered around the steps of Hoshin, beginning with the leadership team, working with middle management, and then cascading down to team leaders who help to implement the annual objectives.

Hoshin Kanri Planning Matrix with Key Business Processes
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Advantages of using catchall

Through the Hoshin planning process, team leaders, middle management, and leadership teams join their efforts together and develop annual objectives that align with their organizational vision. This planning process can then be used to effectively implement annual objectives. Simply put, everybody looked in the same North.

Another advantage of using the Catchball methodology is that it can provide a structured way for organizations to review and adjust their goals. The steps of Hoshin Kanri involve an annual review where team members can assess their performance and make adjustments as necessary. This ensures that all stakeholders are on the same page when it comes to achieving their objectives.

3. How to Implement Hoshin Kanri

Hoshin Kanri Planning Matrix with Key Objectives
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The Hoshin Kanri planning process consists of six essential steps, that create a comprehensive understanding and a plan for success.

Step1: Develop Long-Term vision (5 years marker)

At the beginning of the journey, establishing organizational vision is king. So, the first step in implementing Hoshin Kanri is to develop a long-term vision. This is where the organization sets out its mission and objectives for the next five years, along with any major milestones that need to be achieved in order to be successful.

A long-term vision can be developed in order to guide strategic planning and decision-making across the organization. A five-year mark is ideal, as it gives organizations enough time to develop achievable goals while still being able to react to changing markets and opportunities. Furthermore, by having a clear set of objectives that span multiple years, the incremental progress necessary to meet those goals can be easily measured.

Step 2: Develop a short-term plan (1-year marker)

In the development of a comprehensive five-year vision, it is vital to break down that vision into easier-to-accomplish one-year goals and objectives. In simpler terms, tackle the elephant one bite at a time. With this in mind, establishing a one-year plan will become the bridge between the aspirations of your five-year plan and its reality.

The one-year plan will focus both on how external matters are addressed and how internal problems can be improved in ways that do not lead to past mistakes being repeated. Stopping to analyze competition, and overall economic situations, as well as looking back at past issues, enables an informed course of action going forward. With safety, quality, delivery, and cost all prioritized by senior management, your organization has the framework from which to launch its next steps toward realizing its ambitious long-term strategy.

Step 3: Put Into Action Your Annual Plan!

Setting measurable goals for each department and aligning these goals with a strategic plan of action is an essential step to achieving success in any organization. Executing the 12-month plan gives each department a clear target to work towards, enabling progress to be tracked along the way so that closely monitored and potential problems can be quickly identified and addressed.

Step 4: Harness the Power of Continuous Improvement to Enhance Your Business Operations.

Embracing continuous improvement at the workplace is essential to sustaining Short-Term plans and Long-Term visions as well. This step involves real improvement in the company, starting with operations and continuing with support departments. Here, we are focusing on doing more with less resources by applying lean management principles and lean tools (Value Stream Mapping, SMED, 5S, and Kaizen).

Every step serves as a building block to create a well-structured plan that allows an organization to continually improve its operations and make relevant changes or adjustments as needed.

Step 5: Evaluate your progress each month to ensure you’re on track.

Evaluating your progress each month is an essential step in the Hoshin Kanri process and helps ensure that you and your team are on track to achieve success.

During the review, it’s important to have a comprehensive assessment of progress, including any issues encountered.

A formal review should be presented to management with tasks addressed, possible problems analyzed, and the results of problem-solving efforts laid out clearly. It’s only by having such careful evaluations each month that organizations can confidently work towards their long-term objectives and stay ahead of potential issues.

Step 6: Take a Step Back and Analyze Your Progress Annually

Hoshin Kanri Model with Management Levels
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This review should involve an in-depth look at how well the organization has progressed over the past year and whether any adjustments need to be made. Analysis of financials, customer feedback, market trends, and competition will all provide valuable insight into areas for improvement.

Additionally, you may want to consider conducting a survey among your employees to gain their perspectives and insights. This will allow you to identify any areas that need additional attention and resources to ensure the future success of the long-term plan.

Hoshin Kanri Model for Lean Methodology
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4. The Benefits of Hoshin Kanri

a. Focus on strategic points

Hoshin Kanri helps organizations focus on the most important tasks in order to achieve their goals. This ensures that the organization is able to make the best use of its resources and that everyone is on the same page when it comes to achieving its mission.

One of the fields where Hoshin Kanri can bring significant value is Lean supply chain management. By combining the structured approach of Hoshin Kanri strategic planning with the principles of Lean supply chain management, organizations can achieve greater operational efficiency, quality improvement, and overall business success. This integration fosters a culture of collaboration, communication, and continuous improvement, promoting sustainable growth and success in today’s highly competitive business environment.

b. Increased Efficiency

By breaking down long-term goals into shorter-term objectives, Hoshin Kanri helps organizations become more efficient. This allows them to identify and eliminate wasteful processes and activities that can slow down progress.

c. Improved Communication

By having a clear plan for achieving goals, organizations are able to communicate better both internally and externally. Everyone involved knows exactly what needs to be done when it needs to be done, and how it will help the organization reach its goals.

d. Increased Accountability

With hoshin kanri in place, it becomes easier to hold people accountable for their actions. Everyone knows what they are responsible for, and if they are not meeting their objectives, it becomes easier to identify and address these issues.

5. Conclusion

Hoshin Kanri’s method provides an ideal framework to effectively set and accomplish objectives, keep track of progress, and ensure constant advancement in operations.

This process is intended to be reused and increased in size, making it accessible to companies of all sizes and diverse activities, including products and services (marketing, etc).

Adopting Hoshin Kanri can bring forth benefits such as enhanced coordination among departments, minimized expenditures, amplified productivity, and a stronger edge over competitors in the market.

In conclusion, incorporating Hoshin Kanri’s strategic planning into an organization is crucial for success. By utilizing Hoshin Kanri’s examples, your company can establish an organizational vision and develop breakthrough objectives, which can then be deployed as annual objectives. This approach ensures that everyone in the organization is aligned and working towards the same goals.

Furthermore, maintaining an innovative, business-rich core with message delivery capabilities can help create a worldwide buzz and light up your marketplace. By sitting on big news and getting that news out to create the maximum effect, your company can reveal the scope of its breakthrough objectives and generate a story with viral potential. This approach can result in a wave of nearly 100 stories and position the organization in the market as an expert.

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About the Author

Liviu Prodan

Liviu is an experienced trainer and LifeHacker. He’s been living the ‘Corpo life’ for more than 15 years now and has been a business developer for more than 12 years. His experience brings a lot of relevancy to his space, which he shares on this blog. Now he pursue a career in the Continuous Improvement & Business Development field, as a Lean Six Sigma Master Black Belt, a path that is coherent with his beliefs and gives him a lot of satisfaction.

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