Hoshin Kanri is a Japanese management system based around goal setting and strategy. Its roots can be traced back to the lean manufacturing techniques created in Toyota factories to increase the efficiency of processes, but Hoshin Kanri has since expanded its reach to other industries.
Hoshin Kanri has four factors:
- Ho – means Direction
- Shin – refers to Focus
- Kan – refers to Alignment
- Ri – means Reason
Hoshin Kanri emphasizes the importance of aligning an organization’s long-term goals with day-to-day activities. By understanding the big picture and developing a culture of continuous improvement, organizations can attain success and remain competitive in the market. At the core of Hoshin Kanri are seven key components: setting an overall strategic direction, developing an action plan, communicating the plan to staff, engaging in feedback, tracking progress, and establishing a culture of innovation and continuous learning.
The process of Hoshin Kanri helps organizations focus on their desired outcomes. It helps leaders identify the most important improvement goals and allocate resources accordingly. The cycle begins with setting the company’s overall strategic direction. This can be done through collaborative meetings between senior leadership and front line staff. During these meetings, key objectives are identified and outlined in a plan.
Once the plan is developed, leaders can communicate the objectives to their employees. They can do this through all-staff meetings, newsletters, and other forms of communication. This helps create an overall understanding and commitment to achieving the desired outcomes.
Once the desired objectives are established, the organization can move forward with an action plan. This is where leaders can develop detailed steps outlining how to reach the goals. A culture of continuous learning and improvement should be encouraged. This means that regular feedback should be sought from all staff, and progress should be tracked.
All in all, when implemented effectively, Hoshin Kanri offers beneficial and measurable long-term results. It helps organizations set achievable goals and align them to their long-term strategic objectives. An effective Hoshin Kanri system can provide a framework for understanding what goals need to be achieved and how to reach them. It ensures that staff is engaged and have a sense of direction, enabling leaders to achieve new levels of success.
It is very powerful tool for achieving strategic success. It requires a clear vision and well-defined objectives that are set for a one to five-year timeframe.
Hoshin Kanri is a top-down approach, with goals mandated by management and implementation performed by employees. To ensure that objectives are effectively communicated throughout the organization, a catch ball system is often used. This system encourages meetings and interactions between managers and employees to ensure the bidirectional flow of goals, feedback, and other information.
What is Hoshin Matrix?
The Hoshin Kanri Matrix, or X Matrix, is a powerful spreadsheet template that helps organizations stay focused on achieving their breakthrough objectives. This Lean management tool is used to identify the activities with the greatest impact on strategic initiatives, as well as to create new metrics and corrective actions to improve performance.
At the center of the matrix, there are four quadrants that represent the business strategy: top-level priorities (North), metrics to improve (East), breakthrough goals (South), and annual objectives (West). The corners of the spreadsheet feature boxes that can be checked to indicate dependencies between the activities linked to each of the main sections. Additionally, there is a section that allows users to assign responsibility for executing key tasks.
The Hoshin Kanri Matrix is an invaluable tool for monitoring progress towards annual goals, and is an essential part of Lean management.
What is Seven Steps of Hoshin Planning?
The Hoshin methodology is a seven-step process for bridging the gap between strategy and execution. Let’s take a closer look at each stage:
1. Define Mission, Vision, and Key Metrics. This is where you establish your company’s purpose, who you serve, and what you hope to achieve. You’ll also need to determine how you’ll measure success and when you’ll know you’ve reached your goal.
2. Identify Breakthrough Objectives. These are the major changes needed to realize your vision. It’s best to keep this list short, usually no more than five objectives.
3. Set Annual Objectives. After you’ve identified your breakthrough objectives, you’ll need to set annual objectives for achieving them. This could be a one-year timeline, or it could be shorter, such as three months or even 30 days. You can use the A3 document to provide background information about the problem and what you hope to achieve. Then, you’ll use the Plan, Do, Check, Act (PDCA) wheel to identify root causes and develop an improvement plan.
4. Deploy via Catch ball. This step involves deploying your annual objectives using Hoshin Kanri catch ball, a top-down system of two-way feedback loops between managers and their direct reports.
5. Review Results. To measure your progress toward achieving key breakthrough goals, you’ll need to review the process at regular intervals, it may be on a Weekly, Monthly, and Annual Basis
6. Solving the Problem. You all should be focus on how to solve problem. You’ll find some objective which are missed due to various reasons, there are areas that require a correction and corrective actions to be implemented in step five. You can follow proper RCA tools along with PDCA model for continuous improvement.
7. Learn & Dissemination. The final step in the Hoshin Planning process is all about reflecting on lessons learned so that we can understand and grow from our daily work. Here, you’ll also standardize successful strategies and share key insights across your organization
Benefit of Hoshin Kanri:
- The primary advantage of Hoshin Kanri is its focus on long-term objectives. Strategically planning for the future is an essential part of success for an organization, and this system can help create effective policies and goals to guide it towards achieving its ultimate goals. It also assists in anticipating potential issues and creating solutions to address them. Additionally, this strategy encourages collaboration and communication throughout the entire organization, as each department is given the opportunity to work together towards achieving the larger organizational goals.
- Another significant benefit of Hoshin Kanri is the ability it gives to the organization to measure results and hold individuals accountable. It both allows for the progress of the organization to be monitored, as well as providing motivation to team members to meet their goals. This type of monitoring provides an efficient way to ensure that objectives are being achieved and also to learn from mistakes.
- Hoshin Kanri also encourages a culture of change and improvement throughout the organization. As the focus of this strategy is to create long-term goals and improve the company, it allows for business environments to stay competitive and continually driving forward. As these objectives are established, employees and managers can get an idea of how to best use their skills and resources to reach the end goal.
- The final set of benefits of Hoshin Kanri are its ability to create clarity and focus. By identifying what the organization’s goals are, it can create easily defined tasks to be completed and provide a framework for the organization’s success. It can also help filter out ideas that are not important enough to address and determine which objectives are the priority.
- As the system of Hoshian Kanri is so versatile, organizations of all sizes and types can use the strategy to their benefit. Its focus on long-term objectives, accountability and improvement make it an invaluable tool for any business. By using this system, businesses are able to create more effective strategies, monitor their progress and continually strive to improve.