Strategy DeploymentHoshin Kanri Planning

Hoshin Kanri“Ho” means direction

“Shin” means needle

“Hoshin” means compass

Hoshin Kanri“Kan” means control or channelling

“Ri” means reason or logic

Hoshin KanriHoshin is a planning and implementation

process which gives ‘direction’ to an organization when looking at future strategy

The analogy that is used is directing a fleet of ships to all arrive at the same destination, at the same time!!

Hoshin PlanningFacilitates the creation of business processes that

result in a sustained competitive advantage in Quality, Delivery Cost and Innovation.

Aligns the major strategy objectives with the specific resources and action plans.

Consists of a seven step process that begins with high level strategic objectives and ends with the local level improvement targets.

‘Catchballing’ is the driving force of alignment, clarification, and employee involvement.

1. Establish Organizational Vision

2. Develop 3-5 Year Strategic Plan

3. Develop Annual Objectives

4. Deploy to Depts. to Develop Plans

Including Targets and Means

5. Implementation

6. Regular Progress Reviews Monthly +

Quarterly

7. Annual Review

Optional in some models

PHASE 1: Well-done Strategic Planning

PHASE 2: Heart of Hoshin Planning Process

The seven steps of the Hoshin planning process (Jolayemi, 2008)

The 7-Step Hoshin

Planning Cycle

Strategic Plan

3-5 Year Strategic Plan sets a plumb line against which objectives are set for the year

Objectives set the roadmap and allow the Senior Management Team to identify Projects and Strategies that will meet them.

2. Develop 3-5 Year Strategic Plan

Transition to Hoshin Typically, this is the transition point from Strategy

development into Strategy deployment The heart of Hoshin Planning lives here!! Annual Objectives are those objectives that we need to

achieve this year which will enable us to reach our overall 3-5 year Breakthrough Objectives

This is the typical point where the Hoshin Matrix is initiated to begin the Strategy and Objectives Deployment

3. Develop Annual Objectives

Hoshin Planning X-MatrixMatrix appears complicated at firstDeveloped as the strategic planning documentArticulates intent of the companies action

through linking vision, strategic objectives and actionable activities

Assigns High level ownership to key areas of focus

Output is the actionable improvements that are reviewed and modified, through “catchballing” to a finalize a plan

“Catch ball”• A top down and bottom up approach • Stakeholders ‘catch’ the improvement topic and

through Kaizen, VSM etc develop ideal current state, identify other issues etc

• This is then thrown back to the management team with a plan for improvement

4. Deploy to Depts. to Develop Plans

Including Targets and Means

Catchballing4. Deploy to Depts.

to Develop Plans Including Targets and

Means

Benefits of Hoshin Planning

• Every employee is clear of their role and objectives• Leadership evident at all levels• Everyone understands the goals of the organisation• Aligns resources, objectives and metrics to all goals

and at all levels of the organization• Employees are involved in setting targets,

improvement schedules and reviews• There is a clear line of sight