First we will look at the literal meaning of Hoshin Kanri to understand how it guides an organization from development of vision through strategy deployment
Together it suggests we set our compass in a direction in a control and logic
We understand that our strategic plan is developed in support of achieving our vision.The 3-5 year strategic plan sets…
Developing the annual objectives is typically
Matrix may appear complicated at firstIt is a strategic planning documentThat articulates the intent of the companies actions through
An action plan is developed for each improvement priority.Here we will define the process owner, the improvement team, the background and the relationship to the annual objective. All the steps necessary to deliver on the annual objective are listed.
Catchballing is a unique element of hoshin planning and is at its heartStakeholders “catch” the improvement initiative through kaizen and value stream mapping and through their involvement they identify other improvement ideas and develop their plans of actions and then plans for improvement are thrown back to management
The concept of catchballing can be represented in this way whereby the strategy of the leadership become the objective for middle management who develops strategy and actions plans, their strategy becomes the objective of line management who develop strategy and actions plans for which they become accountable. As we can see this ensures that the objectives and strategy are linked up and down the organization
What at the benefits of Hoshin planning to the organization?
Strategy Deployment Hoshin 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 Kanri Hoshin 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 Planning Facilitates 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 Optional in some models The 7-Step Hoshin Planning Cycle PHASE 1: Well-done Strategic Planning 3. Develop Annual Objectives PHASE 2: Heart of Hoshin Planning Process 4. Deploy to Depts. to Develop Plans Including Targets and Means 5. Implementation 6. Regular Progress Reviews Monthly + Quarterly 7. Annual Review The seven steps of the Hoshin planning process (Jolayemi, 2008)
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-Matrix Matrix appears complicated at first Developed as the strategic planning document Articulates 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