Hoshin Kanri - Policy Deployment

Your Gateway to Operational
Excellence
© PSL 2008 All Rights Reserved
Hoshin Kanri –
Lean Strategic Planning

Excellence
What normally happens to strategic plans?
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/hoshin-kanri-policy-deployment-1020

Excellence
Waste
Vs.
Value
Hoshin Kanri
focuses on
value in
product and
method

Excellence
Part 1—Planning and Communication
• Set the course
• Get involvement

Excellence
Strategy Area
•Contains the highest level mandates
•Start here
•Should link directly to corporate strategy, one level
above the group for which you are planning.

Excellence
Team Members Area
•Work on this fourth
•List Names of the people who will be responsible for
implementing the tactics
•Use proper names, not titles

Excellence
Strategy-to-Tactics Correlation
•Does a tactic really support one or more
strategies?
•Is there a more effective tactic?
•Is there a non-necessary tactic?
•Do you really understand the individual
strategy statements?

Excellence
Metrics-to-Results
Correlation/Contribution
•Does each metric contribute to one
or more financial results which we
value?
•How much does each metric
contribute?
•Are we measuring the right things in
our results?
•Can we compare plan to actual over
the period covered by the plan?

Excellence
Remember Lou Novikoff, a.k.a.“The Mad
Russian”, Chicago Cubs, 1940s
• Stole third base with the
bases loaded
• “I got a good jump” he
explained.
• There is no point in
being very fast at doing
the wrong thing.

Excellence
Big Mandate from Deming Industries
• Improve employee morale and
training
• Reduce operating costs to 4%
below nearest competitor
• Improve on-time shipment by
15%
• Increase operating profit by
7%

Excellence
Part 2—Project Initiation and Execution
• Once we set
the course,
how to we find
the target?
• It is here many
plans get lost.This document is a partial preview. Full document download can be found on Flevy:

Excellence
Discuss the project, individually, with the person
• Face to face
• With the X Chart
• Show how it fits

Excellence
OR Create a simple project list
• Depends on project size
• Depends on the individual

Excellence
Don’t let the goal creep
• Set a target and
stick to it
• Start new project if
you need to;
abandon if you need
to; don’t change it

Excellence
Leaders must Lead
• Force some reflection
• Don’t allow glossing
• Push the effort
• Push some humility

Excellence
Resources You Can Use -
Leadership and Self-Deception
• Best management book since
“Good to Great”
• Deals with root cause of
people problems
• Novel style
• You can use it instantlyThis document is a partial preview. Full document download can be found on Flevy:

Excellence
Remember….
• It’s not about the lists
• It’s all about the food

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