1. © Operational Excellence Consulting
HOSHIN KANRI
Translating Vision & Strategy to Execution
© Operational Excellence Consulting. All rights reserved.

2. © Operational Excellence Consulting
LEARNING OBJECTIVES
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Acquire knowledge on
the key concepts and
principles of Hoshin
Kanri
Gain knowledge on
the factors
contributing to
effective Hoshin Kanri
deployment
Describe the Hoshin
Kanri approach to
planning, deployment
and review process
for managed change
Define the Hoshin
Kanri process and
tools
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg

3. © Operational Excellence Consulting
PROGRAM BENEFITS
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Focuses the entire
company on a few vital
goals, rather than the trivial
many
Creates alignment towards
breakthrough objectives
through involvement of the
whole management team
Communicates the key
goals to all managers and
staff
Integrates and encourages
cross-functional
cooperation to achieve
breakthroughs
A review process which
holds participants
accountable for achieving
their part of the plan

4. © Operational Excellence Consulting
CONTENTS
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KEY CONCEPTS &
PRINCIPLES
PROCESS &
TOOLS
DEPLOYMENT &
MANAGEMENT
REVIEWS
EFFECTIVE
HOSHIN KANRI
DEPLOYMENT
01 040302

5. © Operational Excellence Consulting
“Strategy without tactics is
the slowest route to victory.
Tactics without strategy is
the noise before defeat.”
SUN TZU
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6. © Operational Excellence Consulting
● Too many bad projects in process
● Very long lead times for
improvements
● Most employees never seem to
feel a part of the team
● Little connection between strategy
and continuous improvement
SYMPTOMS THAT YOUR ORGANIZATION NEEDS TO DO HOSHIN KANRI
PLANNING
● Senior management vision does
not match organizational activities
● Annual objectives are rolled out in
March instead of January
● Year-to-year plans never seem to
connect
● Constantly missed budgets and
forecasts
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7. © Operational Excellence Consulting 7
A TYPICAL COMPANY SPENDS A DISPROPORTIONATELY LESS TIME IN
PLANNING…
PLAN
DO
CHECK
ACT

8. © Operational Excellence Consulting 8
THIS IS HOW TOYOTA USES ITS TIME – MORE TIME 0N PLANNING &
LESS TIME ON FIRE-FIGHTING
PLAN
DO
CHECK
ACT

9. © Operational Excellence Consulting
THE THREE KEY LIMITATIONS OF STANDARD STRATEGIC PLANNING
INSUFFICIENT DETAILTOO MANY PRIORITIES LACK OF ACTIVE REVIEW
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10. © Operational Excellence Consulting
● Hoshin Kanri is a methodology to capture
and concretize strategic goals as well as to
develop the means to bring plans to reality
● In other words, Hoshin Kanri is target-
means deployment
HOSHIN KANRI
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11. © Operational Excellence Consulting
● A visual planning tool that helps us
identify the key focus points and
strategies we will use to steer us
towards our vision
● Enables everyone to ‘see’ where we’re
going and our plans to get there
● Build plan and strategies as a team
● Shared responsibility for getting results
WHAT IS HOSHIN KANRI?
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12. © Operational Excellence Consulting
WHAT HOSHIN KANRI IS NOT
● A tool for management to control
the employees
● An MBO program with a new
packaging
● Focused entirely on outcomes or
results
● A performance appraisal tool
● A management reporting tool
● Another one of those
“extracurricular activities”
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13. © Operational Excellence Consulting
BENEFITS OF HOSHIN KANRI
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Leadership evident at
all levels
There is a clear line
of sight
Aligns resources,
objectives and metrics to
all goals and at all levels
of the organization
Every employee is
clear of their role and
objectives
Employees are involved in
setting targets,
improvement schedules
and reviews
Everyone understands
the goals of the
organization

14. © Operational Excellence Consulting
HOSHIN KANRI CREATES ALIGNMENT TOWARDS BREAKTHROUGH
OBJECTIVES THROUGH INVOLVEMENT OF THE WHOLE MANAGEMENT
TEAM
Source: Based on Yoji Akao, 1991
q Vision
q Objectives
q Strategy
q Resources
q Action
q Schedule
GoalsReview
Measures
Hoshin
Plan
SENIOR
MANAGEMENT
IMPLEMENTATION
TEAMS
MIDDLE
MANAGEMENT
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Note: Although the Objectives/Goals
terminologies are sometimes used in
reversed, the differentiation remains.

15. © Operational Excellence Consulting
THE THREE LEVELS OF HOSHIN KANRI DEPLOYMENT
§ Vision
§ Mission
§ Shared Values
Management by
Principles
§ Objectives Setting
§ Target-means Deployment
Management by
Priorities
§ Network of Inter-related Projects
§ Cross-functional Management
Management by
Projects
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16. © Operational Excellence Consulting
HOSHIN KANRI IS A POWERFUL SYSTEM FOR GOAL ALIGNMENT
§ Alignment through
entire company
structure using top-
down goal setting
§ Each subsequent
goal supports the
previous level’s
goals
Verticalalignment
Organization
Goals
Department
Objectives
Individual
Objectives
Department
Objectives
Individual
Objectives
Individual
Objectives
Individual
Objectives
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17. © Operational Excellence Consulting
HOSHIN KANRI & LEAN IMPERATIVES
Hoshin Kanri
Customer Value
ContinuousImprovement
Management by Fact
Teamwork
ALIGNMENT PRINCIPLE
OPERATING
PHILOSOPHY
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18. © Operational Excellence Consulting
Top-down focus
on creating and
improving
systems
HOSHIN KANRI
INTEGRATED WITH
Bottom-up
focus on
total employee
involvement in
continuous improvement
TOTAL EMPLOYEE INVOLVEMENT
TEAMWORK
HOSHIN KANRI & EMPLOYEE INVOLVEMENT
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19. © Operational Excellence Consulting
LINKAGES OF BSC, HOSHIN KANRI & MBO
§ Company “Report Card” at a glance
§ Contains macro measurements related to key
success factors (e.g. productivity, revenue, etc.)
§ For senior management
Balanced
Scorecard
§ Provides focus and alignment
§ Measure key processes
§ Reveals what, who and when
Hoshin Kanri
§ Targets are negotiated between supervisor and
subordinates
§ For rewarding performance
MBO
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20. © Operational Excellence Consulting
THE THREE KEY UNDERLYING PRINCIPLES OF HOSHIN KANRI
PLAN-DO-CHECK-
ACT CYCLE
PARETO
PRINCIPLE
CAUSE & EFFECT
RELATIONSHIP
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21. © Operational Excellence Consulting
THE SEVEN KEY STEPS OF HOSHIN KANRI
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1.
Establish
organizational
vision
2.
Develop 3-5
year strategic
objectives
3.
Develop
annual
objectives
4.
Deploy to
departments
using target-
means
approach
5.
Implement the
action plans
6.
Review
progress
regularly (e.g.
monthly,
quarterly)
7.
Conduct half-
yearly and/or
annual review
Strategy development Strategy deployment

22. © Operational Excellence Consulting
Vision
Annual
Objectives
Measures
Objectives Measures
Objectives Measures
Objectives Measures
TOP
MANAGEMENT
FRONTLINE
SECTION
MANAGER
DEPARTMENT
MANAGER
2-way dialogue & negotiation
2-way dialogue & negotiation
2-way dialogue & negotiation
TARGET-MEANS DEPLOYMENT: “CATCH-BALL” PROCESS
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23. © Operational Excellence Consulting
CRITICAL SUCCESS FACTORS
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Focus on the
process, not so much
on the results
1
Data driven
(management by fact)
2
Management goals
and priorities are
deployed across all
functions and levels
3
Adequate tactics
defined to achieve
goals
4
Communications
among functions are
sufficient
5
Regular management
review
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24. © Operational Excellence Consulting
Operational Excellence Consulting is a management
training and consulting firm that assists organizations
in improving business performance and effectiveness.
Based in Singapore, the firm’s mission is to create
business value for organizations through innovative
design and operational excellence management
training and consulting solutions. For more
information, please visit www.oeconsulting.com.sg
ABOUT OPERATIONAL EXCELLENCE CONSULTING
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