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© Operational Excellence Consulting
A3
HOSHIN PLANNING
Navigating Your Path to Clear Execution
© Operational Excellence Consulting. All rights reserved.
© Operational Excellence Consulting
LEARNING OBJECTIVES
2
Master the hoshin
planning process by
translating the “True
North” to the A3.
Comprehend the
Check and Adjust
process for strategic
review.
Gain proficiency in
using the A3 tool for
effective hoshin
deployment.
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg
© Operational Excellence Consulting
CONTENTS
3
1
Key Concepts and Principles
of Hoshin Planning
2
True North, A3 and Bridging
the Gap
3
Hoshin Formulation and
Deployment
4 A3 Template Overview
5
The A3 Completion
Sequence
6
A3 Breakdown: Step-by-step
Guide
7
Check and Adjust (Strategic
Review)
8
Success Factors for A3
Hoshin Planning
© Operational Excellence Consulting
UNLOCKING STRATEGIC POTENTIAL
4
Missed Market
Opportunities
Identify untapped
markets by improving
preparedness.
Future
Opportunities
Envision and prepare
for opportunities
beyond current
capabilities.
Anticipated
Challenges
Proactively address
upcoming challenges
for resilience.
Unexplored
Initiatives
Overcome resource
constraints to pursue
pending projects.
© Operational Excellence Consulting
THE CASE FOR HOSHIN PLANNING
5
1
3
4
2
Desired State
Current State
Strategy
Future State
Status Quo
With the Hoshin Planning process,
you can prioritize truly important
aspects, propelling your organization
from the Future State Status Quo to
the Desired State, without getting
bogged down by every detail.
© Operational Excellence Consulting
BENEFITS OF HOSHIN PLANNING
6
Prioritizes Importance
Over Urgency
Ensures focused attention on
what is truly important, not just
what is urgent.
Drives Collaborative
Results
Enables outcomes that go
beyond the capabilities of
independent or loosely
collaborating country/function
operations.
Enhances Accountability
and Support
Facilitates effective
management follow-up to hold
participants accountable for
their plan and offers support as
needed.
© Operational Excellence Consulting 7
DEFINITION OF HOSHIN PLANNING
Hoshin kanri or hoshin planning is the short-term (one
year) and long-term (three- to five-year) process used to
identify and address critical business needs and develop
the capability of our people, achieved by aligning
company resources at all levels and applying the PDCA
cycle to consistently achieve critical results.
PASCAL DENNIS
Author of ‘Getting the Right Things Done’
© Operational Excellence Consulting
OBJECTIVES OF HOSHIN PLANNING
8
Clarity & Alignment
Assure that everyone
is going in the same
direction with the
same amount of
effort.
Results
Each individual is
accountable for the
overall strategy’s
success.
Quick Response
Create a sense of
urgency for the
focused activities.
Stay on schedule.
Focus
Narrow down what is
important to the
organization. Don’t
complicate it.
© Operational Excellence Consulting
HOSHIN PLANNING: CLARITY ACROSS ALL LEVELS ACCELERATES
SUCCESS
9
Top
Management
Value Added Workforce
Good Clarity and
Understanding at
all Levels
Middle
Management
Velocity Towards
the Vision
Informed Insights
and Feedback
Flow
© Operational Excellence Consulting
PRINCIPLES OF HOSHIN PLANNING
10
Plan-Do-Check-Act
Drive continuous
improvement.
Cause & Effect
Analyze relationships for
effective problem-solving.
A3 Thinking
Storytelling in planning,
structured execution.
True North
Align on business
purpose and strategy.
Pareto Principle
Focus on vital few for
significant impact.
Catchball
Foster alignment through
open discussions.
© Operational Excellence Consulting
HOSHIN PLANNING IS BASED ON THE PDCA CYCLE
11
PLAN:
§ Define organizational-level
objectives, goals, activities,
and targets
§ Answer the question,
“Where are we going and
how do we get there?”
DO:
§ Translate and deploy
organizational plans, level
by level
§ Execute according to those
plans
ADJUST:
§ Address problems
identified in the check
process
§ Implement
countermeasures based on
a root cause understanding
CHECK:
§ Analyze actual vs.
planned results
§ Differentiate normal vs.
abnormal; make problems
visible
Hoshin
Planning
Process
© Operational Excellence Consulting
HOSHIN PLANNING PROCESS & PDCA CYCLES
12
Determine current
condition
Prioritize
and select
breakthrough
objectives
Determine desired
condition
Deploy the plan
(catchball)
Create plan
to achieve
breakthrough
objectives
Annual review:
Reflection and
learning points
Confirm and
implement plan
(A3 report)
Review plan
(weekly, monthly,
biannual)
P
D
C
A P
D
C
A
P
D
C
A Note that there is a
3rd
PDCA cycle over
a 3-5 year horizon
2nd
PDCA
cycle
1st
PDCA
cycle
Hoshin Planning comprises overlapping PDCA cycles
Source: Adapted from Dennis
© Operational Excellence Consulting
“
You’ve got to think about big
things while you are doing
small things, so that all the
small things go in the right
direction.”
ALVIN TOFFLER
13
Author and futurist
© Operational Excellence Consulting
WHAT IS “TRUE NORTH”?
14
True North serves as a
vision for the company’s
middle-term destination. It
answers the question:
Where do we want to go?
VISIONARY DIRECTION
True North establishes
main objectives
supporting the vision. It
addresses obstacles,
defining key targets for
success.
OBJECTIVE FRAMEWORK
True North guides
efficient focus on critical
topics. It involves
leadership, monitoring,
and accountability for
chosen programs.
EFFICIENT FOCUS
© Operational Excellence Consulting
TRUE NORTH: SETTING THE COURSE
15
Manufacture, Implement,
and Deliver top-quality
products efficiently and
economically to delight
our Customers.
Emphasize key aspects of the value proposition
(Quality, Efficiency, Cost-effectiveness,
Timeliness) to become the preferred supplier,
delivering significant benefits to both Customers
and the Organization.
VISION
(e.g. of a manufacturing
company)
STRATEGY
© Operational Excellence Consulting
HOSHIN PLANNING: TACKLING COMPANY PROBLEMS AT EVERY LEVEL
16
P
D
C
A
P
D
C
A
P
D
C
A P
D
C
A P
D
C
A
P
D
C
A
P
D
C
A P
D
C
A
P
D
C
A
V
E
R
T
I
C
A
L
A
L
I
G
N
M
E
N
T
V
E
R
T
I
C
A
L
A
L
I
G
N
M
E
N
T
HORIZONTAL ALIGNMENT
Group and Individual Problem Solving
Department Hoshin
Company
Hoshin
B
r
e
a
k
d
o
w
n
o
f
H
o
s
h
i
n
I
n
d
i
v
i
d
u
a
l
C
o
n
t
r
i
b
u
t
i
o
n
Sustained high
performance and
results
Team member
motivation
Source: Adapted from LEI
© Operational Excellence Consulting
THE PLANNING & EXECUTION TREE
17
True North
Speed – Cost – Teamwork
Targets:
Revenue = $500 million
Return on Sales = 10%
No layoffs
Quality People
Profitability Delivery
“Mother” A3 strategies
Departmental
Action Plans &
Kaizen Activity “Daughter”
Action Plans
Source: Adapted from Dennis
© Operational Excellence Consulting
Obstacles & Risks
Analyzing current
strategies, identifying
strengths and weaknesses,
and conducting a thorough
evaluation.
Hoshin Formulation
Efficient rollout and
communication of the A3
Hoshin Planning strategy
throughout the
organization.
Hoshin Deployment
Desired
State
Current
State
BRIDGING SUCCESS: A3 HOSHIN PLANNING JOURNEY
A3 Hoshin Planning
Journey
Anticipate challenges on your A3 Hoshin Planning
journey and skillfully navigate through difficulties.
18
© Operational Excellence Consulting
© Operational Excellence Consulting
HOSHIN CASCADE: UNLEASHING STRATEGIC FLOW
19
Organization’s
Guiding
Principles
True
North Vision
Strategies
A3s
Daily
Management &
Continuous
Improvement
Breakthrough
Objectives
A set of fundamental values
and principles that guide the
overall direction and decision-
making of the organization.
The compelling future
state that reflects the
organization’s ultimate
aspirations and purpose.
High-level, focused plans
outlining how the
organization will achieve
its True North Vision.
Ongoing processes and
practices to manage day-to-
day operations efficiently
and continuously improve
organizational performance.
One-page documents that
capture the essence of a
specific improvement project
or initiative, aligned with
organizational strategies.
Ambitious and
measurable goals derived
from A3s, representing
significant improvements
in key areas.
© Operational Excellence Consulting
HOSHIN FORMULATION & DEPLOYMENT
20
Hoshin Deployment
1
3
4
2
Desired State
Current State
Strategy
Future State
Status Quo
Hoshin
Formulation
Plan & Do
Check & Adjust
© Operational Excellence Consulting
ALIGNING STRATEGIES WITH THE TRUE NORTH VISION
21
Main Objectives:
Growth & Innovation
Product Innovation
● Introduce cutting-edge technologies and
features in current and new product
lines.
Market Leadership
● Strengthen market presence and
become a leading player in key markets.
Customer Experience Enhancement
● Elevate customer satisfaction through
improved services and support.
Support Objectives:
Operational Excellence
Talent Development
● Foster a culture of continuous learning
and development for employees.
Global Supply Chain Optimization
● Enhance efficiency and resilience in the
supply chain for global readiness.
Process Efficiency
● Streamline operational processes to
achieve excellence in efficiency and
quality.
ILLUSTRATIVE
© Operational Excellence Consulting
Concerns to
remain in sight
A3 EXCELLENCE UNVEILED: YOUR ROADMAP TO SUCCESS
22
Your main Objective for this Year
How you monitor
your plan
KPIs that illustrate your Objective
Reflections on Last Year
Critical Few Goals for This Year
Rationale that supports your
Critical Few Goals
Your Action Plan to Achieve the
Objective
1
2
3
4
5
6
7 8
© Operational Excellence Consulting
PURPOSE OF CHECK & ADJUST
23
MONITORING
Monitor hoshin plans
and results.
CONTINUOUS
IMPROVEMENT
Continuously
improve the hoshin
planning process.
PERFORMANCE
METRICS
Monitor key
performance
parameters, address
anomalies.
STATUS REVIEW
Review project status
aligned with strategic
objectives.
© Operational Excellence Consulting
TYPES OF STRATEGIC REVIEWS
Weekly
Review
Quarterly
Review
Annual
Review
24
Annual Review:
The pivotal event for assessing
the year's strategy deployment,
identifying root causes,
standardizing improvements,
and documenting lessons
learned for continual
enhancement.
Quarterly Review:
A comprehensive offsite
meeting to evaluate goal
contributions, review trends,
address challenges, and adapt
tactics for ongoing strategic
success.
Weekly Review:
A focused 90-minute session for
updating progress, addressing
discrepancies, and ensuring
alignment with strategic goals.
© Operational Excellence Consulting
“
Your work is going to fill a
large part of your life, and the
only way to be truly satisfied
is to do what you believe is
great work.”
STEVE JOBS
25
© 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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Strategic Planning: A3 Hoshin Planning Process

  • 1. © Operational Excellence Consulting A3 HOSHIN PLANNING Navigating Your Path to Clear Execution © Operational Excellence Consulting. All rights reserved.
  • 2. © Operational Excellence Consulting LEARNING OBJECTIVES 2 Master the hoshin planning process by translating the “True North” to the A3. Comprehend the Check and Adjust process for strategic review. Gain proficiency in using the A3 tool for effective hoshin deployment. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg
  • 3. © Operational Excellence Consulting CONTENTS 3 1 Key Concepts and Principles of Hoshin Planning 2 True North, A3 and Bridging the Gap 3 Hoshin Formulation and Deployment 4 A3 Template Overview 5 The A3 Completion Sequence 6 A3 Breakdown: Step-by-step Guide 7 Check and Adjust (Strategic Review) 8 Success Factors for A3 Hoshin Planning
  • 4. © Operational Excellence Consulting UNLOCKING STRATEGIC POTENTIAL 4 Missed Market Opportunities Identify untapped markets by improving preparedness. Future Opportunities Envision and prepare for opportunities beyond current capabilities. Anticipated Challenges Proactively address upcoming challenges for resilience. Unexplored Initiatives Overcome resource constraints to pursue pending projects.
  • 5. © Operational Excellence Consulting THE CASE FOR HOSHIN PLANNING 5 1 3 4 2 Desired State Current State Strategy Future State Status Quo With the Hoshin Planning process, you can prioritize truly important aspects, propelling your organization from the Future State Status Quo to the Desired State, without getting bogged down by every detail.
  • 6. © Operational Excellence Consulting BENEFITS OF HOSHIN PLANNING 6 Prioritizes Importance Over Urgency Ensures focused attention on what is truly important, not just what is urgent. Drives Collaborative Results Enables outcomes that go beyond the capabilities of independent or loosely collaborating country/function operations. Enhances Accountability and Support Facilitates effective management follow-up to hold participants accountable for their plan and offers support as needed.
  • 7. © Operational Excellence Consulting 7 DEFINITION OF HOSHIN PLANNING Hoshin kanri or hoshin planning is the short-term (one year) and long-term (three- to five-year) process used to identify and address critical business needs and develop the capability of our people, achieved by aligning company resources at all levels and applying the PDCA cycle to consistently achieve critical results. PASCAL DENNIS Author of ‘Getting the Right Things Done’
  • 8. © Operational Excellence Consulting OBJECTIVES OF HOSHIN PLANNING 8 Clarity & Alignment Assure that everyone is going in the same direction with the same amount of effort. Results Each individual is accountable for the overall strategy’s success. Quick Response Create a sense of urgency for the focused activities. Stay on schedule. Focus Narrow down what is important to the organization. Don’t complicate it.
  • 9. © Operational Excellence Consulting HOSHIN PLANNING: CLARITY ACROSS ALL LEVELS ACCELERATES SUCCESS 9 Top Management Value Added Workforce Good Clarity and Understanding at all Levels Middle Management Velocity Towards the Vision Informed Insights and Feedback Flow
  • 10. © Operational Excellence Consulting PRINCIPLES OF HOSHIN PLANNING 10 Plan-Do-Check-Act Drive continuous improvement. Cause & Effect Analyze relationships for effective problem-solving. A3 Thinking Storytelling in planning, structured execution. True North Align on business purpose and strategy. Pareto Principle Focus on vital few for significant impact. Catchball Foster alignment through open discussions.
  • 11. © Operational Excellence Consulting HOSHIN PLANNING IS BASED ON THE PDCA CYCLE 11 PLAN: § Define organizational-level objectives, goals, activities, and targets § Answer the question, “Where are we going and how do we get there?” DO: § Translate and deploy organizational plans, level by level § Execute according to those plans ADJUST: § Address problems identified in the check process § Implement countermeasures based on a root cause understanding CHECK: § Analyze actual vs. planned results § Differentiate normal vs. abnormal; make problems visible Hoshin Planning Process
  • 12. © Operational Excellence Consulting HOSHIN PLANNING PROCESS & PDCA CYCLES 12 Determine current condition Prioritize and select breakthrough objectives Determine desired condition Deploy the plan (catchball) Create plan to achieve breakthrough objectives Annual review: Reflection and learning points Confirm and implement plan (A3 report) Review plan (weekly, monthly, biannual) P D C A P D C A P D C A Note that there is a 3rd PDCA cycle over a 3-5 year horizon 2nd PDCA cycle 1st PDCA cycle Hoshin Planning comprises overlapping PDCA cycles Source: Adapted from Dennis
  • 13. © Operational Excellence Consulting “ You’ve got to think about big things while you are doing small things, so that all the small things go in the right direction.” ALVIN TOFFLER 13 Author and futurist
  • 14. © Operational Excellence Consulting WHAT IS “TRUE NORTH”? 14 True North serves as a vision for the company’s middle-term destination. It answers the question: Where do we want to go? VISIONARY DIRECTION True North establishes main objectives supporting the vision. It addresses obstacles, defining key targets for success. OBJECTIVE FRAMEWORK True North guides efficient focus on critical topics. It involves leadership, monitoring, and accountability for chosen programs. EFFICIENT FOCUS
  • 15. © Operational Excellence Consulting TRUE NORTH: SETTING THE COURSE 15 Manufacture, Implement, and Deliver top-quality products efficiently and economically to delight our Customers. Emphasize key aspects of the value proposition (Quality, Efficiency, Cost-effectiveness, Timeliness) to become the preferred supplier, delivering significant benefits to both Customers and the Organization. VISION (e.g. of a manufacturing company) STRATEGY
  • 16. © Operational Excellence Consulting HOSHIN PLANNING: TACKLING COMPANY PROBLEMS AT EVERY LEVEL 16 P D C A P D C A P D C A P D C A P D C A P D C A P D C A P D C A P D C A V E R T I C A L A L I G N M E N T V E R T I C A L A L I G N M E N T HORIZONTAL ALIGNMENT Group and Individual Problem Solving Department Hoshin Company Hoshin B r e a k d o w n o f H o s h i n I n d i v i d u a l C o n t r i b u t i o n Sustained high performance and results Team member motivation Source: Adapted from LEI
  • 17. © Operational Excellence Consulting THE PLANNING & EXECUTION TREE 17 True North Speed – Cost – Teamwork Targets: Revenue = $500 million Return on Sales = 10% No layoffs Quality People Profitability Delivery “Mother” A3 strategies Departmental Action Plans & Kaizen Activity “Daughter” Action Plans Source: Adapted from Dennis
  • 18. © Operational Excellence Consulting Obstacles & Risks Analyzing current strategies, identifying strengths and weaknesses, and conducting a thorough evaluation. Hoshin Formulation Efficient rollout and communication of the A3 Hoshin Planning strategy throughout the organization. Hoshin Deployment Desired State Current State BRIDGING SUCCESS: A3 HOSHIN PLANNING JOURNEY A3 Hoshin Planning Journey Anticipate challenges on your A3 Hoshin Planning journey and skillfully navigate through difficulties. 18 © Operational Excellence Consulting
  • 19. © Operational Excellence Consulting HOSHIN CASCADE: UNLEASHING STRATEGIC FLOW 19 Organization’s Guiding Principles True North Vision Strategies A3s Daily Management & Continuous Improvement Breakthrough Objectives A set of fundamental values and principles that guide the overall direction and decision- making of the organization. The compelling future state that reflects the organization’s ultimate aspirations and purpose. High-level, focused plans outlining how the organization will achieve its True North Vision. Ongoing processes and practices to manage day-to- day operations efficiently and continuously improve organizational performance. One-page documents that capture the essence of a specific improvement project or initiative, aligned with organizational strategies. Ambitious and measurable goals derived from A3s, representing significant improvements in key areas.
  • 20. © Operational Excellence Consulting HOSHIN FORMULATION & DEPLOYMENT 20 Hoshin Deployment 1 3 4 2 Desired State Current State Strategy Future State Status Quo Hoshin Formulation Plan & Do Check & Adjust
  • 21. © Operational Excellence Consulting ALIGNING STRATEGIES WITH THE TRUE NORTH VISION 21 Main Objectives: Growth & Innovation Product Innovation ● Introduce cutting-edge technologies and features in current and new product lines. Market Leadership ● Strengthen market presence and become a leading player in key markets. Customer Experience Enhancement ● Elevate customer satisfaction through improved services and support. Support Objectives: Operational Excellence Talent Development ● Foster a culture of continuous learning and development for employees. Global Supply Chain Optimization ● Enhance efficiency and resilience in the supply chain for global readiness. Process Efficiency ● Streamline operational processes to achieve excellence in efficiency and quality. ILLUSTRATIVE
  • 22. © Operational Excellence Consulting Concerns to remain in sight A3 EXCELLENCE UNVEILED: YOUR ROADMAP TO SUCCESS 22 Your main Objective for this Year How you monitor your plan KPIs that illustrate your Objective Reflections on Last Year Critical Few Goals for This Year Rationale that supports your Critical Few Goals Your Action Plan to Achieve the Objective 1 2 3 4 5 6 7 8
  • 23. © Operational Excellence Consulting PURPOSE OF CHECK & ADJUST 23 MONITORING Monitor hoshin plans and results. CONTINUOUS IMPROVEMENT Continuously improve the hoshin planning process. PERFORMANCE METRICS Monitor key performance parameters, address anomalies. STATUS REVIEW Review project status aligned with strategic objectives.
  • 24. © Operational Excellence Consulting TYPES OF STRATEGIC REVIEWS Weekly Review Quarterly Review Annual Review 24 Annual Review: The pivotal event for assessing the year's strategy deployment, identifying root causes, standardizing improvements, and documenting lessons learned for continual enhancement. Quarterly Review: A comprehensive offsite meeting to evaluate goal contributions, review trends, address challenges, and adapt tactics for ongoing strategic success. Weekly Review: A focused 90-minute session for updating progress, addressing discrepancies, and ensuring alignment with strategic goals.
  • 25. © Operational Excellence Consulting “ Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work.” STEVE JOBS 25
  • 26. © 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