What is Hoshin Kanri?
Originating in Japan in the 1950s and widely adopted as the de facto Strategy Execution methodology, Hoshin Kanri means ‘compass management’ and serves to align the entire organization’s resources and actions with management’s strategic goals.
Increasingly, it is the choice of the lean enterprise seeking to close its strategy-to-execution gap, which is often driven by miscommunication and lack of plan buy-in.
Hoshin Kanri in Japanese translates to:
Hoshin = Direction / compass
Kanri = Control / management.
What does Hoshin Kanri do?
At its core, Hoshin Kanri is a Lean method to driving organizational alignment and successful execution of a strategy.
Given the growing complexities of modern work, a strategy can rarely be achieved without combining top-down and bottom-up goal setting and delivery.
That’s why Hoshin Kanri promotes conversations and negotiations around goals, making their definition and management easier, aligning three organizational levels:
– Corporate / Strategic: Whereby the strategic direction is set for the organization, covering vision, mission, breakthrough, and annual goals. This often sits with the CEO, CSO, and Cx.
– Tactical: Where improvement priorities are set, with initiatives and projects associated. Set at the director or middle manager level, these are core elements needed to deliver the strategy
– Front-line: At the operational level, here is where the work is being conducted for the projects and initiatives. Action plans, KPIs, journals, and regular reviews are crucial to ensure all work aligns with the company’s goals.
Why practice Hoshin Kanri?
Investing in a Strategy Execution methodology such as Hoshin Kanri allows your business to:
– Drive rigor into the way top-level strategic goals are cascaded throughout the organization.
– Ensure that these goals, and the strategic initiatives that relate to them, are aligned and understood across the organization.
– Ensure that progress and results can be regularly reviewed.
How to implement Hoshin Kanri
Getting started on implementing Hoshin Kanri begins with downloading x-matrix, bowling chart, and other educational resources. Simply click the links below to get yours:
– Hoshin Kanri Strategic Planning Template
– X-Matrix, Bowling Chart, and Action Plan Excel Templates and How-To For Dummies Guides
– Hoshin Kanri 101 Webinar Boxset
– Hoshin Kanri Book
– OKRs v OGSM v Hoshin Kanri eBook
Hoshin Kanri is recognized as one of the most rigorous methods of Strategy Execution that can yield considerable business benefit in the mid-to-long-term.
But what does Hoshin Kanri entail? Is Hoshin Kanri different from Policy Deployment, Goal Deployment and Strategy Deployment? What are the principles you need to know, and how can your organization replicate the success of Strategy Execution masters such as Danaher and Ingersoll Rand?
This is your guide to Hoshin Kanri and how it can help your organization turn strategy into operational reality.