Hoshin Kanri (also known as policy deployment, or “management by breakthrough”) first emerged in Japan in the 1960s, but has its roots in the US techniques of Management by Objectives (MBO) and the Plan-Do-Check-Act (PDCA) process improvement cycle, and has been successfully implemented by many leading western firms including Intel, Xerox, Procter & Gamble and Hewlett-Packard.
A Systematic Approach
Hoshin applies systems thinking and a structured planning, implementation, and review process to support the management of change in critical business processes. It is at its most effective when it is used to focus an organisation on the handful of breakthrough issues that if mastered will affect the strategic performance of the business - and the key performance indicators that will enable them to measure their progress.
Managing by Breakthrough
Hoshin makes it possible to challenge the status quo and achieve major performance improvements by focusing organisational attention on breakthrough issues and the strategies, tactics and metrics necessary to achieve the desired level of change. Hoshin objectives, goals, strategies and tactics cascade down the organisation and at each level employees have a clear sense of their expected contribution and the impact it will have on achieving the top-level goals of the organisation.
This progressive cascading of high-level strategic goals down the organisation into actions and metrics that are specific to a department or individual is one of the most powerful aspects of Hoshin, and a powerful source of inter-departmental co-operation and alignment. Hoshin, therefore, helps to:
- Focus everyone in an organisation on shared strategic goals
- Communicate those goals to all concerned
- Involve everyone in the organisation in achieving the goals
- Hold everyone accountable for their contribution
- Balance continuous improvement against breakthrough initiatives
Hoshin and Lean Sales and Marketing
Hoshin is a particularly powerful complement to lean sales and marketing. Once the process of buying has been defined and the initial value stream mapping completed, Hoshin provides the framework for aligning the whole organisation on those handful of key initiatives that will have the greatest impact on elevating customer value and eliminating wasted effort.
We have significant experience of helping organisations to apply the Hoshin planning methodology as a key element of their systematic drive towards perfection.
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