How to use the Hoshin Kanri method for strategic planning
The Hoshin Kanri method is a strategic planning tool that businesses can use to help them achieve their long-term goals. By mapping out the steps required to achieve these goals, companies can create a plan that can be followed and tweaked as needed. Additionally, the Hoshin Kanri method can help businesses keep track of their progress and ensure that they are on their way to meeting their goals. This post will explain how businesses can use the Hoshin Kanri method to improve their strategic planning. We will also provide tips and downloads on this powerful tool.
What is the Hoshin Kanri?
Hoshin Kanri is a strategic planning and management system created in Japan. It focuses on aligning an organisation’s goals and strategies to ensure everyone in the company is on the same page. This methodology involves a top-down approach, with senior leaders establishing key objectives that employees can use to craft solutions. The Hoshin Kanri process also uses monitoring tools, such as regular checkpoints, to ensure goals are clearly defined and achievable. Due to its thorough yet efficient approach to organisational planning, many successful businesses have adopted this method in their plans for long-term success.
How can you use the Hoshin Kanri method?
The Hoshin Kanri method, which originates in Japan, is a process used to create a successful plan for business or organisational initiatives. It requires investing in clear goals and associated strategies while identifying measurable objectives through creative problem-solving techniques. This process includes setting targets, finding ways to measure progress against them, managing changes as needed and following up regularly. To use this method, businesses and organisations should identify the most important objectives and create action plans with achievable outcomes. The next step is to develop potential solutions for each objective through brainstorming and including different perspectives from employees. Finally, initiate the project by allocating resources appropriately to reach goals within an allotted time period and periodically assess the results. By applying this tried-and-true method, businesses and organisations can build effective plans to help them grow and succeed.
The Hoshin Kanri Matrix
The Hoshin Kanri matrix is an essential part of the Hoshin Kanri strategic planning method. It is a visual representation of objectives and strategies used to monitor progress and ensure goals are met. It typically consists of four columns: objectives, strategies, methods and indicators. The objectives column lists the long-term plans for the organisation; the strategies column outlines how to reach those objectives, the methods column provides specific action steps for achieving those goals; and indicators show the progress made against each of those targets. This matrix helps businesses keep track of their goals and ensure that everyone in the organisation is on the same page about what needs to be done. It also helps leaders identify areas where improvement is needed and adjust plans accordingly.
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The Seven steps of Hoshin Kanri Planning Process
The 7 Steps of Hoshin Kanri Planning are designed to help businesses and organisations achieve long-term goals. This method involves a top-down approach, with senior leaders establishing objectives that employees then use to craft solutions. The seven steps are as follows:
1. Establish your organisational vision
2. Develop strategic objectives
3. Develop annual objectives
4. Cascade goals throughout the organisation
5. Execute objectives
6. Implement monthly reviews
7. Conduct annual reviews
1. Establish your organisational vision
Hoshin Kanri is a strategic planning and management system created in Japan that focuses on aligning an organisation’s goals and strategies to ensure everyone in the business is on the same page. This methodology involves a top-down approach, with senior leaders establishing key objectives that employees can use to craft solutions. The Hoshin Kanri process also uses monitoring tools, such as regular checkpoints, to ensure goals are clearly defined and achievable.
2. Develop strategic objectives
The second step of the Hoshin Kanri planning process is to develop strategic objectives. This involves setting clear goals with measurable outcomes aligned with an organisation’s vision. During this stage, leaders should identify key objectives and create action plans for achieving them. They should look for breakthrough objectives using the hoshin planning process to support their strategic goals. Additionally, they should use creative problem-solving techniques and involve different perspectives from employees to come up with potential solutions for each objective. This is often called “hoshin kanri catchball”, where teams discuss possible goals and targets and develop tactics to achieve the results. It’s essential to ensure that these objectives are realistic and achievable and have a timeline attached to monitor progress regularly. By setting out their goals at this stage properly, businesses can ensure the successful implementation of their plan later on down the line.
3. Develop annual objectives
The third step of the process is to implement annual objectives. This step involves creating a year-long action plan outlining how each strategic objective will be achieved. It must also include specific indicators and resources that can be used to track progress along the way. During this stage, it’s important to break goals into smaller tasks and assign them to individual employees or teams to ensure they are addressed promptly and managed by both the leadership team and middle management. Additionally, businesses and organisations should review their objectives regularly and make necessary adjustments through continuous improvement to stay on track with their overall vision. By following these steps carefully, businesses can create a practical and achievable annual plan that will help them reach their long-term goals.
4. Cascade goals throughout the organization
The fourth step of the Hoshin Kanri process is to cascade goals throughout the organisation. This involves communicating objectives, plans and progress updates to employees at all levels. It’s vital to ensure that everyone in the business knows their role and how they will contribute towards reaching success. Depending on the size and structure of the organisation, this can involve meetings, emails, newsletters or other communications channels. Additionally, senior leaders should support their staff by providing feedback, encouragement and guidance whenever necessary. By cascading goals throughout the organisation, businesses can ensure that every employee understands their role in achieving success and remains focused on meeting objectives. They should also take regular reviews and measurements to ensure everyone is on track with their goals and make adjustments as needed. Doing this allows organisations to keep tabs on progress towards achieving key objectives and adjust plans accordingly if required.
5. Execute annual objectives
The fifth step of the Hoshin Kanri process is to execute annual objectives. This involves taking action on the goals set out, with each team, team leader or department responsible for its activities. Once these actions have been identified, it’s important to assign tasks to team leaders and individuals within the organisation and provide them with any resources or guidance they may need to complete their assignments. At this stage, the hoshin kanri matrix plus lean tools, value stream mapping, 5S and other continuous improvement tools can all be leveraged to deploy annual objectives and build a company-wide strategy. Additionally, leaders should ensure that employee performance is monitored regularly across the entire organisation so that progress can be tracked and necessary adjustments can be made. It’s also important to provide feedback and recognition throughout this process to keep morale high and encourage employees to continue working towards the strategic plan. By executing annual objectives promptly and with clear communication between all parties involved, businesses can ensure that their goals are achieved successfully.
6. Implement monthly reviews
The sixth step of the Hoshin Kanri process is implementing monthly reviews. This involves regularly checking in with the business and assessing progress towards its strategic objectives. At this stage, leaders must provide clear direction to their teams about their goals and evaluate progress made over the past month. During these reviews, measuring performance against key indicators set out earlier in the planning process is helpful. Businesses should also use this time to reconfirm objectives and make necessary adjustments if needed. It’s also essential that senior staff provide feedback, guidance and encouragement throughout this process so that employees remain motivated and driven to meet their targets. By implementing monthly reviews, businesses can ensure that they are consistently making progress towards achieving their strategic objectives and making any necessary changes when needed.
7. Conduct annual reviews
The seventh and final step of the Hoshin Kanri process is to conduct an annual review. This involves looking back at the progress towards achieving strategic objectives over the past year and assessing what went well and what didn’t go according to plan. During this review, businesses need to evaluate both qualitative and quantitative aspects of their performance, such as customer satisfaction ratings, employee morale, sales figures, etc. Additionally, senior staff should devote time to further brainstorming ideas on how to improve performance in the upcoming year and make any necessary changes. Furthermore, this is also an opportunity for leaders to provide feedback and recognition to their teams in order to keep motivation high throughout the organisation. By conducting annual reviews and taking corrective measures where needed, businesses can ensure that they are consistently striving for success in their long-term goals.
What are some benefits of using the Hoshin Kanri
The Hoshin Kanri method is a popular and effective way of strategic planning that can help organisations maximise their short-term objectives while remaining laser-focused on long-term goals. The practice originates from the Japanese word “Hoshin”, which translates to “entering direction”. This method provides explicit instruction for key stakeholders regarding goals, objectives, strategies and processes. One notable benefit of this method is that it allows for strategic buy-in across an organisation so that everyone works together towards a common goal. It also encourages collaboration among all departments to ensure no gaps or discrepancies between strategy and execution. Additionally, Hoshin Kanri provides measurable key performance indicators (KPIs) to track progress and help identify areas of improvement, enabling leaders to make informed decisions on how best to further an organisation’s success. Ultimately, by using this systematic approach, businesses can maximise efficiency and increase communication for more outstanding results.
How can you start using the Hoshin Kanri
If you’re looking to take your strategic planning to the next level, Hoshin Kanri can be a highly effective tool. At its simplest, Hoshin Kanri consists of a system of setting goals and monitoring progress, but it goes much deeper than that. It involves identifying objectives, developing strategies and programs, creating action plans and allocating resources to ensure success. This process begins with gathering input from senior management and other stakeholders to prioritise projects that need attention. From there, you’ll want to map out processes for implementation and then formulate metrics to measure progress towards those objectives. Once objectives are met, it’s essential to reflect on what worked well and what didn’t to adapt tactics for future projects. Utilising Hoshin Kanri helps you focus on key performance indicators tied directly to long-term strategy, allowing you to create step-by-step plans for improving your organisation’s overall success.
The Hoshin Kanri method is a valuable tool for strategic planning that can be used to create a plan for your business or organisation. Some benefits of using the Hoshin Kanri method include improved communication, increased focus, and improved goal setting. If you’re interested in using the Hoshin Kanri method for your strategic planning purposes, there are a few things you need to do to get started. First, you’ll need to gather all relevant stakeholders and explain the process. Next, you’ll need to develop measurable goals and objectives. Finally, you’ll need to create an action plan and implement it.
Learning more about Hoshin Kanri
Leanscape.io is the ideal resource for companies looking to develop their strategy using Hoshin Kanri. Our cutting-edge software provides user-friendly tools that allow leaders to easily track, assess and optimise their performance at a glance through visual data insights. This helps teams identify where they need to make improvements and stay on top of goals, while still focusing on the bigger picture. With Leanscape.io, stakeholders can collaborate in real-time to ensure they are always on the same page regarding strategic planning. Additionally, our platform allows teams to quickly respond to changes in the market or competitive landscape with just a few clicks of a button. It’s never been easier to utilise the Hoshin Kanri method for strategic planning – let Leanscape.io help you reach your organisational goals!
If you’d like more information about how we can help you with your strategic planning needs, please feel free to get in touch with us today!
Download: Hoshin Kanri Template (Excel)
Download the Hoshin Kanri Excel template now and get started on achieving your business goals. Click here to download.
