Hoshin kanri is a methodology that captures strategic goals and integrates this goals with the organizations daily activities. It involves planning, development of targets, development of action plans to achieve the targets and deployment of both. It is a systems approach to management of an organization and a defined process to improve critical key performance indicators.
Hoshin kanri systematized strategic planning. In order to be effective, it must be cross functional, and promote cooperation across the organization. It is a seven step process:
Establish vision and goals
Identify the challenges, both short and long term that effect the organization.
Establish KPI for these challenges
Establish strategies for achieving the KPI
Establish a process for achieving the KPI
Implement performance measures for the processes
Measure, measure, measure.
The hoshin kanri process uses a series of tables. The tables are standardized so anyone glancing at any table immediately understands where the organization or any part of the organization is in terms of performance. Each table includes :
The current state
Future state or what they want to achieve
Milestones that indicate success
Strategies as to who the future state is achieved
Tables are used to easily visualize where we are in the process. These tables are:
The X Matrix
The Hoshin Plan Summary
The Hoshin Implementation Plan
The Hoshin Implementation Review
In subsequent articles we will deal with each table and its use. We’ll start at the top,of the organization with strategic goals and in four steps cascade them down to specific departmental goals that support the strategic goals. We’ll conclude by showing how this all folds into LEAN daily management.