Most organizations conduct annual goal setting exercises. They spend an inordinate amount of time and resources developing goals at every level of the organization. Those carefully formulated goals then go into a drawer, never to be seen again. A year later the organization laments on lack of progress and resolutely starts the gal setting exercise all over again.
The key element of the hoshin kanri process, which is the strongest feature of the process,is the Hoshin implementation review. In this review, the owners of the core objectives report on progress and are held accountable for results. The owners are expected to report on key performance indicators (KPI) and whether the KPI were made or missed. Additionally, the owners should report on the root cause or causes that led to the missed KPI and the counter measures taken to correct the root cause.
These review meeting should be held on a scheduled regular basis, quarterly at a minimum. The tone of the meeting should be positive and celebratory where results were met and helpful when owners are struggling with results. Mistakes should be viewed as a learning opportunity. Outside the box thinking should be encouraged. The mantra should be: “We are free to try anything as long as it meets the needs of our customer and is done with respect.”
is critical that the review meetings are well designed and lead. The focus must always be on outcomes and deliverables relating to hoshin objectives and core objectives. There should be a standard reporting tool. Each owner should is expected to report on:
- List the KPI.
- Target measurement.
- Short explanation as to why the goal was missed.
If the goal was missed, the owner should also report on:
- The short term countermeasures taken to address the problem.
- The determination of the root cause.
- The permanent solution implemented to prevent the problem from reoccurring.
If, as part of the regular review, unexpected events or circumstances may come to light that require the plans to change in order to take those events or circumstances into account. Plans can and should be modified if necessary. The changes should be documented and shared with everyone. In this way organizations can ensure their long term success and continued growth.