Hoshin Kanri : Translating Your Business Strategy into Roadmap

How Hoshin Kanri Can Steer Your Business Strategy

Are you : 

• Feeling lost at sea with your business goals? 
• Staring at a strategic plan that feels disconnected from daily operations?

If so, then Hoshin Kanri might be your missing piece.

Hoshin Kanri, which translates to “policy deployment” in Japanese, is more than just a fancy term. It’s a powerful framework for strategic planning and execution that can take your business from stagnant to steadily advancing.

Bridging the Gap Between Strategy and Action Many businesses struggle with a crucial gap:

The space between crafting a strategic plan and actually implementing it.

This is where Hoshin Kanri shines. It provides a structured approach to translate high-level goals into actionable steps that everyone in your organization understands and can contribute to.

Ready to Set Sail?  Read our article below

What is Hoshin Kanri ?

Hoshin Kanri it’s a tool for navigating the business strategies to become actionable steps. By fostering communication, alignment, and continuous improvement, it can help you drive towards long-term visionof the company.

Think of it like this: Your strategic plan is your desired destination, and Hoshin Kanri is the roadmap that gets you there.

Benefit of Hoshin Kanri Planning

In the dynamic landscape of business, strategic planning is the compass that guides organizations towards their goals. However, crafting a strategic plan is only half the battle. The real challenge lies in its effective execution. This is where Hoshin Kanri planning emerges as a game-changer. Let’s delve into this transformative methodology and explore its significant advantages, particularly its unique matrix system.

It helps you:

Align Everyone: Hoshin Kanri fosters a shared vision by cascading strategic goals down through the organization. Every department and employee understands how their role contributes to the bigger picture.

 Embrace Change: Change is inevitable in business. Hoshin Kanri’s focus on communication and employee involvement helps mitigate resistance to change by addressing concerns and fostering a sense of ownership.

 Measure Progress: Forget lofty goals with no clear way to track success. Hoshin Kanri emphasizes selecting the right Key Performance Indicators (KPIs) to measure progress towards strategic objectives.

 Hoshin Kanri isn’t a one-size-fi ts-all strategy. It provides a toolbox of techniques to guide your journey, including :

Catchball: This communication technique facilitates collaborative planning and ensures buy-in for strategic initiatives at all levels.

PDCA Cycle: The Plan-Do-Check-Act cycle, a core principle of Lean Management, complements Hoshin Kanri by providing a structured framework for continuous improvement within specific change initiatives.

Hoshin Kanri and Your Broader Business Strategy Hoshin Kanri doesn’t exist in a vacuum. It integrates seamlessly with other business strategy frameworks like the Balanced Scorecard, which provides a holistic view of organizational performance. This ensures your strategic change initiatives consider various aspects of the business.

Top company implement  Hoshin Kanri

To better understand the implementation and actual benefit of this method. Lets deep dive on company that implementing Hoshin Kanri :

General Electric CEO shifting board focus using lean method

While lean experts might criticize some aspects of that description, it effectively captures the essence of hoshin. Regardless of whether it’s called “hoshin,” “strategic planning,” or another term, ensuring that all employees understand the company’s strategy and their role in it is undeniably sound business practice. No executive would advocate for employees to be ignorant, uninformed, and disengaged.

Larry Culp GE CEO has also shifted the focus away from earnings per share (EPS), previously the most important metric at GE. Under his leadership, EPS is seen not as the ultimate goal but as a result of well-managed operations. Lean experts may see this shift as indicative of a lean mindset. However, it’s important to remember that Peter Drucker, in his 1954 book “The Practice of Management,” stated, “The purpose of business is to create and keep a customer.” He explicitly did not support prioritizing profits above all else. Therefore, is de-emphasizing EPS truly “lean,” or simply good management?

Source : Wall street journal

Introduction to Hoshin Kanri and Lean Management at Airbus Defence & Space

Company Overview

Airbus Defence and Space, a division of Airbus Group, is a leader in aeronautics, space, and defense services. The division was formed in 2014 by merging Airbus Military, Cassidian, and Astrium. It operates in 18 European countries and over 30 countries worldwide.

Lean Management Practices

Airbus Defence and Space has implemented lean management practices across its four business lines. The Military Aircraft division, in particular, began integrating lean methods in 2011, focusing on visual management, practical problem-solving, and Hoshin Kanri to set company-wide objectives.

Key Elements of Lean Management

1. Hoshin Kanri: Introduced in 2013, Hoshin Kanri helps align the company’s vision and objectives, ensuring that improvement priorities are established and results are measured against company goals.

2. Visual Management: This tool is essential for monitoring and managing objectives, integrating lean goals into daily operations.

3. Practical Problem Solving: Since 2014, this method has been a daily tool, supporting continuous improvement through Kaizen events and aligning with Hoshin Kanri objectives.

 Achievements and Challenges

By focusing on lean management, Airbus Defence and Space has achieved significant cost savings and improved operational efficiency. The ongoing challenge is to maintain this excellence and extend lean practices throughout the company’s network, including stakeholders and suppliers.

Conclusion

Airbus Defence and Space’s commitment to lean management, particularly through Hoshin Kanri, exemplifies the integration of strategic planning with operational excellence. This approach not only enhances performance but also supports the company’s broader vision of innovation and customer focus.

Source : AIRBUS DEFENCE & SpACE – Lean Analytics

Understanding Hoshin Kanri Planning Method

At its core, Hoshin Kanri is a strategic planning methodology originating from Japan. But what sets it apart from other planning methods? Hoshin Kanri is not just about setting lofty goals; it’s about translating these high-level objectives into actionable steps that drive meaningful organizational change. In essence, it serves as a bridge between strategy formulation and execution, ensuring that every level of the organization is aligned and working towards a shared vision.

The beauty of Hoshin Kanri lies in its structured approach. It provides a clear roadmap that outlines the strategic priorities, defines responsibilities, and sets measurable targets. This structured framework fosters clarity, accountability, and collaboration, making it easier for organizations to navigate complex challenges and seize new opportunities.

The Power of Hoshin Kanri Matrix

One of the standout features of Hoshin Kanri is its matrix system, often referred to as the Hoshin Kanri Matrix. So, what makes this matrix so impactful?

The biggest advantage of the Hoshin Kanri Matrix lies in its focus on cascading strategic policies throughout the organization. Unlike traditional planning methods that may lack alignment and coherence, the matrix system ensures that strategic goals are communicated clearly and consistently across all levels.

The matrix serves as a visual tool that maps out the strategic initiatives, aligning them with departmental objectives and individual responsibilities. This alignment fosters a cohesive approach to change management, driving organizational transformation through aligned actions.

Moreover, the matrix facilitates ongoing monitoring and evaluation of progress, enabling organizations to adapt and refine their strategies as needed. This iterative process of planning, implementation, and review promotes continuous improvement, ensuring that the organization remains agile and responsive to evolving market dynamics.

Conclusion  : Hoshin planning is right for my organizations?

In today’s competitive business environment, organizations need more than just a strategic plan; they need a robust framework that enables effective execution and fosters continuous improvement. Hoshin Kanri planning method offers precisely that.

By translating high-level goals into actionable steps and leveraging the power of the Hoshin Kanri Matrix, organizations can drive meaningful change, achieve alignment across all levels, and ultimately, unlock sustainable success.

Incorporating Hoshin Kanri into your strategic planning process can be a game-changing decision, empowering your organization to navigate challenges with confidence and seize opportunities with conviction.

So, are you ready to harness the power of Hoshin Kanri and steer your organization towards success? It’s time to embrace this transformative methodology and unlock your organization’s full potential.

Unlocking Organizational Success with Policy Deployment in Hoshin Kanri

Hey there, business enthusiasts! Ever heard of Policy Deployment? If you haven’t, buckle up because we’re about to dive deep into how this concept, also known as Hoshin Kanri, can revolutionize your organization’s approach to change management, business strategy, and Lean tool. Let’s get started!

Change Management: Aligning with Core Principles

Change is the only constant in business, right? Well, Hoshin Kanri’s structured approach to Policy Deployment aligns perfectly with core change management principles. How does it do that?

Firstly, Hoshin Kanri helps in creating a crystal-clear vision. It ensures everyone knows where the organization is heading and what role they play in getting there. This clarity minimizes confusion and empowers employees to act with purpose.

Secondly, managing resistance becomes a breeze with Hoshin Kanri. By fostering open communication and involving employees in the planning process, it helps address concerns proactively, turning potential roadblocks into stepping stones for progress.

Lastly, communication is key, and Hoshin Kanri knows it! It provides channels for transparent dialogue across all levels, ensuring everyone feels heard and valued. This fosters a culture of trust, making change management smoother and more effective.

Business Strategy: Bridging the Strategy-Execution Gap

Now, let’s talk business strategy. Ever felt like your strategic plans end up collecting dust on a shelf? Hoshin Kanri is here to change that!

Hoshin Kanri bridges the often-troublesome gap between strategy formation and execution. It does this by ensuring strategic goals cascade throughout all organizational levels. Yep, from the C-suite to the front lines, everyone is aligned and working towards the same objectives.

With Hoshin Kanri, you get a dynamic framework that not only sets strategic priorities but also defines clear responsibilities and measurable targets. This ensures accountability and keeps everyone focused on what truly matters, turning strategy into action!

Lean Management Context: A Core Principle for Continuous Improvement

Last but not least, let’s touch on Lean Management. Hoshin Kanri isn’t just a standalone tool; it’s a core principle within Lean Management.

But what does that mean? Well, Lean Management is all about continuous improvement, and Hoshin Kanri fits right in by promoting this ethos. It provides the structure needed to identify improvement opportunities, implement changes, and monitor results effectively.

By integrating Hoshin Kanri into your Lean Management practices, you create a powerful synergy that drives ongoing improvement across your organization. It’s like turbocharging your Lean efforts, making them more targeted, efficient, and impactful.

**Conclusion**

So, there you have it! Policy Deployment, or Hoshin Kanri, is a multifaceted approach that offers invaluable insights into change management, business strategy, and Lean Management. Whether you’re navigating organizational change, bridging strategy and execution, or driving continuous improvement, Hoshin Kanri has got you covered.

Ready to embrace Policy Deployment and unlock your organization’s full potential? Start integrating Hoshin Kanri into your practices today and watch your business thrive!