Hoshin Kanri

Hoshin Kanri is a Japanese term meaning: Strategic Planning, Policy Deployment, and Hoshin Planning etc. It was develop in 1950s by Prof.Y ogi Akao.

The crux of entire Hoshin Kanri is as below: “Each person is an expert in his own area and allows authority & ownership to everyone for betterment of an organization.”

There is a Seven step Process for successfully implementing a Hoshin Kanri in your organization. It is:

  1. Identify the key issues faced by the organization
  2. Set the goals to achieve/solve the issues
  3. Develop strategies to achieve the goals
  4. Establish tactical plan for each strategy
  5. Implement performance measurement for each process
  6. Measure them against the tactical plan, strategies, and goals
  7. Review them for identifying loopholes and opportunities of improvement
  8. Repeat the exercise
Seven step Process for successfully implementing a Hoshin Kanri in your organization

Hoshin Kanri also provides us with tools and tables for our benefit. It insists a management on maintaining and reviewing four tables. They are:

  1. Hoshin Review Table: Which has the Strategies, Plan and achievement documented
  2. Strategy Implementation Table: which has details on Plan, process, metrics
  3. Business Fundamentals Table: which has all the metrics and their performance over a period of time against the targets reviewed frequently
  4. Annual Planning Table: which has the issues, Objectives & Strategic Plans Vs Achievement.

Periodic review of these tables involving relevant stakeholders at all levels is a must for the success of this practice.

Hoshin Kanri resembles a PDCA cycle on a macro level with a rigid framework for planning, placing issues with right stakeholders, involving the ground level people in problem solving. Thus it is able to bring success when it is implemented properly.

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