3 basic elements of hoshin kanri

A leader leading Hoshin Kanri strategy deployement

Every organization can benefit from Hoshin Kanri (HK) even if it has pre-existing management structures or a strong organizational culture. The adopting company can choose to fully embrace detailed HK management principles or selectively adopt several key principles. Regardless of the approach, the following three main elements should be included:

1. Strategy documentation

The X matrix is a powerful document that describes the strategy and strategic actions on one page. It helps in finding the focus. The progress of KPIs and strategic projects is updated regularly in the X matrix. Here is our X matrix guide link.

Besides the X matrix, each organization should also define the following standard documents:

  • A project charter that specifies the basic information of each improvement project. It is often also called project A3, as the information should fit in one A3-sized paper.
  • A countermeasure document is used in case a project or a KPI falls behind targets. The countermeasure document contains the corrective actions that are needed.
Diagram of X matrix showing four dimensions: long-term objectives, annual objectives, improvement projects, and KPIs, with visualized correlations between each element.

Sections explained:

  1. Long term objectives.
  2. Annual objectives, often also referred to as budget objectives.
  3. Improvement projects.
  4. Key Performance Indicators.
  5. Improvement project owners.
  6. Correlation symbols between each element to clarify how things are connected.

You can also view a short explainer video about the X matrix:

2. Dialogue to align objectives

The alignment dialogue, or “Catchball,” is first a stage where teams review and record objectives, plans, and KPIs inclusively. Next, middle management plays a significant role in this process, making their involvement crucial. During the dialogue, each organizational unit or team receives higher-level objectives. Based on this, teams are tasked with developing their own objectives and plans that align with the overarching goals. However, if the teams cannot commit to these objectives, discussions will occur to agree on necessary changes. Ultimately, this dialogue effectively strengthens commitment and ownership.

3. Management process

The management process is an essential part of a successful Hoshin Kanri implementation.  Management processes aim to ensure that everyone knows what is being done, when, and why. Furthermore, a robust management process enables transparency and timely corrective actions if needed.

Basic elements of the management system:

  • Annual schedule for management process
  • Progress reviews and corrective measures
  • Standard documentation
  • Transparency to the employees

Implementing Hoshin Kanri doesn’t require much from the organization, but the results can be observed quickly after its adoption. HK method supports leadership development; therefore, the results tend to improve yearly.

Amplon is Hoshin Kanri software

Amplon uses the Hoshin Kanri principles to engage all employees while visualizing the strategy. To learn more, read about how Amplon’s features will benefit you.

Furthermore, with Amplon, companies can design a bottom-up strategy and easily adapt the software to their culture and processes. In addition, Amplon simplifies sharing common development projects and activities, ensuring organizational focus. Moreover, instant strategy monitoring through software dashboards allows for immediate reactions to any deviation. Read here why you should implement Hoshin Kanri with software, not Excel spreadsheets.

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Amplon interface of interactive Hoshin Kanri X matrix for strategic planning and communication

The Ultimate Hoshin Kanri X Matrix Guide

The “Ultimate Hoshin Kanri X Matrix Guide” provides an in-depth exploration of the X Matrix as a critical tool for strategic planning and execution. This guide details how the X Matrix aligns organizational objectives, improvement projects, and KPIs to ensure cohesive strategy deployment across all levels. With a focus on clarity and alignment, the X Matrix simplifies complex strategic processes into a single, visually engaging framework.

Amplon interactive X matrix software providing a clear and easy-to-understand visualization of the X matrix

Implementing hoshin kanri with software

Hoshin Kanri software, like Amplon, revolutionizes strategic planning by using a digital X matrix to align organizational goals with vision and mission, ensuring transparency and collaboration. This approach offers real-time data updates and intuitive interfaces, making the strategic process more agile and efficient than traditional Excel tools.

Compass symbolizing the future, representing the Hoshin Kanri strategic planning framework that aligns organizational direction and goal achievement

What is Hoshin Kanri

Hoshin Kanri is a strategic planning method that aligns an organization’s long-term vision with its daily operations, ensuring continuous improvement and clear communication across all levels. By focusing on setting and achieving breakthrough objectives, Hoshin Kanri helps organizations stay on track toward their strategic goals.

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What if your organization were perfectly aligned to execute its strategy? Amplon makes the alignment easy.