3 basic elements of hoshin kanri

Every organization can benefit from Hoshin Kanri (HK) even if organization has pre-existing management structures, or strong organizational culture. Adopting company can choose between entirely embracing detailed HK management principles, or adopting only several main principles. Whichever approach is chosen, the following 3 main elements should be adopted:

1. Strategy documentation

The X matrix is a powerful document, which in one page describes the strategy and strategic actions. The X matrix helps in finding the focus. In the X matrix, the progress of KPIs and strategic projects are updated regularly.

Brief video introduces the X matrix:

2. Dialogue to align objectives

The dialogue or “catchball” is a stage in which objectives, plans and KPIs needs are recorded in an inclusive way. The role of middle management is significant, making their involvement important. In the dialogue, the organizational unit or team has received higher-level objectives, and on that basis, the teams are asked to develop their own objectives and plans that support the higher-level objectives. If the objectives cannot be committed to, a discussion will take place and the necessary changes will be agreed. The dialogue is efficient way to strengthen commitment and ownership.

3. Management process

The management process is an important part of a successful Hoshin Kanri implementation.  The goal of management processes is 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 development of the leadership and therefore the results tend to improve every year.

Amplon.io and strategy deployment

Amplon.io uses the Hoshin Kanri principles to engage all employees and to visualize the strategy.

With Amplon.io companies can design a bottom-up strategy and can easily adapt this software to their culture and processes. Amplon.io makes it easy to share common development projects and activities ensuring focus in the organization. Instant monitoring of strategy through software dashboards allows immediate reaction to any deviation.

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What is Hoshin Kanri

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