This blog gives you an quick overview of hoshin kanri and why you should know this effective strategy deployment method.
What is Hoshin Kanri
Hoshin Kanri (HK) is an effective strategy execution management method that combines long-term strategic objectives with actions to be taken in order to achieve them (development projects), and metrics that ensures transparent follow up of strategy implementation. This strategy execution method is powerful in aligning actions across the organization towards common objectives. Hoshin Kanri was developed in Japan and the words mean “direction” and ”management”.
A growing number of organizations have recognized the benefits of the method in implementing the strategy and therefore the use of Hoshin Kanri is increasing at an accelerating rate.
4 reasons why Hoshin Kanri enhances organization’s competitiveness
Helps to build a link between objectives, actions and KPIs
Hoshin Kanri often utilizes an X matrix that visually connects long-term objectives, activities and metrics. Organizations where staffs’ work can be directly linked to strategy are more successful and witness higher commitment of all organizational members.
Ensures the focus of operations
Hoshin Kanri is a layered management model where a each team prepares own objectives and in particular chooses small amount of activities that help them to reach objectives. Focusing on only a few breakthrough objectives at a time and ensuring that actions related to the objectives get a sharpened focus on action.
Increases organizational collaboration and transparency
In Hoshin Kanri, dialogue, or “catchball” within an organization, helps to align goals and actions in a common direction. Thru this process, potentially conflicting goals are easy to spot. Moreover, each team starts owning clear goals that are linked to the corporate strategy; everyone becomes aware of colleagues’ efforts. Such transparent management model engages and motivates staff and helps to maintain self-direction.
Lay the foundation for effective leadership
With Hoshin Kanri, effective day-to-day management principles can be easily extended to the entire organization. The method does not force a particular way of leading, but nevertheless provides a good basis for effective leadership.
What gets measured, gets done.
Who is benefiting from Hoshin Kanri?
Hoshin Kanri is well known worldwide and is used by many successful companies: Tesla, Toyota, Caterpillar, HP and Bank of America. In addition, many hospitals, municipalities, and other public organizations are already utilizing this effective method of strategy management.
Hoshin Kanri helps large organizations reach a common line and increase cooperation, however, even smaller organizations benefit from an easy way to visualize strategy and ensure prioritization of actions. The management system, transparency and enhanced cooperation of the organization support the commitment of the staff.
Every organization can benefit from HK even if organization has pre-existing management structures, or strong organizational culture.
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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