Implementing hoshin kanri with software
This blog summarizes the benefits of hoshin kanri software and what to consider in implementation.
Hoshin Kanri (HK) is an effective strategy execution management method that combines long-term strategic objectives with actions to be taken to achieve them (development projects), and metrics that ensure transparent follow-up of strategy implementation. Hoshin planning method effectively aligns the organization toward common objectives. Hoshin Kanri was developed in Japan meaning ”direction” and ”management”.
Hoshin Kanri (sometimes also called Policy deployment, Strategy deployment, or Hoshin planning) is a strategic planning and execution management method. It is often associated with Lean principles and therefore often used in organizations that are already applying some parts of lean methods e.g. in their production.
Typical elements of the strategy are shown in the picture below. The areas that are covered with the hoshin kanri method are marked with green. It is a typical misunderstanding that Hoshin Kanri is a method that is used only in drafting a strategy. In fact, Hoshin Kanri is the operational part of the strategy linking strategic long-term objectives with annual objectives and strategic projects with KPIs. Strategic planning covers also the important phases of alignment within the organization. Besides the strategic planning part, Hoshin Kanri’s management process enforces transparency and continuous learning. In the execution phase, the management process and behavior focus on deviations from the plan. One of the key terms often associated with Hoshin Kanri is “Learn to plan”.
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.
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.
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.
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.
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 direction 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 Hoshin Kanri even if an organization has pre-existing management structures or a strong organizational culture.
From this blog, you can study if the Hoshin Kanri method would be suitable for your organization.
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.
Amplon uses the Hoshin Kanri principles to engage all employees and to visualize the strategy. Read more about Hoshin Kanri’s 3 basic elements here. The X matrix is a powerful strategy visualization and Amplon is X matrix software that combines strategic planning, project portfolio management, and performance management.
With Amplon companies can design a bottom-up strategy and can easily adapt this software to their culture and processes. Amplon 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. Read here why you should implement hoshin kanri with software.
This blog summarizes the benefits of hoshin kanri software and what to consider in implementation.
Summary of 3 basic elements of hoshin kanri method that help you to implement your strategy.
In this blog you find an short evaluation of the three most used strategy deployment methods – Objectives and Key Results (OKR), Hoshin Kanri (HK), and Balanced Scorecard (BSC).
These 8 tips help you to identify most important issues to plan your strategy execution.
Got a great strategy? How’s the implementation?
Amplon is a strategy deployment software that is available in many languages.