Mastering Strategy Deployment with the Right Management System
The strategy is planned, objectives are set, and each department has a well-structured X matrix in place. But what comes next?
Up to 90% of strategies fail to be executed successfully, leaving only 10% of organizations achieving full implementation of their strategic plans. To be part of the latter, a structured approach to strategy execution is crucial. This article breaks down the seemingly complex but essential phase of the Hoshin Kanri process and provides a step-by-step guide for what to do after finalizing your strategy.
Strategy Execution in the Hoshin Kanri Process
Strategic planning can take months, depending on the organization. However, the real challenge begins afterward—every strategy is only as good as its execution. To ensure successful implementation, regular progress monitoring and check-ins are essential. While not all levels need to be involved at the same frequency, keeping everyone aligned and informed is key.
Overview: The Hoshin Kanri Management Process
The infographic below illustrates the phases and key elements from strategy to daily operations, and highlights where the Hoshin Kanri management process fits in.
Plan-Do-Check-Act: Bottom-up Execution
One of the biggest challenges in strategy execution, especially in complex organizations, is ensuring alignment across different hierarchy levels. The solution? A structured management process executed at every level, with progress systematically reported upward.
In practice, meetings should be scheduled in a staggered manner. This approach allows management teams to relay key updates, highlight roadblocks, and ensure transparent communication across all levels.
The composition of the management team and meeting participants is crucial. Each unit’s management team should include both its own managers and those of its sub-units. This ensures that updates and key information from sub-units are effectively communicated to the next organizational level, fostering transparency and strategic coordination.
The following graphic illustrates the information flow across the organizational layers and departments.
Meeting Cadence for a Successful Hoshin Kanri Management Process
The Hoshin Kanri strategy includes several critical elements, but they don’t all need to be reviewed with the same frequency or by the same group of people. Let’s break down the essential elements of an effective Hoshin Kanri strategy execution, from weekly check-ins to annual strategy assessments.
The infographic below provides an overview of a well-structured Hoshin Kanri management review meeting cadence.
The following illustration provides an overview of the meetings’ agenda and content to ensure that all relevant topics are covered.
1. Project Management Check-in
Frequency: Weekly
Participants: Project Owner and Project Manager
Objective: Identify challenges and roadblocks, gather information for monthly progress meetings
A weekly check-in between the project owner and project manager helps maintain momentum. These meetings don’t have to be lengthy—a quick, informal 15-minute call is often enough to stay on track.
However, the success of these check-ins depends on discipline and preparation outside the meetings. Project progress should be updated consistently, and any potential issues flagged early to ensure meaningful discussions without unnecessary formality.
Depending on the project’s timeframe and criticality, check-ins can also be longer and more structured. This should be agreed upon case by case.
2. Project Progress Update
Frequency: Monthly
Participants: Management Team
Objective: Align on project and KPI progress, determine next tactical steps
Regular progress reviews are essential for successful strategy deployment. Monthly meetings help keep leadership informed and allow for early identification of potential issues. To ensure an efficient meeting every time, KPIs and projects should be thoroughly reviewed and updated by the project manager and project owner.
Discussions during the project progress update should focus specifically on project status and KPIs, steering clear of broader topics like strategic objectives or resource allocation. Progress is reviewed using a “management by exception” approach, which focuses on deviations and areas that are off track. If a monthly project progress or KPI target is not achieved two months in a row, it is considered best practice to require Root Cause & Counter Measure (RCCM).
A key goal of the monthly progress update is to equip managers with all relevant information needed for subsequent meetings at the next organizational level.
3. Objective Status Review
Frequency: Quarterly
Participants: Management Team
Objective: Evaluate progress on annual objectives and review resource allocation
Annual objectives serve as the foundation of any strategy, but frequent check-ins can sometimes lead to misleading conclusions due to short-term fluctuations. A quarterly or semi-annual review is typically sufficient to ensure alignment while minimizing reactionary decision-making.
These meetings should focus on evaluating progress, reviewing resource allocation, and assessing the project portfolio to ensure smooth execution of the strategy. Additionally, the annual objectives should be critically reviewed and adjusted if necessary.
Macroeconomic developments, as well as internal factors, can impact the achievability of objectives and, in some cases, make them unrealistic. An interactive X matrix in Hoshin Kanri software like Amplon provides a clear overview of all dependencies, making further adjustments easier.
4. Strategy Assessment
Frequency: Annually
Participants: Management Team
Objective: Review long-term strategic progress and adjust plans as needed
Beyond reviewing annual objectives, organizations must assess their overall strategy and long-term objectives. During this annual session, the management team evaluates progress, discusses necessary adjustments, and refines the strategy to keep it relevant and effective.
Taking past learnings and developments into account ensures that the strategic plan remains a realistic and valuable guiding framework for the organization.
Consistency is Key in the Hoshin Kanri Process
While recurring meetings may seem tedious, consistent reviews are essential for successful strategy execution. To make these meetings productive rather than bureaucratic, consider the following best practices:
- Block recurring slots well in advance to find suitable times for all participants.
- Send an agenda ahead of time to set expectations and avoid off-topic discussions.
- Dedicate 70% of the monthly meeting agenda to day-to-day business and 30% to strategy, making sure that both operational and strategic topics are adequately covered.
- Ensure diligent preparation from all attendees to maximize efficiency.
- Follow a dedicated process for responding to deviations, including root cause analysis and counter measure actions.
- Send a short summary after each meeting to track action items and set the stage for the next cycle.
The best way to structure and streamline the whole Hoshin Kanri process is by using an interactive Hoshin Kanri software like Amplon. With built-in progress tracking and meeting structures, it eliminates duplicate work and ensures full transparency.
Want to ensure your strategy execution is a success? Book a demo today and see how Amplon can support your organization’s strategy execution!
