Managers know that without tracking and steering strategy deployment, the strategy is worthless. Coordinating strategy implementation is tough, especially in larger companies. Leaders juggle multiple responsibilities and urgent tasks, making it hard to focus on the future.
Customers often wonder if they’re using the right strategy deployment method. Several methods exist, all aiming to help organizations execute strategic plans. To choose the best one, managers need to consider their company’s structure, maturity, and industry. Each method follows a top-down approach but differs in how strategy is cascaded and aligned internally.
In this blog, we explore three common strategy deployment methods: Objectives and Key Results (OKR), Hoshin Kanri (HK), and Balanced Scorecard (BSC). We compare how each supports strategy execution. OKR, HK, and BSC aren’t exact formulas but adaptable frameworks for strategy execution.
OKR is a goal-setting framework popularized by companies like Google and Amazon. In OKR, teams and managers define objectives (qualitative goals) and 3–5 key results (quantitative indicators that measure progress). Objectives are paired with initiatives, the actions taken to achieve key results.
Company-level OKRs are set annually, while team and individual OKRs are set quarterly. This allows organizations to reach strategic initiatives through fast-paced, tactical objectives. The OKR framework drives toward high-level output but requires the organization to accept that not all goals will be met.
Hoshin Kanri is less known in Europe but used by companies like Tesla, Toyota, HP, and Bank of America. Rooted in lean philosophy, HK connects strategic objectives with organizational functions and activities over a longer period. It includes long-term objectives (3–5 years) and annual plans with specific goals, improvement actions, and responsibilities.
HK engages lower organizational levels in objective setting and improvement project planning. Managers and teams review upper-level objectives and propose ideas suited to their level. This process fosters ownership and commitment, ensuring everyone pulls in the same direction.
Read here for more about hoshin kanri
The Balanced Scorecard is a well-known method that combines financial and non-financial objectives in four areas: finance, customers, internal processes, and learning & growth. It links strategy with KPIs, specific targets, and projects that drive desired performance.
BSC encourages business units to align financial objectives with corporate strategy, ensuring financial goals lead other objectives. It tells the story of how the strategy will deliver long-term results.
It is important to remember that these methods and processes require both embedding in the culture and continuous nurturing through the management process. Once rooted in the organization, strategy execution management helps to accelerate growth and bring alignment and accountability across the organization.
Read here why you should implement hoshin kanri with software.
Amplon’s software draws inspiration from HK’s simplicity, helping managers and employees at all levels engage in strategy execution. It improves on HK by allowing companies to design a bottom-up strategy and adapt the software to their culture. Amplon’s dashboards provide real-time strategy monitoring, enabling quick responses to deviations.
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.
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.
The three basic elements of Hoshin Kanri—setting tangible objectives, aligning goals across the organization, and implementing a structured review process—are crucial for strategic alignment and continuous improvement. Understanding these core components helps organizations effectively achieve long-term success.
Effective strategy execution requires clear communication, prioritization, and continuous monitoring. Key tips include setting measurable goals, ensuring leadership commitment, fostering cross-functional collaboration, and maintaining flexibility to adapt to changes. Implementing these practices can significantly enhance the success of your strategic initiatives.
What unites Toyota Way, Danaher Business System, and GE’s Flightdeck?
These companies have branded the Hoshin Kanri method as their management system.
