Become strategy execution specialist with these instructions

Strategy deployment is challenging. This page contains material you can use to improve your odds of getting your strategy executed according to plan and turning your organization’s vision into concrete strategic actions.

There are many strategy implementation methods, but no single method suits all organizations and situations. The table below helps you choose the best method for your organization among the three most common methods: Hoshin Kanri, Balanced Scorecards, and OKRs.

Hoshin kanri, OKRs and Balanced Scorecard - learn which strategy implementation method is best for you:

Hoshin kanri

OKR

Balanced scorecard

Description

A goal-setting framework which combines long term objectives with annual objectives and improvement priorities with KPIs.


Alignment process to reduce waste and to ensure common direction.

OKRs are a goal-setting framework which consists of objectives and key results.


Measurable goals create alignment.

Strategy is formulated using 4 perspectives: finance, customers, internal processes, and learning & growth.


Aim to balance financial and non-financial KPIs.

Orientation

Change and performance.

Growth.

Performance and operational management.

Principle

Tiered according to organizational level.

Focus on teams.

Business unit focus.

Strategy horizon

3–5 years and focus on annual planning.

Focus on a quarter of a year with an annual horizon.

More than 1 year. Focus on annual planning.

Pros

  • Strong alignment across organizational levels.
  • Forces maintaining of focus & clarifying ownership.
  • Simple strategy visualization.
  • Fast pace
  • Relatively simple.
  • Aligned to roles in the organization.
  • Taught widely in universities.
  • Efficient in describing metrics of corporate strategy.

Cons

  • Perceived as a demanding method due to its lean roots.
  • Support for very short-term goals.
  • Easy to end up with too many objectives.
  • Alignment in a large organization.
  • Limits corporate strategy to a set of KPIs
  • Easy to lose the bigger picture.
  • Cascading down the objectives lacks precision.

Best suited to

Companies where internal cooperation and alignment are important.

Companies where the need for internal alignment is low.

Companies with simple organizational structure.

Hoshin Kanri’s simplicity has inspired Amplon to visualize strategy and engage managers and employees of all levels in strategy execution. However, Amplon went a step further and addressed the shortcomings of the Hoshin Kanri method. 

This means that companies using Amplon do not need to stick to the lean philosophy (unless they want to); companies can design a bottom-up strategy and easily adapt this software to their culture and processes. Amplon makes sharing common development projects and activities easy, ensuring focus in the organization. Instant monitoring of strategy through software dashboards allows for an immediate reaction to any deviation.

Learning material for hoshin kanri:

Compass pointing to future

What is Hoshin Kanri

This blog gives you an quick overview of hoshin kanri and why you should know this effective strategy deployment method.

Read More

Download free Excel X matrix template

You might want to start your Hoshin Kanri journey with an Excel spreadsheet, which is a typical approach. However, Amplon is a Hoshin Kanri solution that addresses Excel’s shortcomings and is appreciated for its user-friendliness.

You should check the customer video before downloading this free-of-charge Excel X matrix template with progress traffic lights.

Free Excel spreadsheet X matrix

Strategy execution guides:

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Elements of effective strategy

Top results are only achieved with a well-implemented strategy. Many organizations can do reasonably well by continuing with their so-called old model, but this rarely retains a competitive advantage.

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