What is Hoshin Kanri?
Hoshin Kanri is a strategic planning approach that helps organizations connect their long-term goals with day-to-day actions and measurable outcomes. It makes strategy more than just a document—it becomes something that guides real work across the company. The name comes from Japanese, where hoshin means “direction” and kanri means “management.”
You might also hear it called Policy Deployment, Strategy Deployment, or simply Hoshin Planning. It’s commonly used in companies that already apply lean principles, especially in operations or manufacturing, but its value goes far beyond that.
While people often think of Hoshin Kanri as a tool for creating strategy, its real strength lies in execution. It connects long-term goals with annual targets, links projects to KPIs, and keeps everything aligned. It also brings transparency and continuous learning into the process. And during the execution phase, attention shifts to tracking progress and adjusting when things go off course—something that’s often summarized in the idea of “learning to plan.”
The Main Phases of Hoshin Kanri
1. Clarify the Strategic Plan
Start by defining your vision, mission, and strategic priorities. This phase often reveals weak spots that need to be sharpened before moving forward.
2. Define Strategic Goals
Set clear long-term goals and break them down into short-term, typically annual, objectives. The X Matrix (or Hoshin Planning Matrix) is a handy tool for mapping these out on one page.
3. Facilitate the Catchball Process
Catchball is a structured back-and-forth dialogue across levels of the organization. It builds alignment and shared understanding by letting everyone weigh in and contribute.
4. Define Key Performance Indicators (KPIs)
Track progress using KPIs that are easy to understand and closely tied to your strategic goals.
5. Develop Action Plans
Once goals and KPIs are set, create concrete action plans—development projects that include tasks, timelines, and needed resources.
6. Monitor Progress Continuously
Set up a management system to regularly review progress, spot deviations early, and make adjustments as needed.
4 Ways Hoshin Kanri Boosts Competitiveness
1. Links Objectives, Actions, and KPIs
Using tools like the X Matrix, Hoshin Kanri creates a clear link between the strategy and the everyday work people do. That visibility helps drive results—and commitment.
2. Focuses Operations
Rather than adding layers of control, Hoshin Kanri gives leaders a framework to guide the organization’s focus and ensure everyone is moving in the same direction.
3. Enhances Collaboration and Transparency
Through catchball, teams work through potential conflicts and build ownership. People see how their work fits into the bigger picture—and how it connects to others.
4. Fosters Effective Leadership
By making progress visible and actionable, Hoshin Kanri supports leadership at all levels—without enforcing a one-size-fits-all leadership style.
Who Benefits from Hoshin Kanri?
Hoshin Kanri has been embraced by companies like Toyota, Tesla, Caterpillar, HP, and Bank of America. It’s also used in the public sector—in hospitals, municipalities, and other organizations where strategy needs to translate into action.
It’s often associated with large organizations, but smaller companies benefit too. Hoshin Kanri helps visualize strategy, align teams, and focus on what matters most—regardless of the size or structure of the organization. It also boosts employee commitment by making strategy more transparent and collaborative.
As more companies recognize its practical value, the use of Hoshin Kanri continues to grow across industries.
Amplon and Hoshin Kanri
At Amplon, we’ve built our software around the core principles of Hoshin Kanri. Our X Matrix tool helps companies bring their strategies to life—connecting goals, projects, and KPIs in a way that’s easy to follow and act on.
Amplon makes it possible to design a bottom-up strategy that fits your organization’s unique culture and workflows. It also makes collaboration simple—teams can share development projects, track activities, and stay focused on shared objectives. And because the strategy is always visible through intuitive dashboards, teams can react quickly to changes and stay aligned every step of the way.
