Hoshin Kanri Strategic Planning Process 1 Agenda Hoshin

Hoshin Kanri Strategic Planning Process 1 Agenda Hoshin

Hoshin Kanri Strategic Planning Process 1 Agenda Hoshin Kanri Defined A Brief History Benefits and Key Elements of Hoshin Planning Hoshin Planning Process

Hoshin X Matrix X Matrix Example Summary and Question 2 Hoshin Kanri Defined Hoshin Kanri is a step-by-step planning, implementation and review process. It is a systems approach to the management of change in critical business processes. A proven technique that helps organizations focus efforts and achieve results. 3

A Brief History Hoshin process developed in Japan during the 1960s from Quality Management practices in Bridgestone Tire company, Toyota, Nippon, Denso, Komatsu and Matsushita. It was strongly influenced by the Plan-Do-Check-Act (PDCA) of Deming and Management by Objectives of Peter Drucker. The Japanese words hoshin kanri can be interpreted as direction (setting). generally The words nichijo kanri can be interpreted as daily (fundamental) management. The blending of these two methods is key to the success of the hoshin process. 4

Why use Hoshin Kanri? To ensure that insight and vision are not forgotten and ignored as soon as planning activities are over. To guarantee planning documents, once finalized, are kept alive and acted on daily. To prevent the daily quota of fire-fighting, unplanned strategic meetings, and quarterly bottom-line pressures taking precedence over the really strategic plans To have short-term activities determined and managed by the plans themselves. To ensure a continual process of checking to make sure what is done each day reflects the intentions, the targets and the vision of the company has agreed to pursue. To have both a planning and deployment process to guide and focus the organization.

5 Four Key elements of Hoshin Kanri Focus Focus on the vital few (Pareto Principle) Alignment Catch ball validates understanding Structure Shows relationship of

actions to big picture Rigor Review Cycles Monthly and Annual Review 6 Hoshin Planning Process Establish Organizational Vision Develop Strategic Objectives CA TC HB AL

L Develop Annual Objectives Deploy Annual Objectives Implement Annual Objectives Monthly Review Self Diagnosis Annual Review Lean & Other Tools P D C

A Develop Strategic Objectives Strategic Planning is determining those 3-5 years breakthrough objectives that will move the organization towards world class. SWOT Analysis Balanced Score Card Strategy Maps 8 Develop Annual Objectives Strategic Themes from Strategy maps, Balanced Score cards become the 3-5

year Breakthrough Objectives in the Hoshin Matrix. Use of the Hoshin Matrix for tracking & Management of these objectives is an effective approach. Strategy Maps 9 3-5 Year Breakthrough Objectives Hoshin X Matrix The Hoshin Planning X Matrix X Matrix Labels 1) 3-5 Year Breakthrough Objectives 2). Annual Breakthrough Objectives

3) Supporting Action/Project Priorities 4) Action Measures of Success Step 3: How? Which Key Supporting Action/Project? Step 2: How Far? This year? 3 4 2

Step 4: How Much and When? Measures Step 5: Who? Resource Deployment 1 Step 1: What? Breakthrough Thinking Strategic Plan Owner: Date: 10

X Matrix Example 11 Summary The Hoshin Kanri process has been validated over the last 40 years. This process is applicable to small and large organizations alike. It is an effective alignment tool to translate strategies into actions. QUESTIONS ? 12

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