Hoshin Kanri means direction management, but is more usually expressed in
English as policy deployment. As you might guess it is a
Japanese methodology based on a concept popularized in Japan in the late
1950s by Professor Yoji Akao and turned into a book in 1991, '
Policy Deployment for Successful TQM'.
The discipline of hoshin kanri is intended to help an organization:
|Focus on a shared goal.|
|Communicate that goal to all leaders.|
|Involve all leaders in planning to achieve the goal.|
|Hold participants accountable for achieving their part of the plan.|
It assumes daily controls and performance measures are in place: "With
hoshin kanri... the daily crush of events and quarterly bottom-line
pressures do not take precedence over strategic plans; rather, these
short-term activities are determined and managed by the plans themselves."
There are 7 steps in Hoshin Kanri plannning:
- Identify the key business issues facing the organization.
- Establish measurable business objectives that address these issues.
- Define the overall vision and goals.
- Develop supporting strategies for pursuing the goals.
- Determine the tactics and objectives that facilitate each strategy.
- Implement performance measures for every business process.
- Measure business fundamentals.
Top support the process there is a standardized set of reports, known as
tables, which are used by managers and work teams to assess
performance. Each table includes:
|A header, showing the author and scope of the plan|
|The situation, to give meaning to the planned items|
|The objective (what is to be achieved)|
|Milestones that will show when the objective is achieved|
|Strategies for how the objectives are achieved|
|Measures to check that the strategies are being achieved|
Hoshin tables types:
|Hoshin review table: During reviews, plans are presented in the form
of standardized hoshin review tables, each of which shows a single
objective and its supporting strategies.|
|Strategy implementation table: Implementation plans are used to
identify the tactics or action plans needed to accomplish each strategy.|
|Business fundamentals table (BFT): Business fundamentals, or the
basic elements that define the success of a key business process, are
monitored through its corresponding metrics. Examples of business
fundamentals are safety, people, quality, responsiveness, or cost.|
|Annual planning table (APT): Record the organization’s objectives
and strategies in the annual planning table. The APT is then passed down
to the next organizational structure.|
The implementation plan usually requires coordination both within and
between departments and process owners.