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The failure to link the achievement of top management goals with daily management at an
operational level is suggested to be a major cause of loss of momentum in change management. Hoshin Kanri is a
systems approach to the management of change in critical business processes using a step-by-step planning,
implementation, and review process. Hoshin Kanri improves the performance of business systems. A business system is
a set of coordinated processes that accomplish the core objectives of the business. For every business system there
are measures of performance and desired levels of performance. Hoshin Kanri provides a planning structure that will
bring selected critical business processes up to the desired level of performance.
Hoshin Kanri is applied at two levels:
The Strategic Planning Level
The Daily Management Level
The Strategic Planning Level
A small number of key long-range corporate objectives are planned systematically. They are called Breakthrough
Objectives, and typically last 2 to 5 years with little change. They are directed at achieving significant
performance improvements, or at making significant changes in the way an organization, department or key business
process operates.
The Daily Management (or Day-to-Day) Level
In the daily management level, most of the time in an organization must be devoted to keeping the business running,
carrying out the value-added activities of the key business processes, which fulfill the purpose of the
organization. These day-to-day Business Fundamentals must be monitored on a daily basis in all parts of the
organization. This is how the process owners are able to take real-time corrective action for continuous process
improvement (Kaizen).
The Generic Model
The Hoshin Kanri model has four parts:
Top management formulates a vital few strategic priorities
These strategic priorities are translated into action plans for the coming year by other management and grass roots
employees
Routine daily management when plans are managed at an operational level
An examination of policy and strategy in an organisation-wide review of performance.
Good practice strategic management provides the following four things and the Hoshin Kanri
approach achieves all four:
Focus
Alignment
Integration
Review
Steps in the Hoshin Kanri Process
Annual policy and medium to long-term
policy
Basic company philosophy and quality policy
Converting methodological policy into objective policy
The composition of policy
Two deployment styles of target – top-down and bottom-up
Target deployment and “catch-ball”. A discussion process before policy is finally decided, wherein the policy ball
(draft policy) is thrown back and forth between top and middle managers before a final decision is made.
Top management internal quality control audit
Initial Considerations
The initial considerations in the Hoshin Kanri approach to business system change are as follows:
Measuring the business system as a whole
Setting core objectives of the business
Understanding the environmental situation in which the business operates
Defining processes that make up the system, and their activities, goals, and metrics
Providing resources to perform activities to achieve business objectives.
Contact Us
For more information on our Hoshin Kanri training and consultancy services, please contact us at:
Email:
Tel: (65) 68484109
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