Hoshin Kanri - Strategy builder

Currently, businesses are faced with an increasingly volatile, complex and risky business environment. Rapid changes often create unexpected opportunities and threats. Therefore, the formulation of a strategy and how to manage it in an enterprise plays a very important role and is shown in many different aspects.

The strategy of an enterprise is likened to the path, the steps and the key to the operation of the enterprise to achieve certain goals, plans and success. Therefore, there is a need for a tool to help different parts of the organization work together and keep them on track. That tool is called “Hoshin Kanri".

What is Hoshin Kanri?

Hoshin Kanri (aka Deployment Policy) is a method for ensuring that a company's strategic goals drive progress and action at every level within that company. This eliminates the waste of time that comes from inconsistent directives and poor communication between departments.

Hoshin Kanri strives for every employee to work towards the same goal at the same time. This is achieved by linking the company's goals (Strategy) to the plans of middle managers (Tactics) and the work done by all employees (Actions).

Hoshin Kanri creates a systematic flow of information that runs through the entire company – just like the human nervous system runs through the entire body. Goals and KPIs are implemented from top to bottom, while results are fed back from bottom to top.

Steps to perform Hoshin Kanri:

1. Develop a Strategic Plan

2. Develop tactics

3. Action

4. Review and adjust

Hoshin Kanri is an essential Lean management method to ensure that a company's strategy is executed on a hierarchy. The constant improvement of plans will forever transform all levels of management in a company, Hoshin Kanri's core principles will benefit any company if followed them.

- When Hoshin Kanri is implemented effectively, it forces the leadership team to come up with a vision and a list of breakthrough goals, create a series of complementary goals, ensure alignment and deliver necessary leverage for successful implementation.

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