Hoshin Kanri
方針管理·hōshin kanri·"policy management, direction management"
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Hoshin Kanri is a strategic planning methodology that aligns organizational goals with daily actions through collaborative goal deployment.
Definition
Hoshin Kanri, often translated as "policy deployment" or "strategy deployment," is a systematic approach to strategic planning that aligns long-term organizational vision with annual objectives and daily actions throughout all levels of the organization. The methodology uses a collaborative process called catchball, where goals and plans are passed back and forth between organizational levels to ensure alignment, feasibility, and commitment. Hoshin kanri concentrates resources on breakthrough objectives rather than spreading effort across too many priorities.
Examples
A manufacturing company set a three-year hoshin to reduce lead time by 50%. Through catchball, each plant identified how they would contribute, negotiating realistic targets and required resources. The corporate quality team supported with training, while plants owned implementation. Annual reviews tracked progress and adjusted plans based on learning.
Key Points
- Hoshin kanri focuses on breakthrough objectives, not everything—typically 3-5 vital priorities
- Catchball ensures two-way dialogue, not just top-down target assignment
- Visual tools like X-matrices and bowling charts make alignment and progress visible
- Annual reviews assess results and adjust the next year's hoshin based on learning
Common Misconceptions
Hoshin kanri is just strategic planning. Unlike traditional strategic planning that creates documents often ignored during execution, hoshin kanri creates living alignment between strategy and daily work with regular review and adjustment.
Hoshin kanri replaces daily management. Hoshin addresses breakthrough improvement while daily management maintains current performance. Both systems are necessary—hoshin kanri for the vital few improvements, daily management for business fundamentals.