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Hoshin Kanri

Hoshin Kanri. Strategic Planning Process. 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. Hoshin Kanri Defined.

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Hoshin Kanri

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  1. HoshinKanri Strategic Planning Process

  2. Agenda • HoshinKanri Defined • A Brief History • Benefits and Key Elements of Hoshin Planning • Hoshin Planning Process • Hoshin X “Matrix” • X “Matrix” Example • Summary and Question

  3. HoshinKanri Defined • HoshinKanriis 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.

  4. A Brief History • Hoshinprocess 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 hoshinkanrican be generally interpreted as direction (setting). • The words nichijokanrican be interpreted as daily (fundamental) management. • The blending of these two methods is key to the success of the hoshin process.

  5. Why use HoshinKanri? • 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.

  6. Four Key elements of HoshinKanri Focus on the vital few (Pareto Principle) Catch ball – validates understanding Shows relationship of actions to big picture Review Cycles – Monthly and Annual Review

  7. Hoshin Planning Process CATCHBALL Lean & Other Tools P D C A Self Diagnosis

  8. Develop Strategic Objectives SWOT Analysis Strategic Planning is determining those 3-5 years breakthrough objectives that will move the organization towards world class. Strategy Maps Balanced Score Card

  9. 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 3-5 Year Breakthrough Objectives

  10. Hoshin X Matrix The Hoshin Planning X Matrix X Matrix Labels 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? Step 4: How Much and When? Measures Step 5: Who? Resource Deployment 3 4 2 1 Step 1: What? Breakthrough Thinking Strategic Plan Owner: Date:

  11. X “Matrix” Example

  12. Summary • The HoshinKanri 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 ?

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