Process improvement and all of the tools and methods that go along with it have been around for quite some time. Be it the complexity of the full adoption of SPC (statistical process control), or be it the simplicity of a 5 Whys analysis. Somehow, these methods have been leveraged by many foundation approaches, mostly created in Japan post WWII. Hoshin Kanri was designed and popularized mainly by Dr. Yoji Akao in the late 50's. Although there is no agreement on the best term to describe it, the terms management by policy or policy deployment are frequently used. The words themselves mean shining metal, pointing the direction, or compass (Hoshin) and management or control (Kanri). Many writers have also approached Hoshin Kanri as being a system approach to managing change in critical business process. But what really is the most important aspect of adopting a Hoshin Kanri mentality? The initial observations are briefly described below.
Measuring the system as a whole: Similar to the BSC (Balanced Scorecard) approach, Hoshin planning considers the strategic intention of the organization rather than the goals of departmental silos. Another strong aspect to be considered is the adaptability of plans as the organization carries them out. Long term planning (mandate, strategies) are nowadays nearly impossible to be set in stone for a full calendar cycle, or whatever long term metric the organization decides to use as a reference.
Setting core business objectives: A key feature of a well implemented Hoshin approach is to involve those who are about to carry out the plan in the planning itself. The word "Catchball" is frequently used throughout the quality management literature on Hoshin planning. Catchball in this context relates to the fact that employees of organizations should bounce ideas around their peers and other hierarchical levels in a way that they feel a part of the broader dialogue within the organization.
Understanding the environmental situation: This is an important reminder of how well developed organizations consider all facets of the business including, but not limited to, external factors (economical, social, cultural, and legislative), internal factors (employees, board members, and stockholders), and benchmarks.
Providing implementation resources: While Hoshin is utilized to create synergies amongst the various strategies set in place for the business as a system (breakthrough, critical strategies), the approach also recognizes the need for the daily management of resources put in place to achieve the organization's objectives. Daily control is critical and cannot be ignored. It provides the organization with those Kaizen-type of initiatives that ultimately support the larger organizational objectives to be accomplished.
Defining system processes: This is a clear and congruent description of objectives, goals, activities, performance measures, and benchmarks. In addition, a well defined set of expectations and roles for senior and middle management as well as for implementation teams makes the Hoshin Kanri approach a successful and sustainable one.
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