Introduction to Hoshin Planning: Hoshin Kanri Policy Deployment Process Checklist:

Use this Hoshin Kanri Template to guide you through the Hoshin Kanri planning process. Hashin Kanri is a method used to implement new company goals and policies via a means that takes into account all organizational levels of a company.

The Hoshin Kanri methodology was developed in Japan in the late 1960s. It is a strategic planning process, that focuses on team-wide continuous improvement and learning.

Hoshin = Policy/direction

Kanri = Management

The methodology is now implemented in institutions developing new management systems and concepts such as Lean Management and Six Sigma. It is used to implement new goals and policies within a company.

The method takes your business objectives and breaks these objectives down into smaller objectives, which are broken down further into projects and tasks. These projects and tasks are then distributed from top-to-bottom in your organization.

The Hoshin Kanri method is not complex but each step is important for creating a plan of action that can be effectively executed in the time-frame expected.

Goals are aligned within your team, making sure everyone stays on track.

So why is Hoshin Kanri such a powerful approach for strategic planning?

We understand why the Hoshin Kanri method is so useful when we consider the benefits this methodology brings. Hoshin Kanri will:

  1. Align everyone to a few high-impact objectives, whilst also maintaining accountability between individuals for their commitments,
  2. Identify root causes for corrective action so the organization can learn and improve the planning process, 
  3. Standardize reporting and presentation format whilst also reducing the number of ad-hoc reports being generated.

There are 7 steps to the Hoshin Kanri planning process which are as follows:

  1. The development of vision, mission, and key metrics within the organization,
  2. The identification of breakthrough objectives, which are vital and significant changes needed for the organization to achieve its vision,
  3. The setting of annual improvement plans, with the flexibility to set short-term plans such as quarterly objectives,
  4. The deployment of annual objectives top-to-bottom through a process called catch-ball, which details how the objectives will be shared via two-way communication,
  5. The review of results on a weekly, monthly and annual basis, utilizing tools such as a bowing chart,
  6. Problem-solving, step 6 looks at objectives missed from step 5, to identify and solve the issues,
  7. Reflection and learning, taking the idea of constant growth and improvement.
How to use this checklist

In this checklist, you will be presented with a set of specialized questions given as form fields. You are required to populate each form field with your data.

With this in mind, certain stages will require approval utilizing Process Street's approvals feature.

Other features included in this template are:

  • Stop tasks - To ensure task order.
  • Dynamic due dates - To make sure your initiative is reviewed on time.
  • Role assignment - To delegate tasks within your team ensuring your supervisors are appropriately assigned to the review tasks.

Record checklist details

In this Hoshin Kanri Template, you will be presented with the following form fields which you are required to populate with your specific data. More information for each form field is provided via linkage to our help pages:

Let's start by recording important checklist information, for instance, who you are, who your manager is, and the time and date for running this checklist.

This is a stop task, meaning you cannot progress in this template until the required form fields are populated.

Your details

Your manager's details

Checklist details

Part of the Hoshin Kanri methodology requires monthly and yearly objective review.

Setting a checklist start time and date will utilize our dynamic due date feature, notifying the relevant personnel when monthly/annual reviews are required.

Step 1 - Development of vision, mission, and key metrics:

Establish where your organization is currently at

Assess the current organizational state concerning your vision, planning process, and executive tactics.

Defining organizational vision, mission, and key metrics is typically done at the executive level. Source this information to complete this section.

Ask the following questions:

  1. What do you currently have in place that allows objectives to be created and implemented?
  2. Are there current long-term plans already in place?
  3. Do you have a current vision and/or mission statement?
  4. What is the current organizational structure and daily management system?

Detail responses below:

Set your vision, values and mission

Define your big goals, which come in the form of your vision, mission, and values.

Use the long-text form fields provided to define:

  1. Your vision: Start by defining your organization's vision. This is big picture thinking - for instance, how do you make the world a better place?
  2. Values: If your company knows what it is you value, your other decisions can be made based on those principles.
  3. Mission: A mission is like going to the moon - it is something that you want to accomplish. If you achieve your mission, then your mission is complete and you need to set a new one. It is therefore recommended to set mission statements that have a 3-5 year time-frame.

Approval: Managerial approval

Will be submitted for approval:
  • Set your vision, values and mission
    Will be submitted

Step 2 - Identification of breakthrough objectives:

Set your 3-5 year breakthrough objectives

Next, define your 3-5 year breakthrough objectives. Then break these objectives down based on your organization's structure.

For instance, if a company has a facility in North America, one in Europe and one in South Africa, then the 3-5 year objectives need to be broken down into objectives for each geographical area.

Or, your organization might be broken down into functional groups, such as manufacturing and quality. In this case, break you 3-5 year objectives down for each of those teams and communicate to the team manager/s.

  • 1
    Set your 3-5 year breakthrough objectives
  • 2
    Make sure your objectives are set to operate over a 3-5 year time-frame

Once you have set your breakthrough objectives, break these breakthrough objectives down based on your organization's structure.

  • 1
    Break your 3-5 year objectives down based on your organization's structure

Examples of 3-5 year objectives could be the entering of new markets, introducing a new product, or adopting a different service delivery model.

Analyze your objectives

Analyze your objectives against essential elements.

Your breakthrough objectives detail significant improvements the entire organization must engage with over an established time-frame. Each objective should, therefore, have the following elements:

  • 1
    Objectives provide a description of the desired outcome and the elements that it will be measured by
  • 2
    Objective progress can be measured via specific metrics, so it is known when the objective has been met
  • 3
    Objectives are linked to a timetable detailing the desired completion date

Approval: Managerial approval

Will be submitted for approval:
  • Set your 3-5 year breakthrough objectives
    Will be submitted

Step 3 - Setting of annual improvement plans:

Set your annual objectives

Think about what needs to happen this year to ensure your 3-5 year objectives are met?

For instance, let's say your goal is to introduce a new product in the next 3 years. Your objective this year may be to complete a market research study and define product requirements.

  • 1
    Set annual objectives based on your 3-5 year objectives split as per your organization's structure

Understand the Hoshin Kanri X matrix

X Matrix explained

Setting your annual objectives is usually where the Hoshin Matrix comes in. The X matrix helps you strategize for objective deployment. When implemented properly, the Hoshin Matrix will bridge the gap between strategy and execution by creating alignment and focus.

The Hoshin Kanri X matrix template is a single-page document that includes goals, strategies, strategic projects (initiatives), and owners.

The X matrix is divided into 4 key quadrants:

  1. Long-term goals (south)
  2. Annual objectives (west)
  3. Top-level priorities (north)
  4. Metrics to improve (east)

At the corners of the X matrix template are visualized dependencies between the activities in each section.

On the far right side of the diagram are place names of the people responsible for executing the relevant tasks/objectives.

Take a look at the Hoshin Kanri matrix template below. Download this template to help you get started in the creation of your Hoshin Kanri X matrix.

Download the above X matrix template.

Creating the Hoshin Kanri X matrix

Create a Hoshin Kanri X matrix.

South: Set strategic vision and goals

  • 1
    List your 3-5 year goals at the bottom quadrant of the X matrix template
  • 2
    Consider the capacity of your team before rushing into filing 10 long-term goals

West: Define key annual objectives

  • 1
    Put your annual, breakthrough objectives in the left quadrant of the Hoshin Kanri X matrix
  • 2
    Mark which breakthrough objective aligns with which 3-5 year goal

North: Top-level priorities/short-term actions and metrics

  • 1
    At the top, expand on the different activities that will enable the achievement of your annual results
  • 2
    At the intersectional corners of the matrix, markdown which annual ojective connects with which top-level priority

As a lean manager, the top quadrant is your to-do-list for the upcoming months.

East: Agree on key performance indicators and targets to improve

  • 1
    Agree on the most crucial metrics that you need to improve, and list them in the matrix, without risking morale drops from people whose work is not considered vital
  • 2
    Next to key metrics, list the key stakeholders who will be responsible for leading the completion of the activities in the top quadrant of the matrix
  • 3
    Metrics set should be achievable within a year
  • 4
    Markdown which priority is associated with which target set

Responsibility

  • 1
    At the very far right, add who is responsible for what top-level priority

It is recommended to only list the people responsible for the successful delivery of the team's work

Connecting the dots - mark the dependencies

  • 1
    Specify the dependencies between every listing in your matrix. Start by creating a legend of the different correlation markers that will connect each quadrant to the next
  • 2
    To separate the correlations, use a different figure to visualize them
  • 3
    The matrix needs to remain transparent and every person should understand the information inside in a single glance
  • 4
    To mark the dependencies between the quadrants in the Hoshin Karni X matrix, you need to place the appropriate figure in the squares on the intersections between each quadrant in the corners of the diagram

It is advised to keep it simple and add no more than 3 different ways of correlations.

Refer to the Hoshin Kanri X matrix example given below.

Upload your Hoshin Kanri X matrix

Once you have created your Hoshin Kanri X matrix, upload the completed matrix to this checklist using the file upload form field provided.

Alternatively, if your Hoshin Kanri X matrix is stored on the cloud, you can add the URL for this cloud storage in the website URL form field provided.

Approval: Managerial approval

Will be submitted for approval:
  • Set your annual objectives
    Will be submitted
  • Upload your Hoshin Kanri X matrix
    Will be submitted

Step 4 - Deployment of annual objectives from top-to-bottom:

Cascade goals throughout your organization

Apply catchball as the communication process to engage multiple parties in an ongoing exchange of information about what it will take to achieve a particular objective.

Catchball is a top-down and bottom-up approach that allows organization-wide collaboration regarding the best approach to achieve an objective.

Once you know what you need to accomplish within the year, assign the relevant department, team, and individual objectives.

  • 1
    Break down your annual objectives into smaller objectives
  • 2
    Continue to break down your smaller objectives until you can define set departmental projects

A project is something you can complete in a week to a month.

Assign departmental objectives

You can begin to assign department, team, and individual objectives based on your proposed projects.

  • 1
    Assign projects to the relevant department/team

From these projects define relevant goals. Make sure the goals set are:

  • 1
    Measurable
  • 2
    Specific
  • 3
    Have defined Key Performance Indicators that can be monitored by leadership

Assign your projects

Once your specific objectives are broken down into projects, you can define your projects into action items, and assign these action items as tasks to the relevant individuals.

  • 1
    Define action items for your projects
  • 2
    Assign action items to the relevant team members
  • 3
    Based on these action items, set individual goals

When setting individual goals, make sure these goals are:

  • 1
    Measurable
  • 2
    Specific
  • 3
    Have defined Key Performance Indicators that can be monitored by leadership

Execute annual objectives

As individuals complete their assigned goals, departmental/team projects are accomplished. Smaller objectives are reached leading to the execution of annual objectives.

Step 5 - Results review:

Develop systems to conduct monthly reviews

Conduct monthly reviews to check progress.

Often companies forget to review progress. The Hoshin Kanri process helps to avoid this problem. Develop a system to check in on progress every month.

Start by developing individual reviews. Then develop the project and team-wide/departmental review systems.

  • 1
    Develop a system to check in on each individual's progress towards their goals every month
  • 2
    Develop a system for a monthly check-in on the project's progress
  • 3
    Develop a system for team-wide/department review

Develop systems to conduct annual reviews

Develop systems to conduct a 12-month progress review.

After a conclusive 12-months, it is time to do a comprehensive assessment of the organization's progress. It may be necessary to adjust goals and time estimates. This may also be a good time to ensure that resources are properly allocated for what needs to be accomplished in the next year.

  • 1
    Develop systems to conduct a 12-month progress review

Step 6 - Problem-solving for objectives missed:

Implement Plan-Do-Act-Check to solve problems for missed objectives

Prepare to problem-solve to meet missed objectives.

As you conduct your monthly and annual objective reviews, you may notice that you missed some of your objectives. 

Implement a Plan-Do-Act-Check process to identify and remove issues that are blocking the achievement of your objectives.

  • 1
    Implement the Plan-Do-Act-Check process

Problem-solving for monthly objectives

Detail your missed monthly objectives using the long-text form field below:

Implement the Plan-Do-Act-Check model to identify the root cause as to why these monthly objectives have not been met.

Analyze root causes to develop counteractions that restore progress. Use the long-text form field provided to summarize these counter actions.

  • 1
    Use the Plan-Do-Act-Check model to identify issues

Problem-solving for annual objectives

Detail your missed annual objectives using the long-text form field below:

Implement the Plan-Do-Act-Check model to identify the root cause as to why these annual objectives have not been met.

Analyze root causes to develop counteractions to restore progress. Use the long-text form field provided to summarize these counteractions.

  • 1
    Use the Plan-Do-Act-Check model to identify issues

Approval: Managerial approval

Will be submitted for approval:
  • Problem-solving for monthly objectives
    Will be submitted
  • Problem-solving for annual objectives
    Will be submitted

Step 7 - Reflect and learn:

Reflect on the challenges and successes

It is time to reflect on what did and didn't work throughout the process. The aim is to help your organization move forward in the development of future breakthrough objectives.

Use the long-text form fields provided to detail your successes, challenges, and what you would do differently in the next iteration implementing the Hoshin Kanri method.

Approval: Managerial approval

Will be submitted for approval:
  • Reflect on the challenges and successes
    Will be submitted

Sources:

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