Monday, October 02, 2023

2023-10-02 Monday - Research Notes: Hoshin Kanri ("Compass Management") and X-Matrix in strategic planning

 

[image credit: Clker-Free-Vector-Images on Pixabay]


  
https://en.wikipedia.org/wiki/Hoshin_Kanri

  • ...a 7-step process used in strategic planning in which strategic goals are communicated throughout the company and then put into action.
  • The Hoshin Kanri strategic planning system originated from post-war Japan, but has since spread to the U.S. and around the world. Translated from Japanese, Hoshin Kanri aptly means "compass management". The individual words "hoshin" and "kanri" mean direction and administration, respectively.
  • Hoshin Kanri requires a strategic vision in order to succeed. 
  • From there, strategic objectives need to be clearly defined, with goals being written for long periods of a one to five-year-long timeframe
  • Once the long term timeframe goals are completed, the team can focus on yearly objectives
  • Management needs to avoid picking too many vital goals in order to stay focused on what is strategically important
  • Hoshin Kanri is a top-down approach, with the goals being mandated by management and the implementation being performed by employees.
  • Companies that use Hoshin Kanri often follow a Think, Plan, Implement, and Review process, which is comparable to W. Edwards Deming's Plan Do Check Act cycle

    
If you are pressed for time, read this:

The Ultimate Guide to Strategy Deployment using Hoshin Kanri (X-Matrix)
https://www.linkedin.com/pulse/ultimate-guide-strategy-deployment-using-hoshin-kanri-vetriko/
(See triangle in diagram, Principles of Hoshin Kanri - nice graphics)

 


The Hoshin Kanri technique is often aided with a Hoshin Kanri Matrix, on which companies list and align their various-length objectives and goals.

    
    
Demystifying the Hoshin Kanri X Matrix
https://kanbanize.com/lean-management/hoshin-kanri/what-is-hoshin-kanri-x-matrix
    
    
The Benefits of Using an X-Matrix for Strategy Deployment
https://blog.kainexus.com/improvement-disciplines/strategy-deployment/x-matrix/the-benefits-of-using-an-x-matrix-for-strategy-deployment

    
How to Use The Hoshin Kanri X-Matrix to Deploy Your Strategic Plan
https://blog.kainexus.com/improvement-disciplines/hoshin-kanri/how-to-use-the-hoshin-kanri-x-matrix-to-deploy-your-strategic-plan
    
    
The Hoshin Kanri x-matrix: the what, how, why, benefits, and more
https://blog.i-nexus.com/hoshin-kanri-x-matrix-explained
    
      
Hoshin Planning and The X-Matrix
https://www.youtube.com/watch?v=3M5zRFbavUg
    
    
What is Hoshin Kanri?
https://www.linkedin.com/pulse/what-hoshin-kanri-carolyn-gibson/

Hoshin Kanri means “policy management” in Japanese. The characters use elements of the words ‘compass’ and ‘direction’, with the obvious implication that you need to know where you are going, and a map to get there.
    
7-step process:

  1. Establish vision
  2. Develop Breakthrough Objectives
  3. Develop Annual Objectives
  4. Deploy Annual Objectives
  5. Implement Annual Objectives
  6. Monthly & Quarterly Review
  7.  Annual Review

Peter Drucker wrote that “[u]nless commitment is made, there are only promises and hopes; but no plans.” Hoshin Kanri uses a unique process called catchball to engage all accountable owners early on.
           
Unlike in other strategy cascades, all accountable owners at every level must be part of the process at the earliest stage so that they:

  • Understand their brief
  • Have time to question it
  • Consult with their teams
  • Calculate the resource implications
  • Modify the objective as necessary
  • And only then commit to delivering it.


 X-Matrix
A visual planning tool that allows you to decompose your Vision into the Breakthrough Objectives, Annual Objectives, Improvement Priorities, Targets and Accountable Owners. This tool takes time to learn but is unparalleled in its ability to quickly see if the plan holds together down through the planning levels.
       
Hoshin Kanri is a process that goes to the heart of your organization’s people, processes and culture. Naturally, you will encounter obstacles in implementation, and failures. Common barriers include:

  1. Resistance to accountability
  2. Process and commitment conflicts
  3. Fear of failure
  4. Inconsistent, incorrect data

       
The Hoshin Kanri X-Matrix: The structure you need for your strategy
https://www.linkedin.com/pulse/hoshin-kanri-x-matrix-structure-you-need-your-strategy-carolyn-gibson/


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