Hoshin Kanri and policy deployment: the theory
Hoshin Kanri (also known as Hoshin Planning or Policy Deployment) is an important tool for any company. It is not just a tool to communicate the company’s mission: it provides the means to align work, coordinate people, test ideas, adapt the company to changes and check results. It is PDCA at the corporate level. Yes, Hoshin is a great tool and these are some of the wonderful things you could get from it:
- It helps focus your company’s efforts in the long-term (even sacrificing the short-term if needed), making sure that everybody knows the top corporate goals and how their work can impact them.
- It forces top management to select, prioritize and make visible the vital few initiatives the company needs. This will avoid department wars, each one fighting to put in place their own interpretation of what the goals are.
- It’s based in nested PDCA cycles, helping your company learn and react quickly to changes. Everybody is testing and providing feedback continuously. Therefore one layer of the organization can learn from the work of other layers, understand the impact of each change and adapt their work consequently.
- It is a tool that increases dramatically the sustainability of improvement work. Lean projects and actions will solve real problems and the people who can support the work and remove roadblocks will follow up the results using meaningful metrics.
- It strengthens communication: senior managers find out too often that most of their people don’t know what the key corporate goals are (following George Bernard Shaw’s famous quote: “The single biggest problem in communication is the illusion that it has taken place). Hoshin creates communication channels in both directions: top-down and bottom-up.
There are many books, articles and conferences out there about Hoshin. This is a starting kit that might be helpful for you:
- Article by Greg Lane at Lean Post: http://www.lean.org/LeanPost/Posting.cfm?LeanPostId=42
- Article by Wiebe Nijdam at Planet Lean: http://www.planet-lean.com/a-guide-to-practical-hoshin
- Article by Mark Jaben at Kai Nexus about the neuroscience behind Hoshin: http://blog.kainexus.com/improvement-disciplines/hoshin-kanri/unclutter-the-prefrontal-cortex
- Interesting page by MCTS: http://www.mcts.com/Hoshin-Kanri.htm
- Book: Hoshin Kanri for the Lean Enterprise by Thomas L Jackson
- Video by Jeff Liker:
Picture by: http://www.mcts.com