Hoshin Kanri systems have been widely used business tools in Japan for more than 25 years. But they are not a Japanese invention. Hoshin Kanri traces its genealogy to Douglas MacArthur, Edward Deming, Peter Drucker and what became the quality movement.
In its simplest form, Hoshin Kanri is nothing more than a system of forms and rules that encourage employees to analyze situations, create plans for improvement, conduct performance checks, and take appropriate action. In practical application, however, is much more than forms and rules
Hoshin Kanri is a philosophy of management.
What truly distinguishes a Hoshin Kanri-based planning and management system from conventional strategic planning is how the principles inherent in the Hoshin Kanri approach integrate planning throughout all aspects of the organization.
In essence, Hoshin Kanri-based planning provides a better way for people to work together.
The process builds on a strong foundation of policy-level rigorous prioritization that enables organizations to create intensely focused strategies to achieve breakthroughs to new heights of success.
Rigorous prioritization persistently focuses the leadership of the organization as a whole on its job of making good strategic decisions. Senior management’s principal concern becomes setting the organization’s one Breakthrough Goal, or a very limited number of overarching goals (depending on which goal-setting model is employed), and then determining the best way to measure success through a time-bound and quantified target.
Unlike conventional strategic planning, which is a once-every-so-often effort, Hoshin Kanri engages the entire organization in an iterative, ongoing process that acts as a highly visible management compass. The power of Hoshin Kanri comes from its intense, goal-driven focus and the technique’s ability to align the organization.
Hoshin Kanri-based planning is neither a top-down, nor a bottom up system. Rather it is both, with a cascading technique that encourages multi-level dialogue throughout the planning process.