Hoshin Kanri

Abstract

The point of convergence for this article is to present and explain the "Hoshin Kanri" (or Policy Deployment) method, developed by Dr. Yoji Akao in 1991. Hoshin Kanri is defined as a "form of corporate-wide management that combines strategic management and operational management by linking the achievement of top management goals with daily management at an operation level" [1]. This method is an essential element of TQM and is based on the PDCA cycle. Hence, at the strategic level, the method can be applied by scanning the context of the company in order to further understand how to position in the market. To do that, the external and the internal environments need to be studied utilizing the Porter's 5 forces analysis and the Porter's generic strategies (for the external environment). In the other hand, for the internal environment, which is about understanding the available resources of the company in order to develop a competitive strategy, a Business Model Canvas, SWOT analysis or a Balanced Scorecard is more applicable. Then, during the planning step, the long and mid-short term goals are decided and through the X-Matrix, which is the way of implementing the Hoshin Kanri, the operational and organizational goals are aligned. After the implementation, the progress has to be continuously monitored, keeping track of all the activities and improving them. Furthermore, the article will give attention to the Catchball process, which is a necessary communication process aiming to obtain successful implementation of the Hoshin Kanri throughout all of the company levels.

Table of contents

1)What is Hoshin Kanri?
1.1)Strategy Deployment
1.2)History of Hoshin Kanri - Origin of the word
1.3)7 steps of Hoshin Strategy

2) The PDCA cycle (plan, do, check, act) 
2.1)The X-Matrix 

3)The Catchball process

4)Why Use Hoshin?
5)What can go wrong?

Reference

[1] HOSHIN KANRI: POLICY MANAGEMENT IN JAPANESE-OWNED UK SUBSIDIARIES, Barry J. Witcher and Rosemary Butterworth, Journal of Management Studies 38:5 July 2001, University of East Anglia