Hoshin Planning

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Hoshin Planning - short version

(1) Practice of cascading top-level organizational strategies into increasingly lower levels, with performance metrics attached, and plans for improvement.

(2) Process a policy deployment approach to strategic planning originated by japanese firms. Breakthrough planning. A strategic planning process in which a company develops up to four vision statements that indicate where the company should be in the next five years. Company goals and work plans are developed based on the vision statements. Periodic audits are then conducted to monitor progress.

Hoshin Planning - long version

Hoshin Planning or known as Hoshin kanri or Policy Deployment is a method devised to capture and cement strategic goals as well as flashes of insight about the future and develop the means to bring these into reality. it is a Strategic planning/Strategic management methodology, based on a concept popularized in Japan by Professor Kaoru Ishikawa in the late 1950s when he said that 'each person is the expert in his or her own job and Japanese TQC (Total Quality Control) is designed to use the collective thinking power of all employees to make their organization the best in its field. This is the fundamental principle of Hoshin Planning and in Professor Ishikawa's words in his book 'What is Total Quality Control' "Top managers and middle managers must be bold enough to delegate as much authority as possible. That is the way to establish respect for humanity as your management philosophy. It is a management system in which all employees participate, from the top down and from the bottom up, and humanity is fully respected." Adaptations of the concept have since been developed by many including Dr. Yoji Akao, that use a Shewhart cycle (Plan-Do-Check-Act) to create goals, choose control points (measurable milestones), and link daily control activities to company strategy. The discipline of hoshin kanri is intended to help an organization:

* Focus on a shared goal

* Communicate that goal to all leaders

* Involve all leaders in planning to achieve the goal

* Hold participants accountable for achieving their part of the plan

It assumes daily controls and performance measures are in place. "With hoshin kanri... the daily crush of events and quarterly bottom-line pressures do not take precedence over strategic plans, rather, these short-term activities are determined and managed by the plans themselves."

In Japanese, hoshin means shining metal, compass, or pointing the direction, kanri means management or control. The name suggests how hoshin planning aligns an organization toward accomplishing a single goal.


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