A strategic planning system developed in Japan and North America over the past thirty years. Also known as strategic policy deployment. Metaphorical meanings include “ship in a storm going in the right direction” and “shining needle or compass”.
Hoshin kanri 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."Also called Policy Deployment or Hoshin Planning, it is a Strategic planning/Strategic management methodology, developed by Dr. Yoji Akao, that uses 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.