Many companies struggle with
translating strategic plans into actionable items on a daily process, luckily, among the most powerful tools in the Lean arsenal for
effective strategic management we can find Hoshin Kanri.
Similar Jidoka
or Just in Time, Hoshin Kanri has its roots in the Toyota Production System and
as a tool, it can be very helpful, when implemented properly, in bridging the
gap between strategy and execution.
Hoshin Kanri has a Matrix shape with
four quadrants each devoted to a specific task.
1- Set the strategic vision & goals (3-5 year breakthrough
objectives):
The long-term goals is the
starting point In Hoshin Kanri, normally in the frame between 3 and 5 years.
List them at the bottom quadrant of the matrix
template and have in mind that every initiative will have many smaller tasks
that will need to process before achieving the goal.
2- Define key mid-term objectives (annual objectives)
After your long-term goals are
all set, prepare the most important objectives that you aim to achieve in a
shorter time frame and put them in the left quadrant of the Hoshin matrix.
3- Set short-term actions and metrics (improvement priorities)
You will need to fill the top
quadrant with the most important activities that need to be completed to
achieve the short-term goals, this is basically the to-do list for the upcoming
months.
4- Agree on key performance indicators (targets to improve)
Agree on the most crucial metrics
that need to be improved and list them on the diagram.
Following this line of thought, right next to
the key metrics, you need to list the key stakeholders responsible for leading
the completion of the activities in the matrix's top quadrant.
Finally, you should complete the picture by
specifying the dependencies between every listing in your matrix.
