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Hoshin Kanri

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Hoshin kanri is a Japanese term meaning policy deployment or strategic planning.

Hoshin kanri has a few characteristics to it:

  • Stretch goals: Hoshin kanri requires leaders to develop stretch goals that may take a number of years to achieve. These goals should come from business opportunities or risks on the horizon.
  • Catchball: The planning sessions should not be done in a vacuum. Senior leaders should talk to each other and to their subordinates to create a solid plan.
  • Vision: Hoshin kanri should look out several years, and from that develop a one year plan. The long-term view helps keep the company from shifting direction each year.
  • Cascading goals: Top level strategy should turn into KPIs at the frontline. The process of hoshin kanri links all the goals and objectives together.
  • Cross-functionality: Strategies turn into specific responsibilities for various functional leaders. The unified approach to strategy development keeps groups aligned.
  • PDCA: The process should include means to monitor progress and should assign responsibilities to keep the organization on course.

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