In this last post on the evolution of strategic management, I will talk about Hoshin Kanri. For me, it is the big thing—albeit I may be influenced by being an Ex-Toyota employee, and, while Hoshin Kanri was not invented by Toyota, it was certainly made popular by it and its lean manufacturing. Hence, it is also the last post in this series, even though timewise it came before the balanced scorecard, which also had Hoshin Kanri as an inspiration.
Hoshin Kanri
Kaizen: Hoshin Kanri, Bowler Charts, Action Plans, and More
In my last two posts I described bowler charts, named due to their similarity to the score charts used for bowling. In this post I want to talk a bit more how the bowler chart fits in the big picture… or, if you will, how the big picture can use a bowler chart.
This will be a big picture on kaizen improvement. First you need your true north, which allows you to set your overarching targets (e.g., in a hoshin kanri). To reach the overarching targets in the hoshin kanri, you need practical problem solving, A3s, or an Action plan to make actual improvements toward your overarching goals. Underlying all of this is of course the PDCA. But, let me show you in more detail:
Hoshin Kanri and the Kanri Noryoku Program: Rejuvenating Toyota
In my previous posts I explained how Hoshin Kanri works. This post looks at how Toyota embeds Hoshin Kanri as part of their overall management structure. Toyota started this in 1979 when director Masao Nemoto started the Kanri Noryoku Program (管理能力プログラム), usually shortened to KanPro.
Hoshin Kanri – Part 4: The X-Matrix?
When googling Hoshin Kanri, you will sooner or later come across an X-Matrix. It is a visually very impressive tool, but I am in serious doubt about its usefulness. It focuses on the creation of the Hoshin items, but to me this approach is overkill, and – even worse – may distract the user from actually following the PDCA, especially the Check and Act parts. While the article is highly critical, I hope reading it and understanding the shortcomings help you better understand how Toyota thinks.
Hoshin Kanri – Part 3: Hierarchical Hoshins
Hoshin Kanri can be used individually, but its full potential is shown across the levels of corporate hierarchy. The goals of a Hoshin Kanri should be derived from the Hoshin Kanri of the next-level hierarchy above. This post is part of a larger series on Hoshin Kanri. Let’s look at the hierarchy structure:
Hoshin Kanri – Part 2: PDCA
In my first post on Hoshin Kanri I explained the details of making the list for the Hoshin. This now has to be combined with a PDCA (Plan, Do, Check, Act). The rigor of PDCA gives value and life to what would otherwise be a simple action list. Let me show you:
Hoshin Kanri – Part 1: The To-Do List
This week I will look at Hoshin Kanri (方針管理, policy management). The word is often used as a sort of miracle cure for the problems in your organization. The tool itself, however, is rather mundane, although it did significantly help Toyota. This, of course, did not stop the West from over-complicating and over-hyping it. This post is the start of a small series on Hoshin Kanri.