Hoshin Kanri, also known as "strategy deployment," is a formal Lean technique used to identify an organization’s breakthrough objectives and create a defined three to five-year plan for achieving them. The process is associated with identifying the organization’s true north and aligning the goals and objectives of each employee with the strategic plan.
The typical process involves 6 steps:
Define "true north" that will stay fairly consistent over time
Identify significant business issues that need to be solved over a 3 to 5-year timeline
Establish specific measurable objectives to resolve these issues
Define key performance indicators (KPIs) for every level of the organization
Develop strategies, projects, and tactics to support the achievement of these goals
Review progress on a monthly and annual basis.
HOW CAN STRATEGY DEPLOYMENT HELP YOUR ORGANIZATION.
FOCUS ON ACTIONS, NOT JUST NUMBERS
IMPROVE ORGANIZATIONAL ALIGNMENT
INCREASE OWNERSHIP AND ENGAGEMENT
AWARENESS FROM THE BOTTOM UP IN THE ORGANIZATION.
ROOT CAUSE ORIENTATION
The Strategy Deployment Pyramid assists in choosing the business’ most important goals, identifying critical gaps, targeting improvement outcomes, engaging the workforce in problem solving, and putting in place defined PDCA loops to execute the plan. This Hoshin Kanri process systematically translates aspirations into tangible improvements.
The Strategy Deployment Model connects the different organizational layers (Corporate, Site, Line, Team) by defining the “WHAT” and the “HOW”: Whatspecifically to do and accomplish and how to accomplish the given target by solving what specific problem and achieving what results. PDCA cycles ensure full alignment and continuous learning and improvement.