Hoshin Kanri Strategic Planning Sustainability. Deployment HMV Business Consulting – Ahmedabad

01 Introduction

Points Covered… What is Hoshin Kanri? What is Hoshin Planning? 7 Steps of Hoshin Planning process How is Hoshin deployed? Benefits of Hoshin Kanri (sustainability)

What is Hoshin Kanri (meaning). The Japanese word Hoshin is made of two words “Ho” and “Shin”. Ho means method or form and “Shin” means shiny needle or compass used to point direction. 2. Thus Hoshin means a methodology for strategic direction setting. 3. Kanri is a expression used to indicate a degree of comparison like – significantly, fairly, considerably etc. 4. Thus the word Hoshin Kanri means “A method to point right direction through shiny metal significantly”. or better understood as “A method to point right direction significantly through shiny metal”.

History of Hoshin Kanri Origins at the Kobe shipyards and at Bridgestone in about 1950 or 60s in Japan. Strategic planning methodology popularised in Japan by Professor Koura Ishikawa since late 1950s. Many organizations in the world are using Hoshin Kanri methodology successfully since decades. GCMMF (Amul) is using Hoshin Kanri since 1990s. Most recently it is being implemented by Gopaljee Ananada Dairy Delhi.

Principles of Hoshin Kanri Each employee in-charge of specific job role can impact the planning as well as implementation ; the methodology uses the collective thinking as well as implementation power of all employees to make their organization better and better. Complementary participation team work all employees, from the top down and from the bottom up. Focus on shared Vision/ Goal(s) Communication of those goals to all leaders and through them to their team. Involve all leaders & their team in planning as well as implementation to achieve the goal. Hold participants (leader and team) accountable for achieving their part of the plan.

Principles of Hoshin Kanri Hoshin planning is concerned with result oriented good process which can be standardized. Normally if the results are good even through bad process we say it is good. Hoshin planning says when the process is good result is bad – it can’t happen – so review the process. If process is good result should be good thus Hoshin achieves result as well as standardized process for long term efficiency.

Strategy (How the organization thinks) People (How the organization leads) Process (How the organization operates on day to day) System (How the organization coordinates processes) Idea & Impact Hoshin Planning Impact Hoshin is a seven step process of evolving vision, mission , high level strategic objectives; along with individual - team and employee level- goals. It impacts all the 4 areas of business.

7 Steps of Hoshin planning process 1. Establish Organizational Values/Vision/ Mission/ Strategic thrust areas (STAs). C O N T I U S M P R V E 2. Strategic planning - develop 3-5 years breakthrough objectives. “Catch ball” 3. Develop annual objectives. 4. Deploy annual objectives. 5. Implement annual objectives. 6. Monthly Review. 7. Half Yearly/ Yearly Review.

How is Hoshin Deployed (process) • Values, Vision and mission. • Strategic thrust areas. • Objectives through “catch-ball”. • Hoshins through “catch-ball”. • Review. • Continuous Improvement. • Identifying/Developing of values/ vision/ mission through individual and group activity. • Identify STAs ideally 3 to 5 through the same process. • Evolve 3-5 years objectives as well as annual objectives. • Individual Hoshins are generated , recorded cascaded down through a specific methodology. • Review of the action(s) and result (s) against the benchmark set during the Hoshin generation. • Improve or standardize as per results.

Benefits of Hoshin Kanri (Sustainability) Organizations sustains over long period by being effective and efficient. Hoshin system improves effectiveness through achievement of short term (one year/ current year) objectives The benefits are achieved th…..through…….. Strategic planning. Employee involvement/ engagement. Catch-ball. Monthly and half yearly, yearly review. Hoshin develops all round efficiency into the organization by working towards 3-5 year goals and STAs.

Hoshin Kanri Some Thoughts If everything is a priority then nothing is. Leveraging all the four aspects of business noted on previous slide. The only way to predict the future is to build it. Continuously Learn and improve planning and execution at every review cycle. Single person cannot manage a show-involve/ engage all employees in planning and execution through “catch ball” and review.

Summing up Hoshin Kanri is the tool used to facilitate the creation of business processes that result in a sustained competitive advantage in various areas of business. Hoshin consists of a seven step process that begins with the selection of the vision/ mission and high level strategic objectives ending with the finalization of individual level improvement targets. The Hoshin planning aligns the major strategic areas with the specific resources and action plans needed to make them happen. Through a back and forth refinement system known as “catch-ball”, the entire organization becomes involved in delivering a combination of break through performance along with daily operations. The monthly and annual review mechanism in the Hoshin process enables the organization to “close gaps” more effectively enabling it to reach desired objectives.

Hoshin Kanri Consultants Profile. Shri Himanshu Vyas A commerce graduate and MBA in marketing. Associated with various companies during his 17 years with the corporate sector. He has worked mainly in the marketing, sales and distribution functions in companies like GCMMF (AMUL), Nerolac Paints, HDFC Bank Ltd and ICICI Bank Ltd. During his tenure with these organisations he has won many accolades, awards as well as foreign trips for achievements in sales and marketing. He has been exposed to the strategic thinking initiative since 1997 during the implementation of various TQM/ Hoshin Kanri initiatives in GCMMF  (Amul).  

You see things and you say why You see things and you say why? But I dream things that never were and say why not? – George Bernard Shaw. Don’t be too timid and squeamish about your actions. All life is an experiment. The more experiments you make, the better. – Ralph Waldo Emerson. Thank you.