ESMU-HUMANE WINTER SCHOOL STRATEGIC PLANNING AND IMPLEMENTING CHANGE: HOSHIN PLANNING METHODOLOGY Alfonso Stinus, Senior partner Barcelona, 2 March 2004

Process Continuous Improvement Improving Quality A Act P Plan Check C Do D

Ho = direction shin = needle Hoshin = compass HOSHIN PLANNING

Hoshin Planning: Hoshin Management or Hoshin Deployment oA strategic planning and management system that focuses and aligns the organization to achieve breakthroughs for customers oA methodology for the implementation and deployment of long-term-organization strategic goals, by putting them in short and mid term objectives, across all levels of the whole organization

Hoshin Planning “Any organization with a mediocre plan well executed will beat another organization with an excellent plan not executed” “ Plans are nothing; Planning is everything” Eisenhower Hoshin is a Process for the making and executing a Strategic Plan

Hoshin Planning Focus for the organization = in the form of a few breakthrough goals that are vital to the organization's success. Deployment of the organization's focus = so that employees understand their specific contributions to it. Collective wisdom to develop the plan, through a top-down, bottom-up communication and negotiating process = communicate extensively across the organization; back and forth often to help assure understanding Ongoing evaluation of progress = to facilitate learning and continuous improvement.

Hoshin Planning Step 1 Strategic Analysis Step 2 Organisation Alignment Step 3 Implementation Step 4 Review and Improvement P D C A P D C A

1. Strategic Planning 1.1. Make current state of the organization visible Reviewing of Mission and Values Identifying trends that affects our costumers, providers and competitors. Analyzing the state of the “business” (SWOT) 1.2. Define what the organization wants to be in the future (Vision) 1.3. Identify what the organisation needs to focus on to achieve its vision and goals develop annual targets with clear measures of success (library-wide quality standards) develop means - how to achieve these targets set strategic objectives to reach (3 to 5 years)

Present Vision & Objectives Strategic actions Setting Objectives: focusing the organization

2. Align the organization: deployment of the plan 2.1. Develop objectives for the year List objectives Set periods Develop performance measures for each objective 2.2. Objectives deployment throughout the organization Through a relationship what/who, objectives/means deployed in cascade

Multiyear deployment Hoshin Planning Year 1 Year 2 Year 3 IIIIIIIV New library services for virtual students Increase foreign students inscription Service A Service B Services C, D Market Analysis Actions Step 1 Actions Step 2

Deployment of objectives Top level Strategies become lower level Objectives and are deployed throughout the organisation Senior Staff Objective Strategy Middle Management Line Management Objective Strategy

Organizational deployment Hoshin Planning Objectives level 3 = Activities level 2 Objectives of Organization Objectives level 2 = Activities level 1 Activities level 2 Level 2 University Units Objectives of Organization Yearly Objectives Activities in order to reach the yearly objectives Level 1 Top Managers Level 3 Department s/ Sections Objectives of Organization Activities level 3

3. Implement the plan 3.1. Implementation of the plan Deployment throughout the whole organization 3.2. Supervise the evolution Follow up and data collection 4. Review and improve 4.1. Process and results of implementation analysis –Plan: How is it ? –Do: What happened? –Check: Is there a gap between plan and reality? –Act: How we update the plan?

HOSHIN PLANNING: Steps

Hoshin Plan deployment measurement Measures review 1 Year Hoshins Check Act Plan Work the plan Long range Plan and Vision Mid term Plan Environment HOSHIN PLANNING FUTURE PAST ORGANIZATION PRESENT

Hoshin Plan deployment measurement Measures review 1 Year Hoshins Check Act Plan Work the plan Long range Plan and Vision Mid term Plan Environment HOSHIN PLANNING FUTURE PAST ORGANIZATION PROACTIVE REACTIVE CONTROL

Hoshin Planning: Critical Success Factors nPractice in Strategic Planning and Process Improvement nBe able to priorize: m “A few vital objectives” m Understanding needs and expectations of customers nLeadership nDeployment throughout the entire organization nSystematize the process in an easy way

Hoshin Planning: Failure Factors lLack of commitment of top managers lLack of definition of the objectives lResponsibilities not clearly defined lLack of a clear vision on the whole organization lStrategic plan with no performance measures, actions, responsibilities and schedule. lLack of a common language lLack of training on methodology and tools