Hoshin Kanri is a Japanese term for strategic planning and policy deployment (Hoshin = Direction, Kanri = Management). It is closely aligned with Deming's Plan-Do-Check-Action (PDCA) principle. It communicates company policy to everyone in the organization and helps focus improvement activity on the key drivers for success. Also called Hoshin Planning.
It is a systematic process by which a company integrates organization-wide customer-focused improvement initiatives into the long term strategic plan, which is then deployed throughout the company. To be truly effective therefore, Hoshin Kanri should involve employees throughout the company and should capture existing capabilities and activities instead of merely creating new ones. The strategic plan includes the major quality goals (which inform the financial goals), a systematic process for achieving them, a common language and universal participation and training in the methodology and tools for all to effect improvements.
The benefits are many:
1. Focus company resources on activities that are essential to improving customer satisfaction, decreasing costs and increasing shareholder value - the key drivers for success.
2. Creates a responsive, flexible and disciplined planning and implementation system.
3. Eliminates unnecessary and wasteful activities (and other plans) that do not fit in with the strategic plan.
4. Empowers management and employees alike by giving them the authority to carry out the planned activities and encourages cross-functional cooperation and superior breakthroughs.
5. Ensures the financial plans are achievable.
Strategic deployment thus enables companies to use their resources to their best advantage, giving them a competitive edge in the global marketplace.
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