Lean Transformation Consultancy Private Limited
Bangalore Karnataka India
Business Management Consultancy Services
Hoshin
Plan and execute strategy with vertical and horizontal alignment
Hoshin
HOSHIN is a method that helps align an organization’s activities and functions with its strategic goals through a clear plan with specific objectives, actions, timelines, responsibilities, and measures. It starts as a top-down approach during the lean transformation process. After defining the main goals, it becomes a collaborative effort involving top-down, bottom-up, and horizontal communication, encouraging dialogue between senior managers and project teams about the resources and time required to achieve the targets.
The discussion revolves around GEMBA, a management practice focused on understanding the current situation through direct observation and inquiries at the place where value is created, and NEMAWASHI, a process of gaining acceptance and preapproval for a proposal by first reviewing the idea and then the plan with management and stakeholders to gather input, anticipate resistance, and align the proposed change with other organizational perspectives and priorities.
HOSHIN, meaning "DIRECTION," was developed by Professor Yoji Akao to ensure that all employees work towards the same strategic goals simultaneously. This approach helps eliminate waste caused by inconsistent direction and poor communication.
The purpose of HOSHIN is to identify necessary and achievable business improvements and involve people across functions to drive positive changes throughout the organization. Each part of the organization proposes actions to their seniors, outlining what they plan to improve within their area of influence to support overall business objectives.
Strategic plans developed at the top often fail when there’s no input from lower levels about available resources or conflicts with existing budgeting and performance systems. In our approach, different management levels collaborate to address business problems. At the strategic level, top management works with managers; at the department level, managers collaborate with group leaders; and at the process level, team and group leaders engage with frontline workers. Leaders are encouraged to build a shared understanding of issues, seek countermeasures, and mentor teams on potential solutions.
Mostly managements struggle to introduce the complex planning systems on strategy deployment:
Plans are often built on unrealistic assumptions, so they need to be simpler and more effective. Hoshin relies on straightforward, visual measurements of current performance levels that everyone can understand. Each plan includes a persuasive, simple story explaining how to address the issue, with A3 management being the specific approach. Mastering A3 management is crucial to Hoshin's success.
Plans rarely deliver the anticipated results as expected, making continuous adjustments essential. Many organizations struggle with this adaptability. Hoshin emphasizes a human touch as a critical success factor, engaging everyone in learning and experimentation to foster improvements. This approach taps into people's creativity, leading to better outcomes. Hoshin is more about social interaction than technical procedures. Viewing it as a rigid, format-based process often leads to failure.
The model illustrated below guides you to concentrate on an organization's most vital goals while promoting vertical and horizontal dialogue. It enables everyone to identify real issues and build synergy and collaboration, encouraging a focus on facts along the way.
A good visual communication model is essential for helping people discuss and reach quicker conclusions, avoiding endless arguments and debates. Without up-to-date information, all efforts become ineffective. The Obeya concept has proven to be highly effective in enhancing coordination, communication, and maintaining accountability at the highest level. A visual representation of the Obeya model is provided here.
Change is inevitable:
As societies evolve, new customer groups and purchase occasions emerge, along with new needs, distribution channels, technologies, machinery, and information systems. These changes often allow new entrants, free from the baggage of industry history, to spot opportunities for innovative competition more easily. Unlike established players, newcomers can be more agile since they don’t face the same trade-offs.
After experiencing Gemba at Toyota plants in India and Japan, learning from renowned Japanese TQM experts, and collaborating with Lean Senseis James P. Womack and John Y. Shook, we present an effective and efficient approach to hoshin through our Hoshin Management System. This is not just a training or workshop—it's a journey.
