Lean Transformation Consultancy Private Limited
Bengaluru Karnataka India
Business Management Consultancy Services
Hoshin
The Management System for Improvements
Hoshin
HOSHIN is a method aimed at aligning an organization's activities functions with its strategic goals through a comprehensive plan that outlines specific objectives, actions, timelines, responsibilities and metrics. It begins with a top-down approach where primary goals are set, later into a collaborative effort that includes top-down, bottom-up, and horizontal communication. This process encourages dialogue between senior managers and project teams about the resources and time required to achieve the targets.
Many strategy deployment processes fail not due to flawed strategies, but because the management system struggles to maintain alignment, learning, and adaptability when faced with real-world challenges. HOSHIN, which translates "DIRECTION," was created by Professor Yoji Akao to ensure that all employees are aligned with the same strategic goals. This method helps to mitigate waste resulting from inconsistent guidance and ineffective communication. The aim of HOSHIN is to pinpoint necessary and attainable business improvements while engaging individuals across various functions to foster positive changes throughout the organization.
The discussion focuses on GEMBA, a management approach that prioritizes understanding the current situation through direct observation and inquiries at the value creation site, and NEMAWASHI, a process aimed at securing acceptance and preapproval for proposals by initially engaging management and stakeholders to address objections and align changes with organizational goals.
Four essential behaviors that drive transformation include: - Go See (Gemba) - Observing where value is created to gain a clearer understanding of facts. - Ask Why (Coach) - Encouraging inquiries to promote scientific thinking. - Show Respect (Listen to people) - Fostering an environment where issues can be raised early, thus preventing future crises. - Connect to Strategy (Hoshin) - Ensuring that everyone comprehends how their daily activities align with company objectives.
These behaviors are interconnected actions that create a management system for continuous improvement. This approach emphasizes daily management focused on problem-solving rather than just tracking. Teams can identify issues early because they understand their goals and feel safe bringing up problems. A3 problem-solving enhances capabilities by teaching individuals to view challenges as opportunities, conduct root cause analysis, and experiment with solutions. Hoshin supports strategic alignment, enabling objectives to cascade meaningfully so that everyone can see how their work connects to broader goals.
Many organizations do not find it difficult to create a strategy; rather, they struggle to maintain alignment, learning, and adjustments once strategy meets reality. Common pitfalls include: - Clear objectives but conflicting priorities. - Detailed plans yet limited ownership. - Regular reviews with minimal learning or course corrections. - Intense pressure to perform but weak capability development.
Research on Hoshin indicates that tools contribute to only 30-40% of transformation initiatives, while a significant 60-70% is centered changing leaders' behaviors. Many organizations focus on training but neglect the critical aspect of behavior change among the leaders. When leaders analyze the root causes for transformation failures, they realize that they hold the key to achieving success. Unfortunately, many do not take the necessary steps to make corrections.
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.
