Hoshin Kanri

Hoshin Kanri

Introduction to Hoshin Kanri

In the complex world of organizational strategy deployment, few methodologies stand out as prominently as Hoshin Kanri. Originating from Japanese management practices, Hoshin Kanri provides a systematic approach to aligning an organization’s functions and activities with its strategic objectives.

What is Hoshin Kanri?

Hoshin Kanri is a strategic planning method that helps organizations align their day-to-day functions with their overall strategic objectives. The term “Hoshin” means “compass” or “direction,” while “Kanri” translates to “management” or “control.” Together, they signify a method of managing and steering an organization toward their strategic objectives.

How is Hoshin Kanri Applied?

The core idea behind Hoshin Kanri is to ensure that every part of the organization, from top management to frontline employees, is working towards common goals that move the organization forward while setting clear objectives and deploying them throughout the organization, then continuously monitoring progress to ensure that the objectives are met.

Note that in Lean projects, “goals” refer to smaller scale, project-level benchmarks while “objectives” are larger, longer-term organization-level ones.

Hoshin can be practiced at the project level as well as the organizational level. The mission and values of the project are a collaboration of the client mission and value, while the strategic direction and objectives are defined through the project team’s conditions of satisfaction and/or the project goals, which are deployed at every level of the project.

Lean Principles Associated with Hoshin Kanri

Hoshin Kanri is deeply rooted in Lean principles, which are focused on creating value for the customer by eliminating waste and improving processes. Some key lean principles associated with Hoshin Kanri include:

1. Customer Value

When deploying Hoshin Kanri methods, ensure that all strategic goals are aligned with delivering value to the customer.

2. Optimizing the Whole

Hoshin Kanri focuses on bringing all departments at all levels and connecting them with the organizational strategy/objectives and not siloed departmental objectives, initiatives and goals.

3. Respect for People

While utilizing Hoshin Kanri, it’s crucial to engage employees at all levels in the strategy deployment process, valuing their input, and fostering a collaborative culture.

Practicing Hoshin Kanri in Project Delivery

Implementing Hoshin Kanri at the project level involves several key steps:

1. Define Value

Begin by defining the project value proposition and business case of the project. This should result in an understanding of the mission of the customer in what they want to gain through the project business case.

For example:

  • Value: Laboratories for International collaborative research focused on curing rare genetic diseases.
  • Business case: Design and Build a 6700 sqft multi use laboratory space for $1.2M by November 2026.

2. Develop Conditions of Satisfaction

What does success for all stakeholders on a project look like, sound like and feel like? These should be quantitative and qualitative, measurable, achievable, and aligned with the overall value and business case. The CoS should also align with each involved organizations’ overall objectives.

3. Apply the Conditions of Satisfaction

Deploy the CoS throughout the project team members (owners, trades, design, engineers, builders, etc). This involves translating the CoS into specific targets, guidance for decisions and planning for all levels of project leadership including work cluster groups, and trade partners.

4. Review & Adjust Regularly

Establish a routine for regular reviews of progress towards the conditions of satisfaction. This involves tracking status, identifying deviations, and continuously improving through the PDCA (Plan, Do, Check, Adjust) cycle.

5. Establish a Continuous Feedback Loop

Create a feedback loop where insights and lessons learned are continuously fed back into planning and decision-making information streams of the project. This ensures that the project remains agile and can adapt to changes effectively.

Hoshin Kanri as a Catalyst for Change

Hoshin Kanri is a powerful methodology for strategic planning and deployment that aligns the entire organization towards common objectives. By integrating Lean principles and fostering a culture of continuous improvement at the project level, it ensures the team can effectively deliver on the customer value proposition.

Practicing Hoshin Kanri requires a disciplined approach, but the rewards in terms of alignment, focus, and sustained success are well worth the effort. Whether you are looking to enhance or improve project outcomes, Hoshin Kanri offers a structured and proven path to success.