Hoshin Kanri is practically a planning process that was initially developed in Japan. It uses the basic techniques of management by objectives. Hoshin Kanri involves a system-approach and it is a successful technique that helps an organization focus its efforts on only the vital few initiatives to achieve the desired results. The organization needs to follow a strategic planning process for achieving the success by concentrating on the critical factors to get Hoshin Kanri benefits.
In simplest terms, Hoshin Kanri (Hoshin) defines a system that encourages the employees to critically analyze situations, make improvement plans, carry out performance checks and take timely corrective action. Hoshin helps align the thought process and efforts of each employee in an organization towards a single significant direction for the progress of the company considerably faster than others. It is a systematic approach that links daily management with strategic actions. It includes planning, implementation and a control process for management. Hoshin Kanri has yielded fantastic results in many companies throughout the world.
The total creative effort put together generates more benefits and gives the organization an edge over its competitors as compared with the sum of total separate benefits from individual efforts.
The main Hoshin Kanri Benefits can be summed up as:
- Hoshin Kanri creates an orientation towards revolutionary objectives. It makes the entire organization to focus on the vital few goals, rather than putting efforts on so many insignificant objectives.
- It brings forth organizational integration and boosts cross-functional cooperation to achieve the desired goals.
- There is a careful and continuous monitoring of progress. The process results are regularly reviewed and the plans are revised or corrected.
- Hoshin Kanri is a participative approach. It creates organizational alignment and involvement of everyone towards targeted breakthrough objectives. Each person in the organization is valued as an expert in his field and encouraged as his contribution is recognized.
Hoshin Kanri may require some initial effort and orientation of the individuals in the organization for their total involvement and commitment to get its incredible benefits.