Hoshin Planning

January 2000

From the Japanese phrase Hoshin Kanri

Hoshin = shining metal compass or pointing direction

Hoshin Planning is like a management compass that points everyone in the organization in the same direction, toward a common destination.

DEFINITION: A planning and management system that focuses and aligns the organization to achieve breakthroughs for customers.

Hoshin Planning does not replace other management strategies, it is a type of strategic planning system that orchestrates continuous improvement and breakthroughs. It selects the area that needs improvement, makes sure the right people get involved, and that the improvement is implemented.

Often multiple long-term goals result from the strategic planning process. HOSHIN PLANNING process can be used to identify which goals from the long-term plan will be addressed by the entire organization during the annual planning cycles. The assumption is that the long-term plan contains more than can be accomplished in any one year that the HOSHIN PLANNING process helps to focus on vital few goals for that year.

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Six key elements that are components of HOSHIN PLANNING

1. Focus for the organization = in the form of a few breakthrough goals that are vital to the organization's success.

2. Commitment to customers = including targets and means at every level of the organization that are based on meeting the needs and expectations that customers rank as most important.

3. Deployment of the organization's focus = so that employees understand their specific contributions to it. Referred to as the Golden Thread which links employees to what is important to customers and to one another.

4. Collective wisdom to develop the plan = through a top-down, bottom-up communication and negotiating process called catchball.

5. Tools and techniques = helpful, clear, and easy to use. Management and planning tools (affinity charts, tree diagrams, decision matrices, process decision program chart).

6. Ongoing evaluation of progress = to facilitate learning and continuous improvement.

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Hoshin/MBO Comparison
 

	Hoshin	MBO
Purpose	Organizational problem-solving for breakthroughs	Management of individual performance
Focus	Capabilities in meeting customer expectations	Individual achievements
Execution Responsibility	Teams	Individuals
Methodology	Quality principles/tools	Not specified
Time	Annual aligned with long-term goal	Final reviews on results
Review	Periodic progress reviews on process and results	Final reviews on results
Objectives	Vital few for competitive advantage	Numerous
Decision Basis	Facts and data	Data not required

Supplementary Notes

• participation by all team leaders/work team leaders; all staff participate in the vision creation
• performance goals and quality standards are set by teams
• catch ball = communicate extensively across the organization; back and forth often to help assure understanding and keep in front of people and organization

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HOSHIN PLANNING Steps

1. Choose the Focus

• make current state of the organization visible (CSA)
• define what the organization wants to be in the future (Vision)
• identify what the organization needs to focus on to achieve its vision and goals

2. Align the Organization

• develop annual targets with clear measures of success (library-wide quality standards)
• develop means - how to achieve these targets
• catchball the targets and means throughout the organization
• finalize 3-5 year plan

3. Implement the Plan

• execute
• monitor progress

4. Review and Improve

• diagnose and correct problems as soon as possible and at the level closest to the problem
• disseminate learning throughout the organization
• monitor and improve results, the plan, and the planning process
• recognize and celebrate progress