Policy Deployment. Policy Deployment. Turning Theory Into Action. Hoshin Kanri. Heinrich Moormann. Strategy Deployment EN_

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Augustus Snow
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1 Policy Deployment Hoshin Kanri Policy Deployment Turning Theory Into Action Page 1

2 What is Policy Deployment? Policy Deployment or Hoshin Kanri Hoshin Kanri was developed in the 1950s in Japan in order to drive down strategic key entity goals systematically and sustainable into operations Ho = direction Shin = needle Kanri = Management and control Hoshin Kanri = management and control of the organization's direction needle (compass) or focus. Hoshin Kanri provides us with standardized tools for step-bystep entity wide strategic planning, an inherited continuous improvement process and the control of success. Page 2

systematically and sustainable into operations Ho = direction Shin = needle Kanri = Management and control Hoshin Kanri = management

3 Hoshin Kanri a companywide planning and controlling system Policy Deployment or Hoshin Kanri All employees and managers are involved Starting with the corporate vision key long term objectives are deduced (Breakthrough s) These Breakthrough objectives are cascaded systematically and stringent to different levels At the end every employee or manager has his own strategies and objectives deduced from the top level. All employees are aligned to the corporate vision and the same objectives. Page 3

objectives are cascaded systematically and stringent to different levels At the end every employee or manager has his own

4 Why use Hoshin Kanri? Policy Deployment or Hoshin Kanri The goal is to build a sustainable competitive advantage Basis Policy Deployment Kaizen+KVP Basis Policy Deployment Kaizen+KVP Basis Policy Deployment Kaizen+KVP Basis Basis Year 0 Year 1 Year 2 Year 3 Year 4 Breakthrough Objectives Reached. Once Breakthrough is achieved the process is standardized and becomes daily management Page 4

Policy Deployment Kaizen+KVP Basis Policy Deployment Kaizen+KVP Basis Policy Deployment

5 The Hoshin Kanri Process From Mission to Action Page 5

6 The Hoshin Kanri core The X Matrix The X-Matrix is the helmstand for the Hoshin Kanri System: In 6 h position Financial Breakthrough objectives are defined for the next 3 years In 9 h position the annual objectives are developed and established In 12 h position top level strategic priorities and action are created and set In order to measure and control the actions Targets to Improve (TTI s) are created in 3 h position. Furthermore responsible employees for the actions are assigned Page 6

established In 12 h position top level strategic priorities and action are created and set In order to measure and control

7 Cascading the objectives The reconciliation process The objectives are cascaded from top to bottom and back during the reconciliation process. At the end there are action plans for every level. Page 7

bottom and back during the reconciliation process.

8 The Point Of Impact Action Plans From strategic priorities to action Strategic Priority from the X-Matrix Critical Dependencies Primary Resource from the X-Matrix TTI from the X-Matrix Detailed Action Plan Steps Detailed Timing Columns to quantify and track impact An Action Plan must be created for every strategic priority at the point of impact Page 8

X-Matrix Detailed Action Plan Steps Detailed Timing Columns to quantify and track impact

9 The monthly review process Check action plans and measure TTI s The results are controlled from the management on a monthly base The review process is also cascaded and drives down to all necessary levels If objectives are not reached the responsible person has to analyze the root causes and define countermeasures in order to get back on track Page 9

and drives down to all necessary levels If objectives are not reached the responsible

Monthly Review Process 3 in 1 charts Metrics Tracking, Pareto and Countermeasures A cause is something you want to remove A Why The measurements which describes your

10 Monthly Review Process 3 in 1 charts Metrics Tracking, Pareto and Countermeasures A cause is something you want to remove A Why The measurements which describes your process The action must relate directly to the causes in the Pareto The status is a choice of On Track, Caution, or Problem By name, who s the owner of this action? Page 10

process The action must relate directly to the causes in the Pareto The status is a

Hoshin Kanri: Collaborating to Chart and Manage Strategies. Dr. Gail Ferreira Agile Alliance 2015

Hoshin Kanri: Collaborating to Chart and Manage Strategies Dr. Gail Ferreira Agile Alliance 2015 Agile Project Management Hoshin Kanri, 方針管理 Agenda 1. Apply Lean principles to the strategic planning