Just as you are getting ready to set your personal goals for the coming year, now is also a good time to set goals for your company. At Toyota, we used Hoshin Kanri to accomplish just that. Hoshin Kanri is a method used to identify and document strategic goals as well as insight about the future, and develop the means to bring these into reality. Also called “Hoshin Planning” or “Policy Deployment”, it is designed to use the collective thinking power of all employees.
Overview of Hoshin Methods:
- Establish a Hoshin plan summary – identify core objectives
- Establish a Hoshin action plan – links core objective to an action summary
- Establish a Hoshin implementation plan – a document to record action items
- Establish a Hoshin implementation review – a document located in one place which illustrates progress being made as it relates to core objectives
In Japanese, Hoshin means compass or pointing the direction, kanri means management or control. The name suggests how companies can use Hoshin to align employees to reach company objectives.
Companies that use Hoshin:
- Bank of America
- Merck Pharmaceutical
- Hewlett Packard
- Bridgestone Tire