As James McNerney, the former CEO of Boeing, once stated, "Execution – converting plans into action – can only occur when a company's resources are aligned with its strategic priorities." In this vein, Hoshin Planning is a proven methodology designed to ensure that all critical resources in an organization are laser-focused on accomplishing key strategic objectives. This management approach, rooted in the principles of Lean Management, involves establishing both long-term strategic goals and the tangible means to achieve them through a concerted organizational effort.
Principles of Hoshin Planning
Hoshin Planning operates on a few fundamental principles:
Focus: Prioritizing a small number of strategic objectives that have the greatest impact on the organization's performance. This approach prevents resource dilution across numerous, potentially less significant goals.
Alignment: Every department and individual in the organization understands the role they play in achieving the strategic goals. This fosters responsibility and accountability in all levels of the firm.
Review: Repeated monitoring and assessment of progress, ensuring adaptability and responsiveness. This facilitates both course correction and recognition of achieved milestones.
Executing Hoshin Planning
Implementing Hoshin Planning involves a structured, step-by-step process:
Identifying the "True North": Establish the overarching strategic vision or objective for the organization. This vision sets the direction for all subordinate goals.
Setting Breakthrough Objectives: Define the key goals that are critical for reaching the "True North" over a three-to-five-year period. These goals represent significant changes or breakthroughs in the organization's performance.
Developing Annual Objectives: Decide on the goals to be achieved in the coming year that will contribute to the breakthrough objectives. These short-term targets should align perfectly with longer-term goals.
Challenges in Hoshin Planning Implementation
While Hoshin Planning is a powerful tool, its execution can be challenging. C-suite leaders should champion the initiative and drive alignment across the organization. It is also vital to regularly review and adjust the implementation in response to variances between planned goals and actual results, as well as market changes and disruptions. In addition, incorporating a strong communication strategy is key to ensure all employees understand the organization's direction, their role in it, and progress towards the objectives.
Role of Technology in Hoshin Planning
The emergence of Digital Transformation in organizations offers a powerful means to operationalize Hoshin Planning. Platforms and tools that support data-driven decision-making, Performance Management, collaborative planning, and real-time monitoring, to name a few, can enhance the efficacy of Hoshin Planning, enable better alignment, and expedite goal accomplishment.
Final Thoughts
Hoshin Planning paves the path to Operational Excellence, aligning the organization, its strategy, and its resources towards a common vision. It fosters a culture of shared responsibility and continuous improvement, key tenets of effective Strategic Planning. This methodology is not a mere tool; it is a mindset, a way of running a business that demands commitment and discipline but promises significant enhancements in organizational performance and competitive standing.
CUSTOMER TESTIMONIALS
"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.
Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I have been able to exceed expectations and deliver quality advice and solutions to my clients. The quality and expertise of the authors are exemplary and gives me great confidence to use as part of my service offerings.
I highly recommend this company for any consultant wanting to apply international best practice standards in their service offerings. "
– Nishi Singh, Strategist and MD at NSP Consultants
"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."
– Chris McCann, Founder at Resilient.World
"My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success."
– Bill Branson, Founder at Strategic Business Architects
"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.
The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."
– Dennis Gershowitz, Principal at DG Associates
"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it give me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."
– Royston Knowles, Executive with 50+ Years of Board Level Experience
"I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."
– Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact that it is not at all just a repository of documents/resources but, in the way that David and his team manage the firm, it is like dealing with consultants always ready to assist, advise and direct you to what you really need, and they always get it right.
I am an international hospitality accomplished senior executive who has worked and lived during the past 35 years in 23 countries in 5 continents and I can humbly say that I know what customer service is, trust me.
Aside from the great and professional service that Flevy's team provide, their wide variety of material is of utmost great quality, professionally put together and most current.
Well done Flevy, keep up the great work and I look forward to continue working with you in the future and to recommend you to a variety of colleagues around the world."
– Roberto Pelliccia, Senior Executive in International Hospitality
"I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."
– Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
SELECT CUSTOMERS
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes across the world—in over 130 countries.
Below is just a very small sample of our customer base.
Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.