Hoshin

Hoshin kanri is a step-by-step planning, implementation, and review process for managed change. It is a systems approach to the management of change in critical business processes.

The Japaneseterm Hoshin kanri has been translated different ways into English in an attempt to capture its true meaning. The most frequently used translations are 'management by policy', 'hoshin planning', and'policy deployment'. Unfortunately, none of them corresponds exactly to the complete meaning of the Japanese term and the methodology it stands for.

The purpose of Hoshin kanri (or Policy Deployment)is to make it possible to get away from the status quo and make a major performance improvement by analyzing current problems and deploying in response to environmental conditions.

Policy Deploymentcascades, or deploys, top management policies and targets down the management hierarchy. At each level, the policy is translated into policies, targets and actions for the next level down.

WithPolicy Deployment, top management vision can be translated into a set of coherent, consistent, understandable and attainable policies and actions that can be applied at all levels of the company and inall functions of the company. When these actions and policies are applied, they result in the vision becoming reality - and a major and continuing improvement in performance.

At the beginning ofthe Policy Deployment process, top management sets the overall vision and the annual high-level policies and targets for the company. At each level down, managers and employees participate in thedefinition, from the overall vision and their annual targets, of the strategy and detailed action plan they will use to attain their targets. They also define the measures that will be used to demonstratethat they have successfully achieved their targets.

Then, they, in turn pass on targets to the next level down. Each level under top management is, in turn, involved with the level above it to...