This week is Lean series week at Beyond Lean. The blog posts will center around strategy deployment (or Hoshin Kanri). Justin Tomac, Chad Walters, Karen Wilhelm and Tony Ferraro will be guest blogging. This will give you different perspectives from on strategy deployment all right here at Beyond Lean.
Today’s post is from Tony Ferraro, on behalf of Creative Safety Supply based in Portland, OR (www.creativesafetysupply.com). Tony strives to provide helpful information to create safer and more efficient industrial work environments. His knowledge base focuses primarily on practices such as 5S, Six Sigma, Kaizen, and the Lean mindset. Tony believes in being proactive and that for positive change to happen, we must be willing to be transparent and actively seek out areas in need of improvement. An organized, safe, and well-planned work space leads to increased productivity, quality products and happier employees.
There are many businesses out there proposing new and creative ideas but somehow lack the guidance and direction to make a good product idea a successful reality. What is it that curbs these business ventures? Is it funding? Is it technology? Or is it a true sense of guidance and leadership? In most cases, the unfortunate truth is that a great product idea or truly unique business plot will flounder and fail without a strategic direction and strong force of leadership helping to guide business objectives. One of the ways to meet this need is to implement the principles of Hoshin Kanri or simply Hoshin Planning. Hoshin Planning is a Japanese term that basically means “strategic planning.” This type of planning strives to really involve all employees in the objectives and improvements within the organization. Top levels of management make it a priority to assure that that all employees feel involved and that they are working as one big team towards a common goal. With this mindset there are no winners or losers within the company, it is purely a team effort and everyone participates and is accountable to help in meeting the identified objectives. The need for continuous improvement is also a highly valued component in this type of planning.
Possible Hoshin Objectives
One of the first and most important steps within Hoshin Planning is to identify the areas in need of improvement, and since Hoshin Planning is about setting clear business objectives it is important identify which objectives are most valuable to the livelihood of the business. Some common continuous improvement objectives include: increasing production, improving current market share along with new market sales, reducing raw material costs and also reducing direct and indirect labor costs. The reason this step is so vital is because everything can’t be tackled at once, think of the analogy that the “big rocks” must be taken care of first in order to start focusing on the “little rocks.”
Organizing Objectives for Clear Measurement
Unfortunately, objectives are merely a list of far-fetched desires if they are not organized properly for action. Sure, a group of leaders can set aside some time to devise a list of company objectives and write them neatly upon a fancy sheet of paper. However, without a concrete plan to guide the objectives the objective planning session would be deemed useless, and the paper may even end up getting lost in someone’s briefcase only to stumble upon it again weeks later. Instead, once objectives are identified they need to be taken seriously and should be categorized and organized for efficiency. For example, once a group of leaders has clearly identified the objectives they would like to implement into the business, they could categorize them into four different types such as improvement projects, specific action projects, 3-5 goals, and annual objectives. By doing this, top company leaders as well as employees will be able to visualize the different objectives and goals and really understand the time frames behind them as well. Essentially this sets the stage for developing the approaches needed to help pursue the stated objectives and goals when moving on to the strategy development phase of Hoshin Planning.
Hoshin Planning is really a dynamic and multifaceted form of strategic planning which involves all areas of a business. However, in order to reach optimum effectiveness all staff should be on board and involved. With that said, and in conjunction with the right objectives, Hoshin Planning can be a huge asset to any business looking to improve overall company performance.