K e s t Lean Methods & Implementation / Leadership Strategy e r s o n T H E B A S I C S O F The problem with most Hoshin Kanri books is that they describe a complex methodology that is overwhelming to most leaders and their organizations. The need to essentially change the culture of the entire organization to make Hoshin work isn’t practical for most companies when first starting out. H O S H I N The Basics of Hoshin Kanri uses an easy-to-follow story format to simplify and explain Hoshin Kanri – a method for strategy deployment. T H Supplying clear descriptions of the steps of Hoshin Kanri, it advocates E using Hoshin as an important tool for improving an organization’s B existing planning and execution system while simultaneously moving A the culture of the organization forward. S I C The book provides readers with a new understanding of Hoshin Kanri S K A N R I O as a powerful deployment system for strategic planning, defining a F direction and priorities, and aligning the organization around that H direction. It begins by telling the story of a manufacturing executive O who uses a simple Hoshin Kanri approach to make significant change S H in his personal life. I N Next, the book illustrates how this executive prepares to apply Hoshin K A Kanri to deploy strategy within his or her business. It concludes by N presenting fascinating excerpts from the author’s own interviews with R experts in the field of Hoshin Kanri. I All business leaders want their organizations to be “great” in all respects, but the reality is that they must get to “good” before they can consider becoming “great.” RRaannddyy KK.. KKeesstteerrssoonn K22148 ISBN: 978-1-4822-1869-5 90000 9 781482 218695 THE BASICS OF H O S H I N K A N R I THE BASICS OF H O S H I N K A N R I Randy K. Kesterson Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an informa business A PRODUCTIV ITY PRESS BOOK CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2015 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20140620 International Standard Book Number-13: 978-1-4822-1870-1 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. 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Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com To my parents, Lyle and Barbara, for raising me To my wife, Susan, for putting up with me Contents Preface ....................................................................................................xi Acknowledgments ...............................................................................xix Introduction .........................................................................................xxi Chapter 1 The Basics of Hoshin Kanri: A Personal Example to Help Explain the Steps .......................................................1 Jon ..................................................................................................1 Introduction to The Little Book .................................................2 Step 1: Scan—Create a Vision and Assess Reality .............3 The Scan Process ................................................................3 Step 2: Plan ............................................................................14 Bowling Chart ..................................................................14 Step 3: Do ...............................................................................16 Step 4: Check .........................................................................17 Step 5: Adjust .........................................................................18 Back to Step 3: Do .................................................................18 Step 4 Again: Check .............................................................18 Step 5 Again: Adjust .............................................................18 Back to Step 3 Once More: Do ............................................19 Step 4 Again: Check .............................................................19 Step 5 Again: Adjust ............................................................20 Key Takeaways from Chapter 1 ..............................................20 References ...................................................................................21 Chapter 2 Hoshin Kanri to Deploy Business Strategy ....................23 Jon’s Business .............................................................................23 Introduction to The Little Book ...............................................24 Step 1: Scan ............................................................................25 The Scan Process ..............................................................26 The First Working Lunch Meeting ................................26 The Second Working Lunch Meeting ...........................27 The Third Working Lunch Meeting ..............................29 The Fourth Working Lunch Meeting ............................31 vii viii • Contents The Fifth Working Lunch Meeting ...............................33 The Sixth Working Lunch Meeting ...............................36 Step 2: Plan ............................................................................38 Catchball ..........................................................................40 Key Takeaways from Chapter 2 ...............................................41 References ..................................................................................42 Chapter 3 Interviews with Hoshin Kanri Experts ..........................43 Introduction to Chapter 3 .......................................................43 What Is Hoshin Kanri? ............................................................44 Three Words to Describe Hoshin Kanri? ...............................47 The History of Hoshin ..............................................................49 Why Use Hoshin? ......................................................................50 Prerequisites, Critical Success Factors, Secrets, and Keys to Success? .........................................................................52 Lessons Learned? .......................................................................63 What Can Go Wrong? ..............................................................74 Who Uses Hoshin Kanri? (And Why Not More Users?) .....79 Different Approaches to Hoshin? ...........................................80 Importance of Vision? ..............................................................81 Hoshin Objectives: How Many and What Should They Be? ...82 Cascading of Objectives? .........................................................84 The PDCA Cycle (Plan– Do– Check– Act) ...............................85 The Catchball Process ..............................................................86 The Hoshin Tools .......................................................................89 Affinity Diagrams ......................................................................89 The X- Matrix and the A3 .........................................................91 The Hansei– Hoshin Reflection Tool .......................................93 Metrics ........................................................................................93 Balanced Scorecard versus Hoshin? .......................................94 How Are Hoshin Kanri and Lean Six Sigma Related? .........98 Index of Expert Interviews .....................................................104 The Catalyst for Success with Hoshin Kanri .......................108 Some Words of Caution ..........................................................110 Recommended Reading ..........................................................111