Hoshin Kanri: A Strategic Planning and Deployment Methodology http://www.flickr.com/people/eileensanda/ Turning Vision and Strategy into Results through Action Introduction to Hoshin Kanri

Hoshin Kanri: Direction + Execution http://www.flickr.com/people/eileensanda/ Analogy for Hoshin Kanri: “In a crew, the coxswain is the member who sits in the stern facing the bow, steers the boat, and coordinates the power and rhythm of the rowers.” (http://en.wikipedia.org/wiki/Coxswain_%28rowing%29) In the Hoshin Kanri methodology, leadership sets the direction (vision and strategy), monitors the progress, and course corrects as required. Alignment to the direction set allows the team to work together (action) to reach the destination (results). In Hoshin Kanri, Strategy + Deployment = Direction + Execution Introduction to Hoshin Kanri

What is Hoshin Kanri? The Hoshin Kanri methodology, which flows from Lean, employs a structured planning and deployment cycle during which goals are determined, plans to achieve the goals are established, and measures are created and monitored to ensure progress toward these goals.  Introduction to Hoshin Kanri

Basic Principles of Hoshin Kanri Is the embodiment of the Plan-Do-Check-Adjust (PDCA) cycle In Hoshin Kanri, the Plan-Do-Check-Adjust (PDCA) cycle is core to work at all levels. Within the PDCA cycle, grasping the situation is a critical starting point. Introduction to Hoshin Kanri

Basic Principles of Hoshin Kanri Allows the sector to prioritize and sequence Provides focus for the alignment of effort and resources Hoshin Kanri involves long-, mid- and short-term planning. The long-term strategic planning allows leaders to prioritize and sequence the work. This means that leaders will “say “yes” to the few and “wait” to the many.” This may be a challenge as traditional strategic planning often involves limited or no sequencing of work. Prioritization and sequencing of work allows for a focus within the organization that supports effort and resource alignment for greater effectiveness. Introduction to Hoshin Kanri

Traditional Deployment Trying to accomplish everything all at once Fighting for resources No prioritization amongst initiatives Difficult to adapt to changes in environment Few initiatives completed Slide from the Affinity Health System (US) – their perspective on their traditional strategic planning and deployment. Introduction to Hoshin Kanri

Hoshin Kanri Deployment Initiatives are prioritized Only a few deployed at a time (de-selection) Easy to adapt to changes in environment Most initiatives completed on time Slide from Affinity Health System (US) – their view of what using Hoshin Kanri—to prioritize and sequence, “focus and finish”—allowed them to do: complete more work within the timeframe in a more effective way (e.g., better able to adapt to changes in the environment over the span of the year). Introduction to Hoshin Kanri

Basic Principles of Hoshin Kanri Selection Deployment Typically, organizations spend most of their time selecting the “perfect” outcome(s) and precious little time on deployment….Anybody can make a plan, but deployment is the real work. Using the Hoshin Kanri methodology, leaders select outcomes and then develop and deploy methods to achieve them. Deployment includes ongoing monitoring of progress toward outcome achievement with course correction as required. Introduction to Hoshin Kanri

Basic Principles of Hoshin Kanri Utilizes collective knowledge: the insight and creative talents at all levels must be effectively brought to bear on sector challenges and opportunities Requires frequent measuring and rigorous review of results by leadership, with timely course correction as required Introduction to Hoshin Kanri

Basic Principles of Hoshin Kanri Requires shared responsibility and accountability for achieving timely results There is no “shame and blame”— there is “learn and improve.” Introduction to Hoshin Kanri

We are going to be “bad” travelers. Hoshin Kanri A good traveler has no fixed plans, and is not intent on arriving. Lao Tzu We are going to be “bad” travelers. Hoshin Kanri is a journey—with a specific destination. Introduction to Hoshin Kanri

Hoshin Kanri is about the journey… and the destination. The beginning of the Hoshin Kanri cycle focuses on helping leaders achieve a shared understanding of the starting point of the sector—the “lay of the land” which includes a scan of the environment and reflection on the internal state of the organization (e.g., school division, ministry). In Hoshin Kanri, the Strategic Intent provides a view of the desired destination—the overarching statement of what the sector wants to achieve as a result of the strategic work it will do. On the path between the starting point and the destination lays work and also impediments or barriers of varying size and complexity. Some of the impediments are small “pebbles in our shoes” that are successfully resolved through individual or small group improvement efforts. Larger barriers may require a larger group or cross-functional teams to work together to address. The most critical goals and/or the largest barriers would require the whole sector to focus to achieve or overcome them. In each year, these would be the hoshins (improvement breakthroughs), or the “must do, can’t fail” “focus and finish” work that are most critical for the sector to achieve in order to move forward on the path toward the destination. There will also be work that doesn’t fall on the path to the destination. While this work may be interesting, it is not deemed to be necessary to arriving at the desired destination. Such work may be considered for inclusion in the future. Based on the Road Metaphor for Planning (Cowley & Associates, 1995) Introduction to Hoshin Kanri

Insights from the Health System “When you go back to Education, tell them the first time through is REALLY hard!! But by Cycle 2, you will know that it was worth it!” Health Region Employee “We will never go back to old ways of strategic planning. The changes are too positive and too important. Health Region CEO upon commencing Cycle 3 You will get better each cycle: taking a PDCA approach to the Hoshin Kanri methodology— “We are learning to do this.” — is imperative. Introduction to Hoshin Kanri

Hoshin Kanri Follows a Cycle Hoshin Kanri has a structured cycle that is followed. While the graphic depicts the planning portion of the cycle as much larger than the doing, checking, and adjusting portions, this is not the reality. The planning portion occurs prior to the year in which the work is deployed so Hoshin Kanri cycles overlap. Introduction to Hoshin Kanri

Hoshin Kanri Terminology Strategic Intent: A high-level statement of what the sector wants to accomplish. Enduring Strategies: Broad areas of strategic focus. Defines “What’s in” and “What’s out” The “Big How” Typically 3-5 years, but may be longer See Definitions and Examples handout Introduction to Hoshin Kanri

Hoshin Kanri Terminology Outcomes: Longer-term results (typically 3-5 years) The change the sector wants to see in the future The “what” that is accomplished through the improvement targets and hoshins States what the desired improvement/change is, by when it will be achieved, and a measurement of how much will be improved (what, by when, by how much). See Definitions and Examples handout Introduction to Hoshin Kanri

Hoshin Kanri Terminology Improvement Targets: How the sector intends to achieve the outcomes – the process improvements or medium-term results that are needed to achieve the long-term outcomes Achieving the improvement target should get the sector closer to achieving the larger outcome See Definitions and Examples handout Introduction to Hoshin Kanri

Hoshin Kanri Terminology Hoshins: Short-term (1 year) area of strategic focus for the sector This will be the highest priority “must do, can’t fail” work for the sector The sector’s resources are aligned to, and prioritized for, hoshin work The key mantra for this work is “focus and finish” See Definitions and Examples handout Introduction to Hoshin Kanri

Hoshin Kanri Terminology Actions: Short-term work that helps to “move the dial” on hoshins, improvement targets, and outcomes Typically found in the detailed implementation plans for the hoshins and outcomes See Definitions and Examples handout Introduction to Hoshin Kanri

X-Matrix Drafted during Strategy Development Hoshin Kanri Tools X-Matrix Drafted during Strategy Development Shown is an example of a Level 1 matrix. The Level 1 matrix is drafted during Strategy Development, refined during Catchball, and finalized at Plan Finalization. The X-matrix (for policy deployment) – is a systematic method that frames—and then links—the activities of people across and throughout the sector with the strategic goals of the sector. The matrix is the premier tool for creating sector-wide policy-action alignment. The matrix is not a communications tool—it is a planning tool. “The X-matrix is about alignment—to design and implement a pre-determined framework of effort and resolve that links outcomes, plans, tasks, activities, resources and measures…of each organizational function with a prescribed set of strategic goals…in order for the system to achieve high-level synergies and corresponding breakthroughs in specific functions.” (Dr. Gwendolyn Galsworth) Introduction to Hoshin Kanri

Parts of a Level 1 Matrix Strategic Intent Strategic Intent: A high-level statement of what the sector wants to accomplish. Introduction to Hoshin Kanri

Parts of a Level 1 Matrix Enduring Strategies Enduring Strategies: Broad areas of strategic focus. Defines “What’s in” and “What’s out” The “Big How” Typically 3-5 years, but may be longer Introduction to Hoshin Kanri

Parts of a Level 1 Matrix Outcomes Outcomes: Longer-term results (typically 3-5 years) The change the sector wants to see in the future The “what” that is accomplished through the improvement targets and hoshins States what the desired improvement/change is, by when it will be achieved, and a measurement of how much will be improved (what, by when, by how much). Introduction to Hoshin Kanri

Parts of a Level 1 Matrix Improvement Targets Improvement Targets: How the sector intends to achieve the outcomes – the process improvements or medium-term results that are needed to achieve the long-term outcomes Achieving the improvement target should get the sector closer to achieving the larger outcome Introduction to Hoshin Kanri

Parts of a Level 1 Matrix Hoshins Hoshins: Short-term (1 year) area of strategic focus for the sector This will be the highest priority “must do, can’t fail” work for the sector The sector’s resources are aligned to, and prioritized for, hoshin work The key mantra for this work is “focus and finish” Introduction to Hoshin Kanri

A3s (Project Plans): “A one-page storyboard” Hoshin Kanri Tools A3s (Project Plans): “A one-page storyboard” Drafted during Strategic Development An A3 tells the persuasive story of the why and what of the plan. Is high level – simplicity on the far side of complexity (clarity and simplicity are hard work!!). Is developed during Strategy Development, strengthened through Catchball, and finalized at Plan Finalization. One A3 is developed for each hoshin and outcome. Introduction to Hoshin Kanri

Example: Sam, the Par Golfer A3 (Project Plan) Completed A3. Introduction to Hoshin Kanri

Catchball Is a series of formal discussions between leaders and their teams during which they “throw and catch” information, data, and analysis back and forth between each other with regard to the draft strategic plan and outcome and hoshin A3s. Introduction to Hoshin Kanri

Catchball Is about dialogue, engagement, and garnering the insights of employees who are directly responsible for implementing strategic and operational work. This is in alignment with Lean thinking that those who do the work are the experts who know the work best. Introduction to Hoshin Kanri

Catchball Within the context of a sector plan, Catchball also involves each organization (the school divisions and ministry) within the sector creating its own Level 2 plan (with a Level 2 matrix) and accompanying Level 2 A3s. Introduction to Hoshin Kanri

Catchball These Level 2 A3s describe the work that each organization will undertake to do its part in achieving the hoshins and outcomes of the sector plan. Each organization also includes any local hoshins (priorities) in its Level 2 plan for which it has sufficient resources. These local hoshins, that is, additional strategic work, are added to the organization’s Level 2 matrix. Introduction to Hoshin Kanri

Catchball Confirms the practicality of the Level 1 plan Actively solicits feedback and ideas from those responsible for implementing the plan Greatly improves wide-spread understanding of what needs to be done, why, and how Greatly improves ownership and buy-in from the people responsible for results. Introduction to Hoshin Kanri

Plan Finalization All Catchball feedback is “rolled up” and provided back to the leadership at the two-day Plan Finalization event. The Provincial Leadership Team (School Division Directors and Ministry Senior Leadership) use the feedback to improve the sector strategic plan and A3s. Introduction to Hoshin Kanri

Plan Approval The finalized sector strategic plan and its A3s are provided to the province’s School Boards and the Minister of Education for approval and the Cabinet for information. The Education Sector Strategic Plan is released on Budget Day. Introduction to Hoshin Kanri

Plan Deployment Detailed implementation plans are crafted and processes around metrics are established by hoshin and outcome owners, expert advisors, and teams, in consultation with the Provincial Leadership Team. Organizations determine local work plans to support the strategic work. Introduction to Hoshin Kanri

Regular Progress Review Select measures identified on the A3s will be displayed on the provincial visibility wall and reviewed by the Provincial Leadership Team quarterly. Local visibility walls allow organizations to review progress monthly, or more often, to course correct as required. Example: Gantt Chart Sample Gantt chart; such charts will be used on visibility walls (data walls) that will be established. There will be a Level 1 (provincial ) visibility wall, created by and posted in the ministry, as well as Level 2 visibility walls within school divisions and in the ministry so that leadership and staff can monitor progress in achieving improvement targets and outcomes. Introduction to Hoshin Kanri

Regular Progress Review A variety of chart templates will be available for the school divisions and ministry to use. Example: Bar Chart Introduction to Hoshin Kanri

Regular Progress Review Corrective Action Plans (CAPs) Created to move an off-target (“yellow” or “red”) project back on-target (“green”) Introduction to Hoshin Kanri

Visibility Wall A “mature” visibility wall—an example from the Health System. Introduction to Hoshin Kanri

Visibility Wall The early provincial visibility wall in the Ministry of Health. Introduction to Hoshin Kanri

Wall Walk Example of a wall walk. Wall walks are structured reviews of progress towards achieving the hoshins, improvement targets, and outcomes. They consist of a series of timed question and answer segments that focus on the data displayed on the visibility wall. Primary owners (or secondary owners, when the primary owner is unavailable) report progress in terms of levels of concern: no concern, some concern, or concern. The wall provides an opportunity for dialogue among the provincial leaders which focuses on how to address areas of concern, share successes, and support one another. Introduction to Hoshin Kanri

Wall Walk Ministry wall walk with ADM Greg Miller, and Executive Directors Tim Caleval and Lynn Allan, referring to data related to the Saskatchewan Child and Family Agenda. Introduction to Hoshin Kanri

Hoshin Kanri: Direction + Execution Questions? Hoshin Kanri: Direction + Execution http://www.flickr.com/people/eileensanda/ Introduction to Hoshin Kanri

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