Copyright © Process Management International Ltd. All Rights Reserved. 0 Copyright © Process Management International Ltd. All Rights Reserved. Hoshin Kanri Tips for Successful Implementation

Copyright © Process Management International Ltd. All Rights Reserved. 1 This process is called Hoshin Kanri Setting the Scene In a competitive world with a increasingly globalised market, organisations must evolve and adapt to survive. SETTING THE SCENE Surely an ability to do the following would give us the edge we need? Understand the system your organisation is a part of Understand what your organisation aims to achieve Communicate the objectives to all staff Harness the knowledge of the staff to derive the best tactics Align your actions with your strategic objectives Execute the plan Learn from the process Adapt and continue (PDSA) But how? Is there a process we can follow to help us get ahead?

Copyright © Process Management International Ltd. All Rights Reserved. 2 The core of the Hoshin Kanri process involves the translation of a robust strategic plan into a set of clear objectives. These objectives are then realised through the execution of precisely defined tactical actions and projects. About Hoshin Kanri The key value of the process is twofold: 1.The clear and transparent alignment between activity and goal and the management rigour associated with the structured monitoring process - a vital part of Hoshin Kanri. 2.The ownership and alignment generated at each level of the organisation as tactical plans which are created locally 1. Establish Organisational Strategic Vision 2. Develop 3 – 5 year Strategic Plan 3. Develop Annual Objectives 4. Deploy to Departments to develop Plans including Targets and Resources 5. Implementation 6. Regular Progress Reviews Monthly & Quarterly 7. Annual Review PHASE 1: Strategic Planning PHASE 2: Heart of Hoshin Planning Process

Copyright © Process Management International Ltd. All Rights Reserved. 3 Operational Steps 3 A simple, stepwise process Which can be complex to introduce because of existing systems, behaviours and methods of working So it needs strong leadership and clear communication to ensure success Identify cross functional projects and actions to deliver Year 1 objectives Develop clear Strategic Objectives Develop Year 1 Strategic Objectives Cascade to Units/Departments and identify their supporting objectives Identify potential projects and actions in departments to deliver Year 1 objectives Prioritise and select projects Analyse cross-functional resource demand and constraints Develop the delivery plan Strategy Deployment Process

Copyright © Process Management International Ltd. All Rights Reserved. 4 There is a strategic focus on the vital few areas the business needs to improve Leadership is evident at all levels Employees are involved in setting targets, identifying improvement initiatives and progress reviews Every employee understands the goals of the organization and has clear view of their role and objectives Resources, objectives and metrics are aligned to the organisation’s goals at all levels There are clear accountabilities It supports and promotes consideration of the organisation as a system rather than as a set of silos, i.e. System Thinking. Benefits of Hoshin Kanri

Copyright © Process Management International Ltd. All Rights Reserved. 5 1.Focus on the critical few 2.Simplify as much as possible 3.Identify champions at all levels of the organisation 4.Communicate it to death! 5.Commit to the process and see it through 6.Be rigorous in monitoring, corrective action assignation and tracking 7.Be persistent…it will be difficult for the first months 8.Adopt PDSA (Plan Do Study Act) thinking: be prepared to modify the strategy if it’s not working and adapt or abandon projects that are not delivering 9.Be aware that many people may not understand what is going on and plan how to change that 10.Learn from the process and adjust it. 10 TIPS FOR SUCCESS

Copyright © Process Management International Ltd. All Rights Reserved. 6 Join our 1-day Master Class to learn more about the Hoshin Kanri process and the methodologies and disciplines required Click here for schedule details Learn more about Hoshin Kanri Call: Any Questions? Please get in contact Learn from Director Consultant, Mick Lyons, who has many years of experience implementing this approach. Discover the common pitfalls and the methods you can use to overcome the challenges and issues you may face along the way!

Copyright © Process Management International Ltd. All Rights Reserved. 7 This presentation has been designed and developed by Process Management International Ltd. The statements made herein do not constitute an offer and are expressed in good faith. Copyright © Process Management International Ltd. All rights reserved. No part of this presentation may be copied or reproduced in any form or by any means without written permission from: Process Management International Ltd ● Villiers Court ● Meriden Business Park ● Birmingham Road ● Meriden CV5 9RN United Kingdom Web site: