1. TRANSFORMING CAPABILITY SUPPORT MATERIALS LEADING VISION CREATION Hoshin Kanri Introduction Hoshin Kanri is a method of strategic quality management. Developed in Japan in the 1960’s it brings together the concepts of total quality management and business strategy. Consensus and self assessment is used to review progress against identified areas for change and improvement. Hoshin Kanri is not a strategic planning tool but a mechanism for execution and a system for deploying an existing strategic plan across the whole of the organisation (Tennant and Roberts, 2003; Tanner, 2005). A fundamental aspect of Hoshin Kanri is a consensus building process termed ‘catch ball’. This is an iterative process of discussing and debating plans and targets at each level. This process requires continuous communication at all levels in the organisation to ensure the development of appropriate targets and means of achievement as well as their deployment (Tanner, 2005). Performance measurement is based on self assessment, against identified targets and plans. Catch Ball process (Tanner, 2005) A key element is the deployment of goals from the vision and strategic objectives through the daily work processes people engage with. This ensures that all activities ultimately contribute to the achievement of the vital few goals and the transformation of the vision into reality. The catch ball process also ensures that the vision, vital few goals and relating processes are understood throughout all levels of the organisation. This helps to overcome any resistance due to uncertainty or lack of clarity and helps to allocate ownership of actions as people can understand how their process, their activities link and therefore contribute to achieving strategic vision and the desired business performance (Tennant and Roberts, 2003; Tanner, 2005). Goal and Means deployment (Tennant and Roberts, 2003) Further Information Tennant, C. and Roberts, P., (2003), ‘Managing Knowledge through Hoshin Kanri’, Industry and Higher Education, pp. 59-66 Tanner, S., (2005), ‘Performance Improvement in an SME through implementation of Strategic Quality Management’, MSc Thesis, Warwick Manufacturing Group, University of Warwick.

2. TRANSFORMING CAPABILITY SUPPORT MATERIALS LEADING VISION CREATION Instructions Key steps The six step process below is based on an adaptation of Hoshin Kanri. Hoshin Planning System (Tennant and Roberts, 2003) The template below may be used to document Stages 1-4 and to enable communication of the vision (and the plan which will enable it to be achieved) to the rest of the organisation. Completion of stages 5 & 6 will enable progress towards the vision to be assessed on a regular basis, and plans to be modified as appropriate. Hoshin Kanri StageInterpretation 1Five year visionFormulate the vision and vital few goals 2Annual planDefine what is necessary and sufficient to realise vision 3DeploymentAgree optimum targets and means for achievement 4ImplementationIdentify the necessary tasks to achieve the means 5Monthly reviewTeams measure results by self-assessment 6Annual reviewConfirm five year vision, vital few goals and annual plan

3. TRANSFORMING CAPABILITY SUPPORT MATERIALS LEADING VISION CREATION Five Year Vision What is the 5-Year Vision? What are the key goals? Annual Plan What actions are necessary over the next 5 years to realise the vision? Deployment What are the optimum targets? By what means will the targets be achieved? Implementation What tasks are necessary to achieve the means? Hoshin Kanri