If you have ever picked up and read a Harvard Business Review (HBR) Journal, you will find what academia is proposing as innovative methods to (a) increase market share, (b) grow profitability, (c) refocus management attention, (d) gain “share of purse” with distributors and customers, (e) improve employee morale, and (f) improve quality. Pick up another HBR a couple of years later and you are likely to find a whole new raft of management techniques that should be employed; different and often diametrically opposed to those you read about two years ago. There are management tools that have continued to withstand the test of time, and Management By Objectives (MbO) appears to be one that remains consistent in businesses all over the world. In Japan, Management by Objectives has been adopted and redesigned to focus on the organization’s customer base. Japanese management teams have adopted what is termed Hoshin Kanri (HK), a method of setting strategic direction that was introduced in the 1960s as a derivative of the MBO process. One notable fact regarding HK is that it is today a significant factor in Japan’s ability to usurp markets wherever the organization goes. What is the secret ingredient in HK? What makes HK different is a singular focus on building knowledge of customer needs and then integrating those needs into the organization. The prerequisite to installing HK is a well-functioning Total Quality Management (TQM) program that has been strategically integrated into every activity an organization has that can affect the customer and the customer’s needs for the future. It is vital to note that HK is not as much a method for developing an organization’s strategic plan and it is an execution tool that aids every layer in the company with integrating customer-focused strategic intent into the day-to-day operations. Your assignment is to thoroughly research Hoshin Kanri and answer the following five questions regarding the principles, focuses, integration methodologies, and pitfalls inherent in an effective HK program.
1. There is one guiding intent of Hoshin Planning principles. Research and then explain that principle, primary focus, and how it relates to Deming’s Plan-Do-Study-Act formula. 2. What are the six major elements of the Hoshin Planning System and what does each element require management to accomplish, do, or integrate into the organization? 3. Research and then explain the five phases of Hoshin Planning 4. Explain why Cross Functional Management (CFM) is necessary for any successful implementation of Hoshin Planning and why it is important for management to focus on processes rather than targets. 5. What are the challenges to implementing an effective MBO program using Hoshin Kanri?
