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Hoshin Kanri. Strategic Planning Process. Agenda. Hoshin Kanri Defined A Brief History Benefits and Key Elements of Hoshin Planning Hoshin Planning Process Hoshin X “Matrix” X “Matrix” Example Summary and Question. Hoshin Kanri Defined.

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hoshin kanri


Strategic Planning Process

  • HoshinKanri Defined
  • A Brief History
  • Benefits and Key Elements of Hoshin Planning
  • Hoshin Planning Process
  • Hoshin X “Matrix”
  • X “Matrix” Example
  • Summary and Question
hoshin kanri defined
HoshinKanri Defined
  • HoshinKanriis a step-by-step planning, implementation and review process.
  • It is a systems approach to the management of change in critical business processes.
  • A proven technique that helps organizations focus efforts and achieve results.
a brief history
A Brief History
  • Hoshinprocess developed in Japan during the 1960s from Quality Management practices in Bridgestone Tire company, Toyota, Nippon, Denso, Komatsu and Matsushita. It was strongly influenced by the Plan-Do-Check-Act (PDCA) of Deming and Management by Objectives of Peter Drucker.
  • The Japanese words hoshinkanrican be generally interpreted as direction (setting).
  • The words nichijokanrican be interpreted as daily (fundamental) management.
  • The blending of these two methods is key to the success of the hoshin process.
why use hoshin kanri
Why use HoshinKanri?
  • To ensure that insight and vision are not forgotten and ignored as soon as planning activities are over.
  • To guarantee planning documents, once finalized, are kept alive and acted on daily.
  • To prevent the daily quota of fire-fighting, unplanned ‘strategic’ meetings, and quarterly bottom-line pressures taking precedence over the really strategic plans
  • To have short-term activities determined and managed by the plans themselves.
  • To ensure a continual process of checking to make sure what is done each day reflects the intentions, the targets and the vision of the company has agreed to pursue.
  • To have both a planning and deployment process to guide and focus the organization.
four key elements of hoshin kanri
Four Key elements of HoshinKanri

Focus on the vital few

(Pareto Principle)

Catch ball – validates understanding

Shows relationship of actions to big picture

Review Cycles – Monthly and Annual Review

hoshin planning process
Hoshin Planning Process


Lean & Other Tools





Self Diagnosis

develop strategic objectives
Develop Strategic Objectives

SWOT Analysis

Strategic Planning is determining those 3-5 years breakthrough objectives that will move the organization towards world class.

Strategy Maps

Balanced Score Card

develop annual objectives
Develop Annual Objectives

Strategic Themes from Strategy maps, Balanced Score cards become the 3-5 year Breakthrough Objectives in the Hoshin Matrix. Use of the Hoshin Matrix for tracking & Management of these objectives is an effective approach.

Strategy Maps

3-5 Year

Breakthrough Objectives

the hoshin planning x matrix

Hoshin X Matrix

The Hoshin Planning X Matrix

X Matrix Labels

3-5 Year Breakthrough


2). Annual Breakthrough


3) Supporting Action/Project


4) Action Measures of Success

Step 3: How? Which Key Supporting Action/Project?

Step 2: How Far? This year?

Step 4: How Much and When? Measures

Step 5: Who?

Resource Deployment





Step 1: What? Breakthrough Thinking

Strategic Plan Owner:


  • The HoshinKanri process has been validated over the last 40 years.
  • This process is applicable to small and large organizations alike.
  • It is an effective alignment tool to translate strategies into actions.