“Sometimes no problem is a sign of a different problem” by Mark Rosenthal.
X Matrix Hoshin Kanri method is amid the potent tools in the Lean weaponry for effective strategic management. Hoshin Kanri is a management method that appeared in Japan after World War 2. As it was extremely effective and swiftly adopted by companies in both Japan & the United States, including HP, Toyota, and Xerox. Hoshin Kanri is a Japanese word. Hoshin Kanri means Strategic Planning, Policy Deployment, Hoshin Planning, etc.
Hoshin means Compass, Kanri means Management.
Hoshin Kanri means you need direction as a way to have powerful management.
If implemented correctly, it assists between strategy and execution by creating alignment and focus in VUCA. Hoshin Kanri strategy marks the requirement to act on and attain planned goals. It implies that you need to know where you are going, and a map to get there. It is used for taking strategic goals & progressively communicating them down through the organization, then back up the organization, ultimately put into action by employees with a shared commitment.
In today’s dynamic conditions a tight control of both planning and execution is essential to both survive and thrive. It is in times like these that your whole organization needs to pull together, committed to a method, moving in the same direction.
Management requires to avoid choosing too many key objectives to stay focused on what is strategically important. By working on fewer objectives, the organization can achieve them quicker, thus leading to greater desire being achieved in the long run, which can appear counterintuitive at first.
Hoshin Kanri Method Helps you to:
The Hoshin Kanri method can be outlined with a 7-step process also known as the Hoshin Planning. Hoshin Kanri x matrix involves both planning & execution, in an iterative 7-step process.
Hoshin Kanri planning process makes sure that the strategy of a company gets executed across the hierarchy.
The 1-4 steps involve planning through a process of catch ball; the last 3 involve execution and review.
This is generally done at the executive level and focuses on identifying the current status of the organization w.r.t your vision, planning process, and execution tactics. It is wherein you need the enterprise to be and what on the way the appearance like for business transformation.
These are notable enhancements that will need the whole organization to engage in the process over an established time frame (3-5 years), to complete. Here, you ought to ask the question: “Which three Breakthrough Objectives do you require to attain in the next 3 years to help achieve that vision?”
The Hoshin Kanri template excel objective set during step two generates a road map for success, allowing management to identify projects & strategies to meet them. Choosing what not to do at this stage is critical to success. Each objective should have the following elements to move on:
It is essential even at this stage that a named individual is listed (generally a member of the leadership team). A key precept of Hoshin Kanri x Matrix is that accountability should be with an individual. That person needs to be chosen because they are the best person for the job, not because of their role, seniority, or place in the organizational structure.
The leadership team, together with the senior management, breaks down the objectives into annual goals. Annual objectives are ones that you will need to finish in the present year to attain the complete breakthrough objective you are striving for. You can ask like: “For every Breakthrough goal, what Annual Objectives you want to attain within the present year, so you can make sure Breakthrough achievement?”
This is generally the point where the Hoshin Kanri Matrix is instilled to help begin the strategy & objective deployment. Focus, accountability, and measurement are again the key elements to be agreed upon.
Once the annual objectives are discovered they need to be deployed over all the levels of the organization. This is the lean transformation process of goal setting which starts at the top and is spread to each employee. Catchball is the communication process where several parties are involved in an ongoing exchange of information about what it will take to attain a specific objective. It’s both a top-down & bottom-up approach that allows for multiple views to collaborate towards the best approach to achieve an objective.
Once you have developed your action plan and how these objectives will be met through “catch billing,” you’ve got the manner to install your annual objectives confidently.
With this step, the real execution of Hoshin Kanri starts. This step goes equally with the next two. Unlike other approaches, Hoshin Kanri doesn’t assume that because you plan, everything will go smoothly. This is in which having the plan in the region with well-understood goals and responsible owners makes a difference.
Throughout the review process, you come across objectives that were missed or not met. Hoshin Kanri applies the Plan-Do-Check-Act (PDCA) cycle. Any deviance from the plan needs instant action. Root causes need to be evaluated and counteractions developed to restore the progress. At every quarter, reviews tackle a distinct impression. PDCA (plan-do-check-act) becomes very critical in this phase of the Hoshin process.
The monthly reviews make sure that the plan is being finished in line with the plan.
At the end of the year, there is an annual review, which confirms the result that has been achieved. This is the time to reflect on what did & didn’t work throughout the process. It’s a time to learn and teach one another what you’ve learned. Annually, Hoshin Kanri template excel needs a review of the year as well as a review of the Breakthrough Objectives, and adjustments are made before the process begins again.
The Hoshin Kanri planning is not only a top-down approach. It is a combined effort between a manager & a subordinate who have to mutually agree on the optimal set of goals. If management commands people into attaining certain goals, without gathering feedback first, they risk demotivation and costly errors.
Hoshin Kanri planning has built-in continuous improvement mechanisms, which are a key element to making the method successful. These are the Catchball & PDCA tools.
Catchball is a simple but exceptionally valuable practice of the Hoshin Kanri planning process in Lean. Catchball has several benefits:
Use Hoshin Kanri if:
The only disadvantage to Hoshin Kanri Planning is the fact that no one can forecast what would happen in a year. This annual goal setting has been broadly rejected by the agile community and this is no wonder.
While the big goals & vision must exist, for an organization to be successful, there needs to be a system in place that adapts it to the dynamic world of today. One of the feasible answers is Portfolio Kanban.
The most famous way of implementing Hoshin Kanri is applying the X matrix. Now, you will learn what is the Hoshin Kanri X matrix, how to read it & how to get the most of it.
The X-Matrix is Hoshin Kanri strong visualization aid that is used to manage detailed strategic planning. The purpose of the Hoshin Kanri X Matrix Template is to develop & implement plans that are both strategic, tactical, and coordinated across people across the organization. The Hoshin Kanri X matrix template is a single-page document that includes strategies, goals, strategic projects, and owners. A typical X-Matrix is traditionally stored in an Excel file or printed on an A3 piece of paper.
In Lean transformation, the purpose of making use of the X matrix is to align the long-time period desires with strategic initiatives, identify the most essential activities along the way & list the metrics that you need to improve.
A typical X matrix would normally look like this:
The name comes from the X that divides the matrix into 4 key quadrants:
To people who have in no way seen a Hoshin Kanri X-Matrix before, it could appear complex. It moves South and clockwise: from your vision to your 3-year objectives, to your 1- year objectives, to your next quarter’s priorities or goals. It has containers for all of the factors important to plot your strategy, including, on the East face, how the priorities could be measured, and who could be accountable for their achievement.
Hoshin means a compass that points to True North.
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Developing the Hoshin Kanri X-Matrix needs both lateral & vertical thinking.
Generally, the leader of your organization is responsible for setting up the matrix or any manager who is implementing it on a team level.
When filling the Hoshin Kanri X matrix template, you need to list the essential parts of the diagram closest to the center.
Hoshin Kanri is an important Lean transformation method for ensuring that the strategy of a company gets executed across the hierarchy. If Hoshin Kanri X Matrix is implemented efficiently, it provides a vision and a list of breakthrough goals, creates a flow of complementary goals, which ensures alignment. A fundamental part of Hoshin Kanri is chasing continuous improvement using Catchball & PDCA.