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Hoshin Kanri 1694845582
Hoshin Kanri 1694845582
Hoshin Kanri
The top five articles on the topic from the Lean Post
showcase the power of this strategy deployment practice.
Table of Contents
The Cascade of Hoshin Page 3
by Jim Womack
A recent gemba walk at a Toyota plant reveals how the company operationalizes
its hoshin plan — in this case, to win the auto industry’s transition to Mobility 2.0,
what Toyota President Akio Toyoda calls a “once-in-a-century disruption.”
by Mark Reich
To build the culture and develop the complementary systems that connect
your company’s strategic and operational plans, consider how they must work
together, like the human body’s skeletal (hoshin) and muscular (continuous
improvement) systems.
A veteran coach shares a few intangible truths you’ll need to know to execute an
organizational transformation using hoshin kanri.
The Cascade of Hoshin planning at Toyota, which has developed the management
mechanisms necessary to translate high-level hoshin plans
A recent gemba walk at a Toyota plant reveals how the company into sustainable results on the front lines. Let me describe
operationalizes its hoshin plan — in this case, to win the auto what I’ve seen.
industry’s transition to Mobility 2.0, what Toyota President
Akio Toyoda calls a “once-in-a-century disruption.” “Toyota has developed the
By James Womack
management mechanisms
necessary to translate
For many years, I have watched organizations attempt to
implement hoshin planning (strategy deployment, if you high-level hoshin plans to
prefer). First, they pick a few big issues important to the sustainable results on the
long-term success of the organization — a leap in quality,
a dramatic drop in costs, a reduction in lead time to better
front lines.”
meet customer demand, a fundamental rethink of the type
Toyota President Akio Toyoda and the senior leadership
of value the organization creates for customers. And then,
team have decided that the simultaneous emergence of
they try to deploy initiatives to address these issues down
autonomy, alternative energy, shared assets, and hyper-
through the levels of the organization. But even when they
connectivity is collectively creating a “once-in-a-century
limit the initiatives to a small, manageable number, they
disruption” in the auto industry as it transitions to a mobility
rarely succeed.
industry, commonly termed Mobility 2.0. (Whether this
What starts with the loud voice of the CEO at the is true or not is a separate question, although every other
top becomes a faint whisper by the time it reaches the legacy car company has reached the same conclusion. My
organization’s front lines, where value of whatever point here is about the successful deployment of hoshin, not
description is created and where improvement becomes the validity of the hoshin vision.) And recently, Toyota has
real. At this level, managers are mostly absorbed with daily had to add an extra dimension to the challenge: uncertainty
chaos, with no workable method for addressing hoshin about global trading rules, which might require substantial
objectives even when they are clearly stated and prioritized relocation of existing production, with loss of revenue and
for that level. increased costs.
challenge (plus the changing rules of trade) is impossible a companion operational hoshin of “create the financial
to know, Toyota is responding by extending its principles resources to support the respond-to-disruption hoshin.”
of concurrent engineering with set-based design from This cascading of the strategic hoshin to an operational
individual vehicles to whole mobility systems. For example, hoshin at the value-creating front lines provides the critical
it is experimenting with: means to a vital strategic end — that’s hoshin done right.
• Level 4 autonomy, where vehicles drive themselves, and
Guardian, a system that leaves driving to the driver but “So the primary strategic
prevents the driver from making dangerous mistakes. hoshin of “address the once-
• Electric vehicles with pioneering solid-state batteries in-a-century-disruption of the
and hydrogen fuel cell vehicles.
automotive industry” needs
• Partnerships with ride-hailing firms and logistics firms
like Uber and Amazon and experiments with Toyota a companion operational
fleets of shared, autonomous vehicles (to be showcased hoshin of “create the financial
at the 2020 Tokyo Olympics).
resources to support the
• Toyota Connected for connectivity between vehicles,
passengers, and their environment and partnerships
respond-to-disruption hoshin.”
with other connectivity providers.
The specific means were recently visible to me on the shop
And, perhaps most interesting, they’ve initiated a major floor at Toyota Kyushu’s Miyata assembly plant on the
push to apply Toyota Production System (TPS) principles southern Japanese island of Kyushu. (This plant assembles
to the development of the enormous software packages Lexus vehicles.) The hoshin objective that came down to
needed for each of these innovations. the plant for this year is a target to substantially reduce costs
Many of these experiments may fail. And, even if a number while accommodating a richer model mix while reducing
of the concepts prove worthy of widespread adoption, takt time to meet increased demand (with substantially
Toyota must expend massive sums now for lengthy no capex) while sustaining assembly quality at the current
experiments to determine which work best while defending level, which is reported by J.D. Power and Associates to be
its current employees, always a core Toyota principle. the highest in the world.
So the primary strategic hoshin of “address the once-in- To be clear: This objective means increasing the production
a-century-disruption of the automotive industry” needs rate with no capital spending while sustaining world-best
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How Hoshin Kanri But, what a satisfying week for all. Why do I say this?
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army of improvers. Refined processes defined our “always department. A simple protocol of four questions, when
actions,” increasing the likelihood of follow-through. executed well, is exceptionally powerful:
Refined performance management goals tied together 1. What is working well?
tools for self-reflection and criteria for feedback helping
2. What barriers are getting in your way; do you have the
people succeed. Hardwiring grew as we removed barriers
resources needed to do your job well?
and reduced complexity. Clarity with support was key.
When performance varies, we seek to learn from bright 3. What ideas do you have for improvement?
spots and refine core processes. Resources (accelerators) 4. Who has been particularly helpful to you that I can
are better leveraged based on feedback, performance data, thank on your behalf?
and process refinement, ultimately reducing costs and
Leaders rounded with their team members but were not
preventing exhaustion in people.
evaluative. Rounding is about listening deeply to serve
people better, connect beyond their jobs, celebrate what is
working well, and remove barriers.
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How the Hoshin Kanri kanri (strategy deployment) process, combined with
effective coaching, offers companies a way to confront and
Process Coupled with overcome this challenge; it can be the catalyst for achieving
sustainable organizational transformation.
Coaching Drives Lean
Understand the Context
Transformation, Part 1 Before we delve into the synergies generated by combining
A veteran coach shares a few intangible truths you’ll need to know strategy deployment and executive coaching, context
to execute an organizational transformation using hoshin kanri. is required. The honor of becoming a coach to senior
leaders (or anyone else, as a matter of fact) is earned with
By Laura Mottola humility and hard work, regardless of where you sit inside
or outside the organization. First comes the recognition
Organizational transformation is first and foremost a
that we know very little, if nothing at all, and the desire to
process of personal growth by leaders, which requires
learn what we do not know drives us to study intensely and
reflection, self-awareness, and humility. Before expecting
experiment relentlessly to test our hypotheses. Trials will
such a dramatic change at the team or organizational level,
inevitably come with errors, and we must be willing to bear
leaders must deeply reflect on the company’s current state
those scars, not hide them. The courage to venture into
and desired future. This reflection inevitably invokes a
uncharted territory is our ticket to earned respect and the
struggle within every leader, which catalyzes their desire
invitation to coach others through their journey.
for change, activating the pull needed to take the necessary
steps toward that new vision. Now comes the matter of leading an organization through
a lean transformation and understanding senior leadership’s
To enlist the active participation of peers and team
role in steering and participating in a hoshin process.
members, leaders must, above all, gain their trust before
helping them to see uncomfortable truths — to stoke the
Overcome the Fear of Change
very same struggle within each team member so that they,
too, feel the urgent need to change. I am no psychologist — a recovering engineer, at best
— but I have learned, the hard way, indeed, that without
None of this is easy. Getting to the point where the need intrinsic motivation, there is no catalyst for change, no
for change is accepted and prompts a coordinated response way to overcome our inherent resistance to change. This
(aka “change management”) has been and continues to resistance doesn’t arise from a fear of change itself; it stems
be a stumbling block in countless situations. The hoshin from our fear of the unknown of what lies ahead. Even the
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worst situation ccan become comfortable compared to an transformation. As significantly, they understood that
alternative that may be worse. it is their responsibility to guide and support their team
members in their personal growth.
The process of hoshin kanri demystifies such uncertainty
by providing a structured way to walk the path while it is Not all leaders have experience or education about how to
being co-created. The approach brings everyone together coach team members. Most likely, they are accustomed to
to design (plan), experiment (do), adjust (check), and act the telling their direct reports what to do, sometimes instructing
way forward using the plan, do, check, act (PDCA) process. how. The hoshin kanri process provides an opportunity to
jointly develop a strategy-to-execution roadmap, aligning
It can be an exciting and frightening experience at once,
and adjusting along the way, even when it means “we’ll
and I cannot downplay the fact that hoshin kanri — or
figure this out together.”
any process to effect transformational change — is an
emotionally charged process of co-creation, fraught with Inevitably, most people I have coached struggled with the
obstacles and challenges. Hence, executive coaching is vital mechanics of the practice routine (the Kata) and the time
to support leaders who are engaged in facilitating hoshin and effort it takes to master this new skill. Their desire to
kanri. These leaders need guidance as they move through attain significant sustainable change is constantly strained
this challenging process to help them effectively coach by the need to show tangible short-term results. The reflex
their team members and, in many cases, teach them how to use tactics that served them well in the past is hard to
to coach others. control, let alone overcome.
Develop People
Coaching within the hoshin process supports the leader
in conducting a hoshin and coaching others in the
process. In my journey as a lean practitioner, I have had
the privilege of supporting executives who are leading a
cultural transformation in their respective organizations
using lean thinking as a platform for change. Fortunately,
they all recognized that developing people is the key to
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Lean Enterprise Institute Understanding Hoshin Kanri
How the Hoshin Kanri and seek a different way to look at the company and shape
its future in a changing environment, hoshin kanri offers a
Process Coupled with collaborative way to think deeply about the situation, build
on common ground, and forge a path forward.
Coaching Drives Lean
Make it Personal through Practice
Transformation, Part 2 Lean transformation of an enterprise requires that all
Discover how a coach can help leaders execute a successful people, at all levels, learn to solve problems collaboratively.
organizational transformation using the hoshin kanri process. Executive teams engaged in a hoshin kanri process lead
the organization by example, demonstrating the process
By Laura Mottola required to build capability. We know that in learning a
new skill, there is no substitute for practice. When the team
While hoshin kanri is a process that provides a
members see their leaders “walking the talk,” they become
structured way to implement change in an organization,
more willing to follow the process. Through this consistent
coaching strengthens that process by helping leaders
practice, both leaders and team members build intrinsic
and team members adopt the mindset and practices that
motivation. Coaching reinforces this need to practice the
ensure success.
process, which, in turn, makes the process personal and
Seemingly easy to understand but challenging to achieve, ensures it inspires a move to action from within.
here are five areas where a coach will help leaders execute a
successful organizational transformation. “Lean transformation of
Learn from, Don’t Denigrate, the Past an enterprise requires that
There are many ways to tackle a strategic planning process all people, at all levels,
— each is valid for a specific business context. Indeed, the learn to solve problems
approach that was used in the past had its time and purpose.
We must learn from that previous process and build on it, collaboratively.”
not discredit it. The hoshin kanri process provides a way
to use the knowledge gained from earlier attempts as a Build Trust through Facts
platform upon which to build the next iteration. When we Building trust requires the courage to have honest, open
are dissatisfied with the current state (for whatever reason) communications. Generating a certain level of discomfort
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is necessary to shift the conversation to the crux of the how much you need to learn and commit to doing the
matter, exposing sore points and eliciting uneasiness with hard work and experimentation.
the status quo without assigning blame. Relying on the • Recognize the fear of change for what it is, the fear of
cold–heartedness of facts to make problems visible allows the unknown, and how to face it and help others do so,
for an honest, dispassionate analysis of the situation, which, as well.
in turn, enables teams to reach a consensus.
• Trust that enhancing your team members’ skills
Balance Dissatisfaction with Inspiration and abilities is the key to achieving organizational
success, and learn how to facilitate their personal and
The leader facilitating the hoshin kanri process is continually
professional growth.
walking a thin line between creating dissatisfaction with the
current situation and offering a healthy dose of inspiration • Realize the fundamental differences between the
with a vision of the future. Facilitators of every step in the process that led to the current state and how to leverage
process must enable the team members to passionately that knowledge to achieve the desired future state.
engage so it doesn’t become stale, lifeless. They must • Understand that learning by doing is essential to build
remind the group to “go hard on the system, but soft deep understanding through shared experience.
on people.” • Appreciate how focusing on facts builds trust and learn
A leader’s role is to support the team in balancing analysis, how to shift the conversation back to the facts, reflect,
discovery, ideation, and consensus-building. The coach’s and share back with the team.
role is to support the executive to improve self-awareness • Acknowledge the difficulties of staying the course,
and reflection. learn how to embrace the process, and commit to
self-development. n
Deploy Strategy, Coach at All Levels
Hoshin kanri is a strategy deployment process that links the Coaching
company True North with execution plans at all levels of the
Helping others develop the problem-solving
organization. Naturally, there is a need for coaching lower
capability required for implementing lean tools
levels through the functional deployment of the corporate
and principles and building a company culture
hoshin in succeeding iterations of collaborative discovery.
of continuous performance improvement.
By extending coaching throughout the organization,
the experience and knowledge gained during the hoshin In lean management, the coach avoids telling
process are passed on to others via learning by doing. A coachees what to do because it robs them of
process brings the hoshin to life and makes it relevant and the opportunity to think the problem through
appealing to all people involved. Clarity of purpose and for themselves; it deprives them of ownership
what needs to happen is achieved in cycles of refinement. of the problem; and the coach realizes he or she
seldom knows as much about the situation as
Coach for Personal Growth the problem owner.
If transformation comes through personal growth, then
The coach’s role is to use open questioning to
the coaching that supports hoshin kanri should focus on
help the coachee become more aware of what
helping leaders become teachers and coaches who are
he or she knows and needs to know. The coach
committed to both self-development and the development
prompts the person being coached to consider
of others. Among the most important coaching points are
if his or her ideas and impressions are based on
the following:
fact.
• Understand the importance of humility and hard work,
from the Lean Lexicon 5th Edition
and how to be comfortable realizing and admitting
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Lean Enterprise Institute Understanding Hoshin Kanri
Faculty Highlight
James (Jim) Womack, PhD
Founder and Senior Advisor, Lean Enterprise Institute
Widely considered the father of the lean movement, Jim has been talking and
publishing about creating value through continuous innovation around deep
customer understanding for many years. He is the coauthor of The Machine
That Changed the World (Macmillan/Rawson Associates, 1990), Lean Thinking
(Simon & Schuster, 1996), Lean Solutions (Simon & Schuster, 2005), and Seeing
The Whole Value Stream (Lean Enterprise Institute, 2011). Other articles include:
“From Lean Production to the Lean Enterprise” (Harvard Business Review, March-
April, 1994), “Beyond Toyota: How to Root Out Waste and Pursue Perfection”
(Harvard Business Review, September-October, 1996), “Lean Consumption”
(Harvard Business Review, March-April, 2005).
Laura Mottola
President and CEO of Flow Partners Inc.
A seasoned professional mining engineer and business leader with more than
20 years of global experience in mining, Laura is recognized globally as a leader
in Lean Mining®, Mining Automation, Technology, and Innovation in the natural
resources sector. She was named one of the 100 most inspirational women in
mining by Women in Mining UK. Dedicated to Lean Thinking, Methodology, Lean
Mining®, Innovation, development integration of concepts from other industries,
and multidisciplinary approach strategies, she is a co-founder of the Lean
Institute Canada and the founder of the Lean Mining® Institute.
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Lean Enterprise Institute Understanding Hoshin Kanri
Faculty Highlight
Mark Reich
Senior Coach, Lean Enterprise Institute
With 23 years of experience at Toyota, Mark brings a practitioner point-of-view
and a roll-up-your-sleeves approach to his coaching, working with executives
at their gemba. Before joining LEI, he was general manager of the Toyota
Production System Support Center. While there, he directly implemented
the Toyota Production System or managed its implementation in various
industries, including automotive, food, furniture, healthcare, and nonprofits,
among others. Mark started his career at Toyota, including seven as assistant
general manager of the corporate strategy division. He managed and
implemented Toyota’s North American strategic (hoshin) process,
designed jointly with Toyota’s Japan headquarters.
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