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) ( Policy and strategy deployment based on Hoshin Kanri -

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What Is Strategy?

Strategy is the way an organization seeks to achieve the mission, vision and goals

A set of goals/objectives A method involving people resources and processes .

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(Competitive (CompetitiveAdvantages Advantagesin inthe theInformation InformationAge Age))

! . (Vision & strategies are the key to success in the information age.)

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: ? (Mission ): Why we exist : . Vision : What we want to be in future . )(Drivers . . ...

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)(Definitions )( Key Elements . ) (Key performance Indicators . ) (measures ) ( targets ) (plans

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Barriers to successful execution of strategy

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. Strategy has never been more important- Business Week

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WHAT Hoshin Kanri?

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Historical Background Background Historical Hoshin Kanri was developed in Japan : Bridgestone/Komatsu/JUSE Based on U.S. techniques of Management by Objectives and the PDCA cycle Used to communicate company policy to everyone in the organization Primary benefit is to focus activity on the key things necessary for success. Japanese Deming Prize winners credit Hoshin as a key contributor to success

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Hoshin KanriHo = Shin = Hoshin = Kan = Ri =

Kanri = administration, management, charge of

. Source: Hoshin Handbook by Pete Babich

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WHAT is is Hoshin Hoshin Kanri Kanri? WHAT ? Hoshin Kanri Hoshin is Japanese for a compass, a course, a policy, or a plan. Kanri refers to management control. In English, this is generally referred to as policy deployment. Hoshin Process The company develops a 3 to 5 year plan, and senior executives develop the current years Hoshin objectives. Then the process of catchball occurs. This involves reporting from teams and feedback from management. Development of the Hoshin plan results in the cascading of action plans designed to achieve corporate goals.

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WHAT is is Hoshin Hoshin Kanri Kanri? WHAT ?

"Refers to the process of internalizing policies throughout the company, from the highest to lowest levels" "Policy Deployment calls for everyone to interpret policy in light of his own responsibilities and for everyone to work out criteria to check his success in carrying out the policy"Masaaki Imai Kaizen: The Key to Japan's Competitive Success

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Is Also Referred To As :

Policy Management, Management by Policy, Policy Deployment Hoshin Kanri, Hoshin Planning.

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WHAT is is Hoshin Hoshin Kanri Kanri? WHAT ? Progressive US companies, like Hewlett-Packard and Xerox, have adopted Hoshin as their strategic planning process Almost all Baldrige Award winners use some form of "Hoshin-like" planning process Hoshin is nothing more than a system of forms and rules that encourage employees to analyze situations, create plans for improvement, conduct performance checks, and take appropriate action.

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WHAT Hoshin Hoshin Kanri Kanri? WHAT ? What is Hoshin? System of forms and rules Provides structure to the planning process Encourages Analysis of situations Development of plans for improvements Performance checks Appropriate actions Focuses the companys efforts on critical issues impacting success.

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PDCA PDCA Hoshin Kanri Kanri based based on on PDCA PDCA cycle cycle Hoshin Hoshin is based upon the cycle of Plan-Do-Check-Act (PDCA) This structure assists in sustaining a planning processAct Resolve issues Document Standardize Reflect

Plan Examine present Identify improvements Establish measures/goals

A C

P D

Identify alternate solutions

Check Compare actual to expected Understand root cause Source: Hoshin Handbook by Pete Babich

Do Implement action Conduct training on solution

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WHAT is is Catchball Catchball? WHAT ?The discussion process that takes place before policy is finally decided is known as catch ball . Since the policy ball is thrown back and forth between top and middle managers before a final decision is made. The aim of this process of catch ball is to convert mandatory objectives set by senior managers into employees own self-set targets.PDF created with FinePrint pdfFactory Pro trial version www.pdffactory.com

WHAT is is Catchball Catchball? WHAT ?The divisional draft proposal is then discussed in each department of the division by the department manager, section managers, and ( if necessary ) subsection managers, and each department formulates its own revised policy proposal. This departmental proposal is then discussed and modified in each of the departments sections by the section manager, subsection managers, team leaders, and so on. After the opinions of as many people as possible right down to the front line have been incorporated in this way, the information is fed back up through the hierarchy to top management, and the companys policy for the forthcoming year is finally decided after further discussion and revision as needed. There are good reasons why many companies carry out this process of catch-ball enthusiastically despite the fact that it takes a certain amount of time and effort.

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WHAT is is Catchball Catchball? WHAT ?If catch-ball were no more than a means of implementing top-down policy deployment, it could be accomplished rapidly without much trouble, for example, by inputting top managements policy proposals into computer and using suitable software to break them down. Why do companies expend so much time and effort on catch-ball? It is because the discussion that takes place among the people taking part at the various different levels of organization deepens their understanding of the policies and enables them to think about both the necessity and possibility aspects of the proposed targets. Through this process, companies hope to effect a qualitative change in top-down mandatory targets, turning them into bottom-up voluntary targets. This is an extremely effective way of motivating people to achieve their targets.

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Deploying process process (Hoshin (Hoshin Kanri) Kanri) Deploying

Development Developmentof of 3-5 years Hoshin 3-5 years Hoshin Senior Seniormanagement management develops develops1-year 1-year Hoshin goals Hoshin goals

Review Hoshin Process

Catchball:

Product Productmanagement management develops develops1-year 1-year Hoshin goals Hoshin goals Catchball: Senior Seniormanagement management action actionplans plans Review Reviewby byCEO CEO Product Productmanagement management action actionplans plans Review Reviewby bysenior senior management management

Top management 1-year Hoshin goals, targets, measurements to ensure alignment Product management

Quarterly

Yes No

Problems Problems

Yes

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