Hoshin Kanri

March 21, 2025
« Back to Glossary Index

What is Hoshin Kanri?

Hoshin Kanri is a strategic planning method that helps organizations align their goals, actions, and performance across all levels. Also known as Policy Deployment, it originated in Japan and is widely used in manufacturing and other industries to bridge the gap between long-term strategy and day-to-day operations. The term translates to “direction setting” or “compass management,” reflecting its focus on guiding a company’s efforts toward a shared vision.

This approach encourages all employees to contribute to achieving strategic objectives by connecting individual and team goals with the organization’s overall direction. It promotes a transparent, structured planning process that involves setting breakthrough objectives, deploying them throughout the organization, and using continuous feedback to stay on course.

It encourages participation and regular review, ensuring the organization remains agile and focuses on its most important priorities.

Key Points

  • Aligns long-term strategy with short-term actions across all departments
  • Encourages collaboration and communication at all organizational levels
  • Uses the Plan-Do-Check-Act (PDCA) cycle to monitor progress and make improvements
  • Emphasizes a limited number of key objectives, often called breakthrough goals
  • Requires leadership commitment and staff engagement to succeed

Related Terms

  • The Plan-Do-Check-Act cycle plays a central role in monitoring and adjusting progress in this method.
  • A strategic plan provides the foundation for setting long-term goals that guide the deployment process.
  • Teams use key performance indicators to measure progress toward the breakthrough objectives.
  • The catchball process supports two-way communication by allowing ideas and goals to be shared and refined across levels.
  • Teams can use a balanced scorecard alongside this method to track performance in different areas.

Hoshin Kanri: Example

A Canadian auto parts manufacturer adopts Hoshin Kanri to support its five-year goal of becoming a leader in electric vehicle components. Executives set breakthrough objectives, such as launching a new product line and increasing R&D investment. Department heads work with teams to create supporting plans. Monthly reviews and the catchball process help adjust actions and keep everyone focused. Over time, the company sees improved innovation, alignment, and productivity.

Hoshin Kanri: Best Practices

  • Begin by creating a clear and compelling vision, then translate it into measurable objectives.
  • Limit the number of strategic goals to focus effort and resources effectively.
  • Engage employees early and refine plans using feedback loops like the catchball process.
  • Review progress regularly through the PDCA cycle and make data-driven adjustments.
  • Provide training and leadership support to ensure consistent understanding and execution.

Additional Resource

Implementing Hoshin Kanri

Preparing for a PMI certification?

« Back to Glossary Index