Strategy creation by means of Hoshin Kanri methodology

Abstract

In this article is presented the Hoshin Kanri as a strategic planning methodology. Utilization of Hoshin Kanri ensures strategy alignment across all organizational levels by translating high-level goals into tasks utilized in all levels. Originating in Japan and adopted by Toyota, it emphasizes dialogue through a process called “Catchball”. Strategic objectives and i.e. Key Performance Indicators (KPIs) are cascaded by using planning templates, thus ensuring clarity and focus. Hoshin Kanri addresses common strategy challenges and helps organizations stay aligned, responsive, and committed to a companywide strategy. A well-defined target condition typically follows the SMART criteria. Success lies in improving processes, not just hitting metrics. It promotes alignment, trusts employee expertise, and embraces Kaizen – continuous improvement through shared experiences, commitment, and supportive leadership.