engleski

Hoshin Kanri - western management insights on content and process

The dynamic environment and the constant demand to be globally competitive require companies to focus closely on their management of internal resources. One of the systemic approaches towards improvements in internal resources is the implementation of lean. The Toyota Production System introduced lean which later widespread across western production systems. The Hoshin Kanri tool, a strategic aspect of the lean approach is still not so common in the practice of western management systems. The reason for not using Hoshin Kanri may be in the non- understanding of the embedded cultural elements of lean. In this paper, we propose two insights into Hoshin Kanri based on its implementation in western business environments. The first one is founded on the content of Hoshin Kanri, and the second on the soft principles guiding the process itself. Both of them are developed in combination with the theoretical background found in the literature and expertise in implementing Hoshin Kanri in companies. We provide insight for the example of a Hoshin Kanri implementation in a company through two crucial graphic representations: PDCA with Catchball and X- matrix. The stages of the strategic management process are set up on the PDCA principle. Contrary to the classic approach, a pre- phase is suggested for companies implementing Hoshin Kanri for the first time. Others suggest to start with the C – check phase. Plan is the most complex phase. One of the ways to present all the activities to strategic objectives, annual goals, activities, management by name in charge of these activities, indicators, timetable and status is an X-matrix. It is a complex but very helpful way to present, usually overwhelming, strategic activities in the company. Catchball is used to enable communication between everyone engaged in shaping and implementing the strategy at all organizational levels in search for the optimal plans and realistic goals in the company. In this paper, we shared the insights on transparency, flexibility and communication as the three most important soft principles in the process. These three elements answer the call of western strategic management, both practice and theory, for a more open strategic process with higher level of engagement of all employees and a system of knowledge sharing fostering a culture of sharing and caring.

lean, Hoshin Kanri, strategy

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