Do you use Hoshin Kanri Planning in your organization?

If so, what have you learned, what are the pitfalls? (Please specify the nature and location of your organization.) I have used Hoshin Planning in multiple organizations with mixed results. See Notes section below. First, a brief discussion of what were talking about. Hoshin Planning is a powerful tool for aligning an organization. It starts with a common mission and breaks that mission down into its various elements. Metrics are then developed for each element. To be of use, each metric needs to be assigned a goal. Performance against each goal provides feedback on how well the organization is achieving mission success. By then cascading these metrics down through the organization, each employee is given clear, measureable, evidence of how their individual efforts impact mission success. Performance against that goal needs to be captured at every level of the organization. The flow down of metrics involves another technique called Catchball. Using this technique, each leading organization establishes the metrics for the led organization. As a practice, the metric is non-negotiable. Along with the metric, however, the leading organization proposes an ambitious goal for the led organization to meet. The led organization is then given a finite period of time within which to accept the goal or to propose a modification. The goal ball gets tossed back and forth between leading and led until consensus is reached. Once reached, the led organization will be expected to make continued progress against the goal.

NAME

Robert Camp

Robert Camp

Robert Camp

: Yes I have used HC Planning and other related tools for about 19 years now. Simpler uses the X Matrix process with 4 levels between 100% of all Associates John Rubio Yes we used Policy Deployment in an organization I used to run and I preach it today to clients. The main reason I preach it is there are few lean tools that can actually be implemented in the corner office that are visible throughout the organization. If the corner office uses lean tools there is a much higher chance that the culture of the organization will at least begin to change. It sends a message that lean will be used as an organizational tool not just something done on the shop floor or service area. Gregg Miner My lesson learned is that US workers dont want to do Hoshin Kanri, kaizen or walk the Gemba. In many cases we are already introducing new concepts and tools so it is unnecessary to try to use another language. Gregg Miner

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CH2M Hill

Industrial Services Group AME Regional Board Member

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Simpler Consulting

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Score Business Systems

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1. It is best if Hoshin Planning begins early in a Lean transformation, no later than the roll out of a Kaizen plan. A detailed Value Stream Map (VSM), in turn, should precede the Kaizen plan. In organizations with multiple value streams, there should be a separate VSM for each 2. Hoshin Planning, however, begins with the establishment of a Lean Council (the body who will steer the transformation). Said body should include all those reporting to the Lean Champion, including the person who will lead the actual training and implementation of Lean (the Leader of Lean). The Council will be the body that will assess the mission, ensures that it captures the direction the organization is headed and breaks it down into measureable 3. Following the first WHO, then WHAT[i] principle, the Lean Council should only be established after the Lean Champion has performed an assessment of his staff to ensure that the Right people are on the bus and in the right seats, and that the Wrong people are off the bus.[ii] This top-level pruning is critical to the success of the transformation. If the wrong people are left in place, they will covertly scuttle the transformation. Such people those who refuse to get on board, who only grudgingly support the imperative to change must be 4. Once the Lean Council has been established, they need to be convened for the Hoshin Planning session. This should be a facilitated event that steps through the ratification of the mission, the formulation of metrics and the establishment of goals. Once top-level metrics are 5. Following the establishment of metrics and goals at the top level of the organization, the flow down of metrics and the catchball process begins. As metrics and goals are established at each level of the organization, they should be followed in rapid succession by actual measurement of performance against goal. Each periods performance should be posted as a datum point on a run chart that also includes the goal line. Run charts are used 6. Run charts for each metric should be posted in a public place accessible to all members of the organization being measured. These public posting sites are frequently referred to as KPI boards Key Performance Indicator boards and there should be a KPI board for each 7. Leaders from the next higher level of the organization should review the KPI boards of their direct reports no less than weekly. As a trend emerges, Leaders need to take action, not by faultfinding, but by providing constructive assistance. Frequently, problems in a led 8. Coming full circle, the constant review of data and the actions that flow from these reviews, are two of the keys to sustaining a transformation. It also creates alignment: the clear sense that anyone in the organization can point to a graph and show how what they do results in 9. Some graphs will reveal areas that are in control and operating within goal. Others will be trending in a neutral (flat line) direction, indicating that the organization is not making progress against their goal, but they are also not falling behind. A last group will be losing ground and getting further from the goal. This must be the first group with whom leaders must deal. The key here is not to look for fault, but to conduct root cause and corrective action. The Leader of Lean is typically the first line of defense in providing these services. After leading the quest Most organizations are familiar with Kaizen events: fast-paced, narrowly focused, tactical improvement events. Less familiar are Kaikaku events. These are strategic, more widely focused and much longer events. Kaikaku events are typically established by the Lean Council to deal with systemic problems. Examples of systemic problems might be the modification of a procurement system, an engineering system, the receiving or order entry systems. These systemic problems are often uncovered during Kaizen events and root cause analysis resulting from an organizations inability to achieve their goals. Hoshin Planning must prepare
[i] Good to Great: Why Some Companies Make the Leap and Others Dont; Jim Collins, 2001, [ii] Ibid.

Needs to be implemented by someone who knows the process or it can be very Make sure your measures/metrics align and align to true north, Q, C/P, D, HD, G Make sure you link all levels vertically Keep it focused on the true north metrics Keep it simple. Common mistake is to keep adding Make sure you have Breakthrough for stretching the organization (Like a BHAG) Conduct training prior to implementation No pitfalls if done right with people who know how to do it. It is a great process for linking all levels, Value Streams to a focused purpose and strategy Great process and has worked well for many organizations Lean Best Practices: We did when I was with Texas Instruments. It was very effective when implemented from the top. We called it Catch Ball which was more American. 1. Strategic Measures only, we had FOUR, not 20-40 2. Managers were responsible for meeting and reporting 3. All measures need to be precisely defined 4. We benchmarked to determine what performance measures goals ( i.e. Benchmarks) would make us competitive and then set them at the top. 5. Individual levels may have reasons to not meet the overall goals, but they must be 6. Each level has the right and responsibility to identify barriers to meeting the goals and managements responsibility is to clear the barriers or accept less competitive 7. We published a Metrics Handbook to aid managers Lessons Learned: 1. We formed a Metrics Team to set performance measurements relative to the 2. Aggressively review progress to the goals on a monthly basis at each level. Managers must ID actions if monthly goals are not met. 3. Achievement of goals needs to be on managers performance reviews and tied to 4. Too many goals dilutes the attention any one gets

Robert Camp CH2M Hill

Industrial Services Group

Robert Camp CH2M Hill

Industrial Services Group

Robert Camp CH2M Hill

Industrial Services Group

Robert Camp CH2M Hill

Industrial Services Group

Robert Camp CH2M Hill

Industrial Services Group

Robert Camp CH2M Hill

Industrial Services Group

Robert Camp CH2M Hill

Industrial Services Group

Robert Camp CH2M Hill

Industrial Services Group

Robert Camp CH2M Hill

Industrial Services Group

Robert Camp CH2M Hill

Industrial Services Group

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Simpler Consulting Simpler Consulting Simpler Consulting Simpler Consulting Simpler Consulting Simpler Consulting Simpler Consulting Simpler Consulting Simpler Consulting Speed to Excellence formerly w/ Raytheon Speed to Excellence Speed to Excellence Speed to Excellence Speed to Excellence formerly w/ Raytheon formerly w/ Raytheon formerly w/ Raytheon formerly w/ Raytheon

Speed to Excellence formerly w/ Raytheon Speed to Excellence formerly w/ Raytheon Speed to Excellence Speed to Excellence Speed to Excellence Speed to Excellence formerly w/ Raytheon formerly w/ Raytheon formerly w/ Raytheon formerly w/ Raytheon

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Notes: Hoshin Planning works! In the organizations Ive employed it, Ive had the following results. POSITIVES: Executives realized the criticality of their leadership; not just of the broader organization and Executives eyes are opened to see the market imperative to change, the usefulness of Lean as a way to embrace change and Hoshin Planning as a tool to steer that change from the top. The organization, especially executives and managers, came to acknowledge the importance of aligning the organization; allowing each member to know how their skills and effort propelled KPI boards provided single point of accountability for each organization, each leader, and became the opening statement in an ongoing dialogue between leaders and led. The Lean Champion and Lean Council came to realize the importance of communication. They grew to understand that dialogues held at the top reaches of the organization rarely made it to the bottom, and that those dialogues that did reach the bottom, were almost always altered Poor performance was no longer was hidden, but publically acknowledged. It led to real assistance and bringing the full weight of the organization to bear on the problem. Gone was the use of problems to make subjective assessments of individual shortcomings. Instead, shortcomings led to the development of tailored development plans for the individual. These development plans became the focus of conversations between leaders and led, NEGATIVES: Champions can mistake Kaizen, with its rapid improvements and visual appeal, for culture change. This leads to the abandonment of the important work that truly changes cultures; work The Lean Council can use Kaizens ability to harvest low hanging fruit as an imperative to bridge around middle management and work directly with the shop floor to stay in control of the transformation. This creates an atmosphere of us vs. them, and divides the organization In a rush to get started, the Champion charge off on a Lean transformation prior to the rigor of assessing whether the right people are on the bus and in the right seats; or, as importantly, whether the wrong people are off the bus. This leaves deep pockets of resistance that may not Refusal of the Champion to hold subordinates accountable for personal transformation, in addition to organizational change, can result in dysfunctional organizations wherein the leader Focus on the financial gains achieved from Lean can lead organizations to gather low-hanging fruit. When these easy fixes are exhausted, and the remaining fruit is on higher branches, the leaders lose interest and wander off in search of a new tool with which to harvest. The result is often a disenchanted workforce that, justifiably, refers to managements constant refocus as Failure of the Champion to make Lean leadership a part of the performance and reward processes leads to subordinates that give the transformation lip service and work at crossFailure of the Champion to require subordinates to adopt the philosophies and behaviors of Lean frequently results in the unraveling of the Lean transformation when the Champion leaves. This makes the First Who, then What discerning process all the more critical before

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CH2M Hill CH2M Hill CH2M Hill CH2M Hill CH2M Hill CH2M Hill

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Robert Camp CH2M Hill Industrial Services Group AME Regional Board Member Robert Camp CH2M Hill Industrial Services Group AME Regional Board Member Robert Camp CH2M Hill Industrial Services Group AME Regional Board Member

Robert Camp CH2M Hill Industrial Services Group AME Regional Board Member Robert Camp CH2M Hill Industrial Services Group AME Regional Board Member

Robert Camp CH2M Hill Industrial Services Group AME Regional Board Member Robert Camp CH2M Hill Industrial Services Group AME Regional Board Member Robert Camp CH2M Hill Industrial Services Group AME Regional Board Member Robert Camp CH2M Hill Industrial Services Group AME Regional Board Member

Robert Camp CH2M Hill Industrial Services Group AME Regional Board Member

Robert Camp CH2M Hill Industrial Services Group AME Regional Board Member Robert Camp CH2M Hill Industrial Services Group AME Regional Board Member

Robert Camp CH2M Hill Industrial Services Group AME Regional Board Member Robert Camp CH2M Hill Industrial Services Group AME Regional Board Member

Robert Camp CH2M Hill Industrial Services Group AME Regional Board Member