Implementing Hoshin Kanri: How to Manage Strategy Through Policy Deployment and Continuous Improvement

223 Pages·2021·2.537 MB·English

by  Anders Melander, David Andersson, Fredrik Elgh, Fredrik Fjellstedt, Malin Löfving

I mplementing Hoshin Kanri

Implementing Hoshin Kanri
How to Manage Strategy Through
Policy Deployment and
Continuous Improvement
Anders Melander, David Andersson,
Fredrik Elgh, Fredrik Fjellstedt, Malin Löfving
Translated by Rikard Ehnsiö
A PRODUCTIVITY PRESS BOOK
First published 2022
by Routledge
605 Third Avenue, New York, NY 10158
and by Routledge
2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2022 Anders Melander, David Andersson, Fredrik Elgh, Fredrik Fjellstedt, Malin Löfving
The right of Anders Melander, David Andersson, Fredrik Elgh, Fredrik Fjellstedt, Malin Löfving to be identified as
authors of this work has been asserted by them in accordance with sections 77 and 78 of the Copyright, Designs and
Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic,
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information storage or retrieval system, without permission in writing from the publishers.
Trademark notice : Product or corporate names may be trademarks or registered trademarks, and are used only for
identification and explanation without intent to infringe.
ISBN: 978-1-032-04826-0 (hbk)
ISBN: 978-1-032-04825-3 (pbk)
ISBN: 978-1-003-19481-1 (ebk)
DOI: 10.4324/9781003194811
Typeset in Garamond
by Apex CoVantage, LLC
Contents
Authors ............................................................................................. ix
Introduction ..................................................................................... xi
1 Why Work with Strategy According to Hoshin Kanri? ................1
2 How Do You Recognize a Hoshin Kanri Organization? ............11
2.1 The Visionary Target Condition for Hoshin Kanri ..........................12
2.1.1 Principle 1: Long-Term Thinking ...........................................13
2.1.2 Principle 2: Change Curiosity ................................................14
2.1.3 Principle 3: Focus ..................................................................17
2.1.4 Principle 4: Process Orientation ............................................18
2.1.5 Principle 5: Visualization .......................................................21
2.1.6 Principle 6: Managing by Learning .......................................22
2.1.7 Principle 7: Facts Drive and Decide ......................................23
2.1.8 Summary of the Seven Principles .........................................24
2 .2 A Scientifi c Approach .......................................................................25
3 Are You and Your Organization Ready? ....................................31
3 .1 Why, Why, Why, Why, Why? ............................................................32
3 .2 Readiness Analysis ...........................................................................35
3.2.1 External Drivers .....................................................................37
Factor 1: External Pressure for Change ..............................37
Factor 2: Ownership Control ..............................................38
3.2.2 Internal Drivers ......................................................................39
Factor 3: Level of Ambition .................................................39
Factor 4: Focus.....................................................................40
Factor 5: Leadership ............................................................41
Factor 6: Management Work ...............................................42
Factor 7: Strategy Work .......................................................43
v
vi  Contents
Factor 8: Problem Solving...................................................44
Factor 9: Body of Knowledge.............................................45
Factor 10: Visualization .........................................................46
Factor 11: Inclusion...............................................................47
Factor 12: Individual Follow-Up...........................................48
3.2.3 The Organization’s Desire and Capacity ...............................49
3.3 Existing Strategy Work .....................................................................52
4 Strategy for Introducing Hoshin Kanri .....................................57
4.1 Classifying Organizations Based on Desire and Capacity ..............57
4.1.1 Category A: We Want to Do It, But We Don’t Really
Know What We Can Do........................................................57
4.1.2 Category B: We Can’t Do It and Don’t Want To ...................59
4.1.3 Category C: We Can Do It and We Know What
We Want .................................................................................60
4.1.4 Category D: We Are Capable But Don’t Really Know
What We Want to Do ............................................................60
4.2 Challenge-Based Change Strategy ...................................................61
4.3 How Does the Change Agent Bring about Change? .......................67
5 Hoshin in Hoshin Kanri ............................................................75
5.1 Organizing the Introduction ............................................................76
5.2 Developing and Gaining Acceptance for the Target
Condition ..........................................................................................80
5.3 The Task of the Owners: Deciding the Direction ...........................82
5.4 The Task of Management: Identifying the Organization’s
Challenges .........................................................................................85
5.5 From Major Challenges to This Year’s Planning: “Catchball” ..........89
5.6 Nemawashi .......................................................................................96
5.7 When, Where and How? ..................................................................98
6 Kanri in Hoshin Kanri .............................................................103
6.1 The Meaning of Follow-Up ............................................................103
6.2 Catchball .........................................................................................107
6.3 Coaching Leadership According to the Kata Philosophy ..............108
6.3.1 Finding the Employee Where They Are Located
and Starting There ...............................................................109
6.3.2 Understand More Than the Employee Does—But First
Understand What They Understand ....................................110
6.3.3 Helping Is Not Wanting to Rule But Wanting to Serve ......112
6.4 Encouraging Learning and Development by Experimenting .......113
6.5 Alternatives to Hoshin Kanri According to the Toyota Model ...... 115
Contents  vii
7 Extended Discussion and Analytical Tools ..............................119
7.1 Current Condition ...........................................................................120
7.1.1 SWOT—Framework for Analyzing the Current
Condition ..............................................................................120
7.1.2 PESTEL .................................................................................122
7.1.3 Porter’s Five Forces Analysis ...............................................123
7.1.4 Internal Environment ...........................................................129
7.1.5 VRIO.....................................................................................131
7.1.6 SWOT—A Summary ............................................................132
7.1.7 Preparing the Next Step—The Extended SWOT
Analysis ................................................................................133
7.2 Vision and Direction ......................................................................134
7.3 PDCA and the Scientifi c Systematic Approach ..............................138
7.4 How Did It Go? Follow-Up and Evaluation ...................................143
7.5 Communicating PDCA ...................................................................144
7.5.1 A3 .........................................................................................144
7.5.2 X-Matrix ................................................................................ 151
7.5.3 Sunburst Diagrams ...............................................................154
7.6 Systematic Root Cause Analysis .....................................................156
7.6.1 Five Whys .............................................................................156
7.6.2 Fishbone Diagram ................................................................158
7.7 Information, Transparency and Visualization ...............................162
8 Some Concluding Remarks ......................................................171
Appendices .....................................................................................173
Appendix 1: The Lindbäcks Group...............................................................173
Appendix 2: Worksheet for Readiness Analysis ............................................187
Appendix 3: Worksheet for PDCA Analysis ..................................................199
Index ..............................................................................................203

Authors
Anders Melander is an associate professor in business administration at
Jönköping International Business School. Anders researches and teaches
strategic change, business development and strategy work. He has extensive
experience in practicing business development and action-based research,
especially in collaboration with small and medium-sized companies.
David Andersson has worked with strategic development for two decades
in the role of leader and consultant, both professionally and as a volunteer.
His focus is on creating an ability to change. Over the past fi ve years, David
has worked together with researchers at Jönköping University on developing
effective methods for strategic development processes.
Fredrik Elgh is a professor of product development at the School of
Engineering, Jönköping University. Fredrik has held various management
positions in the area of education and research for more than a decade. He
has a great deal of experience in research and development work in close
collaboration with the industry, and he has worked actively with Hoshin
Kanri for six years.
Fredrik Fjellstedt has a master’s degree in business administration and
economics with a focus on strategy and leadership. Fredrik has over ten
years of experience with regard to lean thinking, leadership development
and Hoshin Kanri at Toyota. He is the fi rst person outside of Japan to
become a master trainer in Toyota’s eight-stage problem-solving method, and
he has coached over 1,500 leaders. Today, Fredrik works as a senior enabler
with a focus on Hoshin Kanri.
Malin Löfving has a PhD in technology management and economics.
She works as project manager at Träcentrum Nässjö Kompetensutveckling
AB and as an adjunct lecturer at the School of Engineering, Jönköping
University. Malin conducts research on manufacturing strategies and produc-
tion development in small and medium-sized enterprises.
ix