Organizational Benefits Of Hoshin Planning

Organizational Benefits Of Hoshin Planning

Hoshin kanri, one of the best management strategies in strategic management; is a technique or rather systematic procedure used to define strategic long term objectives, and implement business fundamentals that are key in success if daily running of an organization. Its basic principle is to direct collective efforts do all members in the key areas that contribute to the organizational success.

Although developed in Japan, hoshin planning process has been used widely by a lot of organizations and reported substantial benefits. Generally the following are some of the organizational benefits of using hoshin planning process;

Hoshin planning enables the organization to major on the vital areas of production and hence no effort is lost on the trivial matters.
It helps define the organization's strategic vision and goals and perfectly communicate them across all level of the organization's hierarchy.

Hoshin enables regular review of the organization's goals and synchronize the company's strategies in relation to the general prevailing industry situation. This is meant to meet the clients ever changing demands and preferences. The planning process itself is also continually improved through annual cycles of organizational review.

Hoshin also encourages collective and cross functional approach towards archiving organization breakthroughs. The spirit of employees offering "both hands on the wheel" is highly cultivated through this process and therefore leads to a high sense of cooperation.

Annual reviews and setting of new goals are based on comprehensive analysis and understanding of the previous cycle of deployment/planning. This ensures that the organization understands its opportunities and capabilities for future development.

Hoshin Kanri planning process similarly improves the organizations learning capability and instills a sense of ownership and motivation in all members of the organizations hierarchy. This is possible through shared responsibilities and power across all levels of organization with everyone clearly understanding and working towards a common goal.

An organization wishing to restructure and realign its strategic goals and vision to archive the most out of its resources should give hoshin kanri planning process a try for a change.