Hoshin kanri (strategy deployment)

Transformational leaders of lean organizations require a new type of control system to guide healthcare managers, clinicians and staff members to achieve world-class levels of safety, quality, and value. Hoshin kanri is that control system. The central premise of the hoshin kanri (strategy management) action in a lean enterprise is to focus a company’s improvement efforts on a small number of well-defined initiatives that align and mobilize business units, plants, departments, and all supporting personnel in the transformation process. 

Graduates of the lean executive program are eligible to participate. Over two weeks, RCG consultants introduce the tools and techniques of hoshin kanri that support the five phases of hoshin:

In the scan phase of hoshin, the client must assess the needs of its clients, the capabilities of its competitors, and its own capabilities. Tools introduced in this phase include the value stream map, visual Porter matrix, value stream profit and loss statement, market / technology matrix, product / market matrix, the president’s diagnosis, and the A3i intelligence report.**

In the plan phase of hoshin, the client creates a highly focused long-term strategy, a mid-term strategy (or “balanced scorecard”) that links long-term goals to measures of process improvement, and a short-term strategy or “annual hoshin” that establishes a concrete plan of action. In addition, the client communicates and confirms the annual hoshin with all managers through a carefully orchestrated negotiation called “catchball,” in which middle and front line managers articulate verbally and in numbers how they propose to reach the targets set by top management. Tools introduced in this phase include the A3-T (team charter) prioritization matrix, relationship diagram, and the A3-X (or X-matrix).

In the do phase of hoshin, the client implements planning improvements through normal processes of project management. Tools introduced at this phase include visual project management.

In the check phase of hoshin, the client monitors the progress of improvement projects. Tools introduced in this phase include companywide quality management, visual management, overall process effectiveness, and the A3-SR report.

In the act phase of hoshin, the client revises its “book of knowledge” and collates its A3 documents to capture the process of adjusting standard work in each of the organization’s value streams.

Concurrently with the lean healthcare education and certification process, RCG consultants work with your lean transformation team to define and deploy a sharply focused set of improvement tactics and targets that will incorporate your most important strategic priorities into daily work at every level in your organization.

**RCG utilizes the A3 knowledge management system documented in Tom Jackson’s Shingo Prize-winning book, Hoshin kanri for the lean enterprise (Productivity Press 2006). A3 stands for the European paper size that is comparable to the imperial tabloid, i.e., 11" x 17".

 Hoshin kanri brochure