International Journal of Applied Strategic Management (ISSN: 1742-8204) Volume 2 Issue 2
Professor Mohamed Zairi, Juran Chair in TQM, Director of the European Centre for TQM, University of Bradford, School of Management
Mr. Alan Erskine, Consultant and Associate of The European Centre for TQM
One of the key miracles of Japan’s success in dominating international markets for such a long period of time is their approach to strategic planning. Hoshin Kanri (Planning) has served Japanese corporations extremely well and has proven to be a well disciplined, systematic, fully integrated approach to implementing strategies. This was happening at a time when there has been so much criticism of the Western approaches to strategic formulation and implementation.
The spread of Hosin Planning from Japan to the US has been well documented (King, 1989; Babich, 1996; Colletti, 1995; Quest Worldwide Education Ltd, 1997). The uptake of Hoshin in the West seems on the whole to be associated with organisations that are advocating the use of Total Quality Management. This is an ‘implicit’ consideration that Japanese corporations make, having always based their approach to doing business on the use of quality methods and techniques.
This paper discusses the meaning and origins of Hoshin and how it works in practice. Several case studies of the successful implementation of this pioneering concept are illustrated and a proposed roadmap of Implementing Hoshin Planning is discussed. The roadmap is meant to assist organisations of different sizes and from different sectors, manage their strategic thinking more effectively.
Key Words: Strategic Planning, Hoshin Planning, Hoshin Kanri, Policy Deployment, Benchmarking, Quality Management, Goal Cascade