The process you use to develop your strategic plan is as important as the plan itself. Many organizations adopt the Hoshin Kanri method (also known as Hoshin Planning or Strategy Deployment), which integrates daily management with the strategic breakthroughs needed to propel the organization forward. Hoshin Kanri helps create specific, actionable plans and allocates the resources necessary to achieve them.

An important element of Hoshin Kanri is not just the setting of top-down objectives but also ensuring a two-way dialogue between leadership and employees, known as "catchball." This ongoing feedback loop ensures that strategic objectives are both communicated effectively and adjusted based on input from all levels of the organization. The entire process becomes an iterative cycle that aligns with the Plan-Do-Study-Adjust (PDSA) framework, fostering continuous learning and improvement.

Here are the seven steps typically followed in the Hoshin Kanri process:

Step 1: Establish the Vision and Assess the Current State

Begin by reviewing your organization’s current mission, vision, and values. Are they aligned with where you need to be? Assess current processes to identify strengths and weaknesses. This step is crucial in ensuring that your strategy reflects both your aspirations and your current reality.

Step 2: Develop Breakthrough Objectives

These objectives are long-term goals that require significant change and innovation. They often span three to five years and aim for transformative results, such as entering new markets, developing new products, or adopting radically different service delivery models.

Step 3: Define Annual Objectives

Once breakthrough objectives are in place, it's time to identify what must happen this year to achieve them. For example, if the goal is to launch a new product in three years, this year’s objective might include conducting market research or defining product requirements.

Step 4: Cascade Goals Throughout the Organization

Cascading goals is not just a top-down exercise. Through "catchball," there’s a collaborative process of back-and-forth communication, ensuring that every department, team, and individual understands their role in achieving the broader strategy. These goals should be measurable, with clear key performance indicators to track progress.

Step 5: Execute Annual Objectives

With the goals set, teams take action. Problem-solving techniques such as Kaizen events, PDSA cycles, and A3 thinking are employed to overcome obstacles and drive execution. This phase is where strategy meets daily management practices.

Step 6: Monthly Reviews

To avoid the common pitfall of creating a plan and then losing focus, monthly reviews are essential. Regularly checking progress allows for adjustments and reinforces accountability across the organization. This also aligns with the iterative nature of the PDSA cycle, enabling constant learning.

Step 7: Annual Review

At the end of each year, conduct a comprehensive review of the progress made toward breakthrough objectives. This is the time to reassess timelines, make necessary adjustments, and reallocate resources to ensure continued alignment with the long-term vision.

Hoshin Kanri (or Hoshin Planning) is not terribly complex, but each step is important to create an action plan that can be effectively executed in the expected time frame. Aligned goals ensure that everyone is working toward the same ends, and frequent reviews help ensure that work stays on track. If you are looking for a planning method that will help your organization make the leap to the next level, Hoshin Kanri is a great option to consider.  

In conclusion, Hoshin Kanri (Strategy Deployment) is more than just setting goals; it's a collaborative, dynamic process. The iterative nature of "catchball" ensures that strategies evolve based on real-time feedback, making Hoshin Kanri a continuous cycle of improvement that aligns every part of the organization with its strategic vision​​.