How do I use a Hoshin Kanri matrix?

/ Dutch / Door

Are you also experiencing difficulties transforming your business strategy into concrete actions? Does it seem a mission impossible To get the whole organization involved? Fortunately, handy tools like the Hoshin Kanri offer a solution. In the next five minutes, you'll find out how you, too, can reap the benefits of a Hoshin Kanri matrix.

What is a Hoshin Kanri matrix?

The Hoshin Kanri matrix fits within the general philosophy of continuous improvement (Kaizen, PDCA, lean management...). This powerful tool visualizes goals and strategies as well as actions and KPIs on a single page. It aims to roll out, based on an organization's long-term needs, the key associated actions and objectives you want to monitor and improve. Thus, when implemented correctly, the matrix can simplify the transition from strategy to execution.

The Hoshin Kanri matrix is also called X-matrix and can be seen as a compas for the organization. That name is derived from the "X" that divides the matrix into four key quadrants:

  1. Medium-term goals (3-5 years) - South
  2. Annual objectives - West
  3. Actions - North
  4. KPIs to be tracked - East

On the far right of the matrix, you can enter those responsible for the actions as well as the resources needed to realize these actions.

All these elements and the links between them are displayed on one page. It is important that the matrix makes it clear at a glance which direction the organization wants to take and how it will go about it. 

How do I use a Hoshin Kanri matrix?

compile

Step 1: Through several brainstorming sessions and workshops, management determines where they want the organization to be in the future. With the help of a concrete mission and vision the entire organization can grow in the same direction.
Step 2: Top management and a delegation of employees in the organization come together to translate this vision into medium-term goals. This involves goals you want to achieve within three to five years. Through these break-through objectives you work with the company step by step toward the realization of the organization's mission and vision. At the bottom of the matrix you complete those goals.

Tip: Start with one strategic objective and then work out the corresponding annual objectives and actions. You will soon find that one objective immediately leads to a lot of additional actions. So limit the number of long-term objectives.

Step 3: It is then planned to divide these medium-term goals into annual objectives. In establishing those short-term goals It is best to involve as many layers of the organization as possible. This creates greater support for the filling in of the matrix and allows the collective thinking capacity to be optimally utilized. To the left of the matrix you complete those annual objectives.

Step 4: The annual milestones are divided into concrete actions. The actions are located at the top of the Hoshin Kanri. Then on the right side of the matrix you fill in the person responsible for each action and determine KPIs To monitor your annual goals. So in this step, you answer who will execute what by when and by what means.
Step 5: As a final step, indicate in the corners of the matrix the mutual relationships between all the aforementioned elements. This way you create one coherent whole to monitor strategy and action plans at the macro level.

implement and follow up

Now that the complete Hoshin Kanri matrix has been completed, it is ready for use. However, the cycle is not yet complete. After planning and implementing the matrix, it is essential to also monitor the actions and objectives using the KPIs. Furthermore, each employee periodically checks whether the defined objectives remain achievable and whether or not the long-term goals need to be adjusted. Thus, based on constant monitoring, the matrix will have to be adjusted afterwards. Only then is the PDCA cycle completed and can there be continuous improvement.

The Hoshin Kanri matrix in a digital environment

Phronesyss developed in a customization for Cordeel Group & Imtech Belgium A digital Hoshin Kanri matrix. Below you can see an example of it.

Are you also curious about what else Phronesys has to offer for you? Feel free to ask us for more information or set up a demo via the contact button.

Contact us

Related Posts