Hoshin kanri X-matrix: how to build and read one

A hoshin kanri X-matrix is a one-page grid that links long-term objectives, annual goals, improvement priorities, measures and owners.

Hoshin Kanri has a reputation for complexity, mostly because of the X-matrix, a dense one-page grid that can look intimidating at first.

Underneath, the idea is simple. Choose a few things that matter most, connect them to the work that will deliver them and check progress every month.

How to read an X-matrix

The matrix has four sections around a central X. Start at the bottom with breakthrough objectives: the few long-term changes the organization must achieve.

Move left to the annual objectives that make progress on them this year. Move up to the improvement priorities that will deliver those objectives. Finish on the right with the metrics that show whether the priorities work.

The corners record how strongly each item connects to its neighbors, and who owns what. If a priority connects to no annual objective, question why you are doing it.

X-matrix example

Breakthrough objective: halve the lead time for custom orders. Annual objective: cut quoting time this year.

Improvement priority: a standard quoting template with fewer approvals. Metric: days from inquiry to quote, reviewed monthly.

Choose fewer objectives

Saying no is a large part of Hoshin Kanri. A matrix with many breakthrough objectives is a wish list, not a strategy.

Keep it to a handful, and check that the organization has capacity to deliver the priorities alongside its daily work.

Catchball: agree, don't dictate

Before the plan is final, each level discusses its part with the level below. Targets move down, and information about what is realistic moves back up.

This back-and-forth, called catchball, takes time. It aims for commitment rather than compliance.

The monthly review is the method

The X-matrix is only the plan. The work happens in monthly reviews, where owners show plan against actual for each metric, often in a bowling chart.

A bowling chart lists each metric with a monthly target and result, colored red or green. Each red cell needs a countermeasure, often worked through on an A3.

The yearly cycle as PDCA

Plan is the X-matrix and catchball. Do is the work on the priorities. Check is the monthly review. Act is the year-end reflection that shapes next year's plan. See PDCA.

Hoshin Kanri and OKRs

OKRs also set a few objectives with measurable results, usually on a quarterly cycle. Hoshin Kanri ties goals more tightly to long-term breakthroughs and daily management.

Further reading: Yoji Akao's Hoshin Kanri and Thomas Jackson's Hoshin Kanri for the Lean Enterprise. Hoshin kanri software and the lean management guide cover the tools and routines.

Frequently asked questions