Lean teams use hoshin kanri to focus improvement effort on what matters most. It keeps the number of priorities small and links daily work to strategy. Tools like the X-matrix and A3 make the links and owners visible.
Where it comes from
Hoshin kanri developed in Japanese companies alongside total quality management and the PDCA cycle. Lean organizations outside Japan later adopted it too.
At a glance
A simplified X-matrix
Swipe sideways to see the whole diagram.
How to apply Hoshin Kanri
- 1
Set breakthrough objectives
Define a few long-term goals tied to the organization's direction. Limit them so resources are not spread too thin.
- 2
Translate into annual objectives
Choose this year's objectives that move toward each breakthrough goal. Make each one measurable.
- 3
Play catchball
Pass the objectives down and across the organization for feedback. Teams propose how they will contribute and what they need.
- 4
Assign improvement priorities and owners
Define the projects and metrics that will deliver each objective. An X-matrix shows how goals, projects, metrics and owners connect.
- 5
Execute and review monthly
Track progress on visual boards or A3s. Hold regular reviews that focus on gaps and countermeasures, not blame.
- 6
Reflect and reset each year
Run an annual reflection on what worked and why. Use the lessons to set the next cycle of objectives.
Worked example (illustrative)
A mid-size manufacturer sets a three-year goal to cut customer lead time in half, from about 20 days to 10. This year's objective is 16 days. Through catchball, each of its three plants proposes two projects, such as quicker changeovers and pull replenishment, with an owner and a monthly target. The bowling chart shows Plant B at 19 days in March and April against a target of 18. Its A3 review finds the changeover project short of people, so a second technician joins it, and Plant B is back on plan from May.
Common mistakes
- Setting too many priorities, so nothing gets enough attention.
- Pushing targets down without real catchball, which kills ownership.
- Reviewing only at year end instead of monthly, missing chances to adjust.
When Hoshin Kanri is not the right tool
Hoshin kanri adds most where several levels must align on a few breakthroughs. A small company with one leadership team may need only a simple plan and monthly review.
It also needs a working daily management system to carry goals to the front line.
Hoshin kanri meaning
Hoshin kanri is a Japanese term often translated as policy deployment. Hoshin means direction, like a compass needle, and kanri means management or control.
It is a method for choosing a few breakthrough goals and aligning every level of the organization to them. In English it is also called hoshin planning.
The hoshin planning process
Leaders set a long-term vision and a few breakthrough objectives. They turn these into annual objectives and a short list of improvement priorities.
Each level agrees its part through catchball, a back-and-forth discussion instead of orders. The plan is often summarized on an X-matrix.
Monthly reviews check progress and adjust the plan. The yearly cycle then repeats, like one large PDCA loop.
Bowling charts
A bowling chart lists each metric with a target and an actual result for each month. Cells turn red or green, so misses stand out.
Each red cell needs a countermeasure, often worked through on an A3. In the worked example, Plant B's two red months led to one A3 and one countermeasure: a second technician on the changeover project.
The X-matrix guide shows how plans and charts connect. Hoshin kanri software can hold the matrix and the charts once paper gets crowded.
Guides on this topic
- Hoshin kanri X-matrix: how to build and read oneThe hoshin kanri X-matrix in plain language: what goes in each section, how to read it, a filled example, catchball, the monthly review and a free X-matrix template.Read the guide
- Kanban board examples: 15 boards from different settingsKanban board examples for factories, hospitals, offices, software, sales, support, portfolios, classrooms and homes, with columns, WIP limits and lessons.Read the guide
- Continuous improvement in lean: examples and strategiesContinuous improvement in lean explained: the PDCA cycle, daily kaizen and kaizen events, with practical examples and strategies that keep improvement going.Read the guide
Sources
Books and papers show their publication year. Web pages show the month we last checked them.
- 1.Yoji Akao (editor), Hoshin Kanri: Policy Deployment for Successful TQM (Productivity Press, 1991)
- 2.Thomas L. Jackson, Hoshin Kanri for the Lean Enterprise: Developing Competitive Capabilities and Managing Profit (Productivity Press, 2006)