LYSIPPE - Formation Lean Management, Réduction des frais généraux

Hoshin Kanri / Strategy Deployment

Thursday 8 January 2009 by emmanuel

Strategy Deployment or Hoshin Kanri is a basic tool of Toyota Production System / Lean.

Strategy Deployment is an upper management activity, to transform company’s strategy, long-mid-short term plans, in shop floor or office activities that support this strategy.

Deployment consists in cascading activities through all departments to the lowest level, set up by managers according to a specific deployment process.

The power of Toyota is to plan out by all levels of management a cascade of actions that support the strategy. At the same time are set up KPI metrics and audit processes. These allow to check the actual strategy deployment and if goals aimed by taken actions are reached and comply with the strategy.

As all management levels contribute to strategy planning deployment, all managers are aligned and involved in its success.

Payoffs for the company are :

- Management knows where he goes, tells it and explain it,

- Management team is involved and aligned,

- Strategy results can be seen in profit and loss account (Turnover, net profit,...)

- Consistent check points allow to adjust track in "real-time" even in bad economic times (check how Toyota recovered from 2008 economic downturn, and 2011 tsunami)

Strategy Deployment allows you to go for a Lean Journey with positive financial results, and not for a "let’s try this tool" path with poor results as it is unfortunately most of the time.

What’s the use of holding a steering wheel in your hands if when there’s a curb in the road ahead wheels are not connected to the steering column?

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