The principle of Policy Deployment should help an organisation to achieve a state where all parts of the organisation and all individual teams are working towards a common set of goals and that the contribution of each team towards these higher level organisational goals is understood, measured and the performance against these goals managed. In Japanese this principle is called ‘Hoshin Kanri’ where ‘Ho’ means method, ‘shin’ means shining needle or compass and ‘Kanri’ means management referring to an organisation’s finding a clear direction and a way of navigating the organisation.
Establishing this transparent target structure starts with a clear definition and understanding of the operational strategy and the top performance indicators against which the success of this operational strategy should be measured. The next steps involve the definition of a clear target cascade and the performance management to support these targets.
From first line management to board level
Policy Deployment or Hoshin planning training covers a seven-step process of the following management tasks:
1.Identify the key business issues facing the organisation.
2.Establish measurable business objectives that address these issues. strategies include the use of Lean methods and techniques.
3.Define the overall vision and goals.
4.Develop supporting strategies for pursuing the goals. In the Lean organization, these
5.Determine the tactics and objectives that facilitate each strategy.
6.Implement performance measures for every business process.
7.Measure business fundamentals.
Policy deployment employs a standardised set of reports, known as tables, in the review process. These reports are used by managers and work teams to assess performance. The training also includes an explanation of the main elements of these reports:
- A header, showing the author and scope of the plan
- The situation, to give meaning to the planned items
- The objective (what is to be achieved)
- Milestones that will show when the objective is achieved
- Strategies for how the objectives are achieved
- Measures to check that the strategies are being achieved
The nature of policy deployment demands starting the implementation at the top of the organisation. A kick-off workshop with the top management team will establish transparency of the high level operational strategy and the definition of measurable success criteria for this strategy.