Development of an operational strategy. Policy Implementation

Transform your strategic vision into a cohesive system of goals and actions—from senior leadership down to every department. The Hoshin Kanri methodology ensures transparency, alignment, and effectiveness at all levels of the organization.

90%

Strategies are failing

14%

Employees understand the strategy at

The Hoshin Kanri Steps
to Achieving Results

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Challenge

Millions are spent on developing strategies. But 90% of strategies fail

Without the right methodology, culture, and tools, most strategies fail as early as the implementation phase. The main reason is the disconnect between management’s vision and the teams’ day-to-day actions.

65%

Organizations have
a coordinated strategy

The strategy exists in theory, but it doesn't always make it down to the operational level

14%

Employees understand the organization's strategy

The vast majority of teams operate without a clear understanding of strategic priorities

90%

These strategies
fail in practice

The lack of cascading objectives and systematic oversight undermines effectiveness

Strategic execution is the delivery of transformation, change, and improvements that create value. In an ever-changing market, it is unlikely that a company’s strategic goals will boil down to “keep doing what you’ve always done.” It is precisely the increasing frequency of breakthrough strategic goals that makes investments in this area critically important.

Methodology

What is Hoshin Kanri?

Hoshin Kanri is a Japanese methodology for strategic planning and policy implementation that originated in the 1960s based on Lean principles. Its main goal is to bridge the gap between senior management’s strategic objectives and the reality of day-to-day management.

Hoshin Policy

Direction / Compass

Management Kanri

Management / Control

The Essence of the Approach

Hoshin Kanri ensures that strategic goals are strictly cascaded throughout the entire organization. Each level—from top management to operational teams—receives clear objectives aligned with the overall vision. The “catchball” process ensures two-way communication and alignment across all levels.

Other names

Policy Deployment, Strategic Deployment, Hoshin Planning. Related methodologies: OGSM, OKR, Balanced Scorecard, 4DX.

X-Matrix — a visual strategy deployment tool

Process

The Seven Steps of Hoshin Kanri

From defining the vision to the annual review—a structured cycle supported by the PDCA cycle and the catchball process at every stage.

Vision

Define a long-term vision for the organization's future

Breakthrough in 3–5 years

Set breakthrough goals that require transformational change

Annual Goals

Identify specific goals for the current year

Deployment

Cascade goals using the catchball process

Implementation

Implement improvement priorities

Monthly Review

Track your progress using data

Annual Review

Reviewing Results and Planning the Next Cycle

Key Tool

The X-Matrix: The Heart of Hoshin Kanri

The X-matrix is a visual tool that clearly illustrates the relationships between strategic goals, annual objectives, improvement priorities, key metrics, and responsible parties. It is a central element of policy implementation.

South — WHAT?

Breakthrough goals for the next 3–5 years, defined in accordance with the strategic vision

The West — HOW MUCH?

Annual goals that bring us closer to achieving breakthrough objectives

North — HOW?

Priorities for improvement and key initiatives to achieve annual goals

East — HOW MUCH?

Success metrics and the individuals responsible for each element of the plan

Advantages

What does Hoshin Kanri offer your organization?

Companies that have implemented Hoshin Kanri consistently outperform the market. Here are the key results you’ll achieve.

Strategic Alignment

Every department and employee understands their role in achieving our strategic goals. From breakthroughs to day-to-day activities—complete transparency.

The Catchball Process

Two-way communication between organizational levels ensures that plans are realistic and that teams are committed to carrying them out.

Data-Driven Decisions

Bowling charts and KPI metrics replace subjective reports, ensuring objective monitoring of strategy implementation.

Focus on Breakthroughs

The methodology identifies breakthrough goals that require transformational changes in people, processes, and products.

Integration with Lean and Six Sigma

Hoshin Kanri serves as a framework that channels Lean, Six Sigma, and TPM tools toward achieving strategic priorities.

Steady growth

Leading companies such as Danaher and Ingersoll Rand have consistently outperformed the market over many years thanks to the Hoshin Kanri systematic approach.

Practice

Hoshin Kanri in Action: Global Leaders

This methodology has proven its effectiveness at the world’s most successful companies, which have consistently outperformed the market for decades.

Danaher Corporation

A global innovator in science and technology. The Danaher Business System, built on the principles of Hoshin Kanri and Lean, has served as the foundation for integrating hundreds of acquisitions and driving steady growth for over 30 years. The company evolved from Lean manufacturing (1980s) through growth (2001) to leadership (2009).

📈 +5,600% over 25 years vs. the S&P 500

Ingersoll Rand

A global leader in energy efficiency with more than 50 plants in more than 100 countries. The Premier Performance operating system combines Operational Excellence, Growth Excellence, and Winning Culture. Hoshin Kanri is used to roll out goals across the entire organization, which has 50,000 employees.

📈 +795% over 25 years vs. the S&P 500

How We Help

BPI Group: Your Partner in Strategy Implementation

We will help you develop a transformation roadmap in which each organizational unit will be assigned clear objectives aligned with the strategic goal.

Audit of the Current Status

We assess the maturity of the production system, management processes, and the level of alignment of goals within the organization

Formulating Breakthrough Goals

Together with your team, we define a strategic vision and 3- to 5-year breakthrough objectives

Construction of the X-matrix

We create a cascading system of goals, annual objectives, improvement priorities, and metrics for each level

Training and Implementation

We train leaders in the catchball process, PDCA cycle methods, and performance monitoring tools

Support and Adjustments

We support the organization in conducting regular reviews, adjusting plans, and building a culture of strategic execution