Hoshin Kanri: Understanding and Applying the Method for a High-Performance Industrial Strategy

Written by Agathe Lecomte

Jul 9, 2025

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Introduction

What is the Hoshin Kanri method?

The Hoshin Kanri method, also known as “policy deployment” or “management by breakthrough”, is a strategic planning process aimed at aligning a company’s goals with concrete actions carried out on the ground. It is based on a structured approach that translates the long-term vision into annual action plans, involving every level of the organization.

The main objective is to ensure consistency between the overall strategy and the daily work of teams, while promoting cross-functional communication and accountability at all hierarchical levels.

Why is it essential to modern industry?

Today, many industrial companies struggle to deploy their strategy effectively, due to compartmentalization between departments, a lack of clear priorities, a failure to monitor results or poor team mobilization.

The primary objective is to ensure alignment between the overall strategy and the daily activities of teams, while fostering cross-functional communication and accountability at all levels of the organization.

Who it’s for (managers, project managers, consultants)

Hoshin Kanri is primarily intended for executives, project managers, and consultants who are eager to transform their organization around a shared vision. It offers a powerful framework to align priorities, structure strategic initiatives, and involve all teams in a collective and continuous improvement effort.

🧩 Did you know?
The Hoshin Kanri method was massively adopted by Toyota as early as the 1960s to synchronize the actions of all its teams with long-term strategic objectives.

Origins and fundamental principles

Meaning of “Hoshin Kanri” in Japanese

The term Hoshin Kanri is composed of two Japanese words:

  • “Hoshin” (方針) means “direction” or “compass”.
  • “Kanri (管理) means “management” or “steering”.

Together, they can be translated as “steering by direction” or “vision-driven management.” Beyond the literal translation, the strategic meaning of the term refers to an organization’s ability to transform a long-term vision into clear action plans at all hierarchical levels.

The foundations of breakthrough management

Unlike continuous improvement (Kaizen), which focuses on incremental gains, Hoshin Kanri introduces the concept of strategic breakthrough. This refers to an ambitious goal—often a break from the organization’s usual practices—that requires collective commitment and genuine transformation.

Example: a company aiming to double its OEE within 3 years will need to rethink its processes, tools, and cross-team collaboration.

Reporting to Lean Management and Continuous Improvement

The Hoshin Kanri method was born in a Japanese industrial context influenced by Lean management and the PDCA cycle. It fully integrates Lean principles—waste elimination, empowerment, continuous improvement—while adding a strong strategic layer. This makes it possible to provide clear direction to performance optimization efforts.

🧩 Myth vs. reality
❌ Hoshin Kanri is a cumbersome method reserved for large companies.
✅ It is perfectly applicable to SMEs with a clear vision and a desire for strategic structuring.

Objectives and benefits of the method

Aligning strategy and operational execution

At the heart of the Hoshin method lies a cascade of objectives: the strategic vision is translated into concrete priorities at every level. This helps prevent the common disconnect between top management’s intentions and the daily work of teams. Everyone knows what needs to be done, why it matters, and what results are expected.

Creating a Culture of Engagement and Continuous Improvement

Hoshin Kanri promotes transparency, communication, and collective ownership of plans. Through mechanisms such as Catchball, exchanges between hierarchical levels strengthen collaboration. A culture of feedback and visual management gradually takes root within the organization.

Concrete results in the industry

Industrial companies that have adopted Hoshin Kanri find :

  • An increase in TRS (up to +15 pts)
  • Reduced processing times
  • Improved KPI tracking
  • Fewer operational “irritants” (stoppages, drifts, oversights)

🧩 Key benefit
Hoshin Kanri transforms strategy into a measurable, shared action plan, making it easier to align the whole organization around concrete, realistic objectives.

Implementing Hoshin Kanri in your company

Preparing the organization and defining the vision

First and foremost, the implementation of Hoshin Kanri begins with a strategic diagnosis: this involves assessing the current state of the organization, identifying the obstacles to performance and clarifying medium- and long-term priorities. This work involves both management and operational staff.

Once this assessment has been made, the company can formalize its vision. This vision must be shared, concrete and meaningful. It must be based on the organization’s values and mission, and project an ambitious course over several years. It is this vision that will guide every stage of the Hoshin process.

🧩 Checklist – Prerequisites before deploying Hoshin Kanri :

  • A clear strategic vision
  • Mobilized management
  • Committed middle leaders
  • Reliable data to manage plans
  • Time dedicated to monitoring and coordination

The 7 Key Steps of Hoshin Kanri Deployment

The method is based on a structured, sequenced cycle that ensures rigorous alignment of plans and actions:

  1. Strategic vision
    → Clarify the company’s long-term direction
  2. Long-term objectives
    → Identify priority breakthrough areas over the next 3 to 5 years
  3. Annual objectives
    → Define measurable targets for the year
  4. Hierarchical deployment
    → Allocate responsibilities by management level
  5. Action plans
    → Draw up concrete tasks, with milestones and indicators (KPIs)
  6. Monthly monitoring
    → Analyze discrepancies, adjust actions, lead teams
  7. Annual review
    → Assess results, capitalize on learning and restart the cycle

🧩 Point de vigilance
Without a shared vision, the process becomes a mere planning exercise. Hoshin Kanri requires clear, embodied leadership.

How do you involve your teams in the process?

The success of Hoshin depends on the active participation of teams at all levels. It’s not a matter of “deploying from above”, but of co-constructing objectives through ongoing dialogue between decision-makers and operational staff.

The use of visual tools (like the X-matrix) and collaborative mechanisms (like Catchball) facilitates ownership and gives visibility to priorities.

Middle management plays a fundamental role here: it must embody the project, lead the steering rituals and circulate information in both directions.

Examples of successful implementation

A multi-site industrial company used Hoshin Kanri to structure its digital transformation plan. Thanks to the method, it was able to synchronize its strategic priorities with its technical projects, improve its OEE by +12 points in 18 months, and establish a visible results culture at all levels.

Teams gained greater clarity, monthly reviews enabled rapid action to be taken on discrepancies, and the entire organization refocused on common objectives.

The strategic tools of Hoshin Kanri

The X-Matrix

The visual heart of the Hoshin system, the X-matrix displays the following on a single page:

  • La vision stratégique
  • Long-term objectives
  • Annual targets
  • Key projects
  • Steering KPIs
  • The people in charge

Each axis of the matrix crosses these elements to ensure the coherence and traceability of the strategic plan. It is designed to be shared and commented on as a team.

🧩 Practical tip
Use color codes to link objectives to actions, and highlight sticking points.

Catchball for top-down and bottom-up communication

Catchball is a process of dialogue: objectives are “launched” by management, discussed and then adjusted with stakeholders. This allows :

  • Involve teams in building plans
  • Adjust objectives to suit the terrain
  • Unite levels around a common logic

🧩 Expert advice
Never launch an action without a Catchball. This will reduce buy-in and block momentum.

The PDCA cycle and continuous improvement

Hoshin is based on the PDCA cycle (Plan, Do, Check, Act). It structures the steps, ensuring that each action is planned, executed, checked and improved. This framework prevents drift and anchors improvement in managerial routine.

Visual tools: A3 Thinking, visual management

A3 Thinking structures problem-solving on a single page. Coupled with visual aids (strategy wall, field indicators), it facilitates understanding of results, communication, and team autonomy in managing actions.

The strategic tools of Hoshin Kanri

The X-Matrix

The visual heart of the Hoshin system, the X-matrix displays the following on a single page:

  • Strategic vision
  • Long-term objectives
  • Annual targets
  • Key projects
  • Steering KPIs
  • The people in charge

Each axis of the matrix crosses these elements to ensure the coherence and traceability of the strategic plan. It is designed to be shared and commented on as a team.

🧩 Practical tip
Use color codes to link objectives to actions, and highlight sticking points.

Catchball for top-down and bottom-up communication

Catchball is a process of dialogue: objectives are “launched” by management, discussed and then adjusted with stakeholders. This allows :

  • Involve teams in building plans
  • Adjust objectives to suit the terrain
  • Unite levels around a common logic

🧩 Expert advice
Never launch an action without a Catchball. This will reduce buy-in and block momentum.

The PDCA cycle and continuous improvement

Hoshin is based on the PDCA cycle (Plan, Do, Check, Act). It structures the steps, ensuring that each action is planned, executed, checked and improved. This framework prevents drift and anchors improvement in managerial routine.

Visual tools: A3 Thinking, visual management

A3 Thinking structures problem-solving on a single page. Coupled with visual aids (strategy wall, field indicators), it facilitates understanding of results, communication, and team autonomy in managing actions.

Limits, constraints and common errors

Besoin d’un fort engagement managérial

The Hoshin Kanri method cannot work without a clear commitment from top management. The strategic vision must be actively supported and translated into concrete priorities. An internal sponsor, often a member of the management committee, must guarantee continuity and consistency of deployment.

Time and resources to anticipate

Implementing Hoshin requires a significant initial investment. Training, collaborative workshops, structuring indicators, running meetings: each stage requires time, appropriate tools and a sustained level of coordination, especially in the first year.

Risks of complexity or poorly controlled rigidity

Some organizations over-design the method: accumulation of KPIs, excessive control, multiplication of validation levels. This can lead to a loss of meaning, or even rejection of the process by teams.

Examples of failures to avoid

Common pitfalls include starting without a clear vision, stopping after a few months for lack of regular management, or entrusting the method to a single department isolated from the rest of the company.

🧩 Common mistakes
Thinking that Hoshin Kanri is simply a reporting tool.
❌ It’s actually a complete strategic management system, which structures the company’s actions on several levels, over the long term.

Integrate Hoshin Kanri with TEEPTRAK solutions

How do our tools facilitate strategic alignment?

At TEEPTRAK, we believe that the Hoshin method is most effective when based on reliable data that is accessible in real time, and easy to interpret. Our solutions connect strategic objectives with operational performance indicators, via visual and customizable dashboards.

Example of OEE monitoring in a Hoshin Kanri logic

At a plant in the agri-food sector, the implementation of our PerfTrak system enabled the OEE per line to be linked directly to the annual objectives defined in the Hoshin matrix. The project team was able to monitor deviations day by day, adjust action plans, and engage operators thanks to a clear visualization of progress.

Measurable ROI, real-time management and team involvement

Our tools bring strategic management to life: each manager visualizes his or her objectives, monitors KPIs, identifies deviations and acts accordingly. The result: time-saving reporting, improved coordination, and measurable results from the very first months.

Our ready-to-use, field-compatible solutions

Our systems are plug & play, deployable in less than an hour, with no disruption to production. Interoperable with any equipment, they can be easily integrated into a Hoshin approach, whatever the organization’s digital maturity.

🧩 Key figure
+29% increase in production at a customer plant after alignment via PerfTrak.

FAQ – Frequently asked questions about Hoshin Kanri

Qu’est-ce que l’outil Hoshin Kanri ?

It is a strategic steering framework that helps link the corporate vision to concrete action. It combines visual tools like the X-matrix with a collaborative collaborative process to ensure consistency between strategy and the day-to-day work of teams.

What does Hoshin mean in Japanese?

“Hoshin” translates as “directional needle or “strategic compass. This term expresses the idea of guiding the organization in a specific direction. Combined with “Kanri” (management), it becomes a management method focused on long-term orientation and collective alignment.

What's the difference between Hoshin Kanri and conventional strategic deployment?

The Hoshin Kanri focuses on the co-construction of planscontinuous continuous feedback and team empowerment. In contrast to top-down deployment, it relies on adjustment loops and a strong interaction between hierarchical through the Catchball process.

What is breakthrough enhancement?

Breakthrough enhancement aims for ambitious ambitious resultsIt often breaks with current practices. It is distinguished from incremental progress by its strategic scope and its lasting impactThis is a key factor in the success of any project, provided it is properly implemented, planned and monitored over several annual cycles.

From strategic direction to concrete action

Key Takeaways on Hoshin Kanri

Hoshin Kanri is much more than a tool: it’s a complete strategic management method, enabling vision, priorities and actions to be aligned in a structured way. It promotes coherence, clarity and collective performance.

A powerful method for linking vision and action

Accessible, progressive, and applicable to all types of organizations, it is particularly well-suited for industrial companies looking to strengthen their strategic management and engage their teams in a continuous improvement mindset.

We support you in your industrial strategy

At TEEPTRAK, we help you to implement this approach through operational tools connected to the field.
➡️ Request a demoDiscover our Academy or talk to our experts to unleash the potential of your strategy.

🧩 Expert advice
Start small: pilot the method on a team or a production line before extending it to the whole company.

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