This document describes the Hoshin Kanri strategic planning methodology. It involves the following steps: 1. Identifying key business issues and establishing measurable objectives to address them. 2. Developing strategies and tactics to achieve goals using methods like Lean. 3. Implementing performance measures and focusing on business fundamentals. 4. Engaging all leaders in a planning process to share goals, plan achievement, and hold participants accountable. The process aims to focus an organization on shared goals and involve collective thinking to improve performance. An example at a college used brainstorming and ranking over 130 suggestions to identify top improvements.

1. HOSHIN KANRI

2. Introduction
• "Each person is the expert in his or her own job, and Japanese TQC
[Total Quality Control] is designed to use the collective thinking power
of all employees to make their organization the best in its field."
• It is a strategic planning/strategic management methodology based
on a concept popularized in Japan in the late 1950s by
Professor Kaoru Ishikawa.

3. Objectives
• Focus on a shared
goal.
• Communicate that goal
to all leaders.
• Involve all leaders in
planning to achieve the
goal.
• Hold participants
accountable for
achieving their part of
the plan

4. Hoshin Planning
• Identify the key business issues facing the
organization.
• Establish measurable business objectives that
address these issues.
• Define the overall vision and goals.
• Develop supporting strategies for pursuing the goals.
In the Lean organization, this strategy includes the
use of Lean methods and techniques.
• Determine the tactics and objectives that facilitate
each strategy.
• Implement performance measures for every business
process.
• Measure business fundamentals.

5. Hoshin Planning

6. Steps in Hoshin Planning
• DEFINE THE FOCUS—WHAT DO YOU WANT TO
IMPROVE?
• ENVISION POSSIBLE SOLUTIONS BY
BRAINSTORMING
• RANK THE SUGGESTIONS
• IMPLEMENT THE TOP SUGGESTIONS
• 1 – 3
• 1 – 5
• 1 – 10
• ASSESS THE RESULTS
• REPEAT THE PROCESS UNTIL QUALITY IS
MAXIMIZED

7. Benefits
• Gives all, or nearly all, interested parties a voice in
the planning process
• Allows planners to identify and address political
differences
• Functions, de facto, as an assessment of existing
plans
• By-product: Generates a number of good ideas
that can be implemented routinely though the
separate offices and units of the institution

8. Example
• The brainstorming session generated 119
suggestions for improving student learning and the
learning environment at Louisburg College
• At the conclusion of the session, participants were
invited to forward additional suggestions to the
Office of Institutional Effectiveness
• Eleven additional suggestions were submitted
electronically
• Total Number of Suggestions: 130

9. Example:THEASSESSMENT INSTRUMENT
[Step 1]
• Using codes, suggestions resulting from the Hoshin
Planning process were initially sorted according to
foci/themes:
• Campus Life [CL]
• Educational Support Services [ES]
• Facilities and Equipment [FE]
• Information Technology [IT]
• Learning Environment [LE]
• Mission and Values [MV]
• Student Engagement [SE]
• Student Learning [SL]
• Special Programs and Initiatives [SP]

10. HOSHINASSESSMENTAND PLANNING
THE LC RANKINGPROCESS: STEP 2
Original
Cohort
Selected Suggestions
[from four different cohorts]
A
Weight
B
Cohort
Ranking
C
Top 15
Ranking
FE-308 To secure funding for a new science
center
2 7 12
IT-405 To transform all classrooms into
master classrooms
3 7 4
SL-805 To create an honors program 3 11 2
LE-503 To improve class attendance 5 17 10
COLUMN A: Each participant was asked to assign a weight from 0 to 5 for
each of the 130 items. The higher the weight (5), the more important that
item is to the participant
COLUMN B: Each participant was asked to assign a cohort ranking for
each item in each original cohort, with the highest ranking in each cohort
equated to the number of items within that cohort and moving downward.
COLUMN C: Each participant was asked to rank his/her top 15 suggested
improvements overall, starting with the number 15 and working downward

11. Equalizing Weights and Values
[a prerequisite to overall rankings]
• 14 items—Campus Life [CL]
• 14 items—Educational Support [ES]
• 12 items—Facilities and Equipment [FE]
• 13 items—Information Technology [IT]
• 21 items—Learning Environment [LE]
• 09 items—Mission and Values [MV]
• 19 items—Student Engagement [SE]
• 18 items—Student Learning [SL]
• 10 items—Special Programs/Initiatives [SP]
• 130 items--TOTAL

12. Hoshin Assessment and Planning
The Ranking Process: Step 3
Cohort Suggestions
[selected]
A
Weight
B
Cohort
Ranking
C
Top 15
Ranking
A x B
Calculated
Cohort
Value
A x C
Calculated
Overall
Value
FE-308 To secure funding… 2 7 12 14 24
IT-405 To transform all… 3 7 4 21 12
SL-805 To create an honors… 3 11 2 33 6
LE-503 To improve class… 5 17 10 85 50
Based on the values placed in columns A, B, and C, values are determined
for the Calculated Cohort Value (Column A times Column B), and the
Calculated Overall Value (Column A times Column C). If no value is assigned
for column C, then there will be no Calculated Overall Value. If 0 is assigned
for the weight in column A, there will be no Calculated Cohort Value and
Calculated Overall Value.

13. Hoshin Assessment and Planning
The Ranking Process: Step 4
Cohort Suggestions
A
Weight
B
Cohort
Ranking
C
Top 15
Ranking
Number
of Items
in Cohort
Cohort
Factor
Cohort
Factor
Value
FE-308 To secure
funding…
2 7 12 12 21/12 1.750
IT-405 To transform all… 3 7 4 13 21/13 1.615
SL-805 To create an
honors…
3 11 2 18 21/18 1.167
LE-503 To improve
class…
5 17 10 21 21/21 1.000
The Cohort Factor is used to equalize and rank scores between the various
cohorts. Since the highest number of items among the cohorts was 21, the
number 21 is used (always) as the numerator of the Cohort Factor. The
denominator is the number of items within the selected item cohort. The
Cohort Factor Value is the decimal representation of the Cohort Factor.

14. HoshinAssessmentand Planning
The Ranking Process: Step 5
Cohort Suggestions
Selected [4 of 130]
[four different cohorts]
D
Cohort
Average
For
Item
E
Cohort
Factor
Value
D X E
Weighted
Cohort
Average
For Item
Final
Cohort
Rank
FE-308 To secure funding… 34.93 1.750 61.13 11
IT-405 To transform all… 35.62 1.615 57.53 11
SL-805 To create an honors… 51.53 1.167 60.13 17
LE-503 To improve class… 62.84 1.000 62.84 19
After all surveys have been entered, the Cohort Average is calculated to
indicate the mean of that item. The Weighted Cohort Average is the product
of the Cohort Average and the Cohort Factor Value. The Final Cohort Rank is
based on the chronological rank within the cohort. The higher the Final
Cohort Rank value is, the more important it is within that cohort.

15. HoshinAssessment and Planning
The Ranking Process: Step 6
Cohort Suggestions
[selected]
Weighted
Overall
Item
Average
Final
Overall
Rank
FE-308 To secure funding… 19.83 122
IT-405 To transform all… 18.85 120
SL-805 To create an honors… 16.32 117
LE-503 To improve class… 12.43 111
After all surveys have been entered, the Weighted Overall Average is
calculated to indicate the mean of that item. The Final Overall Rank is based
on the chronological rank when compared to all survey items. There were a
total of 130 items on the 2006 Louisburg College Hoshin Assessment and
Planning questionnaire. A value of 130 for the Final Overall Rank would
indicate the item of highest importance to survey participants.

16. HoshinAssessmentand Planning
The Ranking Process: Step 7
Cohort Suggestions
[selected]
A
Cohort
Average
B
Factor
Value
A x B
Weighted
Cohort
Average
Final
Cohort
Rank
A x C
Weighted
Overall
Average
Final
Overall
Rank
FE-308 To secure funding… 34.93 1.750 61.13 11 19.83 122
IT-405 To transform all… 35.62 1.615 57.53 11 18.85 120
SL-805 To create an
honors…
51.53 1.167 60.13 17 16.32 117
LE-503 To improve class… 62.84 1.000 62.84 19 12.43 111
The Cohort Average, Weighted Cohort Average, and Weighted Overall
Average along with Final Cohort Rank and Final Overall Rank are shown
together in the chart for the selected items. The chart above is sorted by the
Weighted Overall Average column from highest to lowest value and the Final
Overall Rank is then assigned based on the number of surveyed items.