Hoshin sounds like Theory of Constraints

Having attended the TOC ICO conference last week, where Eli Goldratt talked extensively about Strategy & Tactics Trees, I saw immediate parallels when reading Sean Kearny's, The Hoshin Process:

"The basic premise behind the hoshin plan is that the best way to obtain the desired result is to ensure that all employees in the organization understand the long-range direction and that they are working according to a linked plan to make the vision a reality. The second aspect of the plan is that there are fundamental process measures which must be monitored to assure the continuous improvement of the organization's key business processes. In essence, all are heading in the same direction with a sense of control...

I particularly like this next part.  This is in complete alignment with the TOC concept of making all decisions based on their impact on Throughput, Operating Expense and Investment.

"All specific improvements or changes to be made by the organization should contribute directly to the business objectives. These are the hoshin strategies chosen by the leadership team. Each strategy has a strategic goal and process performance measures to continuously monitor performance on each individual strategy. This ensures that the hoshin strategies are being properly carried out and progressing toward their individual strategic goals. If all strategies are successfully accomplished (all strategic goals met), the overall hoshin goal also will be met." /Strategic Planning With Hoshin/

The article goes into more detail (obviously).  The other thing to note is that the article is by David Kenyon from Quality Digest, May 1997.

 

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