Hoshin Planning, also known as Hoshin Kanri or simply Hoshin, is a strategic planning and management framework that originated in Japan. The term “Hoshin” can be translated as “compass needle,” and the framework is often described as a way to align an organization’s strategy and goals, ensuring that everyone within the organization is working toward the same objectives. Hoshin Planning is often associated with the Total Quality Management (TQM) and Lean management approaches and is widely used in various industries for strategic management.

The key components of Hoshin Planning include:

1. Vision: Hoshin Planning starts with the creation of a clear and compelling long-term vision for the organization. This vision represents what the organization aspires to become in the future.

2. Breakthrough Objectives: Breakthrough objectives are high-level, overarching goals that support the vision. These objectives are ambitious and typically require significant effort and change to achieve.

3. Annual Objectives (Hoshin Goals): Annual objectives are specific, measurable, and time-bound goals that are set each year to help move the organization closer to its vision and breakthrough objectives. These annual objectives should be aligned with the breakthrough objectives.

4. Resource Allocation: In Hoshin Planning, resources, including people, time, and budget, are allocated strategically to support the achievement of the annual objectives. This ensures that the organization’s efforts are focused on the most critical priorities.

5. X-Matrix: The X-Matrix is a visual tool that represents the alignment of the vision, breakthrough objectives, annual objectives, and the key performance indicators (KPIs) that will be used to measure progress. It helps ensure that there is alignment and transparency in the organization’s strategic planning.

6. Catchball: Catchball is a collaborative and iterative process in Hoshin Planning that involves communication and feedback between different levels of the organization. Ideas and feedback flow up and down the hierarchy, ensuring that the strategic goals are understood and that everyone contributes to the planning process.

7. PDCA (Plan-Do-Check-Act): Hoshin Planning often incorporates the PDCA cycle, a continuous improvement framework. After the annual objectives are set, the organization periodically reviews progress (Check), makes adjustments as needed (Act), and continues to implement the plan (Do).

Hoshin Planning is designed to create a culture of continuous improvement and strategic alignment within an organization. It emphasizes the importance of involving all levels of the organization in the planning process, as well as the ongoing monitoring and adjustment of strategic initiatives to ensure they remain aligned with the organization’s vision and goals.