hoshin

Hoshin Kanri, often shortened to Hoshin, is a Japanese management method for aligning an organization's strategic goals with its actions. The word hoshin means direction or compass needle, and kanri means management or control. The approach emphasizes translating long-term vision into annual objectives, deploying them throughout the organization, and validating progress through structured review and learning.

Hoshin Kanri originated in Japan in the 1960s and is credited to management theorist Yoji Akao, who developed the approach to integrate strategic planning with day-to-day operations. It became a core element of lean management practices and is widely used in manufacturing and services to ensure that the work of all levels supports the enterprise’s critical priorities.

The routine centers on a catchball process—an iterative dialogue between levels to negotiate objectives, measures, and responsibilities. Teams develop a planning map, often called an X-matrix, that links “what” will be achieved with “how” it will be accomplished and by whom and when. Plans are implemented using PDCA (plan-do-check-act) cycles and reviewed regularly, typically quarterly, to adjust as needed.

Benefits include improved alignment, focus on breakthrough objectives, and clearer accountability. Challenges include the time and discipline required for thorough catchball, the need for strong leadership support, and potential bottlenecks if midcourse changes are not managed carefully.