The need to transform your business strategy arises from time-to-time. New, competing technology and business models, emerging global competition, and changing customer economics and demographics are among the most common reasons. The list of catalysts for strategic transformation are vast.

We don't think we'd be overstating it to say that a sound strategy is perhaps the most important element of a business. We do think, however, that the approach many companies take to strategy today is flawed. Real strategy tends to be much more of an evolutionary process than many like to admit. We've all heard it said: "we need to pick a strategy and stick to it." Unfortunately though, the results of many companies don't validate that approach. Further, many companies think they need a long-term strategy. There, too, the evidence is mixed. Some of the most successful companies are those that are willing to revisit their strategy often and are willing to deviate from strategy on short notice to seize emerging opportunities.

Connecting Intent with Execution

Strategic Planning with Hoshin Kanri is a methodology for translating strategic vision into actionable objectives that are aligned with corporate priorities. From its Japanese roots, the literal translation of Hoshin is "shining metal compass or pointing direction." The translation of Kanri is simply "management."

The Hoshin Kanri process aligns business objectives and metrics in a coordinated, top-down, bottom-up way. If Strategic Thinking is the formulation of an ideal future, then Strategic Planning is the holistic integration of that future into a viable configuration for execution.

Successful strategic planning is done in a way that optimizes the synergistic interplay of inter-dependent processes, functions, objectives, metrics, tactics, people, review cycles and operating systems. With specific Hoshin Kanri methods, strategic direction is harnessed corporately - and locally - to yield a cause-and-effect system for strategically enriched execution.

Strategic Planning and TPE

In the context of Total Performance Excellence (TPE), Strategic Planning is a fundamental and perpetually ongoing activity. It ensures that the performance objectives of the organization are rationally developed, well defined, monitored and continually adapted based on communication and system feedback.

Ideally, the input to effective Strategic Planning is a strategic vision that has the substance to transform an industry.

The outputs of Strategic Planning with Hoshin Kanri methods are several fold.

1. Your leadership team is galvanized around a transformational vision.
2. That vision is translated into a tree of business priorities that are causally cascaded through the organizational hierarchy.
3. Metrics and accountability are attached to each objective at all levels.
4. Specific methodologies, projects and people are deployed to achieve the objectives.
5. Periodic reviews are conducted to refine direction and objectives, and to ensure execution to plan.

Want to Learn More about Strategy Transformation?

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