Hoshin Kanri is the lean tool focusing on strategic planning and execution. Hoshin Kanri is a continuous improvement process that enables organisations to align their activities with their long-term goals and objectives. One of the key tools used in Hoshin Kanri is the Hoshin Kanri Matrix, also known as the X-Matrix.
The Hoshin Kanri Matrix includes four interrelated components:
Long-term vision: This component outlines the organisation’s overall mission and vision, providing a clear direction.
Annual objectives: These are specific goals that the organisation wants to achieve in the upcoming year. The annual objectives should be closely aligned with the long-term vision.
Strategies: These are the broad approaches that the organisation will use to achieve its annual objectives. Strategies should be specific and measurable.
Metrics: These are the specific measures that will be used to track progress towards achieving the annual objectives. Metrics should be clearly defined and aligned with the organisation’s long-term vision.
The Hoshin Kanri Matrix helps organisations visualise the alignment between their long-term goals and daily activities. By using the Matrix, organisations can identify the key areas that require focus and ensure that everyone is working towards the same objectives.
X-Matrix Hoshin Kanri
The X-Matrix is a strategic planning tool used in the Hoshin Kanri methodology to align an organisation’s long-term vision and goals with its day-to-day operations. It is a visual representation of the Hoshin Kanri process that combines the Hoshin Kanri Matrix with the Balanced Scorecard. The X-Matrix includes the organisation’s long-term vision, annual breakthrough objectives, annual targets, Key Performance Indicators (KPIs), and initiatives. By using the X-Matrix, organisations can identify the key areas that require focus and ensure that everyone is working towards the same objectives. The X-Matrix also helps organisations to track progress towards achieving their goals and adjust their initiatives as necessary.