06 Aug Hoshin Kanri and the art of lean transformation
The failure rate of 70% plus, for business transformation initiatives is quite staggering (Some researchers put failure as high as 80% – 90%). Consequently, it is not surprising that CEOs are wary about instigating major change.
However, we do not have to be fatalistic about failure. Although 70% – 90% might be a demoralizing figure, this high failure rate is not actually surprising. The reason for this level of failure is to do with the usual way we go about strategic change. Like anything else in life, doing things the right way makes all the difference between success and failure.
So, it is heartening to know that there is a straightforward but holistic approach to making business transformation work. This approach is sufficiently standardized in the form of a sophisticated business operating system known as Hoshin Kanri (Sometimes called Policy Deployment). As such, any enterprise above micro level can import Hoshin Kanri and ensure a better success with their improvement process.
The system has a great pedigree. Toyota was the first to pioneer Hoshin Kanri. But since, then global firms such as Sony, Hewlett Packard and Intel have also taken up the idea. The attraction for these global players is precisely that Hoshin Kanri improves the success ratio for their strategy planning and improvement initiatives.
Hoshin Kanri is for small businesses as well
But you don’t have to be the chairman of Toyota to benefit from Hoshin Kanri. In fact these methods are equally helpful in upping the success rate of change or improvement initiatives in almost any organisational setting. And this includes small and medium sized enterprises.
By adopting Hoshin Kanri as a business operation system, you will be able to identify and exploit those great opportunities out there. At the same time, the process removes the hidden constraints that hold you back from your goals and gives you invaluable short cuts to get where you want to be.
Used as a business operating system, Hoshin Kanri drives: –
1. Major uplift in the net worth of your enterprise (Read about an example of 500% uplift in value)
2. Rapid business growth
3. Excellent returns on investment
4. Improved retention of satisfied customers
5. High levels of employee engagement (Read case study about 57% increase in productivity)
6. A unified focus at every level of the organisation
If you want to learn more about Hoshin Kanri’s amazing power to reduce the risks inherent in major change initiatives read our white paper., “Hoshin Kanri and the art of rapid business transformation first explores the reasons why the usual approaches go wrong. Equally important, the paper explains why, with a more scientific approach, you can expect to achieve successful transformation consistently and reliably.