06 Aug Hoshin Kanri and the art of lean transformation
The Toyota way to rapid lean transformation
Believe it or not there is a failure rate of 70% plus, for business transformation initiatives. This figure is quite staggering. Indeed, some researchers put failure as high as 80% – 90%. Consequently, it is not surprising that CEOs are wary about instigating major change. This is why Hoshin Kanri and the art of lean transformation is so important to anyone confronted with a major change or upheaval.
This is also why we do not have to be fatalistic about failure. The reason for this high level of failure is to do with the cone 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 Hoshin Kanri offers a straightforward approach to business transformation. This approach is in the form of a sophisticated business operating system. As such, any enterprise above micro level can import Hoshin Kanri to ensure better success with their improvement process.
The system has a great pedigree. Firstly, Toyota pioneered Hoshin Kanri back in the 1960s. But since then other global firms have followed their cue. Notable examples are Sony, Hewlett Packard and Intel. These global players are attracted to Hoshin Kanri for one very good reason. The fact is, that experience shows Hoshin Kanri improves the success ratio of strategy planning and improvement initiatives.
Hoshin Kanri works 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 organizational 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. In addition they provide you with invaluable short cuts to get where you want to be.
Used as a business operating system, Hoshin Kanri drives: –
1. a major uplift in the net worth of your enterprise (Read our case study of a 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 our case study about 57% increase in productivity).
6. a unified focus at every level of the organization.
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 you can achieve successful transformation consistently and reliably.
Jeremy Old specializes in Hoshin Kanri planning. Primarily, his methods help owner managers improve their businesses. But he also uses his methods to handle crises and manage strategic change initiatives.
He is author of ‘Reinventing management thinking’ – using science to liberate the human spirit’. This groundbreaking book is now available on Amazon and good book stores.
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