Policy Deployment

Policy Deployment defined:

Policy deployment, also known as Hoshin Kanri, is a structured Lean management system that aligns an organization's long-term strategic goals with daily operations.

By cascading high-level goals down to individual tasks, it ensures every employee works toward common objectives, reducing waste and improving communication.

In Kaizen and Total Quality Management (TQM), the two key management concepts are Cross-Functional Management and Policy Deployment. In Kaizen terms, policy deployment is the process of implementing the policies of a Kaizen program directly through line managers and indirectly through cross-functional organization.

Policy Deployment: key compinents and the process

Key Aspects of Policy Deployment

Benefits: reduces waste/duplication, focuses resources, improves cross-functional cooperation, and creates organizational buy-in.

Methodology: Uses the Plan-Do-Check-Act (PDCA) cycle to align, execute, and review strategic goals.

The 4 Phases:

① Establish breakthrough goals (3-5 years),

② Develop annual objectives,

③ Deploy to operations,

④ Implement and review (monthly/annual).

Catchball Process: a critical, interactive communication method where goals are discussed and refined up and down the organization to ensure alignment.

Tools: Commonly utilizes the X-Matrix to map strategic objectives, targets, and responsible individuals.

The Process Flow

Set "True North" (Vision): Define long-term (3-5 year) breakthrough goals based on the organization's mission.

Define Annual Goals: Translate long-term goals into annual, measurable, numerical targets.

Deploy via Catchball: Engage all levels to turn goals into action plans, fostering commitment.

Execute & Review (PDCA): Use regular reviews (monthly/quarterly) to track progress and make adjustments to ensure objectives are met.

Organizational Balanced Scorecard

The organizational balanced scorecard encompasses the organizational vision, mission, core values, critical success factors, objectives, performance measures, targets and improvement actions.

This corporate scorecard is communicated and translated into all business unit balanced scorecards, team balanced scorecards and the performance plans of individual employees and their personal balanced scorecards.

In connection with this policy deployment, each employee is stimulated to contribute to the shared organizational strategy.