Embracing Purposeful Management: A Deep Dive into Hoshin Kanri and “Managing on Purpose”

In today’s fast-paced, ever-changing business landscape, aligning every team member with a unified vision is no longer a luxury – it’s a necessity. For leaders striving to drive sustainable growth and continuous improvement, the lean management approach offers a proven methodology for success. One such powerful methodology is Hoshin Kanri. Hoshin Kanri core component of a Lean Management System that seamlessly integrates with daily management and the A3 problem-solving process. At the UK Lean Summit in April, Managing on Purpose author Mark Reich, will detail this approach, offering an indispensable guide for leaders determined to steer their organisations toward excellence.

What Is Hoshin Kanri?

At its core, Hoshin Hanri is about aligning an organisation’s long-term vision with its day-to-day operations. Hoshin Hanri is often referred to as strategy deployment or policy deployment. It ties together an organisation’s broad purpose, its strategic direction, and the goals that drive daily execution. Think of it as a dynamic navigational tool that guides the entire organisation. Whether you have 10 team members or 100,000 – toward a shared destination.

Dynamic Way-Finding for the Modern Enterprise

Hoshin Kanri is not static; it is a living, breathing process built on the principles of Plan-Do-Check-Act (PDCA). It encourages:

• Long-cycle PDCA: A rigorous, methodical process that unfolds over months and years, ensuring that strategic goals remain aligned with real-world conditions.
• Short-cycle PDCA: Daily management practices that keep teams agile and responsive, continually refining processes based on immediate feedback.

This dual-cycle approach means that while daily operations adapt fluidly to change, the overarching strategy is never lost sight of.

The Story Behind Managing on Purpose

Managing on Purpose is more than just a book; it’s a workbook designed to transform the way organisations think about strategy and execution. The guide builds upon decades of Lean Enterprise wisdom. This includes the lessons from foundational texts like Learning to See and Managing to Learn. With his 23 years at Toyota and extensive experience coaching business leaders across various industries, Mark Reich brings a unique perspective to the Hoshin Kanri process.

Mark Reich’s Journey: Four Levels of Maturity

Mark Reich’s firsthand experience with Toyota’s Hoshin Kanri system spans several key phases:

• Immersion in Toyota’s Pure, Mature System: As an employee at Toyota’s headquarters, Reich was exposed to the nuances of a mature Hoshin Kanri process that has been finely tuned over decades.
• Corporate Strategy Leadership: In his role as Assistant General Manager, he was responsible for deploying Hoshin Kanri across North American manufacturing, ensuring that a diverse, haphazard organisational landscape was unified by a single strategic vision.
• Transformation at the Toyota Supplier Support Center: Here, Reich and his colleagues navigated the challenging transition of a core operational unit, illustrating the power of Hoshin Kanri to drive meaningful change even in non-profit settings.
• Coaching Across Industries: For over a decade at the Lean Enterprise Institute (LEI), Reich has worked with companies large and small, tailoring the Hoshin Kanri process to various environments and proving its universal applicability.

Through these diverse experiences, Managing on Purpose emerges as not just an academic treatise but as a practical toolkit enriched with real-world insights and a compelling narrative. The book uses the fictional case study of TrueMowers—a company grappling with competitive pressures, market share decline, and internal challenges – to illustrate how Hoshin Kanri can be a game changer even in turbulent times.

The Benefits of Hoshin Kanri

Implementing Hoshin Kanri can have profound effects on an organisation. Here are some of the key benefits highlighted in Managing on Purpose:

1. Unified Vision and Purpose

Imagine every team member, regardless of their role or location, being fully aligned with the organisation’s vision. Hoshin Kanri creates a framework where everyone understands not just what they do, but why they do it. This alignment is not only inspirational – it is also practical. When every individual sees their role in achieving the broader vision, motivation and accountability naturally follow.

2. Enhanced Communication and Collaboration

One of the standout features of Hoshin Kanri is its emphasis on collaborative planning. Unlike top-down management styles that can leave team members disconnected from the decision-making process, Hoshin Kanri is both top-down and bottom-up. It encourages open communication, ensuring that insights and challenges from every level of the organiSation are shared and addressed. This collaborative approach fosters a culture of collective ownership. This enables managers and employees work hand-in-hand to navigate challenges and seize opportunities.

3. Rigorous Execution with Flexibility

The PDCA cycle embedded in Hoshin Kanri ensures that plans are not static. As strategies are executed, learnings are continuously fed back into the planning process, creating a loop of constant improvement. This dynamic process means that even as the market shifts or unforeseen challenges arise, the organisation can adapt swiftly without losing sight of its long-term goals.

4. Operational Excellence

Hoshin Kanri is more than a planning tool—it’s a comprehensive management system that drives operational excellence. By integrating strategy with daily execution, it allows organisations to identify bottlenecks and inefficiencies in real time. Leaders can then deploy targeted improvements, turning challenges into opportunities for innovation and growth.

5. Cultural Transformation

At its heart, Hoshin Kanri is about more than just numbers and charts; it’s about cultivating a mindset of ownership and continuous learning. It empowers every member of the organisation to take responsibility for not just their tasks but for the collective success of the enterprise. This cultural shift – from passive compliance to active engagement – can transform how an organisation responds to both internal and external challenges.

Toyota: A Benchmark in Hoshin Kanri Mastery

No discussion of Hoshin Kanri would be complete without highlighting Toyota’s remarkable journey. In the early 1960s, Toyota recognised that to compete on a global scale. It needed a robust management system that went beyond traditional hierarchical models. Enter Hoshin Kanri, which Toyota adopted and refined through decades of trial and success.

The Origins and Evolution at Toyota

Inspired by the Total Quality movement and supported by insights from global thought leaders such as W. Edwards Deming and Joseph Juran, Toyota’s approach to Hoshin Kanri was revolutionary. Early in its implementation, the company challenged its leaders to transform abstract strategies into concrete, actionable plans. This transformation was not without its challenges, but Toyota’s relentless commitment to improvement allowed it to build one of the most resilient and effective management systems in the world.

Actionable Guidance and Tools

Managing on Purpose does not stop at theory. Mark provides step-by-step guidance on how to implement W. Edwards Deming within your organisation. From planning and execution to continuous learning and adaptation, the workbook is packed with practical tools and exercises that empower leaders to:

• Engage their teams in the planning process.
• Identify and address gaps between planning and execution.
• Cultivate a collaborative environment that encourages shared accountability.
• Learn from everyday challenges and recalibrate strategies in real time.

The Transformative Impact of Hoshin Kanri on Your Organisation

Implementing Hoshin Kanri through the insights provided in Managing on Purpose can set your organisation on a path to exceptional performance. Here’s a closer look at the transformative impact:

Strategic Alignment Across All Levels

Hoshin Kanri creates a unified direction for the organisation. Every employee understands how their daily tasks contribute to the bigger picture, resulting in:

• Clear communication: Enhanced clarity on the organisational purpose and how individual roles intersect with overall goals.
• Empowered teams: Employees are encouraged to share insights and feedback, fostering a sense of ownership and engagement.
• Agility in decision-making: The iterative PDCA cycle enables organisations to pivot quickly in response to market changes and operational challenges.

Robust Problem-Solving Capabilities

One of the most significant benefits of Hoshin Kanri is its ability to develop robust problem-solving skills. By integrating daily management with strategic planning, the process:

• Identifies obstacles early: With continuous feedback loops, issues are spotted and addressed before they escalate.
• Encourages collective learning: The sharing of experiences across teams means that the lessons learned in one area can benefit the entire organisation.
• Fosters innovation: By viewing challenges as opportunities for improvement, teams are more likely to experiment with creative solutions.

Hoshin Kanri – Where to Start

For leaders inspired by Managing on Purpose, the journey toward adopting Hoshin Kanri may seem daunting- but it doesn’t have to be. Here are some actionable steps to begin integrating this approach into your organisation:

1. Start with Purpose: Ensure that every team member understands the organisation’s vision and their role in achieving it. Clear communication is key to establishing a shared purpose.
2. Engage in Collaborative Planning: Break down silos by involving leaders, managers, and front-line employees in the planning process. Encourage open dialogue and the sharing of insights.
3. Implement the PDCA Cycle: Use the Plan-Do-Check-Act methodology to structure both long-cycle and short-cycle processes. This ensures that strategies are both actionable and adaptable.
4. Develop Ownership at Every Level: Foster a culture where each individual feels responsible for the success of the organisation. Encourage managers to act as entrepreneurial owners who are accountable for both their successes and failures.
5. Use Tools and Workbooks: Leverage practical resources like Managing on Purpose to guide your implementation. The book’s case studies, exercises, and detailed examples provide a blueprint for success.
6. Be Patient and Persistent: Adopting Hoshin Kanri is not an overnight transformation. It requires a commitment to continuous improvement and a willingness to learn from both successes and setbacks.

Conclusion: The Future of Strategic Management

Managing on Purpose and the Hoshin Kanri approach it champions represent a paradigm shift in how organisations think about strategy and execution. In an era marked by rapid change, fierce competition, and growing customer demands, leaders must adopt methods that not only align their teams but also enable them to learn, adapt, and excel continuously.

By integrating the strategic vision with daily operations, Hoshin Kanri transforms an organisation into a purpose-driven entity where every team member is aligned, empowered, and committed to excellence. Toyota’s six-decade journey stands as a testament to the power of this approach – a process that, when embraced wholeheartedly, can lead any organisation toward sustainable growth and operational mastery.

Mark Reich’s Managing on Purpose is more than just a book; it is a call to action. It invites business leaders to rethink traditional management paradigms and to adopt a more holistic, dynamic approach. This approach is as much about people and culture as it is about processes and metrics. Whether you are a seasoned executive or a budding leader, this workbook offers valuable insights and practical tools to help you navigate the complex terrain of modern business.

In the end, the true value of Hoshin Kanri lies not in reaching a state of perfection but in continuously moving closer to that elusive organisational nirvana. As you delve into Managing on Purpose, prepare to experience a series of “aha” moments – illuminating insights that challenge your assumptions and inspire you to create a more aligned, agile, and purpose-driven organisation.

Embark on this journey, and discover how a clear vision, executed through a robust, adaptive process, can transform your organisation into a resilient enterprise that not only survives but thrives in the face of constant change.

How to Learn More about Hoshin Kanri and Managing on Purpose

Mark will lead a Capability Development Workshop on Monday, April 7th, followed by a keynote on Hoshin Kanri at the UK Lean Summit on Tuesday, April 8th – Wednesday, April 9th.

Learn more about the UK Lean Summit and Capability Development Workshops on our events page here.

FREE Book Giveaway! Every UK Lean Summit 2025 attendee will receive a FREE copy of Managing on Purpose at the Summit. Can’t wait? Pre-orders are now available in our online shop, click the book cover below.