It’s time for Hoshin: Annual Operating Plan

Well its getting to be that time of year again… What did I promise to deliver this year, what do we need to do next year?


The annual operating plan sometimes is developed and displayed using the X-Matrix.  Establish the results of goals for next year, take the strategies and tie them to tactics, make sure the tactics can be measured (targets) and have individuals assigned ownership of tactics and targets.


Little gets done without marching orders, i.e. a Charter.  The basic document of the hoshin process is the team charter. The A3 format connects the targets (goals) to the tactics and provides another level of critical thinking about execution.  The team charter is a contact between the company to  provide support and resources and the team and team members to do the hard work of problem solving, applying the scientific method, and running experiments on the management operating system.


What gets measured gets better, and so we set plans and track key performance indicators.

Ready to make your hoshin for next year?




Prepare for the recovery before it’s too late

Dave Jones and Pierre Loewe write in Chief Executive Magazine …

Discontinuities are big, foundational shifts which have the potential to fundamentally change the rules of the game. They occur when trends from different areas combine, resulting in game-changing, long-lasting modifications to the external landscape. If you can identify them earlier and exploit them better than your competitors, you will win. If you don’t, you will be left behind.

You need to assess how the current crisis has affected the discontinuities you were anticipating before the recession hit. Say that until recently, you thought that being “green” meant addressing your carbon footprint. But did you know that by the time we emerge from the recession, “green” will likely mean using efficiently multiple scarce resources, such as water? If your stakeholders are asking about your carbon footprint today, then tomorrow they’ll be asking about your water footprint. You need to get ahead of this opportunity – IBM and Toyota already have.

Lesson: Analyze how the recent events have changed the external landscape — impacted the discontinuities you had previously identified, or created new, unexpected ones.