Hoshin Kanri X Matrix and Key Performance Indicators

The Hoshin Kanri X matrix is an effective visual tool for detailed strategic planning. It helps to manage an organisation's goals, strategies, and metrics, and align them with the strategic initiatives.
Hoshin Kanri is a strategic management approach that was first developed in Japan. It is a methodology used to align an organisation's goals with its strategies and actions.It is a structured planning and implementation process for aligning an organisation's strategic goals with its operational activities. The Hoshin Kanri principles offer a framework for effective management and goal achievement.

Some of Hoshin Kanri's key principles include policy deployment, catchball, PDCA cycle, KPI focus, cross-functional collaboration, and continuous improvement. These principles are essential for effectively managing and achieving an organisation's goals.

The Hoshin Kanri X matrix is a visual tool that is usually used during the planning phase of Hoshin Kanri. Its main purpose is to help organisations align their strategic objectives, Key Performance Indicators (KPIs), and action plans in a single matrix. It visualises the relationship between goals, actions, responsibilities, and performance metrics.

Hoshin Kanri catchball is a management methodology that allows an organisation to align its goals and objectives with the team's actions at all hierarchical levels. It involves creating and maintaining open feedback loops across all levels of the organisational hierarchy by establishing a two-way stream of information sharing. Catchball is a vertical approach where the top-level management sets the goals for the company and prepares the strategy proposal. They pass it like a ball to the lower levels and wait to receive feedback from them. Iterations occur before the agreement is reached.

The middle management then tosses the ball to the team leaders, and the process continues until the ball reaches the bottom of the pyramid. This process provides every team member working towards achieving these goals an opportunity to give input on their part and align the actions in a common direction that everyone shares.
Though the executives throw down the strategy, the lower management levels and the regular team members toss the process improvements. This gives the employees a clear picture of how they fit into the bigger picture and connect to the organisation’s most important objectives.

The benefits of applying the catchball approach include increasing the team's engagement in strategy planning, continuous improvement, and a better understanding of the practicality of the plans. It also encourages people from multiple areas to contribute to the analysis of the plan.