It is a very good idea to implement Hoshin planning because this helps your organization to plan long term goals and to implement them effectively. This style of planning has been used very effectively by manufacturing companies in Japan, Europe and the United States but it can also be used by companies across different industries. Even though this is a very effective planning system, it is not without issues.
Problems with Hoshin planning are generally caused because of incorrect implementation. This is usually caused because organizations do not have the right guidance when adopting this planning style. The most common problems associated with it are:
- This planning style is a very interactive one and while this works well in most situations, it cannot be used effectively when trying to fix numeric goals.
- Very often, many employees at lower levels do not know enough about Hoshin planning. As a result, they are not motivated to give it their maximum efforts. They also tend to resist adopting a new way of working because they do not understand its significance for the well being of the company.
- Companies have to employ a lot of resources in order to use Hoshin properly.
- The success of this planning system depends very much on the senior management of a firm since this method takes a top down approach. In the event of changes in the top management then the new managers might not adopt the methods used by the old ones.
- Managers and employees can get obsessed with certain steps of the planning process and they can neglect other important steps. Also, if there are big egos involved then people might put a lot of effort and resources into certain activities been if they do not give the right results. This generally happens if a person has a pet project.
- A very commonly occurring problem concerns the inability or unwillingness to change when external or internal factors bring about alterations in the business environment.
- Many companies keep changing their goals repeatedly and this leads to confusion with employees who do not know exactly what to do.
An organization needs to study exactly which problems it is facing with regards to the implementation of Hoshin planning. Once the problems are identified, the company needs to address them without any delays. This will ensure that the company achieves its short term and long term goals without any issues.
Bottom Line: Read about the different issues that companies have to deal with when employing Hoshin planning. These issues get in the way of the company’s success.