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    Hoshin Kanri Case Study

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    ogan97
    Mr. Sunil Dissanayake discusses implementing a performance management system using the Hoshin-Kanri model at Hayleys Group in Sri Lanka. Key points: 1. Hoshin-Kanri is a Japanese planning and management model that aligns employee objectives with corporate goals through a process of cascading goals down the organization. 2. At Hayleys Group, the biggest success factor was commitment from the group chairman and business unit MDs, which resulted in the process being integrated and sustained over time. 3. Other key success factors included having a competent HR team to implement the process, sustaining the system long-term through review cycles, and setting goals in a timely

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    Hoshin Kanri Case Study

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    ogan97
    646 views3 pages
    Mr. Sunil Dissanayake discusses implementing a performance management system using the Hoshin-Kanri model at Hayleys Group in Sri Lanka. Key points: 1. Hoshin-Kanri is a Japanese planning and management model that aligns employee objectives with corporate goals through a process of cascading goals down the organization. 2. At Hayleys Group, the biggest success factor was commitment from the group chairman and business unit MDs, which resulted in the process being integrated and sustained over time. 3. Other key success factors included having a competent HR team to implement the process, sustaining the system long-term through review cycles, and setting goals in a timely

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    Some case study for better hoshin kanri implementation

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    Mr. Sunil Dissanayake discusses implementing a performance management system using the Hoshin-Kanri model at Hayleys Group in Sri Lanka. Key points: 1. Hoshin-Kanri is a Japanese planning and management model that aligns employee objectives with corporate goals through a process of cascading goals down the organization. 2. At Hayleys Group, the biggest success factor was commitment from the group chairman and business unit MDs, which resulted in the process being integrated and sustained over time. 3. Other key success factors included having a competent HR team to implement the process, sustaining the system long-term through review cycles, and setting goals in a timely

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    646 views3 pages

    Hoshin Kanri Case Study

    Uploaded by

    ogan97
    Mr. Sunil Dissanayake discusses implementing a performance management system using the Hoshin-Kanri model at Hayleys Group in Sri Lanka. Key points: 1. Hoshin-Kanri is a Japanese planning and management model that aligns employee objectives with corporate goals through a process of cascading goals down the organization. 2. At Hayleys Group, the biggest success factor was commitment from the group chairman and business unit MDs, which resulted in the process being integrated and sustained over time. 3. Other key success factors included having a competent HR team to implement the process, sustaining the system long-term through review cycles, and setting goals in a timely

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    Case study 1 Case study 1

    Align and Measure Employee Objectives to Corporate Objectives via Hoshin-Kanri


    Appraisal Model
    Align and Measure Employee Objectives to Corporate Objectives via Hoshin-Kanri
    Appraisal Model
    Mr. Sunil Dissanayake, Head Group Resources/Services fromHayleys Group, Sri
    Lanka
    Mr. Sunil Dissanayake, Head Group Resources/Services fromHayleys Group, Sri
    Lanka

    WhatisHoshinKanri? WhatisHoshinKanri?
    Itisallaboutplanningandmanagement.Theseare2JapanesewordsHoshinmeansplanning
    andKanrimeansmanagement.Ifwebreakupthese2wordsintofoursyllabus;
    Itisallaboutplanningandmanagement.Theseare2JapanesewordsHoshinmeansplanning
    andKanrimeansmanagement.Ifwebreakupthese2wordsintofoursyllabus;

    Ho means direction, Shin means focus, Kan means alignment and Ri is reason or
    purpose.
    HowHoshinKanrimodelevolvedinformofPerformancemanagementtool?
    ThewordHoshinKanricameintobignewsinbusinessorganization.SoonaftertheWorldWarII
    whentheAmericanforceswereoccupyingJapan,itwasalmostcompletelydestroyedandthey
    wanted very quickly to rebuild the Japan and make it a nation what it is today. For this
    rebuilding process they used planning and management and Excellence exclusion. After this
    rebuilding process was completed as well, this process was inculcated in the Japanese
    businessesandindustries.Somewherein1965acompanyinJapandidaresearchandproduced
    areportcontainingthesuccessstoriesofdifferentJapaneseindustriesandthesepractices,that
    were highlighted in this report and the research, was branded as HoshinKanri. So this is how
    thisnameHoshinKanricameintoplayinthebusinessworld.
    HowisHoshinKanrilinkedwithPerformancemanagement?
    AsIexplainedinthepreviousanswerforthequestionthatyouasked,Kanmeansalignmentand
    Homeansdirection.Sowhenwesetgoalsinourorganizations,thosegoalsandobjectiveshas
    a direction, a purpose, focus, and alignment to the corporate and business goals of the
    organization.Itisnotindividualgoalsoftheemployee,butthosegoalsandobjectivesneedsto
    be aligned to the business goals from top to bottom. Top means from the business corporate
    plan, then it filters down to the MD or the CEO, and then from there it filters down to
    management team, from the management team it filters down right to the bottom of the
    executives in thelowest band. So this methodology resultsin every executive getting engaged
    and being accountable for achieving the business goals. This process of goal cascading began
    being branded as HoshinKanri. As I explained earlier, it was also about direction, planning,
    management and alignment. Also the process ensures that all business units operates in one
    direction,notthattheyrunindifferentdirections,notthateachbusinessgroupunitdoeswhat
    theywanttodo,buteverythingtheydoisinonedirectionalignedtothetopcorporategoalsof
    theorganization.
    What was one of the success factors of implementing a performance management system
    usingaHoshinKanrimodel?
    We have sofar been discussing theory and my answer to this questionwould be to share with
    you how we translated theory to practice within our group, and Hayleys is a huge diversified
    groupwithabout7businesssectorsandeachbusinesssectorisaminiconglomerateaswell,so
    itisaconglomeratewithinaconglomerate.Thebiggestsuccessfactorhasbeentheownership
    andleadershiptotheperformancemanagementprocessbythegroupchairmanandthe7MDs
    ofthe7businesssectors.Thishasresultedintheprocessofgettingintegratedasanimportant
    business tool within the organization. And also everybody has engaged in this successful
    implementation and sustainability, the key word here is sustainability. Most of the time the
    organizations start projects, start processes and practices, but the key is to sustain over the
    years,nowIfyoutakeourorganizationaswell,theperformancemanagementsystems,several
    ofthem,thathavebeenimplementedoverthelast25to30years,butnoneofthemhavebeen
    sustained. So our challenge has been to sustain and also it helps to measure employee
    performance, and that is now getting inculcated as part of the culture of the group. Employee
    performanceismeasuredthroughtheachievementoftheirobjectives.
    To summarize what we have been talking about, what are the key factors that need to be
    applicatedwhenwelookattheperformancemanagementsystems?
    Thefirstonewascommitmentoftheleadershipandifyoudonothavecommitmentdonoteven
    try,iftheMDsandCEOsdonotcommitforwhatyouaredoingitwillneverwork,sooursuccess
    factor has been that our chairman and all MDs within the group who fully supported the
    process.
    Then of course also competency and capability of the HR delivery team. We have excellent HR
    delivery team in all our sectors where we have trained and they take the projects and these
    processesforimplementationtothesectors.WhenIsaycapability,itisthetechnicalcapability.
    In a lighterway, in my mind thereare two professions that I have experienced where anybody
    thinks everybody can do it, one is HR Management and theother isHotel Management every
    housewife thinks she can run a hotel and everybody in the world thinks they can be HR
    Managers,andthathasbeenthebiggestmistakeinmostcompanies,hiringpeoplewhoarenot
    technicallycompetent. Sowhatevertheprocessesyouwanttoimplement,itgetsboggedout,
    becauseoflackofknowhowofthepeoplewhoaredeliveringit.
    Then of course sustainability like I said before, once it is implemented, we need to have
    mechanisms in place to sustain. In our performance management process which we have
    implemented through HoshinKanri we have three steps, one is the design stage where we
    design, the second is the review stage after every performance cycle we review it with the
    management,andthethirdisthesustainabilityandfinally,thetimelinessofsettinggoals.Inmy
    pastworkingexperiencesIhaveseenorganizationsandpeoplesettingtheobjectivesintheend
    ofthefinancialyear.Objectivesshouldbeinplacebeforethefinancialyearstarts,sothewhole
    objectiveofthatisforthatpeoplestartworkingonthat,butwhenitbecomesacademic,justto
    saythatIhavesetmygoal,yousetthegoalsevenattheendoftheyear.Sothosearethefour
    keysuccessfactors:Commitmentoftheleadership,CompetenceandcapabilityoftheHRteam
    thatdeliversit,SustainabilityandTimeliness.

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