Maximizing business results through the application of Lean involves two important components:
- continuously optimizing the value creation process
- managing the fair treatment of those impacted by Lean change
Technical Lean methods deliver the first. Lean Management accomplishes the second.
Hoshin Kanri integrates both requirements before, during and after critical cross-functional improvement initiatives. When all are executed skillfully, Lean drives positive change and delivers benefits to every level of the organization. In other words, everyone experiences "good" change.
A large business organization is a complex system, made up of a collection of interconnected groups. The groups work in a cooperative, structured arrangement which is influenced by the behavior of each group.
In this environment, getting the best business results requires more than a purely technical approach. The human requirements of the system must also be optimized by managing the perception of the "fair treatment" throughout the groups.
Why? When the people within the groups perceive they are being treated fairly, they stay focused on executing the value creation process to drive optimum business results. When the perception of "fair treatment" is disrupted, people become distracted and begin to engage in wasteful pursuits that have nothing to do with creating value for the customer.
What does Hoshin Kanri have to do with this?
Hoshin Kanri integrates the two sides of Lean - technical and management - to establish an important feedback loop. The loop assures participating groups that their "fair treatment" is being protected or improved, and not damaged, as process improvement takes place. This keeps things operating smoothly, even as the process drives change into the system. Participants in Hoshin Kanri managed change efforts experience less stress, accept change more readily, and perform their jobs better after the fact.
In short, Lean management and Hoshin Kanri strategy deployment protect the participating groups, at every level of the organization, from bad change.
