Combining Hoshin Planning with the Balanced Scorecard to Achieve Breakthrough Results
Many organizations today are adopting the Lean and Lean Six Sigma tools and philosophies. Studies conducted by the authors have revealed that four of every 10 organizations are using Lean or Lean Six Sigma. (Hereafter we will use the designation LSS to refer to both Lean and Lean Six Sigma.) Earlier research we performed on LSS raised our curiosity as to what complementary effects, if any, exist for organizations that adopt both LSS and strategy or policy deployment tools such as the Balanced Scorecard (BSC) and Hoshin Planning, which originated in Japan. If such strategy deployment tools were being used in LSS organizations, would their use have an effect on LSS benefits? We surveyed more than 200 members of the Execution Premium Community (XPC), asking them about their use of LSS and of the BSC and Hoshin Planning. The results reveal that the combination of the BSC and Hoshin Planning can be especially helpful for those organizations pursuing LSS.