Addressing a Critical Problem in

Strategic Planning and Execution

by Patricia Panchak
Lean Enterprise Institute Addressing a Critical Problem in Strategic Planning and Execution

Addressing a Critical objectives both vertically and horizontally. As a result,

frontline operators know how their work contributes to

Problem in Strategic corporate goals, and traditionally siloed departments –

design, manufacturing, sales and marketing, logistics, etc.
Planning and Execution – are keenly aware of the handoffs from one to another.

Setting the Strategy

It’s getting close to that frustrating time of year when “One of the most differentiating factors of hoshin versus
business executives begin their strategic planning for the a traditional management-by-objectives or managing-
next calendar year only to realize they didn’t fully execute by-budget is that we engage everyone at all levels and
last year’s plan. “Two-thirds to three-quarters of large get alignment to set strategic priorities,” says Vila Verde.
organizations struggle with execution,” according to a Traditional approaches tend to develop a strategy at the
report in the Harvard Business Review. executive level, then cascade it down through the levels of
the organization.
Not at Logoplaste. Executives at the company are gearing up
for this year’s review and planning sessions with optimism.
Last year, they adopted hoshin kanri as their strategic
planning and deployment process at a few pilot plants, and,
so far, they like what they see. “Comparing with the other
plants that are not in this pilot program, the difference is
evident,” declares Vitor Vila Verde, the company’s global
vice president of lean and strategy deployment. He notes
that he’s comparing plants with the same level of maturity
in the number of years in operation.

Comparing with the other“

plants that are not in this pilot
program, the difference is
evident.
–Vitor Vila Verde, Logoplaste’s global vice
president of lean and strategy deployment With hoshin, teams at each level, top to bottom, use a
“catchball” process to determine what each needs to do
– and needs from others -- to improve and contribute
Hoshin kanri is a way to set corporate business objectives towards achieving corporate objectives. This top-down
that everyone in an organization fully understands and and bottom-up dialog between managers and their teams
agrees with. It is also a method – a system -- that ensures forges agreement around the resources and time needed to
everyone makes progress toward achieving their part of the achieve the targets.
plan throughout the year. Critically, hoshin kanri aligns
“We get alignment at all levels in terms of what they need
an organization’s functions and activities with its strategic

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Lean Enterprise Institute Addressing a Critical Problem in Strategic Planning and Execution

to improve, what they need to work on,” Vila Verde says. of meetings that continue the top-down, bottom-up
“We give ownership to the tactical teams, giving them the dialog throughout the year. Vila Verde says the ongoing
freedom to come up with ideas that will help us achieve the discussions are “a way to fight the silence culture,” adding
targets that we set for the next three years.” that the alignment allows everyone to improve their work
while working toward achieving the company’s goals that
Vila Verde adds that when Logoplaste started the process
are shared by all.
in the fourth quarter of 2020, they used the process to
determine not only “what we are going to achieve but also Six months into the pilot, the cadence of meetings includes
how we are going to shift.” one meeting with each tactical team conducted two weeks
before meeting with the board of directors. In between,
For most companies, setting strategic objectives boils
Vila Verde coordinates monthly meetings with each team,
down to financials, and monitoring revolves around budget
meetings. Leaders pore over spreadsheets and then often
return to their teams with directives: cut costs 10% in
the next three months! At Logoplaste, in addition to
establishing a budget and financial growth goals, leaders
set breakthrough objectives involving operations and,
crucially, team capability development. Executing this
broader approach requires a management system that
informs each division and plant of their progress as it
relays critical information to executive management. For
Logoplaste, hoshin kanri is that system.

Executing the Strategy

While achieving full buy-in on objectives offers an

organization a distinct competitive advantage, the more
significant issue – execution – is where hoshin kanri
excels. Built into the approach is a structure of cadenced
meetings and practices that ensure everyone stays focused
on achieving plan objectives.
and the teams review progress weekly.
The tactical teams at each level also monitor their KPIs
daily, says Vila Verde, “because if they are not able to
sustain and stabilize their daily performance, you will never
be able to raise the bar.” At each level, teams have a “control
room” where they visually display and track results, plan
and meet to discuss A3 reports. The A3 problem-solving
methodology is how Logoplaste overcomes obstacles in the
way of improvement.

With this steady cadence of each leadership level going

For operations, Logoplaste sets breakthrough objectives,
three to five strategic priorities, and the corresponding
tactical targets to improve (TTIs) that each plant or region
must achieve for the company to attain its objectives.
Progress in meeting the targets is monitored with a series
to the gemba, discussing issues, and helping as needed,
everyone stays focused on achieving the objectives. The
efforts and meetings are tracked with simple matrix tools.
As with any major transition in a large organization,
Logoplaste’s adoption of hoshin kanri has required
persistence to enact the change and a dedication to learning.

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Lean Enterprise Institute Addressing a Critical Problem in Strategic Planning and Execution

Although Logoplaste leaders had extensive experience

with lean thinking and practice, they sought support
from the Lean Enterprise Institute at the start. Vila Verde
attended the nonprofit’s Hoshin Kanri Remotely course
when deciding which management system would help
the company achieve its goals. He credits the course with
helping him decide to move forward. “It was a very good
experience to get this hoshin training, which is focused on
the Toyota Hoshin way.”

Moving forward, the company plans to bring in support to

help the teams learn the technical skills and help instill “the
culture of being able to be outside of the comfort zone, that
I call a Kaizen Culture or attitude,” Vila Verde says. n

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