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The word hoshin means "direction," and the word kanri means "management." Hoshin kanri is often translated as "direction setting," a critical task for any organization. It's important to have a long-term plan and make sure everyone in the organization understands that plan.
The terms hoshin planning and policy deployment are used to describe a strategic Lean planning process. This process involves setting objectives, coming up with a vision, and determining what strategies to use to reach those objectives. Hoshin planning uses the PDCA cycle to implement plans and follow up on them.
Hoshin planning often takes a bigger approach than some PDCA projects. Plans are often set for a long period of time such as a year. At the end of that time period, results are measured against objectives.
An important part of hoshin planning is communication; leaders must pass plans down through the business so that everyone involved sees and understands them. This helps people align their work with the organization's larger goals.
Simply put, hoshin planning helps businesses keep sight of larger goals while also handling day-to-day work.