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Prozanta Template

Hoshin Kanri / X-Matrix

Strategy deployment from vision to daily actions with catchball

Company:

Plan period:

Prepared:

How to use this template

Hoshin Kanri (Japanese: "compass direction" or "policy management") is a method for translating a company's 3-5 year vision into concrete, measurable actions at every level. The core principle is catchball: goals are thrown back and forth between management levels until everyone agrees on the ambition and the resources — the opposite of a traditional top-down budget process.

North — 3–5 years

Long-term strategic goals: where do you want to be in 5 years?

West — this year

Breakthrough goals: 2-5 ambitious goals that move the company decisively

South — projects

Improvement initiatives and projects that realise this year's breakthrough goals

East — KPIs

Metrics and milestones that show progress toward the breakthrough goals

Step by step

  1. Define 3-5 year strategic goals (North) — typically 3-5 overall directions.
  2. Translate them into this year's 2-5 breakthrough goals (West): concrete, measurable and challenging.
  3. Identify the projects and initiatives (South) that realise the breakthrough goals.
  4. Run catchball: share the draft with managers and team leaders, adjust based on capacity and feedback.
  5. Update status quarterly — not just at year-end.

Watch out

  • Hoshin Kanri is not a budgeting tool — it's a focusing tool. Choose 3-5 goals, not 30.
  • Without genuine catchball it is just a top-down order — employees who aren't heard don't deliver.
  • This template is a simplified linear representation. The classic X-Matrix is a diamond-shaped matrix — search "Hoshin X-Matrix" for the full format.

Example

North (3 years): Market leader in Nordic lean solutions.

  • West (this year): Reduce lead time by 30%, raise the customer score to 4.5/5
  • South (project): SMED on 3 key lines, VSM mapping of 2 product families

Method: Yoji Akao, “Hoshin Kanri: Policy Deployment for Successful TQM” (1991). The catchball principle is central to Toyota's strategy deployment.

3–5 year strategic goals (North)

#Strategic goalMetricCurrent state3-5 year target
1
2
3
4

This year's breakthrough goals — Year (West)

#Breakthrough goalTarget (what, when)Related 3-5 year goal (#)Owner
1
2
3
4
5

Improvement priorities and projects (South)

#Project / InitiativeRelated goalProject leadStartEndStatus
1□ Plan □ Active □ Done
2□ Plan □ Active □ Done
3□ Plan □ Active □ Done
4□ Plan □ Active □ Done
5□ Plan □ Active □ Done
6□ Plan □ Active □ Done

Catchball log — negotiation up and down

DateTheme / Goal discussedParticipantsOutcome / Adjustment

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Hoshin Kanri / X-Matrix

Plan period: · Approved: