From Issue-based Planning to Hoshin: Different Styles for Different Situations

Long Range Planning

Volumn 29, Issue 4, 1996, Pages 473-484

  Mulligan, Paul ^a   Hatten, Ken ^a   Miller, Jeff ^a  

^a NONE

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[No Author keywords available]

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EID: 0043093647     PISSN: 00246301     EISSN: None     Source Type: Journal    
DOI: 10.1016/0024-6301(96)00039-8     Document Type: Article

References (46)

1. Criticisms of strategic planning processes consistently cite the aforementioned shortcomings. See R. Hayes, Strategic planning - forward in reverse. Harvard Business Review, November-December (1985); H. Mintzburg, The fall and rise of strategic planning, Harvard Business Review, January-February (1994).
2. Criticisms of strategic planning processes consistently cite the aforementioned shortcomings. See R. Hayes, Strategic planning - forward in reverse. Harvard Business Review, November-December (1985); H. Mintzburg, The fall and rise of strategic planning, Harvard Business Review, January-February (1994).
3. The failures of traditional strategic planning, particularly as they apply to organizational transformation, are reviewed in K. J. Hatten and P. Mulligan, Thinking differently about strategic planning, Boston University MRT Briefing Paper.
4. Issue Based Planning is a dynamic planning methodology which is tuned to the specific challenges of organizational transformation. IBP is the product of a multi-year research program on sustained success. This research program incorporated multiple case studies, executive workshops and in depth literature reviews. For a detailed review of IBP see J. G. Miller and K. J. Hatten, Issue based planning, Manufacturing Roundtable Report (1995).
5. See J. G. Miller and K. J. Hatten op. cit.
6. See H. Mintzberg, Rethinking strategic planning Part I: pitfalls and fallacies, and Rethinking strategic planning Part II: new roles for planners, Long Range Planning 27 (3), (1994).
7. See J. K. Shank, E. G. Niblock and W. T. Sandalls Jr, Balance creativity and practicality in formal planning, Harvard Business Review 51 (1), 87-94 (1973).
8. I. Wilson, Strategic planning isn't dead - it changed, Long Range Planning 27 (4), (1994). Ian Wilson notes that the environment within which managers plan has changed dramatically but that many planning methods have failed to evolve in concert.
9. Wilson also notes that the changing environment has forced organizations to become more nimble and driven them to recognize the role of the individual in the planning and execution process.
10. H. Fayol, In Constance Storrs (trans.), General and Industrial Management, Pitman, New York (1972).
11. Wilson op. cit.
12. M. E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors, Free Press, New York (1980) set out one particular method of analysis. Portfolio Management per se is well elaborated in D. F. Abell and J. S. Hammond, Strategic Market Planning: Problems and Analytical Approaches, Prentice Hall, Englewood Cliffs, NJ (1979); G. Day, Diagnosing the product portfolio, Journal of Marketing 41 (2), 29-38 (1977) is a straightforward discussion of the method. See also P. Haspeslaugh, Portfolio planning: uses and limits, Harvard Business Review 60 (1), 58-67 (1982).
13. M. E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors, Free Press, New York (1980) set out one particular method of analysis. Portfolio Management per se is well elaborated in D. F. Abell and J. S. Hammond, Strategic Market Planning: Problems and Analytical Approaches, Prentice Hall, Englewood Cliffs, NJ (1979); G. Day, Diagnosing the product portfolio, Journal of Marketing 41 (2), 29-38 (1977) is a straightforward discussion of the method. See also P. Haspeslaugh, Portfolio planning: uses and limits, Harvard Business Review 60 (1), 58-67 (1982).
14. M. E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors, Free Press, New York (1980) set out one particular method of analysis. Portfolio Management per se is well elaborated in D. F. Abell and J. S. Hammond, Strategic Market Planning: Problems and Analytical Approaches, Prentice Hall, Englewood Cliffs, NJ (1979); G. Day, Diagnosing the product portfolio, Journal of Marketing 41 (2), 29-38 (1977) is a straightforward discussion of the method. See also P. Haspeslaugh, Portfolio planning: uses and limits, Harvard Business Review 60 (1), 58-67 (1982).
15. M. E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors, Free Press, New York (1980) set out one particular method of analysis. Portfolio Management per se is well elaborated in D. F. Abell and J. S. Hammond, Strategic Market Planning: Problems and Analytical Approaches, Prentice Hall, Englewood Cliffs, NJ (1979); G. Day, Diagnosing the product portfolio, Journal of Marketing 41 (2), 29-38 (1977) is a straightforward discussion of the method. See also P. Haspeslaugh, Portfolio planning: uses and limits, Harvard Business Review 60 (1), 58-67 (1982).
16. See R. L. Ackoff, A Concept of Corporate Planning, p. 2, Wiley, New York (1970). Ackoff suggests that phased planning is necessary because strategic decisions are too large to be handled all at once and their interdependencies preclude subdivision into independent decisions.
17. Ackoff op. cit.
18. Ansoff, Business Strategy, Penguin Books, Baltimore, MD (1969) presents a model of parallel decision making that segregates strategic decision making from other forms of decision processes.
19. Ansoff suggests that this fosters parallel decision making. Wheelwright, Strategy, management, and strategic planning approaches, Interfaces 14 (1), (1984); Hayes, Strategic planning - forward in reverse?, Harvard Business Review, November-December (1985) counter that this detachment isolates the planners and results in sub-optimal decision making.
20. Ansoff suggests that this fosters parallel decision making. Wheelwright, Strategy, management, and strategic planning approaches, Interfaces 14 (1), (1984); Hayes, Strategic planning - forward in reverse?, Harvard Business Review, November-December (1985) counter that this detachment isolates the planners and results in sub-optimal decision making.
21. Lawrence Bossidy, then Vice-Chairman of GE, in address to the Strategic Management Society, Boston, MA (1987).
22. I. Ansoff, Corporate Strategy, Penguin Books, Baltimore, MD (1969) laid the groundwork for future development of planning processes.
23. Boston Consulting Group, Perspectives on Experience, The Boston Consulting Group, Boston, MA (1972) and B. Henderson, Henderson on Corporate Strategy, Abt Books, Cambridge, MA (1979) are two good sources on this approach.
24. Boston Consulting Group, Perspectives on Experience, The Boston Consulting Group, Boston, MA (1972) and B. Henderson, Henderson on Corporate Strategy, Abt Books, Cambridge, MA (1979) are two good sources on this approach.
25. For the purpose of this paper we use a summary of the detailed planning model presented by A. C. Hax and N. S. Majluf, The corporate strategic planning process, Interfaces 14 (1), (1984).
26. See Hayes, Strategic planning - forward in reverse, Harvard Business Review, November-December (1985) and F. W. Gluck, A fresh look at strategic management, Journal of Business Strategy 6 (2), (1985) for a review of the shortcomings of pure quantitative, analytic strategy formulation.
27. See Hayes, Strategic planning - forward in reverse, Harvard Business Review, November- December (1985) and F. W. Gluck, A fresh look at strategic management, Journal of Business Strategy 6 (2), (1985) for a review of the shortcomings of pure quantitative, analytic strategy formulation.
28. J. Shank et al. op. cit.
29. I. I. Mitroff, J. R. Emshoff and R. H. Kilmann define the SAA as a methodology which provides a formal structure for conducting strategy based dialectic inquiry. See Assumptional analysis: a methodology for strategic problem solving. Management Science 25 (6), (1979).
30. Churchman, The Design of Inquiring Systems, Basic Books, New York (1971); R. O. Mason, A dialectical approach to strategic planning, Management Science 15, (1969); I. I. Mitroff and R. H. Kilmann, On integrating behavioral and philosophical systems: towards a unified theory of problem solving, Annual Series in the Sociology (1979) are the seminal introductory works on dialectic inquiry.
31. Churchman, The Design of Inquiring Systems, Basic Books, New York (1971); R. O. Mason, A dialectical approach to strategic planning, Management Science 15, (1969); I. I. Mitroff and R. H. Kilmann, On integrating behavioral and philosophical systems: towards a unified theory of problem solving, Annual Series in the Sociology (1979) are the seminal introductory works on dialectic inquiry.
32. Churchman, The Design of Inquiring Systems, Basic Books, New York (1971); R. O. Mason, A dialectical approach to strategic planning, Management Science 15, (1969); I. I. Mitroff and R. H. Kilmann, On integrating behavioral and philosophical systems: towards a unified theory of problem solving, Annual Series in the Sociology (1979) are the seminal introductory works on dialectic inquiry.
33. In R. M. Hogarth and S. Makridakis, Forecasting, planning and evaluation, Management Science 27 (2), (1981) the authors warn that planning and forecasting decisions are often falsely reinforced when managers access redundant information for validation or fail to seek out potential non-confirming information.
34. J. R. Emshoff, I. I. Mitroff and R. H. Kilman, The role of idealization in long range planning: an essay on the logical and socio-emotional aspects of planning, Technological Forecasting and Social Change 11, 335-348 (1978).
35. Mitroff et al. op. cit., p. 585.
36. For a case study example of DI/SAA see J. R. Emshoff, and A. Finnel, Defining corporate strategy: a case study using strategic assumptions analysis, Sloan Management Review, Spring (1979).
37. King notes that there are many translations for Hoshin Kanri. Unfortunately, some of these translated terms have multiple meanings in English. To avoid confusion we will restrict ourselves to the term 'Hoshin' with the understanding that we are referring to the entire process of Hoshin Kanri. See B. King, Hoshin Planning - The Developmental Approach, Goal/QPC (1989).
38. The literal translation of Hoshin is Ho, meaning method and shin, meaning shiny needle or compass. The intent is to signify a beacon that points the way, or sets strategic direction. See Y. Akao (ed.), Hoshin Kanri - Policy Deployment for Successful TQM, Productivity Press, Cambridge (1991).
39. W. W. Scherkenbach, The Deming Route to Quality and Productivity, CEEPress Books, George Washington University, Washington, DC (1986).
40. Improvement focuses include competitive priorities such as cost, quality, cycle time and safety. For an example of each of the report types see Y. Akao op. cit.
41. Examples of successful organizational transformations appear in the case studies prepared by Miller and Hatten in the initial stage of the Sustaining Success Project. The developed methodology, documented in J. G. Miller and K. J. Hatten, Issue Based Planning, Boston University Manufacturing Roundtable Report (1995) is a synthesis developed from observations from a series of research cases, two executive workshops on organizational transformation and subsequent interviews with managers who have successfully completed such a transformation.
42. J. G. Miller and K. J. Hatten op. cit.
43. K. J. Hatten and J. G. Miller, Be Right, Be Early and Sustain Your Company's Hard Won Success, Boston University Manufacturing Roundtable Reporrt (1994).
44. See K. J. Hatten and P. Mulligan, Thinking Differently about Strategic Planning, Boston University Manufacturing Roundtable Report (1995).
45. See J. G. Miller and W. Hayslip, Implementing manufacturing strategic planning, Planning Review, July-August (1989) for a detailed description of these two dimensions.
46. In P. T. Ward, G. K. Leong and K. K. Boyer Manufacturing proactiveness and performance, Decision Sciences 25 (3), (1994) operationalize the Miller and Hayslip framework. Ward et al. demonstrate empirically that proficiency along these two dimensions leads to improved performance.