Problem
One of the most differentiating factors of hoshin versus a traditional management-by-objectives or managing-by-budget is that we engage everyone at all levels and get alignment to set strategic priorities. Traditional approaches tend to develop a strategy at the executive level, then cascade it down through the levels of the organization.
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 towards achieving corporate objectives. This top-down and bottom-up dialog between managers and their teams forges agreement around the resources and time needed to achieve the targets.
We get alignment at all levels in terms of what they need to improve, what they need to work on. Ownership is given to the tactical teams, giving them the freedom to come up with ideas that will help us achieve the targets that we set for the next three years.
For most companies, setting strategic objectives boils 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!
What do you see as the benefits and drawbacks of "catchball"?