Dear Mohamad Kraker

Successful implementation of Hoshin Kanri in German manufacturing SMEs requires a careful adaptation that respects the unique "Mittelstand" culture, where long-term vision, deep technical expertise, and strong owner-manager relationships are paramount. The process must begin with the clear and unwavering commitment of leadership (Unternehmensführung) to not only define a breakthrough objective (the "True North") but also to actively participate in the entire process. This strategic priority must then be translated into actionable, measurable goals through a structured process of catchball (Nemawashi), which involves an iterative dialogue between management and departmental levels to foster buy-in, refine objectives, and ensure the chosen goals are grounded in the operational reality of the shop floor. This ensures the Hoshin is not a top-down decree but a collaboratively developed plan that leverages the German strength in operational excellence and employee technical competence.

Crucially, the method must be integrated with, rather than replace, existing robust processes like ISO-certified quality management systems (QMS) or Lean initiatives, framing Hoshin Kanri as the strategic umbrella that gives direction to these operational tools. For it to thrive, it requires the establishment of clear, visual management systems for tracking progress via regular, data-driven reviews, moving beyond traditional reporting to a focus on problem-solving when deviations occur. This necessitates a subtle cultural shift towards even greater cross-departmental collaboration (breaking down silos) and a heightened focus on process-oriented coaching by managers. Success ultimately depends on persistent communication that this is a long-term strategic management process, not a short-term project, thereby aligning the entire organization’s continuous improvement efforts towards a common, ambitious goal.

I hope this helps.