The following column comes through special arrangement with the Lean Enterprise Institute.
The article was written by Robson Gouveia and José R. Ferro, PhD, co-authors of "Daily Management to Execute Strategy: Solving problems and developing people every day."
Supply Chain Digest Says... |
|
|
Strategies often fail because they are not effectively communicated, cascaded, an dmonitored from all levels of the organization. Without clear alignment and commitment across all the layers and functions, even the most thoughtful strategic plan struggles to generate the expected results.
Daily management (DM) helps close this gap as it ensures that everyone is aligned with the strategic objectives, that performance is tracked in real time, and that corrective actions are taken accurately and promptly within the shortest time possible when deviations occur. DM creates a structured rhythm of accountability and visibility that keeps everyone focused on what matters most.
As a key component of the management system, daily management is essential for the success of hoshin kanri, enabling the consistent execution of strategy by connecting long-term goals with daily operations.
What distinguishes a well-structured daily management approach that ensures strategic objectives are achieved?
1. We need specific purpose definitions deployed to each area of the company.
Corporate vision is often too generic and somehow disconnected from the gemba, where real value is created. The vision must be translated into meaningful terms that engage all areas of the company, especially the people doing the actual work.
2. We need specific daily targets for every area, clearly linked to the hoshin kanri objectives.
Generic corporate targets must be broken down into specific daily targets. By understanding and defining key success factors (KSFs) that truly drive the expected performance, we ensure that hoshin kanri objectives are translated into concrete, meaningful daily actions for every area. These targets create alignment, maintain focus, and enable daily progress tracking, connecting strategy with execution and ensuring that every team’s actions support the overall goals.
3. We need to cultivate an environment that encourages daily learning and problem-solving.
Daily management provides the strength and the muscles needed for a successful hoshin kanri execution. Exercising it every day allows managers and leaders to become capable and skilled, just like a professional athlete practices every day to be a true champion.
4. We need to provide the right circumstances to allow managers to focus on hoshin objectives.
Daily management liberates time for managers so they can focus on the key hoshin objectives and develop their teams, rather than constantly reacting to problems that can be solved directly at the gemba. It also enables better root-cause elimination, as the problem-solving process happens closer to the source, fostering a more robust, gemba-driven scientific approach.
5. We need to build capabilities across all levels so people can strengthen the bottom-up engine of hoshin kanri.
Daily management enables PDCA to be practiced at the micro level and aligned with macro-level objectives. Executing it daily creates a stronger foundation for learning and making a contribution to the definition and deployment of hoshin objectives rather than relying on monthly or yearly cycles, which often fail to generate timely insights.
6. We need to prevent “too late” situations by addressing problems as they arise.
Daily management allows teams to identify and fix problems as they occur—or even before they happen—preventing them from escalating into major issues. Acting in real-time helps curb performance deterioration and avoids complications that arise when small problems are left unresolved.
7. We need to develop leaders and people through hands-on problem-solving.
Daily management creates the conditions for leaders to grow by working side-by-side with their teams to solve problems at the gemba. This daily practice strengthens leadership capabilities, builds trust, and fosters a culture of learning, accountability, and continuous improvement throughout the organization. This leadership capability is essential for the successful hoshin kanri.
Structure for a Solid Daily Management
(Article Continues Below)
|
CATEGORY SPONSOR: SOFTEON |
|
|
| |
|
|
Our approach is built around three main blocks: commitment, control variables, and problem-solving.
The first block, commitment, connects each area to the organization’s strategic priorities. Here, the connection between daily management and strategy becomes clear and explicit. It is a true deployment of strategy to specific areas. It defines each area’s purpose, key metrics, and performance goals. Commitment should also clarify the resources available, including the people involved and their respective responsibilities.
Control variables make up the second block. Here, the team defines what should be measured and controlled through daily targets—the heartbeat of the operation. These daily goals represent the value to be delivered each day, as defined in the commitment block. During daily meetings, the team should compare the planned goals with the actual results. Any gap between them indicates a problem that the team must address.
The third block is all about problem-solving. This is where the team visualizes the issues they are currently tackling, those pending action, or those that require escalation for further support.
Problem-solving is the engine that powers daily management. After defining the commitment in block one and setting the control variables in block two, it’s time to ensure the expected performance is achieved and any obstacles are swiftly eliminated.
Gaps between actual and expected results must be made visible—transparently and visually—on a DM board. Whenever an outcome falls outside the target, problem-solving is activated, triggering immediate actions to contain the issue and restore expected performance.
The presence of “reds,” indicating problems (gaps), is not a failure; it’s the starting point for the solution process that turns the indicator “green.”
All of this comes to life through the interaction of a diverse team operating in a psychologically safe environment. This environment is not accidental—it’s actively shaped by leadership behaviors.
It’s the leader’s role to foster open dialogue, encourage initiative, and build mutual trust—making space for real problems to be exposed and addressed without fear of repercussions. This daily presence at the gemba replaces command-and-control with collaborative mentorship. When teams feel safe to speak up, take ownership, and solve problems together, cultural transformation becomes possible.
Conclusion
You can start or strengthen your daily management system in parallel with your hoshin kanri implementation. Start small, experiment with the framework we propose, and adapt it to your specific context.
Daily management encourages every person to connect their daily work to the hoshin objectives, not occasionally, but consistently. While hoshin kanri sets the direction across the entire organization, DM ensures that progress happens every single day. It brings clarity to what a good day looks like and enables teams to see, in real time, whether they are winning or losing.
Ultimately, we need to make hoshin everyone’s job, every day. Daily management transforms strategy into action and action into results, making every day a good day!
What are your thoughts on Daily Management? Let us know your thoughts at the Feedback section below.
Your Comments/Feedback
|
