General Electric (GE) is betting on Hoshin Kanri to align their portfolio of business units once and for all.
Since inception in 1892, GE has been performing at its worst within the last 16 years or so, burning $100+ billion dollars worth of shareholder wealth…
The newest GE CEO (joined October 2018) previously led Danaher Corporation from 2001-2014. Danaher Corporation is a US industrial conglomerate that has consistently outperformed the S&P index over the last 30 years. They have created an execution-oriented culture coupled with a clear understanding of the strategic direction among all levels of the organization. By continuously utilizing their own goal deployment system famously known as the Danaher Business System which incorporates the basic principles of Hoshin Kanri and Balanced Scorecard. GE has started to incorporate the very similar behaviors found at Danaher to drive the direction, alignment and communication.
(Danaher - 32 Year Stock Price History 📈)
"Part of the change is top-down, as we increasingly adopt Hoshin Kanri, or the alignment of actions with strategy, to keep us hyper-focused on the priorities that can drive the highest returns. Taken together—measured via more standard KPIs and woven throughout the year in an ongoing sequence of operational, talent, strategic, and budget reviews—this is how we are running GE differently." - GE CEO
For GE, goal deployment requires a combination of central coordination and business unit autonomy. Observing an iconic brand go through a major operational turnaround using Hoshin Kanri, especially at this scale does, not happen often.
As enthusiasts, we are excited to bet on this vintage methodology to see if it can once again weather through the latest digital trends and newest organizational design movements of the world.
📘Read More...
The 7 Steps in the Hoshin Kanri Planning Process
Rolling out HoshinCloud at scale for your organization
🚀Launch and Sustain Digital Transformation:
📰Appendix:
https://www.ge.com/reports/1-year-in-with-ge-ceo-larry-culp/
