45| Manage on Purpose: Align Teams, Develop Strategy, Grow People Through Hoshin Kanri [with Mark Reich]

How effective is your organization's strategy in achieving results?

If your team doesn't understand how their daily work connects to bigger organizational goals, you don't have a strategy—you have a gap. 

A gap in engagement. 

A gap in alignment. 

This gap leads to confusion, misaligned priorities, and wasted effort.

I’m joined by Mark Reich, author of “Managing on Purpose”, to explore how hoshin kanri – often translated as strategy or policy deployment – can bridge this gap and transform your strategy development and deployment process.

With 23+ years at Toyota and extensive experience guiding organizations through lean transformations, Mark reveals how hoshin kanri offers a different approach to strategy execution and management. It connects people to purpose, builds capability, and aligns cross-functional areas, turning vision into results.

Turn your strategy into action by aligning and building a purpose-driven organization.

YOU’LL LEARN:

• Differences between hoshin kanri and traditional strategy management 
• Common misconceptions around strategy deployment and what sets hoshin kanri apart
• The role of catchball in connecting top-down and bottom-up processes
• The importance of building reflection (hansei) and PDCA (Plan-Do-Check-Act) into the process
• Real-world examples of organizations successfully transitioning to hoshin kanri strategy development and deployment

ABOUT MY GUEST:

Mark Reich is the author of “Managing on Purpose.” He spent 23 years at Toyota, including six years in Japan, seven years at the Toyota Supplier Support Center (TSSC), and over a decade leading Toyota’s North American hoshin kanri process. Today, he’s the Senior Coach and Chief Engineer of Strategy at the Lean Enterprise Institute (LEI), where he guides organizations and their executives on lean transformation.

IMPORTANT LINKS:

• Full episode show notes: ChainOfLearning.com/45
• Connect with Mark Reich: linkedin.com/in/markareich
• Mark Reich’s book, “Managing on Purpose”: lean.org/store/book/managing-on-purpose
• Resources and ways to work with me: KBJAnderson.com
• Follow me on LinkedIn: linkedin.com/in/kbjanderson
• Download my FREE KATALYST™ Change Leader Self-Assessment: KBJAnderson.com/katalyst 
• Learn more about the history and application of hoshin kanri: Learning to Lead, Leading to Learn

TIMESTAMPS FOR THIS EPISODE:

2:05 Hoshin Kanri vs. traditional management approaches to strategy

2:52 Mark defines hoshin kanri

3:49 What people get around around strategy deployment

4:26 Two key differences that sets hoshin kanri apart from traditional strategy

5:16 The problem Mark aimed to solve in “Managing On Purpose”

10:07 Why knowing your true north vision matters

11:34 The complexity of the x-matrix in implementing strategy

15:31 Why catchball is essential to hoshin kanri

20:32 Leading effective catchball conversations

23:07 Vertical vs. horizontal catchball

24:31 Collaborative input in the A3 process

26:17 How leaders can retain perspective for effective catchball conversations

28:30 The PDCA cycle’s critical role in hoshin kanri framework

31:06 Importance of flexibility in leadership

32:19 Distinguishing daily tasks vs. long term tasks for success

34:31 Embedding reflection time in the hoshin process to make PDCA work

37:31 Long-term learning in implementing effective systems

39:48 Using hansei for reflection and prioritization

Apply for the Japan Leadership Experience here:
https://kbjanderson.com/japantrip/