Administration by Policies is an administrative system that has its origin in the Japanese Hoshin Kanri methodology, which means methodology to establish, implement and control the strategic direction. It is also known as Management by Guidelines.
Some definitions
- Administration by policies is a managerial philosophy that seeks through a participatory process to establish, deploy and subsequently self-control the fundamental goals of the organization and its senior management as well as guarantee the corresponding means and the necessary resources to ensure that said goals will be achieved. at all levels of the organization Policy management is a system for setting, from the long-term strategic plan, the annual strategic, administrative and operational objectives and policies of senior management and then deploying them to the entire organization so that In each department or section, the form and particular goals with which each of them will contribute to the achievement of those objectives are defined. In this context, politics means a goal and a means to achieve it.Deployment is the process through which the entire organization knows, participates and works in the fulfillment of the strategic plans.Hoshin Kanri is a management system, from Japan, that allows to establish, deploy and control the objectives of senior management and the corresponding means to ensure its achievement at all levels of the organization, based on the PDCA cycle (Plan - Do - Check - Act). Ho -> Shin method -> Arrow indicating Kanri direction -> Planning. HOSHIN KANRI: Methodology to establish the strategic direction = Management Compass. Hoshin Kanri is, then, a managerial methodology to deploy and implement strategies: It aligns the organization with changes in the external environment. Translate the challenges into a small set of strategic gaps that must be closed.It mobilizes the entire organization to close gaps. Hoshin Kanri is a managerial process designed to ensure the success of the business by structuring the planning and management control, around its critical issues. A method that combines all the organizational energy to effectively give the necessary answers today that allow to meet the present and future needs of the company, using all human potential. Hoshin Kanri was created with the aim of communicating to everyone within the company the company policies. It is a series of systems, forms and rules that encourage workers to analyze situations, create improvement plans, carry out efficiency controls, and take the necessary measures,Resulting as the main benefit that everyone focuses their efforts on the key aspects to achieve success. And according to many of the Deming Prize winning companies, Hoshin is one of the key pieces in their success.Hoshin Kanri is the management system designed to ensure the success of a business by integrating the administration of its fundamental processes (the current survival) with the Strategic Plan and the Annual Plan (future viability). It integrates quality into business management while leading to focus on truly critical processes. It has contributed to consolidating the competitive development of Japan and is progressively being implemented with extraordinary results in Western organizations.Hoshin is one of the key pieces in its success, Hoshin Kanri is the management system designed to ensure the success of a business by integrating the administration of its fundamental processes (current survival) with the Strategic Plan and the Annual Plan (future viability). Integrates quality into business management while leading to focus on truly critical processes. It has contributed to consolidate the competitive development of Japan and is progressively being implemented with extraordinary results in Western organizations.Hoshin is one of the key pieces in its success, Hoshin Kanri is the management system designed to ensure the success of a business by integrating the administration of its fundamental processes (current survival) with the Strategic Plan and the Annual Plan (future viability). Integrates quality into business management while leading to focus on truly critical processes. It has contributed to consolidate the competitive development of Japan and is progressively being implemented with extraordinary results in Western organizations.It integrates quality into business management while leading to focus on truly critical processes. It has contributed to consolidating the competitive development of Japan and is progressively being implemented with extraordinary results in Western organizations.It integrates quality into business management while leading to focus on truly critical processes. It has contributed to consolidating the competitive development of Japan and is progressively being implemented with extraordinary results in Western organizations.
Some of its main features
- Support a planning system capable of effectively relating long-term or strategic plans with the annual plan and with the monitoring of the fundamental processes that make up the day-to-day of the company.Focus on the few critical objectives for success. quality in business management. Incorporate the financial indicators of the business and relate them to the fundamental measurements of the processes Generate a progressive interaction between the different levels around how the objectives will be achieved and what should be measured to ensure compliance, through a two-way dialogue or «Ball game». Make evident the real contribution of people to the fulfillment of the objectives at individual and organizational level. Ensure progress through periodic reviews.Clearly assign responsibilities regarding goals and processes.
Advantages of Administration by Policies:
- It allows establishing a systematic and effective structure to disclose general policies in the long and short term, from senior management to supervisors and workers, which ensures compliance. The concepts of employee participation and commitment become reality, and these are They feel an active and important part in the managerial functions of the company It contributes to the development of human resources because:
- Each department defines its role and responsibility Each management creates ideas for the achievement of objectives and thus needs to be self-motivated to achieve higher objectives. Each management permanently realizes the status of its achievements.
How the deployment works
Once the annual Strategic Objectives have been defined, the procedure is as follows:
- The strategies (basic activities) necessary to carry out the objective are defined. They are broken down according to the organizational structure. The sub-elements of the activities are distributed to the various areas of the organization. Each area determines its goal and must outline and develop plans to achieve assigned objectives.
In this way, the plans are transmitted to the lower levels of the organization, breaking down at each level of the hierarchy until they reach the point where the actions to be carried out appear clearly. Then, among the people responsible for putting them into practice, it is decided what resources are required and the schedules to follow. The proposed actions are documented in as much detail as possible to ensure that they are communicated accurately.
The following diagram presents the policy management model:
When defining actions, the following aspects should be taken into account:
- The difference must be made between what should be done and what would be pleasant or ideal to do. Resources are limited and it is impossible to do everything we would like to see done Clarify constraints on available resources (people, money, materials and equipment) and investigate feasible methods under those constraints. The method that is considered most feasible, after several evaluations, will be the one that is implemented. Follow-up methods should be designed to verify and evaluate whether the actions are being carried out and are effective or to incorporate the necessary adjustments. seek a good balance between goals and resources. It is counterproductive to set unattainable goals due to lack of resources. Material resources are generally limited, but human capacities are not.As improvement is always possible, the development of people's capacities must be constantly sought. For the plans to be properly implemented, the following steps are necessary: Ensure that the department responsible for carrying out the actions is fully aware of the need for these Provide the necessary training or training to execute the actions Ensure the planning of the delivery of resources at the appropriate time.Provide the necessary training or training to carry out the actions Ensure the planning of the delivery of resources at the right time.Provide the necessary training or training to carry out the actions Ensure the planning of the delivery of resources at the right time.
Finally, we recommend the following webinar, in which Michael Latuga, an expert in continuous improvement, delves into the topic of deployment or management by policies, Hoshin Kanri.
Bibliography
Muñoz Machado, Andrés. Total quality management in public administration, Ediciones Díaz de Santos, 1999.
