Hoshin Kanri for Social Enterprises - Co-visualizing Values-Based Strategic Plans
Abstract
Social enterprises are a hybrid type of organization that prioritize social and/or ecological values while needing to remain financially sustainable. Social enterprises face several challenges due to this hybrid business model, including aligning internal stakeholders in trading off between social/ecological values and financial value, and communicating these to external stakeholders. Using a single case-study approach, the present study demonstrates how Hoshin Kanri can be modified to fit the needs of social enterprises. The Hoshin Kanri diamond, a diamond shaped X-matrix, is developed by enriching the X-matrix to include terminal and instrumental values to ensure a better fit with the values-driven nature of social enterprises. The empirical data showed that this approach enabled the case company to prioritize according to its values and concurrently reflect on whether its activities were contributing to its social mission or merely necessary to ensure financial sustainability, contributing to both internal communication and communication with external stakeholders. The organization perceived this modified Hoshin Kanri approach as beneficial to help them articulate, prioritize and communicate objectives and activities that contributed to their growth in a way that felt congruent with their values.