The Management Brief is a weekly newsletter from the Lean Enterprise Institute that bridges the gap between theory and practice in lean management. Designed for leaders focused on long-term success, it delivers actionable insights, expert perspectives, and stories from real-world practitioners. Each edition explores the principles of lean management—strategy deployment (hoshin kanri), operational stability and continuous improvement (daily management), and problem-solving (A3)—while highlighting the critical role of leadership. Subscribe to join a growing community of leaders dedicated to creating organizations built for sustained excellence.
North Pole Inc. has faced increased global competition and shifting customer expectations, leading to operational inefficiencies and threats to its core mission: delighting children worldwide.
Challenges include:
- High defect rates in toy production.
- Rising fuel (carrots) costs from long sleigh routes pulled by reindeer.
- Increased errors in the Nice/Naughty list, leading to mismatched deliveries.
- Decline in market share as gift-giving competitors encroach on child happiness territory.
To address these challenges, Santa’s workshop needed aligned objectives that engage elves, enhance processes, and leverage partnerships.
Santa and top management (i.e., Mrs. Claus), along with input and feedback from all elves and reindeer, proposed the following hoshin objectives:
1. Strengthen Partnerships for Market Expansion and Growth
- Formalize collaborations with the Easter Bunny (hidden gift expertise) and the Tooth Fairy (asset recovery systems).
2. Improve Toy Quality through Elf Skill Development
- Introduce targeted training programs for elves focused on high-complexity toy assembly (e.g., LEGO structures, advanced robotics).
3. Optimize Sleigh Routes for Fuel Efficiency and Minimal Santa Sightings
- Transition from single, long-range route to short, frequent “milk runs” to minimize flight time, thereby reducing Santa spotting by children and fewer carrots required to fuel reindeer.
4. Enhance the Accuracy and Speed of List Compilation
- Automate Nice/Naughty data processing using AI, reducing processing errors by 20%.
- Implement a cross-departmental problem-solving initiative to address inaccuracies in list generation.
5. Spearhead the Future of Toys
- Establish R&D function to stay ahead of a rapidly evolving—and increasingly digitized—toy landscape.
Managing on Purpose with Hoshin Kanri
Learn how to develop strategy and build alignment.
Bwa ha! Love this. I’m a nonprofit consultant and reshared this article on my linkedin with a question, “What if Santa’s Workshop became your next nonprofit client? What advice would you add to this list?” What fun, thank you for this!
“Transition from single, long-range route to short, frequent “milk runs” to minimize flight time, thereby reducing Santa spotting by children and fewer carrots required to fuel reindeer.” I don’t think this fits the Christmas Eve delivery expectation of Santa’s customers.
I love this post!
Brilliant, even if you tabulated too many Tier One Strategic Objectives. Congrats and Kudos, however, on a great first-year iteration; you can devise truly first rank imperatives next year.
Bah, hub (my traditional year-end closing)