An Investigation of Policy Management
in a Japanese Subsidiary in Thailand:
Concept, Key Success Factors and
Barriers
PATEE TINTAVEE
HOSHIN KANRI - HK
MOTIVATION…
Policy deployment is…
• A successful strategic planning technique (Udasco, 2001)
• Increase productivity (Babich, 1996)
• Popular and extended to outside Japan e.g.USA, UK
(GOAL/QPC, 1990; Hacker et al. 1996)
• A culturally distinct approach (Lee & Dale, 1998)
Argument…
How is policy deployment modified to fit in with Japanese
company in Thailand?
HOSHIN KANRI - HK
Literature Review
Definition… (Witcher & Buttherword, 2001; Lee & Dale, 1998)
…a form of corporate-wide management that
combines strategic management and operation
management through a participative management
process of developing plans, targets, control and
area for improvement based on previous level’s
policy and an assessment of the previous year
performance.
HOSHIN KANRI - HK
Literature Review
• Policy deployment is powerful tool for strategic quality planning,
and an integral part of TQM (GOAL/QPC, 1990)
• Focus on key objectives and means to achieve objectives, in
every employee level (Akao, 1991; Colletti, 1996; Cowley & Domb, 1997)
• Is application of PDCA (plan-do-check-act) cycle (Akao, 1991;
Kondo, 1998)
• Is a participative management process (Lee & Dale, 1998)
• Is a culturally distinct approach (Bishop-Gain, 1992; Juran, 1989; Lee &
Dale, 1999; Witcher & Butterworth, 2001)
Argument…
How is policy deployment modified to fit in with Japanese
company in Thailand?
HOSHIN KANRI - HK
Research Questions…
1)How is the policy deployment process modified to fit in with
the conditions of a Japanese company in Thailand?
2. How are the PDCA cycle’s interplay and key roles related to
the implication of policy deployment process (catch-ball) in a
Japanese company in Thailand?
3. How each employee level involved in the process of policy
deployment?
4. What are the most influential key success factors and
barriers of policy deployment in a Japanese company in
Thailand?
HOSHIN KANRI - HK
Research Framework…
The seven-step
of policy
deployment
(GOAL/QPC*, 1991)
1.Establish Organizatioal
Vision
P
L
A
N
*Growth Opportunity
Alliance of Great
Lawrence/Quality,
Performance and
Competitiveness
2.Develop 3-5-year Plan
3.Develop Annual Objectives
A
C
T
Feedback
4.Deployment/Roll Down to
Departments to Develop Plan
including Targets and Means
D
O
5.Implementation
A
P
C
D
6.Regular Progress Review
(Monthly + Quarterly)
C
H
E
C
K
A
P
C
D
7.Annual Review
Source: GOAL/QPC Research Committee (1991)
HOSHIN KANRI - HK
Research Methodology…
Research design: Qualitative Approach
Case study is appropriate to investigate organizational and
managerial process, and the research questions “how” and
“what” (Yin, 1994)
Approach: A Single case study (in TOYOTA MOTOR THAILAND)
Population:
Management who works with company at least 3 years (78 prs.)
Data Collection & Data Analysis:
<Next Page>
HOSHIN KANRI - HK
Research Methodology…
Data Analysis…
Content analysis based on
research proposition (Yin,
1994)
HOSHIN KANRI - HK
Findings…
1) How is the policy deployment process modified to fit in with
the conditions of a Japanese company in Thailand?
The nine-step policy
deployment process
Policy audit: to ensure plans are on
direction, and contents are valid as
guideline.
Policy diagnosis: in term of
“quality” of “plan” and “do”, e.g.
Support company policy,
measurable, clear schedule &
responsible.
Half-year review: review
progress/achievement .vs.
plans/targets, to ensure high
priority plans are on track &
direction.
HOSHIN KANRI - HK
Findings…
2. How are the PDCA cycle’s interplay and key roles related to the
implication of policy deployment process (catch-ball) in a
Japanese company in Thailand?
HOSHIN KANRI - HK
Findings…
3. How each employee level involved in the process of policy
deployment?
Policy process
1. Define policy guideline
2. Set 3-5 year plan
3. Develop annual objectives and plan
4. Policy deployment and Cross-function
5. Policy implementation
6. Policy auditing
7. Policy diagnosis
8. Monthly progress review
9. Half-year and Yearly review
HOSHIN KANRI - HK
Top
Div.
Dept.
Func.
Findings…
4. What are the most influential key success factors and barriers
of policy deployment in a Japanese company in Thailand?
Key Success Factors
1. Top management/management participation and leadership
2. Clearly define targets, measurements and key performance index (KPI)
3. Closely followed up by middle management
4. Continuously following up by employing the PDCA concept
5. Good communication within groups and in between concerned parties
6. Reach the root cause of problems
7. Cross-functional and cross-departmental meetings for sharing and learning
8. Clear responsible persons
10. Pay attention to problems and promptly take corrective action
HOSHIN KANRI - HK
Findings…
4. What are the most influential key success factors and barriers
of policy deployment in a Japanese company in Thailand?
Barriers/Pitfalls
1. Lack of management participation and support
2. Lack of policy deployment knowledge
3. There are not enough reviews, cause for no appropriate action
4. Define unsuitable KPIs, and measurements or misunderstanding
5. Unclear responsible persons.
6. Middle management lacks capability and vision
7. Poor communications between groups, functions, departments
8. No budget and resources
10. Lack of cooperation from concerned functions and employees
HOSHIN KANRI - HK
Contributions..
Contribution to knowledge:
New insights of policy deployment and existing tacit knowledge
are translated into explicit knowledge, the nine-step policy
deployment process, in Thai settings.
Contribution to practical management:
Concept and details of modified policy deployment process, and
influence variables are clearly stated as preliminary guideline for
management and practitioners to adapt and apply.
Future work:
Confirm policy deployment process and influence variables by
quantitative approach
HOSHIN KANRI - HK
Thank…
?
HOSHIN KANRI - HK