Hoshin Planning is a system of planning and deployment which has evolved in Japan from Management by Objectives concept and is now used widely by many leading organizations. It is based on a PDCA cycle (Plan-Do-Check-Act) to create goals, choose control points and link daily control activities to organizational strategies. However, it cannot be simply `installed' in an organization. The potential benefits from Hoshin Planning can only be gained by understanding and applying the principles to specific organizational situations and by progressively learning from experience.

Planning is a fundamental function of `Management'. It is all pervasive in nature. All other management functions are aimed at achieving the objectives of the organization. Setting the objectives is a fundamental activity of planning function.

An objective is an end that the organization strives to attain and planning helps to reach those predefined objectives ensuring optimum utilization of available resources of that organization.

Objectives are the foundation of planning as they provide direction for decision making. Objectives are framed taking into consideration the desired outcomes from the organizations.

Setting up objectives and achieving them, undoubtedly, plays a vital role in the organization's success.

Management by Objectives (MBO) is considered one of the most popular and effective tools for strategic planning. Peter Drucker introduced the concept of MBO in the 1950s and has written about it in his 1954 book, The Practice of Management. Hoshin Planning or Hoshin Kanri is a system of planning and deployment which evolved in Japan from MBO concept and is now used widely by many leading organizations. Hoshin Kanri or policy deployment is a widely used approach to strategic planning by many organizations across the world. This strategy has become a critical tool for bridging the gap between corporate goals and their successful organization-wide deployment.

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