Purpose – The purpose of this paper is to explore the basic principles and introduction of the Hoshin Kanri (HK) strategic management system, as related to the management practices in manufacturing small- and medium-sized enterprises (SMEs).

Design/methodology/approach – This paper reports the findings from the introduction of HK to four manufacturing SMEs by following an assistance support-based research approach where teams of coaches and researchers observed and learned from the introduction phase. The overall design of the project is theory building and learning oriented.

Findings – It is suggested that the successful introduction of a strategic management system in manufacturing SMEs has to balance the inherent level of formalization therein, with the individual company’s management practices. Based on HK as the strategic management system, pDCA is proposed as an alternative approach to the introduction, matching differences in management practices.

Research limitations/implications – The explorative nature of this research provides room for subsequent studies by elaborating the knowledge on the introduction of strategic management systems in SMEs.

Practical implications – Awareness of the existing managerial practices is essential when introducing a new strategic management system in manufacturing SMEs. Such awareness is the starting point of customizing the introduction, so that proper levels of engagement and flexibility can be balanced with increasing systematic formalization, and optimized adequacy.

Originality/value – Following an assistance support-based research approach the result of this research project is summarized in the iterative pDCA model emphasizing engagement and flexibility when incrementally introducing strategic management systems in SMEs. This model addresses a hitherto under-researched topic in strategic management.