In order to grow, small and medium-sized enterprises (SMEs) have to balance the inherent flexibility of the small firm with formal work division and administrative routines. This balancing is apparent in SME’s approach to strategy work. In order to address this need of balancing in strategy work we in this paper introduce the Hoshin Kanri approach to the SME context. Based on an extensive literature review we identify the principles of Hoshin Kanri and develop an adapted approach to small and medium sized companies. Finally we report on the lessons learnt after initiating the adapted approach in four SMEs.