This paper explores the implementation of the Hoshin Kanri method in European small and medium-sized enterprises (SMEs) to enhance strategic planning and execution. Given the increasing complexity of business environments, SMEs face challenges in aligning long-term goals with daily operations. While Hoshin Kanri has demonstrated effectiveness in large organizations, its applicability to SMEs remains underexplored. This research employs a case study approach with inductive reasoning, combining primary data through interviews and secondary data via literature reviews. The ongoing pilot study provides preliminary insights into key barriers, such as unclear goal setting, resource constraints, and insufficient communication processes, which hinder effective implementation. However, the results remain limited in scope and generalizability due to the exploratory nature of the pilot phase. Through data analysis and coding, early findings suggest the importance of SMART goals, cross-functional collaboration, and continuous performance monitoring. This study offers initial theoretical insights and practical recommendations for SMEs to leverage Hoshin Kanri effectively. Future research will focus on validating and refining the proposed framework across diverse organizational contexts to enhance the method’s applicability and sustainability.