BACKGROUND Hoshin planning, which enables organizations to allocate resources to important improvement opportunities to achieve significant results from a continuous quality improvement (CQI) program, was implemented in 1994 at a 160-bed community-based, residential psychiatric center. METHODS The management team identified 15 key functions of care and surveyed customers to determine the most important and least satisfactory functions. On the basis of these and other survey data, the team then identified the three top areas for improvement. One of these was admissions, which was low in customer satisfaction and which affected the performance of other functions. Staff input on improvement needs for each of these areas was collected, and teams were empowered to address process improvements. For example, a systemwide team was formed to decrease the time it took to complete an admission to the treatment center. REVIEW OF PROGRESS: The one-year assessment, which included resurvey of customers, showed that the admissions process was shorter, treatment planning was rescheduled to maximize staff and consumer (patient) input, and treatment units were addressing safety concerns. CONCLUSIONS The Hoshin planning process allowed the organization to target resources, involve employees, and achieve significant results visible to its consumers. This process and the quality improvement process should be integrated from the beginning.