1. Strategic Planning in the Baldrige Criteria
Examines how an organization develops strategic objectives and action plans. Also examined are how the chosen strategic objectives and action plans are deployed and how progress is measured Strategy Development
a. Strategy Development Process
b. Strategic Objectives
2.2 Strategy Deployment
a. Action Plan Development and Deployment
b. Performance Projection

2. Strategy
“A strategy is a pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole.”
James Quinn
A formal strategy includes:
Goals to be achieved
Policies to guide or limit action
Action sequences, or programs,
that accomplish the goals
Do the “point north” thing

3. Characteristics of an Effective Strategy – S. C. Wheelwright
It is driven by customer wants and needs.
It makes a significant contribution to the success of the business.
It matches the organization’s unique resources with opportunities in the environment.
It is durable and difficult for competitors to copy.
It provides a basis for further improvement.
It provides direction and motivation to the entire organization.

4. Tasks Accomplished by Strategic Planning
Understand important customer and operational requirements
Optimize use of resources and ensure bridging between short-term and longer-term requirements
Ensure that quality initiatives are understood at all organizational levels
Ensure that organizations and structures will facilitate accomplishment of strategic plan

5. Consideration in Strategic Planning
Strives for breakthrough thinking
Has a clear process
Be on-going
Addresses unique characteristics in each market segment
Understand the role in the value chain
Has a well-defined process for continuous improvement in strategic planning

6. Strategic Opportunities Hamel & Prahalad, Competing for the Future, HBP
Unexploited
Unarticulated
Needs
Opportunities
Articulated
Un-served
Served
Customer Type

7. Leading Practices
Active participation of top management, employees, key customers and suppliers
Systematic planning systems for strategy development and deployment, including measurement, feedback, and review
Use of a variety of external and internal data
Align short-term action plans with long-term objectives, communicate them, and track progress

8. Strategic Planning Process
Reason for existence
Future intent
Attitudes and policies
Mission
Vision
Guiding Principles
Environmental assessment
Capabilities and risks
Broad statements of direction
Strategies
Strategic Objectives
Things to change or improve
Action Plans
Implementation

9. Vision Where the organization is headed and what it intends to be
Brief and memorable - grab attention
Inspiring and challenging - creates excitement
Descriptive of an ideal state - provides guidance
Appealing to all stakeholders - employees can identify with
Solectron: “Be the best and continuously improve”

10. Mission
Definition of products and services, markets, customer needs, and distinctive competencies
Solectron: “…to provide worldwide responsiveness to our customers by offering the highest quality, lowest total cost, customized, integrated, design, supply chain, and manufacturing solutions through long-term partnerships based on integrity and ethical business practices.”

11. Identifying Key Business Factors
Nature of products and services
Principal customers and market segments
Customer quality requirements
Competitive environment
Facilities, technologies, suppliers
Regulatory environment

12. Order-Winners and Qualifiers
Those criteria that an organization must meet for a customer to even consider as a possible supplier. However, providing or attaining these criteria do not win orders.
Order-winners
Those criteria that win an order.

13. Policy Deployment (Hoshin Kanri)
Top management vision leading to long-term objectives
Structured deployment through annual objectives and action plans
Negotiation for short-term objectives and resources (catchball)
Periodic reviews
See Figure 5.7!

14. Key Steps in the Policy Deployment Cycle
Carry out self-assessment
Gather information on business environment
Determine each unit’s vision and priorities
Agree on metrics and targets
Develop plans
Agree on personal objectives
Monitor progress and review
Refine priorities and process

15. Hoshin Kanri versus MBO

16. Seven Management and Planning Tools ( 1 of 3)
Affinity diagram
To determine and organize a large number of ideas, options, and facts related to a problem or subject
Interrelationship digraph
To explore and determine cause-and-effect relationships among related ideas

17. Seven Management and Planning Tools (2 of 3)
Tree diagram
To map out the paths and tasks to complete a project or reach a goal
Matrix diagram
To graphically display relationships between ideas, activities, etc. and to determine if there are missing pieces

18. Seven Management and Planning Tools (3 of 3)
Matrix data analysis
To compare alternatives using multiple criteria
Process decision program chart
To map out all the possible situations to a problem or action
Arrow diagram
To establish precedent relationships among tasks