Chapter 9 - Strategy & Performance Excellence Flashcards
A _________ is the pattern of decisions that determines and reveals an organization’s goals, policies, and plans to meet the needs of its stakeholders.
strategy
________________ is the process of envisioning the organization’s future and developing the necessary goals, objectives, and action plans to achieve that future.
Strategic planning
Example of Strategic Planning: CARGILL CORN MILLING (4)
- Where to play
- How to play
- What resources are needed to play
- When to play
Which customers? Which segments? Which geographies? Which products? Where on the value chain?
Where to play
How much focus on each decision of where to play versus the other? What degree of strategic alliance at each step of the value chain? What value proposition to each customer segment?
How to play
What capabilities do we need? What processes do we need? What is the ideal organizational structure? What skills do we need?
What resources are needed to play
When is the right time to make our move?
When to play
(T or F) One of the key practices for a strategic focus on performance excellence is to understand the organization’s operating environment and its key relationships with customers, suppliers, partners, and stakeholders.
True
Understand the competitive environment, the principal factors that determine success, the organization’s core competencies, and strategic challenges—___________, _____________, and ______________-related—associated with organizational sustainability.
business; operational; human resource
(T or F) Gather and analyze relevant data and information pertaining to such factors as the organizations strengths, weaknesses, opportunities, and threats; emerging trends in technology, markets, customer preferences, competitions, and the regulatory environment; long-term organizational sustainability; and the ability to execute strategic plans.
True
(T or F) Develop and refine a systematic approach for conducting strategic planning and setting strategic objectives, including identifying blind spots, leveraging strengths, and addressing challenges over appropriate time horizons.
True
(T or F) Develop and align short-term action plans with long-term strategic objectives, ensure adequate resources and the ability to sustain outcomes, assess financial and other risks associated with the plans, and communicate them throughout the organization.
True
(T or F) Derive human resource plans required to accomplish longer-term strategic objectives and shorter-term action plans that address the potential impacts on the workforce and potential changes to workforce capability and capacity needs.
True
(T or F) Identify key measures or indicators for tracking progress on action plans, ensure that the measurement system reinforces organizational alignment, and project performance of these key measures compared with competitors or comparable organizations to identify gaps and opportunities.
True
Determine the organization’s core competencies, and understand how they relate to the mission, competitive environment, and strategic _____________.
objectives
View the work performed within the organization as a ____________, and make rational decisions about the mix of internal and external work processes that can best achieve the organization’s mission.
system
The goal of __________________ is envisioning the future for purposes of decision making and resource allocation.
strategy development
_____________ strategy development requires a systematic process that involves participation by all necessary stakeholders, ensures that relevant and important data and information are captured and analyzed, addresses both short- and long-term time horizons, addresses key strategic challenges, and leads to innovation and sustainability.
Effective
Effective strategy development requires a _____________ process that involves participation by all necessary stakeholders, ensures that relevant and important data and information are captured and analyzed, addresses both short- and long-term time horizons, addresses key strategic challenges, and leads to innovation and sustainability.
systematic
Effective strategy development requires a systematic process that involves participation by all necessary stakeholders, ensures that relevant and important data and information are captured and analyzed, addresses both short- and long-term time horizons, addresses key strategic challenges, and leads to _____________ and _________________.
innovation; sustainability
STRATEGIC PLANNING PROCESS AT EASTMAN CHEMICAL COMPANY (FIGURE 11.1)
See Chapter 09 Page 8
STRATEGIC PLANNING PROCESS AT PARK PLACE LEXUS (FIGURE 11.2)
See Chapter 09 Page 9
The ____________ of a firm defines its reason for existence.
mission
Mission answers the question: _________________
“Why are we in business?”
MISSION EXAMPLES
________________: Innovative approaches … practical results … outstanding service.
________________: To improve the health of communities.
(1) Freese and Nichols
(2) Premier, Inc.
Benefits of Mission (3)
- guides the development of strategies
- establishes the context within which daily operating decisions are made and sets limits on available strategic options
- governs the trade-offs among the various performance measures and between short- and long-term goals
The ________ describes where the organization is headed and what it intends to be.
vision
Vision is a statement of the ________ that would not happen by itself.
future
A good vision statement should be ______, ________, ______, and ____________ to an organization’s employees.
brief; focused; clear; inspirational
VISION EXAMPLES
___________: Premier’s Owners will be the leading health care systems in their markets, and, with them, Premier will be a major influence in reshaping health care.
______________: Be the firm of choice for clients and employees.
(1) Premier, Inc.
(2) Freese and Nichols
_________, or guiding principles, guide the journey to a vision by defining attitudes and policies for all employees, which are reinforced through conscious and subconscious behavior at all levels of the organization.
Values
Values, or _______________, guide the journey to a vision by defining attitudes and policies for all employees, which are reinforced through conscious and subconscious behavior at all levels of the organization.
guiding principles
Another term for values/guiding principles
Core Values
ENVIRONMENTAL ASSESSMENT – Key factors to assess (4)
- The organization’s strengths, weaknesses, opportunities, and threats (SWOT)
- Early indications of major shifts in technology, markets, customer preferences, competition, or the regulatory environment
- Long-term organizational sustainability
- The ability to execute the strategic plan
…a list of key questions that helps an organization summarize the elements of an environmental assessment.
BALDRIGE ORGANIZATIONAL PROFILE
___________________ provides a frame of reference to help an organization better understand the internal and external factors that shape its operating environment, and set the context for strategic planning.
Baldrige Organizational Profile
(T or F) Baldrige Organizational Profile addresses the basic characteristics of the organization, organizational relationships, the competitive environment, the advantages an organization has and the challenges that it faces, and its approach to performance improvement.
True
…those pressures that exert a decisive influence on an organization’s likelihood of future success.
STRATEGIC CHALLENGES
Examples of Strategic Challenges (8)
- operational costs
- expanding or decreasing markets
- mergers or acquisitions both by the organization and by its competitors
- economic conditions
- the cyclical nature of the industry
- the introduction of new or substitute products or services
- rapid technological changes
- new competitors entering the market.
STRATEGIC CHALLENGES AT NORTH MISSISSIPPI MEDICAL CENTER (EXAMPLE) - Read
- PEOPLE—Maintain and enhance our employees’ satisfaction, skills, and engagement. Recruit and retain skilled staff. Develop staff and physician leaders.
- SERVICE—Increase our patients’ and physicians’ satisfaction. Enhance our patient–customer loyalty.
- QUALITY—Provide high level, evidence-based, quality care and maintain patient safety.
- FINANCIAL—Generate the financial resources necessary to support the organization in an environment of reimbursement pressures and increasing charity care.
- GROWTH—Continue to expand in areas consistent with our Mission.
DEVELOPING STRATEGIES (3)
- Strategies
- Strategic objectives
- Action plans
__________ are broad statements that set the direction for the organization to take in realizing its mission and vision.
Strategies
___________________ are what an organization must change or improve to remain or become competitive.
Strategic objectives
_____________ are things that an organization must do to achieve its strategic objectives.
Action plans
…involves developing specific action plans to achieve strategic objectives, ensuring that adequate financial and other resources are available to accomplish the action plans, developing contingencies should circumstances require a shift in plans and rapid execution of new plans, aligning work unit, supplier, or partner activities as necessary, and identifying performance measures for tracking progress.
STRATEGY DEPLOYMENT
(T or F) Strategy Deployment links the planners with the doers.
True
__________: who focus on “doing the right thing”
__________: whose focus is on “doing things right”
(1) planners
(2) doers
REASONS FOR POOR DEPLOYMENT (3)
- Lack of alignment across the organization.
- Misallocation of resources.
- Insufficient operational measures.
(T or F) Good deployment aligns resources and policies.
True
(T or F) Good strategic planning dedicates resources to making improvements or changes in those areas that are critical to an organization’s strategic advantage.
True
(T or F) Organizations need appropriate measurement systems at the operational level to track progress and know if action plans are really accomplishing their objectives.
True
THE POLICY DEPLOYMENT PROCESS (FIGURE 11.3)
See Chapter 09 Page 20
STRATEGIC HUMAN RESOURCE PLANS EXAMPLES – Read
• Redesign of the work organization to increase empowerment and decision-making or team-based participation;
• Initiatives for promoting greater labor/management cooperation, such as union partnerships;
• Initiatives to foster knowledge sharing and organizational learning; and
• Partnerships with educational institutions to help ensure the future supply of well-prepared employees.
ALIGNING HUMAN RESOURCES PLANS WITH STRATEGIES (TABLE 11.3)
See Chapter 09 Page 22
THE SEVEN MANAGEMENT AND PLANNING TOOLS (7)
- Affinity diagrams
- Interrelationship digraphs
- Tree diagrams
- Matrix diagrams
- Matrix data analysis
- Process decision program charts
- Arrow diagrams
AFFINITY DIAGRAM (FIGURE 11.4)
See Chapter 09 Page 25
INTERRELATIONSHIP DIGRAPH (FIGURE 11.5)
See Chapter 09 Page 26
TREE DIAGRAM (FIGURE 11.6)
See Chapter 09 Page 27
MATRIX DIAGRAM (FIGURE 11.7)
See Chapter 09 Page 28
MATRIX DATA ANALYSIS (FIGURE 11.8)
See Chapter 09 Page 29
PROCESS DECISION PROGRAM CHART (FIGURE 11.9)
See Chapter 09 Page 30
ARROW DIAGRAM (FIGURE 11.10)
See Chapter 09 Page 31
ORGANIZATIONAL DESIGN FOR PERFORMANCE EXCELLENCE – Factors influencing work organization (7)
- Operational and organizational guidelines
- Management style
- Customer influences
- Size
- Diversity and complexity of product line
- Stability of the product line
- Financial stability
ORGANIZATIONAL STRUCTURES (3)
- Line organization
- Line and staff organization
- Matrix organization
______________: Traditional functional departments
Line organization
_______________: Key functional departments with staff support
Line and staff organization
_______________: Typically used in project-oriented organizations
Matrix organization
CUSTOMER-FOCUSED TEAM-BASED ORGANIZATIONAL CHART (FIGURE 11.11)
See Chapter 09 Page 34
CROSS-FUNCTIONAL TEAM-BASED ORGANIZATIONAL CHART (FIGURE 11.12)
See Chapter 09 Page 35
____________ refers to how the work of an organization is accomplished.
Work system
______________ refer to an organization’s areas of greatest expertise that provide a sustainable competitive advantage in the marketplace or service environment.
Core competencies
(T or F) Core competencies:
* Contribute significantly to customer benefits
* Provide access to many products and markets .
* Are difficult for competitors to imitate.
True
EXAMPLES OF CORE COMPETENCIES – Read
- Quality and productivity practices (e.g., Toyota)
- Superior customer relationship management (e.g. Nordstrom)
- Innovation in design and new product development (e.g., Apple)
- Supply chain management (e.g., Dell)
- Marketing/branding expertise (e.g., Procter & Gamble).
_______________________ involves determining which processes will be internal to an organization and which will use external resources.
Strategic work system design
____________ refers to the practice of transferring the operations of a business function to an outside supplier.
Outsourcing
The opposite of outsourcing is _______________, by which certain business functions are acquired and consolidated within a firm.
vertical integration
(T or F) Work systems and processes must capitalize on core competencies.
True
