People Flashcards
Strategic Planning and Management: Formulation
Leaders gather and analyze internal and external information to determine the organization’s current position and capabilities, opportunities, and constraints.
Strategic Planning and Management Process: Development
Strategic goals and tactics that will optimize success given the environment, opportunities, and constraints - the strategic plan.
Strategic Planning and Management Process: Implementation
This requires clear communication of objectives to teams, coordination and support of their efforts, and control of resources.
Strategic Planning and management: Evaluation
Evaluation of results, both continually to make sure that activities maintain strategic focus and are effective and at designated intervals to determine the effectiveness of the strategy itself and the need for change or improvement.
Alignment of effort
Each unit must examine its plan against the organization’s. Are HR activities attentive to the logic behind the original plan and the value of the original goal?
Control of drift
Strategic drift is a phenomenon in which an organization fails to recognize and respond to changes in its environment that necessitate strategic change.
Focus on core competencies
Usually unique advantages an organization possesses, abilities that are integral to creating customer value and are difficult for competitors to imitate.
Strategic Planning Process
Begins with information gathering and analysis bc this leads to greater self-awareness and a better understanding of the constraints and advantages that must be reflected in the organization’s strategy.
Systems Thinking
Recognizes that organizations are composed of interacting and sometimes interdependent parts that together create a dynamic internal environment.
Input-process-output (IPO)
Inputs => Process => Outputs
Inputs
All the factors that can affect the outcome.
Process
All the methods the organization can apply to maximize its opportunities and manage its constraints. (analysis, communication, resource control, quality control)
Outputs
Includes the desired strategic effect - Example: expansion or redefinition of markets, increased sales or profitability, increased diversity, or enhanced environmental sustainability.
Environmental Scanning
Defined as a process of systematically surveying and gathering data from internal and external sources.
PESTLE
Political, economic, social, technological, legal, and environmental categories.
PESTLE Analysis
The environmental scanning process is systematized by searching for environmental forces organized under specific categories.
PESTLE analysis.2
Can be conducted on different levels: for the entire enterprise, for individual units or functions, or for specific activities. EX: Talent Acquisition, where PESTLE analysis can be used to understand external factors affecting the recruitment process.
PESTLE Analysts Step 1
Assemble a list of possible events or trends that exist now or could materialize within a defined time frame.
Could be done through brainstorming meetings, interviews or focus groups with experts, or literature reviews
PESTLE Analysts Step 2
Identify the potential impacts on the organization. These should include positive and negative or immediate and long-range effects.
PESTLE Analysts Step 3
Research the impacts more thoroughly to understand possible causes, their dimensions, and connections with other events or trends. Example: trending information may be obtained from govt agencies or industry associations.
PESTLE Analysts Step 4
Assess their importance based on the strength of the data.
SWOT analysis
A simple and effective process for assessing an organization’s strategic capabilities in comparison to threats and opportunities identified during environmental scanning.
SWOT analysis
Can also be used to analyze the strength and weaknesses of parts of an organization (HR function), products or services, and individual initiatives
SWOT analysis
S- What are the organization’s internal strengths?
W-What are the organization’s internal weaknesses?
O-What external opportunities might the organization be able to take advantage of?
T-What external threats must the organization accept or manage to succeed?
Strengths and weaknesses refer to the internal environment.
Opportunities and threats come from the external environment
Growth-share matrix
To find where the greatest value in their organizations lies.
Scenario Analysis
Helps an organization compare the impact of changes in the environment on the organization’s outputs.
Before a strategy can be mapped, a destination must be chosen.
This destination is an image of how the organization defines its purpose (mission) The future it hopes to see (vision) The principles it agrees will guide its behavior (value)
Specifies what activities the organization intends to pursue and what course management has charted for the future- a concise statement of the organization’s strategy.
Mission Statement
Describes the value the organization intends to deliver to the stakeholders. The language of the statement often expresses a sense of priorities
Mission Statement
A vivid, guiding image of the organization’s desired future- the future it hopes to attain through its strategy
Vision statement
The vision statement is the ultimate picture of what leadership envisions for the organizations
Vision Statement
Beliefs that are important to an organization and often dictate employee behavior
Organizational values
Actions, processes, or results that are needed to deliver a desired value
Value Drivers
Approach to identify their key performance indicators (KPIs) and to make sure that the objectives used to measure performance are strategically aligned to the various sources of value to the organization and are balanced
Balanced Scorecard
Can include productivity rates and management of short-term funds.
KPS (4 key areas) Finance
This perspective captures the ability of the organization to provide quality goods and services and satisfy its customers. It might be measured by the number of managers using a self-service system to set up new employees, processing rates for changes in compensation or corrections in benefits, or employee satisfaction with dispute resolution services
KPS (4 key areas) Customers
This perspective focuses on the internal business results that lead to financial success and satisfied customers. For HR, key internal processes may be managing talent acquisition and retention, employee development, and providing consultation to other functions
KPS (4 key areas): Internal business processes.
Perspective looks at actions that will prepare the future organization for success. For example - by strengthening the employer brand to attract talent, making sure employees have the most current skills, or implementing knowledge management systems
KPS (4 key areas) Learning and growth
Predictive in that action in this area can change future performance and help achieve success. For example, employee satisfaction indicates future retention rates and associated costs of hiring
Leading indicator
Describes effects that have already occurred and cannot be changed
Lagging indicator
SMARTER
Used to describe the 7 qualities that characterize effective objectives
Focused on a narrowly defined activity rather than a generalization
SMARTER (Specific)
Capable of objective measurement (Even intangibles can be measured objectively once measurement system is established)
SMARTER (Measurable)
requiring effort but within reach given effort and the right tools and support
SMARTER (Attainable)
Producing an outcome that is in the line of sight with the goal.
SMARTER (Relevant)
Subject to evaluation within a reasonable and defined time frame
SMARTER (Timebound)
Assessed at the designated time or interval, often continuously int he form of progress or pulse checks
SMARTER (Evaluated)
Changed to reflect what has been learned. The objective-setting process is repeated to make sure that the activities chosen are still the right activities and that the targets for results are attainable but also push performance to high levels
SMARTER (Revised)
How do organizations decide on a specific metric? Compares performance levels and/or processes of on entity with those of another to identify performance gaps and set goals aimed at improving performance.
Benchmarking
Defining KPI, Measuring current performance, identifying appropriate benchmarks and securing their performance data., identifying performance gaps between oneself and the benchmark organization, Setting objectives and implementing any necessary support activities
Benchmarking process
Each organization’s strategy must describe 2 things
- How an organization can create a strategic position, position which it enjoys a competitive edge over its rivals. (Business strategy)
- Where an organization will compete in terms of markets and industries (corporate strategy) Defines the scope of the organization.
The way in which the enterprise will relate to its industry and marketplace - how it will define its particular value to its customers
Business strategy
2 ways an organization can create competitive advantage
- Involves change in the external environment: customer demand, prices, or technology.
- Involves change inside the organization.
Strategies are an extreme example of creating competitive advantage through innovation
Blue ocean
Strategies, businesses compete in an existing marketplace. They win by taking share from their competitors, usually through differentiation or lower cost.
Red Ocean
Defines the scope of the firm in terms of the industries and markets in which it competes
Corporate Strategy
Companies agree to share assets, such as technology or sales capabilities, to accomplish a goal. Some alliances involve customers, partners, or competitors
Strategic alliance
Two or more companies invest together in forming a new company that is jointly owned
Joint Venture
One firm acquires partial ownership through purchase of shares.
Equity Partnership
A firm purchases the assets of a local firm outright, resulting in expanding the acquiring company’s employee base and facilities.
Merger/Acquisition
A trademark, product, or service is licensed for an initial fee and ongoing royalties. Often used in the fast-food industry
Franchsing
A local firm is granted the rights to produce or sell a product. Low-risk strategy; avoids tariffs and quotas imposed on exports. However, there is little control of the licensee’s activities and results
Licensing
A firm arranges for a local manufacturer to produce components or products as a means of lowering labor costs.
Contract Manufacturing
Another company is brought in to manage and run the daily operations of the local business
Management Contract
An existing facility and its operations are acquired and run by the purchaser without major changes
Turnkey Operation
A company builds a new location from the ground up. this represents a major task and a commitment to completely staff and equip the new location
Greenfield Operation
A company repurposes, through expansion or redevelopment, an abandoned, closed, or underutilized industrial or commercial property.
Brownfield Operation
Defines the scope of the firm in terms of the industries and markets in which it competes
Robert Grant (Corporate Strategy)
The selective “pruning” of parts of the organization that are underperforming or that are no longer in line with the organization’s strategy.
Divestiture
HR budget includes resources that are directly related to staffing and expenses required to provide HR services to internal customers
Operational budget
Budget side of talent acquisition, training and development, compensation and benefits, employee and labor relations, health, safety, and security, information technology, planning, philanthropy
Operational Budget side
What are the two parts to an HR budget
operational and strategic
5 elements needed for effective implementation of strategy
Communication outward to the entire team : Leaders must communicate a clear sense of actions individuals must take and the decisions they are empowered to make.
5 elements needed for effective implementation of strategy
Communication inward to leaders: Communication works best as a loop. Leaders need to know what’s working and what isn’t.
5 elements needed for effective implementation of strategy
Leadership support of decisions made by subordinates: Rather than 2nd guessing
5 elements needed for effective implementation of strategy
Free flow of information across organizational boundaries
5 elements needed for effective implementation of strategy
Enough information to allow team members to connect their work to the strategy. Field managers and employees must be able to connect strategic goals with daily decisions and effort. knowing the strategic relevance of work is empowering and motivating
Planning Stage of project management
Works with stakeholders to define strategically aligned project objectives. These objectives are used to create metrics that will be used to evaluate the project’s results. The project’s purpose should be clearly related to the organization’s strategy.
Planning Stage of project management
Defines the project’s deliverables. These deliverables are broken down further into units that represent the essential work to be done to accomplish the deliverables - the work breakdown structure will provide input into determining the required resources (time, number of team members, special skills, and tools, additional expenses such as travel or training)
Planning Stage of project management
Creates a project schedule:
Critical path analysis: Uses information about start or mandatory end dates, the logical relationship of tasks (e.g. whether task C must be completed before task F can begin) and the length of each task to find the earliest completion date.
Gantt charts: represents the scheduling of tasks visually, showing the length and timing of specific activities or gaps that be exploited to condense the schedule.
Planning Stage of project management
Assembles a team with the requisite skills and communicates to them he project’s connection with the organization’s strategy, its specific objectives, and their specific roles and responsibilities. A matrix chart showing the responsibilities of each team member for each task (responsible, contributing, and consulting) can be used to clarify roles and minimize misunderstandings.