chapter 5
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Chapter 5Chapter 5Chapter 5Chapter 5
Leadership andLeadership and
Strategic PlanningStrategic Planning
LeadershipLeadership
The ability to positively The ability to positively influence people and systems influence people and systems under one’s authority to have under one’s authority to have a meaningful impact and a meaningful impact and achieve important resultsachieve important results
Strategic PlanningStrategic Planning
The process of envisioning The process of envisioning an organization’s future and an organization’s future and developing the necessary developing the necessary goals, objectives, and action goals, objectives, and action plans to achieve that future.plans to achieve that future.
The Baldrige “Leadership The Baldrige “Leadership Triad”Triad”
Leadership
Strategic Planning
Customer andMarket Focus
Operations
Executive LeadershipExecutive Leadership
Defining and communicating business directionsDefining and communicating business directions Ensuring that goals and expectations are metEnsuring that goals and expectations are met Reviewing business performance and taking Reviewing business performance and taking
appropriate actionappropriate action Creating an enjoyable work environmentCreating an enjoyable work environment Soliciting input and feedback from customersSoliciting input and feedback from customers Ensuring that employees are effective Ensuring that employees are effective
contributorscontributors Motivating, inspiring, and energizing employeesMotivating, inspiring, and energizing employees Recognizing employee contributionsRecognizing employee contributions Providing honest feedbackProviding honest feedback
Key IdeaKey Idea
Six key leadership competencies can be described as navigator, communicator, mentor, learner, builder, and motivator.
Dale Crownover, President, Texas Nameplate Co. (a 2-time Baldrige Award recipient)
Leadership Leadership CompetenciesCompetencies NavigatorNavigator—creates shared meaning and provides —creates shared meaning and provides
direction toward a vision,mission, goal, or end-result.direction toward a vision,mission, goal, or end-result. CommunicatorCommunicator—effectively listens and articulates —effectively listens and articulates
messages to provide shared meaning. messages to provide shared meaning. MentorMentor—provides others with a role to guide their —provides others with a role to guide their
actions. actions. LearnerLearner—continuously develops personal knowledge, —continuously develops personal knowledge,
skills, and abilities through formal study, experience, skills, and abilities through formal study, experience, reflection, and recreation.reflection, and recreation.
BuilderBuilder—shapes processes and structures to allow —shapes processes and structures to allow for the achievement of goals and outcomes. for the achievement of goals and outcomes.
MotivatorMotivator—influences others to take action in a —influences others to take action in a desirable manner. desirable manner.
Leading Practices – Leading Practices – LeadershipLeadership (1 of 2)(1 of 2)
Leading Practices – Leading Practices – LeadershipLeadership (1 of 2)(1 of 2)
Create and deploy a customer-focused Create and deploy a customer-focused strategic vision and clear quality valuesstrategic vision and clear quality values
Create a sustainable organization and Create a sustainable organization and environment for performance environment for performance improvement, accomplishment of the improvement, accomplishment of the mission, innovation, agility, and learningmission, innovation, agility, and learning
Demonstrate personal commitment to Demonstrate personal commitment to organizational values, develop future organizational values, develop future leaders, and reinforce high performanceleaders, and reinforce high performance
Create a focus on action and Create a focus on action and communicate with, empower, and communicate with, empower, and motivate all employeesmotivate all employees
Leading Practices – Leading Practices – LeadershipLeadership (2 of 2)(2 of 2)
Address organizational governance to Address organizational governance to include management and fiscal include management and fiscal accountability, protection of stakeholder accountability, protection of stakeholder interests, and conduct evaluations to interests, and conduct evaluations to improve the leadership systemimprove the leadership system
Create an environment that fosters legal Create an environment that fosters legal and ethical behaviorand ethical behavior
Integrate public responsibilities, Integrate public responsibilities, resource-sustaining processes, and resource-sustaining processes, and community support into business community support into business practicespractices
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Leadership SystemLeadership SystemLeadership SystemLeadership System
Leadership systemLeadership system – how decisions – how decisions are made, communicated, and are made, communicated, and carried out at all levels; mechanisms carried out at all levels; mechanisms for leadership development, self-for leadership development, self-examination, and improvementexamination, and improvement
Effectiveness of leadership system Effectiveness of leadership system depends in part on its organizational depends in part on its organizational structurestructure
Key IdeaKey IdeaCreating the Leadership Creating the Leadership SystemSystem
An effective leadership system respects the capabilities and requirements of employees and other stakeholders, and sets high expectations for performance and performance improvements.
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Strategic PlanningStrategic PlanningStrategic PlanningStrategic Planning
Goals to be achievedGoals to be achieved Policies to guide or limit actionPolicies to guide or limit action Action sequences, or programs, that Action sequences, or programs, that
accomplish the goalsaccomplish the goals
““A strategy is a pattern or plan that integrates A strategy is a pattern or plan that integrates an organization’s major goals, policies, and an organization’s major goals, policies, and action sequences into a cohesive whole.”action sequences into a cohesive whole.”
FormalFormal strategy includes:strategy includes:
Leading Practices - Leading Practices - Strategic PlanningStrategic PlanningLeading Practices - Leading Practices - Strategic PlanningStrategic Planning Systematic planning systems for strategy Systematic planning systems for strategy
development and deploymentdevelopment and deployment Understand the competitive environment and Understand the competitive environment and
the factors and strategic challenges that the factors and strategic challenges that determine success, and gather and analyze a determine success, and gather and analyze a variety of external and internal datavariety of external and internal data
Align short-term action plans with long-term Align short-term action plans with long-term strategic objectives, communicate them, and strategic objectives, communicate them, and track progresstrack progress
Derive human resource plans from strategic Derive human resource plans from strategic objectives and action plansobjectives and action plans
Identify key measures and indicators for tracking Identify key measures and indicators for tracking progress, reinforce organizational alignment, progress, reinforce organizational alignment, and compare performance with competitorsand compare performance with competitors
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Strategic Planning ProcessStrategic Planning ProcessStrategic Planning ProcessStrategic Planning Process
Mission Vision Guiding Principles
Environmental assessment
Strategies
Strategic Objectives
Action Plans
Broad statements of direction
Capabilities and risks
Things to change or improve
Implementation
Reason for existence Future intent Attitudes and policies
VisionVision
Where the organization is headed and Where the organization is headed and what it intends to bewhat it intends to be– Brief and memorable - grab attentionBrief and memorable - grab attention– Inspiring and challenging - creates excitementInspiring and challenging - creates excitement– Descriptive of an ideal state - provides Descriptive of an ideal state - provides
guidanceguidance– Appealing to all stakeholders - employees can Appealing to all stakeholders - employees can
identify withidentify with SolectronSolectron: “Be the best and continuously : “Be the best and continuously
improve”improve”
MissionMission
Definition of products and services, Definition of products and services, markets, customer needs, and markets, customer needs, and distinctive competenciesdistinctive competencies
SolectronSolectron: “…to provide worldwide : “…to provide worldwide responsiveness to our customers by responsiveness to our customers by offering the highest quality, lowest offering the highest quality, lowest total cost, customized, integrated, total cost, customized, integrated, design, supply chain, and design, supply chain, and manufacturing solutions through long-manufacturing solutions through long-term partnerships based on integrity term partnerships based on integrity and ethical business practices.”and ethical business practices.”
Values (Guiding Values (Guiding Principles)Principles)
Define attitudes and policies for Define attitudes and policies for all employees, which are all employees, which are reinforced through conscious and reinforced through conscious and subconscious behavior at all subconscious behavior at all levels of the organization.levels of the organization.
PepsicoPepsico: integrity, honesty, : integrity, honesty, teamwork, accountability, teamwork, accountability, balancebalance
Environmental Environmental AssessmentAssessmentSWOT AnalysisSWOT Analysis Customer and market requirements, Customer and market requirements,
expectations, and opportunitiesexpectations, and opportunities Technological and other innovationsTechnological and other innovations Organizational strengths and weaknessesOrganizational strengths and weaknesses Financial, societal, ethical, regulatory and Financial, societal, ethical, regulatory and
other potential risksother potential risks Changes in global or national economyChanges in global or national economy Factors unique to the organization, such Factors unique to the organization, such
as partner and supply chain needs as partner and supply chain needs
Key IdeaKey IdeaStrategy DevelopmentStrategy Development
Strategies are broad statements that set the direction for the organization to take in realizing its mission and vision.
Strategic objectives are what an organization must change or improve to remain or become competitive.
Action plans are things that an organization must do to achieve its strategic objectives.
Strategy DeploymentStrategy Deployment
Developing detailed action plans, defining resource requirements and performance measures, and aligning work unit, supplier, or partner plans with overall strategic objectives.
Key IdeaKey IdeaStrategy DeploymentStrategy Deployment
Strategic objectives and action plans often require significant changes in human resource requirements, such as redesigning the work organization or jobs to increase employee empowerment and decision making, promoting greater labor/management cooperation, modifying compensation and recognition systems, or developing new education and training initiatives.
Leadership and Leadership and Organizational StructureOrganizational Structure
Basic types of organizational Basic types of organizational structuresstructures– Line organizationLine organization– Line and staff organizationLine and staff organization– Matrix organizationMatrix organization
Key IdeaKey IdeaOrganization structureOrganization structure
As more and more companies accept the process view of organizations, they are structuring the quality organization around functional or cross-functional teams.
Leadership in the Baldrige Leadership in the Baldrige CriteriaCriteria
The LeadershipThe Leadership Category examines how an organization’s Category examines how an organization’s senior leaders address values, directions, and performance senior leaders address values, directions, and performance expectations, as well as a focus on customers and other expectations, as well as a focus on customers and other stakeholders, empowerment, innovation, and learning. Also stakeholders, empowerment, innovation, and learning. Also examined is the organization’s governance and how the examined is the organization’s governance and how the organization addresses its public and community organization addresses its public and community responsibilities.responsibilities.
1.1 Organizational Leadership1.1 Organizational Leadershipa. Senior Leadership Directiona. Senior Leadership Directionb. Organizational Governanceb. Organizational Governanceb. Organizational Performance Reviewb. Organizational Performance Review
1.2 Social Responsibility1.2 Social Responsibilitya. Responsibilities to the Publica. Responsibilities to the Publicb. Ethical Behaviorb. Ethical Behaviorc. Support of Key Communitiesc. Support of Key Communities
Strategic Planning in the Strategic Planning in the Baldrige CriteriaBaldrige Criteria
The Strategic PlanningThe Strategic Planning Category examines how an Category examines how an organization develops strategic objectives and action organization develops strategic objectives and action plans. Also examined are how chosen strategic plans. Also examined are how chosen strategic objectives and action plans are deployed and how objectives and action plans are deployed and how progress is measured.progress is measured.
2.1 Strategy Development2.1 Strategy Developmenta. Strategy Development Processa. Strategy Development Processb. Strategic Objectivesb. Strategic Objectives
2.2 Strategy Deployment2.2 Strategy Deploymenta. Action Plan Development and a. Action Plan Development and
DeploymentDeploymentb. Performance Projectionb. Performance Projection
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