Day 5: Looking forward …Planning and Strategic Management

Agenda: Q/A; Cpt. 6 & 7; Effective Argument; Next Day

Thoughts from Cpt. 6• “If you fail to plan, plan on failing!!”• “In preparing for battle I have always

found that plans are useless, but planning is indispensable.” Dwight D Eisenhower

• The Future?– Forecasting: What do we think is going to

happen.– Contingency: Actions to take if/when

things go wrong– Scenario: “What if this happens…”– Benchmarking: External / Internal

comparisons• Best practices

– HRO

Let’s make a plan …• Individually, make a list of three career objectives that you

hope to accomplish within five years of graduating. (5 minutes)

• For one of them, write out a contingency planning approach to help you achieve your objective. (5 minutes)

• For another one, write out a scenario planning approach to help you achieve your objective. (5 minutes)

• For the third, write out a benchmarking or best practices planning approach to achieve your objective. (5 minutes)

• Get in your groups to discuss your planning approaches – similarities / differences (10 minutes)

• Select a spokesperson to summarize your group’s reflections

Well … what did you come up with?

• What type of plan worked well for you?• Least valuable for this exercise?• How easy was it to make use of the different

types?

“Planning is bringing the future into the present so that you can do something about it now.” Alan Lakein (American Business

Commercial• Goal setting – SMART goals• Systems Thinking – focus on the daily plan• If you’re a coach, your goal is to win a championship.

Your system is what your team does at practice each day.

• If you’re a writer, your goal is to write a book. Your system is the writing schedule that you follow each week.

• If you completely ignored your goals and focused only on your system, would you still get results?

6

Highly Reliable Organizations

1.Preoccupation with Failure

2.Reluctance to Simplify Interpretations

3.Sensitivity to Operations

7

HRO - Actions1. Have people worry about the unexpected and to question taken-for-

granted routines.2. Make people unafraid to question assumptions and to report errors

promptly.3. Hold reviews of unexpected events no matter how trivial, and do this

frequently and especially right after an occurrence, when people are more likely to tell the truth and not have time to make excuses for the failure.

4. Create discomfort in people when things go well, everything is stable, and there is nothing to challenge because these conditions promote complacency and breed carelessness and error.

5. Work towards developing variety in peoples’ views of the organization’s functioning to meet the variety implied in the spectrum of unexpected events.

6. Help people develop a sense of what the entire operation is doing at any one moment and what it should be doing at that moment.

8

Chapter 7: Strategy

• “A comprehensive plan guiding resource allocation to achieve long-term organizational goals”

Topics in Chapter 7

• Competitive Advantage• Strategic Analysis• Strategic Formulation• Strategic Implementation• MVV• SWOT• Porter’s Five Forces Model• Grand or Master Strategies• Porter’s Competitive

Strategies• Strategic Implementation

9

10

The Strategic Management Process (chapter 7)

Identify theorganization’s

current missionand objectives

Analyze theenvironment

Identify theopportunitiesand threats

Analyze theorganization’s

resources

Identify strengths andweaknesses

Formulatestrategies

Implementstrategies

EvaluateresultsSWOT Analysis

2 3

6 7 8

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1

Find a NICHE

Competitive advantage

External

Internal

Group work – in your teams

Case 7 HBC: From Fur to Fendi•Q1: Porter’s Five Forces (stage 2)

•Q2: Competitive Strategy before / after? (stage 6)

•Q3: Olympic success – now what? (stage 8)

Playing to Win

1. What is your winning aspiration?

2. Where will you play?3. How will you win?4. What capabilities must

be in place?5. What management

systems need to be in place?

Presenting an Effective Argument

Plan Begin with the end in

mind (objective) Develop supporting

arguments (key points)Present Tell me what you are

going to tell me Tell me Tell me what you’ve told

me

Without support of facts, yours is just another opinion.

Construct an Argument

1) Evidence must be relevant to conclusion.

2) Evidence must provide sufficient support for conclusion.

3) Evidence must be credible.

Relevant

Sufficient

Acceptable

Is this argument RSA?

My friend and I are starting a new company and we want to become rich. A study has found that tall people make more money than shorter people. To save money in our organization, we have decided to hire only people who are shorter than average height.

I am from Missouri

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Next Day

• Break Week (yeah!) – Thanksgiving Day is a national holiday celebrated primarily in the

United States and Canada as a day of giving thanks for the blessing of the harvest and of the preceding year. It is celebrated on the fourth Thursday of November in the United States and on the second Monday of October in Canada. Thanksgiving has its historical roots in religious and cultural traditions and has long been celebrated in a secular manner as well.

• Cpt. 11: Leadership and Communication– Read Case: Bonus (web page) we will ‘answer’ this

is class