The Scope and Language of Operations Management

1Leadership andStrategic Planning

1LeadershipThe ability to positively influence people and systems under ones authority to have a meaningful impact and achieve important results

Who to the Leadership ?2Strategic PlanningThe process of envisioning an organizations future and developing the necessary goals, objectives, and action plans to achieve that future.

3The Baldrige Leadership TriadLeadershipStrategic PlanningCustomer andMarket FocusOperations4Executive LeadershipDefining and communicating business directionsEnsuring that goals and expectations are metReviewing business performance and taking appropriate actionCreating an enjoyable work environmentSoliciting input and feedback from customersEnsuring that employees are effective contributorsMotivating, inspiring, and energizing employeesRecognizing employee contributionsProviding honest feedback5Key IdeaSix 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)6Leadership CompetenciesNavigatorcreates shared meaning and provides direction toward a vision,mission, goal, or end-result.Communicatoreffectively listens and articulates messages to provide shared meaning. Mentorprovides others with a role to guide their actions. Learnercontinuously develops personal knowledge, skills, and abilities through formal study, experience, reflection, and recreation.Buildershapes processes and structures to allow for the achievement of goals and outcomes. Motivatorinfluences others to take action in a desirable manner. 7Leading Practices Leadership (1 of 2)Create and deploy a customer-focused strategic vision and clear quality valuesCreate a sustainable organization and environment for performance improvement, accomplishment of the mission, innovation, agility, and learningDemonstrate personal commitment to organizational values, develop future leaders, and reinforce high performanceCreate a focus on action and communicate with, empower, and motivate all employees8Leading Practices Leadership (2 of 2)Address organizational governance to include management and fiscal accountability, protection of stakeholder interests, and conduct evaluations to improve the leadership systemCreate an environment that fosters legal and ethical behaviorIntegrate public responsibilities, resource-sustaining processes, and community support into business practices910Leadership SystemLeadership system how decisions are made, communicated, and carried out at all levels; mechanisms for leadership development, self-examination, and improvementEffectiveness of leadership system depends in part on its organizational structure10CRI Steering committee of 4

sets directions, frequent interaction with employees, review performance daily, formal monthly evaluations and OFIsKey IdeaCreating the Leadership SystemAn effective leadership system respects the capabilities and requirements of employees and other stakeholders, and sets high expectations for performance and performance improvements.

Key IdeaCaracters of Leadership;

1. Creative leaders2. Ability of influence (not title)3. Learning individual of responsibility1112Strategic PlanningGoals to be achievedPolicies to guide or limit actionAction sequences, or programs, that accomplish the goalsA strategy is a pattern or plan that integrates an organizations major goals, policies, and action sequences into a cohesive whole.

Formal strategy includes:12Do the point north thingLeading Practices - Strategic PlanningSystematic planning systems for strategy development and deploymentUnderstand the competitive environment and the factors and strategic challenges that determine success, and gather and analyze a variety of external and internal dataAlign short-term action plans with long-term strategic objectives, communicate them, and track progressDerive human resource plans from strategic objectives and action plansIdentify key measures and indicators for tracking progress, reinforce organizational alignment, and compare performance with competitors

1314Strategic Planning ProcessMissionVisionGuiding PrinciplesEnvironmental assessmentStrategiesStrategic ObjectivesAction PlansBroad statements of directionCapabilities and risksThings to change or improveImplementationReason for existence

Future intentAttitudes and policies14VisionWhere the organization is headed and what it intends to beBrief and memorable - grab attentionInspiring and challenging - creates excitementDescriptive of an ideal state - provides guidanceAppealing to all stakeholders - employees can identify withSolectron: Be the best and continuously improve15MissionDefinition of products and services, markets, customer needs, and distinctive competenciesSolectron: 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.16Values (Guiding Principles)Define attitudes and policies for all employees, which are reinforced through conscious and subconscious behavior at all levels of the organization.Pepsico: integrity, honesty, teamwork, accountability, balance17Environmental AssessmentSWOT AnalysisCustomer and market requirements, expectations, and opportunitiesTechnological and other innovationsOrganizational strengths and weaknessesFinancial, societal, ethical, regulatory and other potential risksChanges in global or national economyFactors unique to the organization, such as partner and supply chain needs 18Key IdeaStrategy DevelopmentStrategies 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.

19Strategy DeploymentDeveloping detailed action plans, defining resource requirements and performance measures, and aligning work unit, supplier, or partner plans with overall strategic objectives.20Key IdeaStrategy DeploymentStrategic 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.

21Leadership and Organizational StructureBasic types of organizational structuresLine organizationLine and staff organizationMatrix organization22Key IdeaOrganization structureAs more and more companies accept the process view of organizations, they are structuring the quality organization around functional or cross-functional teams.

23Leadership in the Baldrige CriteriaThe Leadership Category examines how an organizations senior leaders address values, directions, and performance expectations, as well as a focus on customers and other stakeholders, empowerment, innovation, and learning. Also examined is the organizations governance and how the organization addresses its public and community responsibilities.1.1 Organizational Leadershipa. Senior Leadership Directionb. Organizational Governanceb. Organizational Performance Review1.2 Social Responsibilitya. Responsibilities to the Publicb. Ethical Behaviorc. Support of Key Communities24Strategic Planning in the Baldrige CriteriaThe Strategic Planning Category examines how an organization develops strategic objectives and action plans. Also examined are how chosen strategic objectives and action plans are deployed and how progress is measured.2.1 Strategy Developmenta. Strategy Development Processb. Strategic Objectives2.2 Strategy Deploymenta. Action Plan Development and Deploymentb. Performance Projection25