nawbo-la peak leadership academy management systems consulting corporation 10990 wilshire blvd....

NAWBO-LA PEAK LEADERSHIP ACADEMY

Management Systems Consulting Corporation10990 Wilshire Blvd. Suite 1420, Los Angeles, CA 90024(310) 477-0444 • www.mgtsystems.com

Session 3:Strategic Organizational Development Planning (Part 2) and Introduction to Performance Management

© Management Systems Consulting Corporation, 1989. Revised 2004. All rights reserved. 2


Session 2

PURPOSE:

Continue developing your company’s strategic plan and begin the process of developing performance management systems to support your plan.

Strategic Organizational Development Planning

OBJECTIVES:

1. Address any questions you have about the “Environmental Scan” and “Organizational Assessment” data you have collected and analyzed to date.

2. Review/refine your company’s Business Concept and Strategic Mission.

3. Develop draft Objectives and Goals to support the achievement of your company’s plan.



Session 2

Review: Strategic Planning Framework



Session 2

Strategic Planning Process

1 ENVIRONMENTAL SCAN

Market Analysis Competitive Analysis Trend Analysis

2 ORGANIZATIONAL ASSESSMENT

Culture Management Systems Operational Systems Resources Markets and Products

3 STRATEGIC ISSUE RESOLUTION

Business Foundation Issues Strategic Organizational Development Issues

5 BUDGETING4 STRATEGIC BUSINESS PLAN

Situation Analysis Business Definition Strategic Mission Strategy Key Result Areas Objectives and Goals Action Plans

6 QUARTERLY MANAGEMENT REVIEW

Reports Meetings



Session 2

What You’ve Completed to Date

Box 1

• “Collected” and analyzed information about your environment – using the “Planning Survey” that we gave you (in the binder) at Session 1.

Box 2

• “Collected” and analyzed information about your organization’s capabilities – using the “Planning Survey” that we you (in the binder) at Session 1.

• Received and analyzed Growing Pains and Organizational Effectiveness Survey Results.



Session 2

What You’ve Completed to Date

Boxes 3 and 4

• Prepared a draft of your company’s Business Concept and Strategic Mission – at our last session and/or as a follow-up to our last session.

• Continued to develop your plan – using the “Planning Workbook” we gave you at our last session.



Session 2

Quick Review: Growing Pains and Organizational

Effectiveness Survey



Session 2

What Are Growing Pains?

• Problems which occur as a result of inadequate organizational development in relation to business size and complexity.

• A common set of symptoms that something has gone wrong in the process of organizational development.

• A signal of the need to make the transitions from one stage of organizational development to the next.

• A set of leading indicators of future financial performance.



Session 2

Growing Pains Scoring Interpretation

Score Range Color Interpretation

10-14 Green Everything is “OK”

15-19 Yellow Some things to watch

20-29 Orange Some areas need attention

30-39 Red Some very significant problems

40-50 Purple A potential turnaround situation



Session 2

Organizational Effectiveness Survey© (OES)

● The Management Systems Organizational Effectiveness Survey© is a validated instrument.

● The survey consists of 65 items that measure the extent to which an organization has developed the systems and structures needed to support its growth and/or stage of development.

● For an organization to have the highest probability of success over the long-term, it needs to effectively manage all six levels in the Pyramid of Organizational Development plus Financial Results, individually and as a system.



Session 2

To a Very Slight ExtentPurple1.0-1.9

To a Slight ExtentRed2.0-2.9

To Some ExtentOrange3.0-3.9

To a Great ExtentYellow4.0-4.4

To a Very Great ExtentGreen4.5-5.0

InterpretationColorScore Range

OES Mean Score Interpretation



Session 2

Scoring Interpretation

• This report presents four different types of scores:

– Mean score is a standard statistical “average” score on a 5-point (Likert) scale.

– % Favorable = (# respondents with scores of ‘4’ or ‘5’)/(Total # respondents)

– % Neutral = (# respondents with scores of ‘3’)/(Total # respondents)

– % Unfavorable = (# respondents with scores of ‘1’ or ‘2’)/(Total # respondents)



Session 2

Questions About Your Survey Results



Session 2

Most Significant Issues for My Company



Session 2

Share With Your Team:

• The 1-3 most significant issues you feel your company is facing at the current time– Based on your review of the information you

collected/received (including the Planning Survey, Growing Pains Questionnaire, and Organizational Effectiveness Survey results).

• Note any similarities among your team.

• Develop specific action steps that might be taken to address the issues identified.

• Flip chart your issues and strategies for resolving them.

• Be prepared to share the results of your discussion when we reconvene.



Session 2

Review: Business Foundation



Session 2

Business Definition

A broad statement of what business the firm is in that acts as a lens through which to view future strategies.

– Who are our customers?

– What are their needs?

– How do they buy?

– What is value to them?

Addresses the Questions:



Session 2

A broad, measurable, time-dated statement of what the organization wants to or needs to become by the end of the planning period.

Strategic Mission



Session 2

What is Strategy?

Conceptual Definition:

Strategy can be defined as the different, yet integrated, courses of action that will be taken by a firm or business unit to compete effectively in its chosen markets in order to obtain desired results.

Operational Definition:

Where you Play “The Game”

How you Play “The Game”



Session 2

III

I

II

TIERS OF THE MARKET

-

Price

+

Quality

Service

Prestige

Quality

Service

PrestigePrice

Where You Play “The Game”:Analysis of the Strategic Board

Vertical Market Segment

Horizontal Market

Segment

III

I

II

THE STRATEGIC BOARD



Session 2

Retail Industry by Tier

IINordstrom, Gap,

Robinsons-May, Limited

IIIK-Mart,Wal-Mart, JC Penney,

Discount Stores

QualityServicePrestige

Price+

-

QualityServicePrestigePrice

ISaks,

Neiman Marcus,Barneys



Session 2

Automobile Industry by Tier

I

Rolls Royce,Ferrari, Mercedes

Benz

IIHonda Accord, Toyota Camry, Ford Taurus, Nissan Maxima

IIIGeo Metro, Hyundai, Ford Escort, Toyota Corolla,

QualityServicePrestige

Price+

-

QualityServicePrestigePrice



Session 2

The Strategic Board for the Automobile Industry

• Toyota Corolla

• Honda Accord

• Toyota Camry

•Lexus•Rolls•BMW

Sedans

• Toyota Celica• Volkswagen

Jetta

•Porsche•Ferrari

Sports Cars

MinivansLight TrucksSUVs

• Toyota RAV4• Suzuki Samurai

III

• Toyota Sienna• Ford Windstar

• Toyota Tacoma• Ford Ranger

• Ford Explorer• Toyota Landcruiser• GMC Blazer• Jeep Cherokee

II

•Lexus•Range Rover•Hummer•EscaladeI

Vertical SegmentsHorizontal Segments



Session 2

CoreStrategy

Operational Strategies

Supporting Strategies

MarketsCult

ure

Pro

ducts

and

Serv

ices

Managem

ent

Systems

OperationalSystems

Reso

urc

es

How You Play “The Game”:Three Levels Of Strategy:



Session 2

Sample Core Strategies

• Starbuckso Redefine the nature of the coffee café and “blanket” the

U.S.

o Use our dominance in retail to become the Coca-Cola of coffee.

• Southwest Airlines

No frills, short-haul, high frequency discount airfare in relatively non-competitive markets.

• TechLinkSolutions guaranteed to go live.



Session 2

Strategic Planning – Strategic Business Plan

4 STRATEGIC BUSINESS PLAN







5 BUDGETING Situation Analysis Business Definition Strategic Mission Strategy Key Result Areas Objectives and Goals Action Plans


Reports Meetings



Session 2

Elements of the Strategic Plan

Key Result Areas

Objectives

Goals

Action Plans

Business Foundation• Business Definition• Strategic Mission• Core Strategy



Session 2

Strategic Planning Terminology



Session 2

Key Result Areas

Areas of the business where performance has a critical impact on the achievement of the mission. Defined in one or two

words. A category, not an action.

We suggest using the 6 levels of the Pyramid of Organizational Development + Financial Results:

- Markets - Operational Systems- Products - Management Systems- Resources - Culture - Financial Results



Session 2

Strategic Planning Terminology



Session 2

Key Result Areas

Areas of the business where performance has a critical impact on the achievement of the mission. Defined in one or two

words. A category, not an action.

We suggest using the 6 levels of the Pyramid of Organizational Development + Financial Results:

- Markets - Operational Systems- Products - Management Systems- Resources - Culture - Financial Results



Session 2

Objectives

Overall definitions of what is to be achieved in each Key Result Area, typically over several years. Describes a broad outcome, not an action. Each KRA must have at least one stated objective that is derived from the mission statement. Most KRAs will have between three and six objectives.



Session 2

Sample Objectives

● Develop and implement a structured corporate-wide and branch office strategy for purchasing from suppliers

● Acquire profitable new products in our current market niches that will contribute to overall growth.



Session 2

Goals

Realistic, time-dated and measurable sub-objectives, the responsibility for which is assigned to a specific individual (usually a manager or department head). Defines scope and timing of an outcome. Each objective should have one or more goals.



Session 2

SMART Goals

S Specific Outcome

M Measurable/Quantifiable

A Accountable/Achievable

R Results-Oriented and Realistic

T Time-Dated



Session 2

Sample Goals

● Develop and begin production of two new internally generated product ideas that will result in total sales of $4 million by 12/31/0X. [Peter]

● Earn revenues of $5 million by 12/31/0X. [Paul]

● Open new accounts with average sales of $30,000 each by 12/31/0X. [Mary]



Session 2

Sample Plan PageKEY RESULT AREA: 1.0 Markets and ProductsObjective 1.1: Grow active buyer base at a rate consistent with overall sales growth per year.

Goals Prty Who When Status

1. Increase our active buyer base by 50% from 10/1/0X to 9/30/0X through existing strategies.

A BH 10/1/0X

2. Increase active buyer base by 40% from 10/1/0X to 9/30/0X through new strategies.

B LM 10/31/0X

3. Identify and evaluate vehicles for growth beyond FY ‘0X.

A BH 9/30/0X

4. Identify new strategies to support FY ‘0X growth.

C LM 6/30/0X

Goal Prty Who When Status

YTD: +39%



Session 2

Strategic Planning Process







5 BUDGETING4 STRATEGIC BUSINESS PLAN

Situation Analysis Business Definition Strategic Mission Strategy Key Result Areas Objectives and Goals Action Plans


Reports Meetings



Session 2

Introduction to Performance Management Systems



Session 2

Organizational Control/Performance Management System

A set of mechanisms (both processes and techniques) designed to increase the probability that people will behave in ways that lead to the attainment of organizational objectives.



Session 2

Six Elements in an Effective Individual Performance Management

System

• Strategy/Role Descriptions– Key Result Areas– Objectives

• Goals

• Measurement System

• Progress Review and Feedback

• Performance Appraisal

• Rewards



Session 2

The Individual Performance Management System

PerformanceEvaluation/Appraisal

Strategy/Role

Description

• KRAs• Objectives

Results

Measurement SystemRewards

Individual Goals

Behavior

Progress Review/

Feedback



Session 2

Please note that all of the materials in this slide presentation are the proprietary intellectual property of Management

Systems Consulting Corporation and may not be reproduced or otherwise distributed

without written permission.

For further information about reproduction rights for materials in this presentation, please contact:

Management Systems Consulting Corporation10990 Wilshire Blvd., Suite 1420

Los Angeles, CA 90024(310) 477-0444

www.mgtsystems.com

nawbo-la peak leadership academy management systems consulting corporation 10990 wilshire blvd....

Documents

performance management

session andor

strategic planning process

companys strategic plan

planning survey

companys plan

companys business concept

planning workbook