BUS 4750 Final

Cornerstone of documentation

SOPs (PDCAs also key element of)

Common features of OD (Organizational Development), Quality initiatives, Strategic Planning

Self-analysis, desired future state Process Improvement (oriented) Value-loaded Profound and wide-scale change

Effective leaders should:

Set clear and attainable goals Clearly define the job Hold people accountable and responsible Let employees know how their job effects the customer and the bottom line

Internal Communication

Should be focused on creating awareness of how each employee can contribute to the plans success Designed to protect intellectual property

Recent Facebook announcement of "Libra" cryptocurrency for social network - why it is not a good idea

Some say it has the ability to turn cryptocurrency into everyday features of life. Cryptocurrency is being investigated by federal regulators for monopolistic practices and repeated privacy lapses

Strategy

Tends to be more long-term (vision) Long-term goals and how you're going to achieve them. Our path or bridge from where we are to where we want to be (to achieving your organization's mission) Tends to be defined in a broader or general sense

Tacticts

The methods and actions taken to accomplish strategies The concrete steps that describe how you are going to achieve your strategy. (best practices, specific plans, resources, etc. also called "initiatives") Tend to be more short-term actions Tend to be narrower and more specific

Why Amazon is best strategic player in tech

They embody the emerging culture of business strategy. They did not rise to power by inventing a new product or service like Google, Apple, Facebook, or Microsoft. Amazon came to power by systematically taking down an entire industry. Strategic depth, NOT technical wizardry, design brilliance, or sheer energy.

What did Bernard MarrFollow think about "Volvo's mission statement?

Too lengthy and cliche. Not as clear and inspiring as a it should be.

T/F A vision statement is future focused using a powerful phrase at the beginning to help inspire action.

True

T/F An existing company could distribute a written survey to all employees to gather input for their strategic plan?

True

T/F Involving those connected to your business and using cross-functional committees can help develop a good mission statement?

True

T/F Leadership style, communication style, decision making style, personality, IQ, emotional intelligence and risk-taking behavior can impact the effectiveness of strategic planning and also stress/conflict levels.

True

T/F Pulling change involves communication, education and allows employees to be involved in the process by getting their input

True

T/F Radically innovative change involves introducing a practice new to the industry.

True (Three types of change)

Father of TQM

W. Edwards Deming

The father of TQM is ____________, the father of problem solving is ________________.

W. Edwards Deming, George Polya

Peter Drucker strategic considerations:

"Lead by example" "MBWA - mng by walking around" Branding and reputation - Innovation, physical and financial resources - Productivity and profitability - Management development and performance - Public responsibility and community

Do strategy and tactics need to be in-line with one another?

Yes, always. A tactic should align with your long-term strategy. Thus, your strategy should inform which tactics your organization will execute or fund.

Core competency

a defining capability or advantage that distinguishes an enterprise from its competitors - a deep proficiency that enables a company to deliver a unique value to customers

Six Sigma

a process for reducing costs, improving quality, and increasing customer satisfaction

What is a good "Rule of Thumb" for understanding the difference between a strategy and a tactic?

"think strategically, act tactically"

Core competencies

(Long-term health or overall strategic strength) Those functions that the organization can do as well as or better than any other organization in the world - a unique ability that cannot be easily imitated. - give a company competitive advantages - skills and competencies that would differentiate them

Predictive Analytics

(Not what happened, but what happens next) - Brings together advanced analytics capabilities spanning ad-hoc statistical analysis, predictive modeling, data mining, text analysis, optimization, real time scoring, and machine learning. - Statistical and analytical techniques used to develop models that predict future events or behaviors. - extracts information from data and uses it to predict future trends and identify behavioral patterns

Mission

(what is the business going to do) a brief statement of an organization's functions, markets, competitive advantages, goals and philosophies. Key market contributions, distinction/uniqueness and customers. Why does the organization exist (its purpose)?

Ambiguous Nature, and stress involved in strategic planning

- Ambiguous with no future guarantees - Stressful to varying degrees based on the experience level of your team, complexity and competitiveness of your marketplace, availability of resources or other factors. Stress: Too little - not much gets done Too much - cripples Moderate 0 gets more done than the other 2

Role of Tension - T. Falcon Napier

- Ask critical questions throughout process - Guard against losing interest and boredom - Guard against apathy "just tell me what to do" - Guard against distractions

TQM (Total Quality Management)

- Backbone of all quality management methods and standards - Deming - father of, considers the elimination of FEAR to be most important point A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.

Key elements of a strategic plan

- Communications strategy - Strategic planning task force - Mission and vision statement, core values - Goals: broad strategies - Objectives: specific, measurable, action oriented, realistic, time bound strategies to achieve goals and vision - Strategic areas of focus - Tasks: specific actions that are assigned to individuals/departments to achieve objectives. Functional area vision statement - Implementation strategy from a plan outline and tactical strategy (action plan) - Monitoring the strategic plan for successes and challenges. Re-tooling if the plan is off track

Strategic Management

- Continuous planning, monitoring, analysis and assessment of what is necessary for an organization to meet its goals and objectives - Fast paced innovation, emerging technologies, and customer expectations. - A process that involves managers from all parts of the organization in the formulation and the implementation of the major goals and initiatives taken by a company's top management on behalf of owners. based on the consideration of resources and assessment of the internal and external environments/markets in which the organization competes. - provides overall direction to the enterprise and involves specifying their objectives, developing policies and plans to achieve these objectives. Resources are then allocated to implement the plans

Michael Porter's Three Generic Competitive Strategies

- Cost leadership (low cost producers) - Differentiation (unique in an industry) *Good option for technical industries - Focus (choice of scope) (Low cost, premium products, market niche)

Dr. Vladimir Kvint

- Defines strategy as a system of finding, formulating and developing a doctrine that will ensure long-term success if followed faithfully. - He believes two important questions should be asked. 1. What business should we be in? 2. How shall we compete in this business

Key aspects of strategy

- Futuristic - Address what your firm is currently doing (reality check) - Set of goals and objectives - Shared ownership and contribution by all partners - Standout from the competition (differentiation) - focus on profitable growth - add value to clients and customers

Key elements of TQM

- PDCA, SOPs, SPC - Listening and eliminating fear and focus on process - Training and education - Empowered to make change - Cross functional/self-managed teams

What can a company do to gather company wide input in regards to strategic planning?

- Use a cross-functional committee to put the plan together - for an existing company, distribute a survey to employees

Long-term planning

- begins with the current status and lays down a path to meet estimated future needs - strategic planning is a form of long-term planning

3 Levels of Change

1. Adaptive - reintroduces a familiar practice 2. Innovative - introduce a practice new to organization 3. Radically innovative - introduce a new practice to the industry Example - six sigma and lean six sigma - both radical changes to past (TQM on steroids)

5 Best strategies (Tom Wright)

1. Airbnb - ability to handle increased market demand and maintain profitability, customer support, global hospitality standards and 5-star hosts 2. Toyota - humility - Knowing their own weaknesses can be a key to success, and number one value is "humility" 3. HubSpot - "Inbound Marketing" creators - helped companies create blogs, ebooks, and sharing content on social media 4. Apple - although being fast can be a disadvantage until tech matures, but it can bring success if functionality, quality, price and service are present 5. Paypal - challenged status quo - overcame a lot of banking barriers w/ change

Three levels of strategy

1. Corporate-level strategy 2. Division (Business-level strategy - scope of business activities) 3. Department (functional) Feasible action plans

During strategic planning, communication can?

1. Create engagement - success relies on the activities of many people in the org 2. Generate broad input - SWOT input from array of individuals ensures the plan considers wide range of impacts that will affect the org both positively and negatively 3. Test assumptions - As strategies develop, input can help determine whether they are appropriate and clearly aligned with the established objectives 3. Provide updates on Progress - By effectively keeping a wide range of people in the loop during the development and implementation of a strategic plan, companies ensure their success. *also - protect intellectual property *Lets individuals know how what they do relates to the plan.

Michael Porter's Three Strategic Principles:

1. Creating a unique & valuable market position 2. Choosing what not to do! 3. Creating "Fit" by aligning company activities to one another to support the chosen strategy.

Three tests to determine a core competency

1. Development of new products and services that provide potential access to a wide variety of markets 2. Make a significant contribution to perceived benefits of the end product 3. should be difficult for competitors to imitate (patents) (Overall strategic strength)

5 worst business strategies (Tom Wright)

1. EA games - failed b/c strategy was about making money at expense of customer 2. Kodak - had innovation for future success, but didn't move forward for fear it would hurt their current product. 3. K-Mart - lacked focus - vision was generic and could be applied to any retailer 4. Blackberry - Business to Business involves humans - people didn't want to use their phones anymore 5. McDonalds - Salads fail to sell and they make you fat

Six tips to making a good mission statement

1. Involve everyone connected to business 2. Allocate an adequate amount of time to develop (should be brief but clearly convey goals and aspirations) 3. Plan a date to work on it with everyone involved 4. Be prepared with a list of topics and materials 5. Brainstorm with entire group - compare and collaborate ideas 6. Use "radiant" words; words that pop and create a visual; creative language

KPI (Key Performance Indicator)

A financial or non-financial measure that uses quantifiable data to define and assess progress toward specific organizational goals and typically is tied to an organization's strategy.

Strategic Planning

A systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Cornerstone of all quality approaches (not just TQM)

Documentation

T/F The cornerstone of all quality approaches is the audit function.

False - Documentation

George Polya

Father of Problem Solving - Problem solving is the most characteristically human activity. It's a skill learned by doing and requires a great deal of practice.

What a vision statement does

Focus on desired outcomes that are long-term Should be a phrase that is used to energize and inspire those inside and outside the business Establish desired outcomes

What a mission statement does

Focuses on the purpose of the company by describing: - Why the company exists - What it does - and Who it does it for Focuses on the here and now, serving as an ongoing guide for what the company is truly about.

CMMI (Capability Maturity Model Integration)

Focuses on zero free defects in software development

Why is a communication plan critical to the implementation of a strategic plan?

For strategic plans to be effectively implemented, they rely upon the input and commitment of a wide range of individuals who need to be involved and informed in the process from its earliest stages to the generation of results. For everyone to know how what they do relates to the plan Protects intellectual property

Father of Problem Solving/Rational thinking

George Polya

Change Management - Pushing Change

Imposing or forcing new ways. Revolutionary (faster) in nature and possible quantum type change through directive management actions. You can still use communication but generally involves one-way top down flow.

Difference between inner and outer vision statement

Inner: describes how you want your employees, owners, (internal to bus) to view your company. Outer: focuses on those external to company (customers, suppliers, community) and how you want them to view the company.

Gemba Kaizen

Japanese version of TQM

Change Management models

Lewin and Kotter

What stage does strategic planning fail most often?

Management/Execution stage

What are the six habits of a true strategic thinker?

Anticipate Think Critically Interpret Decide Align Learn

Weakness in Change Management Models

Back then, economy was different and technology wasn't changing as quickly

Threat of New Entrants

Barriers to entry, Economies of scale, Product Differentiation, Capital Requirements, Switching Costs, Access to Distribution Channels, Cost Disadvantages Independent of Scale, Government Policy, Expected Retaliation

Father of Six Sigma

Bill Smith

Michael Porter's Five Forces Model

Buyer power Supplier power Threat of substitute products or services Threat of new entrants Rivalry among existing competitors

External Communication

Commonly involves posting the organizations mission, vision and key values on the website Designed to protect intellectual property

Change management - Pulling Change

Communication, education, persuasion, involvement. Try to develop commitment and stakeholders. Time consuming

Kotter's model of change

Create a sense of urgency, Cross-functional committee (create vision), embed change into culture Creating sense of urgency to change similar to Lewin's approach Use cross-functional steering committee, Having and communicating a vision, pilot/focus studies, build on short-term wins Embed change into new culture similar to Lewin's approach

Things that have an impact on the strategic planning process

Organizational culture Organizational Values It's leader

What is at the core of continuous (quality) improvement?

PDCA (Plan, Do, Check, Act)

What was the author of Six Habits of True Strategic Thinkers?

Paul H. Shoemaker

PDCA is:

Plan, Do, Check, Act At the core of continuous improvement Used in all major approaches of quality Was modified by Six Sigma

Strategy is based on extensive research and several other things, what are they?

Planning and internal reflection

Quality, organizational development and strategic planning typically focus on __________________ improvements.

Process

strategic decision making

Process of charting a course based on long-term goals and a longer term vision - clarify company's big picture aims and align your short-term plans with this broader mission

Rational model of decision making

also called the classical model, explains how managers should make decisions; - Assumes we have all needed information - Assumes managers will make rational, logical, data driven decisions that will be the optimum in furthering the organization's best interests.

Threat of substitute products or services

buyer inclination, price performance, switching costs

Forces of Change

external and internal Internal: Economic, political market, technological, demographic External: Morale, turnover, cash flow and other business issues, Union attempt

Peter Drucker

father of modern management

Degree of competitive rivalry in the industry

industry concentration, industry growth, capacity (over or under), product differences

Buyer Power

leverage, incentives, volume, brand identity, price sensitivity

Strategic Problem Solving

predicting (anticipating) problems or opportunities that might be encountered and documenting key info and solutions

Supplier Power

supplier concentration, volume considerations, substitute inputs

Strategic planning, the plan, m/e of the plan, decision-making and problem solving

the 4 stages

Core values

the operating philosophies and principles that guide your organizations conduct. Relationships with customers, partners, employees and shareholders. Usually summarized in the mission statement or in a separate statement of "core values"

Lewin's Model of Change

unfreezing, changing, refreezing (Considers internal and external factors) Unfreezing - creating the motivation to change, awareness, organizational assessment. Communication. Changing - communication, new models/behaviors, education, allowing new ways to be adopted. Refreezing - stabilize new desired state, integrate and use new ways, fine tune and better utilize changes

Vision

your inspiration; a picture of your companies future (helps form strategic planning) dreams and hopes for your business