1. Leadership and Strategic Planning

2. Leadership
The ability to positively influence people and systems under one’s authority to have a meaningful impact and achieve important results

3. Strategic Planning
The process of envisioning an organization’s future and developing the necessary goals, objectives, and action plans to achieve that future.

4. The Baldrige “Leadership Triad”
Strategic
Planning
Operations
Leadership
Customer and
Market Focus

5. Executive Leadership Defining and communicating business directions
Ensuring that goals and expectations are met
Reviewing business performance and taking appropriate action
Creating an enjoyable work environment
Soliciting input and feedback from customers
Ensuring that employees are effective contributors
Motivating, inspiring, and energizing employees

6. Key Idea
Effective leadership requires five core leadership skills: vision, empowerment, intuition, self-understanding, and value congruence.
Dale Crownover, President, Texas Nameplate Co.

7. Leading Practices – Leadership
Create a customer-focused strategic vision and clear quality values
Create and sustain leadership system and environment for empowerment, innovation, and organizational learning
Set high expectations and demonstrate personal commitment and involvement in quality
Integrate quality values into daily leadership and management and communicate extensively

8. Leading Practices – Leadership
Review organizational performance
Create an environment and governance system that fosters legal and ethical behavior
Integrate public responsibilities and community support into business practices

9. Leadership Theories Trait approach Behavioral approach
Contingency (situational) approach

10. Leadership System
Leadership system – how decisions are made, communicated, and carried out at all levels; mechanisms for leadership development, self-examination, and improvement
Effectiveness of leadership system depends in part on its organizational structure
CRI Steering committee of 4
sets directions, frequent interaction with employees, review performance daily, formal monthly evaluations and OFIs

11. Governance
Governance – the system of management and controls exercised in the stewardship of an organization.
Approving strategic direction
Monitoring and evaluating CEO performance
Succession planning
Financial auditing
Executive compensation
Disclosure
Shareholder reporting

12. Leadership and Social Responsibilities
Ethics
Health, safety, and environment
Community support

13. Strategic Planning
“A strategy is a pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole.”
Formal strategy includes:
Do the “point north” thing
Goals to be achieved
Policies to guide or limit action
Action sequences, or programs, that accomplish the goals

14. Leading Practices - Strategic Planning
Active participation of top management, employees, customers, suppliers
Systematic planning systems for strategy development and deployment
Use of a variety of external and internal data
Align short-term action plans with long-term strategic objectives, communicate them, and track progress
Derive human resource plans from strategic objectives and action plans

15. Strategic Planning Process
Reason for existence
Future intent
Attitudes and policies
Mission
Vision
Guiding Principles
Environmental assessment
Capabilities and risks
Broad statements of direction
Strategies
Strategic Objectives
Things to change or improve
Action Plans
Implementation

16. Mission
Definition of products and services, markets, customer needs, and distinctive competencies
Solectron: “…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.”

17. Vision Where the organization is headed and what it intends to be
Brief and memorable - grab attention
Inspiring and challenging - creates excitement
Descriptive of an ideal state - provides guidance
Appealing to all stakeholders - employees can identify with
Solectron: “Be the best and continuously improve”

18. Values (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, balance

19. Environmental Assessment
Customer and market requirements, expectations, and opportunities
Technological and other innovations
Organizational strengths and weaknesses
Financial, societal, ethical, regulatory and other potential risks
Changes in global or national economy
Factors unique to the organization, such as partner and supply chain needs

20. Strategy Deployment
Developing detailed action plans, defining resource requirements and performance measures, and aligning work unit, supplier, or partner plans with overall strategic objectives.

21. Policy Deployment (Hoshin Kanri)
Top management vision leading to long-term objectives
Deployment through annual objectives and action plans
Negotiation for short-term objectives and resources (catchball)
Periodic reviews
See Figure 5.6!

22. The Seven Management and Planning Tools
Affinity diagrams
Interrelationship digraphs
Tree diagrams
Matrix diagrams
Matrix data analysis
Process decision program charts
Arrow diagrams

23. Leadership and Organizational Structure
Basic types of organizational structures
Line organization
Line and staff organization
Matrix organization