1. Leadership and Strategic Planning
Chapter 5
Leadership and Strategic Planning

2. Leadership
The ability to positively influence people and systems to have a meaningful impact and achieve results

3. Strategic Planning
The process of envisioning an organization’s future and developing the necessary procedures and operations 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 aciton
Creating an enjoyable work environment
Soliciting input and feedback from customers
Ensuring that employees are effective contributors
Motivating, inspiring, and energizing employees
Recognizing employee contributions
Providing honest feedback

6. Core Leadership Skills
Vision
Empowerment
Intuition
Self-understanding
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
Integrate public responsibilities and community support into business practices

8. Leadership Theories Trait approach Behavioral approach
Contingency (situational) approach
Role approach
Emerging theories:
Attributional theory
Transactional theory
Transformational leadership theory
Substitutes for leadership theory
Emotional intelligence theory

9. Zenger-Miller Leadership Competencies
Setting or sharing a vision
Managing a change
Focusing on the customer
Dealing with individuals
Supporting teams and groups
Sharing information
Solving problems, making decisions
Managing business processes
Managing projects
Displaying technical skills
Managing time and resources
Taking responsibility
Taking initiative beyond job requirements
Handling emotions
Displaying professional ethics
Showing compassion
Making credible presentations

10. Leadership System
Refers to 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. Common Organizational Structure
Customers
Customer
team
Customer
team
Customer
team
Systems and support services
Executive steering committee
CEO

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

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

14. Tasks Accomplished by Strategic Planning
Understand important customer and operational requirements
Optimize use of resources and ensure bridging between short-term and longer-term requirements
Ensure that quality initiatives are understood at all organizational levels
Ensure that work organizations and structures will facilitate accomplishment of strategic plan

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

16. 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

17. 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.”

18. 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”

19. 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 5.7!

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

21. Leadership in the Baldrige Criteria
The Leadership Category examines how an organization’s 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 how the organization addresses its responsibilities to the public and supports its key communities.
1.1 Organizational Leadership
a. Senior Leadership Direction
b. Organizational Performance Review
1.2 Public Responsibility and Citizenship
a. Responsibilities to the Public
b. Support of Key Communities

22. Strategic Planning in the Baldrige Criteria
The 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 Development
a. Strategy Development Process
b. Strategic Objectives
2.2 Strategy Deployment
a. Action Plan Development and Deployment
b. Performance Projection