1. Slide 6.1 Chapter 6 Leadership and Strategic Planning Strategic Planning

2. Session Overview n Leadership n Effective leadership skills n Leading leadership practices n Leadership theories n Strategic planning process

3. Session Overview cont… n The learner should be able to: ä Define leadership ä List two effective leadership skills ä Identify one leadership theory ä Describe the purpose of a mission statement

4. Leadership n Leadership Leadership is the ability to positively influence people and systems under one’s authority to have a meaningful impact and achieve important results  Leader create clear & visible quality values, and integrate these values into the organizations strategy Slide 6.2

5. Effective Leadership Skills Five effective leadership skills: 1. Vision n Executive who manages for the future 2. Empowerment n Leader who encourages employees to participate in quality improvement efforts 3. Intuition n Leaders who use intuition to make difficult decisions 4. Self-understanding n Leaders who identify relationships with themselves, the organization, and employees 5. Value congruence n Leaders integrate their values into a company’s management system Slide 6.3

6. Slide 6.4 Leading Leadership Practices n Create strategic vision and quality values n Create and sustain leadership system and environment for quality excellence n Set high expectations n Demonstrate personal commitment and involvement in quality

7. Slide 6.5 Leading Leadership Practices cont… n Integrate quality values into daily leadership and management n Integrate societal responsibilities and community involvement

8. Slide 6.6 Leadership Theories n Trait approach ä Discovering how to become a leader by examining the characteristics of recognized leaders n Behavioral approach ä Determine type of leadership behavior that leads to successful task performance ä Theory X ä Manager believes that subordinates must be coerced and controlled in order to obtain high productivity ä Theory Y ä Manager assumes that employees are self-motivated to perform their best work

9. Leadership Theories cont… n Contingency (situational) approach ä Effective leadership depends on situational factors that may change over time n Role approach ä Leaders perform certain sets of behaviors depending on situational factors Slide 6.7

10. Slide 6.8 Leadership System n Refers to how decisions are made, communicated, and carried out at all levels n Effectiveness of leadership system depends in part on its organizational structure

11. Slide 6.9 Strategic Planning n Goals to be achieved n Policies to guide or limit action n Action sequences, or programs, that accomplish the goals “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:

12. Slide 6.10 Tasks Accomplished by Strategic Planning n Understand important customer and operational requirements n Optimize use of resources and ensure bridging between short-term and longer-term requirements n Ensure that quality initiatives are understood at all organizational levels n Ensure that work organizations and structures will facilitate accomplishment of strategic plan

13. Slide 6.11 Leading Practices - Strategic Planning n Active participation of top management and employees n Strategy driven by customer wants and needs n Supplier involvement in planning process n Well-established planning systems for strategy development and deployment

14. Slide 6.12 Strategic Planning Process MissionVisionGuiding Principles Gap Analysis Strategic Goals Strategies Objectives

15. Strategic Planning Process n Mission ä Why are we in business ä Example: “To engineer, produce, and market the world’s finest automobiles, known for uncompromised levels of distinctiveness, comfort, convenience, and refined performance” - Cadillac n Vision ä Describes where the organization is headed ä Example: Alcoa is a growing worldwide company dedicated to excellence through quality – creating value for customers, employees, and shareholders through innovation, technology, and operational expertise Slide 6.13

16. Strategic Planning Process n Guiding Principles ä Guide the journey of the vision by defining attitudes & policies for all employees. ä Example: PepsiCo’s shared values are diversity, integrity, honesty, teamwork, accountability, and balance (respecting individuals choice to achieve professional and personal balance in life n Goals ä Broad statements that set the direction for the organization to take in realizing its mission n Strategies ä Key actions toward achieving goals Slide 6.14

17. Transfer of Learning Questions Define leadership Answer - ability to positively influence people and systems under one’s authority to have a meaningful impact and achieve important results List two effective leadership skills Answer – vision, empowerment, intuition, self understanding, and value congruence

18. Transfer of Learning Questions cont… Identify one leadership theory Answer – trait approach, behavior approach, contingency approach, & role approach Answer – trait approach, behavior approach, contingency approach, & role approach Describe the purpose of a mission statement Answer – Describes why the organization is in business