Leadership and

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Chapter 5

• Leadership and
• Strategic Planning

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Leadership

• The ability to positively influence people and
  systems under ones authority to have a
  meaningful impact and achieve important results

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Strategic Planning

• The process of envisioning an organizations
  future and developing the necessary goals,
  objectives, and action plans to achieve that
  future.

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The Baldrige Leadership Triad
Strategic Planning
Operations
Leadership
Customer and Market Focus
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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
• Recognizing employee contributions
• Providing honest feedback

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Key Idea
Six key leadership competencies can be described
as navigator, communicator, mentor, learner,
builder, and motivator.
Dale Crownover, President, Texas Nameplate Co. (a
2-time Baldrige Award recipient)
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Leadership Competencies

• Navigatorcreates shared meaning and provides
  direction toward a vision,mission, goal, or
  end-result.
• Communicatoreffectively listens and articulates
  messages to provide shared meaning.
• Mentorprovides others with a role to guide their
  actions.
• Learnercontinuously develops personal knowledge,
  skills, and abilities through formal study,
  experience, reflection, and recreation.
• Buildershapes processes and structures to allow
  for the achievement of goals and outcomes.
• Motivatorinfluences others to take action in a
  desirable manner.

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Leading Practices Leadership (1 of 2)

• Create and deploy a customer-focused strategic
  vision and clear quality values
• Create a sustainable organization and environment
  for performance improvement, accomplishment of
  the mission, innovation, agility, and learning
• Demonstrate personal commitment to organizational
  values, develop future leaders, and reinforce
  high performance
• Create a focus on action and communicate with,
  empower, and motivate all employees

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Leading Practices Leadership (2 of 2)

• Address organizational governance to include
  management and fiscal accountability, protection
  of stakeholder interests, and conduct evaluations
  to improve the leadership system
• Create an environment that fosters legal and
  ethical behavior
• Integrate public responsibilities,
  resource-sustaining processes, and community
  support into business practices

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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

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Key IdeaCreating the Leadership System
An effective leadership system respects the
capabilities and requirements of employees and
other stakeholders, and sets high expectations
for performance and performance improvements.
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Strategic Planning
A strategy is a pattern or plan that integrates
an organizations major goals, policies, and
action sequences into a cohesive whole. Formal
strategy includes

• Goals to be achieved
• Policies to guide or limit action
• Action sequences, or programs, that accomplish
  the goals

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Leading Practices - Strategic Planning

• Systematic planning systems for strategy
  development and deployment
• Understand the competitive environment and the
  factors and strategic challenges that determine
  success, and gather and analyze 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
• Identify key measures and indicators for tracking
  progress, reinforce organizational alignment, and
  compare performance with competitors

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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
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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

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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.

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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

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Environmental AssessmentSWOT Analysis

• 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

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Key IdeaStrategy Development
Strategies are broad statements that set the
direction for the organization to take in
realizing its mission and vision. Strategic
objectives are what an organization must change
or improve to remain or become competitive. Action
plans are things that an organization must do to
achieve its strategic objectives.
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Strategy Deployment

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

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Key IdeaStrategy Deployment
Strategic objectives and action plans often
require significant changes in human resource
requirements, such as redesigning the work
organization or jobs to increase employee
empowerment and decision making, promoting
greater labor/management cooperation, modifying
compensation and recognition systems, or
developing new education and training initiatives.
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Leadership and Organizational Structure

• Basic types of organizational structures
• Line organization
• Line and staff organization
• Matrix organization

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Key IdeaOrganization structure
As more and more companies accept the process
view of organizations, they are structuring the
quality organization around functional or
cross-functional teams.
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Leadership in the Baldrige Criteria

• The Leadership Category examines how an
  organizations 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 the organizations governance and how
  the organization addresses its public and
  community responsibilities.
• 1.1 Organizational Leadership
• a. Senior Leadership Direction
• b. Organizational Governance
• b. Organizational Performance Review
• 1.2 Social Responsibility
• a. Responsibilities to the Public
• b. Ethical Behavior
• c. Support of Key Communities

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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