Non-Instructional Intervention Strategic Planning and Management Allan Wolf March 12, 2006

Definition and Description Definition Business experts define strategic planning in a variety of ways. For most of us the term strategy is the term least understood. De Kluyver and Pearce II say business strategy is about positioning an organization for sustainable competitive advantage. It involves making choices about which industries to participate in, what products and services to offer, and how to allocate corporate resources. Its primary goal is to create value for shareholders and other stakeholders by providing customer value. (2003, p.1) Thompson and Strickland define it as “the ‘game plan’ management has for positioning the company in its chosen market arena, competing successfully, pleasing customers, and achieving good business performance” (1999, p.2). While each of these is definitive from a business perspective, an HPT perspective says it “is the process by which an organization envisions its future and develops the necessary goals and procedures to achieve that vision” (Van Tiem, 2004, p.99). Description Components and Process Companies devise their strategies due to two compelling needs: 1. To proactively shape how a company’s business will be conducted, 2. To mold the independent decisions and actions initiated by departments, managers, and employees in a coordinated company wide game plan (Thompson & Strickland, 1999, p. 2). Need alone is not sufficient, there has to be a structure or process for effective development. In developing a strategy, strategic planning, there are three key questions used to organize the process: 1) where are we now, 2) where do we go, and 3) how do we get there (De Kluyver and Pearce II, 2003, p.6). The where are we now part of the process focuses on the assessment of the current state of the organization as a whole. It revisits the issues of the organization’s mission, the long term vision, the principal stakeholders, the organization’s current performance, and the relevant trends. The where do we go question should generate and explore alternatives based on outcomes of the first question. At a business level this would include such options as concentrating on growth in a few market segments, partnering with another company, or whether to use value-added or low-cost solutions for customers. At the corporate level the focus may include shaping the portfolio of businesses the company participates in, or adjusting parenting philosophies and processes. The how do we get there components focuses on how to achieve the objectives identified in the previous steps. One key issue is how to bridge the capability gap between current skills and capabilities from those needed for the new strategic plan. This step addresses the alignment of core competences, emerging market needs, and identifying key success factors. These key questions combine to form a recognizable structure/process similar to the HPT model.(see fig.1). To compliment the process of De Kluyver and Pearce II , Thompson & Strickland identify five key tasks management that must be completed for successful strategy making and implementation: 1. Forming a strategic vision of what the company’s future business makeup will be and the direction of the organization, 2. Setting objectives, 3. Crafting a strategy to achieve the desired outcomes, 4. Implementing and executing the strategy efficiently and effectively, 5. Evaluating performance and initiating corrective adjustments in vision, long-term direction, objectives, strategy, or implementation based on actual conditions. (1999, p.3)

Henry Mintzberg. Fallacy of formalization – the belief that systems can do better than. This fallacy rests on three incorrect assumptions: 1.110). 2. 107-114). not a committing style” (p. Fallacy of detachment – work processes must be fully understood before they can be formally programmed. A committing style engages people as on a journey and everyone helps shape its course A calculating style fixes on the destination and what must be done without concern for the member’s preferences. Mitzberg (1994) also identifies one fallacy as “because analysis Figure 1 encompasses synthesis. or even nearly as well as people. identifies one such pitfall as “The problem is that planning represents a calculating style of management. although having a structure and process. Fallacy of prediction – according to the world of strategic planning the world is supposed to stand still while a plan is being developed and implemented. pp. comprehend or synthesize the strategy. . comes with pitfalls and fallacies. 2006 Strategic planning. (p. 111). A formal system cannot internalize. strategic planning is strategy making” (p. 3.Non-Instructional Intervention Strategic Planning and Management Allan Wolf March 12.109). writing in the Harvard Business Review (1994.

and Spice in the Pikes Place Market in Seattle. and motivation.al. which includes strategic planning.com/) Starbucks Corporation originated in 1971 when three academics opened a store called Starbuck’s Coffee. identifies a critical link between HPT and strategic planning when they state. Successful organizational change occurs when daily operations and innovations are directly connected to the strategic plan” (2004. design. where do we go. and implementation) 1. Thompson & Strickland list five tasks management must complete to have a successful process. It offers managers a means to manage organizational variables 3. systemic perspective 2.starbucks. The HPT model integrates with both of these business processes in the following manner (see table 1): HPT TABLE 1 * De Kluyver and Pearce II * Thompson & Strickland 1. Although HPT and organizational design. incentives. Where are we now? 2. 2006 HPT and Strategic Planning HPT synthesizes with both De Kluyver and Pearce II. design. where we are now. “Strategic management supports the organizational vision through the day-to-day implementation of the strategic plan. HPT provides a performance based. Case Studies Starbucks (Thomson & Strickland. Van Tiem et. global process that facilitates effective strategic change. Tea. De Kluyver and Pearce II ask three questions. and Thompson & Strickland. Forming a strategic vision of what the organization’s future will be and the direction it is headed. It deals with resources for task support. and how do we get there. it offers several advantages in its use for strategic planning: 1. In 1981 Howard Schultz entered the picture . Crafting a strategy to achieve outcomes 4. http://www. Setting objectives 3. Implementing chosen strategy 5. Performance Analysis Cause Analysis Intervention selection. development.99). and development Intervention implementation and change Evaluation (applied during selection. p. Evaluating performance in light of experience and changing conditions. It offers a holistic.Non-Instructional Intervention Strategic Planning and Management Allan Wolf March 12. job design. are distinct. Where do we go? 3. * Numbering coincides with previous numbering in text. Although HPT matches favorably with business models. How do we get there? 2.

2003 Cannondale filed for chapter 11 bankruptcy. with its Handmade in the USA logo. 2005.188 company operated and1. performance. Today Cannondale.952 joint operated stores in 36 countries. 3. We stay lean. We govern our every deed by what is “just and right. 2. and increasing demand for improved productivity organizations have had to rethink their purposes. 9. Cannondale (Stone & Gamble. organizational learning. Resources Books Mintzberg. 1999. R. p. R. Contemporary Issues Due to unprecedented rapid change. D. 8.” (Stone & Gamble. our customers and our vendors. They had consistent growth yearly and their innovation produced the first aluminum framed bicycle.Non-Instructional Intervention Strategic Planning and Management Allan Wolf March 12. We promote from within whenever possible.com/bikes/index. p.al. 28. The fall and rise of strategic planning.. These four innovations will create opportunities for organizations to redefine their fundamental purposes and organizational structure (Foshay et. We continuously improve everything. The acquisition included a 100 page strategic business plan used to raise the $3. reorganized and returned to its basic mission and philosophy. quality products. Kaufman. In early 1990 the senior executive team developed a mission statement based on company values and beliefs and instituted a mission review system to ensure adherence to the mission statement. four innovations can be identified as influencing organizations and utilizing HPT professionals: strategy design. Originally the strategy was to open only company stores. He is a frequent contributor to the Harvard Business Review and a past president of the Strategic Management Society.904). San Francisco: Jossey-Bass/Pfeifer. In 1992 they became a publicly traded company and developed a three year expansion strategy to target areas with favorable demographic profiles. is the leading manufacture of high end bicycles with more than 80 models in over 70 countries. . 6.. We care about each other. We produce a stream of innovative. the balance we share with all of our employees. H. remain competitive and entrepreneurial.html) Cannondale bicycles came into existence in 1971 in a loft above a pickle factory. H. By 1992 Starbucks was composed of 161 stores. Watkins. We limit our distribution to the best specialty retailers in the world. and knowledge management (italics mine). franchising was avoided.We devise flexible manufacturing processes that enable us to deliver those innovative. quality products to the market quickly and then back them with excellent customer service. http://www. From that vision ten principles were formed: 1. (2003) Strategic planning for success: Aligning people.8 million for the purchase.088 company operated stores in the U. 7. unpredictable external events. Oakley-Browne. As a result. 10. We put 90 percent of our profits back into the company to underwrite future growth. To date Starbucks has 5.cannondale. We concentrate on detail. and payoffs. 2006 and eventually bought the organization in 1987. 5. New York: The Free Press. (1994). 4. Mintzberg has written several books on strategic planning. This proved to be disastrous and on Jan. it largest creditor. Cannondale founder Joe Montgomery’s vision was to make it the best cycling company in the world.S and 1. because the last 5 percent is often the difference between success and failure..17) In 1998 Cannondale went outside their mission and philosophy and ventured into off road motorcycling. & Leigh. our shareholders. It reached a settlement agreement with Pagasus Partners. change management.

The fall and rise of strategic planning. Nov. (1999) Research in human performance technology.al. This core idea was developed into what we now call SWOT analysis which is one of the primary tools used for strategic management. (2003). process. MD: International Society for Performance Improvement. Handbook of human performance technology (pp. 895-915). A. Peter Drucker: Trusting the man in the grey flannel suit. which is an essential component of strategic planning. J. (1999). Retrieved February 28.org/wiki/Strategic_management . (1994). J. R.astd. 2006 from http://www. 6.com/business/displayStory. Michael – Considered the most influencial strategist of the decade.com/bikes/index. et..astd. Retrieved from http://www. Thompson. Strickland III. In Strategic management. Selznick. (2005).. 2006 American Society for Training and Development (ASTD) http://www. Company web page.. Fundamentals of performance technology: a guide to improving people.1-29). 17. The Economist. W. San Francisco: Pfeifer. J. (2006). JanuaryFebrurary. 2005).org/product_search. Van Tiem. (Wikepedia) Porter. Retrieved February 28. Silver Spring.cannondale. Moseley. In Solovitch & Keeps (Eds. ASTD has a comprehensive book listing for strategic planning http://store. Wikepedia: Historical development of strategic management.org/astd/resources/performance_improvement_community People Drucker. 2006 from http://en. November 17. Strategy: a view from the top. – Perhaps the most influential management thinker of the past century and author of 40 books. “He spawned two huge revolutions at General Electric—first when GE followed the radical decentralisation he preached in the 1950s..com/ Stone. D. Strategic management: concepts and cases. C.). Dessinger. Upper Saddle River. (2006).Non-Instructional Intervention Strategic Planning and Management Allan Wolf March 12. Philip – Selznick introduced the idea of matching the organization's internal factors with external environmental circumstances.wikipedia. (2004). J.cfm?story_id=5165460 Starbucks. A. Gamble. http://www. Leadership and strategy MOL 545 (pp.. (Wikepedia) References Cannondale. Mintzberg. NJ: Prentice Hall Foshay. H. One of his concepts was the 5 force analysis. Company web page.org/astd. 2006 from http://www. Peter F. Harvard Business Review.asp as well as a performance improvement page with links for various topics. 107-114. Pearce II.astd.economist.starbucks. New York: McGraw-Hill. Retrieved March. and performance. New York: McGraw-Hill. and again in the 1980s when Jack Welch rebuilt the company around Mr Drucker's belief that it should be first or second in a line of business... (2000) Cannondale corporation. or else get out” (The Economist.html De Kluyver.