Chapter 5

Leadership and Strategic

Planning

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 Leadership

• The ability to positively influence

people and systems to have a
meaningful impact and achieve results

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 Strategic Planning

• The process of envisioning an

organization’s future and developing
the necessary procedures and
operations 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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 Core Leadership Skills

• Vision
• Empowerment
• Intuition
• Self-understanding
• Value congruence

Dale Crownover, President, Texas Nameplate Co.

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 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

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 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

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

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 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

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 Common Organizational Structure
Customers

Customer Customer Customer

team team team

Systems and support services

Executive steering committee

CEO
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 Leadership and Public
Responsibilities
• Ethics
• Health, safety, and environment
• Community support

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 Strategic Planning
“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
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 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
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 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
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 Strategic Planning Process
Reason for existence Future intent Attitudes and policies

Mission Vision Guiding Principles

Environmental assessment Capabilities and risks

Strategies Broad statements of direction

Strategic Objectives Things to change or

improve
Action Plans
Implementation
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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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 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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 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!

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

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 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

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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

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