Strategic Planning and Tactical Execution Training Module No.

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Strategic planning is a business process that many companies employ to identify their critical success targets that set the course for future growth and profits. Lewis Carroll in Alice in Wonderland makes a good case for it: Would you tell me, please, which way I ought to go from here? said Alice. That depends a good deal on where you want to get to, said the Cat. I dont much care where, said Alice. Then it doesnt matter which way you go, said the Cat. Bill Gaw

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Copyright 2011 Business Basics, LLC All rights reserved. No part of this module may be reproduced for any purpose other than the in-house training of employees of companies that have purchased this module.

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STRATEGIC PLANNING
The Management Process Customer Connectivity Overcoming Objections Balanced Scorecard

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SITUATION ANALYSIS
Identifying and Evaluating Internal Factors

Strengths

Customer Service Product Innovation Turnkey capability Solid Distribution

Weaknesses
A weak Dollar Long Delivery Cycle Time Poor on-time delivery performance ? Where are we today?
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SITUATION ANALYSIS
Identifying and Evaluating External Factors

Opportunities

Threats

Poor Distribution Marginal field service support Low MTBF and MTBA ? Metric products Aggressive new product development Good on-time delivery performance Wide range of products ? Where are we today?

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SITUATION ANALYSIS
Developing the Mission Statement

THE COMPANY

MISSION STATEMENT

THE CUSTOMER

THE MARKETPLACE
What business are we in? How do we describe our customer?

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OBJECTIVES AND STRATEGIES

Objectives

Categories
Financial Marketing/Sales Product development and service Operations Employees and Social (Community)

Criteria

Single theme for each Results oriented and quantified Ownership identified All objectives in concert with each other Challenging and achievable Where do we wish to arrive, and when?

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OBJECTIVES AND STRATEGIES

Defensive Strategies

Solve internal weaknesses which make the organization vulnerable to external threats

EXTENAL THREATS

DEFENSIVE STRATEGIES

INTERNAL WEAKNESSES

How do we get there from here?

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OBJECTIVES AND STRATEGIES

Competitive Strategies

Utilize internal strengths to take advantage of external opportunities

INTERNAL STRENGTHS STRATEGIES TO BUILD ON STRENGTHS EXTERNAL OPPORTUNITIES

How do we get there from here?

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CRITICAL SUCCESS TARGETS

Core Technology Development and Protection Concurrent Engineering

Separation of R&D from Design Engineering Objective is to eradicate competitors product Patent/copyright protection Design for manufacture = GPM target Customer start-up is Plug and play User friendly - zero hassle factor Best-in class MTBF and MTBA

Technological Leadership

Product Development Roadmaps

Product evolution vs. revolution Timing - Timing - Timing
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CRITICAL SUCCESS TARGETS

Technological Leadership

Termination Product Roadmap

FY97
200 1 Terminator CP 4233 - 5301

FY98
200 9 200 9 HDHS Terminator HD Terminator CP 5301 -- 7370 CP 5301 7370 -

FY99

MLCC

209 0 Termination Aut o-S ystem New FY01 ->Technology Sys tem

200 7 HD Terminator CP 5301 - 7370

Chip Inductor
200 2 Chip Arra y Beta Dippe r 20x x Chip Arra y Prodn Terminator -

Chip Array Market

Existing Planned

Schedule
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CRITICAL SUCCESS TARGETS

Value Delivery System

Quality

Service Price

The ISO-9000 System The Baldrige System The home grown system Customer perception is reality

Request-for-quote responsiveness Technical assistance Service call responsiveness Cost-of-ownership Service contracts Consignment spare parts

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CRITICAL SUCCESS TARGETS

Manufacturing Effectiveness

Productivity

Speed

Management by walking around Kaizen self-directed work teams Best-in-class housekeeping An assault on cycle times Continuous improvement - elimination of waste Achieve a zero hassle factor One-up, one-down line inspection Customer as received quality reports No status quo mind-set
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Quality

IMPLEMENTATION
Success Criteria
CORPORATE PLAN

Must Dos
STRATEGIC PLAN

ACTION PLAN-A1

ACTION PLAN-A2

ACTION PLAN-A3

ANNUAL BUSINESS PLAN

PLANS & BUDGETS

PLANS & BUDGETS

PLANS & BUDGETS

Demo executive commitment Encourage participation Select the right team members Easy access to information Focus on critical success targets Set well-qualified objectives Consider available resources Communicate plan Include balanced scorecards as your integrated performance measurement system
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IMPLEMENTATION
Obtaining Required Commitment

Pre-planning steps

While-planning steps

Demonstrate managerial commitment Selecting the right planning team and information Soliciting input from employees Encouraging participation Focusing on Critical Success Targets Setting well-balanced, qualified objectives Considering available resources Developing a balanced scorecard

Post-planning steps

Communicating and deploying the plan Linking strategic to tactical planning Fine tuning the planning process

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IMPLEMENTATION
The Action Plan

State the objective of the plan. Is it relevant? Identify the individual who has overall ownership for the success of the plan. Identify the individuals who have responsibility for the success of each action step in the plan. Indicate the due date of completion of each step. List results oriented steps. . . Using action verbs to describe each. Identify the resources (human, capital and facilities) required to perform the action steps.
ACTION STEPS RESPONSIBLE INDIVIDUAL DUE DATE DATE COMPLETE COMMENTS

TIME PERIOD

RESOURCE REQUIREMENTS PEOPLE FINANCIAL EQUIPMENT

COMMENTS

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The Balanced Scorecard

Performance Measurement
Participative goal setting Benchmarking Balanced scorecard Basis for continuous improvement

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WHY PERFORMANCE MEASUREMENT

Management By Facts
Without data, you're just another opinion.
SELECT PROBLEM
PARETO DIAGRAM SCRAP HISTORGRAM REWORK

ANALIZE PROBLEM
DATA COLLECTION

ID ROOT CAUSE

C & E DIAGRAM CONTROL CHARTS GRAPH

CHECK SHEET

SCATTER DIAGRAM

PLAN & X ACTIONS

CONFIRM RESULTS

BEFORE

AFTER

FINE TUNE 3-3

ACTION 1 TIME

ACTION 2

WHY PERFORMANCE MEASUREMENT

Establish Foundation for Continuous Improvement
Identify and size critical customer complaints Research and track world class performance Establish world class benchmarks Create relevant performance measurements Establish performance tracking and reporting Equate customer perception to reality

Equate Customer Perception to Reality

Always use historical data when meeting with customers

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WHY PERFORMANCE MEASUREMENT

A Basis for Achievement Recognition and Reward
Annual Personal Performance Recognition Quarterly Team Achievement Award Monthly Individual Achievement Award Weekly Individual Achievement Award Best-to-Date Celebration

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PERORMANCE MANAGEMENT
The Where and What of the Balanced Scorecard
Timely Product Development Yes Timely Materials Availability Yes On-Time Prodn and Shipments Yes Inventory Effectiveness Yes

No

Engineering Documentation Review

No

Forecast and Master Schedule Review

No

Linearity and Resource Review

No

Receiving and Stock/Issue Review

Total Customer Satisfaction

Yes

Excellent Internal Quality

Yes

Valid Material Costs

Yes

Timely Direct Labor Availability

No

Feedback and Corrective Action Review

No

Cost of Quality Review

No

Cost Accounting Review

No

Resource and Capacity Review

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PERFORMANCE MANAGEMENT
The Balanced Scorecard
Sales/Service 1. Build Release Timing 2. S.O. Accuracy 3. SER Response 4. Customer Samples 5. On-site Startup Operations 1. Production Linearity 2. On-time Delivery 3. Product Quality 4. Supplier Performance 5. ECN Execution
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Engineering 1. ECN Accuracy 2. Engrg Quality 3. SER Execution 4. Warranty Expense 5. Equip. Reliability Finance 1. Accounts Receivable 2. Accounts Payable 3. CODs and Checks 4 Information Integrity 5. Inventory Utilization

Cascading measurements with aggregate performance roll-up

THE BALANCED SCORECARD

The Ten Period Rolling Method
STOCKROOM - NEGATIVE BALANCES
ITEMS
100 90 80 70 60 50 40 30 20 10 0 GOAL FY96 FY97 QTR1 QTR2 QTR3 MAR 4/3 4/10 4/17 4.24 7
16

72

Annual Personal Performance Recognition

46 41 35 31

Quarterly Team Achievement Rewards

35 30 26

Weekly Performance Incentives

18

22

GOAL WEEKLY AVERAGE BEST-TO-DATE Best-to-date Celebrations SR02: Number of inventory, on-hand balances reported as negative.

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THE BALANCED SCORECARD

Six Critical Must Dos
1. KISS! Simplicity is important - complete understanding is necessary - start slow and let it grow 2. Negotiations are required and agreements are crucial 3. The number isnt important, direction is the best focus 4. Tenacity is everything - good measurements should never die and never fade away 5. Timing is paramount - for example: financial data is too aggregate and way too late 6. Target selections - cascading structure is good, but performance analysis is best

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MAINTAINING SYSTEM CREDIBILITY

Establishing a Measurement Mindset

THERE IS NO STATUS QUO! YOURE EITHER WINNING OR YOURE LOSING

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There is no effective control without measurements!

MAINTAINING SYSTEM CREDIBILITY

Databases, Ownership and Maintenance
1. Simple Department Processes- Sales Order Input - User: process owner
- Database: chalk board, tick chart and hand plot graphs - Maintenance: process customer

2. Complicated Department Processes - On-time Delivery - Users: process owner or team

- Database: Excel spreadsheet and computer graphs - Maintenance: assigned team member

3. Intradepartmental Processes - Cost of Quality

- User: functional manager or self-directed process team - Databases: computerized business systems down loaded to Access for additional input forms and graphs - Maintenance: MIS and/or team data specialist

Remember, Without data, you're just another opinion.

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MAINTAINING SYSTEM CREDIBILITY

Some Requisites for Success
Management acceptance and support A few good champions Trust and understanding Valid, timely and consistent measurements Need to review and adjust range of metrics Demonstrated benefits from use of system A want to succeed business culture A true sense of accomplishment

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BENCHMARKING
Internal - A Good Starting Place
Define critical company success factors Identify relevant work processes and prioritize by importance Identify process owners and internal customers Agree on current performance levels and establish data measurements Negotiate improvement goals - celebrate the goal achievements and reset the marks

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BENCHMARKING
External - Some of the Options
Customers Non-Competitive Businesses Competitors American Electronics Association American Production & Inventory Society Society of Manufacturing Engineers Purchasing Management Association American Management Association Institute of Quality and Productivity -SDSU

Your Best Option: Industry Week

- Benchmarking Tool Kit - www.industryweek.com

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BENCHMARKING
Internal - The Line on the Wall Story

100

Engines on the Floor

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BENCHMARKING
Internal - The Line on the Wall Story

100

Engines on the Floor

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CUSTOMER CONNECTIVITY
Customer Satisfaction Superior Customer Treatment A Focus On Speed A Focus On Quality

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CUSTOMER SATISFACTION
About Customers
1. When asked, Would you re-buy from Supplier A? Supplier B?
SUPPLIER A All products delivered on time and did not require any on-site repairs. SUPPLIER B All products delivered on time but 15% required on-site repair. Service was immediate and satisfying. 92%

83%

2. Ninety-six percent of unhappy customers never complain about rude treatment. 3. Ninety percent of customers dissatisfied with service they receive will not return or buy from that business, again. 4. Each unhappy customer will tell their story to at least nine other people. Thirteen percent will tell their story to more than twenty people.
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WHY WE LOSE CUSTOMERS

Reasons Why Customers leave!
4% 6% 10%

4%

76%
RELOCATION COMPETITION POOR TREATMENT FRIENDSHIP POOR PRODUCT/SERVICE

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WHY WE LOSE CUSTOMERS

Poor Treatment
15% 15%

5%

20%

45%
Common Courtesy Untimely Decisions
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Not Being Informed Won't Admit Mistakes

Superiority Complex

WHY WE LOSE CUSTOMERS

Competition
Quality
* The ISO-9000 System * The Baldrige Award * Customer perception vs. reality

Service
* * * * Request-for-quote Technical assistance Installation and Service Spare parts availability

Price
* Cost-of-ownership * Service contracts * Consignment spare parts
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SUPERIOR CUSTOMER TREATMENT

Creating a Caring Culture
Phone Effectiveness Receptionist mannerisms One-on-one communication matrix Special project teleconferencing Use of fax and e-mail Visiting Policy and Plan Good will: problems and market data review Follow-up: Beta Testing/Sp. Projects/Processes Service: installation/training/repair Reciprocal: Education and enlightenment Documentation Responsibilities Telecomm reports Minutes to meetings Follow-up action/status reports
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SUPERIOR CUSTOMER TREATMENT

Staying Close to the Customer
Pick Up the Telephone
Congratulatory Follow-up to shipments A simple How our you doing?

Proactive Problem Solving

Preventative maintenance Process improvements Problem follow-up process

Extra Effort Communications

Questionnaires Newsletters Technical Bulletins

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SUPERIOR CUSTOMER TREATMENT

Professional Communications
Newsletters - PR
Organization changes Facility Improvements Whats new

Technical Bulletins- R&D

Product Releases Maintenance Recommendations Technology Advances

Customer Satisfaction Questionnaires - Sales

Process ownership - KISS Tenacious follow-up Effective corrective action

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A FOCUS ON SPEED
New Product Development Cycle Time
Concurrent Engineering Concept
* House of quality - MFD * Designing in the computer * The customers role

The Design Process

* * * * Conceptual phase Design phase Beta phase Pre-production and launch phases

Documentation
* Detail drawings * Schematic and assembly drawings * Work Instructions and acceptance specs.
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A FOCUS ON SPEED
Order Quotation Cycle Time
Customer to Sales Hand-off
1. Configuration check-off list. 2. Delivery requirements 3. Tooling commitments 1 wk. 1/2 wk. 3 wk. 1 wk. 2 wk. 0 wk. ACTUAL TARGET

Sales to Engrg. Hand-off

1. Engineering requirements 2. Manufacturing requirements 3. Quotation routing and control

Engrg. to Mfg. Hand-off

1. Time estimates
2. Engrg tasks and schedule 3. Long lead time materials 5 wk.
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Mfg. to Sales Hand-off

1. Delivery Commitment
2. Added costs 3. Engrg inputs

1 1/2 wk.

A FOCUS ON SPEED
Order Fulfillment Cycle Time
Focused Forecasting
SALES FORECAST
Field Sales Data - Credibility Reviews
The Annual Forecast - SWAG Field Sales Management Review The Quarterly Forecast SBs and WTs Inside Sales Review Funnel Report Production Planning Team Review Build Plan

DOLLARS
100%

COST EXPENDITURE CURVE

* The Sales funnel report * The forecast BOM * Time fence management

75%

50%

25%

12

10 Weeks Remaining to Ship Date

FORECASTED

CUST. ID

90% CONF

EXE HOLD

ORDER

Production Linearity
* * * * Master schedule integrity Record accuracy Shortage control system Day-to-day plan/follow-up

DROP FENCE MANAGEMENT MASTER SCHEDULE

MRP MATERIAL REQUIREMENTS PLANNING

MASTER SCHEDULE BILLS OF MATERIAL LEADTIMES LOT SIZES WORK-INPROCESS

Cancel

Reorder

PURCHASE ORDERS

Reschedule

INVENTORY

Customer Acceptance
* In-house turnkey * Customer site turnkey

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A FOCUS ON QUALITY
ISO-9000
Statistical Techniques (Use of) Personnel Training Internal Auditing Quality Records Control of Production Purchasing Mgmt. responsibility

9001 = 9002 = 9003 =

Q-Sys Principles

Material Control

Design Control Quality Documentation

After Sales Service Control of Verification

Quality in Marketing

Process Control

Corrective Action
Handling & Storage Nonconformity Control of Insp. Equip. Product Verification

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A FOCUS ON QUALITY
The Baldrige Award
Seven Quality Categories 1. Leadership 2. Information and analysis 3. Strategic Planning 4. Human resource utilization 5. QA of products and services 6. Results from QA 7. Customer Satisfaction Eight Essential of Winning 1. Strategic plan w/benchmark 2. Top to bottom Q commitment 3. Customer Connectivity 4. Partnership with suppliers 5. After sales customer support 6. Continuous Improvement 7. A problem prevention focus 8. Performance Measurement

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A FOCUS ON QUALITY
Home Grown Quality Systems
One-up-One-down Inspection

SUPPLIERS
Raw Material Received

QA Random Inspection Process Control - SPC Performance Measurement

R
Molding

Rough Machining

MATERIAL REVIEW BOARD

R
Purchased Finished Receiving

R
Subcontracted Operations

R
Assembly Heat Treat

R
Functional Test Precision Machining Repair

R
Cleaning Cleaning Retest

R
Prime Painting

R
Final Inspection

Packaging

Shipping

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Responsiveness to Customer Needs

Why We Lose Customers Reasons why customers leave Poor treatment Competition Superior Customer Treatment Creating a caring culture Staying close to customers Professional communications A Focus on Speed New product development cycle time Order quotation cycle time Order fulfillment cycle time A Focus on Quality ISO-9000, A Quality System Standard The Baldrige Award, A Business System Standard Home Grown Quality Systems

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RESOURCE PLANNING
Objectives
Increased customer responsiveness Work force stability, flexibility & retention Improve make/buy decisions Cost effective materials management Sales Forecast Management People Value and Skills Training Capacity Planning Workload Outsourcing

Targets

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SALES FORECAST MANAGEMENT

Data and Information Integrity
Field funnel reports
CUSTOMERS
PRODUCT MODEL NUMBERS TIMING OR NEED DATE CONF PERCENT

COMPETITION

Historical demand trends

PRODUCT MODEL NUMBERS HISTORICAL DEMAND

1996

Q1-97

Q2-97

Q3-97

Q4-97

Q1-98

Q2-98

TREND

Traveling CEO and VP Sales inputs

7- 3

SALES FORECAST MANAGEMENT

Time Fence Control
DOLLARS
100%

COST EXPENDITURE CURVE

75%

50%

25%

12

10 Weeks Remaining to Ship Date

FORECASTED

CUST. ID

90% CONF

EXE HOLD

ORDER

DROP FENCE MANAGEMENT MASTER SCHEDULE

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SALES FORECAST MANAGEMENT

Forecasting Bills of Materials - (Planning BOMs)
GARDEN TRACTOR

BASE UNIT

MOTOR

TRANSMISSION

COMMON PARTS - 100%

30HP 60%

AUTOMATIC 30%

60HP 40%

MANUAL 40%

SEMI-AUTO 40% 7- 5

PEOPLE VALUE AND SKILLS

Value vs. Pay Stratification Curve
70 60 50 40 30 20 10 0 0
7- 6

10

PEOPLE VALUE AND SKILLS

Technical and Professional Skills Inventory
ASSEMBLERS - MFT TEAM
ELECTRICAL SKILLS REQUIREMENTS NAME PRINT READING 4/96 5/96 6/97 SOLDERING 6/96 8/96 10/97 CABLE & HARNESS 6/96 10/96 2/98 MODULE ASSEMBLY 8/96 4/97 4/98 FINAL ASSEMBLY 8/96

BILL G DON V ANN R

JOE R
PAT B

4/97
4/96

6/96
6/96

6/96
6/96

8/96
896

4/96
4/96

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PEOPLE VALUE AND SKILLS

HOUSEKEEPING 5

IN PURSUIT OF THE SKILLS DIAMOND

_ 4 _ 3 _ 2

5 MECHANICAL 4 3 2 1 1

5 4

ELECTRICAL

_ 1

3 2

1 2

1 2 3 4 5

3
4 5 QUALITY CONTROL

ASSEMBLERS TEAM MFT

PROBLEM SOLVING

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PEOPLE VALUE AND SKILLS

Protecting Our Most Valuable Resource
Technical educational opportunities Self-directed work teams Professional development program People empowerment Educational assistance benefits Home-grown training programs Off-site business seminars Education/training logs and reward system

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RESOURCE PLANNING
Tradition Closed Loop System - Long Range
MASTER PRODUCTION SCHEDULE

BOM LEADTIMES LOT SIZES

MRP CAPACITY REQUIREMEENTS PLANNING NO IS CAPACITY O.K. ?

BOO LOAD FACTOR FACILITIES

YES

SHOP ORDER LAUNCH SYSTEM

SHOP FLOOR I/O AND PRIORITY CONTROL

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CAPACITY PLANNING
Typical Unit Concept - Short Range
ROUGH CUT CAPACITY FOR 1st QUARTER TU TARGET HOURS as of 6/16 445 79 10 275 187 128 117 317 159 TOTAL HOURS 1778.88 157.58 39 825.72 559.56 1024.96 0 3169.9 0 PERFORM PEOPLE FACTOR REQUIRED 80% 90% 90% 90% 80% 80% 80% 75% 66% TOTAL ATM 2001 ATM 2020 ARRAY 2002 DIPPER 2007/9 PRESSES OVEN 348 165 252 176 144 31 49 2 0 0 4 3 0 329.4 0 0 577.56 94.08 0 66% 66% 50% 66% 66% 80% TOTAL LASER 5002 179 0 0 50% TOTAL 0.00 0.00 21.65 0.97 0.00 0.00 1.71 0.28 0.00 2.96 4.34 0.34 0.08 1.79 1.37 2.50 0.00 8.25 0.00 18.68

SYSTEM IR 3001 5200 ELECT 5300 ELECT IR 3002 4020 R/T 18 R/T 16A MFT 3300 IND 3700

QTY 4 2 4 3 3 8 0 10 0

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TOTAL PEOPLE REQUIRED

CAPACITY PLANNING
Load Factor and the Performance Factor Demonstrated

Theoretical

Demoretical

7- 12

WORKLOAD OUTSOURCING
Outsourcing Drivers
BUILD LINEARITY
80

GPM
60 55

60

50 45 40 Prod. A Prod. B Prod. C

40 20

35
0 M1 M2 M3 M4 M5 M6 M7 M8

30 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

QUALITY
100 90 80 70 60 50 40 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Sub. X Sub. Y Sub. Z

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WORKLOAD OUTSOURCING
In-house Preparations
Identification of core competencies Special processes/training requirements Custom machines/cost advantages Technology with limited patent protection Cost review and target pricing Standard vs. actual cost Overhead allocations and reallocation Pricing target range (5-20% reduction) Point-of-use logistics requirements Scheduling methodology (MRP vs. JIT) Material handling/storage containers Documentation review and upgrading Tribal knowledge vs. work instructions Schematic and assembly drawings Testing specifications/fixtures
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WORKLOAD OUTSOURCING
Supplier Selection Process
Selection Team
BUYER/ PLANNER CORE TEAM MANUFACTURING ENGINEER

Supplier Capability Matrix Supplier On-site Audit/Review

Leadership Financial Technical and Quality Manufacturing

QUALITY ENGINEER

PRODUCT TEAM LEADER

Evaluation and selection process

7- 15

STAYING AHEAD OF MARKET TRENDS

Sales Forecast Management Data and information integrity Time fence controls Forecasting Bills of Materials (Planning BOMs) People Value and Skills Value vs. pay stratification curve Technical and professional skills inventory Protecting our most valuable resource Capacity Planning Forecasting direct labor Traditional closed loop system - long range Typical unit concept - short range Workload Outsourcing Executive vision Program preparations Supplier selection

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Take a break: Another Internet Story

Two priests died at the same time and met with St. Peter at the pearly gates of Heaven. Due to computer problems, St. Peter informed the priests that they would have to go back to earth and wait until the computer system was once again operative and on-line. St. Peter informed them that the only condition was that they could not go back to earth as humans but they could go back as any other specie they selected. The first priest said he always was impressed with the soaring of an eagle and chose to go back as an eagle. The second priest asked for clarification, "No matter what I chose, it doesn't count?" "True," was St Peter's response. "In that case I choose to go back as a stud." So it was done. A week later the computer system was up and running. God called down to St. Peter and asked, "Don't forget the two priests, will you have any problem locating them?" St. Peter replied, "I think not. The first priest is flying around just below our pearly gates and the second priest is on a snow tire somewhere in North Dakota."

OVERCOMING OBJECTIONS*

1. The costs will outweigh the benefits. What will we find that we didnt already know?

* Adapted from an article by Paul Arveson

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OVERCOMING OBJECTIONS

2. But some tasks will be labor intensive: Identifying strategic objectives, tactical plans, metrics definition, and progress reporting.

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OVERCOMING OBJECTIONS

3. We have only limited control over results. Why should we be held accountable for things we cant control?

3-4

OVERCOMING OBJECTIONS

4. The results will be used against us.

3-5

OVERCOMING OBJECTIONS

5. Management will misuse or misinterpret the results. The process will be gamed.

3-6

OVERCOMING OBJECTIONS

6. They will score our progress by inappropriate or unfair standards.

3-7

OVERCOMING OBJECTIONS

7. Too much complexity: There are numerous systems and assessment criteria; how will we combine them all? (ISO9001, ISO14000, Baldrige, TQM, Kaizen).

3-8

OVERCOMING OBJECTIONS

8. Its too big, too ambitious and too expensive to deploy a strategic plan in this entire organization. We cant afford such large-scale efforts.

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THE MANAGEMENT PROCESS

Situation Analysis

Identifying and evaluating internal factors Identifying and evaluating external factors Developing the mission statement Strategic objectives Defensive strategies Competitive strategies Technology Leadership Value Delivery System Operational Effectiveness Success Criteria Resource Management The Action Plan
1-16

Objectives and Strategies

Critical Success Targets

Implementation

Balanced Scorecard

The Dale Carnegie Speech Trophy Story

I was a Dale Carnegie student back in the 60's. I was attending their effective leadership course and trying to learn how to give an effective speech. At each class meeting we had an extemporaneous speech competion. Each speaker would pick a topic out of a hat, step up to the podium and then give a five-minute talk on the subject. On this one occasion, I drew sex as my subject and although it at first seemed difficult, I came up with a good speech and won the best speech trophy. When I got home, my wife and some of her lady friends were playing bridge. "How did it go tonight," my wife asked. "Great," I said, "I won the best speech award." One of her lady friends asked what my speech was about. With all the ladies in the room, I was embarrassed to say sex so I answered, "Sailing." The next day a friend calls my house and my wife answered the phone. He asked her what she thought of her husband winning the best speech trophy last night. She responded, I dont know how he ever won, hes only done it three timesthe first time he was so confused that he forgot what to dothe second time he was so nervous he got sickthe last time he was so excited, he fell off."

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