NAWBO-LA PEAK LEADERSHIP ACADEMY
Session 3:
Strategic Organizational
Development Planning –
Finalizing Your Business
Foundation and Developing
Objectives and Goals
Management Systems Consulting Corporation
10990 Wilshire Blvd. Suite 1420, Los Angeles, CA 90024
(310) 477-0444 • www.mgtsystems.com
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Strategic Organizational Development
Planning
PURPOSE:
Continue developing your company’s strategic plan.
OBJECTIVES:
1. Address any questions you have about the
“Environmental Scan” and “Organizational Assessment”
data you have collected and analyzed to date.
2. Review/refine your company’s Business Concept and
Strategic Mission.
3. Develop draft Objectives and Goals to support the
achievement of your company’s plan.
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
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Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Review: Strategic Planning
Framework
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
3
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Strategic Planning Process
1
2
ENVIRONMENTAL SCAN
ORGANIZATIONAL ASSESSMENT





 Market Analysis
 Competitive
Analysis
 Trend Analysis
3
STRATEGIC ISSUE RESOLUTION


4
Business Foundation Issues
Strategic Organizational Development Issues
STRATEGIC BUSINESS PLAN







6
Culture
Management Systems
Operational Systems
Resources
Markets and Products
Situation Analysis
Business Definition
Strategic Mission
Strategy
Key Result Areas
Objectives and Goals
Action Plans
5
BUDGETING
QUARTERLY MANAGEMENT REVIEW


Reports
Meetings
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
4
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
What You’ve Completed to Date
Box 1
• “Collected” and analyzed information about your
environment – using the “Planning Survey” that we
gave you (in the binder) at Session 1.
Box 2
• “Collected” and analyzed information about your
organization’s capabilities – using the “Planning Survey”
that we gave you (in the binder) at Session 1.
• Received and analyzed Growing Pains and
Organizational Effectiveness Survey Results.
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
5
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
What You’ve Completed to Date
Boxes 3 and 4
• Prepared a draft of your company’s Business Concept
and Strategic Mission – at our last session and/or as a
follow-up to our last session.
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
6
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Quick Review: Growing Pains
and Organizational
Effectiveness Survey
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
7
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
What Are Growing Pains?
• Problems which occur as a result of inadequate
organizational development in relation to business size
and complexity.
• A common set of symptoms that something has gone
wrong in the process of organizational development.
• A signal of the need to make the transitions from one
stage of organizational development to the next.
• A set of leading indicators of future financial
performance.
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
8
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Growing Pains Scoring Interpretation
Score Range
Color
Interpretation
10-14
Green
Everything is “OK”
15-19
Yellow
Some things to watch
20-29
Orange
Some areas need attention
30-39
Red
Some very significant problems
40-50
Purple
A potential turnaround situation
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
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Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Organizational Effectiveness Survey© (OES)
●
The Management Systems Organizational Effectiveness
Survey© is a validated instrument.
●
The survey consists of 65 items that measure the extent
to which an organization has developed the systems and
structures needed to support its growth and/or stage of
development.
●
For an organization to have the highest probability of
success over the long-term, it needs to effectively
manage all six levels in the Pyramid of Organizational
Development plus Financial Results, individually and as a
system.
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
10
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
OES Mean Score Interpretation
Score Range
Color
Interpretation
4.5-5.0
Green
To a Very Great Extent
4.0-4.4
Yellow
To a Great Extent
3.0-3.9
Orange
To Some Extent
2.0-2.9
Red
To a Slight Extent
1.0-1.9
Purple
To a Very Slight Extent
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
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Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Scoring Interpretation
• This report presents four different types of scores:
– Mean score is a standard statistical “average” score
on a 5-point (Likert) scale.
– % Favorable = (# respondents with scores of ‘4’ or
‘5’)/(Total # respondents)
– % Neutral = (# respondents with scores of
‘3’)/(Total # respondents)
– % Unfavorable = (# respondents with scores of ‘1’
or ‘2’)/(Total # respondents)
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
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NAWBO-LA PEAK LEADERSHIP ACADEMY
Questions About Your Survey
Results
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
13
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Most Significant Issues for My
Company
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
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Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Share With Your Team:
• The 3-5 most significant issues you feel your company
is facing at the current time
– Based on your review of the information you
collected/analyzed (including the Planning Survey, Growing
Pains Questionnaire, and Organizational Effectiveness
Survey results).
• Note any similarities among your team.
• Write your list of issues/challenges on a flip chart and
be prepared to share them when we reconvene.
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
15
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Review: Business Foundation
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
16
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Business Definition
A broad statement of what business the
firm is in that acts as a lens through
which to view future strategies.
Addresses the Questions:
– Who are our customers?
– What are their needs?
– How do they buy?
– What is value to them?
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
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Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Strategic Mission
A broad, measurable, time-dated
statement of what the organization wants
to or needs to become by the end of the
planning period.
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
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Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Share/Discuss: Business
Definitions/Concepts and
Strategic Missions
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
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Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
What is Strategy?
Conceptual Definition:
Strategy can be defined as the different, yet
integrated, courses of action that will be taken
by a firm or business unit to compete effectively
in its chosen markets in order to obtain desired
results.
Operational Definition:
 Where you Play “The Game”
 How you Play “The Game”
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
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Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Where You Play “The Game”:
Analysis of the Strategic Board
THE STRATEGIC BOARD
Product/Service Category or Distribution Channel
Horizontal
Market
Segment
I
TIERS OF THE MARKET
II
III
+
Quality
Service
Prestige
I
Price
II
Price
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
III
Quality
Service
Prestige
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Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Retail Industry by Tier
Quality
Service
Prestige
+
I
Saks,
Neiman
Marcus,
Barneys
Price
II
Nordstrom, Gap,
Robinsons-May, Limited
Price
III
K-Mart,Wal-Mart, JC Penney,
Discount Stores
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
Quality
Service
Prestige
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NAWBO-LA PEAK LEADERSHIP ACADEMY
Automobile Industry by Tier
Quality
Service
Prestige
+
I
Price
Rolls Royce,
Ferrari, Mercedes
Benz
II
Honda Accord, Toyota Camry,
Ford Taurus, Nissan Maxima
Price
III
Geo Metro, Hyundai, Ford Escort,
Toyota Corolla,
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
Quality
Service
Prestige
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Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
The Strategic Board for the
Automobile Industry
Vertical Segments
Horizontal
Segments
Sedans
Sports
Cars
SUVs
• Lexus
• Rolls
• BMW
• Porsche
• Ferrari
• Lexus
• Range Rover
• Hummer
• Escalade
II
• Honda
Accord
• Toyota
Camry
• Toyota Celica
• Pontiac
Solstice
• Ford Explorer
• Toyota Landcruiser
• GMC Blazer
• Jeep Cherokee
III
• Toyota
Corolla
• Nissan
Versa
I
Light Trucks
• Toyota Tacoma
• Ford Ranger
Minivans
• Toyota Sienna
• Ford Windstar
• Toyota RAV4
• Suzuki Samurai
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
24
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
How You Play “The Game”:
Three Levels Of Strategy:
Operational Strategies
Supporting Strategies
Markets
Core
Strategy
Operational
Systems
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
25
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Sample Core Strategies
•
Starbucks
o Redefine the nature of the coffee café and “blanket” the
U.S.
o Use our dominance in retail to become the Coca-Cola of
coffee.
•
Southwest Airlines
No frills, short-haul, high frequency discount airfare in
relatively non-competitive markets.
•
TechLink
Solutions guaranteed to go live.
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
26
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Strategic Planning – Strategic Business Plan
1
2
ENVIRONMENTAL SCAN
ORGANIZATIONAL ASSESSMENT





 Market Analysis
 Competitive
Analysis
 Trend Analysis
3
STRATEGIC ISSUE RESOLUTION


4
Business Foundation Issues
Strategic Organizational Development Issues
STRATEGIC BUSINESS PLAN







6
Culture
Management Systems
Operational Systems
Resources
Markets and Products
Situation Analysis
Business Definition
Strategic Mission
Strategy
Key Result Areas
Objectives and Goals
Action Plans
5
BUDGETING
QUARTERLY MANAGEMENT REVIEW


Reports
Meetings
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
27
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Elements of the Strategic Plan
Business Foundation
• Business Definition
• Strategic Mission
• Core Strategy
Key Result Areas
Objectives
Goals
Action Plans
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
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Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Strategic Planning
Terminology
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
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Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Key Result Areas
Areas of the business where performance has a critical impact
on the achievement of the mission. Defined in one or two
words. A category, not an action.
We suggest using the 6 levels of the Pyramid of
Organizational Development + Financial Results:
- Markets
- Operational Systems
- Products
- Management Systems
- Resources
- Culture
- Financial Results
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
30
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Objectives
Overall definitions of what is to be achieved in each Key
Result Area, typically over several years. Describes a
broad outcome, not an action. Each KRA must have at
least one stated objective that is derived from the mission
statement. Most KRAs will have between three and six
objectives.
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
31
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Sample Objectives
●
Develop and implement a structured corporate-wide
and branch office strategy for purchasing from
suppliers
●
Acquire profitable new products in our current market
niches that will contribute to overall growth.
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
32
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Workshop: Developing
Objectives
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
33
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Working in Your Small Team:
• Focus on the most significant challenges/issues
identified earlier today by each team member.
• Select one of these issues and work as a team to
develop one or more Objectives that define the results
that team member would like to achieve with respect to
addressing that issue. You might use the “Strategies to
Promote Success” column in your Planning Workbook
(Environmental Scan and Organizational Assessment) as
input – that is, refer to the information you wrote in this
column for the issue(s) you are focusing upon.
• Write this Objective or Objectives on a flip chart.
• Continue this process – that is, developing Objectives –
until time is called.
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
34
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Goals
Realistic, time-dated and measurable sub-objectives, the
responsibility for which is assigned to a specific individual
(usually a manager or department head). Defines scope
and timing of an outcome. Each objective should have one
or more goals.
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
35
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
SMART Goals
S
Specific Outcome
M
Measurable/Quantifiable
A
Accountable/Achievable
R
Results-Oriented and Realistic
T
Time-Dated
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
36
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Sample Goals
● Develop and begin production of two new internally
generated product ideas that will result in total sales of
$4 million by 12/31/0X. [Peter]
● Earn revenues of $5 million by 12/31/0X. [Paul]
● Open new accounts with average sales of $30,000 each
by 12/31/0X. [Mary]
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
37
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Workshop: Developing
SMART Goals
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
38
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Working in Your Small Team:
• Select one of the Objectives your team developed –
which should be recorded on a flip chart.
• Thinking about the next 12 to 18 months, work as a
team to identify the results to be accomplished relative
to that Objective in the company (or companies) for
whom the Objective was developed. Don’t worry
about creating SMART Goals at this point.
Instead, just identify as concepts the things you
would like to accomplish in the next year or so.
• Once you’ve identified these results, work with your
team to create SMART Goals that reflect the results you
want to accomplish.
• Write your SMART Goals on a flip chart and be sure to
link them to the Objective that they support.
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
39
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Sample Plan Page
KEY RESULT AREA: 1.0 Markets and Products
Objective 1.1: Grow active buyer base at a rate consistent with overall sales
growth per year.
Goals
Goal
Prty
Prty
Who
Who
When
When
1. Increase our active
buyer base by 50% from
10/1/0X to 9/30/0X
through existing
strategies.
A
BH
10/1/0X
2. Increase active buyer
base by 40% from
10/1/0X to 9/30/0X
through new strategies.
B
LM
10/31/0X
3. Identify and evaluate
vehicles for growth
beyond FY ‘0X.
A
BH
9/30/0X
4. Identify new strategies
to support FY ‘0X growth.
C
LM
6/30/0X
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
Status
YTD:
+39%
40
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Strategic Planning Process
1
2
ENVIRONMENTAL SCAN
ORGANIZATIONAL ASSESSMENT





 Market Analysis
 Competitive
Analysis
 Trend Analysis
3
STRATEGIC ISSUE RESOLUTION


4
Business Foundation Issues
Strategic Organizational Development Issues
STRATEGIC BUSINESS PLAN







6
Culture
Management Systems
Operational Systems
Resources
Markets and Products
Situation Analysis
Business Definition
Strategic Mission
Strategy
Key Result Areas
Objectives and Goals
Action Plans
5
BUDGETING
QUARTERLY MANAGEMENT REVIEW


Reports
Meetings
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
41
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Session Follow-Up and Preparation for the
Next Session
• Work with other members of your team, as appropriate,
to continue finalizing your Strategic Plan – with a focus
on Objectives and Goals.
• Bring a copy of the job description for your role (if you
have one). If you don’t have one, don’t worry! We will
cover this next time.
• Read Chapter 11 and Chapter 12 in Growing Pains.
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
42
Session 3
NAWBO-LA PEAK LEADERSHIP ACADEMY
Please note that all of the materials in this
slide presentation are the proprietary
intellectual property of Management
Systems Consulting Corporation and may
not be reproduced or otherwise distributed
without written permission.
For further information about reproduction rights
for materials in this presentation, please contact:
Management Systems Consulting Corporation
10990 Wilshire Blvd., Suite 1420
Los Angeles, CA 90024
(310) 477-0444
www.mgtsystems.com
© Management Systems Consulting Corporation, 1989. Revised 2007. All rights reserved.
43