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Strategic Management: GM 105 Dr. Lindle Hatton
Strategic Management: GM 105 Dr. Lindle Hatton
GM 105
Dr. Lindle Hatton
CANOE THEORY
Think of your organization as a long canoe
The canoe has a destination
Everyone in the canoe has a seat and paddle
Everyone is expected to paddle
Those who won’t paddle have to get out of the canoe
Those who prevent others from paddling have to re-
adjust or get out of the canoe
There are no passengers in the canoe
The canoe theory understands crisis
The canoe theory says you have the right to be
happy
CANOE THEORY
BUILT TO LAST
Preserve the Core
Stimulate Progress
GOOD TO GREAT
Level 5 Leadership
First Who…Then What
Confront the Brutal Facts
The Hedgehog Concept
A Culture of Discipline
Technology Accelerators
The Flywheel and The Doom Loop
Private versus Public
Organizations
Purpose
Goals
Financing
Decision-Making
Key Stakeholders
Strategic Management
Versus
Strategic Planning
Features of Successful
Strategic Management
Has support of organization’s executive
officer.
Is user friendly.
Is participatory, not left to planners.
Is flexible.
Leads to resources decisions.
Engages and motivates all staff.
Is fresh and continuous, not static and stale.
Features (Continued)
Is Proactive
Not a Quick Fix
Part of Quality Management
Payoffs Increase over Time
Lessons Learned About
Strategic Planning
Plans must be tailored to organization.
No one size ‘fits’ all.
Time to complete takes longer – expect
50% more than planned.
Process needs a shepherd.
Visionaries needed at beginning and
detail types thereafter.
Why Managers Don’t Plan
Time Consuming
High Demands
Not Rewarded
Executives Don’t Support It
Too Risky
Strategic Management Model
Scanning
Where are we now?
Strategy Formulation
Where do we want to be?
Strategy Implementation
How do we get there?
Measurement/Performance
How do we measure our progress?
Strategic Management Model
Strategy Formulation
Where do we want to be?
Vision
Mission
Values
Goals
Objectives
VISION
Vision without Action is a Daydream
Action without Vision is a Nightmare
Not Optional
Stretch – 30+ Years
8-10 Words in length
Future State
Brief and Memorable
VISION (Continued)
Inspiring and Challenging
Descriptive of the Ideal
Vision Examples
“Light the Fire Within”
“A Safer Future for All Communities”
“See the Mountains – Breathe Freely”
To Be the Happiest Place on Earth
To Be the World’s Best Quick Service
Restaurant
Vision Levels of People
Some people never see it. (Wanderers)
Some people see it but never pursue it on
their own. (Followers)
Some people see it and pursue it. (Achievers)
Some people see it and pursue it and help
others see it. (Leaders)
Unarticulated
Articulated
Customer
Served Unserved Types
Internal Environment
Internal Profile Analysis
SWOT Analysis
Internal Profile Analysis
Identify Key Core Functions
Identify Key Measures for Core
Functions
Build Matrix
SWOT Analysis
Internal Environment
Strengths
Weaknesses
External Environment
Opportunities
Threats
SWOT EXERCISE
Strategic Management Model
Strategy Formulation
Where do we want to be?
Vision
Mission
Values
Goals
Objectives
GOAL
Supports the Mission
Deals with One Issue or Item of Focus
Reflects a primary activity or strategic
direction
Describes the “To Be” State
“BHAG”
Encompasses a long period, i.e. at least
3 years
Goal Examples
Achieve excellence in the delivery of disaster
recovery and mitigation programs.
Professionally develop our employees as a
reflection of DAD’s key attributes and values.
Increase the supply of housing, especially
affordable housing.
Become a model for customer service.
To provide benefits in correct amounts and
issued in a timely manner.
Goal Statements Litmus Test
Goal Exercise
OBJECTIVES
Add specificity beyond Goals
Answer the questions
What is to be accomplished?
When?
Should contain the SMART Elements
OBJECTIVES: SMART Model
Specific
Measurable
Aggressive but Attainable
Results-Oriented
Timeframe
Strategic Objective Examples
By June 30, 2005 achieve 75% rating on the
DAD service index from all stakeholders.
Increase sales growth 6-8% in the next 5
years. (P&G)
Cut corporate overhead costs by $30 million
per year. (Fortune Brands)
Operate 6,000 stores by 2010 – up from
3,000 in the year 2000. (Walgreen’s)
Reduce greenhouse gases by 10 percent
(from a 1990 bast) by 2010. (BP Amoco)
Objectives Litmus Test
Strategic Objective Exercise
Strategic Management Model
Strategy Implementation
Everyone is Responsible
Few Guidelines
No Easy 10-Step Checklist to Follow
Strategic Management Model
Strategy Implementation
Most open-ended part of Strategic Mgmt
People implement strategies not
Organizations
Strategic Management Model
Strategy Implementation
How do we get there?
Work Action Plans
GOOMs
Strategy Implementation
Considerations
7-S Framework – Strategic Fit
Human Resources
Patience
7-S Framework
Shared Values
Strategy
Structure
Systems
Skills
Style
Staff
Human Resource Rule
Hire Smart
Train Hard
Manage Easy
Parable of the Bamboo
It takes patience and discipline to develop and
empower people; in fact, it’s like growing
bamboo. Once the seed is planted, you must
water it daily for four years before the tree
breaks ground – then it grows 60 feet in 90
days! Executives who nurture people can get
similar results…How, you ask, can such rapid
growth be possible? It results from the miles of
roots that develop in those first four years.
Preparing people to perform is the task of
leadership.
Implementation Strategies
GOOMs
Implementation Conference
CEO involvement
Other Strategies?
GOOMs
Goals
Outcomes
Objectives
Measures
Definitions
Goal: Broad, General BHAG
Outcome: Desired end result and report
performance
Objective: What and When
Measure: A quantified unit that
assesses progress or achievement
GOOM Example
Goal 1: Achieve excellence in the delivery of
disaster recovery and mitigation.
Outcome: Increased Customer Satisfaction
Objective 1.1: By June 30, 2005, achieve
75% rating on the DAD Service Index from all
stakeholders.
Measure: DAD Service Index (DSI)
GOOM Exercise
Work Action Plan Template
Sponsor: Completion Date
Organization:
n.n Goal
Outcome
n.n Objective
Measure
Mandated
Why Measure?
Proactive Reasons
Makes us more responsive to public needs
accomplishment
Creates blueprint for linking budget to
outcomes
Good management and good public policy
Measurement / Performance
How do we measure our progress?
5 Types of Measures
Input
Output
Outcome
Quality
Efficiency
INPUT Measure
Amount of resources needed to provide a
particular product or service.
Examples:
Number of FTEs or PYs
operating shift
OUTCOME Measure
Reflect the actual results achieved and/or their
impact or benefit.
Examples:
Reduction in incidence of disease
independently
Percent of increase in tourists
filled on time
QUALITY Measure
Reflect the effectiveness in meeting the
expectations of customers and stakeholders
Examples:
Number of defect reports compared to
Output/Time
Output/Cost
Outcome/Cost
Keeping Plans Off The Shelf
All Staff Meeting
Announce Phases
Review and Assess Plans at Quarterly
Sessions
Sponsors and Team Leads for Strategic
Goals and Strategic Objectives
Deming Philosophy – PDCA
Developing Bench Strength
“Drill Down” Application
Sponsors, Team Leads, and Team
Members
Work Action Plan
“Project” Champion
Leadership Training
Leadership Conference Presentations
Establishing Organizational
Permanence
Training Emphasis
Certification
Awards & Recognitions
“Caught-Ya”
Celebrations
Walk the Walk
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