Leadership and

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Chapter 5

• Leadership and
• Strategic
• Planning

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Leadership

• The ability to positively influence people and
  systems under ones authority to have a
  meaningful impact and achieve important results

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Strategic Planning

• The process of envisioning an organizations
  future and developing the necessary goals,
  objectives, and action plans 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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Key Idea
Six key leadership competencies can be described
as navigator, communicator, mentor, learner,
builder, and motivator.
Dale Crownover, President, Texas Nameplate Co. (a
2-time Baldrige Award recipient)
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Leadership Competencies

• Navigatorcreates shared meaning and provides
  direction toward a vision,mission, goal, or
  end-result.
• Communicatoreffectively listens and articulates
  messages to provide shared meaning.
• Mentorprovides others with a role to guide their
  actions.
• Learnercontinuously develops personal knowledge,
  skills, and abilities through formal study,
  experience, reflection, and recreation.
• Buildershapes processes and structures to allow
  for the achievement of goals and outcomes.
• Motivatorinfluences others to take action in a
  desirable manner.

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Leading Practices Leadership (1 of 2)

• Create and deploy a customer-focused strategic
  vision and clear quality values
• Create a sustainable organization and environment
  for performance improvement, accomplishment of
  the mission, innovation, agility, and learning
• Demonstrate personal commitment to organizational
  values, develop future leaders, and reinforce
  high performance
• Create a focus on action and communicate with,
  empower, and motivate all employees

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Leading Practices Leadership (2 of 2)

• Address organizational governance to include
  management and fiscal accountability, protection
  of stakeholder interests, and conduct evaluations
  to improve the leadership system
• Create an environment that fosters legal and
  ethical behavior
• Integrate public responsibilities,
  resource-sustaining processes, and community
  support into business practices

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Key Idea
The purpose of leadership theories is to explain
differences in leadership styles and contexts.
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Leadership Theories

• Classic theories
• Trait approach
• Behavioral approach
• Role approach
• Contemporary and emerging theories
• Situational leadership
• Transactional leadership theory
• Transformational leadership theory
• Substitutes for leadership theory
• Emotional intelligence theory

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Key Idea
Emerging leadership theories build on or enlarge
traditional theory by attempting to answer
questions raised, but not answered, by earlier
approaches.
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Leadership System

• Leadership system how decisions are made,
  communicated, and carried out at all levels
  mechanisms for leadership development,
  self-examination, and improvement
• Effectiveness of the leadership system depends in
  part on its organizational structure

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Key Idea
An effective leadership system respects the
capabilities and requirements of employees and
other stakeholders, and sets high expectations
for performance and performance improvements.
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Example Solar Turbines, Inc.
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Governance

• Governance the system of management and
  controls exercised in the stewardship of an
  organization.
• Approving strategic direction
• Monitoring and evaluating CEO performance
• Succession planning
• Financial auditing
• Executive compensation
• Disclosure
• Shareholder reporting

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Leadership and Social Responsibilities

• Ethics
• Health, safety, and environment
• Community support

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Key Idea
Practicing good citizenship refers to leadership
and support within the limits of an
organizations resources of publicly important
purposes, including improving education,
community health, environmental excellence,
resource conservation, community service, and
professional practices.
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Strategic Planning
A strategy is a pattern or plan that integrates
an organizations major goals, policies, and
action sequences into a cohesive whole. 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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Leading Practices - Strategic Planning

• Systematic planning systems for strategy
  development and deployment
• Understand the competitive environment and the
  factors and strategic challenges that determine
  success, and gather and analyze a variety of
  external and internal data
• Align short-term action plans with long-term
  strategic objectives, communicate them, and track
  progress
• Derive human resource plans from strategic
  objectives and action plans
• Identify key measures and indicators for tracking
  progress, reinforce organizational alignment, and
  compare performance with competitors

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Strategic Planning Process
Reason for existence
Future intent
Attitudes and policies
Mission
Vision
Guiding Principles
Environmental assessment
Capabilities and risks
Broad statements of direction
Strategies
Things to change or improve
Strategic Objectives
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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Values (Guiding Principles)

• Define attitudes and policies for all employees,
  which are reinforced through conscious and
  subconscious behavior at all levels of the
  organization.
• Alcoa integrity, environmental health and
  safety, customer, excellence, people,
  profitability, accountability

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Environmental Assessment

• Customer and market requirements, expectations,
  and opportunities
• Technological and other innovations
• Organizational strengths and weaknesses
• Financial, societal, ethical, regulatory and
  other potential risks
• Changes in global or national economy
• Factors unique to the organization, such as
  partner and supply chain needs

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Key Idea
Strategies are broad statements that set the
direction for the organization to take in
realizing its mission and vision. Strategic
objectives are what an organization must change
or improve to remain or become competitive. Action
plans are things that an organization must do to
achieve its strategic objectives.
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Strategy Deployment

• Developing detailed action plans, defining
  resource requirements and performance measures,
  and aligning work unit, supplier, or partner
  plans with overall strategic objectives.

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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 5.5!
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Key Idea
Strategic objectives and action plans often
require significant changes in human resource
requirements, such as redesigning the work
organization or jobs to increase employee
empowerment and decision making, promoting
greater labor/management cooperation, modifying
compensation and recognition systems, or
developing new education and training initiatives.
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Link Human Resource Plans and Business Strategy

• Examples
• Redesign work organization to increase
  empowerment
• Promote greater labor/management cooperation
• Foster knowledge sharing and organizational
  learning
• Establish partnerships with education to better
  prepare future employees

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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 and Organizational Structure

• Basic types of organizational structures
• Line organization
• Line and staff organization
• Matrix organization

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Key Idea
As more and more companies accept the process
view of organizations, they are structuring the
quality organization around functional or
cross-functional teams.
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Team-Based Organization Chart
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Leadership in the Baldrige Criteria

• The Leadership Category examines how an
  organizations 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 the organizations governance and how
  the organization addresses its public and
  community responsibilities.
• 1.1 Senior Leadership
• a. Vision and Values
• b. Communication and Organizational Performance
• 1.2 Governance and Social Responsibilities
• a. Organizational Governance
• b. Legal and Ethical Behavior
• c. 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