Strategic Management - PowerPoint PPT Presentation

Loading...

PPT – Strategic Management PowerPoint presentation | free to download - id: 41ee10-NjEyY



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Strategic Management

Description:

Strategic Management GM 105 Dr. Lindle Hatton Developing Bench Strength Drill Down Application Sponsors, Team Leads, and Team Members Work Action Plan ... – PowerPoint PPT presentation

Number of Views:1088
Avg rating:3.0/5.0
Slides: 101
Provided by: Lindle5
Learn more at: http://www.csus.edu
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Strategic Management


1
Strategic Management
  • GM 105
  • Dr. Lindle Hatton

2
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 wont 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
  • There is a Coxswain
  • No other crewmember has a title
  • Crewmembers are multi-talented
  • The canoe theory understands crisis
  • The canoe theory says you have the right to be
    happy

3
CANOE THEORY
4
BUILT TO LAST
  • Preserve the Core

Stimulate Progress
5
Stimulate Progress
  • Best Practices
  • Strategic Leadership

6
BUILT TO LAST(Collins, 1994)
  • BIG HAIRY AUDACIOUS GOALS (BHAGs)
  • CULT-LIKE CULTURE
  • TRY A LOT OF STUFF AND KEEP WHAT WORKS
  • HOME-GROWN MANAGEMENT
  • GOOD ENOUGH NEVER IS

7
GOOD TO GREAT (Collins, 2001)
  • Level 5 Leadership
  • First WhoThen What
  • Confront the Brutal Facts
  • The Hedgehog Concept
  • A Culture of Discipline
  • Technology Accelerators
  • The Flywheel and The Doom Loop

8
Core Ingredients of Learning Organizations
  • Mental Models everyone sets aside old ways of
    thinking.
  • Personal Mastery - everyone becomes self-aware
    and open to others.
  • Systems Thinking everyone learns how the whole
    organization works.
  • Shared Vision everyone understands and agrees
    to a plan of action.
  • Team Learning everyone works together to
    accomplish the plan.

9
The Bananas
10
Bananas in the Organization
  • Exercise
  • We tried that and it didnt work.
  • We dont do it that way here.
  • Mary is the only one who can do that so..

11
Strategic Leadership
  • Ability to anticipate, envision, maintain
    flexibility, and empower others to create
    strategic changes as necessary
  • Leadership is the process of transforming an
    organization from what it is to what the leader
    would it become
  • Three interdependent activities
  • Setting a direction
  • Designing the organization
  • Nurturing a culture dedicated to Excellence
  • Top Management Team (TMT)
  • Charge

12
Private versus Public Organizations
  • Purpose
  • Goals
  • Financing
  • Decision-Making
  • Key Stakeholders

13
  • Strategic Management
  • Versus
  • Strategic Planning

14
Features of Successful Strategic Management
  • Has support of organizations 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.

15
Features (Continued)
  • Is Proactive
  • Not a Quick Fix
  • Part of Quality Management
  • Payoffs Increase over Time

16
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.

17
Why Managers Dont Plan
  • Time Consuming
  • High Demands
  • Not Rewarded
  • Executives Dont Support It
  • Too Risky

18
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?

19
Strategic Management Model
  • Strategy Formulation
  • Where do we want to be?
  • Vision
  • Mission
  • Values
  • Goals
  • Objectives

20
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

21
VISION (Continued)
  • Inspiring and Challenging
  • Descriptive of the Ideal

22
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 Worlds Best Quick Service Restaurant

23
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) John Maxwell, Developing The
    Leader Within You, 1993.

24
VISION EXERCISE
25
Mission Statement
  • In the absence of a clearly defined direction one
    is forced to concentrate on confusion that will
    ultimately consume you.

26
MISSION
  • What is our purpose?
  • Describes current state
  • Timeline is 3-5 Years
  • Builds on our distinctive competencies
  • Tends to focus on Core Business
  • 30-35 Words in length

27
Mission Examples
  • To Lead All Communities in Disaster
    Preparedness, Mitigation, and Recovery by
    Maximizing Assistance and Support.
  • Caltrans Improves Mobility Across California.
  • To produce superior financial returns for our
    shareholders as we serve our customers with the
    highest quality transportation, logistics, and
    e-commerce.

28
MISSION EXERCISE
29
Corporate Governance
  • What is it?
  • Codes of Governance
  • Role of the Board of Directors
  • Role of Top Management Team
  • Executive Compensation

30
Corporate Governance
  • System by which a firms owners control its
    affairs.
  • Does it work?

31
Codes of Governance
  • The Cadbury Code 1992
  • Sarbanes-Oxley Act 2002
  • Public Company Accounting Oversight Board
  • Triple bottom line
  • Four major issues
  • Ownership structure and influence
  • Fianacial Stakeholder rights and relations
  • Financial transparency and information disclosure
  • Board structure and processes (audit)

32
Role of the Board of Directors
  • Monitor
  • Evaluate and influence
  • Initiate and determine
  • Organization of Board
  • Insiders versus outsiders
  • CEO/chair position
  • Committees Effectiveness

33
Role of Top Management Team
  • Who is the TMT?
  • Executive Leadership and Strategic Vision
  • Articulates strategic vision for corporation
  • Sets the model for others to identify and follow
  • Communicates high performance standards and
    builds confidence in followers abilities to meet
    standards
  • Managing strategic planning process

34
Executive Compensation
  • Incentive alignment
  • Executive Ownership
  • Incentive compensation
  • Salary
  • Bonus
  • Stock Options
  • LT Bonus

35
VALUES
  • Guiding Principles
  • Help establish Culture
  • Part of Preserving the Core
  • Core Ideology

36
Value Examples
  • CHP PRIDE
  • HP WAY
  • J J Credo
  • Build the Spirit of the Place

37
Ethical Awareness Model
  • Organizational Ethics
  • Individual Ethics
  • Personal Values

38
VALUES EXERCISE
39
Strategic Management Model
  • Scanning
  • Where are we now?
  • Macro Analysis (STEP, PESTEL, ETC.)
  • Industry Analysis Competitive Intelligence
  • SWOT Analysis
  • Internal versus
  • External Elements

40
Why Scan?
  • To know your position in the environment
  • To respond effectively to constant change
  • To see the organization as a whole
  • To avoid surprises
  • To survive
  • To lay the foundation for strategic issues

41
SCANNING Key Environmental Variables
  • Macro Environment STEP, PESTEL
  • Task Environment Industry
  • Internal Environment Focal Organization

42
Socio-Cultural Variables
  • Lifestyle Changes
  • Career Expectations
  • Regional Shifts in Population
  • Life Expectancies
  • More women in workforce
  • Greater concern for fitness
  • Postponement of family formation
  • Increase in temporary workers

43
Technological Variables
  • Total Federal Spending for RD
  • Total Industry Spending for RD
  • Focus of Technological Efforts
  • Patent Protection
  • Wireless Communications
  • Nanotechnology
  • Productivity Improvements
  • Genetic engineering

44
Economic Variables
  • GDP Trends
  • Interest Rates
  • Money Supply
  • Inflation Rates
  • Unemployment Levels
  • Wage/Price Controls
  • Energy Availability Cost
  • Disposable Discretionary Income

45
Political-Legal Variables
  • Antitrust Regulations
  • Tort Reform
  • Environmental Protection Laws
  • Taxation at local, state, federal levels
  • Hiring and Promotion Laws
  • Americans Disabilities Act of 1990
  • Sarbanes-Oxley Act of 2002

46
Demographic Variables
  • Aging Population
  • Rising affluence
  • Changes in Ethnic Composition
  • Geographic distribution of population
  • Disparities in income levels

47
Global Variables
  • Increasing Global Trade
  • Currency Exchange Rates
  • Emergence of Indian and Chinese Economies
  • Trade agreements (NAFTA, EU, ASEAN)
  • Creation WTO

48
STEP EXERCISE
  • Socio-Cultural
  • Technological
  • Economic
  • Politico-Legal

49
Industry Analysis
  • 6 Forces Analysis
  • Industry Competitors
  • Suppliers/Vendors
  • Customers/Clients
  • Potential New Entrants
  • Substitutes
  • Other Stakeholders
  • Role of Complementors

50
New Entrants and Entry Barriers
  • Absolute cost advantages
  • Access to inputs
  • Government policy
  • Economies of scale
  • Capital requirements
  • Brand identity
  • Switching costs
  • Access to distribution
  • Proprietary products

51
Buyer Power (Channel and End Consumer)
  • Buyer volume and information
  • Brand identity
  • Price sensitivity
  • Threat of backward integration
  • Product differentiation
  • Substitutes

52
Supplier Power
  • Supplier concentration
  • Differentiation of inputs
  • Switching costs
  • Threat of forward integration
  • Cost relative to total purchases in industry

53
Substitutes
  • Switching costs
  • Buyer inclination to substitute
  • Variety of substitutes
  • Price-performance tradeoff of substitutes
  • Necessity for product or service

54
Degree of Rivalry
  • Exit barriers
  • Industry concentration
  • Fixed costs
  • Industry growth
  • Intermittent overcapacity
  • Switching costs
  • Brand identity
  • Diversity of rivals
  • Corporate stakes

55
Other Stakeholders
  • Employees
  • Unions
  • Government
  • Trade and Professional Associations
  • Other Direct Influencers

56
Role of Complementors
  • Number of complements
  • Relative value added
  • Difficulty of engaging complements
  • Buyer perception of complements
  • Complement exclusivity
  • Tend to increase profits by increasing demand for
    an industrys products

57
6 FORCES EXERCISE
58
Competitive Profile Analysis
  • Identify Key Competitive Factors
  • Identify key Competitors

59
COMPETITIVE PROFILE EXERCISE
60
Industry Foresight
  • Customer
  • Needs
  • Unarticulated
  • Articulated
  •  

    Customer
  • Served Unserved Types



Unexploited Opportunities
61
Internal Environment
  • Internal Profile Analysis
  • SWOT Analysis

62
Internal Profile Analysis
  • Identify Key Core Functions
  • Identify Key Measures for Core Functions
  • Build Matrix

63
SWOT Analysis
  • Internal Environment
  • Strengths
  • Weaknesses
  • External Environment
  • Opportunities
  • Threats

64
SWOT EXERCISE
65
Strategic Management Model
  • Strategy Formulation
  • Where do we want to be?
  • Vision
  • Mission
  • Values
  • Goals
  • Objectives

66
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

67
Goal Examples
  • Achieve excellence in the delivery of disaster
    recovery and mitigation programs.
  • Professionally develop our employees as a
    reflection of DADs 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.

68
Goal Statements Litmus Test
69
Goal Exercise
70
OBJECTIVES
  • Add specificity beyond Goals
  • Answer the questions
  • What is to be accomplished?
  • When?
  • Should contain the SMART Elements

71
OBJECTIVES SMART Model
  • Specific
  • Measurable
  • Aggressive but Attainable
  • Results-Oriented
  • Timeframe

72
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.
    (PG)
  • 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. (Walgreens)
  • Reduce greenhouse gases by 10 percent (from a
    1990 bast) by 2010. (BP Amoco)

73
Objectives Litmus Test
74
Strategic Objective Exercise
75
Strategic Management Model
  • Strategy Implementation
  • Everyone is Responsible
  • Few Guidelines
  • No Easy 10-Step Checklist to Follow

76
Strategic Management Model
  • Strategy Implementation
  • Most open-ended part of Strategic Mgmt
  • People implement strategies not Organizations

77
Strategic Management Model
  • Strategy Implementation
  • How do we get there?
  • Work Action Plans
  • GOOMs

78
Strategy Implementation Considerations
  • 7-S Framework Strategic Fit
  • Human Resources
  • Patience

79
7-S Framework
  • Shared Values
  • Strategy
  • Structure
  • Systems
  • Skills
  • Style
  • Staff

80
Human Resource Rule
  • Hire Smart
  • Train Hard
  • Manage Effectively

81
Parable of the Bamboo
  • It takes patience and discipline to develop and
    empower people in fact, its 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
    resultsHow, 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.

82
Implementation Strategies
  • GOOMs
  • Implementation Conference
  • CEO involvement
  • Other Strategies?

83
GOOMs
  • Goals
  • Outcomes
  • Objectives
  • Measures

84
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

85
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)

86
GOOM Exercise
87

88
Strategic Management Model
  • Measurement / Performance
  • Why do we measure our progress?

89
Why Measure?
  • Reactive Reasons
  • Government Intervention
  • Fewer Resources and Smaller Budgets
  • Increased Demand for Accountability
  • Mandated

90
Why Measure?
  • Proactive Reasons
  • Makes us more responsive to public needs
  • Provides feedback on mission accomplishment
  • Creates blueprint for linking budget to outcomes
  • Good management and good public policy

91
Measurement / Performance
  • How do we measure our progress?
  • 5 Types of Measures
  • Input
  • Output
  • Outcome
  • Quality
  • Efficiency

92
INPUT Measure
  • Amount of resources needed to provide a
    particular product or service.
  • Examples
  • Number of FTEs or PYs
  • Number of eligible clients
  • Number of customers requesting service
  • Number of applications received
  • Number of sales orders received

93
OUTPUT Measure
  • Amount of products or services provided
  • Examples
  • Percent of highways resurfaced
  • Number of police reports filed
  • Number of vaccinations given to school-age
    children per year
  • Number of shafts produced in a single operating
    shift

94
OUTCOME Measure
  • Reflect the actual results achieved and/or their
    impact or benefit.
  • Examples
  • Reduction in incidence of disease
  • Percentage of discharged patients living
    independently
  • Percent of increase in tourists
  • Percent of monthly programmed sales orders filled
    on time

95
QUALITY Measure
  • Reflect the effectiveness in meeting the
    expectations of customers and stakeholders
  • Examples
  • Number of defect reports compared to number of
    reports produced
  • Number of course ratings in highest category
    related to total number of course ratings

96
EFFICIENCY Measure
  • Also known as productivity measures. Reflect the
    cost of providing products or services.
  • Examples
  • Output/Input
  • Output/Time
  • Output/Cost
  • Outcome/Cost

97
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

98
Developing Bench Strength
  • Drill Down Application
  • Sponsors, Team Leads, and Team Members
  • Work Action Plan
  • Project Champion
  • Leadership Training
  • Leadership Conference Presentations

99
Establishing Organizational Permanence
  • Training Emphasis
  • Certification
  • Awards Recognitions
  • Caught-Ya
  • Celebrations
  • Walk the Walk

100
NEXT STEP
About PowerShow.com