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A PROPOSAL TO USE STRATEGIC ANDPERFORMANCE MANAGEMENT TOOLS TO MARKETVIRTUAL HUMAN RESOURCES SERVICES TO FIRMSPROVIDING TECHNOLOGY AND HUMAN CAPITALINTENSIVE SERVICES*Robert Chan, TMAN 680*Or, how we can monetize what we just learned without waiting for a degree…
Traditional marketing processes leave toomuch to chanceA strategic and performance based process:• Targets resources and effort• Realizes competitive advantage• Integrates strategy with cultural &organizational developmentA STRATEGIC MANAGEMENT APPROACH TOSELLING STRATEGIC AND PERFORMANCEMANAGEMENT SERVICESThis presentation is about using the tools of strategic and performance management to market biddingservices to firms and provide strategic and virtual human resource management to firms.
•Clients: Small minority businesses entering the CommerceDepartments 8a set aside program• Providing technology services: Information Technology, SpecialStudies & Analyses, Research & Development, ProfessionalServices•Methodology: Consultative approach (Gallessich, 1982)•Firm entering this market are often unpreparedThe market chosen is the federalcontracting environment composed oflarge, technological and human capitalintensive projects, e.g., specific NAICscodes, contracting for less than $13million, i.e., to quality as a project for asmall business. .A new minted 8a firm needs to be at a great many things, i.e., marketing,management, human resources, in a hurry., i.e., before graduating into opencompetition in 7 years. The path of least resistance is to allow the firm to be apass-through for larger, more mature (but ineligible) firms and make a quickprofit. The problem with this approach is that The organization remainsimmature and incapable of competing in open competition
•Technology projects are heavily dependant uponhuman capital and knowledge resources.•Entrepreneurs may have strength in one corearea, but weaknesses in others.•Potential clients have deficits or gaps in one ormore core competenciesCLIENT PROFILES TheconnectedThewannabesUnderusedcontractorsUnderutilizedcredentialsThe following types of clientsseek bidding assistance,strategic and performancemanagement, and humanrelations management servicesTheunprepared8a graduatesThe brilliantwithoutbusiness skillsFirms withunderutilizedstaffs
THE PROSPECTING PROCESSThe tools of strategic and performancemanagement are applied in 3 phases to:•Identify strategic opportunities which wouldbenefit clients•Match clients to opportunities•Engage clients
Horizontal IntegrationStage 1 Operations Orientation: resolve deficits incorecompetencies by providing providing virtual humanresource management (Lepak & Snell, 1998, Price,2000, Strohmeier, 2007) and bidding services toestablish a business base.Stage 2: Strategic Orientation: create multiple lines ofbusiness from core competencies integrated withoverall mission & visionVertical IntegrationStage 3: Integrated Process Orientation: Align firmwithcustomers, markets & innovationTHE EVOLUTION OF PERFORMANCEMANAGEMENTStage 1: Strategy for Organizational Entry: help newly minted 8a firms capitalize onstrategic opportunities and provide virtual human resources to execute the contract.Stage 2: Ensuregrowth andsustainability byestablishing and finetuning basic businessprocessesStage 3:Prepare firm for opencompetition by consolidating itsstrategic competencies, keyperformance indicators, andstreamlining its asset supply chain
LINKING STRATEGY TO PERFORMANCEA different aspect of performance is managed as thefirm advances through growth stages 1-3• Stage 1: Initially, the Balanced Scorecard (Kaplan & Norton, 1992)links the mission(s), strategies and outcomes toorganizational performance. This is suitable for time basedcompetition.• Stage 2: As the firm advances to growth stage 2 processes linked toquality improvement processes such as ISO 9000, TQM and Sigma 6.this is suitable for quality based competition• Stage 3: The firm is ready for open competition (growth stage 3) when itconsiders risk management, integrated performance management,and a performance oriented culture. This is suitable for strategiccompetition or establishing and maintaining competitive advantage
A Balanced Scorecard strategy map illustrates thepathways between strategies and each balancedscorecard perspective leading to the mission ofresolving deficits in core competencies.ANNOTATED BALANCED SCORECARD STRATEGYMAP (KAPLAN & NORTON, 1992)Linkages between the Problem(s) , ServicePortfolio of business processes to resolvethem and organizational strategy elementsand where outcomes are found in theproductMission(s):Resolvebarriers torealizingCriticalcompetenciesStrategy:Form of servicesoffered to reducebarrier to criticalcompetency byfunctional areaOutcome:WhereproblemresolvedInterventionStrategiesStrategy Map: Identify, Diagnose and ProvideStrategic Capabilities for 8a FirmsLacking DepthLacking CredentialsOr CapacityBreak IntoNewMarketsFillStaffingDeficitsFillProcessDeficitsMonitizeAssets;ConnectedIndividualsOrFirms;RealizeOpportunities/CapabilitiesMatureFirms;Ex8-AFirmsFunctional Element AddressedFinance Facilitate Business Development Process By Filling In Gaps In Capacity, Depth Or CredentialsMarketingEstablish OrExpand NewCapabilitiesAnd CapacitiesEstablish OrExpand NewCapabilitiesAnd CapacitiesFocus On StrategicOpportunity OrNicheDevelop StrategicOpportunity OrNicheExploit StrategicOpportunity OrNicheProductionProvideKnowledge,TechnicalWorkersCreate ProcessAlternativesDevelop Process Develop Process Increase UtilizationTechnologyTechnology &KnowledgeTransferTechnology &KnowledgeTransferDevelopmentalSupportTechnology &Knowledge TransferIncrease UtilizationHuman ResourcesProvideHuman CapitalProcessCreation &EngineeringDevelopment &Support StaffingProcess Creation &EngineeringIncrease UtilizationBidding Element AddressedTechnical Approach √ √Management Plan √ √ √History & Credentials √ √
The market develops with each procurement, regardless of which firm winsthe bid.• Small Business Utilization Specialists (CFE, 1996) become familiar withfirm capacities• Bidding firms fine tune (at least on paper) their processes,− Develop valuable relationships and connections− Enhance their knowledge of client/agency interests and futuredirections.The following table illustrates these interfaces by deficiency, performancedimension, i.e., financial, customer and value, internal and learning andgrowth views, and specific key performance indicator (David, 2007).CRITICAL SUCCESS FACTORSMission(s):Resolve barriersto realizingCriticalcompetenciesKey Performance indicatorsInterface between Mission, Problem elements andOrganizational Performance, by Financial, Customer & Value,Internal and Learning and Growth Perspectives
SUMMARYProposed is a prospecting approach toidentifying and engaging new clients in need ofstrategy and performance managementservices. Initially, clients are identified andengaged by providing virtual human resourcemanagement to fill deficits in firm competenceto bid projects. After contract award, servicesare added to enhance organizational growthand sustainability, including strategicmanagement services to promote nicheexpertise and performance managementservices to ensure quality, effectiveness andefficiency. These services are expanded toensure sustainability by providing riskmanagement services.