Session 2: Strategic Organizational Development Planning
Strategic Organizational Development Planning PURPOSE : Help you begin developing your company’s strategic plan. <ul><li>O...
Strategic Planning A Tool For Strategic Organizational Development
What is a Strategic Plan? <ul><li>A Strategic Plan is a written statement of the future direction and goals of an organiza...
Three Aspects of Strategic Planning <ul><li>Strategic Planning Process </li></ul><ul><li>Strategic Issues </li></ul><ul><l...
Strategic Planning Flow Diagram 1 ENVIRONMENTAL SCAN <ul><li>Market Analysis </li></ul><ul><li>Competitive </li></ul><ul><...
Market Analysis <ul><li>Who are my customers or clients? </li></ul><ul><li>What are their needs? </li></ul><ul><li>How do ...
Competitive Analysis <ul><li>Who are my competitors? </li></ul><ul><li>What are their strengths and limitations? </li></ul...
Trend Analysis <ul><li>What are the relevant trends in the environment? </li></ul><ul><li>What are the opportunities and t...
Environmental Scan – Analysis of Results Strategies to Promote Success:  Maximizing Opportunities and Minimizing Threats K...
Strategic Planning – Organizational Assessment 1 ENVIRONMENTAL SCAN <ul><li>Market Analysis </li></ul><ul><li>Competitive ...
The Organizational Assessment:  What are Your Key Strengths and Limitations at Each Level in the Pyramid of Organizational...
Organizational Assessment Assessment Tools – The Growing Pains and Organizational Effectiveness Surveys
Growing Pains Survey
What Are Growing Pains? <ul><li>Problems which occur as a result of inadequate organizational development in relation to b...
Stages of Growth (US $) Integration $1 billion + $500 million + $333 million + II IV VI Stage I III V VII Expansion Consol...
Ten Classic Growing Pains <ul><li>People feel that there are not enough hours in the day. </li></ul><ul><li>People are spe...
Growing Pains Survey Growing Pains Not enough hours Putting out fires Not aware of others Don’t understand firm’s directio...
Growing Pains Scoring Interpretation A potential turnaround situation Purple 40-50 Some very significant problems Red 30-3...
Growing Pains by Organizational Stages Of Growth 0 5 10 15 20 25 30 35 40 45 50 0 1 2 3 4 5 6 Organizational Size (Stages ...
Growing Pains Ranked by Severity for PEAK Leadership Academy  18.9 10 Most people feel our meetings are a waste of time. 3...
Organizational Assessment – Growing Pains Results Analysis Strategies to Promote Success: Addressing Growing Pains “Proble...
The Management Systems Organizational Effectiveness Survey©
Organizational Effectiveness Survey© (OES) <ul><li>The Management Systems Organizational Effectiveness Survey© is a valida...
Survey Scoring <ul><li>Items on this survey are scored on a 5-point Likert scale, with the following meanings: </li></ul>T...
OES Mean Score Interpretation To a Very Slight Extent Purple 1.0-1.9 To a Slight Extent Red 2.0-2.9 To Some Extent Orange ...
Scoring Interpretation <ul><li>This report presents four different types of scores: </li></ul><ul><ul><li>Mean score  is a...
Overall Organizational Effectiveness by Pyramid Level (Mean Scores)
Overall Organizational Effectiveness by Pyramid Level (% Favorable Scores) 25.2 30.8 43.9 Overall 33.3 54.5 36.5 38.9 36.3...
Highest Rated Survey Items 71.2 3.9 M We have one or more distinctive market segments where we have true competitive advan...
Lowest Rated Survey Items *Note that items 44 and 55 are “reverse scaled.”  In order to produce the “best” or most favorab...
Organizational Assessment – Organizational Effectiveness Survey Results Analysis Strategies to Promote Success:  Maximizin...
Current Status:  Pyramid of Organizational Development   Strengths Opportunities to Improve CULTURE MANAGEMENT SYSTEMS OPE...
Organizational Assessment – Planning Survey Results Analysis Strategies to Promote Success:  Maximizing Strengths and Mini...
Strategic Planning Flow Diagram 3 STRATEGIC ISSUE RESOLUTION <ul><li>Business Foundation Issues </li></ul><ul><li>Strategi...
Business Definition A broad statement of what business the firm is in that acts as a lens through which to view future str...
Sample Business Definitions <ul><li>Starbucks </li></ul><ul><ul><li>Starbucks retail operations is in the business of prov...
Strategic Mission A broad, measurable, time-dated statement of what the organization wants to or needs to become by the en...
Sample: Starbucks Strategic Mission <ul><li>To establish Starbucks as the leading retailer and brand of To coffee in North...
Session Follow-Up and Preparation for the Next Session <ul><li>Work with your team to “finalize” your Business Foundation ...
Please note that all of the materials in this slide presentation are the proprietary intellectual property of Management S...
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  • To help answer these questions, MSCC has developed the following approach to strategic planning. This process consists of 6 key steps that should be done in sequence. Our process is designed to help you develop a living, on-going process so that planning becomes a way of life for your organization. First, we start with an environmental scan which examines your external environment. Next, we look internally at your organization by conducting an organizational assessment. These two pieces are used to develop the business foundation The 4th step is to create the actual plan along with budgeting. Finally, you review and implement the plan.
  • To help answer these questions, MSCC has developed the following approach to strategic planning. This process consists of 6 key steps that should be done in sequence. Our process is designed to help you develop a living, on-going process so that planning becomes a way of life for your organization. First, we start with an environmental scan which examines your external environment. Next, we look internally at your organization by conducting an organizational assessment. These two pieces are used to develop the business foundation The 4th step is to create the actual plan along with budgeting. Finally, you review and implement the plan.
  • To help answer these questions, MSCC has developed the following approach to strategic planning. This process consists of 6 key steps that should be done in sequence. Our process is designed to help you develop a living, on-going process so that planning becomes a way of life for your organization. First, we start with an environmental scan which examines your external environment. Next, we look internally at your organization by conducting an organizational assessment. These two pieces are used to develop the business foundation The 4th step is to create the actual plan along with budgeting. Finally, you review and implement the plan.
  • PowerPoint2.ppt

    1. 1. Session 2: Strategic Organizational Development Planning
    2. 2. Strategic Organizational Development Planning PURPOSE : Help you begin developing your company’s strategic plan. <ul><li>OBJECTIVES : </li></ul><ul><li>Identify your company’s strengths and opportunities to improve. </li></ul><ul><li>Identify the extent to which your company is experiencing “Growing Pains.” </li></ul><ul><li>Develop the foundation of your company’s strategic plan. </li></ul>
    3. 3. Strategic Planning A Tool For Strategic Organizational Development
    4. 4. What is a Strategic Plan? <ul><li>A Strategic Plan is a written statement of the future direction and goals of an organization based upon an assessment of: </li></ul><ul><ul><li>its current strengths and limitations for each of its key result areas </li></ul></ul><ul><ul><li>the current and anticipated future environment in which it will operate </li></ul></ul>
    5. 5. Three Aspects of Strategic Planning <ul><li>Strategic Planning Process </li></ul><ul><li>Strategic Issues </li></ul><ul><li>Elements of a Strategic Plan </li></ul>
    6. 6. Strategic Planning Flow Diagram 1 ENVIRONMENTAL SCAN <ul><li>Market Analysis </li></ul><ul><li>Competitive </li></ul><ul><li>Analysis </li></ul><ul><li>Trend Analysis </li></ul>2 ORGANIZATIONAL ASSESSMENT <ul><li>Culture </li></ul><ul><li>Management Systems </li></ul><ul><li>Operational Systems </li></ul><ul><li>Resources </li></ul><ul><li>Markets and Products </li></ul>3 STRATEGIC ISSUE RESOLUTION <ul><li>Business Foundation Issues </li></ul><ul><li>Strategic Organizational Development Issues </li></ul>5 BUDGETING 4 STRATEGIC BUSINESS PLAN <ul><li>Situation Analysis </li></ul><ul><li>Business Definition </li></ul><ul><li>Strategic Mission </li></ul><ul><li>Strategy </li></ul><ul><li>Key Result Areas </li></ul><ul><li>Goals and Objectives </li></ul><ul><li>Action Plans </li></ul>6 QUARTERLY MANAGEMENT REVIEW <ul><li>Reports </li></ul><ul><li>Meetings </li></ul>
    7. 7. Market Analysis <ul><li>Who are my customers or clients? </li></ul><ul><li>What are their needs? </li></ul><ul><li>How do they purchase my services? </li></ul><ul><li>What is value for them? </li></ul>
    8. 8. Competitive Analysis <ul><li>Who are my competitors? </li></ul><ul><li>What are their strengths and limitations? </li></ul><ul><li>Can I develop a competitive advantage? </li></ul>
    9. 9. Trend Analysis <ul><li>What are the relevant trends in the environment? </li></ul><ul><li>What are the opportunities and threats implied by those trends? </li></ul><ul><li>What goals should be set to deal with these opportunities and/or threats? </li></ul>
    10. 10. Environmental Scan – Analysis of Results Strategies to Promote Success: Maximizing Opportunities and Minimizing Threats Key Finding
    11. 11. Strategic Planning – Organizational Assessment 1 ENVIRONMENTAL SCAN <ul><li>Market Analysis </li></ul><ul><li>Competitive </li></ul><ul><li>Analysis </li></ul><ul><li>Trend Analysis </li></ul>2 ORGANIZATIONAL ASSESSMENT <ul><li>Culture </li></ul><ul><li>Management Systems </li></ul><ul><li>Operational Systems </li></ul><ul><li>Resources </li></ul><ul><li>Markets and Products </li></ul>3 STRATEGIC ISSUE RESOLUTION <ul><li>Business Foundation Issues </li></ul><ul><li>Strategic Organizational Development Issues </li></ul>5 BUDGETING 4 STRATEGIC BUSINESS PLAN <ul><li>Situation Analysis </li></ul><ul><li>Business Definition </li></ul><ul><li>Strategic Mission </li></ul><ul><li>Strategy </li></ul><ul><li>Key Result Areas </li></ul><ul><li>Goals and Objectives </li></ul><ul><li>Action Plans </li></ul>6 QUARTERLY MANAGEMENT REVIEW <ul><li>Reports </li></ul><ul><li>Meetings </li></ul>
    12. 12. The Organizational Assessment: What are Your Key Strengths and Limitations at Each Level in the Pyramid of Organizational Development? <ul><li>Personnel : </li></ul><ul><li>Hiring </li></ul><ul><li>Compensation </li></ul>Corporate Culture Values Beliefs Norms Management Systems Planning Organization Management Development Perf. Mgmt. Operational Systems Resources Management Products & Services Markets <ul><li>Accounting : </li></ul><ul><li>Billing </li></ul><ul><li>Payroll </li></ul><ul><li>Production : </li></ul><ul><li>Shipping </li></ul><ul><li>Marketing : </li></ul><ul><li>Selling </li></ul>Financial Resources Technological and Physical Resources Human Resources Develop Products (Services) Define Market Segments and Niche
    13. 13. Organizational Assessment Assessment Tools – The Growing Pains and Organizational Effectiveness Surveys
    14. 14. Growing Pains Survey
    15. 15. What Are Growing Pains? <ul><li>Problems which occur as a result of inadequate organizational development in relation to business size and complexity. </li></ul><ul><li>A common set of symptoms that something has gone wrong in the process of organizational development. </li></ul><ul><li>A signal of the need to make the transitions from one stage of organizational development to the next. </li></ul><ul><li>A set of leading indicators of future financial performance. </li></ul>
    16. 16. Stages of Growth (US $) Integration $1 billion + $500 million + $333 million + II IV VI Stage I III V VII Expansion Consolidation Institutionalization Description New Venture Professionalization Diversification Decline Resources and Operational Systems $1 to $10 million $500,000 to $5 million $300,000 to $3.3. million – Size of Organization (Sales)– Markets and “Products” Less than $1 million Less than $500,000 Less than $300,000 Management Systems $10 to $100 million $5 million to $50 million $3.3 million to $33 million Corporate Culture $100 to $500 million $50 million to $250 million $33 million to $167 million Critical Development Area Manufacturing Distribution Service Replication of the Cycle $500 million to $1 billion $250 million to $500 million $167 million to $333 million Revitalization Any Size Any Size Any Size
    17. 17. Ten Classic Growing Pains <ul><li>People feel that there are not enough hours in the day. </li></ul><ul><li>People are spending too much time “putting out fires.” </li></ul><ul><li>Man y people are not aware of what others are doing. </li></ul><ul><li>People lack understanding of where the firm is heading. </li></ul><ul><li>There are too few good managers. </li></ul><ul><li>Everybody feels “I have to do it myself if I want to get it done correctly.” </li></ul><ul><li>Most people feel our meetings are a waste of time. </li></ul><ul><li>When plans are made, there is very little follow-up and things just don’t get done. </li></ul><ul><li>Some people feel insecure about their place in the firm. </li></ul><ul><li>The firm has continued to grow in sales, but not in profits. </li></ul>
    18. 18. Growing Pains Survey Growing Pains Not enough hours Putting out fires Not aware of others Don’t understand firm’s direction Few Good Managers I have to do it myself Meetings are a waste of time Little follow-up on plans Insecure about place in the firm Growth in sales not profits To A Very Slight Extent To A Slight Extent To Some Extent To A Great Extent To A Very Great Extent
    19. 19. Growing Pains Scoring Interpretation A potential turnaround situation Purple 40-50 Some very significant problems Red 30-39 Some areas need attention Orange 20-29 Some things to watch Yellow 15-19 Everything is “OK” Green 10-14 Interpretation Color Score Range
    20. 20. Growing Pains by Organizational Stages Of Growth 0 5 10 15 20 25 30 35 40 45 50 0 1 2 3 4 5 6 Organizational Size (Stages of Growth) (Orange) (Orange) (Orange) (Red) (Red) (Orange) Growing pains High Low
    21. 21. Growing Pains Ranked by Severity for PEAK Leadership Academy 18.9 10 Most people feel our meetings are a waste of time. 30.0 2 People are spending too much time &quot;putting out fires.&quot; 36.8 1 People feel that there are not enough hours in the day. 25.7 Overall 21.5 8 Some people have begun to feel insecure about their place in the company. 21.5 8 People have a lack of understanding of where the company is headed. 25.1 5 The company has continued to grow in sales but not in profits. 25.1 5 Everyone feels &quot;I have to do it myself if I want to get it done correctly.&quot; 25.1 5 Many people are not aware of what others are doing. 26.2 4 When plans are made, there is very little follow-up and things just don't get done. 26.8 3 There are too few &quot;good&quot; managers. Score Rank Growing Pain
    22. 22. Organizational Assessment – Growing Pains Results Analysis Strategies to Promote Success: Addressing Growing Pains “Problems” Infrastructure “Problems” The Might Be Contributing to Results
    23. 23. The Management Systems Organizational Effectiveness Survey©
    24. 24. Organizational Effectiveness Survey© (OES) <ul><li>The Management Systems Organizational Effectiveness Survey© is a validated instrument. </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul>
    25. 25. Survey Scoring <ul><li>Items on this survey are scored on a 5-point Likert scale, with the following meanings: </li></ul>To a Very Great Extent 5 To a Great Extent 4 To Some Extent 3 To a Slight Extent 2 To a Very Slight Extent 1 Meaning Score
    26. 26. OES Mean Score Interpretation To a Very Slight Extent Purple 1.0-1.9 To a Slight Extent Red 2.0-2.9 To Some Extent Orange 3.0-3.9 To a Great Extent Yellow 4.0-4.4 To a Very Great Extent Green 4.5-5.0 Interpretation Color Score Range
    27. 27. Scoring Interpretation <ul><li>This report presents four different types of scores: </li></ul><ul><ul><li>Mean score is a standard statistical “average” score on a 5-point (Likert) scale. </li></ul></ul><ul><ul><li>% Favorable = (# respondents with scores of ‘4’ or ‘5’)/(Total # respondents) </li></ul></ul><ul><ul><li>% Neutral = (# respondents with scores of ‘3’)/(Total # respondents) </li></ul></ul><ul><ul><li>% Unfavorable = (# respondents with scores of ‘1’ or ‘2’)/(Total # respondents) </li></ul></ul>
    28. 28. Overall Organizational Effectiveness by Pyramid Level (Mean Scores)
    29. 29. Overall Organizational Effectiveness by Pyramid Level (% Favorable Scores) 25.2 30.8 43.9 Overall 33.3 54.5 36.5 38.9 36.3 57.4 63.0 % Fav 36.7 26.2 33.6 32.6 34.0 25.0 24.3 % Neutral 30.1 Financial Results Management 19.3 Culture 30.0 Management Systems 28.5 Operational Systems 29.6 Resources 17.6 Products/Services 12.7 Markets % Unfav Pyramid Level
    30. 30. Highest Rated Survey Items 71.2 3.9 M We have one or more distinctive market segments where we have true competitive advantages over other firms. 54 72.9 4.0 M We know who our competitors are. 21 74.6 3.9 OS Our &quot;production&quot; process gets products and services to customers on a timely basis. 25 74.6 4.0 C We demonstrate fairness and consistency in our supervision of employees. 58 81.4 4.3 C We value quality in everything we do. 38 86.4 4.3 M We understand our customers' needs. 10 88.1 4.2 P Customers are satisfied with our products and/or services. 14 88.1 4.5 M We do whatever is necessary to meet or exceed customer needs. 15 % Favorable Mean Pyramid Level Organizational Effectiveness Item #
    31. 31. Lowest Rated Survey Items *Note that items 44 and 55 are “reverse scaled.” In order to produce the “best” or most favorable response, the respondent would need to select “To a Very Slight Extent” versus “To a Very Great Extent”. 44.1 2.7 C Planning and systematic execution of plans are rewarded more than &quot;crisis management.&quot; 45 44.1 2.5 MS Our company has a well-developed planning process that addresses strategic (long-range) issues. 51 44.8 2.7 C We focus more on sales than on profitability as a measure of performance. 55 45.8 2.6 MS We have an effective system for developing managers. 37 45.8 2.6 OS Our human resource management systems (recruiting, training, etc.) are effective. 50 45.8 2.5 MS Strategic plans are implemented effectively. 52 46.6 2.5 R Overall, we have an adequate number of people with the right skills to be an effective organization. 18 48.3 2.6 MS Managers spend more time doing work themselves than planning and directing the work of others. 44 49.2 2.6 OS We have an effective and efficient system for developing new products and/or services. 17 49.2 2.5 MS Our reward/recognition system effectively differentiates between outstanding, average, and below-average performance. 63 % Unfavorable Mean Pyramid Level Organizational Effectiveness Item #
    32. 32. Organizational Assessment – Organizational Effectiveness Survey Results Analysis Strategies to Promote Success: Maximizing Strengths and Minimizing Limitations Most Significant Limitations (Opportunities to Improve) Most Significant Strengths
    33. 33. Current Status: Pyramid of Organizational Development Strengths Opportunities to Improve CULTURE MANAGEMENT SYSTEMS OPERATIONAL SYSTEMS RESOURCES MARKETS PRODUCTS/SERVICES
    34. 34. Organizational Assessment – Planning Survey Results Analysis Strategies to Promote Success: Maximizing Strengths and Minimizing Limitations Key Finding
    35. 35. Strategic Planning Flow Diagram 3 STRATEGIC ISSUE RESOLUTION <ul><li>Business Foundation Issues </li></ul><ul><li>Strategic Organizational Development Issues </li></ul>1 ENVIRONMENTAL SCAN <ul><li>Market Analysis </li></ul><ul><li>Competitive </li></ul><ul><li>Analysis </li></ul><ul><li>Trend Analysis </li></ul>2 ORGANIZATIONAL ASSESSMENT <ul><li>Culture </li></ul><ul><li>Management Systems </li></ul><ul><li>Operational Systems </li></ul><ul><li>Resources </li></ul><ul><li>Markets and Products </li></ul>5 BUDGETING 4 STRATEGIC BUSINESS PLAN <ul><li>Situation Analysis </li></ul><ul><li>Business Definition </li></ul><ul><li>Strategic Mission </li></ul><ul><li>Strategy </li></ul><ul><li>Key Result Areas </li></ul><ul><li>Objectives and Goals </li></ul><ul><li>Action Plans </li></ul>6 QUARTERLY MANAGEMENT REVIEW <ul><li>Reports </li></ul><ul><li>Meetings </li></ul>
    36. 36. Business Definition A broad statement of what business the firm is in that acts as a lens through which to view future strategies. <ul><li>Who are our customers? </li></ul><ul><li>What are their needs? </li></ul><ul><li>How do they buy? </li></ul><ul><li>What is value to them? </li></ul>Addresses the Questions:
    37. 37. Sample Business Definitions <ul><li>Starbucks </li></ul><ul><ul><li>Starbucks retail operations is in the business of providing a total, quality coffee experience to a Tier I and Tier II customer. This is accomplished through a range of innovative, flexible business concepts tailored to the given customer’s needs in terms of take-out, café, and retail. </li></ul></ul><ul><li>Techlink </li></ul><ul><ul><li>Techlink is in the business of partnering with the management of Fortune 1000 and high growth companies ($100M to $10B) to build and implement information technology business solutions for sustainable business advantage. </li></ul></ul>
    38. 38. 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.
    39. 39. Sample: Starbucks Strategic Mission <ul><li>To establish Starbucks as the leading retailer and brand of To coffee in North America by the year 2000, by creating distinctive daily coffee experiences for our customers wherever they live, work or play. </li></ul><ul><ul><li>$2 Billion in revenue </li></ul></ul><ul><ul><li>2000 Stores by 2000 </li></ul></ul><ul><ul><li>$2 Billion + 2000 = 2000 </li></ul></ul>
    40. 40. Session Follow-Up and Preparation for the Next Session <ul><li>Work with your team to “finalize” your Business Foundation – Business Concept, Strategic Mission, and Core Strategy. </li></ul><ul><li>Continue developing the Objectives and Goals for your plan. </li></ul><ul><ul><li>Be sure to convert “Strategies to Promote Success” into Objectives and/or Goals. </li></ul></ul><ul><li>Consider sharing your draft plan with a fellow participant to obtain feedback. </li></ul><ul><li>Bring any current written job descriptions for the people on your team and any performance evaluation forms that you use in your company with you to our next session. </li></ul><ul><li>Read Chapter 8 and Chapter 10 in Growing Pains. </li></ul>
    41. 41. 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

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