Introduction to LPC - Facility Design And Re-Engineering
Developing and Managing Organizational Strategy_BAZELEY
1. Developing and Managing
Organizational: STRATEGY
Chapter 5 – Roger Bazeley, Summary
Essential Guide To
Management: Alan Murray
The Wall Street Journal
2. Overview
The role of “strategy” in managing an
organization’s delivery of; it’s products,
services, and/or projects.
definition of “strategic management”
principals;
review of goal setting concepts defining
“the mission statement” applied to the
organization, project management, and
team building;
discussion of values and motives that are
specifically important to the public sector.
4. The Role of STRATEGY
“Charting a course is the fundamental
responsibility of a manager.” Murray
What is your mission?
What is your strategy for
accomplishing the defined mission of
your organization or “the project”?
“people in an organization are crucial
to it’s performance”. Rainey
5. Managing STRATEGY
“Managers must know the path, where they
are going and have a clear plan for getting
there” What is your mission?
Manager must take responsibility to the
demands and needs of a vast web of
people: staff, vendors/contractors,
politicians, stakeholders, and
customers/the public.
A manager must focus on what you can and
should accomplish; and the methodology.
6. Effective People & Project Managers
To be PROACTIVE is fundamental.
Begin a project or task with the end in mind.
Keep your eye on the prize and be aware that the political
environment present challenges for motivating in the public
sector. RMB
Take “Strategic Responsibility” RMB
*Goal 1: Improve Leadership processes, Organizational
Culture, by understanding its mission.
*Goal 2: Strategy - realistic plan for accomplishing your
mission and project goals via strategic planning.
*Goal 3: Operational/Project Goals — Project Management
time table, milestones—Caltrans PID
7. Managing Strategic Planning
Project Management
Pyramid –J.P. Lewis
“Projects are
people! They are not
critical path
schedules or Gantt
charts.”
If a project manager
can’t deal effectively
with people, the
project quality will
suffer.
People are the foundation
8. The Mission Statement
Every organization and “Transportation Project” needs
a mission statement; an overall vision and concept
Missions can and do change over time and are
subject to political and social-economic forces.
The constraining character of government and
the political environment present challenges for
planning, funding, and building “public transportation”
projects small and large; can be “game changers”.
A clear mission statement should build a consensus of
the project’s importance, benefits, and funding.
*Goal: Mission statements should be clear, honest,
and reinforce transparency and accountability. RMB
10. The Mission Statement: Goals
Statement should define VISION and GOALS
What do we do? (Caltrans-We move people)
How do we accomplish it? (Planning, PID, EIR)
For whom do we do it? (Stakeholders, Customers…)
Pharma-Novartis: “Protecting people through
innovative science” 1.) Working to cure cancer; 2.)
Providing safe blood; 3.) Preventing infectious
diseases. (underlying: stay in business, make profit,
grow market share)
For whom do we do it? (Customers-A better life,
Shareholders-Financial return, Employees-Pride and
Opportunity for making a difference) Private Sector
12. The Mission Statement: Reality
Most organizations serve more than one targeted
group of stakeholders, partners, customers.
Company or Project values are often written into the
mission statement.
Current mission statements often reflect Economic,
environmental, or social mission values and goals.
Ben & Jerry’s, Inc. (Ice Cream) is known for its
financial commitment to social causes (Founders)
Carefully crafted mission statement can be a “great
Brand Marketing asset/tool” and positive
communicator projecting organizational or project
value, benefit, and public/customer acceptance.
14. CHSRA Mission Statement
VISION: “Inspired by successful high-speed train
systems worldwide, California's electrically-powered
high-speed trains will help the state meet ever-growing
demands on its transportation infrastructure.
Initially running from San Francisco to Los
Angeles/Anaheim via the Central Valley, and later to
Sacramento and San Diego, high-speed trains will
travel between LA and San Francisco in under 2 hours
and 40 minutes, at speeds of up to 220 mph, and will
interconnect with other transportation alternatives,
providing an environmentally friendly option to
traveling by plane or car.”
15. CHSRA Project Goals – The Promise
CHSR will be fast and reliable – offers passengers a quicker trip with
dependability
CHSR will be cutting edge – 220 MPH performance by using state-of-art
technology
CHSR is cost-effective – moves people at less cost vs. building highways
and airports
CHSR will improve mobility – supports inter-regional mobility and multi-modal
access
CHSR will stimulate our economy – growth of businesses, jobs, and
housing/TOD
CHSR is incremental – built in phases based upon funding availability and
demand.
CHSR will create jobs – construction, operations, retail and corporate;
450,000 jobs.
CHSR will benefit the environment – energy efficiency, reduce oil
dependency, air quality
CHSR supports the President’s Vision – major investment in HSR for
the nation
16. JR-East “Shinkansen”
Mission Statement
Business Goal: “Enhancing customers’ confidence
in our ability to provide safe and reliable services
at our stations, on our trains and elsewhere,” CEO
Otsuka
“The JR East Group aims to function as a dynamic corporate group
providing quality leading-edge services with railway businesses at its
core. To that end, each person working for the group will reflect the
viewpoints of customers by providing safe, reliable transportation and
high-quality, convenient products and services. At the same time, group
employees will continue raising the levels of services and technologies
to earn the trust and confidence of customers. We will grow
continuously and advance in harmony with customer by generating
earnings while meeting social responsibilities as a “Trusted Life-Style
Service Creating Group”. (JR-East)
Basic Principles:
1.) Putting the customer first;
2.) Ensuring safety and quality;
3.) Developing the group’s autonomy, collaboration, and new initiatives.
17. JR-East “Shinkansen”
Mission Goals
Fast – it offers a quicker trip with dependability; 300kmh/ plus (186/205 mph)
Safe – “extreme safety levels”, leading edge technology (ATC); Zero fatal
accidents.
Reliable – moves people effectively; delay time is 0.3 minutes per train.
Frequent – with 15 trains per hour, and a variety of Transport Formats-Train sets
Efficient – operates using technology to lower energy consumption. Multiple unit
power (EMU)
Environmentally Friendly – Low noise and Low CO2 emissions, lower
environmental impact
Benefits Communities – Social and Economic investment; business and jobs
Catalyst for TOD/Urban Development – Shinkansen promotes urban and station
TOD
Promotes Customer Markets – Expansion opportunities for “life-style businesses
Innovation in customer comfort and services – Comfort technology, industrial
design
Operational and Management Harmony – Applied uniformity, group acceptance
18. Complex Mission Statements
Economic Mission: To operate on a
financial basis of promoting growth
Social Mission: Recognizes the central
role the a business or project plays in
society. CHSRP-Job Growth, JR-East
Community TOD, Lifestyle products and
services.
Environmental/ECO Mission: Reducing
energy use, traffic congestion, air pollution
Beware of proliferating and conflicting
missions within the same organization.
19. STRATEGY
The word Strategy has its origins in
the military. Strategus was the
commander in chief in ancient Greece
who directed and planned movements
and operations of a campaign.
Reference: The Art of War-Sun Tzu
5 rules: measurement, assessment,
calculation, comparison, and victory.
To victor go the spoils/rewards.
20. Modern Business-Plan of Action
Product and service differentiation from the
competition: Goal to own the market/space
John Nash – Gaming Theory “Strategy to
control outcomes” ; control the process
Apple Computer: a Strategy of product
differentiation through innovation by
creativity. (CEO directed creative team)
Differentiation is a part of the complex area
of “brand marketing” through product
design/industrial design, corporate identity,
advertising, public relations
21. “Tendency to Tolerate Mediocrity
Peter Drucker, “Mediocrity is
like a disease, It contaminates
and spreads.”
Tolerating indifferent
performance in others is one
who practices mediocrity.
1.) Shortage of qualified
personnel; 2.) Practice of
Seniority; 3.) False or
inaccurate survey, testing, or
peer review measurement of
employee performance
Diagrams: Motivational intensity
caused by employer and
employee disparity in meeting
goal and performance
expectations—closing the
alignment gap with incentives
“Managing By Objectives”1972 – Paul Mali
22. Achieving a Strong Strategic
Position for Products/Services-Porter
Entry barriers to your market space: economy of scale,
product patents/design, distribution channels, government
regulations, etc.
Threat of Substitution: Apple iPhone competitors are
Android OS, Windows OS, and others: Apple Brand #1, GUI
easy to use. Design
Bargaining Power of buyers: market share and size
Bargaining Power of suppliers: vendor costs and
suppliers, multiple sources
Competitive challenges: Products, pricing, distribution,
alliances
Strategies: 1.) Cost/Pricing Leadership; 2.) Differentiation
by design/function; 3.) Focus –Market Share, Target, USA
23. Formulating A Strategy
Look Outward: assess organization’s environment,
strengths, PM Team
Look Inward: assess strengths and weaknesses to
perform
Identify multiple threats and opportunities-
EIR/Design Review
Evaluate strategy impacts on all parts of your
organization, and/or the project
Create Alignment: Critical to all participants in the
organization and/or project—transparency and
accountability through defined communications
channels.
RMB: Define process goals and milestones and have
an exit strategy---backdoor or alternative
strategies/plans-build, no build, incremental phases
24. “Thinking Out-Of-The Box”
Needs, Values, Motives
and Incentives pushing
toward meeting
project goals or
performing “the
mission” successfully
are difficult to measure
in the context of
society’s or an
organization’s
constantly changing
value system.
Choice of Embracing or
Rejecting Values/Goals
Editor's Notes
James P. Lewis, Project Planning, Scheduling, and Control
Fourth Edition: A Hands-On Guide to Bringing Projects in on Time and One Budget
Published 2005, McGraw-Hill