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 won’t 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
The canoe theory understands crisis
The canoe theory says you have the right to be
happy
5. GOOD TO GREAT
Level 5 Leadership
First Who…Then What
Confront the Brutal Facts
The Hedgehog Concept
A Culture of Discipline
Technology Accelerators
The Flywheel and The Doom Loop
8. Features of Successful
Strategic Management
Has support of organization’s 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.
9. Features (Continued)
Is Proactive
Not a Quick Fix
Part of Quality Management
Payoffs Increase over Time
10. 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.
11. Why Managers Don’t Plan
Time Consuming
High Demands
Not Rewarded
Executives Don’t Support It
Too Risky
12. 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?
13. Strategic Management Model
Strategy Formulation
Where do we want to be?
Vision
Mission
Values
Goals
Objectives
14. 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
16. 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 World’s Best Quick Service
Restaurant
17. 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.
19. Mission Statement
In the absence of a clearly defined
direction one is forced to concentrate
on confusion that will ultimately
consume you.
20. 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
21. 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.
25. 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)
26. Role of the Board of Directors
Monitor
Evaluate and influence
Initiate and determine
Organization of Board
Insiders versus outsiders
CEO/chair position
Committees’ Effectiveness
27. 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
33. Strategic Management Model
Scanning:
Where are we now?
Macro Analysis (STEP, PESTEL, ETC.)
Industry Analysis – Competitive
Intelligence
SWOT Analysis
Internal versus
External Elements
34. 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
36. 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
37. Technological Variables
Total Federal Spending for R&D
Total Industry Spending for R&D
Focus of Technological Efforts
Patent Protection
Wireless Communications
Nanotechnology
Productivity Improvements
Genetic engineering
39. 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
40. Demographic Variables
Aging Population
Rising affluence
Changes in Ethnic Composition
Geographic distribution of population
Disparities in income levels
41. Global Variables
Increasing Global Trade
Currency Exchange Rates
Emergence of Indian and Chinese
Economies
Trade agreements (NAFTA, EU, ASEAN)
Creation WTO
43. Industry Analysis
6 Forces Analysis
Industry Competitors
Suppliers/Vendors
Customers/Clients
Potential New Entrants
Substitutes
Other Stakeholders
Role of Complementors
44. 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
45. Buyer Power (Channel and End
Consumer)
Buyer volume and information
Brand identity
Price sensitivity
Threat of backward integration
Product differentiation
Substitutes
46. Supplier Power
Supplier concentration
Differentiation of inputs
Switching costs
Threat of forward integration
Cost relative to total purchases in
industry
47. Substitutes
Switching costs
Buyer inclination to substitute
Variety of substitutes
Price-performance tradeoff of
substitutes
Necessity for product or service
48. Degree of Rivalry
Exit barriers
Industry concentration
Fixed costs
Industry growth
Intermittent overcapacity
Switching costs
Brand identity
Diversity of rivals
Corporate stakes
50. 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 industry’s products
59. Strategic Management Model
Strategy Formulation
Where do we want to be?
Vision
Mission
Values
Goals
Objectives
60. 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
61. Goal Examples
Achieve excellence in the delivery of disaster
recovery and mitigation programs.
Professionally develop our employees as a
reflection of DAD’s 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.
64. OBJECTIVES
Add specificity beyond Goals
Answer the questions
What is to be accomplished?
When?
Should contain the SMART Elements
65. OBJECTIVES: SMART Model
Specific
Measurable
Aggressive but Attainable
Results-Oriented
Timeframe
66. 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. (P&G)
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. (Walgreen’s)
Reduce greenhouse gases by 10 percent
(from a 1990 bast) by 2010. (BP Amoco)
75. Parable of the Bamboo
It takes patience and discipline to develop and
empower people; in fact, it’s 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 results…How, 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.
78. 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
79. 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)
81. Work Action Plan Template
Sponsor: Completion Date
Organization:
n.n Goal
Outcome
n.n Objective
Measure
Task Description Team Lead Staff Hours Completion
Date
Plan-
Do-Check-Act
83. Why Measure?
Reactive Reasons
Government Intervention
Fewer Resources and Smaller Budgets
Increased Demand for Accountability
Mandated
84. 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
85. Measurement / Performance
How do we measure our progress?
5 Types of Measures
Input
Output
Outcome
Quality
Efficiency
86. 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
87. 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
88. 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
89. 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
90. EFFICIENCY Measure
Also known as productivity measures.
Reflect the cost of providing products or
services.
Examples:
Output/Input
Output/Time
Output/Cost
Outcome/Cost
91. 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
92. Developing Bench Strength
“Drill Down” Application
Sponsors, Team Leads, and Team
Members
Work Action Plan
“Project” Champion
Leadership Training
Leadership Conference Presentations