TMAN 680 class project
- 1. A PROPOSAL TOUSE STRATEGIC AND PERFORMANCE MANAGEMENT TOOLS TO MARKET VIRTUAL HUMAN RESOURCES SERVICES TO FIRMS PROVIDING TECHNOLOGY AND HUMAN CAPITAL INTENSIVE SERVICES* Robert Chan, TMAN 680 *Or, how we can monetize what we just learned without waiting for a degree…
- 2. Traditional marketing processesleave too much to chance A strategic and performance based process: • Targets resources and effort • Realizes competitive advantage • Integrates strategy with cultural & organizational development A STRATEGIC MANAGEMENT APPROACH TO SELLING STRATEGIC AND PERFORMANCE MANAGEMENT SERVICES This presentation is about using the tools of strategic and performance management to market bidding services to firms and provide strategic and virtual human resource management to firms.
- 3. •Clients: Small minoritybusinesses entering the Commerce Department's 8a set aside program • Providing technology services: Information Technology, Special Studies & Analyses, Research & Development, Professional Services •Methodology: Consultative approach (Gallessich, 1982) •Firm entering this market are often unprepared The market chosen is the federal contracting environment composed of large, technological and human capital intensive projects, e.g., specific NAICs codes, contracting for less than $13 million, i.e., to quality as a project for a small 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 open competition in 7 years. The path of least resistance is to allow the firm to be a pass-through for larger, more mature (but ineligible) firms and make a quick profit. The problem with this approach is that The organization remains immature and incapable of competing in open competition
- 4. •Technology projects areheavily dependant upon human capital and knowledge resources. •Entrepreneurs may have strength in one core area, but weaknesses in others. •Potential clients have deficits or gaps in one or more core competencies CLIENT PROFILES The connected The wannabes Underused contractors Underutilized credentials The following types of clients seek bidding assistance, strategic and performance management, and human relations management services The unprepared 8a graduates The brilliant without business skills Firms with underutilized staffs
- 5. THE PROSPECTING PROCESS Thetools of strategic and performance management are applied in 3 phases to: •Identify strategic opportunities which would benefit clients •Match clients to opportunities •Engage clients
- 6. Horizontal Integration Stage 1Operations Orientation: resolve deficits in core competencies by providing providing virtual human resource management (Lepak & Snell, 1998, Price, 2000, Strohmeier, 2007) and bidding services to establish a business base. Stage 2: Strategic Orientation: create multiple lines of business from core competencies integrated with overall mission & vision Vertical Integration Stage 3: Integrated Process Orientation: Align firm with customers, markets & innovation THE EVOLUTION OF PERFORMANCE MANAGEMENT Stage 1: Strategy for Organizational Entry: help newly minted 8a firms capitalize on strategic opportunities and provide virtual human resources to execute the contract. Stage 2: Ensure growth and sustainability by establishing and fine tuning basic business processes Stage 3:Prepare firm for open competition by consolidating its strategic competencies, key performance indicators, and streamlining its asset supply chain
- 7. LINKING STRATEGY TOPERFORMANCEA different aspect of performance is managed as the firm advances through growth stages 1-3 • Stage 1: Initially, the Balanced Scorecard (Kaplan & Norton, 1992) links the mission(s), strategies and outcomes to organizational performance. This is suitable for time based competition. • Stage 2: As the firm advances to growth stage 2 processes linked to quality 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 it considers risk management, integrated performance management, and a performance oriented culture. This is suitable for strategic competition or establishing and maintaining competitive advantage
- 8. A Balanced Scorecardstrategy map illustrates the pathways between strategies and each balanced scorecard perspective leading to the mission of resolving deficits in core competencies. ANNOTATED BALANCED SCORECARD STRATEGY MAP (KAPLAN & NORTON, 1992) Linkages between the Problem(s) , Service Portfolio of business processes to resolve them and organizational strategy elements and where outcomes are found in the product Mission(s): Resolve barriers to realizing Critical competencies Strategy: Form of services offered to reduce barrier to critical competency by functional area Outcome: Where problem resolved Intervention Strategies Strategy Map: Identify, Diagnose and Provide Strategic Capabilities for 8a Firms Lacking Depth Lacking Credentials Or Capacity Break Into New Markets FillStaffing Deficits FillProcess Deficits MonitizeAssets; Connected IndividualsOr Firms; Realize Opportunities/ Capabilities MatureFirms;Ex 8-AFirms Functional Element Addressed Finance Facilitate Business Development Process By Filling In Gaps In Capacity, Depth Or Credentials Marketing Establish Or Expand New Capabilities And Capacities Establish Or Expand New Capabilities And Capacities Focus On Strategic Opportunity Or Niche Develop Strategic Opportunity Or Niche Exploit Strategic Opportunity Or Niche Production Provide Knowledge, Technical Workers Create Process Alternatives Develop Process Develop Process Increase Utilization Technology Technology & Knowledge Transfer Technology & Knowledge Transfer Developmental Support Technology & Knowledge Transfer Increase Utilization Human Resources Provide Human Capital Process Creation & Engineering Development & Support Staffing Process Creation & Engineering Increase Utilization Bidding Element Addressed Technical Approach √ √ Management Plan √ √ √ History & Credentials √ √
- 9. The market developswith each procurement, regardless of which firm wins the bid. • Small Business Utilization Specialists (CFE, 1996) become familiar with firm capacities • Bidding firms fine tune (at least on paper) their processes, − Develop valuable relationships and connections − Enhance their knowledge of client/agency interests and future directions. The following table illustrates these interfaces by deficiency, performance dimension, i.e., financial, customer and value, internal and learning and growth views, and specific key performance indicator (David, 2007). CRITICAL SUCCESS FACTORS Mission(s): Resolve barriers to realizing Critical competencies Key Performance indicators Interface between Mission, Problem elements and Organizational Performance, by Financial, Customer & Value, Internal and Learning and Growth Perspectives
- 10. SUMMARY Proposed is aprospecting approach to identifying and engaging new clients in need of strategy and performance management services. Initially, clients are identified and engaged by providing virtual human resource management to fill deficits in firm competence to bid projects. After contract award, services are added to enhance organizational growth and sustainability, including strategic management services to promote niche expertise and performance management services to ensure quality, effectiveness and efficiency. These services are expanded to ensure sustainability by providing risk management services.
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