Part 2

CMQ Preparatory Program
Part 2
Strategic Plan Development and Deployment
At the end of the session you will be able to

Describe basic elements of Strategic planning models
Analyse risk factor that can influence strategic plans
Analyse organizations strength, weakness, opportunities and threats
r
and develop and prioritize action plans
Understand how to get the plans deployed, acted on and measured
12-Mar-16 2
Part 2 : Strategic Plan Development and
Deployment
A. Strategic Planning Models
B. Business Environment Analysis
C. Strategic Plan Deployment
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Strategic Planning Models
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Strategy
The framework which guides those choices that determine the nature and
direction of an organization. -Tregoe and Zimmerman
A critical factor in strategic planning is quality.

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Deciding what not to do is as important

as deciding what to do.
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A strategic plan provides a road map of how to get to specific

targets and directs everyone in the organization and directs
everyone in the organization to work to reach those same targets.
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Internal and External Forces
External Forces Customer

Technology
requirements
Corporate
Culture
Internal
Resources
Forces Finances
Worker
Skills Accrediting and
Competitors regulatory
agencies
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Traditional Strategic Planning
What an organization strives to Formulation

Strategic
become?
Planning
How the organization will

Tactical Planning implement the strategic plan?
Implementation
Action oriented plan of who

Operational Planning performs what tasks?
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Traditional Strategic Planning
Strategic Planning
Plan for Planning Tactical Planning

Conducting environmental Operational Planning
Scans
Visualize the future Implement action plans
Develop Mission Uncover gaps and needs
Prepare Tactical action Track and measure
statement progress
Establish Future goals plans
Evaluate results
Potential short fall: Due to lack of committed deployment may end up unfulfilled.
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Hoshin Planning
Hoshin is the solution to the pitfall of tradition strategic planning.
Hoshin Planning completes the completes the P-D-C-A cycle.
i.e., From planning to Deployment to planning again
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Hoshin Kanri
Hoshin: Compass Needle or True North ;loosely translates to Target or Policy
Kanri: Management or Deployment
Hoshin Planning aligns

objectives and targets
throughout the
organization
Eliminates
Silos of Making
Numbers
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Steps of Hoshin Planning

Establish
PLANNING Environmental
Organizational Vision
& Organizational
Strategic Goals SWOT Analysis Scan
Develop Multi year Breakthrough

Objectives and Improvement Business Logic
Priorities Review
DEPLOY Top Level means Matrix
Deploy the plan Catchball
Action Plans
Lean SS
REVIEW
Implementation CAP
AnnualReview
Review Critical Step
Vision and Mission

Vision:
to express what the organization would like to accomplish and/or where it would
like to be in the future.
Brief, Inspire and Challenge , Describe an ideal condition
Mission
Why it exists and what it does to achieve its vision
core purpose of being, in terms of the accomplishments needed that will result in
realization of the vision.
e.g., A charity Organization working with poor.
Vision:A world without poverty
Mission:Providing jobs for the homeless and unemployed
12-Mar-16 A mission is for todays goals and a vision is for tomorrow's goals 14
Example of vision & mission
Vision:
Toyota will lead the way to the future of mobility , enriching lives
around the world, with the safest and most responsible ways of
moving people.
Mission:
Supplying the range of vehicles, parts, accessories and services to
meet the requirements
Ensuring product are of outstanding quality , value for instill pride of
ownership.
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Vision/Mission
There will be a personal computer on every desk running Microsoft
software.
Vision
To provide the fast food customer food prepared in the same high
quality manner world wide that is tasty reasonable priced & delivered
consistently in a low key dcor and friendly atmosphere.
Mission
To be earth's most customer centric company; to build a place where

people can come to find and discover anything they might want to
buy online." vision
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Strategic Objectives & Means Matrix

Keeping vision and mission as the foundation establish strategic
goals and from the goals establish multiyear strategic
objectives SMART WAY Objectives.
Means Matrix : S : Specific
Using the goals and M : Measurable
objectives , Means Matrix A : Achievable and Challenging
is prepared . R : Realistic
Answers the How question T : Time Bound
Basis of measurement
W : Worth Doing
Resources required A : Assign Responsibility
Responsible persons Y : Yield desired returns
Gantt Chart
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Hoshin Matrix Example

Hoshin_Policy_Deployment_Templates.xlsx
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Deploying the Plan

The plan is deployed horizontally and downward after
review and adjustments are complete.
The process of moving the plan up and down and across
functions to reach consensus is called as Catch ball
process.
Action Plans are developed, implemented and continuously
monitored and reviewed.
By the end of the third quarter , current /previous year
implementation is reviewed and Hoshin planning begins
new for the upcoming year.
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Advantages and Disadvantages
Pros CONS
Everyone know how their Fails due to lack of top
efforts fit . management support
Enable all planners to Time consuming
learn , improve the May not be succeed if the
process and achieve the consensus is not arrived
organizational goals.
Resolve barriers through
catch ball process.
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Scenario Planning
Disciplined method for imagining possible futures that
companies have applied to a great range of issues .
Uses three macro scenarios
Good Future
Bad Future
Wild Card
Once scenarios are visualized , alternate strategic plans
can be developed.
Slashes Over confidence and tunnel vision.
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Barriers to Successful Strategic Planning

Ambiguous terminologies
Poor reward and recognition
systems
Unaligned departmental or
functional goals
Top Management fail to
walk the talk
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Management pitfalls complied by Steiner.

Delegating planning function to planner.
Engrossed in current problems.
Fail to develop company goals as a basis for long range plans.
Not involving major line personnel in planning.
Failure to use plans as standards to measure performance.
Failure to create organizational climate congenial to planning.
Injecting so much formality.
Separating planning from management process.
Fail to review departmental long range plans.
Making intuitive decisions.
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Business Environment
Analysis
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Business Environmental Analysis

Key input to strategic planning process.
Internal and External factors significantly impacts short term
performance and Long term viability.
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Components - Environment Analysis
BE Analysis
Financial Stability
External Internal Product/Service
Factors Factors realization
Customer/ Community
Organization Structure / Investor obligations
Societal changes Customer Base Core competency
Competition changes Supplier Base Technology
Economic changes Internal Capability Supplier relations
Regulatory changes
Technology Changes
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SWOT Analysis
.A systematic assessment of an
organization's internal and external
environment to identify attributes Areas you do well or
that affect its ability to achieve its advantages of your
Areas to be improved
organization
vision and to protect/improve its
competitive position.
Potential problems/risks
External factors that can build that your organization may
up your strength face
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SWOT Analysis
Strengths & Weaknesses Opportunities & Threats
Brand image, Competitors and new

Organizational entrants
leadership, Viability of virgin markets
Structure, Saturation of market
Financial capability, place
Capacity, Demographical changes
Products/ services, in the market place
Innovation(R&D), Customer/ supplier
partnerships
Assets & resources.
Economic situation
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SWOT- Example
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Market forces
Trends in the Market Place Information to Gather
Trends in the Industry Government subsidies
Competitor strategies Trade restrictions or tariffs
Changes to international monetary
exchange rates
Social concerns, demographic or
political changes,
Inflation, deflation, or changes in
lending rates
Market Expansion and Economic
cycles
Social or economic differences
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Sources of Information
Government Sources,
Newspapers/ Television,/The Internet,
Direct Marketing Ads,
Industry Groups Or Publications,
Trade Shows,
Customers And Suppliers, And
The Annual Financial Reports of Public Companies
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Competitive Analysis
Questions to ask when analyzing the competitors..
Who are they?
How many are they?
What is their size?
What are their alliances?
What are their challenges/risks?
How popular are they?
What are their weakness?
What is their reputation?
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Competitive Analysis
Analyze Competitor strategies, customer strategies and
supplier strategies
Competitiveness Of
Who Is Producing A New
Supplier In The Market
Product
Place
How They Market The
Customer Strategies Flexibility
Products
Willingness To Adapt
Alliances Cost of switching products
omer& Strategies Different Needs
Potential New Entrants Relationship of the
Knowledge Of Other
customer with the
Buyers
Competitor Strategies company
Purchasing group and Supplier Strategies
purchasing power
Market segment and
Customization requirement
Source of comparison
12-Mar-16 33
Benchmarking
Comparison of actual or planned
practices such as processes and
operations to those of
comparable organizations to
Identify best practices,
Generate ideas of improvement,
Provide basis for measuring
performance.
E.g., British Telecom has the same
Customer Satisfaction Survey process
as Brooklyn Union Gas.
C
12-Mar-16 Competitive comparison differs from benchmarking 34

Stakeholder Analysis
Stakeholders are Individuals, groups, or organizations who
will be directly or indirectly affected by an organization
carrying out its mission.
Customers End users Regulatory

Employees Unions organizations
Suppliers Accrediting Special
Share holders organizations interest groups
12-Mar-16 35
Stakeholder Analysis
Stakeholder assessment is to identify gaps between the
objectives and plans for the organization and the needs
and interests of the stakeholders and action taken to close
the gaps where feasible.
Stakeholder Key Goal / Objective Gaps to be
Group Needs/Interests /Plan addresses addressed
of stakeholders stakeholder
interest
Customer
Supplier
Shareholders
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Technology
Detect technology developments , assess the potential for
use in the organization and effectively implement those
technologies.
Technology includes
Communication technology
Product / service technology
Production / service process technology
Support systems technology
Hardware, software, storage media
12-Mar-16 37
Berry Guidelines in Using Technology

Should address behavioral changes
Should address real problem
Do not automate bad process
Users should gain more control rather than becoming
robots
Should fit the job: Latest or greatest does not matter
Should increase flexibility , customer service and
performance
12-Mar-16 38
Internal Capability analysis

Understand and analyse to formulate Strategic goals
Capabilities of the employees
Process capabilities such as R&D, facilities, equipments, supply
chain
Strength of geographic location
Certifications & Recognitions
Financial Stability
12-Mar-16 39
Legal & Regulatory factors

Legal and regulatory factors influences strategic plans
Legal factors relates to law and law making process and rules for litigation
Regulations are rules designed to control or govern behavior
Established by government or outside organizations
Legal Factors
Employment related laws and litigation
Product and service liability
Environment liability
Protection of intellectual property
Contract related liability pertaining to customer orders
Ramifications of Sarbanes-Oxley act
Antitrust laws
Trade protectionism
12-Mar-16 40
Strategic Plan Deployment
12-Mar-16 41
Tactical Plans
Action plans or operational plans or tactical plans is a mini
project plan which is short term (accomplishable within a
year)
Systematic approach to initiate actions and the follow up of
those action that closes the loop in achieving the
organization's strategy
12-Mar-16 42
Components of Action Plan

Project identification and Description
Date Project completion is needed
Link to the strategic objective or any mandates
Project Objectives
Scope of the Project
Deliverables
Project Measurement Criteria
Overall Approach
Estimate of Benefits versus costs
Assumptions
Resource estimates
Timeline and person responsible for steps to complete the project
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Leadership and Management

Successful deployment of strategic plans require
Strong Leadership
Diligent management Support
Personnel Involvement
Sustained Commitment
Can do attitude
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Resource Allocation
Before action plans are fully developed resource spread
sheet or matrix should be complete showing various types
of resources required against each of the objectives .
Responsibility matrix.png
Responsibility spread sheet.png
The revised master resource allocation plan will act as
resource baseline against which actual use of resources is
measured
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Deployment of Tactical level Plans

Ensure Horizontal and vertical alignment of plans and
integration at mid level and with functional management.
Conduct Walkabout meetings.
Group review of master means matrix in which each person
responsible for means displays men, machine, material, money
required using a flip chart paper.
Attendee walk about the room examining the postings and attach
sticky notes wherever conflict is seen.
Negotiation and trade offs takes place regarding the conflict and
unresolved conflicts are noted as issues to be resolved before
plans are deployed downwards
12-Mar-16 46
Deployment of Action Plans

In traditional strategic planning the planners move directly
from objectives to action plans and thus lacks commitment
to support and execute the plans.
The Hoshin Planning involves everyone in the organization
with the action planning for acceptance and integration
before the implementation of the plan can take place
through a catchball process.
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Catchball Process
Participative approach to decision-making in which information and ideas are
thrown and caught back and forth, up and down throughout the organization.
Action plans are prepared and sent back up the planning hierarchy for acceptance and
12-Mar-16
integration before the implementation of the plan can take place. 48
Organizational Performance Measurement

Whatever gets measured gets done.
Measurements for processes indicate the effectiveness of the
processes in delivering products/services relative to customer
satisfaction.
A metric should relate to an action to attain an objective.
E.g., inventory turns, cost saving from six sigma projects etc.,
Every process have two outputs

A valuable product or service to satisfy the customer.
12-Mar-16 49
Questions to ask
Why Measure? : Ensure success in reaching goals
What to measure? : Key Process Elements
Where to measure? : Where variation could occur
When to measure? : As often as necessary
Who should measure? : Person closest to the action
How many metrics? : As many as truly useful in the meeting
How to measure? : Consistently but unobtrusively as possible
12-Mar-16 50
Feedback Loops
Open Loop Closed Loop

Monitoring is continual
Have no feedback
Management by Facts
Management by Intuitions
Focus on measuring outputs
Focus on measuring controlling and determine control points
inputs to make adjustments
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Balance Scorecard
Balance score card is a
technique for measuring
organizational performance.
Balances Financial and Non
financial Measures. For e.g.,
Customer order processing
cycle time
Number of certified supplier s
Accuracy and completeness
of customer billing
Overall Product failure costs
12-Mar-16 52
Critical Success Factors

Critical success factor (CSF) is a management term for
an element that is necessary for an organization or project
to achieve its vision, mission, strategic goals and
objectives.
HR Management
For e.g., Labor Turnover (CSF)
Effective Distribution Reduce the labor turnover by
20% (Target)
Strong Brand Safety and Health Workplace
Innovative Product (CSF)
Reduce Workplace accidents by
Low Cost Manufacturing 10% (Target)
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Six factors affecting frequency of measurements

Purpose
Does the metric indicate a trend or control output ?
Cost
How much time / money is spent measuring?
Rate of Change
What is the maximum time between measurements ?
Degree of Control
Can an unfavorable change be corrected?
Consequences
What is the risk?
Baseline
Are there existing data on how the metric performs over time ?
12-Mar-16 54
Quality in Strategic Deployment

A quality function should support the strategic plan deployment by
Participating in strategic planning process
Promoting the communication of the strategic goals, vision, mission,
values and objectives
Formulate Quality Policy, defining quality management principles,
setting quality objectives
Ensuring that quality objectives are included in job descriptions and
that performance relative to those objectives is a performance
appraisal measure
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Quality in Strategic Deployment

A quality function should support the strategic plan deployment by
Ensuring that the voice of customer is addressed throughout the
strategy development and deployment
Periodically auditing to ensure that the organization's quality
practices meet the intent of published quality policies
Continually providing performance and environment feedback to the
organization's strategic planners, information that is pertinent to the
attainment of the organization's strategic goals and objectives.
Identify opportunities and initiating continual improvement efforts to
improve the strategic planning process and deployment of the plans
12-Mar-16 56
Quality in Strategic Development

Quality Policy Quality Principles Quality Objectives
A policy is a high Principles are Quality Objectives are
level overall plan fundamental beliefs set to specify what
embracing general and values. specific actions will be
goals, objectives and Basis for objective and taken within a given
acceptable practices shows the time period to achieve a
of an organization. organization's measurable quality
commitment to quality. outcome.
E.g., We will deliver
products and E.g., We believe in
honesty and mutual E.g., Errors in
services that meet or respect for our processing insurance
exceed customer customers and claims will be reduced
requirements on time employees. This forms from 150 per week to
and at competitive the basis for our 15 or less per week by
prices. shared prosperity. the end of 4th quarter
this year.
12-Mar-16 57
THANK YOU

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CMQ Preparatory Program

CMQ Preparatory Program

At the end of the session you will be able to

Strategic Planning Models

A critical factor in strategic planning is quality.

Deciding what not to do is as important

A strategic plan provides a road map of how to get to specific

Internal and External Forces

External Forces Customer

Traditional Strategic Planning

What an organization strives to Formulation

How the organization will

Action oriented plan of who

Traditional Strategic Planning

Plan for Planning Tactical Planning

Hoshin Planning aligns

Steps of Hoshin Planning

Develop Multi year Breakthrough

DEPLOY Top Level means Matrix

Deploy the plan Catchball

Vision and Mission

Example of vision & mission

To be earth's most customer centric company; to build a place where

Strategic Objectives & Means Matrix

Hoshin Matrix Example

Deploying the Plan

Advantages and Disadvantages

Barriers to Successful Strategic Planning

Management pitfalls complied by Steiner.

Business Environmental Analysis

Components - Environment Analysis

Strengths & Weaknesses Opportunities & Threats

Brand image, Competitors and new

12-Mar-16 Competitive comparison differs from benchmarking 34

Customers End users Regulatory

Berry Guidelines in Using Technology

Internal Capability analysis

Legal & Regulatory factors

Strategic Plan Deployment

Components of Action Plan

Leadership and Management

Deployment of Tactical level Plans

Deployment of Action Plans

Organizational Performance Measurement

Every process have two outputs

Open Loop Closed Loop

Critical Success Factors

Six factors affecting frequency of measurements

Quality in Strategic Deployment

Quality in Strategic Deployment

Quality in Strategic Development

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