STRATEGY AND

PERFORMANCE
EXCELLENCE
Fergie M. Palit-ang
■ Strategy
- Is the pattern of decisions that determines and reveals an
organization’s goals, policies and plans to meet the needs of
its stakeholders.

■ Strategic Planning
- Process of envisioning the organization’s future and
developing the necessary goals, objectives and action plans to
achieve that future.
The Scope of Strategic Planning

■ Strategy Development Processes

■ This model begins with gathering critical information about the organization and its environment,
developing a strategy, translating that strategy into specific action plans or projects, and reviewing
performance for improvement opportunities.
Strategy Development Processes
■ Mission
- Defines its reason for existence
- Answers the question “Why are we in business?”
- Establishes the context within which daily operating decisions are made and
sets limits on available strategic options
■ Vision
- Statement of the future that would not happen by itself
- It should be brief, focused, clear and inspirational to an organization’s
employees
- Must be consistent with the culture and values of the organization called
guiding principles
Environmental Assessment
■ The organization’s strengths, weaknesses, opportunities and threats
(SWOT)
■ Early indications of major shifts in technology, markets, customer
preferences, competition or the regulatory environment
■ Long-term organizational sustainability, including needed core
competencies and projections of future performance and competitors
or comparable organizations future performance
■ The ability to execute the strategic plan
The Baldrige Organizational Profile
■ The Baldrige Criteria provides a list of key questions called the organizational
profile.
- It addresses the basic characteristics of the organization, organizational
relationships, the competitive environment, the advantages an organization
has and the challenges that it faces, and its approach to performance
improvement.
■ Strategic challenges
- Pressures that exert a decisive influence on an organization’s likelihood of
future success.
- Driven by an organization’s future competitive position relative to other
providers of similar products or services.
Developing Strategies
■ Strategic planning teams use the result of these analyses to
develop strategies, objectives and action plans that address
strategic challenges and opportunities and balance the
needs of all stakeholders.
Developing Strategies
■ Strategies - broad statements that set the direction for the
organization to take in realizing its mission and vision.
■ Strategic objectives - are what an organization must change or
improve to remain or become competitive
- Set an organization’s long-term directions and guide resource allocation
decisions
■ Action plans - tings that an organization must do to achieve its
strategic objectives
- Includes details of resource commitments and time horizons for
accomplishment
Strategy Deployment
■ Involves developing specific action plans to achieve
strategic objectives, ensuring that adequate financial and
other resources are available to accomplish the action
plans, developing contingencies should circumstances
require a shift in plans and rapid execution of new plans,
aligning work unit, supplier or partner activities as
necessary and identifying performance measures for
tracking progress.
Strategy Deployment
■ Poor deployment often results from one of three reasons
1. Lack of alignment across the organization
2. Misallocation of resources.
3. Insufficient operational measures.
Hoshin Kanri (Policy Deployment)
■ “hoshin planning” or “pointing direction” in Japanese translation
■ Policy deployment or management by planning as reffered in the
United States
■ The idea is to point, or align the entire organization in a common
direction
■ Emphasizes organization-wide planning and setting of priorities,
provides resources to meet objectives and measures performance
as a basis for improving performance
Figure 2. The Policy Deployment Process
Linking Human Resource Plans and
Business Strategy
Strategic human resource plans often include one or more of the following:
■ Redesign of the work organization to increase empowerment and decision-
making or team-based participation;
■ Initiatives for promoting greater labor/management cooperation, such as
union partnerships;
■ Initiatives to foster knowledge sharing and organizational learning; and
■ Partnerships with educational institutions to help ensure the future supply of
well prepared employees
The Seven Management and Planning Tools
1. Affinity Diagram
- A tool for organizing a large number of ideas, opinions, and facts relating to a
broad problem or subject area
2. Interrelationship digraph
- A tool for identifying and exploring causal relationships among related
concepts or ideas
3. Tree Diagram
- A tool to map out the paths and tasks necessary to complete a specific
project or reach a specified goal
4. Matrix Diagram
- “Spreadsheets” that graphically display relationships between ideas,
activities or other dimensions in such a way as to provide logical connecting
points between each item
5. Matrix Data Anaysis
- A tool to take data and arrange them to display quantitative
relationships among variables to make them more easily understood
and analysed
6. Process Decision Program Chart
- A method for mapping out every conceivable event and contingency
that can occur when moving from a problem statement to possible
solutions
7. Arrow Diagram
- A tool for sequencing and scheduling project tasks
Figure 3. Affinity Diagram for MicroTech
Figure 4. Interrelationship Digraph of MicroTech’s
Strategic Factors
Figure 5. Tree Diagram of MicroTech Goals and
Strategies
Figure 6. Matrix Diagram for MicroTech’s Goals and
Strategies
Figure 7. Matrix Data Analysis of Customer
Requirements for MicroTech
Organizational Design for Performance
Excellence
Several factors having to do with the context of the organization affect how work is
organized. They include the following:
1. Operational and organizational guidelines
2. Management style
3. Customer influences
4. Size
5. Diversity and complexity of product line
6. Stability of the product line
7. Financial stability
8. Availability of personnel
Figure 8. Customer-Focused Team-Based
Organizational Chart
Core Competencies and Strategic Work
System Design
■ Work system - how the work of an organization is accomplished
- Coordinates the internal work processes and the external resources
necessary to develop, produce, and deliver products and services to
customers and to succeed in the market place.
■ Core competencies - organization’s area of greatest expertise that provide a
sustainable competitive advantage in the marketplace or service
environment.
■ Outsourcing - practice of transferring the operations of a business function
to an outside supplier
■ Vertical integration - opposite of outsourcing by which certain business
function are acquired and consolidated within a firm
Gary Hamel and C.K Prahalad suggested that a core
competency meets three conditions

1. It contributes significantly to customer benefits