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Chapter 5 Leadership and Strategic Planning Leadership The ability to positively influence people and systems to have a meaningful impact and achieve results Strategic Planning

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Chapter 5

Leadership and Strategic Planning

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  • The ability to positively influence people and systems to have a meaningful impact and achieve results

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Strategic Planning

  • The process of envisioning an organization’s future and developing the necessary procedures and operations to achieve that future.

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The Baldrige “Leadership Triad”





Customer and

Market Focus

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Executive Leadership

  • Defining and communicating business directions

  • Ensuring that goals and expectations are met

  • Reviewing business performance and taking appropriate aciton

  • Creating an enjoyable work environment

  • Soliciting input and feedback from customers

  • Ensuring that employees are effective contributors

  • Motivating, inspiring, and energizing employees

  • Recognizing employee contributions

  • Providing honest feedback

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Core Leadership Skills

  • Vision

  • Empowerment

  • Intuition

  • Self-understanding

  • Value congruence

Dale Crownover, President, Texas Nameplate Co.

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Leading Practices - Leadership

  • Create a customer-focused strategic vision and clear quality values

  • Create and sustain leadership system and environment for empowerment, innovation, and organizational learning

  • Set high expectations and demonstrate personal commitment and involvement in quality

  • Integrate quality values into daily leadership and management and communicate extensively

  • Integrate public responsibilities and community support into business practices

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Leadership Theories

  • Trait approach

  • Behavioral approach

  • Contingency (situational) approach

  • Role approach

  • Emerging theories:

    • Attributional theory

    • Transactional theory

    • Transformational leadership theory

    • Substitutes for leadership theory

    • Emotional intelligence theory

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Setting or sharing a vision

Managing a change

Focusing on the customer

Dealing with individuals

Supporting teams and groups

Sharing information

Solving problems, making decisions

Managing business processes

Managing projects

Displaying technical skills

Managing time and resources

Taking responsibility

Taking initiative beyond job requirements

Handling emotions

Displaying professional ethics

Showing compassion

Making credible presentations

Zenger-Miller Leadership Competencies

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Leadership System

  • Refers to how decisions are made, communicated, and carried out at all levels; mechanisms for leadership development, self-examination, and improvement

  • Effectiveness of leadership system depends in part on its organizational structure

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Common Organizational Structure








Systems and support services

Executive steering committee


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Leadership and Public Responsibilities

  • Ethics

  • Health, safety, and environment

  • Community support

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Strategic Planning

“A strategy is a pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole.”

James Quinn

Formal strategy includes:

  • Goals to be achieved

  • Policies to guide or limit action

  • Action sequences, or programs,

    that accomplish the goals

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Tasks Accomplished by Strategic Planning

  • Understand important customer and operational requirements

  • Optimize use of resources and ensure bridging between short-term and longer-term requirements

  • Ensure that quality initiatives are understood at all organizational levels

  • Ensure that work organizations and structures will facilitate accomplishment of strategic plan

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Leading Practices - Strategic Planning

  • Active participation of top management, employees, customers, suppliers

  • Systematic planning systems for strategy development and deployment, including measurement, feedback, and review

  • Use of a variety of external and internal data

  • Align short-term action plans with long-term strategic objectives, communicate them, and track progress

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Strategic Planning Process

Reason for existence

Future intent

Attitudes and policies



Guiding Principles

Environmental assessment

Capabilities and risks

Broad statements of direction


Strategic Objectives

Things to change or improve

Action Plans


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  • Definition of products and services, markets, customer needs, and distinctive competencies

  • Solectron: “…to provide worldwide responsiveness to our customers by offering the highest quality, lowest total cost, customized, integrated, design, supply chain, and manufacturing solutions through long-term partnerships based on integrity and ethical business practices.”

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  • Where the organization is headed and what it intends to be

    • Brief and memorable - grab attention

    • Inspiring and challenging - creates excitement

    • Descriptive of an ideal state - provides guidance

    • Appealing to all stakeholders - employees can identify with

  • Solectron: “Be the best and continuously improve”

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Policy Deployment (Hoshin Kanri)

  • Top management vision leading to long-term objectives

  • Deployment through annual objectives and action plans

  • Negotiation for short-term objectives and resources (catchball)

  • Periodic reviews

See Figure 5.7!

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The Seven Management and Planning Tools

  • Affinity diagrams

  • Interrelationship digraphs

  • Tree diagrams

  • Matrix diagrams

  • Matrix data analysis

  • Process decision program charts

  • Arrow diagrams

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Leadership in the Baldrige Criteria

The LeadershipCategory examines how an organization’s senior leaders address values, directions, and performance expectations, as well as a focus on customers and other stakeholders, empowerment, innovation, and learning. Also examined is how the organization addresses its responsibilities to the public and supports its key communities.

1.1 Organizational Leadership

a. Senior Leadership Direction

b. Organizational Performance Review

1.2 Public Responsibility and Citizenship

a. Responsibilities to the Public

b. Support of Key Communities

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Strategic Planning in the Baldrige Criteria

The Strategic PlanningCategory examines how an organization develops strategic objectives and action plans. Also examined are how chosen strategic objectives and action plans are deployed and how progress is measured.

2.1 Strategy Development

a. Strategy Development Process

b. Strategic Objectives

2.2 Strategy Deployment

a. Action Plan Development and Deployment

b. Performance Projection