1st Edition
The Organizational Master Plan Handbook A Catalyst for Performance Planning and Results
Written for organizational leaders, planners, facilitators, and consultants, this book defines how the four different planning activities used to manage and improve an organization should be merged to maximize effectiveness. Stating that the four plans for organization improvement are the business plan, strategic business plan, strategic improvement plan, and operating plan, it defines each and explains how to link them together to reduce cost and cycle times. The text incorporates sufficient flexibility so readers can adapt and revise, based on changing business needs and marketplace opportunities.
Overview of the Problem
Organizational Plans
Terms
Parts of the Organizational Master Plan
The Organizational Alignment Cycle
Policy Deployment (Hoshin Kanri)
What’s in an Effective Planning Process?
Implementers as Planners
The Customer Is King
How to Get Customer Requirements
Focus Groups
In-Depth Interviews (IDIs)
Observational Interviews
Projective Testing
Leading-Edge Groups
Surveys
Understanding Your Customer’s Interface
Example of Customer-Focused CEO
Market Focus
Organizational Master Plan Drivers
The Organizational Master Plan
Introduction to Strategic Planning
The Organizational Master Plan
Setting Direction
Defining Expectations (Measurements)
Defining Actions
Summary
Change Management as Part of the Organizational Master Plan
Implementation History Assessment
Trend Analysis
Trend Outcomes
Trend Implementation Challenges
Major Trends Affecting the Organizational
Master Planning
The Business Planning Process
Component 1: Appraising Your Current Position
Component 2: A Strategic Vision Is the Core of Your Business Plan
Defining Strategic Vision: The Core of the Business Plan
The Role of the Quality Policy and Quality System
What Do I Need to Measure?
Designing Your Organization’s Quality System
The Business Case for Quality
Managing Your Organization’s Supply Chain
Component 3: Think Competitively throughout Your Plan
Market Segmentation
Consumer Analysis
Component 4: The Operating Plan as a Production System
Component 5: A Well-Thought-Out Financial Plan Business Plan Pitfalls
Business Plan Software: Pros and Cons
Outline of a Typical Business Plan
The Strategic Business Planning Process
Activity 1: Define the Strategy Scope and Time Frames
Planning Tool 1: Organizational Planning Analysis
Activity 2: Define the Assumptions
Activity 3: Review the Mission, Vision, and Value Statements
Reviewing the Mission Statement
Review the Long-Range Vision Statement
Review the Value Statement
Activity 4: Define the Short-Term Vision
Activity 5: Define Core Competencies and Capabilities
Activity 6: Risk Analysis
Activity 7: Critical Success Factors
Activity 8: Setting Objectives and Goals
Organizational Objectives
Performance Goals
Activity 9: Developing Strategies
Defining Actions
Activity 10: Develop Tactics for Each Strategy
Summary
Strategic Improvement Plan
Strategic Business Plans versus Strategic Improvement Plans
Why Do You Need a Strategic Improvement Plan?
What Creates Your Organization’s Culture?
Planning and the Learning Organization Developing a Strategic Improvement Plan
Phase I: Assessment of the Organization
Phase II: Develop Vision Statements for Each of the KBDs
Phase III: Develop a Set of Performance Goals
Phase IV: Defining Desired Behaviors
Phase V: Preparing Three- to Five-Year Improvement Plans for Each of the Vision Statements
Assessment of Today’s Personalities
How Do You Change an Organization’s Personality?
Key Business Drivers/Controllable Factors
Preparing Key Business Driver Vision Statements
Key Change Area: Management Support/Leadership
Organized Labor Involvement
Stakeholder Involvement
Preparing the Final Vision Statements
Setting Performance Improvement Goals
Desired Behavior and Habit Patterns
Improvement Plans for Each KBD
Factors Impacting the KBD Improvement Plans
Difference between Planning and Problem Solving
Developing Individual KBD
The Strategic Improvement Plan Checklist
Making the Improvement Process Work
Summary of Strategic Improvement Plan
Developing the Strategic Plan
Creating the Strategic Plan
Summary
The Annual Operating Plan
Prologue
Preparing the Annual Operating Plan
Activity 1: Define Annual Operating Plan Ground Rules and Assumptions
Assessing Your Current Position
Identification of Annual Performance Goals
Attainable Goals
Activity 2: Prepare Proposed Resource Request
Activity 3: Present Proposed Resource Request to the Annual Operating Plan Review Committee
Activity 4: Present the Resource Request and Projected Incomes to the Executive Team
Activity 5: Revise the Resource Request Based upon the Executive Team Input
Activity 6: Review and Approve the Revised Resource Request by the Executive Team
Activity 7: Present the Annual Operating Plan to the Board of Directors and Get Its Approval
Activity 8: Send Approved Related Parts of the Annual Operating Plan to Individual Departments
Activity 9: Prepare Individual Performance Plans (IPI) for the Employees
How to Develop the Annual Operating Plan for a Small Organization
Three Characteristics of an Effective Annual Operating Plan
Example of a Departmental Annual Operating
Plan Template
Summary
Epilogue
Organizational Master Plan Summary
Talk
Training
Time
Tools
Teamwork
Traceability
Communicating the Organization’s Master Plan
Develop the Format, Content, and Plan Structure
Implementation Issues
Summing It All Up
Appendix A: Definitions and Abbreviations
Appendix B: Improvement Tools
Appendix C: Problem Analysis Cycle
Summary
Index
Biography
H. James Harrington, Frank Voehl
Harrington and Voehl present the most comprehensive and effective approach to optimizing an organization’s performance developed to date. It is must reading for those organizations seeking to prove maximum value to all stakeholders.
—Tang Xiaofen, President of the Shanghai Association for Quality & President of the Shanghai Academy of Quality ManagementCompulsory reading for all leaders looking to maximize efficiency and effectiveness while navigating business in this risky global economy.
—Acn. Shan Ruprai President APQO, National Chairman Australian Organisation for Quality, and Chairman AIBI Australia