Strategic Planning and Total Quality Implementation

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Chapter 11:
Strategic Planning and
Total Quality Implementation

Strategic Planning
* Is the process by which the members of an organization envision its future and develop necessary procedures and operations to carry out that vision. Quality as Strategy
* A strategy is a pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole. * Formal Strategies:
1. Goals to be achieved,
2. Policies that guide or limit action, and
3. Action sequences, programs, that accomplish the goals. *The essence of strategy is to build a posture that is so strong in selective ways the organization can achieve its goals despite unforeseeable external forces that may arise. * Focus of business strategy:

1.Finance
2. Marketing

Strategic Planning and the Baldridge Award
* The Baldridge Award recognizes the importance of integrating total quality principles with overall business planning. * The special role of strategic planning is to align work process with the company strategic directions, thereby ensuring that improvement and learning reinforce company priorities. * The Strategic Planning category examines how organizations: * Plan for the long term, and understand the key influences , risks, challenges, and other requirements that might affect the organization’s future opportunities and directions. * Project the future competitive environment to help detect and reduce competitive threats, shorten reaction time, and identify opportunities. * Develop action plans and deploy resources.

* Ensure that the deployment will be effective.

The Strategic Management Process
* Consists of two (2) parts:
1.Formulation
2.Implementation
* Strategy Formulation:
* Consists of defining the mission of the organization- the concept of the business and the vision of where it is headed; setting objectives-translating the mission into specific performance objectives; defining strategy. * Implementation:

* Focuses on executing the strategy effectively and efficiently, as well as on evaluating performance and making corrective adjustments when necessary.

Strategy Development
* Mission
* (of a firm) Defines its reason for existence
* Guides the development of strategies by different groups within the firm. * Establishes the context within which daily operating decisions are made, and it sets limits on available strategic options. * It helps to make trade-offs among the various performance measures and between short- and long-term goals. Ex: “We will provide products of superior quality and value that improve the lives of the world’s consumers.” * Vision

* Describes where the organization is headed and what it intends to be. Ex : “Be the best and continuously improve.”
Strategy Development
* Refers to a company’s approach, formal or informal, for making or guiding business decisions, resource allocations, and company-wide management. * Might include new products, services, and markets; revenue growth; cost reduction; or global alliances. * They might be directed toward making the company a preferred supplier, a low-cost producer, or market innovator. Action Plans

* Derive from strategy and clearly describe the things that need to be done, human resource plans and support, performance measurers and indicators, and resource deployment. Strategy Implementation

* Hoshin Planning
- Top management requires a method to ensure that their plans and strategies are successfully executed within the organization. * “Hoshin”
- means policy or policy deployment
* Policy Deployment
- is a systems approach to managing change in critical business processes.
- it emphasizes organization-wide planning and setting of priorities, providing resources to meet objectives, and measuring...
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