The Two “Ps”

1. The Two “Ps” P P

2. The Two “Ps” Product Process

3. Why are these birds well organized?

4. Is this typical of our organizational behavior?

5. “If you don’t know where you’re going, you will wind up somewhere else.” Yogi Berra

7. OVERALL PLAN STRATEGIC PLANNING AND MANAGEMENT WORKSHEET by R. Henry Migliore Professor of Strategic Planning and Management Northeastern State University, Broken Arrow 594-8178 hmigliore@aol.com

8. I. Purpose A. What is your vision, your reason for being, your mission, why you are needed, needs met in the community, scope of endeavor: nationwide, local, accountability, profit or nonprofit?

9. II. ENVIRONMENTAL ANALYSIS • What is the direction of your industry, your • SIC code? • Who are your primary competitors? • What are international, national and local • statistics as they relate to your business; • intrest ratios, unemployment, etc? • D. Who are your primary customers?

10. III. STRENGTHS & WEAKNESSES • Human Resources/People • Facilities/Equipment • Patients/Resources Natural • Financial • Other

11. IV. ASSUMPTIONS • You Have No Control Over • Extend Environmental Analysis • Usually External • 1. • 2. • 3.

12. V. OBJECTIVES Specific, time frame, measurable in key result areas Key Result/Objectives/Targets Area • Sales/Total Revenue/Size • Market Share • Return; ROA, ROS, ROI Objectives Last year This year Next Year Five Year

13. V. OBJECTIVES Specific, time frame, measurable in key result areas Key Result/Objectives/Targets Area • Quality/Customer Service • Human Resources/People • a. Turnover Rate • b. Total Work Force • c. Training Hours/Employees • d. Safety • Productivity • Public Responsibility/Ethics • Other Objectives Last year This year Next Year Five Year

14. VI. STRATEGY (General Overall Strategies) • Thinking Stage • Where and How to Commit Resources • Timing • What Needs to be Done to Achieve Objectives • 1. Sales/Total Revenue • 2. Market Share • 3. Return; ROA, ROS, ROI • 4. Some Measure of Efficiency and/or Productivity

15. VI. STRATEGY (General Overall Strategies) • Quality/Customer Service • People Training/Human Resources/Moral • Public Professional Responsibility • Other Key Strategies

16. Now for each objective, use this form to develop specific objectives, strategy and action. Key Result Area Objective Strategy to achieve objective 1. 2. 3. What do I have to do to make it happen: 1. 2. 3.

17. VII. OPERATIONAL PLAN • Getting Work Accomplished/What Must Be Done in Short Term • Develop Overall Budget and Support Budgets to Accomplish • Overall Plan. How much is needed during operational year to • accomplish objectives? • Overall Budget $______________ • Marketing Budget $______________ • Production Budget $______________ • HR Budget $____________ • Staff Support Budgets $____________ • C. Capital Budget is Revised and Developed Yearly

18. VIII. REWARD/PERFORMANCE APPRAISAL • What team and individual review/reward system/bonus • salary needed • Review of Performance/Schedule overall and support • review dates

19. ISSUES/PROBLEMS • Major • Minor X. ANALYSIS A. How do you measure cultures

20. XI. ALTERNATIVE SOLUTIONS • List of Alternatives • 1. • 2. • 3. • Pros/Cons of each – problems/opportunities associated with • each • 1. • 2. • 3.

21. XII. RECOMMENDED COURSE OF ACTION • Alternative Selected and Why It Was Selected • Expected Benefit of This Recommendation • What Effect Will This Recommendation Have on • Performance Income and Balance Sheet Statements

22. STRATEGIC LONG RANGE PLANNING PROCESS 2 3 Strengths and Weaknesses 4 Assumptions 1 Purpose or Mission Environmental Analysis 5 6 7 8 Evaluation and Control Operational Plans Objetives Objectives Strategy Performance Appraisal and Reward

39. PROBLEM • MAJOR • MINOR

40. ANALYSIS • Production • Marketing • Human Resource • R&D • Financial

41. ALTERNATIVES • Usually three • Feasibility Study

42. RECOMMENDATIONS Best course of action under circumstances

43. PHEASANT HUNT(EXAMPLE) SYMPTOMS • Fever • Weak • Clammy • Laptosplaosis • Attack real problem, not symptoms REAL PROBLEM MAJOR POINT

44. SYMPTOMSWHAT IS LIKELY THE PROBLEM • Headaches • Fever • Sore muscles If you have the flu Virus • Arguments • Unfaithful partner • Abuse In an unhappy marriage Communication/Time An unruly child in a kindergarten class • 1. Lack of attention on • assignments • Making noise • Starting fights Lack of attention at home

45. SYMPTOMSWHAT IS LIKELY THE PROBLEM An unhappy/unproductive employee • Lazy • Missed days/tardy • Injuries No recognition Lack of self-esteem

46. SYMPTOMSWHAT IS LIKELY THE PROBLEM A Business Losing money. • Loss of market share • Poor quality/service • Drop revenue • Poor public image • Turnover of employees • High cost sportage • Unhappy people/lack of • pride • Facilities run down • Poor cash position • High inventory • Running at less plant • capacity Lack of strategic direction Lost track of customer needs. Wrong size in industry. Not operating bottom of long run cost curve. Not aimed at right market niche. Not using firm’s competitive advantage/strengths. Lack of driving force/strength of company. Improper merger business partners. External Factors/new laws.

47. SYMPTOMSWHAT IS LIKELY THE PROBLEM Company expanding, gaining market share,profitable • Overworked executives • Confusion at all levels • Lack of coordination • Poor communication • Plan not in writing • Constant reorganization • Poor organizaition chart • Growth with no plan • Chasing the market • Lack in training

48. SYMPTOMSWHAT IS LIKELY THE PROBLEM A company staying at the same size • Lack of excitement in Culture • Losing market share • Low profits compared to • industry • 4. Take-over from unfriendly • buyer Could get left behind industry change

49. Perceived Problem: Late delivery to customer, low productivity, quality problems, machine repair costs high confusion. Symptoms: Why (1) Rush jobs, too many change overs Why (2) Why rush jobs/change overs Why (3) Not enough time Why (5) Take 7-14 days to get customer orders into production control from marketing

50. Real Problem: Why it takes 7-14 days for sales paperwork to get order into plant and/or production schedule. Alternatives: 1. Leave as is 2. Buy lap-top computers: train sales people 3. Go 100% to manufacturing representative