stratergic planing

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Performance Management and Strategic Performance Management and Strategic Planning: OverviewPlanning: Overview

Definition and Purposes of Strategic PlanningLinking Performance Management to the

Strategic Plan– Strategic Planning – Developing Strategic Plans at the Unit Level– Job Descriptions– Individual and Team Performance

Building Support

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Strategic Planning: Definition Strategic Planning: Definition

• Process– Describe organization’s destination– Assess barriers– Select approaches for moving forward

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Strategic Planning: GoalStrategic Planning: Goal

• Allocate resources – to provide organization – with competitive advantage

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Strategic Planning: PurposesStrategic Planning: Purposes

Help define the organization’s identity Help organization prepare for the future Enhance ability to adapt to environmental

change Provide focus and allow for better

allocation of resources

(continued on next slide)

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Strategic Planning: PurposesStrategic Planning: Purposes

Produce an organizational culture of cooperation

Allow for the consideration of new options and opportunities

Provide employees with information to direct daily activities

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Strategic Planning : OverviewStrategic Planning : Overview

1. Environmental Analysis2. Mission3. Vision4. Goals5. Strategies

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Environmental AnalysisEnvironmental Analysis

Identifies external and internal trends• To understand broad industry issues• To make decisions using “big picture” context

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External trendsExternal trends

• Opportunities: – environmental characteristics that can help

the organization succeed

• Threats: – environmental characteristics that can

prevent the organization from being successful

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External trends – External trends – Factors to ConsiderFactors to Consider

• Economic• Political/legal • Social

• Technological• Competitors• Customers• Suppliers

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Internal trendsInternal trends

• Strengths: – internal characteristics that the organization

can use for its advantage• Weaknesses:

– internal characteristics that can hinder the success of the organization

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Internal trends – Internal trends – Factors to ConsiderFactors to Consider

• Organizational structure• Organizational culture• Politics• Processes• Size

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Gap AnalysisGap Analysis

Analyzes:External environment (opportunities and threats)

vis-à-vis

Internal environment(strengths and weaknesses)

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Gap analysis determines:Gap analysis determines:

Opportunity + Strength = Leverage

Opportunity + Weakness = Constraint

Threat + Strength = Vulnerability

Threat + Weakness = Problem

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Strategic Planning for the OrganizationStrategic Planning for the Organization

Environmental and Gap Analyses provide information for organizations to decide:Who they areWhat they do

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MissionMission

A good mission statement answers:Why does the organization exist?What is the scope of the organization’s activities?Who are the customers served?What are the products or services offered?

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Mission Statement contains:Mission Statement contains:

A. Information on organization’s Basic product/service to be offered Primary market/customer groups Unique benefits and advantages of

product/services Technology to be used Concern for survival through growth and

profitability

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Mission Statement Mission Statement maymay contain: contain:

B. Information on organization’s values and beliefs Managerial philosophy Public image sought by organization Self-concept of business adopted by

Employees Stockholders

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VisionVision

• Statement of future aspirations• Focuses attention on what is important• Provides context for evaluating

– Opportunities– Threats

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A Good Vision Statement is:A Good Vision Statement is:

BriefVerifiableBound by a TimelineCurrent

FocusedUnderstandableInspiringA stretch

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Purposes for Setting GoalsPurposes for Setting Goals

• Formalize expected achievements• Provide motivation• Provide tangible targets • Provide basis for good decisions• Provide basis for performance measurement

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StrategiesStrategies

• Create strategies or Game Plans or “How to” procedures to address issues of:– Growth– Survival– Turnaround– Stability– Innovation– Leadership

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How the HR Function contributes:How the HR Function contributes:

• Communicate knowledge of strategic plan• Provide knowledge of KSAs needed for

strategy implementation• Propose reward systems

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Strategic Plans at the Unit LevelStrategic Plans at the Unit Level

• Organization Mission statement, Vision statement, Goals, and Strategies

Must clearly align with

And be congruent with

• Every Unit Mission statement, Vision statement, Goals, and Strategies

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Alignment of Strategic Plan with Alignment of Strategic Plan with PerformancePerformance

Organization’s Strategic PlanMission, Vision, Goals, Strategies

Unit’s Strategic PlanMission, Vision, Goals,

StrategiesJob Description

Tasks, KSAs

Individual and Team PerformanceResults, Behaviors, Developmental Plan

Critical to involve all levels of management

Critical to involve all employees

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Job DescriptionsJob Descriptions

• Tasks and KSAs are congruent with Organization and Unit strategic plans

• Activities described support mission and vision of Organization and Unit

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Individual and Team PerformanceIndividual and Team Performance

Organization and Unit mission, vision, goals lead toPerformance management system, which

Motivates employees Aligns development plans with organization priorities

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Strategic Plan Strategic Plan Choices in PM System DesignChoices in PM System Design

• Criteria (Behavior vs. Results)• Participation (Low vs. High)• Temporal Dimension (Short Term vs. Long Term)• Level of Criteria (Individual vs. Team/Group)• System Orientation (Developmental vs.

Administrative)• Rewards (Pay for Performance vs. Tenure/Position)

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Building Support – Building Support – Answering “What’s In It for Me?”Answering “What’s In It for Me?”

• Top Management: – Help carry out vision

• All levels: – Involvement – Participation – Understanding