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Performance Management and

Strategic Planning

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Overview

Definition and Purposes of StrategicPlanning

Linking 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

Process

Describe organizations

destinationAssess barriers

Select approaches formoving forward

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Strategic Planning: Goal

Allocate resources to provideorganization with competitive

advantage

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Strategic Planning: Purposes

Help define the organizationsidentity

Help organization prepare for

the future Enhance ability to adapt to

environmental change

Provide focus and allow forbetter allocation of resources

(continued on next slide)

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Strategic Planning: Purposes

Produce an organizationalculture of cooperation

Allow for the consideration ofnew options and opportunities

Provide employees with

information to direct dailyactivities

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Strategic Planning : Overview

1. Environmental Analysis

2. Mission

3. Vision4. Goals

5.

Strategies

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Environmental Analysis

Identifies external and internaltrends

To understand broad industryissues

To make decisions using big

picture context

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External trends

Opportunities:environmental characteristics

that can help the organization

succeed

Threats:

environmental characteristicsthat can prevent theorganization from beingsuccessful

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External trends

Factors to Consider

Economic

Political/Legal

Social

Technological

Competitors

Customers

Suppliers

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Internal trends

Strengths:

internal characteristics that the

organization can use for itsadvantage

Weaknesses:

internal characteristics that canhinder the success of theorganization

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Internal trends

Factors to Consider

Organizational structure

Organizational culture Politics

Processes

Size

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Gap Analysis

Analyzes:

External environment

(opportunities and threats)vis--vis

Internal environment

(strengths and weaknesses)

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Gap analysis determines:Opportunity +Strength =

Leverage

Opportunity + Weakness =Constraint

Threat + Strength =Vulnerability

Threat + Weakness = Problem

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Strategic Planning for the

Organization

Environmental and GapAnalyses provide information

for organizations to decide:Who they are

What they do

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Mission

A good missionstatement answers:

Why does the organization exist?

What is the scope of theorganizations activities?

Who are the customers served?

What are the products or servicesoffered?

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Mission Statement contains:

Information on organizations

Basic product/service to be offered

Primary market/customer groups

Unique benefits and advantages ofproduct/services

Technology to be used

Concern for survival throughgrowth and profitability

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Mission Statement may contain:

Information on organizations valuesand beliefs

Managerial philosophy

Public image sought byorganization

Self-concept of business adoptedby

Employees

Stockholders

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Vision

Statement of future aspirations

Focuses attention on what is

important Provides context for evaluating

Opportunities

Threats

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A Good Vision Statement:8 Characteristics

1. Brief

2. Verifiable3. Bound by a Timeline

4. Current

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A Good Vision Statement:

8 Characteristics(continued)

5. Focused

6. Understandable7. Inspiring

8. A stretch

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Purposes for Setting Goals

Formalize expectedachievements

Provide motivation

Provide tangible targets

Provide basis for good decisions

Provide basis for performancemeasurement

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Strategies

Create strategies or Game Plans orHow to procedures to addressissues of:

Growth Survival

Turnaround

Stability

Innovation

Leadership

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How the HR Function

contributes:

Communicate knowledge ofstrategic plan

Provide knowledge of KSAsneeded for strategyimplementation

Propose reward systems

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Strategic Plans at the Unit Level

Organization Missionstatement, Vision statement,

Goals, and StrategiesMust clearly align with

And be congruent with

EveryUnit Mission statement,Vision statement, Goals, andStrategies

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Alignment of Strategic Plan with

Performance

Organizations Strategic PlanMission, Vision, Goals, Strategies

Units Strategic PlanMission, Vision, Goals,

StrategiesJob Description

Tasks, KSAs

Individual and Team Performance

Results, Behaviors, Developmental Plan

Critical to involve alllevels of management

Critical to involve all employees

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Job Descriptions

Tasks and KSAs arecongruent with Organization

and Unit strategic plans Activities described support

mission and vision of

Organization and Unit

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Individual and Team

Performance

Organization and Unit mission,vision, goals lead to

Performance management system,which

Motivates employees

Aligns development plans with

organization priorities

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Strategic Plan

6 Choices in PM System Design

1. Criteria (Behavior vs. Results)

2. Participation (Low vs. High)

3. Temporal Dimension (ShortTerm vs. Long Term)

Strategic Plan

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Strategic Plan

6 Choices in PM System Design

(continued)4. Level of Criteria (Individual vs.Team/Group)

5. System Orientation(Developmental vs.Administrative)

6. Rewards (Pay for Performancevs. Tenure/Position)

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Building SupportAnswering Whats In It for Me?

Top Management:

Help carry out vision

All levels:

Involvement

Participation

Understanding

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Quick Review

Definition and Purposes of StrategicPlanning

Linking Performance Management to

the Strategic Plan Strategic Planning

Developing Strategic Plans at the Unit Level

Job Descriptions

Individual and Team Performance

Building Support