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8/7/2019 Copley Company_By.Era
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Strategic Planning
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` Rohit Chandnani 15
` Nikhil Chandra 16
` Samadhan Damdhar 20
` Joanne DSouza 26
` Umakant 27
` Vineet Dubey 28
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`Manufacturerofcutting tools and other industrial parts
` Established in 1919
` Rapid progress in 1960 and 1970
` 8 Divisions with considerable autonomy
` Initiated formal planning in 1977
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KEY EVENT KEY IMPACT/EFFECT
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Russel Wilde initiates
Formal Planning
Growth throughM&A
Objectives & Potential
Stanley Burton asks for
10 yrfinancial forecast(ROI , Sales, Profit,
Cash Flow)
Analysis useful as
indicated large cashflows, Mature markets &
cyclicalsensitivity.
DirectorofCorporate
Development-CharlesSagan, reports to Burton
Structural change.
Sagan concerned withGrowth through M&A.
Sagan begins reporting
toAlbert. Chairman,
Samuel Savage, asks for
5 yr sales forecast.
Structural change.
Sagan &Albert agree
Planning as way of life.
Unnecessary forecast.
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` No defined corporate goals
` Unnecessary voluminous data asked for
` Inconsistent leadership
` Planning Range 10 years: period too long
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Corporate Planning
Committee with Sagan
as ChiefCoordinator.
Weekly meetings to
define Process ofFormal Planning &
Corporate Goals
Guide move towards
formal planning.
Well represented
committee, insights of
technology, economictrends and finance.
Critical issues tackled.
Memofrom Albert to
division heads statingplan ofaction.
Survey divisional history
& attitude to aid in
preparing Provisional
Plans
Clear communication to
various divisionsexplaining need &future
course ofaction
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Visit to divisions to
introduce concept of
formal planning by Albert
& Sagan.
Divisions to submit 5-yrplans by Oct 1981.
Consistent Effort to
introduce concept.
Divisions to decide role
ofstaff in process &
format of5 yr- No cleardirections.
November -Planning
Review Meetings to
evaluate plans.December Planning
Response Meetings to
comment on plans.
MixedResponses.
Lack ofUniformity,
Lack ofConsistency in
attendance, Lack ofrepresentation from
other divisions.
Unable to effectively
mould attitudes.
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` Corporate Goals still not developed
` Formal Planning Structure beginning toform
` Timely communication
` Lack ofuniformity
` Unable to create a consensus
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Corporate Planning
moved up, Creation of
new stafffunctions,
Creation ofadditional
divisions, designations
Organizational
Changes that impacted
planning process- were
temporarily disruptive.
Numbers Orientation to
Strategic Concepts.
3 Phase Planning Cycle
Strategy Development,
Quantitative, Action.
Further Changes in
process,
Clear Communication
about planning cycle &
objectives ofprocess.
Completion ofPhase 1.
Business Downturn
Staffdepts to continue
planning process
Reduced efforts.
Discontinuation of
Cycle.
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` Corporate Goals still not defined
` Lack ofcommitment towards plans
` Uncoordinated structural changes
` Irrelevant tohave planning process in staffdepartments
before line departments
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Committee Inactive-
efforts toformulate
Corporate Goals.
Sagan working with
Albert, while planninginfluenced by Tyler.
Revised formats for
Product Group strategy
and review meetings.
Further changes in
leadership & structure
of planning activities.
No Goals defined.
Pre Meeting to explain
strategy & review
Product Line Study.
Presentation ofdivisional
plan.
New format to ensure
congruence in
planning. But strategy
revealed for the first time
in pre meeting
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Sagan working with
Albert, while planning
influenced by Tyler.
Revised formats for
Product Group strategyand review meetings.
Further changes in
leadership & structure of
planning activities.
Efforts toformulate
Corporate Goals.
Pre Meeting to explain
strategy & review
Product Line Study,
followed by divisional
plan presentation.
New format to ensure
congruence in
planning. But strategy
revealed for the first time
in pre meeting
2-day conference to
review divisional plans.
Goals formulated.
FINALLY!!!
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` Corporate Strategy communicated just before
presentation ofdivisional plans
` No goal congruence created
` Positive Indicators:
hMore precise data
hStructured format
hMore emphasis on analysis & discussion
hGradual shift to emphasis on Line Management
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7 NumberofYears where Goals were Undefined
4 NumberofPlans
4NumberofChanges in Structure
3 NumberofRevisions in Planning Process
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` Undefined Corporate Goals
` Redundant & Ineffective Data Collection
no answerhad yet been given to the
second question (what are the appropriate
Corporate Goals for Copley?)
Divisional Plans were seen as optimistic
extrapolations ofpast operating trends.
voluminous documentation required to
present a divisional strategy as one
reason forfailure to identify with the
planning output.
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` Inconsistencies in Processes
` Lack ofCommitment
i ision mana ers ha been lannin
to lar el satisfy the re uirements set by
the lannin staff& ha faile to become
committe
it eci e a ainst rocee in with the
uantitati e hase ori inally sche ule for
the fall
Short Term s. Lon Term
Goal Con ruence???
Data Orientation s. Quantitati e
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` Lack ofGoal Congruence
` Limited Focus on Line Functions
1982: Line Departments tofocus on
reviving business rather than formalplanning process
it decided against proceeding with
plans but recommended that staff
departments begin planning process by
analysing past trends & identifying
resources
Sagan vs. Tyler
Growth throughMergers &Acquisitions
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` Numerous Organisational Changes
Samuel K Savage
(Chairman of the Board)
Stanley Burton
(President)
Albert(Vice President)
Charles N Sagan(Director Corporate Development)
Tyler
(Cutting Tool Division Head)
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Samuel K Savage
(Chairman of the Board)
Albert
(President)
Tyler
(Vice President)
Charles N Sagan
(Director Corporate development)
Organization Structure 1982
Inclusion ofseven persons into new corporate executive Positions proved out tobe
disruptive to planning effort
Two VPs(Six Divisions)
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Samuel K Savage
(chair man of the Board)
Albert
(President)
Tyler
(Exec. Vice President)
Fred Fisher
(Director Corporate develo
B
(Division GM)
Organization Structure 1984
A
(Division GM)
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` Other Issues:
hUnprepared for Business Fluctuations
hFrequent Changes
hTime Consuming Efforts
hUnnecessary Paperwork
hUnclear Leadership
hProblems due toorganisational changes:
x Assimilating acquired company
x Organising split ofCutting Tools Division
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` Formulated organisational goals
` Reduced & precise data collection
` Encouraged discussion for evaluation ofplans
` Use ofstrategic analytical tools eg: SWOT
` Increased involvement of line departments
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ManagementControl
HumanResource
Management
OrganizationStructure
CultureStrategy Per formance
Formulated
corporate goals &
strategies based on
divisional plans
Developed a
schedule for
communicating &
evaluating plans
Organisational
Structure put in
place firmly
Ifprocesses are followed,organisation structure is
maintained and MCS
enforced Strategic
Planning can be a
success.
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Goal
Strategy
Policies
Implementation ofPolicies
Efficient and Effective
Performance ofIndividual Task
STRATEGY
FORMULATION
MANAGEMENT
CONTROL
TASK
CONTROL
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Corporate Goals
Strategic Planning
Budgeting
Controllability
Performance Measurement
SatisfactoryReward
Strategic ormulation
IfDissatisfactory
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Corporate Goals
Strategic Planning
Budgeting Per formance Measurement
SatisfactoryReward
Strategic Formulation
IfDissatisfactory
Divisional Goals
Should be developed by Top
Management along with
Divisional Heads
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` Written Descriptions ofOrganisational Goals &
Strategies
` Systematic & Process Oriented
` Less Paperwork, More Discussion &Analysis
`Developing
Alternatives rather than
Making Projections
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` Involvement ofLine Functions in Planning
` StaffFunctions as Catalysts &Advisors
` Commitment ofTop Management
` Clear Leadership & Organisational Heirarchy
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