The Two “Ps”

P

P

The Two “Ps”

Product

Process

Why arethese birds well organized?

Is this typical ofour organizationalbehavior?

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

Yogi Berra

OVERALL PLANSTRATEGIC PLANNING AND MANAGEMENT

WORKSHEET

byR. Henry Migliore

Professor of Strategic Planning and ManagementNortheastern State University, Broken Arrow

594-8178hmigliore@aol.com

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?

II. ENVIRONMENTAL ANALYSIS

A. What is the direction of your industry, your SIC code?

B. Who are your primary competitors?

C. What are international, national and local statistics as they relate to your business; intrest ratios, unemployment, etc?

D. Who are your primary customers?

III. STRENGTHS & WEAKNESSES

A. Human Resources/PeopleB. Facilities/EquipmentC. Patients/Resources NaturalD. FinancialE. Other

IV. ASSUMPTIONS

A. You Have No Control Over

B. Extend Environmental Analysis

C. Usually External

1.

2.

3.

V. OBJECTIVESSpecific, time frame, measurable in key result areas

Key Result/Objectives/TargetsArea

1. Sales/Total Revenue/Size

2. Market Share

3. Return; ROA, ROS, ROI

Objectives

Last year This year Next Year Five Year

V. OBJECTIVESSpecific, time frame, measurable in key result areas

Key Result/Objectives/TargetsArea

4. Quality/Customer Service

5. Human Resources/People a. Turnover Rate b. Total Work Force c. Training Hours/Employees d. Safety

6. Productivity

7. Public Responsibility/Ethics

8. Other

Objectives

Last year This year Next Year Five Year

VI. STRATEGY (General Overall Strategies)

A. Thinking Stage

B. Where and How to Commit Resources

C. Timing

D. 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

VI. STRATEGY (General Overall Strategies)

5. Quality/Customer Service

6. People Training/Human Resources/Moral

7. Public Professional Responsibility

8. Other Key Strategies

Now for each objective, use this form to develop specific objectives,strategy and action.

Objective

Key Result Area

Strategy to achieve objective

1.

2.

3.

What do I have to do to make it happen:

1.

2.

3.

VII. OPERATIONAL PLANA. Getting Work Accomplished/What Must Be Done in Short Term

B. Develop Overall Budget and Support Budgets to Accomplish Overall Plan. How much is needed during operational year to

accomplish objectives?

1. Overall Budget $______________2. Marketing Budget $______________3. Production Budget $______________4. HR Budget $____________5. Staff Support Budgets $____________

C. Capital Budget is Revised and Developed Yearly

VIII. REWARD/PERFORMANCE APPRAISAL

A. What team and individual review/reward system/bonus salary needed

B. Review of Performance/Schedule overall and support review dates

IX. ISSUES/PROBLEMS

A. Major

B. Minor

X. ANALYSIS

A. How do you measure cultures

XI. ALTERNATIVE SOLUTIONS

A. List of Alternatives

1.

2.

3.

B. Pros/Cons of each – problems/opportunities associated with each

1.

2.

3.

XII. RECOMMENDED COURSE OF ACTION

A. Alternative Selected and Why It Was Selected

B. Expected Benefit of This Recommendation

C. What Effect Will This Recommendation Have on Performance Income and Balance Sheet Statements

AssumptionsPurpose

orMission

EnvironmentalAnalysis

Strengthsand

Weaknesses

Objetives Strategy OperationalPlans

Evaluationand

Control

PerformanceAppraisal

and Reward

1 2 3 4

6 7 8Objectives

5

STRATEGIC LONG RANGE PLANNING PROCESS

PROBLEM

MAJOR

MINOR

ANALYSIS

Production Marketing Human Resource R&D Financial

ALTERNATIVES

Usually three Feasibility Study

RECOMMENDATIONS

Best course of action under circumstances

PHEASANT HUNT(EXAMPLE)

Fever Weak Clammy

Laptosplaosis

Attack real problem, not symptoms

SYMPTOMS

REAL PROBLEM

MAJOR POINT

SYMPTOMS WHAT IS LIKELY THE PROBLEM

1. Headaches2. Fever3. Sore muscles

Virus

1. Arguments2. Unfaithful partner3. Abuse

Communication/Time

1. Lack of attention on assignments2. Making noise3. Starting fights

Lack of attention at home

If you have the flu

In an unhappy marriage

An unruly child in a kindergarten class

SYMPTOMS WHAT IS LIKELY THE PROBLEM

1. Lazy 2. Missed days/tardy3. Injuries

No recognition Lack of self-esteem

An unhappy/unproductive employee

SYMPTOMS WHAT IS LIKELY THE PROBLEM

1. Loss of market share2. Poor quality/service3. Drop revenue4. Poor public image5. Turnover of employees6. High cost sportage

7. Unhappy people/lack of pride8. Facilities run down9. Poor cash position10.High inventory11.Running at less plant capacity

Lack of strategic directionLost track of customerneeds. Wrong size in industry. Not operatingbottom of long run costcurve. Not aimed at rightmarket niche.

Not using firm’s competitiveadvantage/strengths. Lackof driving force/strength ofcompany. Improper mergerbusiness partners. ExternalFactors/new laws.

A Business Losing money.

SYMPTOMS WHAT IS LIKELY THE PROBLEM

Company expanding, gaining market share, profitable

1. Overworked executives2. Confusion at all levels3. Lack of coordination4. Poor communication5. Plan not in writing6. Constant reorganization

- Poor organizaition chart- Growth with no plan- Chasing the market- Lack in training

A company staying at the same size

1. Lack of excitement in Culture2. Losing market share3. Low profits compared to industry4. Take-over from unfriendly buyer

Could get leftbehind industrychange

SYMPTOMS WHAT IS LIKELY THE PROBLEM

Perceived Problem: Late delivery to customer, lowproductivity, quality problems, machine repair costshigh 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

Real Problem:

Why it takes 7-14 days for sales paperwork toget 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

Solution: Alt #2 computer entry of orders from field/train marketing sales people (normal/traditional problems; people don’twork, need training.

Results:

Increased manufacturing experience

Better quality

Higher morale

Foster throughput

“Sophisticated solutions do not work. The more complex the

problem, the simpler the solution must be.”

Eliyahu M. Goldratt