Strategic Planning Many business organizations are finding that strategic quality plans and business plans are inseparable. For Instance, at Corning, The 1995 Malcolm Baldrige National Quality Award winner, if you ask them to show you their quality strategy, they will show you their business strategy; ask for their quality plan, they will give you their business plan. Why? Let’s see how they define what a quality plan and a business plan is. Strategic Quality Plans and Business Plans
Strategic Quality Plan – Detailed document that sets forth practices and sequence of activities aimed at translating an organization’s quality policy into operational results, or conformance to a standard such as ISO 9000 within a specified timeframe. Business Plan – Set of documents prepared by a firm’s management to summarize its operational and financial objectives for the near future (usually one to three years) and to show how they will be achieved.
So that’s how it is, it really are inseparable, based on the example I can safely say that organizations inclined to Total Quality Management is living up to its goal of Total quality that even in their business plan, quality is their core. Simply put, strategic quality business planning or just strategic planning determines where an organization is going over the next year or more, how it’s going to get there and how it’ll know if it got there or not. Now let us move on to Goals and objectives, both types of planning requires goals and objectives, so what is this goals and objectives?
According to John Pessico Jr. and Gory N. Mclean, authors of an article entitled “Manage with Valid rather than Invalid Goals” they have the same meaning, however it is possible to differentiate the two by using goals for long-term planning and objectives for shot-term planning. For example, the Goal is to win the war, the objective is to capture the bridge. According to John and Gory, Goals have certain characteristics that make them effective, and those are: Goals and Objectives * Goals must be based on statistical knowledge of the system * Goals must be definitive, and understandable Goals must be measurable or can be evaluated * Goals must have a plan or method of utilizing resources for their achievement also it must have a specific time-frame or a deadline should be given * Goals must be challenging yet achievable The characteristics of objectives are identical, they are operational approaches to attain goals. Well as you can see, these characteristics can be summed up to the well renowned SMART Goals Specific, Measurable, Attainable, Realistic, Timely. Now that we know what our Goals in the Plans should look like, lets proceed to the steps on strategic plannng.
According to John R. Dew, there are seven basic steps to strategic quality planning. The process starts with the principal that quality and customer satisfaction are the center of an organization’s future. so the first step: 7 Steps to Strategic Planning * Customer needs-The First step is to discover the future needs of customers, Who will they be? What will they want, how will the organization meet and exceed expectations? * Customer positioning-Next, the planners determine where the organization wants to be in relation to the customers. o they want to retain, reduce or expand customer base? products or service with poor quality should be targeted for breakthrough or eliminated. the organization needs to concentrate its efforts on areas of excellence. * Predict the future-Planners need to predict the future conditions that will affect their product or service, more than one organization’s product or service has become obsolete because it failed to foresee he changing technology. note that change is continually increasing. Gap analysis-planners requires to identify the gaps between the current state and the future state of the organization. they can pinpoint the gaps by analyzing the core values of the company * Closing the gap-after analyzing the gap, we now close the gap by establishing goals and responsibilities, all stakeholders should be included in the development of the plan. * Alignment-as we develop the plan, it should be aligned with the mission, vision and core values of the organization. without this alignment the plan will have little chance of success. Implementation -so we come to the most difficult part. resources must be allocated to collecting data, designing changes, and overcoming resistance to change. also part of this step is the monitoring activity to ensure that progress is being made. the planning group should meet at least once per year to assess progress and take any corrective plan. To sum it all up, Strategic planning allows organizations to do the right thing, at the right time, every time, as stated by John R. Dew. 12 Characteristics of Effective Leaders * They give priority to internal as well as external customers. They empower, rather than control, subordinates. * They emphasize improvement rather than maintenance. * They emphasize prevention * They encourage collaboration rather than competition. * They train and coach, rather than direct and supervise. * They learn from problems. * They continually try to improve communications. * They continually demonstrate their commitment to quality. * They choose suppliers based on quality not by price. * They establish organizational systems to support the quality effort. * They encourage and recognize team effort.