OE21 Guideline: 2.1 Strategy Development

Strategic Objective:

Strategic Objective:

Develop strategy aimed at maximizing the value of the organization to all stakeholders (employees, customers, community, other stakeholders)

Quality Objective:

Quality Objective:

Define and implement strategic objectives and actions plans 

Approved: DD-MMM-YY

Approved by: (Name) Chair, Leadership Focus Team (LFT)

Responsibility:

Responsibility:

Lead: Leadership Focus Team (LFT-IT)  Support: FAC and other focus teams

VALUE ADDED            

1. Strategic Planning Process - The critical steps and tools used for strategy development are defined and documented.

 

2. Strategic Assessments - Five critical strategic assessments (surveys with analysis) are defined and ready to deploy, including Customer Needs and Expectations, Key Stakeholder Needs and Expectations, Workforce Capabilities, S.W.O.T., and Community Impact and Risks. 

3. Strategic Alignment - Alignment of organization mission, key intended outcomes, strategic goals, strategic objectives, and key performance indicator measures and targets from the top (executive level) to work unit levels of the organization.

4. Strategic Innovation - The strategy development process stimulates and incorporates innovation in understanding challenges, problems and issues, followed by capture of improvement or solutions ideas from all levels of the workforce.

5. Strategy Impact on Work Systems and Core Competencies - The strategy development process stimulates improvements and changes in work systems and core competencies for new products, services, and market opportunities.

The organization has adopted the Baldrige Framework Items 2.1 Strategy Development and 7.4b Strategy Implementation as the internal policy, including the following sub-items:

2.1a(1) Strategic Planning Process - (key strategy planning process steps, key participants, planning horizons, need for change, organizational agility, and operational flexibility)

 

2.1a(2) Innovation - (stimulating and incorporating innovation, identification of key strategic opportunities and decisions based on intelligent risk)

 

2.1a(3) Strategy Considerations - (collecting and analysis of data and information for strategy; challenges, advantages, regulatory and external business environment, blind spots in strategy planning, ability to execute the strategic plan

 

2.1a(4) Work Systems and Core Competencies - (internal or external  accomplishment of main processes, consideration of current and future core competencies and work systems required)

 

2.1b(1) Strategic Objectives - (identification of key strategic objectives, timetables for accomplishment, strategic goals (key intended outcomes), and possible changes to products, services, programs, customer groups, markets, suppliers, partners, and operations)

 

2.1b(2) Strategic Objective Considerations - (balancing strategic objectives across the organization according to varying and potential competition for needs of the workforce and key stakeholders) 

   

7.4b Strategy Implementation Results  - The organization measures the results for the achievement of its organizational strategy and action plans, including results for critical measures or indicators of action plan accomplishment, for building and strengthening core competencies, and for taking intelligent risks.

 

 

POLICY           2.1 COMMENTARY         

PROCESS

2.1 Flow Diagram (Figure 2.1-1 Strategy Development)

2.1 Process Chart (Figure 2.1-2 Strategy Development)

Inputs to 2.1 Strategy Development

2019-2020 Baldrige Performance Excellence Framework Criteria Commentary Item 2.1

LFT. B.1 Results Excellence Results Assessment (survey results and narratives)

LFT P.2 Organizational Profile Part 2 (survey results and published profile)

List of Survey Responders (with email addresses) for each of the following surveys:

 

Measurement and Analysis Tools and Techniques

 

 

 

 

NOTE: Find and access the file below on your Intranet Tools page:

 

Outputs from 2.1 Strategy Development

  • Master list of prioritized candidate Strategic Objectives 

  • Strategic Objectives updates after organization strategy alignment

Case Study

  • Read the 2.1 Case Study

2.1 Implementation Instructions

2.1 IMPLEMENTATION INSTRUCTIONS

Key Decision: The OE21 focus team responsible for this standard should begin by deciding whether or not the OE21 standard adds value (on is non-value added) when compared to any existing standard, SOP, or process the organization uses now. The decision process is:

 

1. The focus team studies all Tasks and tools used in the OE21 standard.

2. The focus team answers the questions:

  • NON-VALUE ADDED? Does the organization currently use a standard, SOP process that is deemed as better or essentially as good as the OE21 standard? If YES, then the focus team should document that this standard is deemed as NVA, and then the focus team should proceed ahead to the next OE21 standard.

  • VALUE-ADDED? Does the organization currently use a standard, SOP process that is deemed as better or essentially as good as the OE21 standard? If NO, then the focus team should proceed ahead to complete the following OE21 Implementation instructions.

 

Note: The NVA finding will be used later in the OE21 Certification Audit process.

Note: Implementation of 2.1 is led by the LFT-IT and supported by the other focus teams (CFT, OFT, and WFT). When complete, the 2.1 document is reviewed and approved by the LFT (CEO, CFO, etc.)
 

START IMPLEMENTATION

Task 2.1.1 Strategic Planning Preparations (Kick-Off) - The focus teams (LFT, CFT, OFT, WFT, and CAT) meet at the beginning of each new strategic planning process. At this kick-off meeting, the agenda includes the following:

 

(a) Review the LFT P.2 Organization Profile. Each strategic planning cycle will likely include new information that should be used to modify or add to the Organizational Profile P.2, including statements about competitive position, competitiveness changes, comparative data, strategic context, and the performance improvement system.

 

(b) Review the LFT B.1 Organization Excellence Assessment. The results of this assessment are reviewed to refresh the Focus Teams on ratings and narrative suggestions, some of which will support strategic planning updates.

 

(c) Review the Survey Methods Guide. The focus teams review this guide to learn the process for using the online survey system to conduct OE21 assessments, including the strategic ones. 

(d) Create a List of Issues or Risks. Focus teams discuss and create or update a list of issues or risks to be considered during strategic planning.

 

(e) Set Time-frame. The Leadership Focus Team (LFT) sets the strategic planning time-frame (from start to finish; with requirements for annual or more frequent updates).

 

(f) Assign Responsibilities. The focus teams review and accept their assigned roles and responsibilities for strategic planning.

 

(g) Document Meeting Results. The LFT documents the Strategic Planning Kick-Off Meeting results and actions.

  • PROGRESS: You have reached Milestone 1 (good work). Input the status [3%] on the organization's OE21 Intranet Main page alongside the title of this standard.

 

Task 2.1.2 Conduct Customer Needs and Expectations Assessments.

 

Step 1: Conduct Customer and Prospective Customer Assessments. The Customer Focus Team uses the Survey Methods Guide to design, launch and analyze the surveys that help define customer and prospective customer needs and expectations. Annual updates to these assessments are conducted. More frequent updates are conducted when significant changes to customers or market needs occur.

 

CFT 3.1 Customer Satisfaction and Value Assessment (survey) 

 

CFT 3.1 Voice of Customer Assessment (survey) 

 

CFT 3.1 Voice of Prospect Assessment (survey)

Step 2: Create a List of Strategic Objectives. From the ratings and narratives in the Customer Needs and Expectations Assessments, the Customer Focus Team (CFT) creates ideas that may become Strategic Objectives, and inputs these ideas into the master list of Candidate Strategic Objectives.

 

Step 3: Write the Assessment Results Report. From the ratings and narratives in the Customer Needs and Expectations Assessments, the Customer Focus Team (CFT) creates the Assessment Results Report, including:

 

  • Assessment Rating Score total (from question ratings)

  • Assessment Findings (bullet list of key findings from the assessment)

  • PROGRESS: You have reached Milestone 2 (good work). Input the status [24%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 2.1.3 Conduct Stakeholder Needs and Expectations Assessment.

 

Step 1: Conduct Stakeholder Needs and Expectations Assessment. The Customer Focus Team uses the Survey Methods Guide procedure, to design, launch and analyze the Voice of Stakeholder Assessment. Annual updates to these assessments are conducted. More frequent updates are conducted when significant changes to stakeholder needs occur.

 

CFT 3.1 Voice of Stakeholder Assessment (survey)

 

  • Stakeholders Definition. Refers to all regulatory, outside or affiliated groups that might be affected by an organization’s actions and success. Examples of stakeholders might include partners, collaborators, governing boards, stockholders, donors, key suppliers, taxpayers, regulatory bodies, policymakers, funders, and local and professional communities.

 

Step 2: Create a List of Strategic Objectives. From the ratings and narratives in the Stakeholder Needs and Expectations Assessment, the Customer Focus Team (CFT) creates ideas that may become Strategic Objectives and inputs these ideas into the master list of Candidate Strategic Objectives.

 

Step 3: Write the Assessment Results Report. From the ratings and narratives in the Stakeholder Needs and Expectations Assessment, the Customer Focus Team (CFT) creates the Assessment Results Report, including:

  • Assessment Rating Score total (from question ratings)

  • Assessment Findings (bullet list of key findings from the assessment)

 

  • PROGRESS: You have reached Milestone 3 (good work). Input the status [38%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 2.1.4 Conduct Workforce Needs and Expectations Assessment.

 

Step 1: Conduct the Workforce Needs and Expectations Assessment. The Workforce Focus Team (WFT) uses the OE21 Guide to Assessment/Survey Process, to design, launch and analyze the Voice of Workforce Assessment. Annual updates to these assessments are conducted. More frequent updates are conducted when significant changes to workforce needs occur.

 

WFT 5.1 Voice of Workforce Assessment (survey)

 

Step 2: Create a List of Strategic Objectives. From the ratings and narratives in the Voice of Workforce Assessment, the Workforce Focus Team (WFT) creates ideas that may become Strategic Objectives, and inputs these ideas into the master list of Candidate Strategic Objectives.

 

Step 3: Write the Assessment Results Report. From the ratings and narratives in the Voice of Workforce Assessment, the Workforce Focus Team (WFT) creates the Assessment Results Report, including:

  • Assessment Rating Score total (from question ratings)

  • Assessment Findings (bullet list of key findings from the assessment)

 

PROGRESS: The status (Milestone 4 = 52%) is input on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 2.1.5 Conduct S.W.O.T. Assessment.

 

Step 1: Conduct Strengths, Weaknesses, Opportunities and Threats (SWOT) Assessment. The Leadership Focus Team (LFT) uses the OE21 Guide to Assessment/Survey Process, to design, launch and analyze the S.W.O.T. Assessment. Annual updates to these assessments are conducted. More frequent updates are conducted when significant changes to strengths, weaknesses, opportunities or threats occur.

 

LFT 2.1 S.W.O.T. Assessment (survey)

 

Step 2: Create a List of Strategic Objectives. From the ratings and narratives in the S.W.O.T. Assessment, the Leadership Focus Team (LFT) creates ideas that may become Strategic Objectives and inputs these ideas into the master list of Candidate Strategic Objectives.

 

Step 3: Write the Assessment Results Report. From the ratings and narratives in the S.W.O.T. Assessment, the Leadership Focus Team (LFT) creates the Assessment Results Report, including:

 

  • Assessment Rating Score total (from question ratings)

  • Assessment Findings (bullet list of key findings from the assessment)

  • PROGRESS: You have reached Milestone 5 (good work). Input the status [65%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 2.1.6 Conduct Community and Risk Assessment.

 

  • About the Community Assessment: The Leadership Focus Team (LFT) creates and conducts Community and Risk Assessments to determine the negative or positive impacts of our existing and planned (future) products, services and operations on our surrounding community.

 

  • The results of these annual assessments are used to support and strengthen our key communities and to identify areas of emphasis aimed at improving the satisfaction of our key communities with our organization's products, services, facilities, operations, economic (jobs, business revenue, tax contributions, donations, volunteer work, environmental (air, water, noise, traffic, etc.) or other impacts that may affect the communities in our regional location.

 

Step 1: Conduct the Community Impact and Risk Assessment. The Leadership Focus Team (LFT) and the Community Alignment Team (CAT) use the OE21 Guide to Assessment/Survey Process, to design, launch and analyze the Community and Risk Assessment. Annual updates to these assessments are conducted. More frequent updates are conducted when significant changes to community impact or risks occur.

 

LFT 1.2 Community & Risk Assessment (survey)

 

Step 2: Create a List of Strategic Objectives. From the ratings and narratives in the Community Impact and Risk Assessment, the LFT and CAT create ideas that may become Strategic Objectives and inputs these ideas into the master list of Candidate Strategic Objectives.

 

Step 3: Write the Assessment Results Report. From the ratings and narratives in the Community Impact and Risk Assessment, the Leadership Focus Team (LFT) creates the Assessment Results Report, including:

 

  • Assessment Rating Score total (from question ratings)

  • Assessment Findings (bullet list of key findings from the assessment)

 

  • PROGRESS: You have reached Milestone 6 (good work). Input the status [87%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 2.1.7 Set Final Strategic Objectives.

 

Step 1 - Assemble Lists of all Candidate Strategic Objectives - The outputs of the five strategic assessments are used to create lists of candidate strategic objectives. "Candidate" is intended to imply that any of the strategic objectives may or may not survive the final list that will become part of the Strategic Plan. Prioritization and further analysis are suggested before the final strategic objectives are selected.

 

The following are examples of typical candidate strategic objectives for each of the five Focus Teams:

 

LEADERSHIP FOCUS TEAM - Examples of strategic objectives that might have originated from S.W.O.T. assessments might be:

 

  • Establish new Intranet for the benefit of the workforce

  • Implement new Marketing Strategies to penetrate new market

  • Establish better Financial Performance transparency with the workforce

 

COMMUNITY ALLIANCE TEAM - Examples of strategic objectives that might have originated from Community Impact assessments might be:

 

  • Implement a noise reduction program throughout the manufacturing plant

  • Establish a new job-creation partnership with local Educational Institutions

  • Initiate a new employee blood donor program to help the local Red Cross

 

CUSTOMER FOCUS TEAM - Examples of strategic objectives that might have originated from Customer Needs and Expectations assessments might be:

 

  • Reduce time from request for service to delivery

  • Add new service requested by key customer

  • Publish new website links to assist customers

 

Examples of strategic objectives that might have originated from Stakeholder's Needs and Expectations assessments might be:

 

  • Provide new mission accomplishment metrics

  • Implement earned value management system to improve project management

  • Streamline key Suggested processes to reduce customer service response time

 

OPERATIONS FOCUS TEAM - Examples of strategic objectives that might have originated from S.W.O.T. assessments might be:

 

  • Create accurate process charts and instructions for the key production process

  • Hire two new certified Project Management Professionals to manage big projects

  • Re-design the Supply Chain to significantly reduce product and service costs and cycle times

 

WORKFORCE FOCUS TEAM - Examples of strategic objectives that might have originated from Workforce Needs and Expectations assessments might be:

 

  • Provide better security in workforce parking areas

  • Update key workforce training courses to reflect program changes

  • Establish workforce rewards system for performance excellence & innovation

 

Step 2: Prioritize Candidate Lists of Strategic Objectives. The focus teams prioritize their lists of candidate strategic objectives. The result of prioritization is a "sorted in order of importance" list of candidate strategic objectives. The focus teams may choose to delete any low priority strategic objective candidates due to staff and funding restraints. When necessary, the Leadership Focus Team (LFT) becomes involved in focus team prioritization.

 

Step 3: Select Balance and Align Prioritized Strategic Objectives - The Leadership Focus Team (LFT) use the checklist below to select, balance and align the final sorted list of strategic objectives obtained for the other focus teams as well as the LFT list. The final list of strategic objectives should have most or all of the following characteristics:

 

  • Contributes to the overall accomplishment of program mission and vision

  • Realistic, affordable and feasible to implement

  • Significant value to focus teams

  • Significant value to customers

  • Significant value to key stakeholders

  • Significant value to the workforce

  • Significant value to the community 

 

  • PROGRESS: You have reached Milestone 7 (good work). Input the status [89%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 2.1.8 Implement Strategy Alignment - The LFT-IT collaborates with  the LFT, CFT, OFT, WFT and FAC to ensure strategy alignment. Strategy alignment assures that the final list of strategic objectives has appropriate balance across all levels of the workforce, customers, key stakeholders, and the community.

 

The Strategy Alignment compares the following strategy-related outputs:

 

  • Strategic Themes (Leadership, Customer, Operations, Workforce, and Community Excellence)

  • OE21 Scorecard Results (16 results groups aligned with Baldrige Category 7 Results.

  • Strategic Goals and associated planned measures, targets and percent of accomplishment

 

The result of this standard is a final review by all Focus Teams, aimed at making sure that before Strategic Action Plans and Resource Allocation begins 2.2 Strategy Implementation. The goal is to ensure that the strategy development process has produced the desired strategic goals and objectives and that these are of significant value to the success of the organization.

 

  • PROGRESS: You have reached Milestone 8 (congratulations). Input the status [100%] on the organization's OE21 Intranet Main page alongside the title of this standard.