Chapter 3 discusses various aspects of strategic planning. As noted in the textbook, it is important to link performance management to strategy. For this discussion board, please consider the scenario below. Scenario You are the newly hired HR Director for a large healthcare organization, which serves elderly individuals. Over 1,000 healthcare employees (e.g., physicians, nurses, etc.) are employed by your company. You have been told, by the leaders of your organization, that the performance management system used by the company is not fully aligned with the organization’s strategic plan. For this discussion board post, please address the following: • • • Explain why the job descriptions for all workers must be in alignment with the organization’s mission, goals, and strategies. Address how you can effectively communicate the strategic plan to all organizational employees. Why does the organization’s compensation strategy need to be aligned with the company’s strategic plan? Embed course material concepts, principles, and theories (require supporting citations) in your initial response along with at least 4 reference one of them scholarly, peer-reviewed journal article. Be sure to support your statements with logic and argument, citing all sources referenced. Chapter 3 Performance Management and Strategic Planning Copyright © 2019 Chicago Business Press 3-1 Overview ◼ ◼ ◼ Definition and Purposes of Strategic Planning Linking Performance Management to the Strategic Plan Strategic Planning Process • Critical Role of HR in Strategic Planning • Devising an environmental (i.e., SWOT) analysis • Produce state-of-the-science mission and vision statements, objectives, and strategies • Devise effective job descriptions ◼ Building Support Copyright © 2019 Chicago Business Press 3-2 Strategic Planning: Definition ◼ Process • Describe the organization’s destination • Assess barriers • Select approaches for moving forward Copyright © 2019 Chicago Business Press 3-3 Strategic Planning: Goal ◼ ◼ Allocate resources to provide the organization with competitive advantage Blueprint that defines how the organization will allocate its resources in pursuit of its most critical and important objectives Copyright © 2019 Chicago Business Press 3-4 Strategic Planning: Purposes Copyright © 2019 Chicago Business Press 3-5 Aligning Strategic Plan & Performance 3-6 Copyright © 2019 Chicago Business Press Strategic Planning : Overview ◼ Organizational Strategic Plan • Mission; Vision; Objectives; Strategies ◼ Unit Strategic Plan • Mission; Vision; Objectives; Strategies ◼ Job Descriptions • Tasks; Knowledge; Skills; Abilities Copyright © 2019 Chicago Business Press 3-7 Linking Individual with Unit and Organizational Priorities ◼ Job descriptions should be evaluated against the company’s mission and vision statement. Possible factors on which the comparison may be conducted include how well the job description links the individual’s responsibilities with the organization’s: • • • • • • Basic product/service offered Primary market/customer groups Unique benefits and advantages of product/services Technology used Strategy for growth and profitability Vision of what the organization would like to become in the future—about 5–10 years out Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 8 Linking Individual with Unit and Organizational Priorities ◼ ◼ Consider the following example from Federal Express, a family of companies that offer a global network of specialized services— transportation, information, international trade support, and supply chain services: Job Description for Senior State and Local Affairs Representative: Monitors legislative activity and analyzes developments and trends in state and local governments for FedEx Government Affairs. Formulates and coordinates company responses to state and local legislative initiatives. Develops and implements state and local government relations programs. ◼ ◼ ◼ ◼ ◼ ◼ ◼ Requirements: Licenses/Certifications—NONE Field of Interest—Legal Job Type—Full Time Location(s) of Position—TN-MEMPHIS Relevant Years Experience Required—6 to 8 Years Maximum Percent Travel Required—Up to 50 percent Preferred Language—English Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 9 Linking Individual with Unit and Organizational Priorities ◼ ◼ ◼ Consider the following example from Federal Express, a family of companies that offer a global network of specialized services—transportation, information, international trade support, and supply chain services: FedEx Mission Statement (www.fedex.com): FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation, and related information services through focused operating companies. Customer service requirements will be met in the highest quality manner appropriate to each market segment served. FedEx Corporation will strive to develop mutually rewarding relationships with its employees, partners, and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards. FedEx Corporation (strategic leadership and financial reporting) Mission Statement: To achieve the FedEx mission—producing superior financial returns while meeting customer needs in the highest quality manner possible—the $23 billion FedEx Corporation is focused on sustained, profitable growth and provides consolidated financial reporting based on a fiscal year ending May 31. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 10 Linking Individual with Unit and Organizational Priorities ◼ ◼ ◼ ◼ ◼ ◼ ◼ Consider the following example from Federal Express, a family of companies that offer a global network of specialized services—transportation, information, international trade support, and supply chain services: Changes/additions to job description: Ability to analyze current changes in state and local governments in an effort to identify new revenue opportunities. Ability to build high-quality relationships with stakeholders in the community. Performs job in accordance with highest ethical standards. Knowledge of and experience operating in a customer-service oriented company. Knowledge of logistics, transportation, or information services required. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11 Linking Performance Management and Strategic Plan ◼ ◼ ◼ The Balanced Scorecard Approach What are key elements of the balanced scorecard approach? How can this approach create congruence between performance management and the strategic plan? Copyright © 2019 Chicago Business Press 3-12 Review Key Bank of Utah ◼ ◼ ◼ What was KeyBank of Utah’s experience with this process? Figure 3-1 & 3-2 P.71 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13 Linking Performance Management and Strategic Plan ◼ According to the study of 338 international organizations, what kinds of organizations are most likely to have performance management provide significant benefit to the strategic plan? Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14 Strategic Planning Process ◼ ◼ ◼ ◼ ◼ ◼ ◼ Critical Role of the HR Function Environmental (SWOT) Analysis Mission Vision Objectives Strategies Job Descriptions Copyright © 2019 Chicago Business Press 3-15 Strategic Planning Process Critical Role of the HR Function ◼ ◼ ◼ Communicate knowledge of strategic plan Outline knowledge, skills, and abilities (KSAs) needed for strategy implementation Propose compensation systems Copyright © 2019 Chicago Business Press 3-16 Strategic Planning Process Environmental Analysis Identifies external and internal trends ◼ To understand broad industry issues ◼ Used to make decisions using “big picture” context Copyright © 2019 Chicago Business Press 3-17 Strategic Planning Process Environmental Analysis Internal Trends ◼ Strengths: • Internal characteristics that organization uses to its advantage ◼ Weaknesses: • Internal characteristics that can hinder success of the organization Copyright © 2019 Chicago Business Press 3-18 Strategic Planning Process Environmental Analysis External Trends ◼ Opportunities: • Environmental characteristics that can help the organization succeed ◼ Threats: • Environmental characteristics that can prevent the organization from being successful Copyright © 2019 Chicago Business Press 3-19 Strategic Planning Process Environmental Analysis Trends to Consider 3-20 Copyright © 2019 Chicago Business Press Strategic Planning Process Gap Analysis Analyzes: External environment (opportunities and threats) vis-à-vis Internal environment (strengths and weaknesses) Copyright © 2019 Chicago Business Press 3-21 Strategic Planning Process Gap Analysis Determines ◼ ◼ ◼ ◼ Opportunity + Strength = Leverage Opportunity + Weakness = Constraint Threat + Strength = Vulnerability Threat + Weakness = Problem Copyright © 2019 Chicago Business Press 3-22 Strategic Planning for the Organization Environmental and Gap Analyses provide information for organizations to decide: ◼ Who they are ◼ What they do Copyright © 2019 Chicago Business Press 3-23 Conducting a SWOT Analysis ◼ ◼ ◼ Conducting a SWOT Analysis When should organizations conduct a SWOT Analysis? What is the difference between Weaknesses and Threats? Copyright © 2019 Chicago Business Press 3-24 Company Spotlight SWOT Copyright © 2019 Chicago Business Press 3-25 Company Spotlight SWOT Copyright © 2019 Chicago Business Press 3-26 Company Spotlight Gap Analysis ◼ ◼ Provide alternative to hotels by providing temporary housing that allows hosts to make money and users to save money and experience local culture. Provide easy-to-use web platform that allow hosts to easily list temporary housing by posting their listing once, and users to easily search and filter. Copyright © 2019 Chicago Business Press 3-27 Quick Review ◼ ◼ Definition and Purposes of Strategic Planning Linking Performance Management to the Strategic Plan • Critical Role of HR in Strategic Planning • Devising an environmental (i.e., SWOT) analysis • Produce state-of-the-science mission and vision statements, objectives, and strategies • Devise effective job descriptions ◼ Building Support Copyright © 2019 Chicago Business Press 3-28 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2019 Chicago Business Press Copyright © 2019 Chicago Business Press 1-29
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