Developing and Managing Organizational: STRATEGY

Chapter 5 – Roger Bazeley, SummaryEssential Guide To Management: Alan MurrayThe Wall Street Journal

Overview

The role of “strategy” in managing an organization’s delivery of; it’s products, services, and/or projects. definition of “strategic management”

principals; review of goal setting concepts defining

“the mission statement” applied to the organization, project management, and team building;

discussion of values and motives that are specifically important to the public sector.

“The People who we serve”

PUBLIC SECTOR THE PEOPLE

The Role of STRATEGY “Charting a course is the fundamental

responsibility of a manager.” Murray What is your mission? What is your strategy for

accomplishing the defined mission of your organization or “the project”?

“people in an organization are crucial to it’s performance”. Rainey

Managing STRATEGY “Managers must know the path, where they

are going and have a clear plan for getting there” What is your mission?

Manager must take responsibility to the demands and needs of a vast web of people: staff, vendors/contractors, politicians, stakeholders, and customers/the public.

A manager must focus on what you can and should accomplish; and the methodology.

Effective People & Project Managers

To be PROACTIVE is fundamental. Begin a project or task with the end in mind. Keep your eye on the prize and be aware that the political

environment present challenges for motivating in the public sector. RMB

Take “Strategic Responsibility” RMB *Goal 1: Improve Leadership processes, Organizational

Culture, by understanding its mission. *Goal 2: Strategy - realistic plan for accomplishing your

mission and project goals via strategic planning. *Goal 3: Operational/Project Goals — Project Management

time table, milestones—Caltrans PID

Managing Strategic Planning Project Management

Pyramid –J.P. Lewis “Projects are

people! They are not critical path schedules or Gantt charts.”

If a project manager can’t deal effectively with people, the project quality will suffer.

People are the foundation

The Mission Statement

Every organization and “Transportation Project” needs a mission statement; an overall vision and concept

Missions can and do change over time and are subject to political and social-economic forces.

The constraining character of government and the political environment present challenges for planning, funding, and building “public transportation” projects small and large; can be “game changers”.

A clear mission statement should build a consensus of the project’s importance, benefits, and funding.

*Goal: Mission statements should be clear, honest, and reinforce transparency and accountability. RMB

The Mission Statement

The Mission Statement: Goals

Statement should define VISION and GOALS What do we do? (Caltrans-We move people) How do we accomplish it? (Planning, PID, EIR) For whom do we do it? (Stakeholders, Customers…) Pharma-Novartis: “Protecting people through

innovative science” 1.) Working to cure cancer; 2.) Providing safe blood; 3.) Preventing infectious diseases. (underlying: stay in business, make profit, grow market share)

For whom do we do it? (Customers-A better life, Shareholders-Financial return, Employees-Pride and Opportunity for making a difference) Private Sector

The Mission Statement

The Mission Statement: Reality

Most organizations serve more than one targeted group of stakeholders, partners, customers.

Company or Project values are often written into the mission statement.

Current mission statements often reflect Economic, environmental, or social mission values and goals.

Ben & Jerry’s, Inc. (Ice Cream) is known for its financial commitment to social causes (Founders)

Carefully crafted mission statement can be a “great Brand Marketing asset/tool” and positive communicator projecting organizational or project value, benefit, and public/customer acceptance.

Mission Statements: CHSRA vs. JR East Shinkansen

CHSRA Mission Statement VISION: “Inspired by successful high-speed train

systems worldwide, California's electrically-powered high-speed trains will help the state meet ever-growing demands on its transportation infrastructure. Initially running from San Francisco to Los Angeles/Anaheim via the Central Valley, and later to Sacramento and San Diego, high-speed trains will travel between LA and San Francisco in under 2 hours and 40 minutes, at speeds of up to 220 mph, and will interconnect with other transportation alternatives, providing an environmentally friendly option to traveling by plane or car.”

CHSRA Project Goals – The Promise CHSR will be fast and reliable – offers passengers a quicker trip with

dependability CHSR will be cutting edge – 220 MPH performance by using state-of-art

technology CHSR is cost-effective – moves people at less cost vs. building highways

and airports CHSR will improve mobility – supports inter-regional mobility and multi-

modal access CHSR will stimulate our economy – growth of businesses, jobs, and

housing/TOD CHSR is incremental – built in phases based upon funding availability and

demand. CHSR will create jobs – construction, operations, retail and corporate;

450,000 jobs. CHSR will benefit the environment – energy efficiency, reduce oil

dependency, air quality CHSR supports the President’s Vision – major investment in HSR for

the nation

JR-East “Shinkansen” Mission Statement Business Goal: “Enhancing customers’ confidence

in our ability to provide safe and reliable services at our stations, on our trains and elsewhere,” CEO Otsuka

“The JR East Group aims to function as a dynamic corporate group providing quality leading-edge services with railway businesses at its core. To that end, each person working for the group will reflect the viewpoints of customers by providing safe, reliable transportation and high-quality, convenient products and services. At the same time, group employees will continue raising the levels of services and technologies to earn the trust and confidence of customers. We will grow continuously and advance in harmony with customer by generating earnings while meeting social responsibilities as a “Trusted Life-Style Service Creating Group”. (JR-East)

Basic Principles: 1.) Putting the customer first; 2.) Ensuring safety and quality; 3.) Developing the group’s autonomy, collaboration, and new initiatives.

JR-East “Shinkansen” Mission Goals

Fast – it offers a quicker trip with dependability; 300kmh/ plus (186/205 mph) Safe – “extreme safety levels”, leading edge technology (ATC); Zero fatal

accidents. Reliable – moves people effectively; delay time is 0.3 minutes per train. Frequent – with 15 trains per hour, and a variety of Transport Formats-Train sets Efficient – operates using technology to lower energy consumption. Multiple unit

power (EMU) Environmentally Friendly – Low noise and Low CO2 emissions, lower

environmental impact Benefits Communities – Social and Economic investment; business and jobs Catalyst for TOD/Urban Development – Shinkansen promotes urban and station

TOD Promotes Customer Markets – Expansion opportunities for “life-style businesses Innovation in customer comfort and services – Comfort technology, industrial

design Operational and Management Harmony – Applied uniformity, group acceptance

Complex Mission Statements Economic Mission: To operate on a

financial basis of promoting growth Social Mission: Recognizes the central

role the a business or project plays in society. CHSRP-Job Growth, JR-East Community TOD, Lifestyle products and services.

Environmental/ECO Mission: Reducing energy use, traffic congestion, air pollution

Beware of proliferating and conflicting missions within the same organization.

STRATEGY The word Strategy has its origins in

the military. Strategus was the commander in chief in ancient Greece who directed and planned movements and operations of a campaign.

Reference: The Art of War-Sun Tzu 5 rules: measurement, assessment,

calculation, comparison, and victory. To victor go the spoils/rewards.

Modern Business-Plan of Action Product and service differentiation from the

competition: Goal to own the market/space John Nash – Gaming Theory “Strategy to

control outcomes” ; control the process Apple Computer: a Strategy of product

differentiation through innovation by creativity. (CEO directed creative team)

Differentiation is a part of the complex area of “brand marketing” through product design/industrial design, corporate identity, advertising, public relations

“Tendency to Tolerate Mediocrity Peter Drucker, “Mediocrity is

like a disease, It contaminates and spreads.”

Tolerating indifferent performance in others is one who practices mediocrity.

1.) Shortage of qualified personnel; 2.) Practice of Seniority; 3.) False or inaccurate survey, testing, or peer review measurement of employee performance

Diagrams: Motivational intensity caused by employer and employee disparity in meeting goal and performance expectations—closing the alignment gap with incentives

“Managing By Objectives”1972 – Paul Mali

Achieving a Strong Strategic Position for Products/Services-Porter

Entry barriers to your market space: economy of scale, product patents/design, distribution channels, government regulations, etc.

Threat of Substitution: Apple iPhone competitors are Android OS, Windows OS, and others: Apple Brand #1, GUI easy to use. Design

Bargaining Power of buyers: market share and size Bargaining Power of suppliers: vendor costs and

suppliers, multiple sources Competitive challenges: Products, pricing, distribution,

alliances Strategies: 1.) Cost/Pricing Leadership; 2.) Differentiation

by design/function; 3.) Focus –Market Share, Target, USA

Formulating A Strategy Look Outward: assess organization’s environment,

strengths, PM Team Look Inward: assess strengths and weaknesses to

perform Identify multiple threats and opportunities-

EIR/Design Review Evaluate strategy impacts on all parts of your

organization, and/or the project Create Alignment: Critical to all participants in the

organization and/or project—transparency and accountability through defined communications channels.

RMB: Define process goals and milestones and have an exit strategy---backdoor or alternative strategies/plans-build, no build, incremental phases

“Thinking Out-Of-The Box” Needs, Values, Motives

and Incentives pushing toward meeting project goals or performing “the mission” successfully are difficult to measure in the context of society’s or an organization’s constantly changing value system.

Choice of Embracing or Rejecting Values/Goals