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Indicate whether the statement is true or false.
1. A key role of strategic planning is to align work processes and learning initiatives with an organization’s strategic
directions.
a.
True
b.
False
2. An interrelationship digraph shows that every idea can be logically linked with more than one other idea at a time and
allows for “linear thinking” rather than “lateral thinking.”
a.
True
b.
False
3. A vision statement of a firm defines its reason for existence; it answers the question “Why are we in business?”
a.
True
b.
False
4. Strategic planning is the process of envisioning the organization’s future and developing the necessary goals,
objectives, and action plans to achieve that future.
a.
True
b.
False
5. Strategic challenges frequently are driven by an organization’s future competitive position relative to other providers of
similar products or services.
a.
True
b.
False
6. Strategic objectives are what an organization must change or improve to remain or become competitive.
a.
True
b.
False
7. Core competencies may involve technology expertise, unique service offerings, a marketplace niche, or a particular
business acumen.
a.
True
b.
False
8. Catchball is an up, down, and sideways communication process as opposed to an autocratic, top-down management
style.
a.
True
b.
False
9. Traditional organizations tend to develop structures that help them to maintain flexibility.
a.
True
b.
False
10. In line and staff organizations, staff departments carry out the functions of marketing, finance, and production for the
organization.
a.
True
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b.
False
11. Process decision program charts are spreadsheets that graphically display relationships between ideas, activities, or
other dimensions in such a way as to provide logical connecting points between each item.
a.
True
b.
False
12. The Organizational Profile provides the “finer picture” of the various organizational parts and thus sets the context for
good strategic decisions.
a.
True
b.
False
13. Matrix data analysis takes data and arranges them to display quantitative relationships among variables to make them
more easily understood and analyzed.
a.
True
b.
False
14. In the policy deployment process, middle management negotiates with the implementation teams the final short-term
objectives and the performance measures that are used to indicate progress toward accomplishing the objectives.
a.
True
b.
False
15. The second group of questions in the Baldrige Organizational Profile is listed under the heading “Organizational
Environment.”
a.
True
b.
False
16. A strategy is a pattern or plan that integrates an organization’s major goals, policies, and action sequences into a
cohesive whole.
a.
True
b.
False
17. An iterative process in which senior management asks what lower levels of the organization can do, what they need,
and what conflicts may arise can avoid many of the strategy implementation problems that managers typically face.
a.
True
b.
False
18. Effective strategy deployment is dependent upon, and tends to shape, organizational structure because the
organizational structure must be aligned with and support the accomplishment of strategic initiatives.
a.
True
b.
False
19. In the line and staff form of organization structure, quality managers and inspectors may take on the role of guardians
of quality.
a.
True
b.
False
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20. The use of arrow diagramming has generally been confined to technical experts.
a.
True
b.
False
21. Mission is the pattern of decisions that determines and reveals an organization’s goals, policies, and plans to meet the
needs of its stakeholders.
a.
True
b.
False
22. In many cases, the decision to vertically integrate is based solely on costs without considering the impact on other
business priorities.
a.
True
b.
False
23. The Seven Management and Planning Tools had their roots in post-World War II operations research developments in
Japan but were combined and refined by several U.S. companies over the past several decades as part of their planning
processes.
a.
True
b.
False
24. Outsourcing refers to the practice of transferring the operations of a business function to an outside supplier.
a.
True
b.
False
25. The term “management challenges” refers to those pressures that exert a decisive influence on an organization’s
likelihood of future success.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
26. Which of the following is a proper description of a tree diagram?
a.
A tool for organizing a large number of ideas, opinions, and facts relating to a broad problem or subject area
b.
A method for mapping out every conceivable event and contingency that can occur when moving from a
problem statement to possible solutions
c.
A tool to take data and arrange them to display quantitative relationships among variables to make them more
easily understood and analyzed
d.
A tool to map out the paths and tasks necessary to complete a specific project or reach a specified goal
27. In the context of organizational structure, which of the following is one of the factors that affects how work is
organized?
a.
Suppliers and partners
b.
Competitiveness
c.
Unionization of personnel
d.
Customer influences
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28. All the following are key factors included in an environmental assessment EXCEPT
a.
the organization’s SWOT profile.
b.
the workforce profile and future requirements.
c.
early indications of major shifts in technology.
d.
the long-term organizational sustainability.
29. According to the policy deployment process diagram, a catchball situation occurs between the _____ stage and the
_____ stage.
a.
corporate vision; long-term objectives
b.
long-term objectives; midterm objectives
c.
short-term objectives; policy deployment plan
d.
policy deployment plan; plan approval
30. Which of the following is a management and planning tool for organizing a large number of ideas, opinions, and facts
relating to a broad problem or subject area?
a.
Affinity diagram
b.
Interrelationship diagraph
c.
Matrix diagram
d.
Process decision program chart
31. Gary Hamel and C. K. Prahalad suggested that a core competency meets three conditions. Which of the following is
NOT one of them?
a.
It is difficult for competitors to imitate.
b.
It contributes significantly to customer benefits.
c.
It provides access to many products and markets.
d.
It provides focus to the organizational objectives.
32. _____ is essentially a quality-based approach to executing a strategy by ensuring that all employees understand the
business direction and are working according to a plan to make the vision a reality.
a.
Policy deployment
b.
Mission development
c.
Value development
d.
Quality orientation
33. _____ coordinate the internal work processes and the external resources necessary to develop, produce, and deliver
products and services to customers and to succeed in the marketplace.
a.
Work systems
b.
Operations scheduling systems
c.
Organizational charts
d.
Personnel management systems
34. _____ represents the critical stage in planning when strategic objectives and goals are made specific so that effective,
organization-wide understanding and deployment are possible.
a.
Mission statement development
b.
Vision statement development
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c.
Action plan development
d.
Operations planning and scheduling
35. When Six Sigma was launched at Cigna Corp., leadership made it clear the approach would
a.
focus exclusively on productivity improvement.
b.
focus on health insurance.
c.
be innovative.
d.
be holistic.
36. In the policy deployment process, the _____ forms the basis for shorter-term planning.
a.
operational plan
b.
organizational objective
c.
mission statement
d.
long-term strategic plan
37. A firm purchasing a key supplier to strengthen its value chain is an example of
a.
collaboration.
b.
outsourcing.
c.
vertical integration.
d.
unrelated diversification.
38. An organization chart shows the _____ of the formal organization.
a.
business model
b.
apparent structure
c.
competitive position
d.
workforce distribution
39. What is the quality policy of the Branch-Smith Printing Division?
a.
Our single focus will continue to be helping customers all over the world succeed in their businesses.
b.
Market leading business results through an expert team providing turnkey solutions to customer partners.
c.
Branch-Smith Printing will seek to continuously improve results for all stakeholders through the application of
its Innovating Excellence Process.
d.
The objective of the Branch-Smith Printing Division is to provide expert solutions for publishers.
40. Japanese firms introduced a newer deployment process adapted by Japanese and American companies known as
a.
SWOT.
b.
hoshin planning.
c.
management by exception.
d.
management by objectives.
41. A _____ might include a definition of products and services an organization provides, technologies used to provide
these products and services, types of markets, important customer needs, and distinctive competencies or the expertise that
sets the firm apart from others.
a.
strategy roadmap
b.
mission statement
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c.
value statement
d.
leadership statement
42. In Cigna Corp.’s holistic Six Sigma model, _____ solves root cause problems to optimize existing processes
a.
hoshin kanri
b.
kaizen
c.
DMAIC
d.
DFSS
43. Which of the following descriptions regarding a key challenge of the U.S. health care marketplace is true?
a.
A shift away from value-based models of health care toward a performance-based system
b.
Demographic changes that necessitate the need for more care availability
c.
The decreasing number of Americans who use emergency rooms for primary care because they lack health
insurance
d.
Rising consumer expectations curtailed by greater transparency of quality
44. _____ set an organization’s longer-term directions and guide resource allocation decisions.
a.
Management values
b.
Workforce principles
c.
Core competencies
d.
Strategic objectives
45. The _____ organization is the most prevalent type of structure for medium-sized to large firms.
a.
line
b.
line and staff
c.
staff
d.
matrix
46. Which of the following is NOT considered in strategic human resource plans?
a.
Redesign of the work organization to increase empowerment and decision-making or team-based participation
b.
Partnerships with educational institutions to help ensure the future supply of well-prepared employees
c.
Initiatives to foster knowledge sharing and organizational learning
d.
Initiatives to reduce collective bargaining through union involvement
47. In policy deployment, the _____ process is called catchball.
a.
negotiation
b.
implementation
c.
review
d.
communication
48. The major drawback of the matrix-type organization is that it
a.
can be used only for project work.
b.
requires split loyalty.
c.
decreases the efficiency of personnel use.
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d.
decreases the level of coordination in project work.
49. If everyone can answer the question, “What does strategy mean in terms that I can act on?” which of the reasons for
poor strategy deployment will have been addressed?
a.
Lack of alignment across the organization
b.
Improperly defined organizational goals
c.
Misallocation of resources
d.
Insufficient operational measures
50. What is the mission statement of the Branch-Smith Printing Division?
a.
To provide expert solutions for publishers
b.
To provide market leading business results through an expert team providing turnkey solutions to customer
partners
c.
To continuously improve results for all stakeholders through the application of its Innovating Excellence
Process
d.
To become the industry leader and achieve superior growth and market share
51. The term _____ refers to those pressures that exert a decisive influence on an organization’s likelihood of future
success.
a.
systems
b.
competencies
c.
strategic challenges
d.
strategic inertia
52. Which of the following is an advantage of the matrix type of organization?
a.
It is a one-size-fits-all quality organization.
b.
It improves the efficiency of personnel use.
c.
The division of loyalty is especially advantageous in a quality assurance area.
d.
It is especially suited for small and medium firms.
53. In Cigna Corp.’s holistic Six Sigma model, tactical execution through _____ refers to an accelerated process
streamlining event.
a.
DMAIC
b.
hoshin kanri
c.
kaizen
d.
DFSS
54. Which of the following statements regarding the policy deployment process is true?
a.
The supervisory level has the primary responsibility of actively participating in generating strategies and
action plans to attain a vision.
b.
At the top management level, progressively more detailed and concrete means to accomplish the objectives are
determined.
c.
Employees negotiate the final short-term objectives with the implementation teams.
d.
Middle management negotiates with senior management regarding the objectives that will achieve the
strategies.
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55. The clarification of authority, responsibility, reporting lines, and performance standards among individuals at each
level of the organization is referred to as
a.
core competencies.
b.
the QID.
c.
organizational governance.
d.
the organizational structure.
56. The goal of _____ is to envision the future for purposes of decision making and resource allocation.
a.
environmental assessment
b.
strategy development
c.
work systems
d.
core competencies
57. A _____ statement articulates the basic characteristics that shape an organization’s view of the future and its strategy.
a.
value
b.
mission
c.
vision
d.
leadership
58. With _____, top management is responsible for developing and communicating a vision, and then building
organization-wide commitment to its achievement.
a.
policy deployment
b.
value development
c.
mission development
d.
quality deployment
59. What is the vision statement of the Branch-Smith Printing Division?
a.
The objective of the Branch-Smith Printing Division is to provide expert solutions for publishers.
b.
Market-leading business results through an expert team providing turnkey solutions to customer partners.
c.
Our single focus will continue to be helping customers all over the world succeed in their businesses.
d.
Branch-Smith Printing will seek to continuously improve results for all stakeholders through the application of
its Innovating Excellence Process.
60. _____ is the process by which certain business functions are acquired and consolidated within a firm.
a.
Acquisition
b.
Outsourcing
c.
Collaboration
d.
Vertical integration
61. An organization must address certain key practices to achieve a strategic focus on performance excellence. Which of
the following is NOT one of them?
a.
Gather and analyze relevant data and information pertaining to such factors as the organization’s strengths,
weaknesses, opportunities, and threats
b.
Execute mergers and acquisitions, with an aim to expand business globally and to form coalitions and cartels
to achieve the same
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c.
Understand the competitive environment, the principal factors that determine success, the organization’s core
competencies, and strategic challenges
d.
Develop and refine a systematic approach for conducting strategic planning and setting strategic objectives
62. Effective implementation of a strategy through action plans is called
a.
deployment.
b.
installation.
c.
proactive implementation.
d.
strategic implementation.
63. Essentially, strategy deployment links the _____, who focus on “doing the right thing,” with the _____, whose focus is
on “doing things right.”
a.
management; employees
b.
leaders; supervisors
c.
innovators; coordinators
d.
planners; doers
64. Decisions about work systems are
a.
operational.
b.
strategic.
c.
customer-focused.
d.
administrative.
65. How does Six Sigma help Cigna Corp. improve quality and productivity?
66. Discuss the strategic planning process used by Cigna Corp.
67. As part of its strategic planning process, Cigna Corp.’s managers are required to learn behaviors that ensure what five
positive outcomes?
68. The challenges of the huge cost of quality care facing the U.S. health care industry have led Cigna Corp. managers to
wonder whether they could extend its improvement methodology to the industry as a whole. What are some of the key
challenges in the U.S. health care marketplace?
69. What are the five strategic imperatives of Cigna Corp?
70. What simple fact could help explain the rapid growth, holistic use, and impressive results of Six Sigma at Cigna?
71. Describe the strategic planning process of the Branch-Smith Printing Division.
72. What are the steps in the Branch-Smith strategic planning process?
73. Why are action plans important in strategy deployment?
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74. What are the Seven Management and Planning Tools?
75. Describe the origins of the Seven Management and Planning Tools.
76. What are the factors that affect how work is organized in the context of organizational structure?
77. What are core competencies? What are the three conditions that Gary Hamel and C. K. Prahalad suggested that a core
competency must meet?
78. Describe the Baldrige Organizational Profile.
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52. b
53. c
54. d
55. d
56. b
57. c
58. a
59. b
60. d
61. b
62. a
63. d
64. b
65. Cigna looks at the cost of doing nothing differently, figures how much improvement it can make, and then comes up
with a dollar differential. A 0.1 percent improvement can save millions. While initial concentration was on efforts that
would bring quick and significant results, Six Sigma at Cigna has matured, and it has increasingly focused on impacting
goals of the most strategic importance to the organization.
66. Strategic planning is an absolute necessity in a company like Cigna that competes in a tough, volatile marketplace. Six
Sigma is viewed as a means to execute the strategic plan effectively and to do so in a way that enhances quality, reduces
costs, and makes the company a stronger competitor. Executives and managers learn the basics of Six Sigma, lean tools,
continuous improvement, and the basics of design for Six Sigma.
67. As part of its strategic planning process, managers at Cigna learn what behaviors are required to ensure the following:
1. There is continuous improvement.
2. The right projects are selected with the right people to lead them.
3. There is ongoing assessment of projects.
4. People have time to serve on projects.
5. Managers ask the right questions during each phase of a project.
68. Some of the key challenges in the U.S. health care marketplace include the following:
1. A shift away from cost-based models of health care toward a value-based system
2. Medical care cost inflation
3. Demographic changes that necessitate the need for more care availability
4. Inconsistent quality of care
5. The growing number of Americans who use emergency rooms for primary care because they lack health insurance
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6. Rising consumer expectations fueled by greater transparency of quality
69. Cigna has the following five strategic imperatives:
1. Establish a meaningful cost advantage relative to the competition.
2. Help improve the health and well-being of members and the people Cigna insures.
3. Bring innovative products and services to market.
4. Become the partner of choice to its customers.
5. Create a winning environment in the organization.
70. At Cigna Corp., a 28,000-employee provider of employee health care and related insurance benefits, the vice president
of Six Sigma business excellence is just two levels below the CEO on the organizational chart. The woman who holds this
title, Leslie Behnke, reports directly to a member of the corporation’s management team. This simple fact helps to explain
the rapid growth, holistic use, and impressive results of Six Sigma at Cigna.
71. The strategic planning process (SPP) is a key tool that the Branch-Smith Printing Division uses to visualize the ideal
future and create strategies and plans to achieve it, and to incorporate improvement opportunities into prioritized action
plans. Strategic planning occurs formally each year with updates and tracking conducted monthly during management
reviews. Ongoing updates throughout the year allow the company to correct direction or to proactively respond to risks
and opportunities.
72. The formal planning activity is conducted during the fall of each year by the Print Leadership Team (PLT) through a
series of meetings on and off site. The eight steps are as follows:
1. Evaluate and improve prior year strategic plan process
2. Focus the organization
3. Prior year performance to plan
4. Business analysis to evaluate the external environment to forecast changing trends and gain market requirements
5. Plan and update short- and longer-term strategies and actions to move the company toward its vision and objectives
6. Cascaded deployment; the company creates documents and methods to support deployment of the plan
7. Budget incorporation
8. Ongoing review of action plans
73. Action plan development represents the critical stage in planning when strategic objectives and goals are made
specific so that effective, organization-wide understanding and deployment are possible. Action plans typically include
details of resource commitments and time horizons for their accomplishment. Action plans could entail designing efficient
processes and creating an accounting system that tracks activity-level costs, aligned for the organization as a whole.
74. Managers may use a variety of tools and techniques, known as the Seven Management and Planning Tools, to
implement policy deployment. These tools are particularly useful in structuring unstructured ideas, making strategic plans,
and organizing and controlling large, complex projects. They are as follows:
1. Affinity diagram
2. Interrelationship diagraph
3. Tree diagram
4. Matrix diagram
5. Matrix data analysis
6. Process decision program chart
7. Arrow diagram
75. The Seven Management and Planning Tools had their roots in post-World War II operations research developments in
the United States, but were combined and refined by several Japanese companies over the past several decades as part of
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