Chapter 11: Strategy and Performance Excellence
TRUE/FALSE
1. A strategy is a pattern or plan that integrates an organization’s major goals, policies, and action
sequences into a cohesive whole.
2. Mission is the pattern of decisions that determines and reveals an organization’s goals, policies, and
plans to meet the needs of its stakeholders.
3. Strategic planning is the process of envisioning the organization’s future and developing the necessary
goals, objectives, and action plans to achieve that future.
4. A key role of strategic planning is to align work processes and learning initiatives with an
organization’s strategic directions.
5. The Organizational Profile provides the “finer picture” of the various organizational parts and thus sets
the context for good strategic decisions.
6. The second group of questions in the Baldrige Organizational Profile is listed under the heading
“Organizational Environment.”
7. The term “management challenges” refers to those pressures that exert a decisive influence on an
organization’s likelihood of future success.
8. Strategic challenges frequently are driven by an organization’s future competitive position relative to
other providers of similar products or services.
9. Strategic objectives are what an organization must change or improve to remain or become
competitive.
10. Mission statements typically include details of resource commitments and time horizons for their
accomplishment.
11. An iterative process in which employees at the lower level in the organization ask what senior
management can do, what they need, and what conflicts may arise can avoid many of the
implementation problems that managers typically face.
12. In the policy deployment process, employees negotiate with management the performance measures
that are used to indicate progress toward accomplishing the objectives.
13. Catchball is an up, down, and sideways communication process as opposed to an autocratic, top-down
management style.
14. 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.
15. 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.”
16. Matrix data analysis takes data and arranges them to display quantitative relationships among variables
to make them more easily understood and analyzed.
17. 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.
18. The use of arrow diagramming has generally been confined to technical experts.
19. 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.
20. Traditional organizations tend to develop structures that help them to maintain flexibility.
21. In line and staff organizations, staff departments carry out the functions of marketing, finance, and
production for the organization.
22. In the line and staff form of organization structure, quality managers and inspectors may take on the
role of guardians of quality.
23. Core competencies may involve technology expertise, unique service offerings, a marketplace niche,
or a particular business acumen.
24. Outsourcing refers to the practice of transferring the operations of a business function to an outside
supplier.
25. In many cases, the decision to vertically integrate is based solely on costs without considering the
impact on other business priorities.
MULTIPLE CHOICE
1. 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
organizations strengths, weaknesses, opportunities, and threats
b.
Develop and refine a systematic approach for conducting strategic planning and setting
strategic objectives
c.
Understand the competitive environment, the principal factors that determine success, the
organization’s core competencies, and strategic challenges
d.
Execute mergers and acquisitions, with an aim to expand business globally and to form
coalitions and cartels to achieve the same
2. 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.
mission statement
b.
strategy roadmap
c.
value statement
d.
leadership statement
3. 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
4. _____ set an organization’s longer-term directions and guide resource allocation decisions.
a.
Management values
b.
Strategic objectives
c.
Core competencies
d.
Workforce management principles
5. Effective implementation of a strategy is achieved through action plans. This is called _____.
a.
proactive implementation
b.
installation
c.
deployment
d.
strategic implementation
6. 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
7. _____ 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
c.
Action plan development
d.
Operations planning and scheduling
8. If everyone is able to answer the question, “What does strategy mean in terms that I can act on,” which
aspect of deployment will it address?
a.
Improperly defined organizational objectives
b.
Lack of alignment across the organization
c.
Misallocation of resources
d.
Insufficient operational measures
9. One of the reasons for poor deployment of action plans is insufficient operational measures. Which of
the following is a feature of this aspect?
a.
New legislative mandates
b.
Dedicating resources to make improvements or changes in those areas that are critical
c.
Lack of changes resulting from new ventures
d.
Insignificant innovations in products, services, and technology
10. 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
11. _____ 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.
Mission deployment
b.
Policy deployment
c.
Value development
d.
Quality orientation
12. 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
13. Which of the following is true of the policy deployment process?
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.
14. 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
15. In policy deployment, the _____ process is called catchball.
a.
negotiation
b.
implementation
c.
review
d.
communication
16. 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.
Initiatives to reduce collective bargaining through union involvement
c.
Initiatives to foster knowledge sharing and organizational learning
d.
Partnerships with educational institutions to help ensure the future supply of well-prepared
employees
17. 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
18. 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
19. The term “_____” refers to those pressures that exert a decisive influence on an organization’s
likelihood of future success.
a.
strategic challenges
b.
core competencies
c.
work systems
d.
strategic inertia
20. All of 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.
the regulatory environment.
d.
the long-term organizational sustainability.
21. 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
22. 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
23. The clarification of authority, responsibility, reporting lines, and performance standards among
individuals at each level of the organization is referred to as _____.
a.
hoshin kanri
b.
the QID
c.
the organizational structure
d.
organizational governance
24. In the context of the organization, which of the following is a factor that affects how work is
organized?
a.
Suppliers and partners
b.
Competitiveness
c.
Unionization of personnel
d.
Customer influences
25. An organization chart shows the _____ of the formal organization.
a.
business model
b.
apparent structure
c.
competitive position
d.
workforce distribution
26. 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
27. 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.
d.
decreases the coordination in a project work.
28. Which of the following is an advantage of the matrix type of organizations?
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.
29. _____ 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
30. Decisions about work systems are _____.
a.
operational
b.
strategic
c.
customer-focused
d.
administrative
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 provides focus to the organizational objectives.
b.
It contributes significantly to customer benefits.
c.
It provides access to many products and markets.
d.
It is difficult for competitors to imitate.
32. _____ is the process by which certain business functions are acquired and consolidated within a firm.
a.
Acquisition
b.
Outsourcing
c.
Collaboration
d.
Vertical integration
33. 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
ESSAY
1. Describe the Baldrige Organizational Profile.
2. Why are action plans important in strategy deployment?
3. What are the Seven Management and Planning Tools?
4. What are the factors that affect how work is organized in the context of an organization?
5. What are core competencies? Describe its characteristics.
CASE
1. In Cigna’s Holistic Six Sigma Model, tactical execution through _____ refers to an accelerated process
streamlining event.
a. kaizen
b. hoshin kanri
c. DMAIC
d. DFSS
2. Which of the following is a key challenge of the U.S. health care marketplace?
a. A shift away from value-based models of health care toward a performance-based system
b. Rising consumer expectations curtailed by greater transparency of quality
c. The decreasing number of Americans who use emergency rooms for primary care because they lack
health insurance
d. Demographic changes that necessitate the need for more care availability
3. When Six Sigma was launched at Cigna, leadership made it clear the approach would _____.
a. be holistic
b. focus on health insurance
c. be innovation
d. focus exclusively on productivity improvement
4. In Cigna’s Holistic Six Sigma Model, _____ solves root cause problems to optimize existing
processes.
a. hoshin kanri
b. kaizen
c. DMAIC
d. DFSS
ANS:
5. What simple fact could help explain the rapid growth, holistic use, and impressive results of Six Sigma
at Cigna?
6. What are the five strategic imperatives of Cigna?
ANS:
7. Discuss the strategic planning process used by Cigna.
8. As part of its strategic planning process, managers at Cigna learn what behaviors are required to ensure
effectiveness. Discuss.
9. How does Six Sigma help Cigna improve quality and productivity?
10. The challenges of the huge cost of care and quality of care facing the U.S. health care industry have
led Cigna 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?
11. What is Branch-Smith Printing Division’s vision statement?
a. The objective of the Branch-Smith Printing Division is to provide expert solutions for publishers.
b. Branch-Smith Printing will seek to continuously improve results for all stakeholders through the
application of its Innovating Excellence Process.
c. Our single focus will continue to be helping customers all over the world succeed in their
businesses.
d. Market leading business results through an expert team providing turnkey solutions to customer
partners.
12. What is the mission statement of Branch-Smith Printing Division?
a. To provide expert solutions for publishers
b. To 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
13. What is the quality policy of 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.
14. What is the strategic planning process of Branch-Smith Printing Division?
15. What are the steps in the Branch-Smith strategic planning process?
