Strategy and Performance Excellence 16
It began with the development of an order fulfillment process psyche that transcended
departmental thinking regarding purchasing, forming, selection and shipping.
Management and union leadership were engaged to explain and communicate this new
II. Clifton Metal Works
1. The current mission statement of Clifton Metal Works (CMW) appears to lack focus. It
doesn’t tell why the company is in business, other than to “improve return on investment.”
Therefore, it is not adequate to provide the strategic direction necessary for CMW to
move forward. Using this mission statement CMW could be making light bulbs or
personal computers rather than castings.
2. The mission statement could be improved by including a definition of products or
services, types of markets, important customer needs, or distinctive competencies. Their
mission statement might be:
CMW’s mission is to produce superior customized cast metal products for markets
Their vision might be:
CMW’s vision is to be an outstanding company that leads the industry in quality,
technological innovations, service, and productivity. We will strive to accomplish
our vision by embracing superior customer focus, flexibility, adaptability,
innovation, employee involvement and teamwork, with a constant awareness that
productivity, cost effectiveness, and competitive pricing are vital to business
profitability and success.
Their values seem to be:
Quality and service using a Deming philosophy
Strategy and Performance Excellence 17
IV. TRIVIEW BANK—CORE COMPETENCIES AND WORK SYSTEMS DESIGN
Although not explicitly required for this exercise, the feedback report comments for this case,
based on the Baldrige criteria, are presented below, since they are enlightening and serve the
purpose of responding to the issues of the Category 6 and the response of TriView Bank to the
key questions. The company’s response in their application will not be duplicated here. See the
TriView Bank case materials in the Student Companion Site materials folder for this chapter.
Answers to case questions
(1) The information provided in 6.1a(1) and 6.1a(2) relating to how the organization
determines its core competencies outlines how TriView defined its initial set of core
competencies in 2011. The core competencies have been reviewed and modified as
needed annually as part of the SPP. Core competencies include “Legendary Service”:
(2) Section 6.1b of TriView’s Baldrige application describes how they design and innovate
their overall work systems and how they decide which processes within the overall work
systems will be internal to the organization (key work processes) and which will use
18
6.1 Work Systems Design
++
Strength
Item Ref.
The applicant’s work system (Figure 6.1-1) facilitates Legendary Service and enables the organization to
determine, segment, and manages its work processes. Work system design decisions are made by the
EMC during the SPP, and feedback is incorporated from multiple customers, suppliers, partners, and
market sources. Segmentation by production and enabling processes may help the applicant determine
which processes should be internal or external.
a(1)
The Emergency Readiness Plan (ERP; Figure 6.1-5) includes requirements for resumption of operations
after a variety of events (e.g., severe weather, workplace violence), as well as periodic drills conducted
with local emergency professionals to help ensure effective training and to identify improvements.
Postdrill review and analysis also identify needed improvements, such as addressing the H1N1 flu
pandemic.
c
Opportunities for Improvement
—
Opportunity for Improvement
Item Ref.
The applicant does not describe a systematic process for designing its work system (Figure 6.1-2), which
may impact its management of work processes within the system. Also, it is not evident how the
organization addresses the emerging core competency of acquisitions and mergers, which may require
Strategy and Performance Excellence 19
It is not clear how well the applicant’s ERP (Figure 6.1-5) is deployed to associates at the Operations
Center, DirectServe Center, and the newly acquired mortgage company, including how their input is
collected during Step 1, Assess risk. A systematic approach to determine and deploy emergency
requirements may enable the organization to better recover from emergencies.
c
V. TriView Bank – Strategic Planning
Although not explicitly required for this exercise, the feedback report comments for this case,
based on the Baldrige criteria, are used below, since they are enlightening and serve the purpose
of responding to the issues of the Category 6 and the response of Triview Bank to the key
questions. The company’s response in their application will not be duplicated here. See the
TriView case materials in the Bonus materials folder on the Premium website for this chapter.
Answers to case questions
The following factors in the Organizational Profile appear to be most important in evaluating
their strategic planning and deployment approaches.
1. Mission – to provide customers with financial services and promote the growth and
economic well- being of all the communities we serve.
2. Core competencies include “Legendary Service”: understanding and exceeding customer
3. Key suppliers provide mail/telemarketing services, advertising, office supplies, check
4. Strategic Challenges:
Addressing the many changes in banking regulations and more regulations coming in the
future, meeting earnings targets while serving increasing numbers of customers using
low-margin services, addressing the loss of public confidence in the financial industry in
Strategy and Performance Excellence 20
5. Strategic Advantages
Taking advantage of low-cost TARP funds (5%) through 2013, hometown bank with
reputation for stability and integrity, resulting in increasing market share, numerous
2.1 Strategy Development
Key Factors
1. Mission – to provide customers with financial services and promote the growth
and economic well– being of all the communities we serve.
Vision – To be recognized as the number one community bank in Legendary Service.
2. Core competencies include “Legendary Service”: understanding and exceeding
customer expectations; “Operational Excellence”: demonstrating process and
performance discipline; and “Agility”: making and implementing decisions quickly.
The applicant is developing a core competency in mergers and acquisitions.
3. Key suppliers provide mail/telemarketing services, advertising, office supplies, check
4. Strategic Challenges:
Addressing the many changes in banking regulations and more regulations coming in the
future,
meeting earnings targets while serving increasing numbers of customers using low-
margin services, addressing the loss of public confidence in the
Strategy and Performance Excellence 21
controls,
5. Strategic Advantages
•Taking advantage of low-cost TARP funds (5%) through 2013, hometown bank
Strengths
++
Strength
Item Ref.
The applicant’s SPP (Figure 2.1-1) is aligned with key customer, workforce, and work process
elements. Participants include the BOD, the EMC, the Marketing Team, branch and functional
managers, and an external economist, and inputs/outputs include Voice of the Customer (VOC) sources,
The applicant’s integrated approach to strategy development helps identify blind spots and enable
agility as risks and scenarios change during the year. The applicant develops a macro view of the
++
Strength
Item Ref.
The applicant’s strategic objectives for customers, associates, processes, and regulatory and financial
interests (Figure 2.2-1) are each aligned with the core competencies and strategic advantages to be
leveraged, the strategic challenges to be addressed, the most important goals, and short- and long-term
action plans with timetables for accomplishment. This snapshot view also includes scorecard metrics
with short-term, long-term, and some comparative projections.
b(1)
Strategy and Performance Excellence 22
Opportunities for Improvement
—
Opportunity for Improvement
Item Ref.
The applicant does not appear to address several strategic objective considerations. These include the
There is limited evidence of cycles of learning and improvement for the steps or activities used in
developing strategies. For instance, the applicant provides few examples of improvements resulting
from the biannual evaluation of the SPP (e.g., execution of process steps or activities, participants,
2.2 Strategy Implementation
Strengths
++
Strength
Item Ref.
A systematic “catchball” process transitions the SPP from “development” to “deployment” by aligning
action plans with strategies for the three scenarios derived earlier. Key short- and long-term action
plans for the 2011 sustain scenario (Figure 2.2-1) are aligned with strategic objectives. Planned
product and service changes include adapting face-to–face Legendary Service to work seamlessly with
a customer base that is connected electronically via Internet and cell phone.
a(1)
Strategy and Performance Excellence 23
++
Strength
Item Ref.
The applicant aligns action plan deployment with leadership, workforce, and work system
processes. Action plans cascade from leadership to associates through deployment meetings; rapid
deployment teams use the TOE process to change the business, update work system design, and
Opportunities for Improvement
—
Opportunity for Improvement
Item Ref.
The applicant does not describe plans to address potential impacts on and changes to the workforce.
These include the pending retirement wave, increasingly difficult customers, cost reductions that
A systematic process is not evident for modifying existing action plans and executing new plans
when indicated. For example, it is not clear how modified action plans are deployed through the
In reference to strategy development, TriView’s management might be advised to develop
systematic processes for determining strategic challenges, strategic advantages, or time horizons
in order to fully align action plans with improving overall organizational effectiveness and
Strategy and Performance Excellence 24
capability. Also, they should address and include analysis of data specific to opportunities, major
shifts in technology or competition, and long-term sustainability within the SPP, to meet its
strategic challenge of volatility in niche markets. Finally, TriView should be advised to use a
fact-based approach to evaluate and improve its SPP.
Related to strategy deployment, TriView’s senior leadership teams should be advised to:
• clarify the process and methods to be used by the SLT-led teams to develop action plans for
Strategy and Performance Excellence 25
Instructor Reserve Materials
Case: The Creative Design Group
1. See the Affinity Diagram, below. It is constructed similar to Figure 11.4. The diagram for
CDG shows categories that include customer service, team environment,
facilities/technology, design goals, worker amenities, project/financial controls,
AFFINITY DIAGRAM FOR CREATIVE DESIGN GROUP
Customer Service
Speed
Quality
Creativity
Value
Design Goals
“Wow” customer
Team Environment
Independent design
Creative direction
CSE project costing
Worker Amenities
Casual dress code
Competitive Personnel Issues
Fewer design graduates
Difficulty in recruiting talent
Facilities/Technology
Modern computers
Modern software
Excellent lighting
Modern communications
Project/Financial Control
CSE- project contact point
Competition
(Business/Financial Issues)
Decreasing % of bids accepted
Declining ROI
2. See the tree diagram, below. It can be seen how plans are “cascaded” going from left to
right. They become more specific, resulting in action plans to deal with competitive
business issues of advertising and estimating by taking action to improve advertising and
Strategy and Performance Excellence 26
Make advertising
more effective
Redesign website
Place ads in
business
Develop co-op
position
Develop action
plans
TREE DIAGRAM FOR CDG ACTION PLANNING
graphics
Strategy and Performance Excellence 27
3.a. Matrix Data Analysis
The Matrix Data Analysis chart shown below confirms that by using the weighted ratings
across all competitors, the correct selection is CCG. CCG has a total of 7.0 points (out of
a possible 10), while the next closest competitor is COG, with a total of 6.1.
Supplier
Characteristics
Weights
Rating
for
CCG
Rating
for
COG
Rating
for
COW
Wtd.
Value
CCG
Wtd.
Value
COG
Wtd.
Value
COW
System design
reliability
0.3
8
6
5
2.4
1.8
1.5
Note: Independent ratings on a scale of 1-10 (where 10 is best) were performed by the Small
Business Council of Qualdale, where CDG is located.
Suppliers: CCG = Creative Computer Group
3.b) Questions that CDG’s management should ask Charlie include:
1. Will we be able to continue working while you’re installing the new system?
2. If not, how long will we be down?
3. Can you provide us with a detailed project plan so that we will know when various
milestones have been reached?
Delivery
timeliness
0.2
7
4
9
1.4
0.2
5
7
6
1.0
0.2
9
6
4
1.8
0.1
4
9
6
0.4
1.0
7.0
Strategy and Performance Excellence 28
Case – The Graduation Party
1. In order to develop a PERT-type network diagram activities must first be labeled, and
precedence relationships must be established.
Activity Precedent(s)
A. Pick date –
B. Estimate costs A
C. Determine budget B
D. Locate and “book” a hall C
E. Hire a DJ C
See the interrelationship digraph below.
b) Activity C (Determine budget) is obviously a critical activity on which a number of
Strategy and Performance Excellence 29
3. a) and b) Using data from the interrelationship digraph (see problem 1), an arrow diagram
can be established. The Arrow Diagram, shown above, shows precedent relationships for
each activity.
The technique has been extended a little further by the use of the PERT/CPM technique
in order to calculate the critical path and the estimated project completion time, which are
C
M
G
INTERRELATIONSHIP DIAGRAPH DMZ PARTY PLAN
Strategy and Performance Excellence 30
B
M
G
J
Q
ARROW DIAGRAM FOR DMZ PARTY PLAN
t = 3
t = 2
t = 1
t = 2
t = 1
t = 1