Strategic Management Process
Strategic Management Process Includes Four Activities:
1. Review and define the organizational mission.
2. Set long-range goals and objectives.
3. Analyze and formulate strategies to reach objectives.
4. Implement strategies through projects.
Strategy, Objectives and Project Linkages
Organization: Mission --> Objectives
Cause-and-Effect Worksheet Example
Click here for larger version of above
diagram
Project Screening Process
Project proposal idea
||
|
V
Data collection and backup <-- Need strategic fit ROI/payback risk
||
|
V
Abandon <-- Self evaluation of project by criteria
|| (Pursue)
|
V
Periodic reassessment of priorities <--> Priority team evaluates proposal and reviews portfolio for risk balance --> Return for more information
<-- Reject|
| (Accept)
|
V
Hold for resources ---- Assign priority, Assign resources, Assign project manager, Evaluate progress
Project Screening Matrix
For any given project(s)/project proposal(s) within an organization (i.e. Project 1 through Project n), this matrix assigns weight to the following project criteria:
- Stay with core competencies
- Strategic fit
- Urgency
- 25% of sales from new products
- Reduce defects to less than 1%
- Improve customer loyalty
- FOI of 18% plus
- Weighted total
Project Priority System
Annually (Long-range plan) / Ongoing (Project proposals for major projects)
… both lead to…
Monthly
Priority team: Prioritize major projects (includes Project priority and Risk analysis) --> Allocating resources --> Major project priority and status report
Functional managers identify available resources --> Allocating resources --> Assign project managers --> Feedback status--ongoing projects
Rank Objectives
Analyze objective independently in three dimensions
1. Seriousness -- What is the current impact of the results of the objective on the organization?
(0) Small impact <-----------> (10) Large Impact
2. Urgency -- Time factor. What will be the relative consequences of not taking action over the next 12 months?
(0) Can defer <-----------> (10) Must take action
3. Future seriousness -- What is the chance of the objectives seriousness changing over time?
(0) Decrease or remain same <-----------> (10) Dramatically increase
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Priority Analysis
Includes:
- Project number
- Must objectives (e.g.: All activities meet current legal, safety, and environmental standards; All new products will have a complete market analysis)
- Must meet if impacts
- Total weighted score
- Priority
Major Project Proposal
Includes:
- Date
- Project Number
- Project Title
- Responsible Manager (name/signature)
- Project Manager (name/signature)
- Project type/categorization: General Support, Quality, Cost reduction, Legal, new Product, Capacity
- Effort used (man-hours)
- Problem definition: Describe the problem/opportunity
- Goal definition: Describe the project goal
- Objective definition: Performance: Quantify the savings/benefits you expect from the project; Cost: Labor hours, materials, methods, equipment?; Schedule: Overall duration in months
Above: Sample proposal document
Risk Analysis
Addresses question: What are the three major risks for this project?
Risk Analysis report includes criteria similar to Priority Analysis:
- Project number
- Must objectives (e.g.: All activities meet current legal, safety, and environmental standards; All new products will have a complete market analysis)
- Must meet if impacts
- Want objectives (Provides immediate response to field problems; "Create $5 million in new sales by 199x"; Improve external customer service)
- Total weighted score
- Priority
Above: Sample Risk Analysis report
