Alignment of Strategic Planning and Organizational Structure

what is an organization?

- Social Arrangements

- Organized around Collective Goals

- With People who perform accepted roles and responsibilities

- Have Unique Culture

not all organizations are the ____

same

organizations do not _____ the same

remain

what is the mckinsey 7S model?

a framework for organizational effectiveness that focuses on seven internal factors that must be aligned

what are the 7S's in the mckinsey 7S model?

structure, skills, systems, style, strategy, staff, shared values

what are the advantages of the mckinsey 7s model?

- Coherence and synced action

- Effective tracking of change elements

- Longstanding theory

what are the disadvantages of the mckinsey 7s model?

- Long term model

- No consideration for external factors

- Does not spell out generic components like Marketing, finance, logistics

what are the hard elements of the mckinsey 7s model?

strategy, structure, systems

- easier to measure

what are the soft elements of the mckinsey 7s framework?

shared values, style, skills, staff

- harder to measure

what is strategy?

what is company trying to do to gain comparative advantage/to achieve a sustainable competitive advantage

- well curated business plan

strategy: everyones goal is what?

to make money

strategy: meant to be ____ and ____ to evolve with market forces

adaptive ; dynamic

strategy is the means to achieve what?

organizational purpose

strategy: achieve ____ ____ goals

long term

what is structure?

The way a company (Tasks and People) are organized

- organizational structure/authority relationships

structure includes chain of command and accountability relationships, what does that mean?

who takes instructions from whom

structure: roles and responsibilities give _____ to execute _____

authority ; tasks

structure becomes more increasingly complex with what?

organizational change

what does clear structure reduce?

- External uncertainty through forecasting

- Internal uncertainty through control mechanism

lack of structure =

chaos and confusion

what is system?

how the work is done

- SOP's and workflows ; rules and regulations

- AKA infrastructure

system is ___ and _____ that conduct a business's daily activities

processes ; procedures

5 examples of system =

- Production, Planning, Control

- Cost accounting

- Capital budgeting

- Performance evaluations

- Risk Management Processes

what are shared values?

CORE VALUES

- what the organization is trying to achieve

- norms and behavior that are expected from all staff

- mission and vision

shared values dont ____ over time

change

shared values can be _____ organized or ____ ____ organized

profit ; not profit

(recent social mission added for reputation)

shared values: what are super ordinate goals?

aspirations beyond corporate objectives

what is style (culture)?

management style of top leaders and overall operating style

- "the way we do things around here"

style is the lever of _____ ____

organizational change

style includes what 3 things?

- Formal Code of conduct/ Informal rules of conduct

- Interactions and symbolic decision making

- Good Leadership is essential to ensure job satisfaction and productivity

style is important, but hard to ____

diagnose

what is staff?

The People, Their Backgrounds and Competencies

- all HR related to company decision

what is required for appropriately qualified staff?

selection, placement, training and development

what is the model of turnover for staff?

training, recruiting, and rewards

- hire, train and retain

provide staff training leads to ____ and ____

confidence ; motivation

what are skills?

Distinctive Competencies that reside in an organization

- Institutional and Individual skills

- Ability of staff to achieve it objectives

what are 4 skill acquisition strategies?

- upskill current employees

- hire new ones

- outsource

- suppliers

what are skills important?

an increase specialization of work in new economy

where do we want to work photo

what are 3 goals to achieve value in healthcare?

- Access to care

- Quality of Care

- Cost containment

what are 3 strategies to influence value in healthcare?

- High Quality at same cost = Performance Superiority

- Same Quality at low cost = Operational Excellence

- Social Responsibility of Community Well Being = Service Excellence

9 healthcare challenges =

- Technology

- Costs

- Customer Service/ Access

- Alternate products/ services

- Cost of Defensive Medicine/ Lawsuits

- Geographic variability

- Acute Care/ Physician driven

- Illness complexities

- Consumer disconnected from cost

3 ways to see strategic focus =

1. customer intimacy (CI)

2. operational excellence (OE)

3. performance superiority (PS)

what is customer intimacy?

FOCUS is CUSTOMER specific, unique

- wegman's, jefferson, wendy's

what is operational excellence?

FOCUS is VALUE, efficiency, consistency

- aldi, temple, mcdonald's

what is performance superiority (PS)?

FOCUS is PERFORMANCE, functionality

- trader joe's, penn, burger king

strategy comparison with mckinsey 7s model chart

4 things to think of when it comes to strategic planning for future direction?

- where are you? strengths, weaknesses

- where do you want to be? mission and vision, set priorities

- accountability for meeting objectives. time, talent, treasure

- periodic assessment

what does SWOT stand for?

strengths, weaknesses, opportunities, threats

what is SWOT used for?

to make strategic choices

- aid decision making for changing internal policies

what are the 2 internal factors of SWOT?

strengths and weaknesses

what is a strength?

- What are your current strengths

- Things you excel at

- What separates you from your competition

- What do you do better than anyone

what is a weakness?

- Areas that need improvement

- Things you don't excel at

- What prevents you from reaching your goal

what are the 2 external factors of SWOT?

opportunities and threats

what are opportunities?

- external opportunity to improve

- new competitive edge

what are threats?

- What do your competitors do better

- Environmental factors: seasonal effects

- Regulatory changes

- Economy/ political factors

what is a program proposal?

proposal for a service or reorganization

what is a feasibility study?

viability of an idea

what is a business plan?

details to achieve the goal/new venture/organization change

what does it mean, on an organization continuum, it is mechanistic?

traditional bureaucracy

- Clear job descriptions

- Rigid Vertical chain of command

- Centralized control

- Standardized written communication

- Specialized tasks/ departments

- Stable and predictable

what does it mean, on a organization continuum, it is organic?

open system

- Vague job descriptions

- Flexible structure

- Fluctuating authority

- Fluctuating division of labor

- Horizontal communication

- Flexible task assignment

- Committees, task force, liason

what does it mean, on a leadership continuum, it is mechanistic?

traditional bureaucracy

- Protocol driven

- Efficiency

- Results - lower cost per unit

- Less innovation

- Little room for change

- Weak adaptation to external forces

what does it mean, on a leadership continuum, it is organic?

open system

- Less predictability

- Less efficiency

- Increased costs

- Adjust to internal/ external demands

7 types of organizational structures

1. Functional

2. Divisional

3. Matrix

4. Horizontal/Flat

5. Hierarchical

6. Network

7. Team-Based

what are mission, vision, values, and goals?

- All stakeholders should be involved in creating and revision

- Reflective of organization at all levels

- Buy-In to "walk the walk"

- Develop sense of unity and security OR Disillusionment and low morale

definition of a mission =

- Current State

- Where you are

- What you are doing

- What you need

- Strengths

- Uniqueness

definition of a vision =

- Future state

- Where you want to be

- Premise of what you stand for

- Sets the direction

definition of values =

- Values & Beliefs

- Building Principles

- Clarifies behaviour

- Expectations

definition of goals =

- Specific work to be done

- Establish Accountability

what is a mission?

- Current Path and sense of purpose

- Emotional call to action

- Unique strengths

- Degree of commitment by stakeholders

- Boosts morale & Strengthens Reputation OR hypocritical & not trustworthy

- Can Drive culture and decision-making

- Manager tools translate mission into actions/ performance outcomes

- Mission aligns along dimension of organizational performance

what is a vision?

- "It's hard to get anywhere if you do not know where you want to go

- Sets the direction

- Realistic picture of the future

- Employees are energized

- Sense of meaningful work

- Strive to stimulates Improvement

- Manager decision based upon stated vision

what are values?

- Values & Beliefs

- "we believe..." or "we are committed to"

- Values drive culture

- 4-6 most important values

- What are some Physical Therapy Values?

what are goals?

- Strategic Planning or implementing new program

- Controlling, coordinating, evaluating work performance

- Should be aligned to Mission and Vision

- Outcomes/ accomplishments

- Measurable

- Challenging/ Realistic

- Communicated

- i.e. SMART goals