1st Edition

The Organizational Master Plan Handbook A Catalyst for Performance Planning and Results

By H. James Harrington, Frank Voehl Copyright 2012
    275 Pages 33 B/W Illustrations
    by Productivity Press

    Written for organizational leaders, planners, facilitators, and consultants, this book defines how the four different planning activities used to manage and improve an organization should be merged to maximize effectiveness. Stating that the four plans for organization improvement are the business plan, strategic business plan, strategic improvement plan, and operating plan, it defines each and explains how to link them together to reduce cost and cycle times. The text incorporates sufficient flexibility so readers can adapt and revise, based on changing business needs and marketplace opportunities.

    Overview of the Problem
    Organizational Plans
    Parts of the Organizational Master Plan
    The Organizational Alignment Cycle
    Policy Deployment (Hoshin Kanri)

    What’s in an Effective Planning Process?
    Implementers as Planners
    The Customer Is King
    How to Get Customer Requirements
    Focus Groups
    In-Depth Interviews (IDIs)
    Observational Interviews
    Projective Testing
    Leading-Edge Groups
    Understanding Your Customer’s Interface
    Example of Customer-Focused CEO
    Market Focus
    Organizational Master Plan Drivers

    The Organizational Master Plan
    Introduction to the Organizational Master Plan
    Introduction to Strategic Planning
    The Organizational Master Plan
    Setting Direction
    Defining Expectations (Measurements)
    Defining Actions

    Change Management as Part of the Organizational Master Plan
    Can the Organization Handle the Required Change?
    Implementation History Assessment

    Trend Analysis
    Trend Outcomes
    Trend Implementation Challenges
    Major Trends Affecting the Organizational
    Master Planning

    The Business Planning Process
    Component 1: Appraising Your Current Position
    Component 2: A Strategic Vision Is the Core of Your Business Plan
    Defining Strategic Vision: The Core of the Business Plan
    The Role of the Quality Policy and Quality System
    What Do I Need to Measure?
    Designing Your Organization’s Quality System
    The Business Case for Quality
    Managing Your Organization’s Supply Chain
    Component 3: Think Competitively throughout Your Plan
    Market Segmentation
    Consumer Analysis
    Component 4: The Operating Plan as a Production System
    Component 5: A Well-Thought-Out Financial Plan Business Plan Pitfalls
    Business Plan Software: Pros and Cons
    Outline of a Typical Business Plan

    The Strategic Business Planning Process
    Approach to Developing a Strategic Business Plan
    Activity 1: Define the Strategy Scope and Time Frames
    Planning Tool 1: Organizational Planning Analysis
    Activity 2: Define the Assumptions
    Activity 3: Review the Mission, Vision, and Value Statements
    Reviewing the Mission Statement
    Review the Long-Range Vision Statement
    Review the Value Statement
    Activity 4: Define the Short-Term Vision
    Activity 5: Define Core Competencies and Capabilities
    Activity 6: Risk Analysis
    Activity 7: Critical Success Factors
    Activity 8: Setting Objectives and Goals
    Organizational Objectives
    Performance Goals
    Activity 9: Developing Strategies
    Defining Actions
    Activity 10: Develop Tactics for Each Strategy

    Strategic Improvement Plan
    Strategic Business Plans versus Strategic Improvement Plans
    Why Do You Need a Strategic Improvement Plan?
    What Creates Your Organization’s Culture?
    Planning and the Learning Organization Developing a Strategic Improvement Plan
    Phase I: Assessment of the Organization
    Phase II: Develop Vision Statements for Each of the KBDs
    Phase III: Develop a Set of Performance Goals
    Phase IV: Defining Desired Behaviors
    Phase V: Preparing Three- to Five-Year Improvement Plans for Each of the Vision Statements
    Assessment of Today’s Personalities
    How Do You Change an Organization’s Personality?
    Key Business Drivers/Controllable Factors
    Preparing Key Business Driver Vision Statements
    Key Change Area: Management Support/Leadership
    Organized Labor Involvement
    Stakeholder Involvement
    Preparing the Final Vision Statements
    Setting Performance Improvement Goals
    Desired Behavior and Habit Patterns
    Improvement Plans for Each KBD
    Factors Impacting the KBD Improvement Plans
    Difference between Planning and Problem Solving
    Developing Individual KBD
    The Strategic Improvement Plan Checklist
    Making the Improvement Process Work
    Summary of Strategic Improvement Plan

    Developing the Strategic Plan
    Combining the Strategic Business Plan and the Strategic Improvement Plans
    Creating the Strategic Plan

    The Annual Operating Plan
    Preparing the Annual Operating Plan
    Activity 1: Define Annual Operating Plan Ground Rules and Assumptions
    Assessing Your Current Position
    Identification of Annual Performance Goals
    Attainable Goals
    Activity 2: Prepare Proposed Resource Request
    Activity 3: Present Proposed Resource Request to the Annual Operating Plan Review Committee
    Activity 4: Present the Resource Request and Projected Incomes to the Executive Team
    Activity 5: Revise the Resource Request Based upon the Executive Team Input
    Activity 6: Review and Approve the Revised Resource Request by the Executive Team
    Activity 7: Present the Annual Operating Plan to the Board of Directors and Get Its Approval
    Activity 8: Send Approved Related Parts of the Annual Operating Plan to Individual Departments
    Activity 9: Prepare Individual Performance Plans (IPI) for the Employees
    How to Develop the Annual Operating Plan for a Small Organization
    Three Characteristics of an Effective Annual Operating Plan
    Example of a Departmental Annual Operating
    Plan Template

    Organizational Master Plan Summary
    Communicating the Organization’s Master Plan
    Develop the Format, Content, and Plan Structure
    Implementation Issues
    Summing It All Up
    Appendix A: Definitions and Abbreviations
    Appendix B: Improvement Tools
    Appendix C: Problem Analysis Cycle



    H. James Harrington, Frank Voehl

    Harrington and Voehl present the most comprehensive and effective approach to optimizing an organization’s performance developed to date. It is must reading for those organizations seeking to prove maximum value to all stakeholders.
    —Tang Xiaofen, President of the Shanghai Association for Quality & President of the Shanghai Academy of Quality Management

    Compulsory reading for all leaders looking to maximize efficiency and effectiveness while navigating business in this risky global economy.
    —Acn. Shan Ruprai President APQO, National Chairman Australian Organisation for Quality, and Chairman AIBI Australia