The Organizational Master Plan Handbook : A Catalyst for Performance Planning and Results book cover
1st Edition

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

ISBN 9781439878774
Published February 24, 2012 by Productivity Press
275 Pages 33 B/W Illustrations

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Book Description

For visionary leaders, an Organizational Master Plan and associated technologies have become essential components of strategic decision making. Written for leaders, planners, consultants, and change agents, The Organizational Master Plan Handbook: A Catalyst for Performance Planning and Results explains how to merge the four planning activities that compose the Organizational Master Plan to manage, improve, and maximize organizational efficiency and effectiveness.

Written by recognized leaders in applying Performance Improvement methodologies to business processes and entire organizations, this book defines the makeup and highlights the differences in the operating plan, strategic business plan, strategic improvement plan, and the organization’s business plan. It defines each and explains how to link them to reduce costs and cycle times. Describing how to use controllable factors as the foundation for constructing your Organizational Master Plan, it demonstrates how the plan fits into organizational alignment activities.

  • Examines all the plans that should go on within an organization and details the purpose of each
  • Unveils a novel approach for preparing a Strategic Improvement Plan
  • Lays out a well-defined roadmap of the Organizational Master Plan process

Explaining how to make the strategic planning process a part of performance plans for individuals within your organization, the text incorporates sufficient flexibility so you can adapt and revise the plans discussed according to changing business needs and marketplace opportunities. It explains how to develop a set of vision statements to define how your organization will function five years in the future as well as how to develop the strategies needed to make the required transformation a success.

Praise for the Book:

Harrington and Voehl present the most comprehensive and effective approach to optimizing an organization’s performance developed to date.
—Tang Xiaofen, President of the Shanghai Association for Quality & President of the Shanghai Academy of Quality Management

Compulsory reading for all leaders 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

A Note from the Authors:

Organizational Master Plans are tangible and often visible statements of where the organization is now, what it should be in the future and what is required to get there. While processes for developing them vary, master plans are most successful when they represent a vision that brings together the concerns of different interest groups, and their recommendations create a ground swell of business community and political support. Good Organizational Master Plans are flexible, and have involved the business leaders and other stakeholders from the outset, giving the plan a legitimate base, and a better chance to come to fruition. While circumstances vary from place to place, the decision to develop a master plan is often determined by the need to understand the current conditions of the marketplace, to generate and build stakeholder interest and participation, to create a new and common vision for the future, and/or to develop a clear and solid set of recommendations and implementation strategy.

Susan Rademacher, executive director of the Louisville Olmsted Parks Conservancy, had this to say about the process of developing Louisville’s Organizational Master Plan:

. . .When we got started with our master plan, there were a few important things that we focused on. One was that we started with a belief in the native intelligence of this community, from 1888 forward. And we invited the public to really dream about what these parks could be, what they remembered the parks as, and we tried to change expectations in that way. Typically in the past, …the little changes that come about in parks are politically motivated to get a big bang in the short term for the next election. And … our parks were suffering from that. So when we invited the community to dream large, we changed the expectations and also changed the expectations of what the public sector was looking to do.

Table of Contents

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


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Dr. H. James Harrington is one of the world’s quality system gurus with more than sixty years of experience. In the book, Tech Trending (Amy Zuckerman, Capstone, 2001), Dr. Harrington was referred to as "the quintessential tech trender." The New York Times referred to him as having a "knack for synthesis and an open mind about packaging his knowledge and experience in new ways—characteristics that may matter more as prerequisites for new-economy success than technical wizardry." He has been involved in developing quality management systems in Europe, South America, North America, Middle East, Africa, and Asia.

Present Responsibilities

Dr. H. James Harrington is the chief executive officer for the Harrington Institute. He also serves as the chairman of the board for a number of businesses and as the US chairman of Chair on Technologies for Project Management at the University of Quebec in Montreal. Dr. Harrington is recognized as one of the world leaders in applying performance improvement methodologies to business processes.

Previous Experience

In February 2002, Dr. Harrington retired as the chief operating officer (COO) of Systemcorp A.L.G., the leading supplier of knowledge management and project management software solutions. Prior to this, he served as a principal and one of the leaders in the Process Innovation Group at Ernst & Young. Dr. Harrington was with IBM for over thirty years as a senior engineer and project manager. Dr. Harrington is past chairman and past president of the prestigious International Academy for Quality and of the American Society for Quality Control. He is also an active member of the Global Knowledge Economics Council.


The Harrington/Ishikawa Medal presented yearly by the Asian-Pacific Quality Organization was named after Dr. Harrington to recognize his many contributions to the region. In 1997, the Quebec Society for Quality named their Quality Award "The Harrington/Neron Medal," honoring Dr. Harrington for his many contributions to the Quality Movement in Canada. In 2000 the Sri Lanka national quality award was named after him. The Middle East and Europe Best Quality Thesis Award was named "The Harrington Best TQM Thesis Award." The University of Sudan has established a Harrington Excellence Chair to study methodologies to improve organizational performance. The Chinese government presented him with the Magnolia Award for his major contribution to improving the quality of Chinese products.

Dr. Harrington’s contributions to performance improvement around the world have brought him many honors and awards, including the Edwards Medal, the Lancaster Medal, the American Society for Quality’s Distinguished Service Medal, and many others. He was appointed the honorary advisor to the China Quality Control Association, and he was elected to the Singapore Productivity Hall of Fame in 1990. He has been named lifetime honorary president of the Asia Pacific Quality Organization and honorary director of the Association Chilean de Control de Calidad.

Dr. Harrington has been elected a Fellow of the British Quality Control Organization and the American Society for Quality Control. He was also elected an honorary member of the quality societies in Taiwan, Argentina, Brazil, Colombia, and Singapore. He is also listed in "Who’s Who Worldwide" and "Men of Distinction Worldwide." He has presented hundreds of papers on performance improvement and organizational management structure at the local, state, national, and international levels.

Dr. Harrington is a very prolific author, publishing hundreds of technical reports and magazine articles. He has authored 33 books and 10 software packages. His e-mail address is [email protected]

Frank Voehl is the chairman and president of Strategy Associates, Inc. and a senior consultant and chancellor for the Harrington Institute. He also serves as the chairman of the board for a number of businesses and as a Master Black Belt Instructor and Technology Advisor at the University of Central Florida in Orlando, Florida. He is recognized as one of the world leaders in applying quality measurement and Lean Six Sigma methodologies to business processes.

Previous Experience

Frank Voehl has extensive knowledge of National Regulatory Commission (NRC), Food and Drug Administration (FDA), good manufacturing practice (GMP), and National Aeronautics and Space Administration (NASA) quality system requirements. He is an expert in ISO-9000, QS-9000, ISO-14000, and Six Sigma Quality System Standards and processes. He has degrees from St. John’s University and advanced studies from New York University, as well as a Doctor of Divinity degree. Since 1986, he has been responsible for overseeing the implementation of quality management systems with organizations in such diverse industries as telecommunications

and utilities; federal, state, and local government agencies; public administration and safety; pharmaceuticals; insurance and banking; manufacturing; and institutes of higher learning. In 2002, he joined The Harrington Group as the chief operating officer and executive vice president.

Has held executive management positions with Florida Power and Light and FPL Group, where he was the founding general manager and chief operating officer of QualTec Quality Services for seven years. He has written and published or copublished over twenty-five books and hundreds of technical papers on business management, quality improvement, logistics and team building, and has received numerous awards for community leadership, service to the third world countries, and student mentoring.


The Bahamas National Quality Award was developed in 1991 by Voehl to recognize the many contributions of companies in the Caribbean region, and he is an honorary member of its Board of Judges. In 1980, the City of Yonkers, New York, declared March 7 as Frank Voehl Day, honoring him for his many contributions on behalf of the youth in the city where he lived and performed volunteer work. In 1985 he was named Father of the Year in Broward County, Florida. He also serves as president of the Broward County St. Vincent de Paul Society, whose mission is to serve the poor and needy.

Frank’s contributions to quality improvement around the world have brought him many honors and awards, including the American Society for Quality Distinguished Service Medal, the Caribbean Center for Excellence Founders Award, the Community Quality Distinguished

Service Award, the Czech Republic Outstanding Service Award on behalf of its business community leaders, FPL’s Pioneer Lead Facilitator Award, the Florida SFMA Partners in Productivity Award, and many others. He was appointed the honorary advisor to the Bahamas Quality Control Association, and he was elected to the Eastern Europe Quality Hall of Fame. He has been named honorary director of the Association Venezula de Control de Calidad by Banco Consolidado.


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