STRATEGIC MANAGEMENT Look at potters strategies These include; least cost,focus (eg benz,diva account), Achieving a winning and

leading position.This must be done intelligently by naly sing both the internal and external environment. Formulation of strategic Management plan STRATEGIC QUALITY PLANNING Define the term strategy? In order to understand the concept of strategic management, first we need to und erstand the literal meaning of the word strategy. The definition is mentioned belo w: 1. The science and art of using all the forces of a nation to execute approved p lans as effectively as possible during peace or war. The science and art of mili tary command as applied to the overall planning and conduct of large-scale comba t operations. 2. A plan of action resulting from strategy or intended to accomplish a specific goal. 3. The art or skill of using stratagems in endeavors such as politics and busine ss What is the relation of Strategic Planning and Total Quality Management? When an organizations chooses to make quality a major competitive edge (differen tiation), it becomes the central issue in strategic planning. This is especially reflected in vision, mission and policy guidelines of an organization. An essential idea behind strategic quality planning is that the product is custo mer value rather than a physical product or service. This feat cannot be achieve d unless an organization creates a culture of quality and no strategy and plan c an be worthwhile unless it is carefully implemented. What do you understand by the term quality statements? Elaborate them with examp les. Quality statements are part of strategic planning process and once developed, ar e occasionally reviewed and updated. There are three types of quality statements: 1. Vision statement 2. Mission statement 3. Quality policy statement The utilization of these statements varies from organization to organization. Sm all organization may use only the quality policy statement 1. Vision Statement: The vision statement is a short declaration what an organization aspires to be t omorrow. A vision statement, on the other hand, describes how the future will lo ok if the organization achieves its mission. Successful visions are timeless, inspirational, and become deeply shared within the organization, such as: IBMs Service Apples Computing for the masses Disney theme parks the happiest place on the earth, and Polaroids instant photography 2. Mission Statement: A mission statement concerns what an organization is all about. The statement an swers the questions such as: who we are, who are our customers, what do we do an d how do we do it. This statement is usually one paragraph or less in length, ea sy to understand, and describes the function of the organization. It provides cl ear statement of purpose for employees, customers, and suppliers. An example of mission statement is: Ford Motor Company is a worldwide leader in automatic and automotive related pro ducts and services as well as the newer industries such as aerospace, communicat ions, and financial services. Our mission is to improve continually our products and services to meet our customers needs, allowing us to prosper as a business a

nd to provide a reasonable return on to our shareholders, the owners of our busi ness. 3. Quality Policy Statement: The quality policy is a guide for everyone in the organization as to how they s hould provide products and services to the customers.It should be written by the CEO with feedback from the workforce and be approved by the quality council. A quality policy is a requirement of ISO 9000. A simple quality policy is: Xerox is a quality company. Quality is the basic business principle for Xerox. Q uality means providing our external and internal customers with innovative produ cts and services that fully satisfy their requirements. Quality is the job of ev ery employee. How an organization can do strategic quality planning? The process starts with the principles that quality and customer satisfaction ar e the center of an organizations future. It brings together all the key stakehold ers. The strategic planning can be performed by any organization. It can be highly ef fective, allowing the organizations to do the right thing at the right time, eve ry time. There are seven steps to strategic Quality Planning: 1. Discover customer needs 2. Customer positioning 3. Predict the future 4. Gap analysis 5. Closing the gap 6. Alignment 7. Implementation 1. Customer Needs: The first step is to discover the future needs of the customers. Who will they b e? Will your customer base change? What will they want? How will they want? How will the organization meet and exceed expectations? 2. Customer Positioning: Next, the planners determine where organization wants to be in relation to the c ustomers. Do they want to retain, reduce, or expand the customer base. Product o r services with poor quality performance should be targeted for breakthrough or eliminated. The organizations needs to concentrate its efforts on areas of excell ence. 3. Predict the future: Next planners must look into their crystal balls to predict the future condition s that will affect their product or service. Demographics, economics forecasts, and technical assessments or projections are tools that help predict the future. 4. Gap Analysis : This step requires the planner to identify the gaps between the current state an d the future state of the organization. An analysis of the core values and conce pts is an excellent technique for pinpointing gaps. 4. Closing the Gap: The plan can now be developed to close the gap by establishing goals and respons ibilities. All stakeholders should be included in the development of the plan. 5. Alignment: As the plan is developed, it must be aligned with the mission, vision, and core values and concepts of the organization. Without this alignment, the plan will h ave little chance of success. 6. Implementation: This last step is frequently the most difficult. Resources must be allocated to collecting data, designing changes, and overcoming resistance to change. Also pa rt of this step is the monitoring activity to ensure that progress is being made . The planning group should meet at least once a year to assess progress and tak e any corrective action.

CREATING A STRATEGIC QUALITY PLAN Creating a Strategic Quality Plan Business Improvement Architect s has experience in helping customer organization s to successfully conduct benchmarking studies. Our global reach through our aff iliates helps us to identify and obtain benchmarking information and interpret i t appropriately. Overview Organizations, regardless of whether they are private, public or not-for-profit, face a continuous barrage of requests to improve quality. Developing a high per formance quality plan requires a good understanding of quality problems and root causes of the problems. Business Improvement Architects offers a highly effective and engaging process f or developing a comprehensive Strategic Quality Plan that will help your organiz ation develop its Quality Vision and strategies for implementing it. Strategic Quality Planning Process The key elements of Business Improvement Architect s Strategic Quality Planning Process are: Identifying the Organizational Quality Initiatives We ll work with your organization s Quality Manager and team to identify and ass ess all of the various quality initiatives that they have used in the past and t he present. Understanding the Voice of the Customer To ensure that the new Quality Strategy has a clear customer focus, we work with to identify current and future stakeholder/customer requirements through resear ch and review of your organization s product and services delivery process. Identifying Employee Involvement We ensure employee input is considered in the strategic planning process to enri ch the quality of the final plan and gain their commitment, buy-in and support f or the implementation phase. Conducting Benchmarking We believe that it is beneficial to conduct benchmarking as part of the planning process to learn what others are doing (including competitors) and to learn fro m them. Such effort is worthwhile as it provides information about best practice s and generates useful ideas for improving internal quality processes. Developing the Vision and Strategic Direction We facilitate the creation of your Strategic Quality Vision and Quality Strategi es. This includes: the structure and approach to quality throughout the organiza tion, what tools and processes to use to establish quality and how quality will be measured. It will also include the outcomes of quality on your organization s products, services and what customers will be saying about them. Developing a Statement of Quality and Quality Standards We ll work with you to develop: A Statement of Quality that is highly relevant to describe what quality will mea n for in the organization. It will clearly describe the overall goals, mandates and objectives for the quality initiative. Quality Standards to guide employees in achieving the Statement of Quality. Quality Standards to guide employees in achieving the Statement of Quality. Identifying the Quality Strategies We facilitate a process to translate the quality vision, quality statement and q uality standards into key strategies. This process includes a risk assessment. Developing Operational Effectiveness We facilitate an Operational Effectiveness Plan to identify the requirements for each Quality Strategy with detailed Action Plans. Developing Strategy Measurements We ensure that you have the right measures are in place to monitor and manage qu ality on a forward going basis.