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[O297]Operational And Strategic Planning

by Tony Jacowski, Ton

Strategic planning, as applied to Six Sigma, implies that the drawing down of elaborate and systematic planning of areas of concerns that have far-reaching and tactical implications at the project selection stage. The purpose of strategic planning is to have produced fundamental decisions and actions that guide successful Six Sigma implementation.

An Overview Of Strategic Six Sigma

Many CEOs are skeptical about the outcome of Six Sigma, despite huge annual spending. A critical component which helps integrate the visions of the leader with the functioning of the organization is strategic programming derived from ?strategy deployment mapping?. This is said to produce an entirely new direction for the organization. The skepticism about the vision of building a future begins to gain momentum with the linking of visions to action plans and when it delivers tangible results. Six Sigma takes strategic planning to a different plane of thinking by delivering on this promise.

Success Begins With Planning

It should not be forgotten that the foundation for success is proper and adequate planning. Planning is the elaborate statement of vision by the leader of the company. This is true for both large corporations and smaller start-ups. The core of transforming organizational vision into tangible gains by employees has many steps to overcome obstacles on the path to achievement. Achievements will have to be translated to customer satisfaction for Six Sigma to be successful.

Sharing Of Vision

The vision which begins its journey with upper management needs to be shared by all the stakeholders. It may be difficult to demonstrate to employees that their actions relate to customer reactions directly. Another missing link that needs to be connected is the customer himself. The emphasis of Six Sigma is on factoring in customers and engaging them in defining needs. Deploying employees actively connects these disjointed needs. The powerful tools of Six Sigma highlight and simplifies the linkage between key elements, activities, strategies and finally the vision, paving way for smooth sharing of ideas. The methodology of Six Sigma communicates company vision effectively to all concerned in a language understandable by each of them.

Critical Mass

There is also a danger of leaders getting bogged down by trivial matters of day-to-day operations and numerous details. Two of the tools of Six Sigma (metrics), key requirements and differentiators, come to the rescue. These two metrics highlight the importance or irrelevance of some data and push for excellence on those that matter. The end result is helping leaders to envision the strategic importance of activities and steering clear of trivial, mundane things.

Deployment of Six Sigma can't be disconnected from strategic planning and financial activities, either. If the decision to implement Six Sigma is a result of strategic planning, it means the leadership has recognized the need for complete retooling of the organization, no matter what phase it is in.

Strategic planning is the process of developing strategies and defining objectives to reach a particular goal or set of goals. If you labeled your planning as "strategic" then you must expect that it would perfectly operate on a grand scale. It will achieve success in a broader field.

It is very different from "tactical" planning which focuses more on individual detailed tactics of activities. "Long range" planning however projects current programs and activities into a modified outlook of the outside world where it describes the phenomenon that will likely occur.

Strategic planning is creating more desirable results in the future through influencing the external world, and adapting current actions and programs to achieve a more favorable result in the outside environment.

There are different reasons why most people are doing strategic planning.

1.To acquire the capability in obtaining the desired objectives.

2.To fit well on both the organization's core competencies and resources, and to the external world. Make sure that your plans are appropriate and feasible.

3.To acquire the capability in providing competitive advantage that is sustainable within the organization.

4.To prove that it is flexible, dynamic, and adaptable even to changeable situations.

5.To be sufficient in providing favorable results without cross-subsidization.

These advantages will not be realized without its methodologies. Strategic planning depends on STP (three-step process) process. "S" for situation where it was been thoroughly evaluated, "T" for Target where goals and objectives are defined, and "P" for path where the routes of goals and objectives are clearly mapped.

However another alternative approach can also be used. It is known as the Draw-See-Think-Plan procedures. "Draw" creates the desired image and achievements. "See" evaluates current situation and detects gaps between ideal situation and current situation. "Think" develops specific actions that must be done to bridge the gaps between ideal situation and current situation. "Plan" lists down required resources for the execution of activities.

Strategic planning is also considered a set of creative and logical steps.

1.It clarifies the objectives to be achieved. These objectives are ranked according to the level of its importance. It can either be TRO (Top Rank Objective), 2nd Rank Objective, 3rd Rank Objective and so on. The lower rank objectives answers the "How" question while higher rank objective answers the "why" question. However TRO is exempted because the objective here is defined.

2.It gathers and analyzes the information. It includes internal assessment on resources, and external assessment which include environmental scanning. Morphological analysis is used by both internal and external assessments. SWOT analysis can also be incorporated to assess the aspects of environments and organizations that are essential in achieving the strategic plan objectives.

3.It evaluates objective feasibility in the SWOT view. SWOT is the acronyms which stands fro Strengths, Opportunities, Weaknesses, and Threats.

4.It develops strategy involving SWOT.

5.It develops action programs creating a more attractive strategy.

To summarize everything, strategic planning provides overall strategic direction on the core management of the company. It gives a more specific direction in areas such as marketing strategy, financial strategy, human resource strategy, organizational development strategy, and deployment information technology strategy to achieve success.

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Both Tony Jacowski & Mario Churchill are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Tony Jacowski has sinced written about articles on various topics from University, Six Sigma and Information Technology. Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solutions - Six Sigma Online ( http://www.sixsigmaonline.org ) offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.. Tony Jacowski's top article generates over 90500 views. to your Favourites.

Mario Churchill has sinced written about articles on various topics from Credit Cards, Anger Control and Credit Cards. Mario Churchill is a freelance author and has written over 200 articles on various subjects. For more information on or. Mario Churchill's top article generates over 246000 views. to your Favourites.