Baldrige Criteria Item 2.1 - Strategy Development

2010 Baldrige Criteria Item 2.1 (Strategy Development) - Integrated Version

2 Strategic Planning (85 pts.) The Strategic Planning Category examines HOW your organization develops STRATEGIC OBJECTIVES and ACTION PLANS. Also examined are HOW your chosen STRATEGIC OBJECTIVES and ACTION PLANS are DEPLOYED and changed if circumstances require, and HOW progress is measured.

Item 2.1 - Strategy Development (40 pts.)                                                                                                                                                       Process

HOW do you develop your strategy?

Describe HOW your organization establishes its strategy to address its STRATEGIC CHALLENGES and leverage its STRATEGIC ADVANTAGES. Summarize your organization’s KEY STRATEGIC OBJECTIVES and their related GOALS. Within your response, include answers to the following questions: 2.1a. Strategy Development PROCESS (1)   HOW does your organization conduct its strategic planning? What are the KEY PROCESS steps? Who are the KEY participants? HOW does your PROCESS identify potential blind spots? HOW do you determine your CORE COMPETENCIES, STRATEGIC CHALLENGES, and STRATEGIC ADVANTAGES (identified in your P.2 in your Organizational Profile)? What are your short- and longer-term planning time horizons? HOW are these time horizons set? HOW does your strategic planning PROCESS address these time horizons? (2)   HOW do you ensure that strategic planning addresses the KEY factors listed below? HOW do you collect and ANALYZE relevant data and information pertaining to these factors as part of your strategic planning PROCESS: • your organization’s STRENGTHS, weaknesses, OPPORTUNITIES, and threats • early indications of major shifts in technology, markets, products, CUSTOMER preferences, competition, or the regulatory environment • long-term organizational SUSTAINABILITY, including needed CORE COMPETENCIES • your ability to execute the strategic plan 2.1b. STRATEGIC OBJECTIVES (1)   What are your KEY STRATEGIC OBJECTIVES and your timetable for accomplishing them? What are your most important GOALS for these STRATEGIC OBJECTIVES? (2)   HOW do your STRATEGIC OBJECTIVES address your STRATEGIC CHALLENGES and STRATEGIC ADVANTAGES? HOW do your STRATEGIC OBJECTIVES address your OPPORTUNITIES for INNOVATION in products, operations, and your business model? HOW do your STRATEGIC OBJECTIVES address current and future CORE COMPETENCIES? HOW do you ensure that your STRATEGIC OBJECTIVES balance short- and longer-term CHALLENGES and OPPORTUNITIES? HOW do you ensure that your STRATEGIC OBJECTIVES consider and balance the needs of all KEY STAKEHOLDERS?

Notes: N1. “Strategy development” refers to your organization’s APPROACH (formal or informal) to preparing for the future. Strategy development might utilize various types of forecasts, PROJECTIONS, options, scenarios, KNOWLEDGE (see 4.2a for relevant organizational KNOWLEDGE), or other APPROACHES to envisioning the future for purposes of decision making and resource allocation. Strategy development might involve participation by KEY suppliers, distributors, PARTNERS, and CUSTOMERS. For some nonprofit organizations, strategy development might involve participation by organizations providing similar services or drawing from the same donor population or volunteer WORKFORCE. N2. The term “strategy” should be interpreted broadly. Strategy might be built around or lead to any or all of the following: new products; redefinition of key customer groups or market SEGMENTs; new core competencies; revenue growth via various APPROACHES, including acquisitions, grants, and endowments; divestitures; new PARTNERSHIPS and alliances; and new employee or volunteer relationships. Strategy might be directed toward becoming a preferred supplier, a local supplier in each of your major CUSTOMERS’ or PARTNERS’ markets, a low-cost producer, a market INNOVATOR, or a high-end or customized product or service provider. It also might be directed toward meeting a community or public need. N3. Your organization’s STRENGTHS, weaknesses, OPPORTUNITIES, and threats (2.1a[2]) should address all factors that are KEY to your organization’s future success, including the following, as appropriate: your CUSTOMER and market requirements, expectations, and OPPORTUNITIES; your OPPORTUNITIES for INNOVATION and role model PERFORMANCE; your CORE COMPETENCIES; your competitive environment and your PERFORMANCE relative to competitors and COMPARABLE organizations; your product life cycle; technological and other KEY INNOVATIONS or changes that might affect your products and services and HOW you operate, as well as the rate of that INNOVATION; your workforce and other resource needs; your ability to capitalize on DIVERSITY; your OPPORTUNITIES to redirect resources to higher priority products, services, or areas; financial, societal, ETHICAL, regulatory, technological, security, and other potential risks and opportunities; your ability to prevent and respond to emergencies, including natural or other disasters; changes in the national or global economy; PARTNER and supply chain requirements, STRENGTHS, and weaknesses; changes in your parent organization; and other factors unique to your organization. N4. Your ability to execute the strategic plan (2.1a[2]) should address your ability to mobilize the necessary resources and KNOWLEDGE. It also should address your organizational AGILITY based on contingency plans or, if circumstances require, a shift in plans and rapid execution of new or changed plans. N5. STRATEGIC OBJECTIVES that address KEY CHALLENGES and advantages (2.1b[2]) might include rapid response, customization, co-location with major CUSTOMERS or PARTNERS, WORKFORCE CAPABILITY and CAPACITY, specific joint ventures, virtual manufacturing, rapid INNOVATION, ISO quality or environmental systems registration, Web-based supplier and CUSTOMER relationship management, and product and service quality enhancements. Responses to Item 2.1 should focus on your specific CHALLENGES and ADVANTAGES—those most important to your ongoing success and to strengthening your organization’s overall PERFORMANCE. N6. Item 2.1 addresses your overall organizational strategy, which might include changes in products offerings and customer engagement processes. However, the ITEM does not address product design or customer engagement strategies; you should address these factors in Item 6.1 and Item 3.1, as appropriate.

For additional description of this Item, see 2.1 Strategy Development Description.

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Thank you for using the only truly integrated form of the Baldrige Criteria available anywhere.  Paul Steel