STRATEGIC PLANNING

STRATEGIC PLANNINGCatholic University Santiago de GuayaquilFaculty of Economic Sciences, Management, Public Accounting and International BusinessSemmester ACourses A and B2015Teacher: Hernn Moreano, M.Sc.

Background General Objective Specific objectives Syllabus Bibliography Case study (Tutorials) INTRODUCTION

Prepared by : Hernn Moreano, M.Sc.2BACKGROUNDBUSINESS FUTURE LONG TERM PLANNING STRATEGIC PLANNING (FUTURE ESCENARIOS) SHORT TERM PLANNING BUSINESS PLAN (FACTS)

Prepared by : Hernn Moreano, M.Sc.3GENERAL OBJECTIVE To know, understand and get abilities to apply the business strategic planning process.

Prepared by : Hernn Moreano, M.Sc.44SPECIFIC OBJECTIVESTo understand the programm content, definitions, levels and steps of planning process ( Strategy Formulation). Firm external environment.

Firm internal environment. The balance scorecard .

To know and understand strategies applied to Corporations and Business Units

To know how to align organization structure with the strategy chosen ( Strategy Implementation). Details of Leadership, Power and Cultures. Strategic control and performance

Prepared by : Hernn Moreano, M.Sc.5Weeks: 16Hours per week 4 Total hours ( 4 x 16) 64 Time for presence lectures (TPL): 48 hoursTime for tutorials (TT): 16 hoursTime for independence study (TIS): 4 hours per weekExams 4 hoursCredits 4

SUMMARYPrepared by : Hernn Moreano, M.Sc.6Thompson A. Arthur, Gamble E.John, Peteref A.Margaret, (2012) Administracin Estratgica Teora y Casos. McGraw Hill, New York ISBN 1 45620591 1 Edicin 18.David R. Fred, (2010) Conceptos de Administracin Estratgica, Pearson Educacin, ISBN 9789 7026 11899, edicin 11Rothaermel Frank, (2012) Strategic Management Concepts and Cases. Mcgraw Hill. New York. ISBN 13 978 0078112737Wright, P. Kroll, M. and Parnell, J. (1996) Strategic Management Concepts and Cases. Prentice Hall Inc. New Jersey. ISBN 0 13 362815 9Norton, D. and Kaplan, R. (1992) The Balance Scorecard, Harvard Business Review Journal 180, 24, 22-29.Books available at www.ucsg.edu.ec, Biblioteca Virtual, E books UCSG.

BIBLIOGRAPHYPrepared by : Hernn Moreano, M.Sc.7SU I: Introduction to the strategic planning: definition, process, levels and steps.The need for a strategic planning Strategic planning: definition. Levels of strategic planningThe model for strategic decision makingThe six steps of strategic managementExternal environment FROM: MAY 18 TO JUNE 12TEACHING UNIT IDEFINITION, LEVELS AND STEPSPrepared by : Hernn Moreano, M.Sc.8 Option or course of action available to an organization competing in a given market to satisfy customer needs , stakeholder interest and business long term goals, considering social responsabilities , environmental comitmments and innovation opportunities to achieve competitive advatage .

A broad formula for how a business is going to compete.

What its long term goals should be.

How an organization will get its long term goals.

It is the planned and realized set of actions a firm takes to achieve its goals

Taken together, strategy governs the ubiquitous quest for superior performance and achieving competitive advantage.

DEFINITION

Prepared by : Hernn Moreano, M.Sc.9Competitive Advantage: Superior performance relative to other competitors in the same industry or the industry average.Competitive Disadvantage: Underperformance relative to other competitors in the same industry or the industry average.Copetitive Parity: Performance of two or more firms at the same level.Sustainable Competitive Advantage: Outperforming competitors or the industry average over a prolonged period.Strategic Management: An integrative management field that combines analysis, formulation and implementation in the quest for competitive advantagePrepared by : Hernn Moreano, M.Sc.10DEFINITIONSLevels of Planning

Prepared by : Hernn Moreano, M.Sc.11Where to CompeteHow to CompeteHow to ImplementStrategic Management tasks A : Analyze F : Formulate I : Implement All these tasks help firms conceive of and implement a strategy that can improve performance and result in competitive advantage

Prepared by : Hernn Moreano, M.Sc.12THE AFI STRATEGY FRAMEWORKPrepared by : Hernn Moreano, M.Sc.13THE AFI STATEGY FRAMEWORKCompetitiveAdvantageSTRATEGIC MANAGEMENT FRAMEWORK

Decision Making ProcessStrategy ChosenPrepared by : Hernn Moreano, M.Sc.14EVIDENCE ( FACTS): A true data or information

ANALYSIS 1. A systematic examination and evaluation of data or information, by breaking it into its component parts to uncover their interrelationships. Opposite of synthesis. 2. An examination of data and facts to uncover and understand cause-effect relationships, thus providing basis for problem solving and decision making.

SYNTHESIS . Systematic combination of otherwise different elements to form a coherent whole. Conclusion.

RELATIONSHIP : A connection between variables: Data or information

DESCARTES PRECEPTSPrepared by : Hernn Moreano, M.Sc.15 www.corporacionfavorita.comMICHAEL PHELPSMinicase 1 MP strategizing for gold

VWwww.vw.com

Case Review

Prepared by : Hernn Moreano, M.Sc.16INT. ENV. FACT ANALYSIS SYNTHESIS SWDistributionTwo distribution outletsNot enought for new marketsNew outlets throught alliances WProductPoultry, fish and porkBrands are well positionedEntrance to new markets SPromotionContract with local agencyNeed new strategyRemake marketing strategy WPriceLower than competitionNeed to keep pricesRethink internal process SLiquidityVery goodNo need for loansOwn Investment SDESCARTES MATRIXPrepared by : Hernn Moreano, M.Sc.17EXT.ENV.FACTANALYSISSYNTHESIS OTLegalWorkers code draftNew obligationsReduce liquidity TEconomyBank credits for food productionInvestment to update processLoan could be a option OInt. agreementsEcuador - UEIncrease exchangeExports OEnv. threatsEl Nio 2014Impact on productsPrevention measures TDemographyPop. 16 MIncrease demandNew markets OANALYSIS MATRIXPrepared by : Hernn Moreano, M.Sc.18FLEXIBLE. Process could be applied to any strategic problem to be solved.CONTINUOS: It does not end until mission is accomplished.CYCLICAL: If mission is not being accomplished, it is possible to go back to any of the process steps PROCESS ISPrepared by : Hernn Moreano, M.Sc.19 STRATEGY FORMULATION1. Analysis of the firm external and internal environments. State mission, vision and goals.2. Analysis of industrial environments. The BS.3. Strategies applied to Corporations and Business Units4. Decision STRATEGY IMPLEMENTATION5. Organizational structure 6. Leadership, power and culture7. Strategic control and performance

PROCESS STEPSPrepared by : Hernn Moreano, M.Sc.20PROCESS FLUXOGRAMA

Prepared by : Hernn Moreano, M.Sc.21Objective: To get abilities in the analysis of the macro and industry environments and make ready the O/T matrix.Global Word. Forces: Political legal Economic Socio-cultural Technological Ecological Demography

EXTERNAL AND INDUSTRIAL ENVIRONMENTS

Prepared by : Hernn Moreano, M.Sc.22FirmIndustryPolitical ideologyWorld Agreements: TariffsAntitrus regulationsConsumer lending regulationsEnvironment protection lawsInternational trade regulations: CAN, MERCOSUR, UE, APEC, NAFTA, WTO, ALALC. TPPBilaterals Agreements

POLITICAL - LEGAL

Prepared by : Hernn Moreano, M.Sc.23Gross Domestic Product (GDP/PIB)Interest rates ( CFN, BE, BF, BID, others.)Inflation rates.Monetary police.Money supply.Unemploment rate.Energy cost.Others.ECONOMIC

Prepared by : Hernn Moreano, M.Sc.24Research & Development budget.State R & D scheme and support.Rate of new products introductions.Automation.Robotics.Academia, private firms and goverment relations.Technological parks (cities, Ex. Silicon Valley, PILE)Technology suppliers.TECHNOLOGICAL

Prepared by : Hernn Moreano, M.Sc.25Quality of lifeLife expectancies.Expectations for the work place.Presence of women and disabled in the work force.Birth rates.Populations shifts ( grow rates, migration, holidays)CultureSOCIAL-CULTURAL

Prepared by : Hernn Moreano, M.Sc.26STATE MISSION, VISIN AND GOALS. MISSION: What Corporations or BUs do. Customer Oriented To make people happy (WD) To provide personal mobility for people around the world (FORD) Being in the railroad business Product Oriented VISION: A long term commitment. To be leader in the air transport service. GOAL: Something tangible and measurable to be attained in a specific period. Replace fleet of 5 Boing 727 by fleet of 7 Boing 737B in two years.TEACHING UNIT IITHE INTERNAL ENVIRONMENT. THE BS.FROM: JUNE 15 TO JULY 10Prepared by : Hernn Moreano, M.Sc.27RESOURCES Tangible: Physical Atributes Visible Capital, land, Buildings, plant, Equipment, Supplies.

Intangible: Culture, knowledge Brand Equity, Reputation Intellectual property, Patents, CopyrightT, trademarks, Trade Secrets

STRUCTURE Vertical, horizontal, product, customer, matrix, functional, other. FIRM RESOURCES and STRUCTURE

Prepared by : Hernn Moreano, M.Sc.28PROCESS Main process Support process Advisor process POSITION Market share INNOVATION R & D. Support from Academia and Goverment Matrix: Strenght and Weakness FIRM PROCESS, POSITION AND INNOVATION

Prepared by : Hernn Moreano, M.Sc.29Prepared by : Hernn Moreano, M.Sc.30REINVEST, HONE & UPGRADEState Goals: Total sells (National/International) Investments, current spending, increase capital, others.Assessing situation: Wages, salaries, taxes, investments (new assets), obligations, operational cost, savings and others.Managing resources: Selling old assets, managing debt and taxes, reduce operational cost, reduce unproductive cost,others.ASSESSING FINANCIAL SITUATIONPrepared by : Hernn Moreano, M.Sc.31STATE MISSION, VISIN AND GOALS. MISSION: What Corporations or BUs do. Customer Oriented To make people happy (WD) To provide personal mobility for people around the world (FORD) Being in the railroad business Product Oriented VISION: A long term commitment. To be leader in the air transport service. GOAL: Something tangible and measurable to be attained in a specific period. Replace fleet of 5 Boing 727 by fleet of 7 Boing 737B in two years.TEACHING UNIT IITHE INTERNAL ENVIRONMENT. THE BS.FROM: JUNE 15 TO JULY 10Prepared by : Hernn Moreano, M.Sc.32 INDUSTRY FORCESPOTENTIAL ENTRANTSBUYERSSUPPLIERSSUBSTITUTESRIVALRY AMONG EXISTING FIRMSINDUSTRY ENVIRONMENT

Prepared by : Hernn Moreano, M.Sc.33Similar products that satisfy customer needs but differ in characteristicsPrice problemsMovie theaters vs. per per ViewInternet availability, Whatsapp, Skype, twiter and facebook.PRESSURE FROM SUBSTITUTE PRODUCTSPrepared by : Hernn Moreano, M.Sc.34Buyers of large volumesPercentage of buyers costStandar or undifferenciated productsBargaining cultureLow income buyersBuyers cultureWell informed buyersGovernment as a buyerBARGAINING POWER OF BUYERSPrepared by : Hernn Moreano, M.Sc.35Service suppliers: water, energy, security, waste disposal,others. MonopoliesProducts are differentiated/switching costForward integration of suppliersSuppliers and industry cultureFedelityBARGAINING POWER OF SUPPLIERSPrepared by : Hernn Moreano, M.Sc.36Numerous or equally balanced competitorsSlow industry growthLack of differentiation or switching costDiverse competitorsCompetitive marketOthers

RIVALRY AMONG EXISTING FIRMS

Prepared by : Hernn Moreano, M.Sc.37Economies of Scale: Santa Isabel caseProduct differentiation: Fybeca caseCapital requirements: Pinto caseSwitching cost: From Mac. To HP.Access to distribution channels: Timex vs. RolexGovernment Policy: Pymes caseThreat of EntryPrepared by : Hernn Moreano, M.Sc.38 OPPORTUNITIES THREATS EU and Ecuador Trade Agreement Population demand. New energy suppliers CAN regulations

Plagues or infectious desease for chiken, pork or turkey. New legal framework. Natural threats. substitute product

O/T MATRIXPrepared by : Hernn Moreano, M.Sc.39STRENGHTS Brand products well positioned. High quality products

OPPORTUNITIES EU and Ecuador Trade Agreement Population demand. New energy suppliersWEAKNESS Lack of international experience Lack of own R & D.

THREATS Plagues or infectious desease for chiken, pork or turkey. New legal framework. Natural threats. SWOT MATRIXPrepared by : Hernn Moreano, M.Sc.40Growth: Internal Vertical Integration Horizontal Integration Mergers Alliances Horizontal diversification Stability: Business as Usual Reduce: Turnaround Divestment Liquidation STUDY UNIT IVSTRATEGIESJune 22 to July 4

Prepared by : Hernn Moreano, M.Sc.41

STRATEGIES APPLIED TO CORPORATIONS AND BUSINESS UNITS

AInternal growthVertical integrationMergersHorizontal integration DMergersAlliancesIntegration GTurnaroundDivestment BVertical integrationHorizontal diversity EStabilityMergersAlliancesDivestment HTurnaroundDivestment CHorizontal diversityVertical integrationDivestment FDivestmentStability I1. LiquidationS.W.O.T PORTAFOLIO FRAMEWORK Comparative Status of the Corporations Business UnitsStrongAverage WeakState of the External EnvironmentCriticalModerateAbundantPrepared by : Hernn Moreano, M.Sc.42 STARS QUESTIONS MARKS

CASH COWS DOGS

BOSTON CONSULTING GROUP FRAMEWORKRelative Marked ShareHighLowPercentage Marked Growth RateHighLowPrepared by : Hernn Moreano, M.Sc.43GE FRAMEWORKAveragebusiness unitsSuccessfulBusinessunitUnsuccessfulBusinessunitIndustry AttractivenessLowHighBusiness StrengthsWeakStrongPrepared by : Hernn Moreano, M.Sc.44LOW COST-TECH. AND NON DIFFERENTIATED STRATEGYHIGH COST-TECH. AND DIFFERENTIATED STRATEGYPRODUCT DIVERSIFICATIONVALUE CHAINSSUPPLY CHAIN IN A GIVEN INDUSTRYFRANCHISEOTHERSPrepared by : Hernn Moreano, M.Sc.45BUSINESS UNIT STRATEGIESPrepared by : Hernn Moreano, M.Sc.DIFFERENTIATION46COST-TECH. Vs DIFFERENTIATIONLOW HIGHCOST AND TECHNOLOGYLOWHIGHAdrianaHoyosTIA46LEMONGRAPEFRUIT ORANGE LIMETANGERINESEEDTe Tony InlyneTe Tony InlynePharma industrySoft drinkindustrySoft drink industrySEEDLESSLa FavoritaLa FavoritaLa FavoritaLa FavoritaLa FavoritaSEED/THICK CRUSTBiomass EnergyBiomassEnergyBiomass Energy x x

Prepared by : Hernn Moreano, M.Sc.47DIVERSIFICATION OF A CITRUS FARM

Cell 5: Niche low Cost Niche Low Cost Diff.Cell 9: Low Cost Low Cost Diff. MultipleCell 4: Niche low cost Differentiation Low cost Diff.Cell 8: Low cost Differentiation Low cost diff. MultipleCell 3: Niche low cost Niche differentiation MixCell 7: Low cost Differentiation Low cost differentiation MultipleCell 2: Niche low cost Niche differentiation Low cost/diff.Cell 6: Low cost Differentiation Low cost Diff. MultipleCell 1: Niche DifferentiationPrepared by : Hernn Moreano, M.Sc.48LIFE CYCLE AND SIZE OF BUSINESSSmaller BusinessLarger BusinessDeclineMaturityShakeoutGrowthEmb.SIZE OF BUSINESSLIFE CYCLESCA 1. Keep Business as it is (Stability).SCA 2. Grouth througth internal investment diversifying services and increasing sales.SCA 3. Grouth throught alliances and franchises.Prepared by : Hernn Moreano, M.Sc.49STRATEGIC COURSE OF ACTIONEL SABROSON CASEPrepared by : Hernn Moreano, M.Sc.50DECISION MAKINGTESTSUITABLEFLEXIBLEACCEPTABLESCA 1SCA 2SCA 3Suitable: SCA accomplish with the MissionFlexible: SCA is completed with available technical, human and material resourcesAcceptable: SCA has a favorable Cost Benefits relation

Prepared by : Hernn Moreano, M.Sc.51DECISION MAKINGTESTSUITABLEFACTIBLEACCEPTABLESCA 1 YesYes, but it does not use saving resources Yes, but returns are lowSCA 2 YesYes, because use own resources to improve its sthrenghtsHigher cost benefit.SCA 3 YesSame as 1Same as 1Suitable: SCA gets the MissionFactible: SCA is completed with available technical, human and material resourcesAcceptable: SCA has a favorable Cost Benefits relation

DECISION MAKING MATRIXCRITERIAWeigth SCA 1 SCA 2 SCA 3 SCA 4MISSION 3 2 61 34 123 9COST 12 23 33 34 4TIME 21 22 43 64 8RISK 43 121 42 84 16TECHNOLOGY 24 83 64 84 8INNOVATION 43 123 124 163 12ENVIRONMENT 33 93 92 63 9OBJECTIVES 52 103 152 104 20SOCIAL 33 92 61 33 9SOSTENIBILITY 44 162 83 123 12TOTAL27233135PESO TOTAL 86 70 84 10752Prepared by : Hernn Moreano, M.Sc.ADVENTAGESDISADVANTAGESSCA 1Rapid growthHigh riskSCA 2Low growthLow riskSCA 3Highest growth in an opportunity marketHigh risk, but shared among owners.Prepared by : Hernn Moreano, M.Sc.53ADVENTAGES AND DISADVANTAGES MATRIXObjective: to get abilities in implementing the balance Scorecard in order to fix mission and vision with the financial performance, customer satisfaction, efficiency of business process and knowledge and innovation needed to keep the firm in business.Prepared by : Hernn Moreano, M.Sc.54Study Unit VThe Balance ScorecardPrepared by : Hernn Moreano, M.Sc.55THE BALANCE SCORECARDBSC

The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, introduce up to day technology into the firm processes to satisfy customer needs and improve financial performance and monitor organization performance against strategic goals. It was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton . The balanced scorecard has evolved from its early use as a simple performance measurement framework to a full strategic planning and management system. The new balanced scorecard transforms an organizations strategic plan from an attractive but passive document into the "marching orders" for the organization on a daily basis. It provides a framework that not only provides performance measurements, but helps planners identify what should be done and measured. It enables executives to truly execute their strategies.Prepared by : Hernn Moreano, M.Sc.56BSC DEFINITIONThe Learning & Growth PerspectiveThis perspective includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement. In a knowledge-worker organization, people -- the only repository of knowledge -- are the main resource. In the current climate of rapid technological change, it is becoming necessary for knowledge workers to be in a continuous learning mode. Metrics can be put into place to guide managers in focusing training funds where they can help the most. In any case, learning and growth constitute the essential foundation for success of any knowledge-worker organization.

Kaplan and Norton emphasize that 'learning' is more than 'training'; it also includes things like mentors and tutors within the organization, as well as that ease of communication among workers that allows them to readily get help on a problem when it is needed. It also includes technological tools; what the Baldrige criteria call "high performance work systems."Prepared by : Hernn Moreano, M.Sc.57PERSPECTIVESThe Business Process PerspectiveThis perspective refers to internal business processes. Metrics based on this perspective allow the managers to know how well their business is running, and whether its products and services conform to customer requirements (the mission). These metrics have to be carefully designed by those who know these processes most intimately; with our unique missions these are not something that can be developed by outside consultants.

The Customer PerspectiveRecent management philosophy has shown an increasing realization of the importance of customer focus and customer satisfaction in any business. These are leading indicators: if customers are not satisfied, they will eventually find other suppliers that will meet their needs. Poor performance from this perspective is thus a leading indicator of future decline, even though the current financial picture may look good.

In developing metrics for satisfaction, customers should be analyzed in terms of kinds of customers and the kinds of processes for which we are providing a product or service to those customer groups.Prepared by : Hernn Moreano, M.Sc.58PERSPECTIVESThe Financial PerspectiveKaplan and Norton do not disregard the traditional need for financial data. Timely and accurate funding data will always be a priority, and managers will do whatever necessary to provide it. In fact, often there is more than enough handling and processing of financial data. With the implementation of a corporate database, it is hoped that more of the processing can be centralized and automated. But the point is that the current emphasis on financials leads to the "unbalanced" situation with regard to other perspectives. There is perhaps a need to include additional financial-related data, such as risk assessment and cost-benefit data, in this category.Prepared by : Hernn Moreano, M.Sc.59PERSPECTIVESStrategy maps are communication tools used to tell a story of how value is created for the organization. They show a logical, step-by-step connection between strategic objectives (shown as ovals on the map) in the form of a cause-and-effect chain. Generally speaking, improving performance in the objectives found in the Learning & Growth perspective (the bottom row) enables the organization to improve its Internal Process perspective Objectives (the next row up), which in turn enables the organization to create desirable results in the Customer and Financial perspectives (the top two rows)Prepared by : Hernn Moreano, M.Sc.60STRATEGIC MAPPINGPrepared by : Hernn Moreano, M.Sc.61STRATEGIC MAPPING

ORGANIZING: The process of creating an organizational structure that allows employees to effectively and efficiently do their work while accomplishing organizational goals and strategic objectives.Organizational Structure is the formal framework by which job task are divided, grouped and coordinated. Just as humans have skeletonsto define their shapes, organizations have structures that define theirs.Prepared by : Hernn Moreano, M.Sc.62Study Unit VISTRATEGY IMPLEMENTATIONWork Specialization: The degree to which tasks in an organization are divided into separate jobs, also know as division of labor.Departmentalization: The basis on which jobs are grouped in order to accomplish organizational goals.Chain of Command: Line of Authority that extends from the upper levels to the lowest.Unity of Command: A subordinate should have only one superior to whom he or she is directly responsible.Span of Control: The number of subordinates a manager can supervise effectively and efficiently.Centralization: The degree to which decision making is concentrated in the upper levels of the organization.Decentralizatin: The handing down of decision making authority to lower levels in an organization.Formalization: The degree to which jobs are standarized and the extend to which employee behavior is guided by rules and procedures Prepared by : Hernn Moreano, M.Sc.63EIGTH KEY ELEMENTS TO BE CONSIDEREDFuncional: Grouping jobs by funtions performed.Product : Grouping jobs by product lineGeographical: Grouping jobs on the basis of territory or geography.Process: Grouping jobs on the basis of product or customer flow.Customer: Grouping jobs onthe basis of common customers.Matrix structure: Two managers exercise authority over organizational activities.Horizontal Structure: An organization with fewer hierarchies.Combined: Use of two or more ways of departmentalization.

Prepared by : Hernn Moreano, M.Sc.64DEPARTMENTALIZATIONPrepared by : Hernn Moreano, M.Sc.65PRODUCT DEPARTMENTALIZATION

Prepared by : Hernn Moreano, M.Sc.66FUNCIONAL DEPARTMENTALIZATION

Prepared by : Hernn Moreano, M.Sc.67PROCESS DEPARTMENTALIZATIONADD VALUE PROCESSES

Departmentalization Advantages DesadvantagesFuncionalJob specialization, efficiency.Gulag ArchipelagoProductSatisfy customer needsProduct unstabilityGeographicalLocal cultureIntegration, high cost.CustomerBetter servedInternal competitionProcessTime/money savingsAdd value processesForget of support and advisor processesMatrix Achieve specific goals

Two or more people to report.Combined

Better specialization and customer satisfactionIncrease costHorizontalDescentralizedNeeds of policy criteriaPrepared by : Hernn Moreano, M.Sc.68ADVANTAGES/DESADVANTAGES68Authority: The right to command, given by the hierackic pisition in the firm organizational structure.Power: The capacity to influence work actions or decision. In an firm, power depends of the authority level. This is known as legitimate power. Coersive power: Rest on the application, or the threat of application of physical or psychological sanctions. Reward power: Based on positive benefits or rewards Expert power: Based in special skills or knowledge Referent power: It arises from identification with a person who has desirable resources or personal traits.

Prepared by : Hernn Moreano, M.Sc.69Study unit VIIAUTHORITY AND POWERTrust: The belief in the integrity, character and ability of a leader. (Integrity, competence, consistency, loyalty and opennes) Credibility: The degree to which followers perceive someone as honest, competent and able inspire. Security: The degree of protection.Prepared by : Hernn Moreano, M.Sc.70Building CulturePractice opennes: Fully disclose relevante informationBe fair: Think before making a decisionSpeak your feelings. Leaders are human beingsTell the true: Always.Show consistency: Predictability.Fulfill your promises: Keep your word.Maintain confidence.Demostrative competence.

Prepared by : Hernn Moreano, M.Sc.71HOW TO BUILD TRUST

Leadership is a process of social influence, which maximizes the efforts of others, towards the achievement of a goal Leadership stems from social influence, not authority or power Leadership requires others, and that implies they dont need to be direct reports No mention of personality traits, attributes, or even a title; there are many styles, many paths, to effective leadership It includes a goal, not influence with no intended outcome

Prepared by : Hernn Moreano, M.Sc.72LEADERSHIPKevin Kruse, 2013, Employee Engagement for Everyone COMPONENTS DEFINITION HALLMARKSSelf AwarenessThe ability to recognize and understand your moods, emotions and drives, as well as their effect on othersSelf confidence.Realistic self assessment.Self deprecating sense of humor.Self RegulationThe ability to control or redirect disruptive impulses and moods.The propendecy to suspend judgment. To think before acting.Thrustworthiness and integrity.Confort with ambiguite.Openness to change.MotivationA passion to work for reasons that go beyond money or status.A propensity to persue goals with energy and persistence.Strong drive to achieve.Optimism, even in the face of failure.Organizational commitment.EmpathyThe ability to understand the emotional makeup of other peopleSkill to treating people according to their emotional reactions Experience in building and retaining talent.Cross cultural sensitivityService to clients and customers

Social SkillProficiency in managing relationships and building networksAn ability to find common ground and build rapport.Effectieness in leading change.Persuasiveness.Expertise in building and leading teamsPrepared by : Hernn Moreano, M.Sc.73The 5 components of EI at workDaniel Goleman, 2004, HBR, 82, 1, 82-91STYLESCOERSIVEAUTHORITATIVEAFFILIATIVEDEMOCRATICPACESETTINGCOACHINGModus operandiImmediate complianceMobilizes people toward a visionCreates harmony and builds emotional bondsForges consensus through participationSets high standards for performanceDevelops people for the futurePhraseDo what I tell youCome with mePeople comes firstWhat do you think?Do as I do, Now.Try thisEI competenceDrive to achieve iniciative, self controlSelf confidence, emphaty, change catalystEmphaty, building relationships, communicationsCollaboration, team leadership, communicationDrive to achive. InitiativeDeveloping others,Empathy, self awarenessWhen the style works bestIn a crisis, to kick start a turnaround or with problem employeesWhen changes require a new vision or when a clear direction is needed.To heal rifts or motivate people during stressful circumstancesTo build buy - in consensusor to get input from valuable employeesTo get quick results from a highly motivated and competent teamTo help an employee,improve performance or develop long term strengthsOverall impact on climateNegativeMost strongly positivePositivePositiveNegativeNegativePrepared by : Hernn Moreano, M.Sc.74LEADERSHIP STYLESDaniel Goleman, 2000. HBR, 78, 2, 78-93BE TRUSTWORTHYIGNATE PASSIONWALK NAKEDMAKE CHANGE LOOK EASYTAKE A VACATIONMOTIVATE PEOPLEHAVE ETHICSBALANCE EGOBE A GREAT TEACHERCHANNEL DYSFUNCTIONAL HABITSPrepared by : Hernn Moreano, M.Sc.7510 LEADERSHIP SKILLS

STYLES DESIGN SCA(s) DECISIONIMPLEMENTATIONCOERSIVEAUTHORITATIVEAFFILIATIVEDEMOCRATICPACESETTINGCOACHINGPrepared by : Hernn Moreano, M.Sc.76STRATEGY vs. LEADERSHIP S T R A T E G I C P L A N N I N G P R O C E S SCONSISTS OF DETERMINING THE EXTENT OF WHICH THE ORGANIZATIONS STRATEGY IS SUCCESSFUL IN ATTAINING GOALS AND OBJECTIVES; IF NOT, THE INTENT OF CONTROL IS TO MODIFY IT OR MAKE CHANGES IN THE FORMULATION AND/OR IMPLEMENTATION SO THAT THE FIRMS CAPABILITY TO ACCOMPLISH ITS GOALS WILL BE IMPROVED.Prepared by : Hernn Moreano, M.Sc.77Study Unit VIIISTRATEGIC CONTROL PROCESS

PROCESS FLUXOGRAMA

Prepared by : Hernn Moreano, M.Sc.78STEP 1. REVIEW MISSION,GOALS, OBJECTIVES.STEP 2. STABLIS STANDARS.STEP 3. MEASURE PERFORMANCE.STEP 4. COMPARE PERFORMANCE VS. STANDARSSTEP 5. IF BOTH OF THEM MATCH. NO ACTION, IF NOT TAKE CORRECTIONS, BUT BEFORE MAKE AN EVALUATION OF MACRO, INDUSTRY AND MICRO ENVIRONMENTS.Prepared by : Hernn Moreano, M.Sc.79STEPS IN STRATEGIC CONTROLPrepared by : Hernn Moreano, M.Sc.80GANTT CHARD

www.smartsheet.comwww.clarizen.comPrepared by : Hernn Moreano, M.Sc.81PERTH CHART

www.brigthubpm.comPrepared by : Hernn Moreano, M.Sc.82PERTH CHART

Prepared by : Hernn Moreano, M.Sc.83LOGICAL FRAMEWORK MATRIX

PROJECT DESCRIPTIONINDICATORSSOURCES AND MEANS OF VERIFICATIONS ASSUMPTIONSPURPOSEADD VALUE TO BUSINESSPORK LEGS AND TURKEY GRILLED NONEOBJETIVEINDUSTRIAL GRILLQUALITY TEST PROTOCOLDELAYSACTIVITY 1DESIGN CONTRACTTECHNICAL REPORTDELAYSACTIVITY 2CONTRACT SELECTIONINTERNAL REPORTDELAYSACTIVITY 3BUILDINGCONTRACTDELAYSPrepared by : Hernn Moreano, M.Sc.84LOGICAL FRAMEWORK MATRIXEL SABROSON CASE