MACC Strat Planning

MACC: MACC:

Strategic PlanningStrategic Planning

Michael J. StahlMichael J. Stahl

October 1999October 1999

M.J. Stahl, MACC: Strategic Planning, October, 1999 2

Table of ContentsTable of Contents• The Strategic PlanThe Strategic Plan• The Mission StatementThe Mission Statement• Intel Mission StatementIntel Mission Statement• MCI Mission StatementMCI Mission Statement• Schwab Mission StatementSchwab Mission Statement• Rapid City Regional Hospital Mission StatementRapid City Regional Hospital Mission Statement• The Vision StatementThe Vision Statement• Microsoft Vision StatementMicrosoft Vision Statement• Delta Vision StatementDelta Vision Statement• Fallon Healthcare System Vision StatementFallon Healthcare System Vision Statement• ValuesValues• Intel Value StatementIntel Value Statement• Cleveland Clinic Foundation’s Statement of ValuesCleveland Clinic Foundation’s Statement of Values• Objectives - What the Organization Plans to AccomplishObjectives - What the Organization Plans to Accomplish• Examples of ObjectivesExamples of Objectives• Intel ObjectivesIntel Objectives• StrategiesStrategies


The Strategic PlanThe Strategic Plan

MissionMissionBusinessBusinessof the of the

organizationorganization

ValuesValuesPrinciplesPrinciples

of the of the organizationorganization

ObjectivesObjectivesWhat kindsWhat kinds

of resultsof results

StrategiesStrategiesHow theHow the

organizationorganizationachieves goalsachieves goals

VisionVisionHope of the Hope of the organizationorganization

Source: Adapted from Ginter, P.M., Swayne, L.M. and Duncan, W. J. Strategic Management of Health Care Organizations. Malden, MA: Blackwell (1998), p. 141.


Mission StatementMission Statement

Business of the Organization Including:Business of the Organization Including:

1.1. Target Customers and MarketsTarget Customers and Markets

2.2. Principal Products and ServicesPrincipal Products and Services

3.3. Geographical Domain Geographical Domain

4.4. Key Activities and FunctionsKey Activities and Functions


Intel Mission StatementIntel Mission Statement

Do a great job for our customers, employees Do a great job for our customers, employees and stockholders by being the preeminent and stockholders by being the preeminent building block supplier to the computing building block supplier to the computing

industry worldwide.industry worldwide.

Source: Stanford Graduate School of Business. Intel’s Strategic Position In The Family Room, 1998.


MCI Mission StatementMCI Mission StatementMCI provides the full range of basic and advanced MCI provides the full range of basic and advanced

telecommunications services domestically and internationally. We are telecommunications services domestically and internationally. We are the second largest long distance carrier in the U.S. and the fifth largest the second largest long distance carrier in the U.S. and the fifth largest carrier of international traffic in the world.carrier of international traffic in the world.

Our key mission through network MCI, our strategic vision, Our key mission through network MCI, our strategic vision, is to continue to grow domestic market share profitability, expand our is to continue to grow domestic market share profitability, expand our global capabilities, and take full advantage of emerging technologies global capabilities, and take full advantage of emerging technologies to become a leader and meet our customers’ needs in the coming to become a leader and meet our customers’ needs in the coming world of multimedia.world of multimedia.

MCI’s strengths in the marketplace are its people, its MCI’s strengths in the marketplace are its people, its responsiveness to customers’ needs, the development of innovative responsiveness to customers’ needs, the development of innovative products based on MCI’s flexible, intelligent network platform– products based on MCI’s flexible, intelligent network platform– integrating the most advanced technologies from the world’s leading integrating the most advanced technologies from the world’s leading supplier.supplier.

Source: MCI Mission Statement. 1995


Schwab Mission StatementSchwab Mission Statement Our mission as a company is to serve the needs of investors. We have Our mission as a company is to serve the needs of investors. We have

all kinds of customers: individuals, professional money managers, all kinds of customers: individuals, professional money managers, companies and their employees. We know our customers have many companies and their employees. We know our customers have many different needs in meeting their own financial goals. We will focus our different needs in meeting their own financial goals. We will focus our resources on the financial services that best meet our customers’ resources on the financial services that best meet our customers’ needs, whether they are transactional, informational, custodial needs, whether they are transactional, informational, custodial services, or something new. We will strive to deliver to our customers:services, or something new. We will strive to deliver to our customers:

• High quality, reliable, ethical products and services at the fair High quality, reliable, ethical products and services at the fair price.price.

• Superior service from the best team of trained, motivated and Superior service from the best team of trained, motivated and ethical employees, supported by the best technology.ethical employees, supported by the best technology.

• A strong company, financially viable under any circumstance.A strong company, financially viable under any circumstance.

Source: Schwab Mission Statement. 1995


Rapid City Regional Hospital Rapid City Regional Hospital Mission StatementMission Statement

Rapid City Regional Hospital’s mission is to provide Rapid City Regional Hospital’s mission is to provide leadership in maintaining and improving the leadership in maintaining and improving the

health care of all the people in the region. The health care of all the people in the region. The hospital demonstrates its commitment to this hospital demonstrates its commitment to this

endeavor by providing quality services through endeavor by providing quality services through innovative programs, comfortable and convenient innovative programs, comfortable and convenient

facilities, and a staff of caring physicians, facilities, and a staff of caring physicians, employees, and volunteers.employees, and volunteers.

Source: Source: Circle of Life; Report to the CommunityCircle of Life; Report to the Community (Rapid City, South Dakota: Rapid City Regional Hospital, 1994), back cover. (Rapid City, South Dakota: Rapid City Regional Hospital, 1994), back cover.


Vision StatementVision Statement

Hope of the Organization Including:Hope of the Organization Including:

1. Hope for the Future1. Hope for the Future

2. Challenging 2. Challenging

3. Inspirational 3. Inspirational

4. Empowers Employees and Customers4. Empowers Employees and Customers

5. Memorable and Provides Guidance5. Memorable and Provides Guidance


Microsoft Vision StatementMicrosoft Vision Statement

A computer on every desk in every home.A computer on every desk in every home.

Source: Microsoft Vision Statement. 1995


Delta Vision StatementDelta Vision StatementOur Vision is for Delta to be the Worldwide Airline Of Choice.Our Vision is for Delta to be the Worldwide Airline Of Choice.

Worldwide….We provide our customers access to the world, and we will be an innovative, Worldwide….We provide our customers access to the world, and we will be an innovative, aggressive, ethical and successful competitor committed to profitability and superior aggressive, ethical and successful competitor committed to profitability and superior customer service. Looking ahead, we will consider opportunities to expand through customer service. Looking ahead, we will consider opportunities to expand through new routes and alliances.new routes and alliances.

Airline….We will stay in the business we know best and where we are leaders—air Airline….We will stay in the business we know best and where we are leaders—air transportation and related services. We believe air transportation will grow worldwide, transportation and related services. We believe air transportation will grow worldwide, and we will focus our time, attention and investment in building on our leadership and we will focus our time, attention and investment in building on our leadership position.position.

Of Choice….We will be the airline of choice for customers, investors and Delta people. Of Choice….We will be the airline of choice for customers, investors and Delta people. For experienced business and leisure travelers, we will provide value and a superior For experienced business and leisure travelers, we will provide value and a superior travel experience from the time a reservation is made to when baggage is claimed. For travel experience from the time a reservation is made to when baggage is claimed. For air shippers, we will provide service and value. For our stockholders, we will earn a air shippers, we will provide service and value. For our stockholders, we will earn a consistent, superior or financial return. For Delta people, we will offer challenging, consistent, superior or financial return. For Delta people, we will offer challenging, rewarding, results-oriented work in an environment that respects and values their rewarding, results-oriented work in an environment that respects and values their contributions. contributions.

Source: Delta Vision Statement. 1995


Fallon Healthcare SystemFallon Healthcare System Vision Statement Vision Statement

The Fallon Healthcare System, committed to creating The Fallon Healthcare System, committed to creating healthier lives in our communities:healthier lives in our communities:

• will relentlessly pursue unparalleled quality, value, and patient, will relentlessly pursue unparalleled quality, value, and patient, customer, and staff satisfaction;customer, and staff satisfaction;

• will create the national model for integrated health care delivery and will create the national model for integrated health care delivery and financing;financing;

• will continuously rethink, reshape, and refine solutions to health care will continuously rethink, reshape, and refine solutions to health care challenges;challenges;

• will create healthier communities by creatively challenging individuals will create healthier communities by creatively challenging individuals to be more responsible for their personal health status; and to be more responsible for their personal health status; and

• will be cherished as the best place to come for care and the best place will be cherished as the best place to come for care and the best place to work.to work.

Source: From Fallon Healthcare System vision statement. Source: From Fallon Healthcare System vision statement.


ValuesValues

• The PRINCIPLES guiding the organization that The PRINCIPLES guiding the organization that

make it unique.make it unique.

• Value often relate to ethical behavior and socially Value often relate to ethical behavior and socially

responsible decision making. responsible decision making.

• Examples include integrity, quality, equality, Examples include integrity, quality, equality,

inclusion and teamwork.inclusion and teamwork.


Intel Value StatementIntel Value Statement

DisciplineDisciplineThe complexity of our work and tough business environment The complexity of our work and tough business environment

demands a high degree of self discipline.demands a high degree of self discipline.

We strive to:We strive to:• Conduct business with uncompromising integrity and professionalism.Conduct business with uncompromising integrity and professionalism.• Clearly communicate intentions and expectations.Clearly communicate intentions and expectations.• Make and meet commitments.Make and meet commitments.• Properly plan, fund and staff projects.Properly plan, fund and staff projects.• Pay attention to detail.Pay attention to detail.

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Results OrientationResults OrientationWe are results oriented.We are results oriented.

We strive to:We strive to:• Set challenging goals.Set challenging goals.• Execute flawlessly.Execute flawlessly.• Focus on output.Focus on output.• Assume responsibility.Assume responsibility.• Confront and solve problems.Confront and solve problems.

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Risk TakingRisk TakingTo succeed we must maintain our innovative environment.To succeed we must maintain our innovative environment.

We strive to:We strive to:• Embrace change.Embrace change.• Challenge the status quo.Challenge the status quo.• Listen to all ideas and viewpoints.Listen to all ideas and viewpoints.• Encourage and reward informed risk taking.Encourage and reward informed risk taking.• Learn from our successes and mistakes.Learn from our successes and mistakes.

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Great Place to WorkGreat Place to WorkA productive and challenging work environment is key to our success.A productive and challenging work environment is key to our success.

We strive to:We strive to:• Be open and direct.Be open and direct.• Work as a team with respect and trust for each other.Work as a team with respect and trust for each other.• Manage performance fairly and firmly.Manage performance fairly and firmly.• Recognize and reward accomplishments.Recognize and reward accomplishments.• Maintain a safe and neat workplace. Maintain a safe and neat workplace. • Be an asset to the community.Be an asset to the community.• Have fun. Have fun.

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Customer OrientationCustomer OrientationPartnerships with our customers and other business partners Partnerships with our customers and other business partners

are essential for our mutual success.are essential for our mutual success.

We strive to:We strive to:• Listen to our partners well. Listen to our partners well. • Communicate mutual intentions and expectations.Communicate mutual intentions and expectations.• Deliver innovative and competitive products and services.Deliver innovative and competitive products and services.• Make it easy to work with us.Make it easy to work with us.

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QualityQualityOur business requires continuous improvement of our Our business requires continuous improvement of our

performance to our Mission and Values.performance to our Mission and Values.

We strive to:We strive to:• Set challenging and competitive goals.Set challenging and competitive goals.• Do the right things right.Do the right things right.• Excel at Intel basics.Excel at Intel basics.• Continuously learn, develop and improve.Continuously learn, develop and improve.• Take pride in our work.Take pride in our work.

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Cleveland Clinic Foundation’s Statement of ValuesCleveland Clinic Foundation’s Statement of ValuesThe Cleveland Clinic Foundation was established by visionary leaders who believed in The Cleveland Clinic Foundation was established by visionary leaders who believed in simple, guiding principles. Five fundamental values from the foundation of the Cleveland simple, guiding principles. Five fundamental values from the foundation of the Cleveland Clinic culture.Clinic culture.

CollaborationCollaboration The phrase “to act as a unit” forms the basis of the Cleveland Clinic’s group The phrase “to act as a unit” forms the basis of the Cleveland Clinic’s group practice. practice. This value, established as a guiding principle when the Cleveland Clinic This value, established as a guiding principle when the Cleveland Clinic was founded, ensures was founded, ensures that all patients will benefit from the collective wisdom of that all patients will benefit from the collective wisdom of a team of health care a team of health care professionals.professionals.

QualityQuality A commitment to quality has created the Cleveland Clinic’s legacy of A commitment to quality has created the Cleveland Clinic’s legacy of achievement and innovation resulting in excellent and cost-effective patient care. achievement and innovation resulting in excellent and cost-effective patient care. Nationally, Nationally, the Cleveland Clinic has taken a leadership role in establishing the Cleveland Clinic has taken a leadership role in establishing standards for measuring and standards for measuring and reporting guidelines for health care.reporting guidelines for health care.

IntegrityIntegrity An adherence to scientific and professional integrity are the ethical cornerstones An adherence to scientific and professional integrity are the ethical cornerstones that underlie our delivery of patient care, basic and clinical research that underlie our delivery of patient care, basic and clinical research investigations, investigations, education of residents and allied health professionals, as well as education of residents and allied health professionals, as well as the fiscal and administrative the fiscal and administrative management of the Cleveland Clinic.management of the Cleveland Clinic.

CompassionCompassion A commitment to compassionate care includes a respect for our patients’ and A commitment to compassionate care includes a respect for our patients’ and their their families’ needs for emotional support during their illness. The Clinic families’ needs for emotional support during their illness. The Clinic believes in providing believes in providing the highest level of services to its patients and families.the highest level of services to its patients and families.

CommitmentCommitment As an institution, the Cleveland Clinic recognizes its responsibilities to the As an institution, the Cleveland Clinic recognizes its responsibilities to the community community in which it resides, and to the trustees who oversee the management in which it resides, and to the trustees who oversee the management of its resources.of its resources.

Source: The Cleveland Clinic Foundation, Division of Health Affairs, Cleveland, Ohio, 1994.Source: The Cleveland Clinic Foundation, Division of Health Affairs, Cleveland, Ohio, 1994.


OBJECTIVES OBJECTIVES What the Organization Plans to What the Organization Plans to

AccomplishAccomplishSSpecific pecific - pertaining to a certain task or program- pertaining to a certain task or program

MMeasurableeasurable - quantifiable by date, outcomes, responsibility - quantifiable by date, outcomes, responsibility

AAttainable ttainable - able to be completed within the time indicated and with - able to be completed within the time indicated and with existing constraintsexisting constraints

RResults-orientedesults-oriented - focused on short-term activities to gain longer - focused on short-term activities to gain longer term goalsterm goals

TTime-determinateime-determinate - the time frame for accomplishment is established - the time frame for accomplishment is established


Examples of ObjectivesExamples of Objectives

ObjectiveObjective MeasureMeasure Short Term Short Term Long TermLong Term (6 months) (6 months) (5 years)(5 years)

Customer satisfaction Percent satisfiedCustomer satisfaction Percent satisfied 60 60 9595Market shareMarket share Percent Percent 10 10 1515GrowthGrowth $ Sales $ Sales 8 million 8 million 12 million12 millionProfitabilityProfitability ROA (percent) ROA (percent) 12 12 1616Stockholder value EPS ($)Stockholder value EPS ($) 1.40 1.40 1.901.90Employee stability Turnover (percent) 40Employee stability Turnover (percent) 40 1515

Note: ROA is return on assets. EPS is earnings per share. Note: ROA is return on assets. EPS is earnings per share.

Source: Stahl, M.J. and Grigsby, D. W. Strategic Management: Total Quality and Global Competition. Oxford, UK: Blackwell (1997) p. 36.


Intel ObjectivesIntel Objectives1.1. Strengthen the #1 position of Intel microprocessors in the new computing industryStrengthen the #1 position of Intel microprocessors in the new computing industry ..

• Make high performance Intel Architecture processors the preferred choice for desktop, Make high performance Intel Architecture processors the preferred choice for desktop, server, and mobile market segments.server, and mobile market segments.

• Make the Intel Architecture PC the platform of choice for authoring and visualization of Make the Intel Architecture PC the platform of choice for authoring and visualization of digital content.digital content.

• Provide strategic leadership/guidance to the industry to assure an adequate supply of PC Provide strategic leadership/guidance to the industry to assure an adequate supply of PC components.components.

• Rapidly grow Pentium processor PC shipments and increase Intel’s influence in Asia, Rapidly grow Pentium processor PC shipments and increase Intel’s influence in Asia, Latin America and Eastern Europe.Latin America and Eastern Europe.

• Help our segment-leading, market-making, and regional brand customers to be successful Help our segment-leading, market-making, and regional brand customers to be successful through fastest time to market.through fastest time to market.

• Make the Pentium Pro processor the CPU of choice for the 32-bit corporate desktop, Make the Pentium Pro processor the CPU of choice for the 32-bit corporate desktop, workstation and server market segments.workstation and server market segments.

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2. 2. Make the high performance PC “IT” and establish Intel as the Make the high performance PC “IT” and establish Intel as the leading PC communications companyleading PC communications company..

• Have the high-performance PC recognized as the indispensable tool for Have the high-performance PC recognized as the indispensable tool for work, learning and play on the net and off the net.work, learning and play on the net and off the net.

• Develop technologies and common industry specifications to enable the Develop technologies and common industry specifications to enable the PC to support real-time multimedia communications (RMC) applications:PC to support real-time multimedia communications (RMC) applications:

-- Accelerate the deployment of RMC applications into the -- Accelerate the deployment of RMC applications into the home, home, business and mobile market segments.business and mobile market segments.-- Extend the availability of RMC to on-line services and the -- Extend the availability of RMC to on-line services and the Internet. Internet.

• Engage the new media industry and assure the timely availability of RMC Engage the new media industry and assure the timely availability of RMC digital content for the Intel Architecture PC.digital content for the Intel Architecture PC.

• Build successful businesses in selected networking and communication Build successful businesses in selected networking and communication market segments.market segments.2 of 42 of 4


Intel ObjectivesIntel Objectives


3.3. Harness the Internet “energy” as a source of applications for Harness the Internet “energy” as a source of applications for high performance PC’s.high performance PC’s.

• Help develop an Intel Architecture based Internet Dream Machine Help develop an Intel Architecture based Internet Dream Machine and provide a well integrated, cost effective access/presence server and provide a well integrated, cost effective access/presence server to small and medium businesses. to small and medium businesses.

• Make the Intel Architecture PC the port of choice for all Internet Make the Intel Architecture PC the port of choice for all Internet systems and application software; encourage and aid the Internet systems and application software; encourage and aid the Internet ISV industry to enrich their applications with RMC capabilities.ISV industry to enrich their applications with RMC capabilities.

• Be a leading user of Internet technologies inside of Intel including Be a leading user of Internet technologies inside of Intel including providing an awesome Intel corporate web site.providing an awesome Intel corporate web site.

• Market and evangelize the high performance Intel Architecture PC Market and evangelize the high performance Intel Architecture PC as a superior device for on-the –net and off-the-net applications.as a superior device for on-the –net and off-the-net applications.

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4.4. Excel at Intel basics.Excel at Intel basics.• Be the “no excuses” supplier of choice to our customers.Be the “no excuses” supplier of choice to our customers.• Continuously improve our performance to Intel values.Continuously improve our performance to Intel values.• Build and fill the industry’s best factories with leading edge Build and fill the industry’s best factories with leading edge

products and processes.products and processes.• Make our Information Technology systems a competitive Make our Information Technology systems a competitive

advantage.advantage.• Align our semiconductor business and capacity to support growth Align our semiconductor business and capacity to support growth

in the PC and cellular phone markets.in the PC and cellular phone markets.

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StrategiesStrategies

HOW the organization achieves goalsHOW the organization achieves goals

MEASURES MEASURES – Public statementsPublic statements– Pattern in a stream of decisionsPattern in a stream of decisions

MACC Strat Planning

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