PEP Components

PEP Components

1. Mission Statement (Why You Exist)
   An explanation of the purpose or reasons for existing as an organization. Provides focus and defines scope of business. Includes five components – name, role, key products/services, key customers, and expected result.
2. Values (Your Attitudes and Beliefs)
   Values are beliefs that guide behaviors. They reflect the personality and culture of an organization. Values are words, phrases or statements that clarify expected behaviors in order to help the organization make difficult decisions and fulfill its mission and vision.
3. Vision Statement (What You Aspire to Become)
   A statement describing what the organization aspires achieve in the future. (5 years)
4. Products and/or Services
   Products and services are deliverables created as a result of the work activity of the organization. Products are tangible, i.e., have physical form. Services, on the other hand, are intangible. Both are discrete: products are delivered in units; services are delivered in service events. Basically, products are WHAT you deliver, services are HOW you deliver them.
5. Marketing Plan
   Using the results of the market analysis and the study of the competition, the marketing plan identifies who your customers are and how you are going to manage your relationship with them. It also includes your promotional strategies.
6. Strategic Plan
   A detailed plan of action (resulting from the process of strategic planning) that an organization develops that addresses how the organization plans to accomplish its vision and strategic goals. The strategic plan includes long term and short term goals/objectives and measures.
7. Business Resource Plan
   A plan that outlines all the resources required to accomplish the organization’s mission and vision. Resources include people, time, space, money, equipment, technology, etc.
8. SWOT Analysis
   An assessment both internally and externally of the organization. The internal assessment consists of looking at the Strengths and Weaknesses of an organization. The external assessment looks at the Opportunities and Threats an organization faces. SWOT considers factors such as the industry, competition, functional areas, and management. The SWOT analysis is typically used as an input to the strategic planning process.
9. Market Analysis
   The key element of a successful marketing plan is knowing your customers – their likes, dislikes, expectations, segments, etc. Market analysis also looks at the market trends applicable to the organization’s products and services, competitors, and customers.
10. Study of the Competition
    A study that identifies the organization’s direct and indirect competitors as well as details about the competition’s business, products, services, trends, etc.
11. Competitive Benchmarks
    Performance targets that are established for an organization based on the performance measures that the competition and/or best practice organizations are experiencing. Comparisons are usually made between the organization’s performance and the performance of the competition/best practice.
12. Business Systems and Processes
    A system is any whole or group of parts dedicated to the same purpose. A system possesses critical properties that none of its parts possess, properties that arise from the interactions of its parts and give the whole its identity and character. Every system must have a purpose. Processes, on the other hand, are components of a system. Processes have purposes and functions of their own, but by themselves, processes cannot accomplish the overall purpose of the system. Every business system should be defined in terms of suppliers, inputs, processes, outputs, and customers.
13. Customer/Employee Satisfaction/Loyalty
    You should know your customers’ and employees’ current level of satisfaction and your target satisfaction levels. Also, your plan for collecting, analyzing, and reacting to satisfaction data should be defined.
14. Quality Function Deployment
    A structured method in which customer requirements are translated into appropriate technical requirements for each stage of product/service development and production. QFD is often referred to as listening to the voice of the customer. The House of Quality is a tool that helps you translate customer needs into the characteristics of the products/services that your organization produces.
15. Audits
    Determining the procedures by which the organization stays on track. This includes a plan for conducting audits of the organization and a clear set of standards against which the audits are to be conducted.
16. Capability Study and Analysis
    Collecting and analyzing data that helps determine the capability of the organization in meeting its core business functions and accomplishing its mission and vision. Gaps between what is needed and what currently exists are identified. This study and analysis provides data that helps drive the business resource plan.
17. Strategic Partnerships
    A type of relationship between customer and supplier aimed at reducing total cost of ownership through joint participation in design, exchange of information, quality improvement strategies and the exploitation of market synergy. Can include sourcing with a single supplier.
18. Core Business Functions
    The key functions of the organization through which the final products or services of the organization are created and delivered to its ultimate customers. Without these key functions the organization would not exist.
19. Operational Benchmarks
    Performance targets that are established for an organization. Operational Benchmarks involve the organization comparing current measures of its own performance against past measures of its own performance.
20. Management Plan (Executive Human Resource Plan)
    The management plan is a statement of the structure of the organization, the skills and behaviors required of the leadership team, the means by which decisions are made, etc. The management plan should also address plans for hiring and training staff and developing management talent (succession planning). An assessment of management strengths and weaknesses is included as well as an analysis of the gap between management capability and the needs of the organization.
21. PEP Oversight Plan
    This is a statement of how the organization intends to ensure the Performance Excellence Portfolio is kept current.