08419 session five - strategic planning

8/2/2019 08419 Session Five - Strategic Planning

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Strategic Planning

Sandeep Bhasin

[email protected]


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Planning

The act or process of making a plan

Analysis ofOpportunity

IdentifyAim

ExploreOptions

Select BestOption

DetailedPlanning

PlanEvaluation

PlanImplementatio

n

Closure

R

eview


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Types of Planning Strategic planning Business planning Project planning Program planning

Basic Strategic Planning Issue-Based or Goals-Based

Strategic PlanningAlignment ModelScenario PlanningOrganic (or Self-Organizing)Planning


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Strategic Planning

Process to establish priorities on what you willaccomplish in the future

Forces you to make choices on what you will doand what you will not do

Pulls the entire organization together around asingle game plan for execution

Broad outline on where resources will getallocated


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Why Strategic Planning

If you fail to plan, then you plan to fail beproactive about the future

Strategic planning improves performance

Counter excessive inward and short-term thinking

Solve major issues at a macro level Communicate to everyone what is most important


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Developing a Plan

Mission (Core purpose of your organization) Vision (What is your organizations vision of

excellence)

Values (principles, standards, and actionsconsidered worthwhile in the organization)


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Questions to Ask

Where are we now? (Assessment) Where do we need to be? (Gap / Future End State)

How will we close the gap (Strategic Plan)

How will we monitor our progress (Balanced

Scorecard)


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Strategic Plan Model

EnvironmentalScan

Assessment

BackgroundInformation

SituationalAnalysis

SWOT Strengths,Weaknesses,Opportunities,Threats

Situation Past,Present andFuture

SignificantIssues

Align / Fit withCapabilities

Mission &Vision

Values /GuidingPrinciples

Major Goals

SpecificObjectives

PerformanceMeasurement

Targets /Standards ofPerformance

Initiatives andProjects

Baseline Components

PerformanceManagement

Review Progress BalancedScorecard

Take CorrectiveActions

Down toSpecifics

Evaluate

Gaps Action Plans Feedbackupstream revise plans

Where we areWhere we wantto be How we will

do it

How are wedoing


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Plan Development Assessment Environmental Scan

gathering of information that concerns theorganizations environments

analysis and interpretation of this information

application of this analyzed information in decision

making


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Plan Development Assessment

SWOT Analysis Strengths What are some internal positive things about your

organization? What does the community see as your strengths?

Weaknesses What are some weaknesses in organization? What does the community see as your weaknesses?

Opportunities What are some opportunities in your community or region?

What are some emerging trends?

Threats What are some provincial or national issues facing the

organization?

What are some technology issues that face the organization?


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Plan Development Baseline

Puts everything about the organization into asingle context for comparability and planning

Descriptive about the company as well as theoverall environment

Include information about relationships customers, suppliers, partners

Preferred format is the Organizational Profile


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Operating Environment Products and Services Suppliers, DeliveryChannels, Contracts, Arrangements, . . .

Organizational Culture Barriers, Leadership,Communication, Cohesiveness

Workforce Productivity Skill levels, diversity,contractors, aging workforce

Infrastructure Systems, technology, facilities

Regulatory Product / Service Regulation, ISO

Quality Standards, Safety, Environmental, . . .


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Business Relationships Organizational Structure Business Units, Functions,Board, Management Layers

Customer Relationships Requirements, Satisfaction,Loyalty, Expectations

Value Chain Relationship between everyone in the valuechain

Partner Relationships Alliances, long-term suppliers,customer partnerships, . . .


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Gap Analysis

Baseline / OrgProfile

Challenges / SWOT

Gap = Basis for Long-TermStrategic Plan

Gap = Basis for Long-TermStrategic Plan


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Plan Development Components

Mission

Vision

Goals

Objectives

Measures

Why we exist

What we want to be

Indicators andMonitors of success

Desired level ofperformance andtimelines

Planned Actions to

Achieve Objectives

O1 O2

AI1 AI2 AI3

M1 M2 M3

T1 T1 T1

Specific outcomes expressed inmeasurable terms (NOTactivities)

Strategic Plan

Action Plans

Evaluate Progress

Targets

Initiatives

What we must achieve to be successful


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Mission: Captures the essence of why the organizationexists Who we are, what we do

Explains the basic needs that you fulfill

Expresses the core values of the organization Should be brief and to the point

Easy to understand

If possible, try to convey the unique nature of

your organization and the role it plays thatdifferentiates it from others


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Vision: How the organization wants to be perceived inthe future what success looks like

An expression of the desired end state

Challenges everyone to reach for somethingsignificant inspires a compelling future

Provides a long-term focus for the entireorganization


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Goals: Describes a future end-state desired outcomethat is supportive of the mission and vision.

Shapes the way ahead in actionable terms.

Best applied where there are clear choices aboutthe future.

Puts strategic focus into the organization specificownership of the goal should be assigned tosomeone within the organization.

May not work well where things are changing fast


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Objectives: Relevant - directly supports the goal Compels the organization into action

Specific enough so we can quantify and measure theresults

Simple and easy to understand

Realistic and attainable

Conveys responsibility and ownership

Acceptable to those who must execute

May need several objectives to meet a goal


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Goals Vs. Objectives

GOALS OBJECTIVES

Very short statement, fewwords

Longer statement, moredescriptive

Broad in scope Narrow in scope

Directly relates to the MissionStatement

Indirectly relates to the MissionStatement

Covers long time period

(such as 10 years)

Covers short time period (such 1

year budget cycle)


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Plan Development Down to Specifics

Action Plans: The Action Plan identifies the specific steps that willbe taken to achieve the initiatives and strategicobjectives where the rubber meets the road

Each Initiative has a supporting Action Plan(s)

attached to it Action Plans are geared toward operations,

procedures, and processes

They describe who does what, when it will be

completed, and how the organization knows whensteps are completed

Like Initiatives, Action Plans require the monitoring ofprogress on Objectives, for which measures areneeded

Requires that you have answered the Who, What, How, Where,and When questions related to the project or initiative that

drives strategic execution


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Plan Development Down to Specifics

Targets: For each measurement, you should have at leastone target

Targets should stretch the organization to higherlevels of performance

Incremental improvements over currentperformance can be used to establish your targets

Targets put focus on your strategy

When you reach your targets, you have

successfully executed your strategy


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Plan Development Evaluate

Continuous support through BalancedScorecard

Performance Measurement

Link budgets to strategic plans

The worlds best Strategic Plan will fail if it is notadequately resourced through the budgetingprocess

Strategic Plans cannot succeed without people,time, money, and other key resources

Aligning resources validates that initiatives andaction plans comprising the strategic plan supportthe strategic objectives


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Plan Development Evaluate Every Action Plan should identify the following:

The people resources needed to succeed

The time resources needed to succeed

The money resources needed to succeedThe physical resources (facilities, technology,etc.) needed to succeed


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Some Final Thoughts

Integrate all components from the top to thebottom: Vision > Mission > Goals > Objectives> Measures > Targets > Initiatives > ActionPlans > Budgets.

Get Early Wins (Quick Kills) to create somemomentum

Seek external expertise (where possible andpermissible)

Articulate your requirements to seniorleadership if they are really serious aboutstrategic execution

08419 session five - strategic planning

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