a strategic management & planning toolkit david peacock knowledge services & e-learning...
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A Strategic Management & Planning Toolkit
David Peacock
Knowledge Services & E-Learning Manager
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Outline:
• What is Strategy?• Analysing External Drivers: tools to analyse
the organisations external environment.• Analysing Strategic capability: tools to
determine the organisations resources and competencies.
• Analysing the best fit: tools to aid strategic decision making.
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What is Strategy?
“Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competencies with the aim of fulfilling stakeholder expectations.”
- Johnson, Scholes and Whittington.
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Strengths & Weakness
Capabilities & Resources
Mission
Opportunities & Threats•Needs of customers & stakeholders
•PEST Forces•Competitors and allies
The FitBest course
of action
What do we want to accomplish?
What are your capabilities?
What is needed
and feasible?
B.W.Barry
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(Open University)
Analyse near EnvironmentAnalyse Near Environment
Organisational purposes and
current strategy
Analyse capabilities and resources
Strategic opportunities and threats
Identify alternatives
Strategic decision making
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Levels of Strategy
• Corporate-level strategy
• Business-level strategy
• A strategic business unit strategy
• Trust level strategy
• Departmental level strategy
• A divisional strategy
E.g., Library Knowledge Service
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Analysing the External environment
• PEST
• Porters five forces
• SWOT
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PEST :-
• P - Political / Legal• E - Economic / Financial factors• S – Socio-cultural factors• T - TechnologicalWhat environmental factors are affecting the
organisation?Which of these are the most important at the
present time? Which will be in the next few years?
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PEST (Political / Legal) -
The main DOH policy initiatives…..• World class Commissioning/ Practice Based
Commissioning• Darzi review• Role of independent contractors/sicial enterprises• Links to Local Government / Social care• E-Government initiatives• Data Protection & copyright/ FOI• Records management
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PEST (Economic / financial)-
• WCC• Practice based commissioning• PBR and the “internal market”• Impact of Independent sector provision• Local overspends & deficits• Government public spending plans• PFI developments
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PEST (Socio-cultural factors)
• Consumerism & growth of choice• Development of expert & informed patients• Local population demographics• Growing obesity and poor diets• Lifestyle changes• Changes to family structure - singletonism
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PEST – (Technological)
• NPFiT/CfH• ESR and additional functionality• Multi-purpose mobile devices• Digital TV• E-learning and m-learning• Tele-medicine• Computer Mediated Communication (CMC)
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Substitutes
buyers
Industry Competitors
Rivalry
Potential Entrants
Suppliers
Porters five Forces model
Threat of new entrantsBargaining power of suppliers Bargaining power
of buyers
Threat of substitute products/ services
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Central government
Client vcitizen
Street level public organisations
Professional associationsRelated street
level org.
Adapted five Forces model
Mckevitt, 2000
Suppliers
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SWOT
• Strengths
• Weaknesses
• Opportunities
• Threats
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Opportunities:- issues to consider
• market developments;
• competitor vulnerabilities;
• political, economic, social and technological trends;
• Unique Selling Points;
• new services; new partnerships;
• and new distribution channels.
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Threats:- issues to consider
• political, economic, social and technological trends;
• competitor strengths and intentions;
• new technologies, services, ideas;
• changing customer/client demand;
• sustaining internal capabilities;
• and new obstacles.
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Six planning areas
• Service/ product (what are we selling/delivering?)• Process (How are we delivering/selling it?• Customer/Client (Who are we delivering /selling it
to?)• Distribution (How does it reach them?)• Finance/resources (What are the resources,
costs and investments required?)• Administration (and how do we manage all this?)
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Analysing internal strategic capability
• Strategic capability – the resources and competencies of an organisation needed for it to survive and prosper.– SWOT– The Value Chain– Benchmarking
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Strengths & weaknesses: issues to consider
• Capabilities; resources, assets, people? • Reputation and presence? • Experience and knowledge? • Marketing – reach, distribution, awareness? • Location and geography? • Value, impact and quality of service? • Processes, systems, IT?
• Cultural, attitudinal and behavioural issues?
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Benchmarking
• used to compare your services capabilities with similar services in other organisation
• identify issues and problems, and understand what makes others perform “better” than your own service.
-Data or metrics benchmarking
- Process benchmarking
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Analysing the “best fit”
• SWOT & PEST Analysis
• Public sector Portfolio matrix
• Maslin Multi-dimensional matrix
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SWOT & PEST Analysis
Rising public Expectations
New med. Technologies
Demographic trends
Competitive Market
Capacity for innovation ++ + + + ++
Good links with Social care + 0 + + _
Organisation still defining role 0 0 0 _ _
No financial growth _ _ _ _ _
_
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Possible responses on the basis of a SWOT analysis (adapted from
McLaughlin et al).
Attack
“Go for It”
Beware
“Don’t do it”
Explore
“If you have time”
Project
“Watch yourself”
Opportunity
Threat
Strength Weakness
SITUATIOn ORG. CAPABILITY
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Public Sector Portfolio matrix
HIGH
LOW
Public Sector Star
(Short waiting times)(Transplants)
(Improved cancer treatments)
Political hot box
(MRSA/infection control)
(Dentists)(New costly drugs)
(Closure of Services)
Golden Fleece
(Community services)
(Ambulance Service)
Back draw issue
(Fertility treatment)
(Mental Health)
HIGH LOWAbility to provide effectively
Public
need,
support
&
funding
attractive-
ness
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Maslin Multi-Dimensional Matrix (MMDM)
HIGH
LOW
Mental Health
Oncology
Dental Services
LOW HIGHNeeds or wants of client Group
Level of
Provision