benchmarking strategic planning
DESCRIPTION
I was asked recently for my thoughts on how to go about benchmarking a Strategic Planning process. Here are some slides with my thoughts and findings.TRANSCRIPT
© 2013 Copyright ISC Ltd.
Strategic Planning:Benchmarking and Best Practice
“If you don’t have any important choices to make about the future, you don’t need strategic planning”
© 2013 Copyright ISC Ltd.
How to benchmark Strategic Planning I was asked recently for my thoughts on how
to go about benchmarking a Strategic Planning process
My immediate response was that the process is pretty much generic, but good practice is likely to be defined by roles and behaviours adopted within the process
Benchmarking Strategic Planning A few words of caution…
Adopting so-called best practices is a follower’s strategy
An organisation that simply adopts another’s practices will never be a leader and is likely not to be innovative, agile or fit for the future
That’s not to say that Benchmarking and adoption of best practices are a waste of time. It’s just that they need to be done with thought and consideration of where and when they might add value. When used to stimulate ideas and step changes in performance they certainly have their place
© 2013 Copyright ISC Ltd.
Information sources
It’s fairly easy to find information on good practices in Strategic Planning The Association for Strategic Planning has
defined 10 Attributes The APQC published a benchmarking study and
summarised 9 key points Numerous consultancies have published papers
Some of the research is quite dated, but is remarkably consistent with more recent material
© 2013 Copyright ISC Ltd.
The underlying framework
The APQC says approaches to planning processes and planning system designs vary greatly, but the underlying framework has universal relevance
© 2013 Copyright ISC Ltd.
Issue and option
generationPrioritisation Review and
feedback
My conclusions
Based on my research, I thought it worth sharing the overall conclusions on best practices in strategic planning…
© 2013 Copyright ISC Ltd.
The planning process
It’s generic! It should be flexible and subject to continuous
improvement Feedback and learning should be built in It’s a vehicle for learning and for preparing
people for implementation Need a supporting toolkit that is flexible and
scalable Tools are just that; tools not rules! It’s not about templates
© 2013 Copyright ISC Ltd.
Strategic vs. Business Planning Strategic planning cycle times are shortening,
so the boundaries between SPs and BPs are blurring
Business Planning is based on a strong corporate culture and vision
Strategic Plan may cover 3-5 years but there should be a 1 year drop off so the plan is updated annually
Business Plan covers the next 12 months
© 2013 Copyright ISC Ltd.
Who develops strategy?
Led from the top Those who carry out strategy also make it Developed as a team, not done by Planners
or Finance
© 2013 Copyright ISC Ltd.
Creating strategy
Insight comes from asking the right questions Fact-based approach, data driven Use external data primarily, not internal
performance (or worse, Financial data) Document the strategic thinking and choices Challenge the status quo, set stretch goals Driven by your Vision, not your Mission
© 2013 Copyright ISC Ltd.
The plan
Short and simple; a few pages long A road map, not a book Focused on the most important things to
accomplish Must be implementable, not a wish list Not tablets of stone, responsive to changing
conditions A means to an end, not the end in itself
© 2013 Copyright ISC Ltd.
Communications
The strategy should be transparent 2-3 levels down the organisation
Communication of the strategy is formal and rigorous “Sharing Strategic Plans with all employees is one
of the few generic business practices that differentiates the above average performers from the rest” [American Foundation for Quality Survey]
© 2013 Copyright ISC Ltd.
Implementation
You have to do something with it (other than file and forget)
Measure progress against goals and achievement of deadlines
Deliver practical benefits over the long term
© 2013 Copyright ISC Ltd.
Some final thoughts…
Best practices are actually only “best” in the context of the organisation, culture, processes, people and skills from which they originated
They don’t come with a Manual that describes how to implement them or how to achieve superior levels of performance
It can be extremely difficult to replicate others’ capability to achieve a particular level of performance because that is largely due to their people, not their processes
© 2013 Copyright ISC Ltd.
Further reading
From my website: Why Benchmarking Might Not Work SMART Planning Are you ready for a Balanced Scorecard? Does your Balanced Scorecard Add Value? Identifying Measurements with a Balanced
Scorecard OpenStrategies: An Introduction
© 2013 Copyright ISC Ltd.
Improvement Skills Consulting Ltd.
07850 728506
@ianjseath
www.improvement-skills.co.uk
© 2013 Copyright ISC Ltd.16