management) strategic planning - concepts

8/14/2019 Management) Strategic Planning - Concepts

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Some Concepts to Develop a

Strategic Planning

April 2008

Mrio Lus Tavares Ferreira


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SWOT

Technical support

Internal processesChannels network

World class product

Financial resourcesKnow-how

External Environment

Competitors market shareEuro X Dollar

Technology development

Water & Energy crisesEnvironment awareness

Productivity improvement

ThreatsOpportunities

WeaknessesStrengths

Internal Environment


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TOWS matrix

W-T strategiesS-T strategiesThreats

W-O strategiesS-O strategiesOpportunities

WeaknessesStrengths

S-O strategies pursue opportunities that are a good fit to the companies

strengths.

W-O strategies overcome weaknesses to pursue opportunities.

S-T strategies identify ways that the firm can use its strengths to reduce

its vulnerability to external threats.W-T strategies establish a defensive plan to prevent the firm's

weaknesses from making it highly susceptible to external threats.


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PEST analysis

A scan of the external macro-environment inwhich the company wants to operate (or

operates) and can be expressed in terms of

the following factors:

Political Economic

Social Technological


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Total sales

Companys sales

Product lines

Product config

Product items

Sector sales

ProductLevel

Territory

Region

Country

Client

World

GeographicalLevel

Shortterm

Mediumterm

Longterm

Timing Level

Ninety ways to measure demand (6 x 5 x 3)


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Life cycle

Product

development

introduction

maturitydecline

Sales & profit

Invest & expenses

Sales

Profit

growth


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Boston matrix Product life cycle


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Directional policy matrix or GE-McKinsey matrix

The diameter of each

pie is proportional to

the Volume or Revenue

accruing to each

Segment, and the solid

slice of each pierepresents the share of

the market enjoyed by

the Company.


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S curve


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Management

Management, control and evaluation


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Keys of Success - Facts of Failure

>No accountability for deployment

>Too many goals, strategies, or objectives - no

apparent priority

>Plan in a vacuum-functional focus

>No overall strategy to implement

>Make no attempt to link with day-to-day

operations

>Not being thorough-glossing over the details

>Assign roles and responsibilities

>Establish priorities

>Involve mid-level management as active

participants

>Think it through - decide how to manage

implementation

>Charge mid-level management with

aligning lower-level plans

>Make careful choices about the contents

of the plan and form it will take

FailureSuccess

Deployment - Plan Completing


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No accountability

Never talk about the plan

Ignore the emotional impact of change

Focus only on task accomplishment

Assign roles and responsibilities

Communicate the plan constantlyand consistently

Recognize the change process

Help people through the change

process

FailureSuccess

Deployment - Communicating


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No accountability

Disengagement from process

Unmanaged activity

Fragmented accomplishment of

objectives leads to sub-optimization

Force people to choose betweenimplementation and daily work; too many

teams

No alignment of strategies


Involve senior leaders

Define an infrastructure

Link goal groups

Phase integration of implementationactions with workload

Involve everyone within the

organization

FailureSuccess

Implementing - I


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Focus only on short term need for

resources

Ignore or avoid change

No measurement system

Hide mistakes/lay blame;

limited/no communication

Allocate resources for implementation

Manage the change process

Evaluate results

Share lessons learned; acknowledge

successes through open andfrequent communication

FailureSuccess

Implementing - II


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No accountability

Sub-optimization: focus only on

efficiencies

Use measures that provide no real

information on performance; use

too many measures

Use measurement to focus on the

bottom-line only


Use measurement to understand

the organization

Use measurement to provide a

consistent viewpoint from which to

gauge performance

Use measurement to provide an

integrated, focused view of the

future

FailureSuccess

Strategic Measurement - I


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Use measurement to control

Never review measures

Fail to use measurement to make

strategic, fact-based decisions; use

only for control

Use measurement to communicate

policy (new strategic direction)

Update the measurement system

Use measurement to provide

quality feedback to the strategic

management process

FailureSuccessStrategic Measurement - II


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No accountability

Poor timing and not recognizing external

forces

Rigid application of strategic planning

process; ignore lessons learned from

previous efforts

Ignore impact of new leaders

Don't use measurement information

Shortcut the process


Recognize when to update the plan

Modify strategic planning process to

accommodate the more mature organization

Incorporate new leaders into the strategic

planning process

Integrate measurement with strategic planning

Use experienced strategic planning facilitators

FailureSuccess

Evaluation


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Measurement and evaluation BSC


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Measurement and evaluation BSC


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Project management - processes


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Project management a process


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