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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

COPY RIGHT © 2014 Institute of Interdisciplinary Business Research 469

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Perspective Model Designing and Strategic Planning for the Governmental

and Regulatory Agencies Applying the Futures Studies Approach

(AnIntegrated Model) Based on Comparative Methods of J M Bryson, Pearce and Robinson, Harvard ( swot),

Fred R. Davidand Hungr (tows), Kaplan and Norton’s (BSC) Models

Habib-allahFatahi Ardakani

Ph.D. student in Human Resource Management, Institute scholar Index of the University of

Isfahan

Abstract Strategic planning includes some features such asbeing crucial and vital,comprehensiveness and

macro view, creating a competitive environment, based on substantial changes, and looking

toward the future; therefore, not every scheming and action, although in the form of a plan,can

be regarded as a strategic one. A strategic planincludes defined certainprinciples, goals and

strategies, policies and approaches, and sequence andexecutive steps. There are various models

and patterns for its scheming and execution that are different from each otheraffected

bycultures, structures, roles, and assignments. The present paper aims to investigate the

principles, definitions, and concepts of models in order to present a model for governmental and

regulatory agencies in accordance withtheir structure and features.

Based on investigations done by Harvard ( swot), Fred R., and Hungr (tows) models, balanced

scorecard (BSC) has been used by most non-governmental companies and organizations.It was

found that the strategic planning is the best way to solve problems through a top-down planning

system; and the balanced scorecard (BSC) was considered as the best way to evaluate

andprogress assurancein line with goals through organizing and actionable reporting

components.

This study presents some factors such as: requirements of governmental agencies in the

formulation of the strategic plan, identifying the expected modelby examining different types of

models and patterns, identifying the main factors in the process ofthe formulation of the main

strategy and proper techniques with regard to the governmental and regulatory agencies’

position.

Key words: Strategy, Perspective, Strategicplanningmodels, Environmental assessment,

Governmental and regulatory agencies, Futurestudies

Introduction The term strategy derived from strutegoswas the title of the Greek armyleaders in the past

which means the wisely war command (Lotfian, 1384:1)and the skill of employing military

resources and today it appeared in a broader sense. Strategic planning is done by political and

military leaders. Based on the Webster 'sdictionary strategy is the science and art of employing

the political, economic, psychological, and military forces of a nation or group of nationsto

afford the maximum support toadopted policies in peace or war (Lotfian, 1384:3).Clausewitz

considers strategy as the fighting the enemy for the purpose of war (Lotfian, 1384:23).Liddell

Hart knows strategy as the artof distributing military means to fulfill the ends ofpolicy (Lotfian,

1384:2).

Chandler’s strategicplanning includes the underlying objectives of the organization and

applying patterns and operational procedures and allocate the required resources to achieve

them (Nejatbakhsh&Nikookar, 1388:44).Quinn considers strategy as an scheme or pattern

which mergethe objectives, policies, and operational chain of an organizationin the form of an

interconnected body (Faqihmirzaie, 1391).

Ansoffbelieves strategy as a comprehensiveunderstanding in the ways of great and increasing

responsibility of the publicmanagement wherebythe organization move in relation to the

environment and find its position in a way that leads to the organizational success

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(Faqihmirzaie, 1391). The term Tactics derived from taktikameans the technique in the use of

battlefield equipmentand then is distinguished by measures to achieve a specific goal of the

strategy.While strategy refers to the planning in order to identify goals, policies, and programs

at all levels, tactics related to the process of implementation and the use ofschemes and plans

(Faqihmirzaie, 1391:8).

Type of Strategy and its Level Macro strategy has various types (Faqihmirzaie, 1391:21):

The main strategies (13 types)

The sub strategies (14 types)

Functional strategies (3 types)

Macro strategies (13 types)

In terms of levels, it also exist in the form ofa national level (macro, theaters, operational,

tactical, and technical) and corporate level (official, competitive, and operational) and each of

them is considered for certain situations and aims.

Global Developments Impact on Strategy in the Last Three Decades: Development of strategic issueshas been passed its supplementary stags since500 BC and has

changed its area from military and war matters to the economic, commercial, social, and

regulatory planning; in this regard, investigations and theories of people such as Clausewitz and

Liddell Hart were helpful in its development and examination. Since 1960s the strategy found

its way to the management issues and in the last four decades of the 20th centurywent through

stages of growth and maturity, and also Ansoffand Chandler create effective actionsin linking

the strategyto the concept of plan asamanagementandevaluationsystem. Some effective

developments are as follows:

1. Changes in the political, economic, and social formulation

2. Developmentofnewtechnologies

3. Changesinthecomponentsofthepower

4. Developmentofinformationsystems

5. Influenceonstrategicissues

6. Changesintheadministrativestructureoftheorganizations

7. The emergence of new strategies

8. The emergence of fuzzy and virtualsystems

9. The idea of tomorrow's organizations

10.

Mintzberg's ten schools of strategy: (Kiani&Qafarian, 1387:185)

1. Design School: as a conceptual process of strategy formation done through matching

strengths and weaknesses (internal) and opportunities and threats (external). This process is

applicable to other developed approaches due to its transparency and simplicity.

2. Planning School:as a mental process: Formal, due to its systemization, has the ability to

separate to the executive goal setting steps, budgeting,in the form of operational plan.This

school is effective in the case of mechanistic organizations in a stable environment.

3. Positioning School:it's defined as an analytical process of strategyin the form of

structured analytical processesof the environment in order to choose a suitable situationfor the

rival supremacy. This method is based on actual data and analysts and consultants have a special

place .

4. Entrepreneurial School:as an idealistic process, changes strategies from contrive plans

and accurate positioning to the vague perspectives and wide visions; in this approach the leader

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of the organization has a close supervision on the implementation process. This school is useful

in the case of starting a new business.

5. CognitiveSchool:as a mental process, considers the innovative business changes as the

base of strategy making rather than to examine a mental image from the external and actual

reality.

6. Learning School:As a spontaneous process,it has been developed descriptively and

logically from theoriesofdiscretestepwisestrategy. Strategies have emerged spontaneously in the

school and will be completed during the implementation.

7. Power School:as a bargaining process,considers the power (inside and outside the

organization)as the base of strategy in terms of formation. This power is the base of bargaining

for guiding the collectivestrategies in line with the organization's interests.

8. Cultural School: as a social process, and unlike power school, it depends on

thesocialdesirabilityandintegration rather than individual desirability and component thinking.

This school is based on the collective strength of the society and today is considered in the

Japan and U.S.

9. Environmental School:as a reaction process against the environmental changes and

based on contingency theory, it can be a mechanism for the organization responding to

theenvironmental temporal changes; it considers as an integration of power and cognitive

schools.

10. Configuration School:as an transformation process, it considers the organizations as

agroupofcompetitors; meanwhile, it knows all schools reliable and integrate. It also finds each

school a proper one tointegratethetransformationprocess.

In this research, in order to present the intended configuration model, not only some aspects of

the mentioned schools were examined, but also the Planning, Design, and Configuration schools

investigated.

Dominant Perspectives on the Strategic Planning System: First perspective (perspective of Ansoff): he had a technical view toward the strategic

planning and believed that the planning has a constant, logical, rational, and official process

which planners should strive for organizational goals based on its techniques (Kiani&Qafarian,

1387:18).

Second perspective (perspective of Mintzberg): he did not believe incomplete problem

solving through programming techniques as a certain kind of managementattitudeand apart from

organization’s administrators; but, he claimed that the organization’s administrators and experts

would solve problems not due to an official and logical process but within a gradual

processcomes from their intuition and experience (Kiani&Qafarian, 1387:19).

Third perspective (perspective of Withington):as a realisticthinkingand a combination of

both previous views, he tried to make them close and solve their inequities and also tried to

clear their position by classification the views to the classical, evolutionary,process, and

systemicperspectives (Kiani&Qafarian, 1387:21).

Investigation of the Intended Models and Patterns: Usually, the method and pattern of the strategic designing is selected based on level,

assignment, duty, and organization and in this regard organizations, governmental or any other

type, have different performances.Records show thatthese models applied by various areas

inexpertlythat could not lead to theprogram goals and imposed costs. As it was revealed, 9 out

of 10 companieshave failed at their strategy implementation; some agencies was not effective in

implementing their strategic plans and the total percentage of achieving the goals and their

implementations of the country five-year plans was reported less than 50%; among the major

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reasons of this failure are not only the lack of coordination and resources, weakenforcement but

also is the lack of appropriate model.

Due to the investigation on the comparative models of large and small organizations, it was

revealed that from 28 models, with the overall goal of understanding the strengths, weaknesses,

opportunities, and threats,9 modelsare more important that their specifications include:

1. Tyler objective model: it was codified in 1975 and is the process for long term

codification of goals, outlines, activities, and organizational assignments.

2. Harvard policy model (swot):it was presented by Anderson in 1980 and applied the

opportunitiesdesigning and evaluating method, environmental threats, strengths, and internal

weaknesses.

3. Andrews corporate strategy model:it was proposed in 1980 and follows a decision-

making model based on the codification of the main aims, minor aims, and the intentions of a

firm.

4. Porter's competitive model: according to this model, the competitive strategy is

designed for a greater share of the market and it is considered as one of the most famous and

most efficient models.

5. Wright model: it was suggested in 1992; this model has been totally affected

byinformation system at designing stage (participation, activity, duty) and implementation

(structure, leadership, organizational culture).

6. Mintzberg's model:proposed in 1990 which put emphasis on the strengths and

opportunities assessment affected by management's beliefs and social values.

7. Swot model:it tries to analyze the environmental factors (internal - external)

quantitatively based on the subjectivity; it also considers as the supplementation of the issues

raised in the Harvard policy model, GE model, and BCG model.

8. Bryson model:it has been developed in order to analyze the previous models and

examines their terms of applicationin the public and nongovernmental sectors. Based on this

model the result of each stage (10 schools) for the next stage supplementation or revision.

9. CMS model:know it has developed to the HCMSand required to pass from 25

operational stages which used to design the organizations’ programs.

Chafy’sIntegrated Strategy Model:

1. Adaptive Strategies Model: based on Hofer definition there is a logical relationship

between opportunities and risks of the environmentthat exists for the benefit of the organization

and comes from the dual effects of organization and environment.

2. Interpreting Strategy Model: due to the complex relationship between the environment

and organizationand for a better understandingofthe situations, this model is based on social

contract (agreement between individuals) rather than an organism view of the organization.

3. Linear Strategy: according to the Chandler definition, this model put emphasis on the

decision making and planning in order to achieve the organization’s goals; This model is for

organizations with few outside influences andthe internal consistency and construct.

Triple Combination Models

1. Philips combined methods:first, the ideas and long term goals are reported; then, its

performance in the case of internal and external factors is evaluated and if it is successful, it will

continue, otherwise it will be modified. The model pays attention to the financial resources,

force, customer, innovation, and efficiency.

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2. Balanced scorecard (BSC) method:it is based on performance measurement

methodsand is one of the best ways of strategic planning throughperformance measurement by

four key aspects: financial, the customers, internal processes, and development and learning.

This method identified goals for each aspect; and in order to achieve the standards, some actions

and plans are selected and would measure after implementation.

3. Performance improvement plan (PIP):this method is for the effectiveness of long-

term plansin stable environment. Among its features are making common sense, and identifying

and providing solutions by liableswhich involve the senior managersin analyzing and solving

problems. So, first of all the intended goal should be identified then, the main problems

identified through swotand at last, the appropriate solution is proposed.

Common Points of Various Models:

1. Three stages: in all models we can find: identifying mission, goals, and strategy,

environmental analysis, and implementation and evaluation process.

2. Some cases such as structures, principles, values, and goals exist in all plans either

overt or covert.

3. It includes the differences among models due to the sequence of steps, number of stages,

and transposition of the designing and implementation stages.

4. All models have almost the same structure as either simple or complex.

5. In the case of small organizations, due to the lack of resources and low forces, some

stages such as determining the values of senior managers is addedwith no need to the long

process.

Integrated Model Selection: Using survey resultsand finding about the implementation of the strategy plans, in the case of

place and allocations of the governmental institutions, this model includes the things that lead to

the state authority and its interests take into account all the segments of society

(CivilServiceManagementCode, Article 8); and also, considering the area of responsibility and

functionality of the organizations (policy making, planning, control), an integrated model

proposed in the context of such models: SWOT-BSC withvalue, structural, and administrative

features.

Common and General Stages in the Strategic Planning Pattern as an Integrated Model:

1. Establishing a Strategiccommittee

2. Considering the situation anddetermining the position of the organization

3. Identifying the bases, principals, and values

4. Investigating the assignments and macro goals

5. Evaluation factors (internal and external)

6. Identifying the organization’s strategy (macro, business, task)

7. Identifying the policies (implementation area)

8. Presentation of plans and operational programs

9. Budget and resource allocation

10. Set the standards and monitoring indicators

11. Feedback monitoring and evaluating

12. Obtaining results (quantitative and qualitative)

Varieties of Strategic and Macro Factors:

Perspective:it defined as the appropriate future image and an achievable patternbased on

theoretical models, principles, assignment, and macro goals which is beyond thenational

document of Strategicplan.

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Strategic document: as the basis and guide to decision making at the national, regional, and

provinciallevels, it includes both parts of strategy (policies, strategies, facilities, requires) and

operation (plans, actions).

Long term planning:it is according to the rational approach (goals and objectives) based on

strategy (plans and actions) and has less affected by environment and changes.

Strategic planning:it is designed and focused on changes based on the influences of the

external environment (opportunities and threats) and internal environment (weaknesses and

strengths).

Comprehensive planning:it is formedas an ideal and with orientation in some major roles,

derived from the law and controls, and is more comprehensive and inclusive.

Relationship between thinking and strategic planning: Strategic thinking isthe main basis in designing andimplementationofstrategicplans; also, as an

art andthe science of codification, implementation, and assessing decision making it

enablesorganizationstoachieve their aims. Based on Stucky’s view strategic thinking is action

planning in agreement with new learning and Mintzberg also considered itas a mental and

creative process in order to create a perspective (Soltani, 1386:23).Hamel and Prahalad believe

that the strategic architecture and skill are the basis of creative strategies. According to the

Mintzberg, planning and strategic thinking are two separate mental processes that the former is

in connection with the analysis, creation, and formalization of systems and procedures, and the

latter includes combination or integration, strengthening intuition, and creative and innovative

thinking at all levels of the organization.

The two main techniques for designing comprehensive and macro plans:

a. Strategic planning:

Strategic planning is based on a futurism in line with a long term planning however, due to the

impossibility of predicting the future, it considers the probable future. Researchers try to predict

for short times but for long times the idea of planning is common that is based on the idea of

hypothesis and also imagination.

b.Scenario planning: Scenario is a concept of prediction (not forecasting); so, in order to form the strategies and

policies of the organization in a new and dynamic environment, the imposed future and probable

events is investigated, through a logical narration. Scenario is a method of organizing the

thoughts and decision making of future and unlike the prediction (certainty), scenario

(uncertainty) is the implication of how something occurs rather than follows the events. Now it

is believed that Foresight (futures studies) approach is the best way rather than methods based

on the past.

Variety of qualitative and quantitative methods, includes:Quantitative methods (simulation,

non-linear models, analysis, regression) and qualitative methods (brainstorming, Delphi,

scenario)

The interaction and fourfold relationship between strategic issues:

1. Strategic management:as the starting point of the strategic thinking in strengthening the

intuition and playing the major rolewith the synergy resources, it has five dimensions: the

combination of material and spiritual potential, think and plan for the future, a philosophical

attitude, creativity and innovation, and the sense of supremacyare indicators of each section

(total 37 dimensions). The strategic management is in connection with the strategic planning in

organization’s long term and macro instructions due to a continuous and cyclic process with the

aim of maintaining the general relationship between the organization and the surrounded

environment dynamically (Soltani, 1386:93).

Based onDavid Hunger and Wheelenperspectives, the strategic management has an important

role in ensuring the future actions; as the investigations revealed a better organizational

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performance and qualityfor the companies that deals with strategic management and planning

(Hunger &Wheelen, 1389:17).

5 major steps of the strategic management in codification, implementation, and evaluation

strategy:

1. Vision document and mission statement

2. Qualitative and quantitative targeting

3. Macro and micro strategic codification

4. Implementing strategies in the form of plan

5. Performance evaluation and control

2.Strategic Thinking: as a strategic architecture skill, it is considereda strong support for the

implementation and effectiveness of programs; it is the mental process of the organization’s

management and incudes some dimensions such as: holism, futurism, understanding

introspection and intuition, flexibility, deep thinking, logic and generating ideas, inspiration,

creating ideas, social intelligence, and intellectual analysis. Strategic thinking tries to combine

and integrate the intuition and creativity to form a perspective.

Jane Liedtka(Hunger &Wheelen, 1389:74), a well-known strategist affected by Mintzberg

thoughts, considers the principles of strategic thinking based on five major assumptions (1998):

1. System perspective: represent a system with holistic view

2. Intent focus: includes focus on the goal and target

3. Thinking in time: means thinking at the right time

4. Hypothesis ptiven: it is based on hypothesis

5. Intelligent opportunism: it is clever and opportunistic

3.Strategic planning:as a way of decision making for the future of a changing world, it follows

a non-liner and dynamic process with some dimensions such as: holistic view, a philosophical

outlook, simplicity, considering the environmental changes , creativity and innovation,

empowerment, effective use of resources, flexibility, realistic, goal setting, perspective.

In order to achieve the goals, this planning tries to analyze a set of implementing stagesso, it has

a logical and deductive thinking.

4.Strategic control:based on some researchers opinions, such as Toffler and Drake, this

strategy, as a part of effectiveness management process, is a mechanism for documenting non-

linear - irregular changes during the discontinuity (Nejat-baksh&Nickoo-kar, 1388:9); strategic

control, monitors unavoidable external environmental changes and also connect the actual

performance of the organization to the planning. It has different types:

3 types of controls from the strategists’ points of view(Nejat-baksh&Nickoo-kar, 1388:96):

1. Operationalcontrol: effective performance of activities

2. Managerial control: ensure the correct designing of program strategies

3. Strategic control:for the continuity of actions in line with organizational objectives

through the evaluation and reviewing the performance process

Levels and hierarchy of strategy codification:

1. Corporate level strategy:Senior management leads activities as the pattern and

perspective of the organization. at this level, the aim of strategy codification is to guide the

entire organization and optimum allocation of resources. Among the levels of strategies are:

Directional, Portfolio, and Parenting strategies.

2. Segment / unit level strategy: It relates to the large organizations and performed in

order to improve the situation and known as business strategies. Each part has its own mission

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and strategy in line with the mission and strategy of the large organization. Business strategy

includes: Development, Competitive, and Coalitionstrategies.

3. Functionallevelstrategy:Based on higher-level goals and strategies, a function should

be determined for every units with the aim of maximizing productivity; also, the implementation

of the strategy is the main responsibility of managers.

Among the functional strategy are: Financial, Research & Development, Production &

Operations, Human Resources Management, and Information Systems strategies.

Strategic Planning Characteristics: it deals with the main and important matters; while

identifying the major issues, it resolves the problems at macro level and improve the

performances. It has some features such as:

1.Futurist and forethoughtful 2. Flexibility 3. Accept changes 4. To be comprehensive 5.

Formation at high-levels 6. Presentation a framework for decision making 7. A feedback of

values 8. Focus on main issues 9. Changinginternalandexternalconditions 10. New

scienceand technology development 11. Expansion of information and communications

systems 12. Create new needs 13. Considering the functional issues 14. Balance between

demands and capabilities

Strategic Plan Prerequisites:

1. The liability of senior managers and leaders 2. Hierarchy and division of labor 3.

Planning and coordination 4. Scheduled execution

Advantages of Strategic Plan:

1. Having strategic thinking 2. Determining the future way 3. Right decision making

4. Development and quality 5. Productivity and improved performance 6. Making team

work 7. quick and positive changes

Applications of Strategic Plan:

1. Helping organizations to develop effective strategies 2. Priority identification and

correct leading 3. Prediction and looking toward the future 4. Considering the aspects of

decision making 5. Performance improvement and resolve major issues 6. Facing the changes

with the help of coherence and unity of the group

Characteristics of a Good Strategy:

A good strategy should be based on the organization’s principals (inner eagerness), considered

as center for all activities (integration), and has limited number of goals; the other characteristics

are as follow:

1. Being coordinate and reactive 2. Consistent with the objectives 3.Being accessible and

possible 4. being challenged 5. Being competitive

Key Concepts and Issues in Strategic Planning: In association with perspective and the strategic planning process, with the goal of productivity

improvement and achieving the intendant aims and considering the organization’s function and

structure, it can be find various stages and sequences which is known as excellence pyramid.

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Generally, the codification and implementation of the strategic plan includes multiple factors,

some common and some not important, which are as follows:

1.bases 2.principals 3.values 4. perspective 5. mission 6. assignment 7. goal 8. basic goal 9.

Strategy 10. policies11. approaches12. ideal 13. motto 14. goals (quantitative and qualitative)

15. environmental analysis (internal and external) 16. strengths 17. weaknesses 18.

opportunities 19. threats 20. designs 21. plans 22. projects 23. control and assessment 24.

quantitative and qualitative results 25. mechanisms 26. guidelines 27. rules and regulations

28. methods and procedures 29. resources and budget

The main and functional concepts and components in proposed integrated model are:

1. core and values 2. vision 3. mission4.long range objectives 5. short range objectives

(qualitative and quantitative) 6. strengths and weaknesses, opportunities and threats (swot

analysis) 7. strategy 8. policies 9. tactics 10. laws and regulations 11. methods and

procedures 12. functional strategies (plans) 13.resources and budget 14. performance

assessment criteria

The triple process of strategy codification, strategy implementation, and strategy assessment,

originated from Fred R. David strategic management model, which exist generally in all

strategic planning patterns; so, we also consider it as a framework. The main stages of integrated

model are:

implementation codification

Assessment

Management

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1. Core and principals of the plan:

Cores as a fixed set of termsand binding rules, derived from the value system of the societyand

the organizational norms and practices and achievements, affect on all stages of the plan and

also distinguish it from other plans and designs. These principals are:

1. value system 2. experiencesand achievements 3. the country vision document and five-

year plans 4. national development documents 5.upstream rules and regulations 6. higher

authorities points of view

2.Values:as the decision making principles, it present some guidelines in the forms of offers and

prohibitions and also leads to the formation of missions, ideals, goals, and visions. Values are

the instructor of the behaviors; they are unchangeable and nonconvertible since they originate

from paradigms, worldviews, and professional ethics. Values are the bases of an organization’s

cultures that distinguish it from other organizations. Generally, they are as follows:

1. excellency 2. ethics 3. empathy andparticipation 4.respect for people 5. rule governed

6. service 7. knowledge-based 8. skills and abilities 9. work discipline 10. transparency

11.accountability 12. organizational commitment 13. effectiveness 14. being updated 15.

quality-oriented 16. customer focused 17. secrecy 18. responsibility 19. considering human

dignity 20. principle of fairness 21. fair achievement 22. trustee 23. cultural preservation

3.Vision:as the future design at the present time: briefly and clearly shows an ideal future and

represents the macro goals. The vision talk about four types of futures:Desirable, Probable,

Unbelievable, Possible that each of them show the future. Future vision focuses on two

elements:

1. what we can be

2. future needs that we can be responsive

Four types of visions are: World vision, National vision, Regional vision, Local vision. After

vision designing, strategic plan should be prepared in order to achieve this vision.

Vision Characteristics:

1. holistic 2. realistic 3. flexibility 4. finding opportunities 5. ambitious 6. unique 7. make a

dedication 8. brevity and useful 9. asking for participation 10. create job satisfaction 11.

suggest a criteria 12. encouragement of learning 13. Determine the future way

4. Mission:as the corporate philosophy, it shows attitudes, organizational values and certain

document on the activities, and types of services. According to Drucker, a strategy starts with

such question: What is our core business?So the answer means the mission. By determining

the corporate philosophy, the mission revealed us who we are, why we are, and where we move

to.

Mission Statement:is a document which distinguishes the aim of an organization from others

and can act as a framework for assessing the organization’s activities. Its characteristics

includes:

1. brevity and useful 2. inspirative 3. having amity 4. creating motivation and unity 5. Well

documented and accessible 6. clear and comprehensible 7. consider values 8. being ideal 9.

sufficiently apparent

Component of the Mission:

1. customers 2. products or services 3. the survival factor (profitability) 4. its philosophy 5.

distinctivefeatures 6. People’s attitudes 7. staffs

- Assignment:considering the current activities (what we are at the present time, current needs

which we react to them), it indicates the range of activities and is the same as mission and shows

its role in the society. Assignment identification makes the organization as an ideal place and

provides the context for growth and progress; so, it should be a little measurable, understandable

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and can be evaluated. Assignment is the philosophy of an organization but goal is the point that

the organization move toward it. The main questions in this part are: Who, What, Why, Where,

and How which focused on the current activities and situation of the organization.

Critical Factors in Achieving the Organization's Assignment:

1. rate 2. Quality 3. information system 4. classification of services

5.Ideal:in line with both fantasy and reality, expresses the inner wishes and demands for the

futureregardless of restrictions; it originates from values, assignments, and beneficiaries and

usually expressed in short and attractive terms.

Some Characteristics of Ideal:

1. attractive 2. idealistic 3. generating commitment 4. value 5. realistic 6. accessible 7. being the

origin of power 8. intellectual and imaginative 9. crucial 10. modern 11. permanent 12. brief

and clear 13. deep and excellence 14. an special imagination

6.Goals: as the purpose, it is results and desires that the organization tries to achieve them in

long term (3-5 years) then, is very important. The goals, at the desired status, have some

features such as: provability, accessible, flexible, compatible with the mission, and focused on

the desired position which change it to a possible factor.Goals should be specific, relevant and

flexible and also in such a way that it is easy to understand, makeliability and property

independent, be realistic and achievable. Also the goal should be acceptable at the functional

level, improves achieving the object, and be and quantitative, measurable, understandable and

accessible; it should be express in short or broad sentences and has direct relationship with the

mission.

Five Dimensions Characteristics of Goals (smart):

1. Specific

2. Measurable

3. Attainable

4. Reliable

5. Time limit

Macro Objectives (Fundamental): It originates from documents, legal resources, and general policies and is expressed in response

to the nature and what.The fundamental goal includes all components, inner and persistent

characteristics and ensures the survival of the organization.

Micro Objectives (Operationally): In terms of importance and time range, it includes a lower level (1-2 years) and follows the

same way operationally.

Long term goals:is the set of each two or three medium-term goals.

Short term goals:usually achievable within one year

Medium term goals:includes three to five one year short term goals

7.Strategy (Macro-Operational):strategy originates from some rules which are the best way to

achieve the goals and plans. It is an interconnected collection which leads to achieving ideals

and goals considering the organization’s resources and equipment.

Designing and implementation of the strategy are affected by internal and external

environmental factors; strategic managers (those who are able to identify, analyze and set goals)

and leaders (those who has not only strategic vision but also the ability of its

implementation)have also important roles during this process.

Strategy is a mapping and designing for an easy way in order to achieve the organization’s goals

and mission. It is affected by rules and policies and the internal and external environment

assessing results play a major rule in this process. Then, it is chain of macro plan and main

pattern which leads to the goals and operational policies as an interconnected whole. Strategy is

a way in which we can achieve desired situation while avoidingundesired one.

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Key concepts of strategy issue are:create development, organizing, progress and promotion,

actions, coordination and integration, modernization, delegation, increasing productivity,

transformation and opportunism, institutionalization, efforts and diversification

Strategy Measures:as the evaluation indicators, they are involved in all stages of planning and

implementation; the indicators are: be clear and simple, quantitative ability and measurable, new

questions to uncover the truth, a key and apprehensible prediction, innovative and new ideas. In

order to preparea context forthe emergence of strategy, indicators, as the scale of

measurement,should be integrated, reliable, accurate, well timed, and confidential and secure.

Experts have expressed the strategy measure in 6 P: 1. Plan 2. Ploy 3. Pattern 4. Position 5.

Perspective 6.Promotion

Methods for Determining the Strategic Issues: 1.Direct Method: after determining the mission,organization’s commitments, and analysis of

environmental issues, it deals with examining the strategic issues directly.

2.Method Based on Goal:by defining the goals, it designs the strategies in order to achieve

them in organizations with usualhierarchical.

3. Scenario Method:by identifying an ideal vision of the future, it suggests a programmed and

practical way in order to achieve the desired situation.

Key Concepts and Issues in Designing Variety of Strategies:

1. where are we now? (what is the problem?)

2. where we will be in future If we do not change? (what should we do?)

3. How to do the works better? (what are the possible risks in the case of ignoring?)

8.Identifying the Current Situation: In order to design the main processes and also to set goals and strategies, identification and

analysis of the present situation is essential; so, it is done through considering the strengths and

weaknesses (internal environment)and opportunities and threats (external environment),and also

with theoretical and field studies of effective factors,operatingconditions, and statistical data and

information. This stage is centered around two main issues.

- Internal Conditions IFE: 1.1. Investigating the performance procedure based on core activities

1.2.Investigating the organization resources including management, human resources,

equipment, funds

1.3. Investigating the organizational factors, corporation, financial systems, methods and

procedures, training and research

- Environmental Conditions EFE 2.1. Investigating the environmental conditions affected by organization's internal issues

2.2. Investigating the environmental conditions affected by organization's external issues

At this stage, the recent situation outlined in order to find a vision of it; hence, using this outline,

it can be set up some hypothesis in order to identify main strategies of the organization and

other factors such as macro goals and policies so, the future would be predictable.

Assessment of Environmental Conditions (Internal, External)

opportunities

O

strengthens

S

aggressive

growth

strategy

Strategy

with shift

orientation weaknesses

W diversity

strategy

defensive

strategy

threats

T

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Internal Factors (weaknesses and strengthens):includes: human resources, financial

resources, management factors, facilities and equipment, information systems, research and

development, production and operations, products quality, strategies and plans, marketing

External Factors (opportunities andthreats): includes: policies, the new rules, changing

behaviors, lack of resources, and also the issues in the areas of politic, economic, society,

technology, and competition

Strengthens:these are inner potentials and abilities which considering their performance is a

privilege and leads to empowerment. Such as skilled employees, strong financial support,

dynamic structure , facilities and equipment

Weaknesses:these are inadequacy that their existence or ignoring them is a negative point and

results in the inability. Such as insufficient research and development, technical weaknesses,

lack of human and financial resources

Opportunities:these are hidden potential and proper external conditions in order to achieve

objectiveswhich identifying and applying them act as an acceleration motion. Such as weak

competitors and new markets

Threats: these are problematic and inappropriate external circumstances in the way of gals

which ignoring them prevents growth and development.

Identify External Environment Affecting Factors:

1. Domestic level:structural factors, staffs, culture, managers, resources

2. Specialized level:executive organizations, suppliers, governmental agencies, stakeholders

3. External level:factors such as economic, cultural and social, politicaland international, rules,

and technologic circumstances

Identify Stakeholders: All natural and legal persons whohave a stake in the organization, and their actions and

demands are somehow in connection with their interests (either influential orimpressible), are

considered as the stakeholders and should also take into consideration in plans, demands, and

interactions. These factors are:

1. shareholders (owners) 2. customers (client) 3. managers and staffs 4. government 5.unions 6.

competitors 7. suppliers of raw materials 8. society

in business planning the third question arises: how to win the competitors?

Swot analysis and assessment of the results, at the stage of evaluating and adjustment the table’s

results, using the Qspm matrixvariety of strategies are identified and evaluated.

SWOT matrix

Assessing the internal factors

IFE Assessing the external factors

EFE

Strengths

S Weaknesses

W

Opportunities O SO Strategies WO strategies

Threats T ST strategies WT strategies

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Four Major Strategies According to the Results of the Environmental Assessment and

Analysis (swot):

Issues that arise from the combination of strengths and opportunities (SO), growth and

development strategy (aggressive). The organization tries to take advantage of external

opportunities by using the key strengths.

Issues that arise from the combination of strengths and threats (ST), diversification strategy

(competitive). The organization tries to decrease or remove the effects of the environmental

threats by using its strengths.

Issues that arise from the combination of weaknesses and opportunities (WO), integration

strategy (conservative). The organization tries to improve the internal weaknesses byusingthe

current opportunities and external environment.

Issues that arises from the combination of weaknesses and threats (WT),defensive strategies

(stable). At this stage, due to the risks exposure, the organization tries to reduce some actions

(reduction or transfer) or change its way (amalgamation and bankruptcy)in order to survive.

9.Policy:at a lower stage than strategy, it acts as general guidelines, offers, prohibitions,

boundaries, ranges and joins the codification and implementation of strategies together. Some

knows them the same as those strategies that are implemented at the time of identification.

Policies determine the way to achieve goaland strategy determines how to achieve this goal; so,

there are dominated strategies in order to achieve goals. In other words, considering special

conditions and respect the rights are requirements for achieving the goalswhich is called policy.

After the targeting stage,policy, as decision makingframeworks, is the important one which

leads to connection and continuity of actions in the form of decision-makers, and originates

from society values, ideology, social structure and etc. among its characteristics are: being long

term, binding, with no beginning and no end.

The key concepts in policy are: promotion and development, enhancement, the encouragement

and support, recognition and measurement, policy & planning, improve the effectiveness,

integration management, preparing the requirements &collaboration, maintain engagement,

integration, usage & take advantages

10.Tactic:it is considered as tools, methods, and techniquesin order to get closer to the

strategy’s goals and today is integrated with technique and technology in the form of software

and hardware. Tactic is in lower level than policy and applied at special stages of strategy

implementation.Technique is the method and skill to perform a task and generally considered as

methods of tools usage.

11.Approach:approaches are also considered in strategic and annual plans which indicate the

attitudes and directions of the program; it comes from analysis and strategic factors and leads us

toward the purpose as a new way. Strategic and annual plans usually have approaches originate

from mission and goals and as well as policies, show direction.

12. Regulations, Methods, Procedures:define as rules and guidelines governing the plan’s

actions which originate from laws, and in line with organizational methods and procedures, exist

at all stages of plan’s codification and implementation and also affect on plan’s designing,

implementation, and assessment procedures. As well as policies, it sets in a lower level but

affects on all factors.

13. Codification and Implementation of Operational Strategies (designs, plans, projects):as

ideas and quantitative and qualitative actions, with certain time performance and achievement,

has been identified by interval. Plans indicate the stages duration of each strategy and considers

as innovative actions to achieve the appropriate strategy. Designs are the process of changing

the policies to plans which define in terms of plan after organizing, cost classification, time, and

approval.

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Implementation of all main and sub processes of a strategy, in the form of design and plan,

required separate actions which defined as project during the operating process; then, projects

depend onthe numbers of operational designs and plans which implement once in a given time,

for a specific result, service, cost, and quality.

14. Resources and Budget Allocation:funding, force, and control are known as main factors of

efficiency; so, the resource issue is among the main activities which should be identified based

on actual requirements, goals and operational strategies. There are at least four major resources

include: financial, human, technical and support resources which allocating their required

budget is among the strategic goals. They are important since create official position to

implement policies, strategies, plans and programs.

15.Results Control and Assessment:although this process sets at the final stage, has been exist

Widely and consistently in all phases and levels of planning and action and somehow is a

continuation of the results in terms of efficiency. In this case, there are various qualitative and

quantitative methods and patterns in order to ensure the proper implementation of the program;

among these methods, strategic control processes is the most important one which ensure this

effectiveness. Some effectiveness criteria are:

productivity and efficiency, profit, quality, growth and development, morale satisfactionand

motivation, success and progress, enhancement of skills, stability, cooperation

The Nature and Structure of Strategic Issues: According to the investigations and management scientists’ opinions, the nature of all factors

considering in strategic issues generally consists of three main topics (Varzeshkar, 1390):

a. Goal: considered as the inflection point of all activities of the organization which includes:

assignment, mission, vision, needs and benefits, the final point, achievements, expectations,

demands,ideals, results and motivation

b. Way:it is the way to achieve the goal which includes: strategy, policy, design, plan,

procedures, budget, devise, decision,function, action, method, law, rules, tactics, technique

c. Resources:the required rules in order to achieve the goals which includes: financial

resources, physical,human, information, technology, facilities, time, rule, advantage, strengths,

threat, weaknesses, opportunities, the basics, beliefs, values, features, equipment

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