strategic planning
DESCRIPTION
Strategic planningTRANSCRIPT
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Strategic Planning
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Learning Objectives
– Identify the various steps in the strategic planning process
– Initiate and manage a strategic planning process– Determine appropriate tools for strategic planning– Understand strategies for evaluation– Initiate community support and involvement in the
process– Develop communication strategies to promote the
strategic planning process– Identify partners to be involved in strategic planning
process– Participate in the strategic planning process (if
applicable)
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What is Strategic Planning
• Used by community groups, government departments, organizations and businesses to develop blueprint for action and change
• the process should be community based, inclusive and participatory to allow for maximum stakeholder involvement and input.
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Benefits of Strategic Planning
• Defines mission, vision & values
• Establishes realistic goals, objectives & strategies
• Ensures effective use of resources
• Provides base to measure progress
• Develops consensus on future direction
• Builds strong teams• Solves major problems
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Types of Planning
• Types of planning – Strategic planning– Business planning– Project planning– Program planning– Municipal planning
• Planning as a profession– Professional “planners”– Planning functions in other professions
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Planning to Plan
• Planning to plan requires:
– Organizational readiness
• Recognition of need to plan
• Commitment to plan
– Organizational commitment
• Board and volunteer commitment
• Staff commitment
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Planning to Plan
– Organizational Capacity • Human resources
– Staff– Volunteers– Board committees– Special/Standing committees
• Financial resources– Identify budget– Determine resources
• Time– Allocate organizational time– Determine realistic time lines
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A Mission Statement-→Embodies the business philosophy of a company’s decision makers→Implies the image the company wishes to project for itself→Reflects the company’s self-concept→Indicates the company’s principal product or service areas→Includes the customer needs the company seeks to satisfy
MISSION STATEMENT
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MISSION AND VISION
BASIS MISSION VISION
Concerned with Present Future
Answers the question
What is our business?
Which way should we be going?
Focuses on Present strategic thrust
Chartering the strategic path
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• A mission statement should-– be a declaration of organizational purpose, attitude or outlook.– have a clear customer orientation.– be a declaration of social objectives or policy.
• It should answer questions pertaining to company’s -– Philosophy– Self-concept– Products or services– Markets– Technology– Concern for survival, growth and profitability– Customers– Concern for employees– Concern for public image
DEVELOPING THE MISSION STATEMENT
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MISSION STATEMENT : TATA IRON AND STEEL COMPANY
• To strengthen India’s industrial base through increased productivity;
• Effective utilization of manpower and material resources; and,
• Continued application of modern scientific managerial methods.
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MISSION STATEMENT: PEPSICO AND DELL COMPUTERS
• PEPSICO– To increase the value of
our shareholders’ investment.
• DELL COMPUTER– To be the most successful
computer company in the world at delivering the best customer experience in markets we serve.
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PROBLEMS WITH MISSION STATEMENT
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• The corporate philosophy envisages the basic ‘beliefs, values, aspirations and philosophical priorities of a company which the management or strategic decision makers are committed to.
• Corporate objectives are – Focused;
– Specific; and,
– Usually quantitative.
CORPORATE PHILOSOPHY
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Desired states or outcomes are objectives. Goals are objectives that are scheduled for attainment during planned period. – Ackoff
• Categories of corporate objectives:– Strategic
– Tactical
– Operational
CORPORATE OBJECTIVES AND GOALS
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AREAS OF OBJECTIVE SETTING: PETER DRUCKER
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• Objectives should be-– Clear and, not expressed in vague or general terms– Precise and exact and, should be measurable as far as possible– Consistent with organizational mission– Logical and realistic rather than idealistic– Reflecting of all the major areas of company performance and
responsibility– Based on ‘strength and weakness’ analysis of the company to
make them achievable– Yielding specific results when fulfilled– Reviewed periodically and should be reset in the context of
changed circumstances
OBJECTIVE SETTING
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• ‘We want to become the market leader within the next three years’
• ‘Our objective is to increase earning so that we can earn 15 per cent return on capital employed’
• ‘We aim to increase productivity by 10 per cent every year during the next three years’
GOOD OBJECTIVE SETTING- EXAMPLES
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• ‘We shall try to improve our position in the market during the next few years’
• ‘We shall always endeavour to increase productivity’
• ‘Our objective is to satisfy customers as far as possible’
BAD OBJECTIVE SETTING - EXAMPLES
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ORGANIZATIONAL LIFE CYCLE, OBJECTIVES AND STRATEGIC
FOCUS
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• If a particular objective of a company becomes extremely focused and directed towards a specific target, the company is showing a strategic intent.
• Strategic intent of a company is clear about the end or the target, but, it is flexible with regard to the means and leaves room for creativity and improvisation.
STRATEGIC INTENT
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Developing the Plan
– Mission• Core purpose of your organization• Presented in a clear, short statement that
focuses on attention in one clear direction by stating purpose of the group’s uniqueness.
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Developing the Plan
• Vision– What is your organization’s vision of
excellence– Has to be realistic and not something
impractical
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Developing the Plan
• Values– What are the principles, standards, and
actions considered worthwhile in the organization
– Includes how people treat each other, how groups conduct business and what is most important to the organization
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Developing the Plan
• Strategic Analysis– Environmental Scan
• gathering of information that concerns the organization’s environments
• analysis and interpretation of this information
• application of this analyzed information in decision making
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Developing the Plan
• Strategic Analysis– 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?
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Developing the Plan
• Strategic Analysis– SWOT Analysis
• 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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Strategic Planning Process
• Developing the Plan (continued)– Goals
• Identify long-term outcomes to provide focus for the planning process
– Strategies• Outline how you will achieve your goals
– Objectives• Identify specific, measurable results
produced while implementing strategies.
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Strategic Planning Process
• Goals and Objectives Should Be SMARTER–Specific–Measurable–Acceptable–Realistic–Timeframe–Extending–Rewarding
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Strategic Planning Process
• Developing the Plan (continued)– Implementation
• Tasks – assigned to various board and staff responsible for specific items
• Timelines - established for implementation of the plan for implementation
– Funding the plan• What is required to fund the goals in the
plan
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Strategic Planning Process
• Developing the Plan (continued)
– Communicating the plan• How will you communicate the plan to stakeholders?
– Monitoring and evaluation• Critical to plan’s success and credibility • Must be built into the plan• Critical for continuous improvement
– Continuous improvement• focuses on improving customer satisfaction through
continuous and incremental improvements to processes
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Strategic Planning ProcessExercise 6
• Prepare a SWOT analysis as part of the strategic planning process
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Strategic Planning Tools & Techniques
– Focus Groups
• Provides opportunity to address specific issues
• Provides opportunity for maximum participation
• Provides maximum information in short period of time
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Strategic Planning Tools & Techniques
• Website feedback– Online survey– Online discussion paper to generate comments
• Surveys– Online survey– Community survey
• Can be developed and administered locally• Can be conducted by firm specializing in surveys
• Research– Focus groups, surveys (primary)– Literature review (secondary)