strategic planning by dr shoaib

7/30/2019 Strategic Planning by Dr Shoaib

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AL QURAN


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Dr. Shoaib Ahmed

Ph.D (Pak) Post Doctorate (BCID, UK)


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To appraise participants

about

Understanding Strategic Planning

Need and Importance of Strategic Planning

Process of Strategic Planning Cycle

Key Steps towards Strategic Planning

Understanding S.W.O.T Analysis


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The term strategy refers to the broad approachor approaches to be taken in attaining your longterm objectives.

A sound strategy is one that will enable you toultimately gain a competitive advantage in themarketplace.


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A strategic plan documents your purpose for being,

who you are,

where you want to go and

how you intend to get there over the long term.It articulates the

key philosophies,

concepts,

ideas and directionswhich, when put into effect, profoundly shape thenature of your business.

For this reason, your strategic plan should be

carefully thought through.


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As an organization grows, it becomes

more important that all those involved

are clear about

What that organization is looking to

achieve? and

How it is planning to do it?


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How frequently a Strategic Plan should

be created?

and

How far out should the plan look?

There is no right answer to these

questions


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including

1. The degree of uncertainty within the environment in

which the organization is working,

2. The time it takes to develop new ideas and

3. The amount of resource that the organization is

prepared to put into the process.


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1. Setting Direction

Step 1 Define the StrategicChallenges

Step 2 Define the Objectives

2. Turning Direction into

Plans

Step 3 Formulate the Plan

Step 4 Set the Budget

3. ImplementationStep 5 Carry out the Plan

Step 6 Regular Review of the Plan

Step 7 Review Impact and Lesson Learnt


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oWithin the context of the overall

constitution goal and mission of the

organization,

oWhat are the specific challenges? and

oMeasurable objectives that the

organization wants to achieve?


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Most organizations have a set of statements that

describe the reasons for its existence and the way in

which it operates including

Mission Statement, Statement of Belief, Values,

Operating Principles and 10 year Strategic

Directions.

These documents provide the context for developing

a Strategic Plan, but none of them is, in itself, a plan.

The setting direction phase defines the someth ing.


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This is a list of no more than 10 issues that are vital to the

continuing success and development of the organization.

The list is best developed by the organization's leadership team.

The process of agreeing a list of no more than 10 challenges is,

in itself, a useful process for the leaders of the organization.

Techniques such as brainstorming can be used the first time

that the organization creates its list of strategic challenges.

In subsequent years, it is unlikely that the challenges will

change completely, so it may be more helpful to start from last

years challenges.


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For each of the challenges, the objective should state how achievement of the

challenge will be measured.

There can be more than one objective per challenge, but try not to have more

than three.

Each objective should be SMART

Specific, Measurable, Achievable yet Ambitious, Relevant and Timely.

Where objectives stretch over more than one planning cycle, ensure that there

is a measurable target at the end of the cycle.

It is also important at this stage to decide who (a person or a team) will be

responsible for achieving each objective.


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This phase is mainly about how?

What activities are necessary to enablethe organization to achieve its

objectives?

What, specifically, is the organization

planning to do to achieve its


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These are the methods and activities by which the objectiveswill be achieved, that is, who will do what by when?

There are many useful techniques e.g Gantt charts, Planningtables.

These will not be duplicated here.Important Consideration

Firstly, ensure that each activity plays an identifiable part inachieving one of the objectives, and also that if all activitiesare successfully completed, the objectives will be fully met.


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Secondly, there are two types of activities

projects and actions.

The fundamental difference between the two types is

that an action will generally be part of somebodys

job,

whereas a project is a one-off activity with a

beginning and an end. It is, therefore, an additional

activity, and will require additional resources, both


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The plans will have financial implications. The budgeting process is simply a way of planning what finances will beneeded for the organization to meet its objectives. Each area/department of the organization should prepare a budget based on

meeting the objectives that have been set. In all but the smallest organizations, this process will happen most effectivelyif it is co- ordinated centrally such that each department providesinformation in a similar format. The information can then be consolidated into an overall budget for the

whole organization. In practice, it may take several attempts before the consolidated budget isaffordable to the organization. It will save time, effort and emotion if departments are told as early on in theprocess as possible what their base budget is likely to be.


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o This is the most difficult phase for many

organizations. Yet without it, the Strategic

Planning Process is of limited value.

o Within the implementation phase, the organization

monitors and reviews how well it is doing in

comparison with the plan that was agreed.


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Once the plan has been agreed and approved, its really a case of Just DoIt!.

A plan that is well thought through with clear objectives, actions, timings andresponsibilities will provide the organization with a sound roadmap foraddressing its Strategic Challenges.

However, in the real world, the unexpected will always happen. External events may cause priorities to change and internal assumptions may

turn out not to be valid. That is why it is essential that Step 6 Review is carried out in parallel with

implementation


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Review is a key part of implementation. It should be included as part of the implementation plan. The person responsible for each activity should be carrying out continuous review,

and the leadership team should review at appropriate intervals at least once eachquarter if the planning cycle is annual.

The purpose of review is initially to establish progress, but it doesnt end there. Action should be taken as a result of review to either get the activity back on plan, oramend the plan to reflect the new circumstances. In deciding which course of action is appropriate, ensure that the impact of the activity

on the Strategic Challenges for the organization is well understood.


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The Strategic Planning Process is iterative (involving repetition) At the end of the cycle, the leadership team should review what

has been achieved against the plan?, and what can be learntfrom it?

This information is then fed forward into the Direction Settingphase of the next cycle.

And so the process begins again.


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For most of us, it would be inconceivable to embark

on a journey without having

clearly identified the purpose,

destination and

how we intend to get there.

This holds true for any and every business

organization. Formally developing a plan:


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Forces thinking about the future direction of the organization Provides a road map for all involved to follow Acts as a tool to coordinate everyones efforts Enables the organization to be proactive rather than reactive Provides a framework for evaluating opportunities and threats Provides a sense of a purpose and a future for the organization Empowers everyone involved with enthusiasm Provides a tool for measuring progress Helps convince others to invest their time and money in the company


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SWOT analysis is a Strategic Planning method used

to evaluate

the Strengths,

Weaknesses,

Opportunities, and

Threats

involved in a Project or in a Business venture.


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It involves specifying the objective of the business venture orproject and identifying the internal and external factors that arefavorable and unfavorable to achieve that objective.

A SWOT analysis must first start with defining a desired endstate or objective.

A SWOT analysis may be incorporated into the strategicplanning model. Strategic Planning has been the subject ofmuch research


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Strengths: characteristics of the business or team that give it

an advantage over others in the industry.

Weaknesses: are characteristics that place the firm at adisadvantage relative to others.

Opportunities: externalchances to make greater sales or

profits in the environment.

Threats: externalelements in the environment that could cause

trouble for the business


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strategic planning by dr shoaib

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