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StratPlanning.pptStrategic Planning – An Overview
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(Ref: Waters, D.E., Understanding Strategic Thinking and Developing Strategic Thinkers)
Strategic Thinking
Framework
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WHAT IS
STRATEGIC PLANNING?
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Strategic planning is clarifying the overall purpose and desired results of an organization, and how to achieve those results.
Considerations:
- The life cycle or stage of development of the organization
- The culture of people in the organization
- Types of issues the organization is currently facing
- The rate of change in the external environment of the organization.
Typically, strategic planning is vision-based or goals-based, in which an organization identifies the results they want to achieve in the future. They develop a vision of what the organization and its customers or clients will look like at some point in the future, and then articulate what they have to do to achieve that vision. They work from the future to the present.
Carter McNamara, MBA, PhD – Authenticity Consulting, LLC; From the Free Management Library
Strategic Planning
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- “A disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it.”
- “Strategic planning comprises a set of concepts, procedures, and tools.”
- “Strategic planning is no substitute for leadership.”
Ref: Dr. John M. Bryson, “Strategic Planning for Public and Nonprofit Organizations” (2004)
Strategic Planning
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WHY
STRATEGIC PLANNING?
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Why Strategic Planning?
Competition
Increase value/capabilities
A requirement/mandate
Changing internal and or external environments
Ensure/facilitate continuity
Identify/mitigate risk
Prioritize resources
Build consensus
Improve internal, external relationships
Develop ownership
Build community support
Control your future
Survival
Other?
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Benefits of Strategic Planning
Provides orderly growth and competitive survival
Stimulates the organization to be more responsive to the needs of customers
Simulates the future
Forces the setting of goals and objectives
Increases efficiency
Applies a systems approach to reviewing projections and consequences
Creates a basis for performance measures and accountability
Facilitates personnel management because the process establishes relevant and practical performance benchmarks
Provides a decision making framework
Mitigates crisis management and crisis-driven decision making
Anticipates effects of change and influences of external forces
Improves employee morale because of clarity of focus, direction, communication, and inclusion
Fosters Strategic Communications
Others?
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ORGANIZATIONAL PHILOSOPHY
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Organizational Philosophy
Organizational Philosophy is a term that has its roots in the teachings and theories of an educational discipline known as Organizational Effectiveness.
It is comprised of 4 elements: Mission, Vision, Values, and Core Competencies.
Understanding one’s Organizational Philosophy guides the way the organization and its members go about conducting business and making decisions as well as helping to define its relationship with employees, customers, stakeholders, suppliers, intra and inter governmental partners, and the community as a whole.
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Mission
- Why does your organization exist?
- What is your organization attempting to accomplish?
Example: Google’s mission is to “organize the world’s information and make it universally accessible and useful.”
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Values
Organizational Values are the guiding principles and/or behaviors that embody your organization and how its people are expected to behave. They are a code of morals or ethics that define what a organization stands for, believes in, and considers acceptable in its quest to achieve its vision.
- Specify a code of acceptable beliefs and behaviors
- Are consistent with the organization's real operating practices
- Are linked to hiring, promotions, and performance appraisals
- Are clearly understood by all employees
- Are not subject to change as years pass or as strategy changes
Source: NGBPEC Strategic Management Course
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Vision
The desired future state of your organization. The vision describes where the organization is headed, what it intends to be, or how it wishes to be perceived in the future.
- Clear (simple words and wording)
- Concise (the fewer words the better)
- Catchy (snappy without using slang)
- Memorable (easy to recall; easy to explain)
- Built on the foundation of your mission and assessment of environment
- Focused on the future
Source: NGBPEC Strategic Management Course
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Core Competencies
Core Competencies refer to an organization’s areas of greatest expertise. They are those strategically important capabilities that are central to fulfilling your mission. They are challenging for competitors to imitate and provide a sustainable competitive advantage.
Source: Army Performance Improvement Criteria
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CUSTOMER FOCUS
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Customer Focus
Customer Focus is a broad term used to describe how an organization comprehends and seeks to engage with internal and external entities. Building strong relationships is of primary concern.
Key questions to ask, answer, and understand:
- Who are our Stakeholders?
- Who are our Customers?
- What are our Products?
- What are our Services?
- What are our Stakeholders’ expectations?
- What are our Customers’ expectations?
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Stakeholders
The term stakeholder refers to all groups that are or might be affected by an organization’s actions, successes, and failures.
Examples:
Employees
Partners
Suppliers
Citizens
Others?
Note: Some organizations substitute the term “Partner” for Stakeholder.
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DEFINING THE STRATEGIC ENVIRONMENT
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Environmental Scan
- Mission, vision, values
- Understanding of leadership priorities
- Leadership guidance
- Organizational structure
- Customers needs
- Technology
- Health and well being of employees
- Demographic trends
- Relationships with stakeholders
- Business and volunteer community
- Other regions/partners
- New mandates
- Past strategic plans
- Newly passed legislation
- Current literature
- Interviews with stakeholders
- Questionnaires/surveys
- Focus groups
- Public consultation/meetings
- Economic tendencies
- Others?
Consider economic, political, social, and technological trends that could impact the ability to accomplish your mission. Below are some components of an environmental scan that may be considered by strategic planners. The environmental scan is critical to your strategic planning success!
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Environmental Scan - SWOT
- INTERNAL ANALYSIS
- Strengths: What are we doing well? Why?
- Weaknesses: Where must we improve? Why are we not doing well?
-- How do we determine our strengths and weaknesses? Are there “blind spots” in our assessment? If so, how will we uncover hidden strengths and weaknesses?
- EXTERNAL ANALYSIS
- Opportunities: What opportunities exist outside of your organization? Should we exploit these opportunities? Why/Why not?
- Threats: What are the potential threats to achieving our vision, mission, goals, and objectives? Are we effectively addressing these threats? If so, how? If not, why not?
-- What criteria do we use to determine opportunities and threats? Are we biased in determining our criteria. What are our “blind spots”?
** A SWOT ANALYSIS WILL ENABLE AN ORGANIZATION TO FOCUS PLANNING EFFORTS ON THOSE STRATEGIC ‘CENTERS OF GRAVITY’ THAT WILL RESULT IN ACCOMPLISHMENT OF THE VISION, MISSION, GOALS, AND OBJECTIVES.
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SWOT Benefits
- Can be used very effectively with senior leadership planning teams that are taking a step back to examine their external and internal environments.
- Can lead the team to some necessary and substantive discussions that would not come up in the normal course of an organization struggling with short term issues.
- Helps the organization identify its priority issues which may evolve into strategic goals.
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SWOT Limitations
- Difficult to conduct a long term assessment in an unstable environment.
- Looks at a point in time and circumstances can change rapidly.
- Output is often either trivial or so broad to be relative meaningless
when making decisions.
- Sometimes too broad based, not granular enough – Doesn’t provide a specific answer for strategy – May yield few clear cut recommendations.
- Gives an impression of detached assessment of strengths and
weaknesses; may be unreliable, being bound up with aspirations, biases and hopes.
- Not quantitative – Subjective – Difficult to measure – Assumes all factors have equal weight.
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GOALS
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Goals
- The term “Goals” refers to a future condition that an organization intends to attain.
- Goals can be both short-term (6 – 18 months) or long-term (18 to 36 months).
- Goals are the “ends’ that guide the “ways” and “means”.
- Goals are directly related to the organization’s Strategic Situation and support the mission and vision.
“People often complain about the lack of time when the lack of direction is the real problem!”
Zig Ziglar
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Goal Guidelines
Goals are developed by the “leaders” of the organization.
Keep Goals big.
Don’t mix Goals and Objectives.
Goals are general, Objectives are more specific.
Goals support Mission, Vision, and should be derived from the analysis of your Strategic Environment.
Once developed, leaders assign the goal to an Office of Primary Responsibility.
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EXECUTING
THE STRATEGIC PLAN
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Execution Strategy
The Strategic Plan must be deployed to all levels in your organization.
The Strategic Plan effects everyone.
Everyone must be aware of and work toward the goals.
Lower levels of the organization now build their plans.
The Plan must be cascaded to the lowest levels.
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Executing the Plan
Methods to Execute your Strategic Plan:
Leaders Briefing
Posters
Laminated Organizational Philosophy cards
Postings on Websites
Use of Social Media
Leadership Buy-in and Emphasis is Critical:
Leader Strategic Plan talking points for visits
Have strategic level leaders provide presentations at Strategic Planning events.
Each strategic level leader develops his/her own Strategic Plan.
Walk the Talk
Follow-up / through:
Town halls
Performance Appraisals
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Executing the Plan – A Mid-Level Leadership Responsibility
Environmental Scanning – Assessing Opportunities and Threats
A strategic plan is a living document – update based on environmental changes
Who is responsible for environmental scanning (SWOT) in your organization?
Supporting Goals & Objectives – Fixing Responsibility
Who has primary responsibility?
Who is supporting?
Detailed Action Planning – Where the “Rubber Meets the Road”
Each objective should have an Action Plan
Specify tasks necessary to achieve the supported Objective
Measurements – Understanding Progress
Measure specific tasks to understand progress
Measures are a standard to evaluate and communicate performance
Leadership Emphasis – A Strategic Planning Imperative!
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OBJECTIVES
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Objectives
- They are statements of what must be done to achieve a goal.
- Typically, two or more objectives are required to reach the goal
- Developed by the group/organization the goal has been
assigned to.
- Typically, they have a one-year time frame.
- Objectives are Specific, Measurable, Achievable, Realistic, and
Timely (SMART).
- Part of the performance appraisal
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Objectives Example
GOAL 3: “By the end of 2016, the National Guard will add an emergency, fixed-wing aircraft capability to its force structure.”
Objective 3.1: By end of March 2016, identify aircraft, facilities, and support structure for future emergency response requirements.
Objective 3.2: By June 2016, identify States with similar force structure.
Objective 3.3: By September 2016, provide a briefing to the Congressional delegation on future structure needs.
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ACTION PLANS
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Action Plans
The term “Action Plans” refers to specific actions/steps that are necessary to achieve the objective. Action Plan development represents the critical link in strategic planning. Action Planning is where the rubber meets the road and ultimately determines success or failure.
Action Plans establish authority, responsibility, and accountability.
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Action Plan Guidelines
- Usually are developed and written by the individual responsible for
the specific action (not senior leadership)
- Include the supported Goal and Objective
- List: Who, What, When, Where, How, and Why
- Reviewed and approved by first line supervisor
- Include resources needed to accomplish the action
- Are not expected to be included in the published Strategic Plan
- Formats vary
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Action Plan Examples
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Other Examples
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Other Examples
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MEASURES AND TRACKING
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Measures And Tracking
The term “Measures and Tracking” refers to one of the most critical elements of the strategic planning process. We measure things in order to communicate (Track) and understand our progress against an expected results. Knowing where your organization is at all times is paramount to its success (or failure). Knowing where you are allows the leadership to make the necessary adjustment to the “ends, ways, and means” required to attain the mission.
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Measures And Tracking
- These are the conclusive pieces of the Strategic Plan.
- Methods and formats vary from very simple to very
complex.
- Designed to give leaders a current view of the progress
of the plan
- Promotes Fact-based decision making.
- The hardest aspect of Strategic Planning – requires real
work!
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Measures And Tracking
Item InProg Complete(%) Not started Comment
Goal #3 Y 30%
OBJ 3.1 N 100% Complete
AP 3.1.1 N 100% Complete
AP 3.1.2 N 100% Complete
OBJ 3.2 Y 70%
AP 3.2.1 Y 50%
AP 3.2.2 N 0% X TDY
AP 3.2.3 Y 90%
OBJ 3.3 N 0% X Priority
AP 3.3.1 N 0% X
AP 3.3.2 N 0% X
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Strategic Planning – An Overview
“IT IS NOT NECESSARY TO CHANGE …
SURVIVAL IS NOT MANDATORY!”
W. Edwards Deming
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