PERFORMANCE

MANAGEMENT
PLANNING AND
STRATEGIC
PLANNING

JESSICA CARIAGA- MANAGUELOD,MPA

I. DEFINITION AND PURPOSE OF STRATEGIC
PLANNING
 is a process that involves describing
the organization’s destination,
assessing barriers that stand in the
way of that destination, and
selecting approaches for moving
forward. The main goal of strategic
planning is to allocate resources in a
way that provides organizations with
a competitive advantage. Overall,
strategic plan serves as a blueprint
that defines how the organization will
allocate its resources in pursuit of its
goals.
Purposes of Strategic Planning

• Strategic planning allows organizations to define their

identity. In other words, it provides organizations with a
clear sense of who they are and what their purpose is.
• It helps organizations prepare for future because it
clarifies the desired destination.
• Strategic planning allows organizations to analyze their
environment, and doing so enhances their ability to
adapt to environmental changes and even anticipate
future changes.
Purposes of Strategic Planning
• Provides organizations with focus and allows them to
allocate resources to what matters most.
• It can produce a culture of cooperation within the
organization given that a common set of goals is created.
• Can be a good eye- opener because it generates new
options and opportunities to be considered.
• Strategic planning can be a powerful tool to guide
employee’s daily activities because it identifies the
behaviors and results that really matter.
II. PROCESS OF LINKING PERFORMANCE TO THE
STRATEGIC PLAN

Link Among Organization and Unit Strategic

Plans, Job Description, and Individual and
Team Performance
(1)the conduct of an environment analysis;
(2)the creation of the organization mission;
(3)the creation of an organizational vision;
(4)setting goals;
(5)creation of strategies that will allow the organization to
fulfill its mission and vision and achieve its goals.
Environmental Analysis

External Factors
Economic
Political/ Legal
Social
Technological
Competitors
Customers
Suppliers
Environmental Analysis

Internal Factors
Economic
Political/ Legal
Social
Technological
Competitors
Customers
Suppliers
 Pairing of external opportunities and threats with internal
strengths and weaknesses leads to the following situations
(ranked from most to least competitive).

Opportunity + Strength= Leverage

Opportunity + Weaknesses= Constraint
Threat + Strength= Vulnerability
Threat + Weakness= Problem
 The mission statement summarizes the organization’s most
important reason for its existence. Mission statements provide
answers to the following questions:
▪ Why does the organization exist?
▪ What is the scope of the organization’s activities?
▪ Who are the customers served?
▪ What are the products or service offered?
An organization’s vision is a statement of future aspirations. In other
words, the vision statement includes a description of what the
organization would like to become in the future (about 10 years in
the future).
Characteristics of Good Vision Management

Brief
Verifiable
Bound by a timeline
Current
Focused
Understandable
Inspiring
Goals provide more specific information regarding
how the mission will be implemented.
It can also be a source of motivation and provide
employees with a more tangible target for which to
strive.
 STRATEGIES

The Human Resource (HR) function plays a critical

role in creating and implementing the strategies that
will allow the organization to realize its mission and
vision. Specifically, the HR function can make the
following contributions:
✓ Communicate knowledge of strategic plan.
✓ Outline knowledge, skills, and abilities (KSAs) needed
for strategy implementation
✓ Propose reward systems.
 III. BUILDING SUPPORT

Top management must be aware that the

performance management system is a primary
tool to execute an organization’s strategic plan.
This awareness will lead to top management’s
support for the system.