Some Concepts

to Help the Development

of a Strategic Planning
April 2008
Mário Luís Tavares Ferreira
Strategic Planning
Goals / Objectives

SWOT Analysis

Strategy

Implementation

Measurement and Evaluation

SWOT
Internal Environment
Strengths Weaknesses
World class product Technical support
Financial resources Internal processes
Know-how Channels network
External Environment
Opportunities Threats
Water & Energy crises Competitors market share
Environment awareness Euro X Dollar
Productivity improvement Technology development
TOWS matrix
Strengths Weaknesses
Opportunitie S-O strategies W-O strategies
s

Threats S-T strategies W-T strategies

S-O strategies pursue opportunities that are a good fit to the companies
strengths.
W-O strategies overcome weaknesses to pursue opportunities.
S-T strategies identify ways that the firm can use its strengths to reduce
its vulnerability to external threats.
W-T strategies establish a defensive plan to prevent the firm's
weaknesses from making it highly susceptible to external threats.
PEST analysis
A scan of the external macro-environment in
which the company wants to operate (or
operates) and can be expressed in terms of
the following factors:

 Political
 Economic
 Social
 Technological
 Ninety ways to measure demand (6 x 5 x 3)

Geographical World
Level Region
Country
Territory
Client
Total sales
Sector sales
Company’s sales
Product
Level Product lines
Product config

Product items
Short Medium Long
term term term

Timing Level
Porter 5 Forces
Value Chain
Innovation Operation Post Sales
Process
Process Process
Identification Satisfaction of
of client’s Client’s
necessities necessities

Market
identification products / Delivery Services
products
products / services to the
and
services creation clients
services
definition
Life cycle

Sales & profit Sales

Profit

Invest & expenses

i de
Product n tro growth maturity cli
du ne
development
ct
io
n
Boston matrix – Product life
cycle
 Directional policy matrix or GE-McKinsey matrix

The diameter of each

pie is proportional to
the Volume or Revenue
accruing to each
Segment, and the solid
slice of each ‘pie’
represents the share of
the market enjoyed by
the Company.
S curve
Management

 Management, control and evaluation

Keys of Success - Facts of
Failure
Deployment - Plan Completing
Success Failure
>Assign roles and responsibilities >No accountability for deployment

>Establish priorities >Too many goals, strategies, or objectives - no

apparent priority

>Involve mid-level management as active >Plan in a vacuum-functional focus

participants

>Think it through - decide how to manage >No overall strategy to implement

implementation

>Charge mid-level management with >Make no attempt to link with day-to-day

aligning lower-level plans operations

>Make careful choices about the contents >Not being thorough-glossing over the details
of the plan and form it will take
Keys of Success - Facts of
Failure
Deployment - Communicating
Success Failure
Assign roles and responsibilities No accountability

Communicate the plan constantly Never talk about the plan

and consistently

Recognize the change process Ignore the emotional impact of change

Help people through the change Focus only on task accomplishment

process
Keys of Success - Facts of
Failure
Implementing - I
Success Failure
Assign roles and responsibilities No accountability

Involve senior leaders Disengagement from process

Define an infrastructure Unmanaged activity

Link goal groups Fragmented accomplishment of

objectives leads to sub-optimization

Phase integration of implementation Force people to choose between

actions with workload implementation and daily work; too many
teams
Involve everyone within the
organization No alignment of strategies
Keys of Success - Facts of
Failure

Implementing - II
Success Failure
Allocate resources for implementation Focus only on short term need for
resources

Manage the change process Ignore or avoid change

Evaluate results No measurement system

Share lessons learned; acknowledge Hide mistakes/lay blame;

successes through open and limited/no communication
frequent communication
Keys of Success - Facts of
Failure
Strategic Measurement - I
Success Failure
Assign roles and responsibilities No accountability

Use measurement to understand Sub-optimization: focus only on

the organization efficiencies

Use measurement to provide a Use measures that provide no real

consistent viewpoint from which to information on performance; use
gauge performance too many measures

Use measurement to provide an Use measurement to focus on the

integrated, focused view of the bottom-line only
future
Keys of Success - Facts of
Failure
Strategic Measurement - II
Success Failure
Use measurement to communicate Use measurement to control
policy (new strategic direction)

Update the measurement system Never review measures

Use measurement to provide Fail to use measurement to make

quality feedback to the strategic strategic, fact-based decisions; use
management process only for control
Keys of Success - Facts of
Failure
Evaluation
Success Failure
Assign roles and responsibilities No accountability

Recognize when to update the plan Poor timing and not recognizing external
forces

Modify strategic planning process to Rigid application of strategic planning

accommodate the more mature organization process; ignore lessons learned from
previous efforts

Ignore impact of new leaders

Incorporate new leaders into the strategic
planning process

Integrate measurement with strategic planning Don't use measurement information

Use experienced strategic planning facilitators Shortcut the process

Measurement and evaluation –
BSC
Measurement and evaluation –
BSC
Measurement and evaluation –
BSC
Measurement and evaluation -
BSC
Five disciplines – Peter Senge
 Personal Mastery:
 Aspiration involves formulating a coherent picture of the results
people most desire to gain as individuals, alongside a realistic
assessment of the current state of their lives today.
 Learning to cultivate the tension between vision and reality can
expand people's capacity to make better choices, and to achieve
more of the results that they have chosen.
 Mental Models:
 Reflection and inquiry skills is focused around developing
awareness of the attitudes and perceptions that influence thought
and interaction.
 By continually reflecting upon, talking about, and reconsidering
these internal pictures of the world, people can gain more
capability in governing their actions and decisions.
Five disciplines – Peter Senge
 Shared Vision:
 Establishes a focus on mutual purpose.
 People learn to nourish a sense of commitment in a group or
organization by developing shared images of the future they
seek to create, and the principles and guiding practices by which
they hope to get there.
 Team Learning:
 Group interaction.
 Through techniques like dialogue and skillful discussion, teams
transform their collective thinking, learning to mobilize their
energies and actions to achieve common goals, and drawing
forth an intelligence and ability greater than the sum of individual
members' talents.
Five disciplines – Peter Senge
 Systems Thinking:
 People learn to better understand interdependency and
change, and thereby to deal more effectively with the
forces that shape the consequences of our actions.
 Systems thinking is based upon a growing body of theory
about the behavior of feedback and complexity - the innate
tendencies of a system that lead to growth or stability over
time.
 To help people see how to change systems more
effectively and how to act more in tune with the larger
processes of the natural and economic world.
Project management -
processes
Project management – a
process
Project management –
process chain
Project management –
risk analysis