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CHAPTER 2

THE STRATEGY CHANGE CYCLE:


AN EFFECTIVE STRATEGIC PLANNING
APPROACH FOR PUBLIC AND
NONPROFIT ORGANIZATIONS
PRESENTED BY:

DEVI ASYAIDAH
371240

SITI RAHAYU
371306

A TEN STEP STRATEGIC PLANNING


PROCESS
1 Initiate and agree on a strategic planning process
2 Identify organizational mandates
3 Clarify organizational mission and values
Assess the external and internal environments to identify
4 strengths, weaknesses, opportunities, and threats
5 Identify the strategic issues facing the organization
6 Formulate strategies to manage the issues
7 Review and adopt the strategic plan or plans
8 Establish an effective organizational vision
9 Develop an effective implementation process
10 Reassess strategies and the strategic planning process

The Strategy Change Cycle

Initiating And Agreeing On A Strategic Planning


Process

negotiate agreement among key decision makers or


opinion leaders
identify who key decision makers are
Stakeholder analysis
key to success: satisfaction of key stakeholders

Step 2:

Identifying Organizational Mandates


Mandates consist of the various informal and
formal requirements, restrictions, expectations,
pressures, constraints
Organizations make three fundamental
mistakes :
if an organization does not know what they
must do, they are unlikely to do it;
an organization may not be as tightly
constrained by mandates as it believes it to
be; and,
stakeholders may assume they are not
allowed to do something, when mandates in
fact will allow it.

Step 3:

Clarifying Organizational Mission and Values


mission provides organization social justification for its
existence
mission points the way toward ultimate end of
creating public value
SCC is guided by the need for choices based on
reasons in order to achieve ends
clarifying purpose helps eliminate
unnecessary conflict
Stakeholder analysis, for whom
Mission statement might be very short

Step 4:

Assessing the Organizations External and Internal


Environments

SWOC/T
Strengths and Weaknesses- internal,
present
Opportunities and Threats- external,
future
need performance info to avoid conflicts
core competencies: organization
strongest abilities; can't be easily
replicated by others

Identifying the Strategic Issues Facing an


Organization

fundamental policy questions or challenges


focus on achieving best fit between org and
environment
statement of strategic issue
described in paragraph
list factors that make the issue a challenge
state consequences of failure to address issue

eight approaches to ID of issues


important for those involved to have as clear
picture as possible of the challenges facing the
organization

Formulating Strategies and Plans to Manage


the Issues
Effective
strategy
formulation
and
implementation processes link rhetoric, choices,
actions, and consequences into reasonably
coherent and consistent pattern across levels,
function, and time (Bryson, 2011; Eden &
Ackerman, 1990). Bryson offers 2 approaches:

A Five-Part
Strategy
Development
Process

Action-Oriented
Strategy
Mapping

Step 6......(Cond)
A Five-Part Strategy Development Process Approach

Identification of practical alternative, and dreams or


visions for revolbing the strategic issue
Enumerate the barries and constraints to achieving
those alternative, dreams, and visions.
Develops major proposals for achieving these goals
directly, or else directly trough overcoming the
barries
Define actions that must take over the next two to
three years
Define a detailed program for the next six months
to a year be spelled out to implement the actions.

Step 6......(Cond)
Action-Oriented Strategy Mapping

This method
involves listing
multiple options to
adress each
strategies issue

The options are


linked by arrows
indicating which
options cause or
influence the
achevement of
other options.

MAP = causeeffect

An effective strategy must have several


criteria:

Administratively Feasible

Workable
Politically Acceptable

Results-oriented

Reviewing and Adopting the Strategies and


Plan

The strategy have been formulated.


The team need to obtain an official
decision to adopt with their
implementation.

The SPCC will need to approve the


resulting strategy in order for
implementation for proceed effectively.

Step 8:

Establishing an Effective Organizational Vision

The organizations might revise or


create a vision
The organization need to describe
organizations vision of succes.
Missions, philosophy, basic strategies,
performance criteria, some important
decisions rules, and the ethical
standards expected of all employees.

Developing an Effective Implementation


Process
Implementation roles and responsibilities
of oversight bodies, organizational teams
or task forces, and individuals
Expected results and specific objectives,
requirements, and milestones
Specific action steps and relevant details
Schedules
Resource requirements and sources
A communication process
Review, monitoring, and mid - course
correction procedures to build in capacity
for ongoing learning
Accountability procedures

Step 10:

Reassessing Strategies and the Strategic


Planning Process
new round of strategic
planning begins

the ongoing implementation


process
Effectiveness in this step
really does depend on
effective organizational
learning

Tailoring The Process To Specific Circumstances


Sequencing the Steps
Making Use of Vision, Goals, and
Issues
Applying the Process Across Organizational
Sub units, Levels and Functions on an
Ongoing Basis
Applying the Process to Functions that
Cross Organizational Boundaries,
Collaborations, and Communities
Roles for Planners, Decision Makers,
Implementers, and Citizens