Strategic Planning

Learning Objectives
Identify the various steps in the strategic planning
process
Initiate and manage a strategic planning process
Determine appropriate tools for strategic planning
Understand strategies for evaluation
Initiate community support and involvement in the
process
Develop communication strategies to promote the
strategic planning process
Identify partners to be involved in strategic planning
process
Participate in the strategic planning process (if
applicable)

What is Strategic Planning

Used by community groups, government
departments, organizations and businesses to
develop blueprint for action and change
the process should be community based,
inclusive and participatory to allow for maximum
stakeholder involvement and input.

Benefits of Strategic Planning

Defines mission, vision &
values
Establishes realistic
goals, objectives &
strategies
Ensures effective use of
resources

Provides base to
measure progress
Develops consensus on
future direction
Builds strong teams
Solves major problems

Types of Planning
Types of planning
Strategic planning
Business planning
Project planning
Program planning
Municipal planning
Planning as a profession
Professional planners
Planning functions in other professions

Planning to Plan

Planning to plan requires:

Organizational readiness
Recognition of need to plan
Commitment to plan
Organizational commitment
Board and volunteer commitment
Staff commitment

Planning to Plan
Organizational Capacity
Human resources
Staff
Volunteers
Board committees
Special/Standing committees
Financial resources
Identify budget
Determine resources
Time
Allocate organizational time
Determine realistic time lines

MISSION STATEMENT

A Mission StatementEmbodies the business philosophy of a companys decision

makers
Implies the image the company wishes to project for itself
Reflects the companys self-concept
Indicates the companys principal product or service areas
Includes the customer needs the company seeks to satisfy

MISSION AND VISION

BASIS

MISSION

VISION

Concerned with

Present

Future

Answers the
question

What is our
business?

Which way should

we be going?

Focuses on

Present strategic
thrust

Chartering the
strategic path

DEVELOPING THE MISSION

STATEMENT
A mission statement should be a declaration of organizational purpose, attitude or outlook.
have a clear customer orientation.
be a declaration of social objectives or policy.

It should answer questions pertaining to companys

Philosophy
Self-concept
Products or services
Markets
Technology
Concern for survival, growth and profitability
Customers
Concern for employees
Concern for public image

MISSION STATEMENT : TATA

IRON AND STEEL COMPANY
To strengthen Indias
industrial base through
increased productivity;
Effective utilization of
manpower and material
resources; and,
Continued application of
modern scientific
managerial methods.

MISSION STATEMENT: PEPSICO

AND DELL COMPUTERS
PEPSICO
To increase the value of
our shareholders
investment.

DELL COMPUTER
To be the most successful
computer company in the
world at delivering the
best customer experience
in markets we serve.

PROBLEMS WITH MISSION

STATEMENT

CORPORATE PHILOSOPHY
The corporate philosophy envisages the basic beliefs, values,
aspirations and philosophical priorities of a company which
the management or strategic decision makers are committed
to.
Corporate objectives are
Focused;
Specific; and,
Usually quantitative.

CORPORATE OBJECTIVES AND

GOALS
Desired states or outcomes are objectives. Goals are
objectives that are scheduled for attainment during planned
period. Ackoff
Categories of corporate objectives:
Strategic
Tactical
Operational

AREAS OF OBJECTIVE
SETTING: PETER DRUCKER

OBJECTIVE SETTING
Objectives should be Clear and, not expressed in vague or general terms
Precise and exact and, should be measurable as far as possible
Consistent with organizational mission
Logical and realistic rather than idealistic
Reflecting of all the major areas of company performance and
responsibility
Based on strength and weakness analysis of the company to
make them achievable
Yielding specific results when fulfilled
Reviewed periodically and should be reset in the context of
changed circumstances

GOOD OBJECTIVE SETTINGEXAMPLES

We want to become the market leader within the next three
years
Our objective is to increase earning so that we can earn 15 per
cent return on capital employed
We aim to increase productivity by 10 per cent every year
during the next three years

BAD OBJECTIVE SETTING EXAMPLES

We shall try to improve our position in the market during the
next few years
We shall always endeavour to increase productivity
Our objective is to satisfy customers as far as possible

ORGANIZATIONAL LIFE CYCLE,

OBJECTIVES AND STRATEGIC
FOCUS

STRATEGIC INTENT
If a particular objective of a company becomes extremely
focused and directed towards a specific target, the company is
showing a strategic intent.
Strategic intent of a company is clear about the end or the
target, but, it is flexible with regard to the means and leaves
room for creativity and improvisation.

Developing the Plan

Mission
Core purpose of your organization
Presented in a clear, short statement that
focuses on attention in one clear direction
by stating purpose of the groups
uniqueness.

Developing the Plan

Vision
What is your organizations vision of
excellence
Has to be realistic and not something
impractical

Developing the Plan

Values
What are the principles, standards, and
actions considered worthwhile in the
organization
Includes how people treat each other, how
groups conduct business and what is most
important to the organization

Developing the Plan

Strategic Analysis
Environmental Scan
gathering of information that concerns
the organizations environments
analysis and interpretation of this
information
application of this analyzed information in
decision making

Developing the Plan

Strategic Analysis
SWOT Analysis
Strengths
What are some internal positive things about your
organization?
What does the community see as your strengths?
Weaknesses
What are some weaknesses in organization?
What does the community see as your
weaknesses?

Developing the Plan

Strategic Analysis
SWOT Analysis
Opportunities
What are some opportunities in your community or
region?
What are some emerging trends?
Threats
What are some provincial or national issues facing
the organization?
What are some technology issues that face the
organization?

Strategic Planning Process

Developing the Plan (continued)
Goals
Identify long-term outcomes to provide
focus for the planning process
Strategies
Outline how you will achieve your goals
Objectives
Identify specific, measurable results
produced while implementing strategies.

Strategic Planning Process

Goals and Objectives Should Be SMARTER
Specific
Measurable
Acceptable
Realistic
Timeframe
Extending
Rewarding

Strategic Planning Process

Developing the Plan (continued)
Implementation
Tasks assigned to various board and
staff responsible for specific items
Timelines - established for implementation
of the plan for implementation
Funding the plan
What is required to fund the goals in the
plan

Strategic Planning Process

Developing the Plan (continued)
Communicating the plan
How will you communicate the plan to stakeholders?
Monitoring and evaluation
Critical to plans success and credibility
Must be built into the plan
Critical for continuous improvement
Continuous improvement
focuses on improving customer satisfaction through
continuous and incremental improvements to
processes

Strategic Planning Process

Exercise 6
Prepare a SWOT analysis as part of the
strategic planning process

Strategic Planning
Tools & Techniques

Focus Groups
Provides opportunity to address
specific issues
Provides opportunity for maximum
participation
Provides maximum information in
short period of time

Strategic Planning
Tools & Techniques
Website feedback
Online survey
Online discussion paper to generate comments
Surveys
Online survey
Community survey
Can be developed and administered locally
Can be conducted by firm specializing in surveys
Research
Focus groups, surveys (primary)
Literature review (secondary)