PERFORMANCE MANAGEMENT AND

STRATEGIC PLANNING
by Aliya Ahmad Shaikh
PERFORMANCE MANAGEMENT & STRATEGIC PLAN: WHAT IS THE LINK?
Organizational strategic
plans
Mission
Vision
Goals
Strategies
1. Strategic planning
2. Developing
Units strategic plans strategic plan at
Mission the unit level
Vision
Goals 3. Job description
Strategies 4. Individual and
team
performance
Job description
Tasks
Knowledge
Skills
Abilities

Individual & team

performance
Results
Behaviors
Developmental plans
STRATEGIC PLANNING
 Strategicplanning 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. 
 Maingoal of strategic planning is to allocate resources
in a way that provides organizations with a
competitive advantage.
A strategic plan is thus a visionary, conceptual and
directional outline of the organization.
COMPETITIVENESS & COMPETITIVE
ADVANTAAGE
 Competitiveness is an organization’s ability to maintain and gain
market share in a specific industry.
 A competitive advantage exists when an organization is able to
provide the customer a better value than the competition.
 For example, the ability to produce products at a lower price (cost
efficiency/comparative advantage), or of better quality
(differentiation) can create a competitive advantage.
WHO MAKES STRATEGIES?
STRATEGIC PLANNING PURPOSES
1. Helps define the organization’s identity
2. Helps organizations prepare for the future
3. Enhances ability to adopt to environment changes
4. Provides focus and allows for better allocations of
resources
5. Produce an organizational culture of cooperation
6. Allows for the consideration of new options and
opportunities
7. Provide employees with information to direct daily
activities
STRATEGIC PLANNING
There are several steps that must be considered in the creation of a
successful strategic plan. 
1. The conduct of an environmental analysis.
2. The creation of an organizational mission.
3. The creation of an organizational vision.
4. Setting goal.
5. Creation of strategies.
Environmental analysis
o Internal environment:
  The non exhaustive list of internal issues that should be
considered in environmental analysis: 
• Organizational structure
• Organizational culture
• Politics
• Process
• Size
The non exhaustive list of external factors from
Macro Environment that should be considered in
environmental analysis
Political Structure and Stability

Economic Policies and Fiscal Status

PESTEL Social Trends

ANALYSIS
Technology Dependence & Adpatation

Legal Frameworks and Implementations

Environmental Considerations and Regulations

SWOT ANALYSIS
The information collected through internal and external environment is
used to conduct a gap analysis. 

Characteristics of a Characteristic of
business which give it business which
advantage over its make it
competitors disadvantageous
relative to
competitors

S W
Elements in a Company’s
external environment
that may contribute
towards its
O T • Elements in the
growth/competitiveness external environment
that could endanger
the profitability or
growth of the business
A look at Mission Statement of the
Company
 Mission Statement answers:
• Why does the organization exist?
• What is the scope of organizations activities?
• Who are the customers served and what is the primary market?
• What are the products and services offered?
• Managerial philosophy of the organization
• Public image sought by the organization
• Self concept of business adopted by the employees and stakeholders
• Values and Beliefs
• Technology
• Unique benefits and advantages of product or services
• Concerns for survival through growth and profitability
Vision Statement
Vision statement includes a description of future aspiration. It provides direction and focus.
Characteristics of good vision statement:
 Brief: A vision statement should be brief so that employees can remember it. 
 Verifiable: A good vision statement should be able to stand the reality test.
 Bound by a time line: A good vision statement specifies a timeline for the fulfillment of
various aspirations.
  Current: Outdated vision statements are not useful. Vision statements should be updated on
an ongoing basis, ideally as soon as the old vision is fulfilled.
 Focused: A good vision statement is not a laundry list of aspiration, but rather focuses on just
a few aspects of an organization’s performance that are important to future success.
 Understandable: vision statements need to be written in a clear and straightforward manner
so that they are understood by all employees.
 Inspiring: Good vision statements make employees feel good about their organization’s
direction and motivate them to help achieve the vision.
Strategic Planning: Goals + Objectives+ Strategies+
Programs
 Goals:
 The purpose of setting goals is to formalize statements about what
the organization hope to achieve in the medium to long range period.
 Goals provide more specific information regarding how the mission
will be implemented.
 Strategies: 
 Strategies are descriptions of gain plans or how to procedures to
reach the stated objectives.
 Strategies could address issues of growth, survival, turnaround,
stability, innovation, and leadership among others.

 
TOWS Strategic Alternatives Matrix
The pairing of external opportunities and threats with internal strengths and weakness lead to
following situations:
Strengths
(Internal Positive Factors), Such
as:
S1. Management, R&D, Finance
S2. Operations across supply
chain
S3. Strong Value Chain i.e.
distribution channels
Weaknesses
(Internal Negative Factors),
Such as:
W1. litigations
W2. financial position
W3. losing suppliers
Opportunities Threats
(External Positive Factors, Such as: (External Negative Factors) ,
O1.Favorable future economic conditions, Such as:
political or social changes T1. Lack of Energy
O2. New products/services which could be T2. Threat of new entrants
launched with the help of technology and T3. Increased labor cost
innovation
O3. Geographical Expansion
SO (MAXI-MAXI STRATEGIES) ST (MAXI-MINI STRATEGIES)
Strategies that use strengths to maximize Strategies that use strengths to minimize
opportunities. threats.
Idea Description Idea Description
Idea Description Idea Description
Idea Description Idea Description
WO (MINI-MAXI STRATEGIES) WT (MINI-MINI STRATEGIES)
Strategies that minimize weaknesses by taking Strategies that minimize
advantage of opportunities. weaknesses and avoid threats.
Idea Description Idea Description
Idea Description Idea Description
Idea Description Idea Description