STRATEGIC PLANNING

. . . defines clearly what the organization wants,what it is all about, who it wishes to serve, what it intends to get out of its efforts, and how specifically it should move over time.

THE STRATEGIC PLANNING PROCESS
1. From the TOP where the strategist draws a clear picture of where it wants to go (a vision) and establishes a purpose for being of the organization (the mission statement). 2. From the BOTTOM where the strategist grounds the organization according to the realities of the environment it operates in. a. External environment – industry or sector b. Internal environment – resources, manpower, capabilities, and constraints

VISION, MISSION, OBJECTIVES, KRAs, and PERFORMANCE INDICATORS VISION – an ideal state or condition which an organization wants to attain MISSION – general thrust of the organization that is anchored in its vision – broad enough to inspire its organization but narrow enough to focus its efforts GOALS – measurable end results that derive their impetus from the mission statement KEY RESULT AREA (KRA) – functional areas where results should be generated PERFORMANCE INDICATOR – measure of standards based on KRA

FACTORS IN ENVIRONMENTAL ANALYSIS  SOCIAL  POLITICAL  ECONOMIC  ECOLOGICAL

INTERNAL ASSESSMENT
1. Determine its performance vis-a-vis its given or adopted mandate (vision, mission, objectives) 2. Gauge the capabilities of the people in the organization to carry out the chosen strategies 3. See whether the proper amount of resources are being put behind the strategies to realize organizational objectives 4. Evaluate the systems, processes, and procedures instituted by the organization to implement its strategies and attain its 5. objectives different operational functions of the Assess the organization, its various programs and projects and the support services supplied to back up the strategies and objectives desired

6. Examine individual managers and teams of people as to their management styles, value systems, relationships, ethics, client orientation, and performance accdg. to result-based criteria 7. The organization’s facilities and environment must be studied to see whether they are responsive to organizational needs and conducive to good performance 8. The organization’s external linkages and networks as well as its detractors/competitors must be scanned as to their role in the organization’s effectiveness 9. Top managers and leaders must be evaluated as to their ability to elicit support, and 10. Assess over-all consistency or fit among the strategies adopted, and the people of the organization in relation to the adopted vision, mission, and objectives.

STRATEGIES, ORGANIZATION, AND PEOPLE INTERRELATIONSHIPS

STRATEGIES
• • • Programs Activities Tasks
• • • Planning Decision-making Implementing VISION MISSION • Motivating • Evaluating OBJECTIVES • Leading • Relating • Staffing and Supportin g

ORGANIZATIO
• • • Structures Systems Resources

• Capabilities • Attitudes

PEOPLE

SWOT ANALYSIS
1. Strengths-Opportunities (S-O) strategies
Ask the question: How can strengths be employed to take advantage of development opportunities?

2. Strengths-Threats (S-T) strategies
Ask the question: How can strengths be used to counteract threats that tend to hinder achievement of objectives an dpursuit of opportunities?

3. Weaknesses-Opportunities (W-O) strategies
Ask the question: How can weaknesses be overcome to take advantage of or implement development opportunities?

4. Weaknesses-Threats (W-T) strategies
Ask the question: How can weaknesses be overcome to counteract threats that tend to hinder achievement of objectives and pursuit of opportunities?

SWOT ANALYSIS
Internal Environment Assessment

STRENGTHS

WEAKNESSES

External Environment Assessment

OPPORTUNITIES

(S-O)

(W-O)

THREATS

(S-T)

(W-T)

BASIC STEPS IN STRATEGIC PLANNING  Analysis of the situation, both internal and
external  Diagnosis, or identification of the key issues facing the organization  Definition of the organization’s fundamental mission  Articulation of the organization’s basic goals  Creation of a vision: what success looks like  Development of a strategy to realize the vision and goals  Development of a timetable for that strategy  Measurement and evaluation of results

BASIC STEPS IN STRATEGIC PLANNING (Bryson Model)
 Initiating and agreeing on a strategic planning process  Identifying organization mandates  Clarifying organization mission and values  Assessing the external environment (opportunities and threats)  Assessing the internal environment (strengths and weaknesses)  Identifying the strategic issues facing an organization  Formulating strategies to manage the issues  Establishing an effective organization vision for

Sample Sequence

A sample sequence of the strategic planning proce may go like this:

1. Review of existing vision, mission, and objective and of existing strategies.

2. Take stock of existing environment according to relevance, magnitude, importance and urgency. • Study events unfolding and resources of the environment • Evaluate trends, directions, movements in the environments

• Identify opportunities for development by the organization • Identify obstacles or threats to development by the the organization

3. Asses internal environment using the ten tasks (processes) outlined in this paper (refer to sectio on Internal Assessment). Gauge strengths and weaknesses of the organization.

4. Re-examine values, ideologies in light of change in external environment and internal capabilities Refine vision, mission and objectives accordingly

5. Establish key result areas and specific resultoriented, measurable performance indicators.

6. Juxtapose opportunities and threats found in external environment with internal strengths an weaknesses of the organization. This serves as the basis for doing a SWOT analysis.

7. Creatively list strategic options. Samples includ the following strategic options which are categorized according to Strengths-Opportunitie (S-O), Strengths-Threats (S-T), WeaknessesOpportunities (W-O) and Weaknesses-Threats (W-T).

Internal Strengths Environment Assessment

Weaknesses

External Environment Assessment Opportunities (O) (S-O) (W-O) 1. 2. Expand area/sector/ Niche 2. 2. industry coverage 3. Form linkages or 3. 2. Intensify existing networks 4. operations 3. Subcontract 3. Integrate backward or forward 4. Acquire or take over Threats (T) (S-T) (W-T) 1. 2. Diversify into other 2. Retrench 2. services or products Merge 3. 3. 2. Consolidate 4. Withdraw/ 4. 3. Contingency close shop mechanisms

8. Make a choice according to criteria supportive of key result areas and performance indicators that have been established. 9. Gear for implementation a. Define specific, shorter term goals b. Set policies, guiding principles c. Allocate resources: money people facilities managers time

d. Organize for tasks e. Determine who will manage what f. Service delivery mechanisms, methods, systems, procedures

g. Sequencing of activities; planning step by step process; time-framing of whole strategy, programs, and projects h. Support systems; alliance building i. Communication and dissemination

10. Contingency Planning What can go wrong? Establish fallback positions 11. Evaluation Process a.Monitoring of performance according to key result areas and performance indicators. b. Evaluating variance from performance and establishing causes, determining effects. c. Corrective action d. Instituting better control mechanism 12. Reformulate strategies A summary Table of Strategic Planning Components is attached for reference.

SUMMARY TABLE OF STRATEGIC PLANNING COMPONENTS: FROM VISION TO PERFORMANCE

Vision Targeted Strategies   Programs,Internal Internal Internal External External ExternalActual                     Mission Results/ to Ensure Activities, Staff Capabilities ResourcesAssistance Organizations Resources Performanc Impact-based Outcomes/ and Tasks Required and Skills Required Needed to be Required Indicators Performance Results Required Accessed Indicators Impacts     Strategy Program A a. 1   - Activities - Tasks   a.   a.   a.   a.   a.   a.

    1.Objective 1 a. b. Key Result Area(s)

    . Objective 2 c. d. ey Result rea(s)

    Strategy Program B b. 2   - Activities - Tasks

  b.

  b.

  b.

  b.

  b.

  b.

    . Objective 3 e. f. ey Result rea(s)

      Strategy Program C c. 3 - Activities - Tasks

  c.

  c.

  c.

  c.

  c.

  c.

    . Objective 4 g. h. ey Result rea(s)

    Strategy Program D d. 4   - Activities - Tasks

  d.

  d.

  d.

  d.

  d.

  d.

Strategic Planning Process
The Issues
Where are we now?

The Components
Internal/ External Assessment

The Process
• Conduct situation inventory and experimental scan • Conduct quality assessment and benchmarking • Define strategic issues

The Issues
Where are we now?

The Components
Mission and Principles

The Process
• Define the institution’s purpose in a broad comprehensive statement • Define core values and action to achieve mission • Employees and management are involved

The Issues
Where do we want to be?

The Components
Vision

The Process
• Articulate the compelling image of desired future

The Issues
Where do we want to be?

The Components
Goals and Objectives

The Process
• Establish goals and objectives based on consideration revealed in the internal and external assessment • Indicate specific and measurable targets for accomplishment

The Issues
How do we get there?

The Components

The Process

Strategies and • Determine Action Plans strategies used to accomplish goals and objectives • Involve detailed work plans • Lead to resource allocation

The Issues

The Components
Performance Measure

The Process

How do we measure our progress?

• Determine methods used to measure results • Ensure accountability

The Issues

The Components

The Process

Monitoring and • Design systems to How do we monitor progress measure our Tracking progress? • Keep plans on track
Source: State of Arizona’s Strategic Planning and Performance Management Handbook, Managing for Results

Note: 1. In practice, the process is not linear. Some steps may be repeated as assumptions change. 2. Each planning result should be communicated to every level of the institution so that everyone shares it.

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