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AGENCY MANAGEMENT

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STRATEGIC PLANNING

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Alice: Which way should I go?

Cat: That depends on where you're going.

Alice: I don't know where I'm going!

Cat: Then it doesn't matter which way you go!

Lewis Carroll, 1872, Through the Looking Glass

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DEFINITION

Long-term plans based on the organizations overall business objectives. Strategic plans are typically multiple years and reach out 5 or 10 years (or more) using Scenarios or other planning methods that identifies Assumptions, Risks, and Environmental factors.

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Strategic planning suggests ways to identify and to move toward desired future states. It consists of the process of developing and implementing plans to reach goals and objectives.

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What is a Plan?

A plan is a scheme of action to attain an objective. We make informal plans whenever we decide we

want something, and work out what to do to get it. It is a basic assumption that plans based on better

information and greater capability will be more useful in helping us to achieve our goals.

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However, do not assume that planning must be entirely rational, that once they are written down plans must be closely adhered to, or that there is a single best way to do planning.

A strategic plan is drawn up and implemented with a conscious awareness that planning and action take place in complex social, political and economic environments.

Strategic planning takes account of how others in the environment may affect, or be affected by our planning.

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Planning is anticipatory decision-making; a process of deciding what will be done before the action is required.

Strategic planning takes into account the reality that things will change between the time of making the plan and the time of implementing it.

So strategic planning is flexible and responsive to changing circumstances.

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Goodstein, Nolan and Pfeiffer define strategic planning as

“The process by which the guiding members of an organization envision its future and develop the necessary procedures and operations to achieve that future”

(Goodstein, 1993: 3).

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The vision of a future state is an important element.

Its not necessarily just taking into account current trends, or an attempt to anticipate the future and prepare for it.

Strategic planning does more than plan for the future; it helps us to create the future that we want for ourselves and those who follow us.

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Characteristics of Strategic planning:

1 Strategic planning is a coherent, unifying and integrative pattern of decision making. It is conscious, explicit, and proactive.

2 Strategic planning is a means of establishing the purpose of an organisation, program, or project and the objectives, actions, and allocation of resources required to achieve the purpose.

3 Strategic planning defines an organisation’s competitive field.

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4 Strategic planning responds to internal strengths and weaknesses and external opportunities and threats to develop and capitalise on advantages which come along.

5 Strategic planning becomes a system for differentiating tasks and roles, so that structure follows function.

6 Strategic planning is a way of identifying the economic, social, political benefits that an organisation will offer to its stakeholders.

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7 Strategic planning answers the question: ‘Where are we going?’

8 Strategic planning gives a sense of direction, provides a mission statement, clarifies the scope of operations and establishes a set of goals and objectives

9 Strategic planning pushes us to have a hard look at ourselves, and the threats and opportunities of the external environment. It forces us to measure the gap between our objectives and our capacity to attain them.

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10 Strategic planning asks: ‘How will we get here?’ to make explicit the implicit model we are following, as well as the resources we will need to allocate to the process of getting there.

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Why use Strategic Planning?

1.To provide a framework for action which can

Guide the program or project and the people working in it.

Promote discussion among participants and stakeholders.

Provide a means to decide what actions are needed. Produce a workable plan in a reasonable period of time.

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2. To give an opportunity to put everyone’s energy behind certain agreed goals, objectives and shared visions.

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3. To help an organisation and its participants to develop and utilise a better understanding of the environment To understand the arena they are operating in at

present. To become familiar with current and potential

capabilities and limitations. To monitor changes and current events, and constantly

adjust. To provide proper incentives at individual and

organisational levels.

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As with most things a strategic plan must be written with S.M.A.R.T. principles i.e.

Specific Measurable Achievable Realistic Time bound

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Strategic Planning Cycle

1. Statement of purpose2. Create a Vision of the future3. Identify external influences (P.E.S.T.L.E

Analysis)4. Identify current Strengths and Weaknesses

(S.W.OT. Analysis)5. Audit Resources6. Set out objectives

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6. Develop a Financial Plan

7. Produce a Timetable for the Plan

8. Monitor, Evaluate and Review

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All of the above actions will be rendered useless if you have not CONSULTED all STAKEHOLDERS in the organisation at all points in the strategic planning process.

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PESTLE Analysis (PEST analysis)

The PESTLE acronym. Political Economic Social Technological Legal Environmental

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Political

Global, national, regional, local and community trends, changes, events etc

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Economic

World, national, local trends changes, events etc

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Social

Developments in society – culture, behaviour, expectations, composition etc

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Technological

Developments in computer hardware, software, applications, other equipment, materials, products and processes etc

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Legal

World/EU/National/Regional legislation changes, prospects etc

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Environmental

Global/EU/National/Local issues, pressures, movements etc