02Planning%20Teams%2..

Planning Teams and Strategic Planning

IACT424/924 Corporate Network Design and Implementation

Outline

The Strategic Network PlanTo Plan…or Not?The Crouch DiagramSix Tips for Strategic PlanningTen Pitfalls of Strategic PlanningFactors in Selecting StrategiesPlanning TeamsWho Should Be Involved in Planning?

The Strategic Network Plan

Strategic planning determines Where an organization is going over the next

year or more How it's going to get there How it'll know if it got there or not

Far more important than the strategic plan document, is the planning process itself

To Plan…or Not?

The most basic question to ask before starting a strategic planning process is whether to develop a strategic planThe question of whether or not to develop a strategic plan may be based on answers to the following questions:

To Plan…or Not?

What purpose will the strategic plan serve?How will it help the organization?Will it be better than the system we use now?Are those in leadership positions committed to strategic planning?How much will it cost in terms of time and personnel effort?

To Plan…or Not?

Who should be on the planning team?Does anyone have experience with strategic planning?Do we think we can do it?Are we willing to make decisions about our future?Will we actually use the plan?What overriding crises would inhibit our ability to plan?

The Crouch Diagram

Why are we in business?

How do we do business?

Where are we now?

Where do we want to be?

How do we get there?

How will we know we’ve arrived?

The Crouch Diagram



Where are we now?




• Vision• Driving Force• Mission

Why Are We in Business?

Vision The future position and value of the organization

(present tense, seven words or less) The vision statement describes

desired future structure, size, services, and markets It is a sketch, not a blueprint It shows basic features, not specific dimensions. It is the

strategic baseline It must be challenging and compelling Effective vision statements capture "the dream“ They are substantive and significant They make you different


Mission The organization and its purpose (one

hundred words or less): Who we are Who we serve What products and services we offer, and How we make them available

The mission statement outlines markets, customers, and competitors


Mission Statements Broadly defines business scope and

purpose Presents "a desired position in a predicted

future world" and represents the "bulls-eye or target of the strategy" (Yavitz & Newman, Strategy in Action, 1982)

It sets down customer needs served and the range of services offered.


The mission statement answers: What is our future business? "A mission statement should not commit a firm to

what it must do in order to survive but what it chooses to do in order to thrive" (Ackoff, Management in Small Doses, 1986)

The greatest obstacle is narrow-mindedness, thinking of the future business as an elaboration of the present


Driving Forces The conditions which "drive" the organization: Products/services offered Market focus/needs Technology Production capability/capacity Method of sale Method of distribution Natural resources Size and growth, or Profit/return on investment

The Crouch Diagram



Where are we now?




• Values• Climate• Culture

How Do We Do Business?

Values The bases on which we want

decisions to be made and actions to be taken

Values are beliefs held by the company Every organization has them Values differentiate you from competitors


The Values Statement The values statement is a summary of the values

that guide operations and staff It is the basis for the ethical standards in dealings

with employees, patients or customers, vendors, competitors, and payers

The values statement addresses corporate integrity and citizenship, customer benefit, quality, and employee relationships


Culture Traditions, ethics, and other standards

which influence the way things are accomplished in the organization

Climate The interpersonal and physical

environments: is the organization a good place to be and to work?

The Crouch Diagram



Where are we now?




• Strengths• Weaknesses• Opportunities• Threats• Competition• Constraints

The Crouch Diagram



Where are we now?




• Strategy

Where Do We Want to Be?

Strategies--where we want to be and what we want to achieve.Goals and objectives--directly support our mission. Goals should be SMART:S-pecific, M-easurable, A-chievable, R-ealistic, and T-imely


The Strategy Statement A strategy is a statement of direction that

serves as a central organizational theme guiding and coordinating functional actions

A strategy articulates the nature of a business and its main intentions for the future


Strategy creates a reference point It focuses on long-term direction Is qualitative Provides guidance for short-term plans Integrates functional plans into an overall scheme Is realistic and action oriented, and is understood

at the top and middle levels of the organization (Yavitz & Newman)

A strategy must be clear and lack subtlety

The Crouch Diagram



Where are we now?




• Tactics• Resources

How Can We Get There?

Tactics Specific action plans to implement our strategies the right people doing the right things at right

time in the right way for the right reasons.

Satisfying our needs (tactics)... What is the specific goal? Who will champion it's accomplishment? When will action start? End? What tasks are involved? What resources are needed? How shall we monitor?

How Can We Get There? - The Goals/Objectives Statement

Tactics can be developed as a set of goals and accompanying objectives framing what needs to be done


A goal is a written statement describing a defined action Goals are broad ends that an organization

works towards on an ongoing basis Goals are general rather than specific,

qualitative rather than quantitative, directional rather than measurable, focal rather than achievable, and continuous rather than time-limited


An objective is a written statement describing a specific result, event, or outcome to be accomplished to work towards a particular goal Objectives are discrete aims to be completed in a

preset time frame, they are stated in terms of "what," "when," and "who."

Objectives are specific rather than general, quantitative rather than qualitative, measurable rather than directional, achievable rather than focal, and time-limited rather than continuous


Goals and objectives are hierarchically related A goals/objectives statement takes the

form of several goals (usually three or more but less than ten) enumerated in terms of their significance with each goal related to three to five objectives in the order to be accomplished.


Goal Setting Process Consider: vision, mission,

environment Generate goals Prioritize goals Determine how to defend selections Goals show "what" not "how”


Accomplishing our goals... What is the specific task? Who will champion it's

accomplishment? When will action start? End? What activities are involved? What resources are needed? How shall we monitor?


Team Process Teams select three top goals by

consensus Combine Re-Write, or Create new goals

Report to the group, defend choices Begin Action Planning


ResourcesThere are only five: People Property Time money, and Technology (or knowledge)

The Crouch Diagram



Where are we now?




GAPANALYSIS

Gap Analysis

Strategic planning closes the gap between where the company is and where it wants to be

This involves translating strategy into the realities of organizational structure, systems, policies, products, and operations

Gap Analysis

This will be done by getting answers to such questions as: What realignments in the organizational

structure are indicated? What changes are suggested in leadership

style? What new management skills are

necessary? What will be the implications for policy?

Gap Analysis

These questions represent "critical issues" which are " those major changes , modifications, additions to the organization's structure and systems, to its capabilities and resources, to its information needs and management that result from setting strategy" (Tregoe & Zimmerman)What makes these issues critical is their functional relationship to the implementation of the strategy

The Crouch Diagram



Where are we now?




• Co-Ordination• Budgets• Controls• Reports• Milestones

The Crouch Diagram

For network design and implementation, I believe the most important questions are: Where do we want to be? How do we get there?

You need information: SWOT Constraints Reports

Six Tips for Strategic Planning

1. Strategic planning is a way of thinking, an on going processThe plan is never perfect or complete

2. Keep the planning simple and manageable

3. Involve the organization’s leadersDon't give away the planning task to

support staff or consultants

Six Tips for Strategic Planning

4. Emphasize creativity, innovation, and imagination rather than blindly following a set of planning steps

5. Don't adopt strategies without careful consideration of how they will be implemented

6. Strategic planning is not an end in itselfIt is a tool to help the organization accomplish

its mission

Ten Pitfalls of Strategic Planning

1. Planning the future primarily on the basis of statistical and financial projections or forecasts

2. Over-nighting a thick packet of forms to every branch to complete and return them to the corporate office in 10 business days


3. Giving strategic planning lip-service, but not giving time or support necessary to develop or implement a credible plan

4. Rolling out a new company-wide, long-term planning process and leaving incentive packages tied to short-term results unchanged


5. Blaming competitors, customers, payers, regulators, or the sales force for the poor strategic performance of the agency or company

6. Investing in training all line managers in techniques to build an exciting agency future and then downsizing


7. Adopting a strategy inherited through the acquisition of a former rival or simply imitating a current competitor

8. Starting with a vision or mission that fails to capture the imagination and ownership of the grunts in the field


9. Letting the bean counters in the business office or in accounting or finance reduce the future to a series of monthly bottom lines

10. Trying to step into the future with both feet planted firmly in past because of a myopic view of tomorrow as what we like about today

Four Basic Strategies

Rational-Empirical

People are rational and follow self interest

change based on communication of information and offering incentives

Normative-Re-educative

People are social beings and follow social norms

change based on redefining and reinterpreting existing norms, & developing commitment to new norms

Power-Coercive

People are mostly compliant, do as they’re told

change based on the exercise of authority and the imposition of sanctions

Environmental-Adaptive

People oppose loss/disruption but adapt readily

change based on building a new organisation and gradually transferring people to the new one

Factors in Selecting Strategies

There is no single perfect strategy … please consider:Degree of Resistance

Strong: Power-Coercive & Environmental-Adaptive Weak: Rational-Empirical & Normative-Re-

educative

Target Population Large populations need all four strategies in a mix

‘something for everyone’


The Stakes High stakes need all four strategies in a

mix‘nothing left to chance’

The Time Frame Short: Power-Coercive Longer: Rational-Empirical &

Environmental-Adaptive & Normative-Re-educative


Expertise Mix the strategies according to the

expertise of the Change Agents

Dependency If organisation is dependant on its people,

managements ability to lead is limited If people are dependant on the

organisation,their ability to resist or oppose is limited

Mutual dependency requires negotiation

Marketing StrategiesCurrent Customers

New Customers in Related Fields

New Customers in Unrelated Fields

New Services in Unrelated Fields

STRATEGY VIIPRODUCT/SERVICEINNOVATIONHigh InvestmentLow ReturnHigh Risk

STRATEGY VIIIHigh InvestmentModerate ReturnHigh Risk

STRATEGY IXSTARTUPOPERATIONHigh InvestmentHigh ReturnVery High Risk

New Services in Related Fields

STRATEGY IVPRODUCT/SERVICEDEVELOPMENTModerate InvestmentLow ReturnLow Risk

STRATEGY VDIVERSIFICATIONModerate InvestmentModerate ReturnModerate Risk

STRATEGY VIModerate InvestmentHigh ReturnHigh Risk

Current Services

STRATEGY IMARKETPENETRATIONLow InvestmentLow ReturnVery Low Risk

STRATEGY IIMARKETDEVELOPMENTLow InvestmentModerate ReturnLow Risk

STRATEGY IIIMARKETINNOVATIONLow InvestmentHigh ReturnHigh Risk

Planning Teams

The planning design frequently calls for a small team to direct efforts and develop the written document Input should come from the entire

organization so that each member has a stake in the process and outcome

Team members should Work well together Be committed to the process Be respected by their peers

Planning Teams

Team Leader Should understand planning well

enough to help others through the process

If this is a first-time experience for everyone involved, out side expertise may be useful to provide an initial orientation or a jump start

Who Should Be Involved in Planning?

Establish clear guidelines for membership, for example Those directly involved in planning Those who will provide key information

to the process Those who will review the plan

document Those who will authorize the document Etc


The chief executive and board chair should be included in the planning group Should drive development and

implementation of the plan


A primary responsibility of a board of directors is strategic planning to effectively lead the organization Therefore, insist that the board be

strongly involved in planning Including assigning a planning

committee (often, the same as the executive committee)


Always include in the group, at least one person who ultimately has authority to make strategic decisionsEnsure that as many stakeholders as possible are involved in the planning process


Involve at least those who are responsible for composing and implementing the planInvolve someone to administrate the process, including Arranging meetings Helping to record key information Helping with flipcharts Monitoring status of prework, etc


Phases in Team membershipStrong board involvement in determining the organization’s strategic direction Mission Vision Values


Then more staff involvement in determining the organization’s strategic analysis to determine its current issues and goalsThen primarily the staff to determine the strategies needed to address the issues and meet the goals


In general, where there's any doubt about whether a certain someone should be involved in planning, it's best to involve them

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