Strategic Planning Workshop

14 February 2014

SESSION OBJECTIVES

At the end of the Session, participants should:

Appreciate what is a Strategic Plan;Define the role of the Strategic Plan for

CDCLContribute effectively to the 2014 -2017

Strategic Plan;Agree on Implementation Action Plans

RULES OF ENGAGEMENTTo be agreed upon

WHAT IS STRATEGIC PLANNING?

Process of long term planning;

Identifying and selecting the most appropriate ways of using the skills and resources of the School to achieve specified objectives.

WHY DOES CDCL NEED A STRATEGY

A unified direction the firm: everybody shall know where we want to be as a firm

More effective communication: this strategy will form the basis of a consistent means of expressing the firm’s communications with all stakeholders.

Better anticipation of changing conditionsHeightened sense of order and

discipline: with clear targets, frequent measurement, and feedback we will have heightened accountability focus and energy.

WHY DOES CDCL NEED A STRATEGY?

Improved skills in group problem-solving and decision-making techniques

Improved leadership and management skills for participants:

Enhanced teamwork in achieving this strategy

Strengthened sense of commitment: As a Planning Team member, we will gain a high sense of commitment to making the results happen.

VISION STATEMENTRefers to what CDCL aspires to

be in the future;

Should be the very best, so as to keep the firm aiming higher;

It is a dream, reflecting the best of the firms aspiration

It clarifies the direction in which the firm needs to move.

CDCL VISIONTo be a market leader in Africa in the provision of quality financial consultancy services in our areas of expertise.

MISSION STATEMENTWhat is our business? Why do we exist?

What “business” is CDCL in?Mission statement indicates what the firm needs to do to realize its vision, e.g. What will British Airways do to be the “World’s favorite airline?

NEED FOR A MISSION STATEMENT

Legitimizes the existence of the firm;

The actual Basis of Strategic Planning;

Good basis for setting strategic Objectives;

Guides long term thinking.

CDCL MISSION STATEMENTTo provide Quality Consultancy

Services in public sector management specializing in public financial management, organizational development, training and capacity building

CORE VALUESGovern how the firm will relate to major stakeholders.

Who are the firms stakeholders?

CDCL CORE VALUESList them

WHERE ARE WE NOWThis is also called Situation Analysis (PESTEL Analysis)PoliticalEconomicSocio-culturalTechnologicalEnvironmentalLegal

POLITICAL FACTORSRefers to regulations and

legal issues, both formal and informal;

Tax PoliciesEmployment laws;Trade Restrictions;Political stability.

ECONOMIC FACTORSThese factors affect the firms

interaction with other economic agencies:

Economic growth;Interest Rates;Inflation Rate;Exchange Rate.

SOCIAL FACTORSThese are factors that have to do with society or the organizational set up of a people.Health consciousness;Population growth rate;Age DistributionCultural beliefs and traditions

TECHNOLOGICAL FACTORSInfluence automation decisions;Rate of technological Change;Technological Incentives e.g. importation of computers has been made easy with little or no duty;

Research and Development Activities.

SWOT ANALYSISSWOT framework is an agenda for future strategic actions;

InternalStrengthsWeaknessesExternalOpportunitiesThreats

Strengths•Fairly good capacity in OM/Strategic & business planning/training & capacity building•Many years of experience in OM/Strategic & business planning/training & capacity building•Good working relationships with associates •Have a large pool of local, regional and international consultants•Good rapport with all our clients•Good firm reputation delivery of services to clients•A functional office setup•Many years of experience working in the public sector in Kenya, the region and Africa•Experience in donor funded projects•Experience in transport, water, education, local govt, financial sectors•Adequately equipped and networked•Efficient administration systems•Membership to Santa Fe Associates

Weaknesses• Lack of in house capacity in ICT and HRM• limited number of associates in ICT and HRM•Lack of adequate internal capacity for preparation of EOIs and RFPs•Inadequate skills for preparation of EOIs and RFPs• no formal established working relationship with most of the associates• undertaken limited projects in the private sector•Lack of a substantive marketing strategy•Inadequate administration staffing •Lack of proper filing systems•Lack of proper data maintenance and storage systems•Poor firm presentation and exposure (website, signage & document presentation)•Office location and presentation•Lack of an operational manual

Opportunities• an expanding and growing private sector•Available pool of consultants in Kenya and the region•A wide regional and African markets•An expanded public sector with national and county governments•A stable government focused to implementation of vision 2030•Many donor funded projects •East African Integration•Peaceful Somalia and Southern Sudan•Discover of oil in Kenya and EA generally

Threats•High level of competition in the industry•Donors preference for home country consultants •Corruption•New system of governance in Kenya•Instability within the region•Delay in EA integration due member states politics•High interest rates/high cost of borrowing•High cost of consultants •Preference of foreign firms to local indigenous firms

STRENGTHSQualities that enable the firm to fulfill its mission

Can be tangible or intangible

Gives a competitive edgeYou need to identify them and reinforce them.

CDCL STRENGTHS

WEAKNESSESRefer to internal qualities that prevent the firm from fulfilling its mission and objectives and are controllable

CDCL’s WEAKNESSES

OPPORTUNITIESAre gaps presented by the environment within which the firm operates;

CDCL’s OPPORTUNITIES

THREATS

Are factors external to the firm that compound our vulnerability when they relate to our weaknesses and they can affect negatively;

When threats come, your stability and survival can be at stake

The firm must develop a defensive plan to prevent it’s weaknesses from making it highly susceptible to external threats

CDCL’s THREATS

STRATEGIC ISSUESThese are the areas that need to be

addressed by the strategy. They come from the situational analysis

i.e. the PESTEL, SWOT and Stakeholder analysis.

They are guided by the 7s framework( See separate presentation)

CDCLS STRATEGIC ISSUES

STRATEGIC OBJECTIVESStrategic Objectives define how well the firm will develop future potential in terms of competitiveness and positioning;

They come from the strategic issues

CHARACTERISTICS OF GOOD STRATEGIC OBJECTIVES

SpecificMeasurableAttainable/Genuinely AcceptableRealisticTime BoundFlexible and MotivatingConsistentMust be in harmony with the

mission

CDCL’s STRATEGIC OBJECTIVES

KEY SUCCESS FACTORS IN THE SECTOR

These are the key determinants of success in any sector or industry;

Refer to the things that most affect the ability of the firm to succeed

Every institution must develop competence on its sector or industry’s key success factors if it has to remain successful;

The factors are usually not more than 5, and change with time.

CDCLs KEY SUCCESS FACTORS

STAKEHOLDER ANALYSISWho are the CDCL stakeholders?

COMPETITOR ANALYSISWho are CDCLs competitors?

Small firmsMedium sized firmsLarge firmsInternational Firms

STRATEGIC PLAN IMPLEMENTATION

Plan must be put in placeAppropriate resources must be

allocated;Attitudinal and Structural Changes

required – includes change management;

Prudent management of available resources;

Cost control mechanisms for the firm

RULES OF IMPLEMEATAITONBroadly called the 3Cs of implementation

Communicate

Clarify

Cascade

RULES OF IMPLEMEATAITONIn communication and clarification clearly

identify the KRAs and KRIs

Develop an implementation matrix or plan with clear action plans, the expected result or outcome persons responsible, and the timelines

Cascading means that it belongs to everyone, not the Managing Director alone. If anyone has no role in the implementation of the strategy, they have no purpose in the firm

MONITORING AND EVALUATION

In order to achieve its mission, the firm must put greater attention to strengthening the management of the implementation process.

This requires establishment and operationalization of a coherent Monitoring and Evaluation system.

M & E cont …There is need for strengthening use of M&E as a management tool for quality control and continuous learning that enables timely feedback mechanisms. The system will help answer questions of relevance, efficiency and correct problems whenever they occur and identify best practices for replication.

M & E cont …Feedback system on progress;Awareness of impacts;Transparency and Accountability

Involve Management and communicate information as necessary for decision making.

STRATEGIC PLAN ACTIVITIES

Define Objectives and targets;

Select indicators for measuring the efficiency and effectiveness of activities;

Emphasis on self monitoring at all levels and stages;

Feedback on lessons learnt;

Must haveStrategic ObjectiveVarious Action PlansBy who?By when?Costs involved

ACTION PLANS

THANK you all for your attention