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Strategic Planning
Sandeep Bhasin
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Planning
The act or process of making a plan
Analysis ofOpportunity
IdentifyAim
ExploreOptions
Select BestOption
DetailedPlanning
PlanEvaluation
PlanImplementatio
n
Closure
R
eview
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Types of Planning Strategic planning Business planning Project planning Program planning
Basic Strategic Planning Issue-Based or Goals-Based
Strategic PlanningAlignment ModelScenario PlanningOrganic (or Self-Organizing)Planning
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Strategic Planning
Process to establish priorities on what you willaccomplish in the future
Forces you to make choices on what you will doand what you will not do
Pulls the entire organization together around asingle game plan for execution
Broad outline on where resources will getallocated
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Why Strategic Planning
If you fail to plan, then you plan to fail beproactive about the future
Strategic planning improves performance
Counter excessive inward and short-term thinking
Solve major issues at a macro level Communicate to everyone what is most important
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Developing a Plan
Mission (Core purpose of your organization) Vision (What is your organizations vision of
excellence)
Values (principles, standards, and actionsconsidered worthwhile in the organization)
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Questions to Ask
Where are we now? (Assessment) Where do we need to be? (Gap / Future End State)
How will we close the gap (Strategic Plan)
How will we monitor our progress (Balanced
Scorecard)
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Strategic Plan Model
EnvironmentalScan
Assessment
BackgroundInformation
SituationalAnalysis
SWOT Strengths,Weaknesses,Opportunities,Threats
Situation Past,Present andFuture
SignificantIssues
Align / Fit withCapabilities
Mission &Vision
Values /GuidingPrinciples
Major Goals
SpecificObjectives
PerformanceMeasurement
Targets /Standards ofPerformance
Initiatives andProjects
Baseline Components
PerformanceManagement
Review Progress BalancedScorecard
Take CorrectiveActions
Down toSpecifics
Evaluate
Gaps Action Plans Feedbackupstream revise plans
Where we areWhere we wantto be How we will
do it
How are wedoing
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Plan Development Assessment Environmental Scan
gathering of information that concerns theorganizations environments
analysis and interpretation of this information
application of this analyzed information in decision
making
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Plan Development Assessment
SWOT Analysis Strengths What are some internal positive things about your
organization? What does the community see as your strengths?
Weaknesses What are some weaknesses in organization? What does the community see as your weaknesses?
Opportunities What are some opportunities in your community or region?
What are some emerging trends?
Threats What are some provincial or national issues facing the
organization?
What are some technology issues that face the organization?
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Plan Development Baseline
Puts everything about the organization into asingle context for comparability and planning
Descriptive about the company as well as theoverall environment
Include information about relationships customers, suppliers, partners
Preferred format is the Organizational Profile
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Plan Development Baseline
Operating Environment Products and Services Suppliers, DeliveryChannels, Contracts, Arrangements, . . .
Organizational Culture Barriers, Leadership,Communication, Cohesiveness
Workforce Productivity Skill levels, diversity,contractors, aging workforce
Infrastructure Systems, technology, facilities
Regulatory Product / Service Regulation, ISO
Quality Standards, Safety, Environmental, . . .
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Plan Development Baseline
Business Relationships Organizational Structure Business Units, Functions,Board, Management Layers
Customer Relationships Requirements, Satisfaction,Loyalty, Expectations
Value Chain Relationship between everyone in the valuechain
Partner Relationships Alliances, long-term suppliers,customer partnerships, . . .
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Gap Analysis
Baseline / OrgProfile
Challenges / SWOT
Gap = Basis for Long-TermStrategic Plan
Gap = Basis for Long-TermStrategic Plan
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Plan Development Components
Mission
Vision
Goals
Objectives
Measures
Why we exist
What we want to be
Indicators andMonitors of success
Desired level ofperformance andtimelines
Planned Actions to
Achieve Objectives
O1 O2
AI1 AI2 AI3
M1 M2 M3
T1 T1 T1
Specific outcomes expressed inmeasurable terms (NOTactivities)
Strategic Plan
Action Plans
Evaluate Progress
Targets
Initiatives
What we must achieve to be successful
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Plan Development Components
Mission: Captures the essence of why the organizationexists Who we are, what we do
Explains the basic needs that you fulfill
Expresses the core values of the organization Should be brief and to the point
Easy to understand
If possible, try to convey the unique nature of
your organization and the role it plays thatdifferentiates it from others
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Plan Development Components
Vision: How the organization wants to be perceived inthe future what success looks like
An expression of the desired end state
Challenges everyone to reach for somethingsignificant inspires a compelling future
Provides a long-term focus for the entireorganization
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Plan Development Components
Goals: Describes a future end-state desired outcomethat is supportive of the mission and vision.
Shapes the way ahead in actionable terms.
Best applied where there are clear choices aboutthe future.
Puts strategic focus into the organization specificownership of the goal should be assigned tosomeone within the organization.
May not work well where things are changing fast
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Plan Development Components
Objectives: Relevant - directly supports the goal Compels the organization into action
Specific enough so we can quantify and measure theresults
Simple and easy to understand
Realistic and attainable
Conveys responsibility and ownership
Acceptable to those who must execute
May need several objectives to meet a goal
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Goals Vs. Objectives
GOALS OBJECTIVES
Very short statement, fewwords
Longer statement, moredescriptive
Broad in scope Narrow in scope
Directly relates to the MissionStatement
Indirectly relates to the MissionStatement
Covers long time period
(such as 10 years)
Covers short time period (such 1
year budget cycle)
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Plan Development Down to Specifics
Action Plans: The Action Plan identifies the specific steps that willbe taken to achieve the initiatives and strategicobjectives where the rubber meets the road
Each Initiative has a supporting Action Plan(s)
attached to it Action Plans are geared toward operations,
procedures, and processes
They describe who does what, when it will be
completed, and how the organization knows whensteps are completed
Like Initiatives, Action Plans require the monitoring ofprogress on Objectives, for which measures areneeded
Requires that you have answered the Who, What, How, Where,and When questions related to the project or initiative that
drives strategic execution
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Plan Development Down to Specifics
Targets: For each measurement, you should have at leastone target
Targets should stretch the organization to higherlevels of performance
Incremental improvements over currentperformance can be used to establish your targets
Targets put focus on your strategy
When you reach your targets, you have
successfully executed your strategy
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Plan Development Evaluate
Continuous support through BalancedScorecard
Performance Measurement
Link budgets to strategic plans
The worlds best Strategic Plan will fail if it is notadequately resourced through the budgetingprocess
Strategic Plans cannot succeed without people,time, money, and other key resources
Aligning resources validates that initiatives andaction plans comprising the strategic plan supportthe strategic objectives
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Plan Development Evaluate Every Action Plan should identify the following:
The people resources needed to succeed
The time resources needed to succeed
The money resources needed to succeedThe physical resources (facilities, technology,etc.) needed to succeed
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Some Final Thoughts
Integrate all components from the top to thebottom: Vision > Mission > Goals > Objectives> Measures > Targets > Initiatives > ActionPlans > Budgets.
Get Early Wins (Quick Kills) to create somemomentum
Seek external expertise (where possible andpermissible)
Articulate your requirements to seniorleadership if they are really serious aboutstrategic execution
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