theory & framework strategic planning. agenda demystify strategic planning generic strategic...
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Theory & Framework
Strategic Planning
Agenda
•Demystify Strategic Planning
•Generic Strategic Planning Framework
•Translating strategy to operations and action
•Other frameworks
•RoadTek Strategic Plan 2005 – 2008
•Workshop
Definition “Strategy is the direction and scope of an organisation over the long term...” (Johnson G, & Scholes K)
•Serves as a framework for decision making & for seeking support / approval
•Provides a basis for more detailed planning
•Is a communication device to our stakeholders > shareholder, customers, staff
•Serves as a reference point for performance monitoring
•Stimulates change
Why Stimulate Change?
The problem is never how to get, new innovative thoughts into your mind, but how to get the old ones out. Dee Hock, creator of Visa
Some Essential Points
• Over the horizon 2 to 5 years
• Focus on matters of strategic importance
• Realistic, detached & critical approach by senior management
• Distinguish between cause & effect
Pre-requisite
Environmental analysis to:
•Place the organisation in a current state business environment as a launching point to the future state
•Produce SWOT analysis
•Produce Risk analysis
Engineering Construction Activity - QueenslandValue of Work Done - 2002/03 Prices
79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09
$ Million
300
400
500
600
800
1500
2000
3000
4000
5000
6000
8000
1000
Forecast
Private Contract Proportion of Total Public Sector
79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09
Per Cent
10
20
30
40
50Forecast
Total for thePublic Sector
Total for thePrivate Sector
Private Contractfor the
Public Sector
Total PrivateContract
Total EngineeringConstruction
Year Ended June Source: BIS Shrapnel, ABS data
Courtesy
BIS Shrapnel
Key Elements of a Strategic Plan
• Vision
• Mission statement
• Values
• Objectives
• Strategies
• Measures
RoadTek Positioning Statement
Tips to the Process (1)
•The framework is a logical linear process but it will be iterative
•Use hindsight when strategic planning
•Assess the current position of your vision
•How have the mission and objectives changed?
•How have we performed
•How has the business environment changed?
Tips to the Process (2)
•Drill down on your business e.g.
•Review financial performance
•Review project performance
•Employ cause and effect technique
•The SWOT is the key to developing business strategy
•Keep the strategic plan short & simple
Translating Strategy to Operations
Business Plans
RoadTekStrategic Plan
Department of Main Roads Strategic Plan
Roads ConnectingQueenslanders
Achievement Plans
Business Plans
Queensland TransportStrategic Plan
Integrated RegionalTransport Plan
Portfolio Priorities
GovernmentPriorities
Individual Performance Management Plans
Operational (Business) Plan
•Short term document flowing on from Strat Plan
•Is tactical, focused, implementable & measurable
•Is made up of various sub-plans
•Very detailed, prescriptive information & activities showing accountabilities and completion dates
Other Strategic Frameworks
•Balanced Scorecard
•Logical Framework
•Diagnostic Flowchart
Logical Framework Process
Top Down Logic
GOAL
ACTIVITIES
OUTPUTS
PURPOSE
In order to
In order to
In order to
GOAL
PURPOSE
OUTPUTS
ACTIVITIES
Bottom Up Logic
If
Then If
ThenIf
Then
Logical Framework ExampleGoal – Sustainable Business
Purpose – Grow external sales
Output
1. No. of external customers is increased
2. Proportion of external revenue to total revenue grows
Purpose is the causal effect of the outputs
Activities
1. Engage business development officers
2. GM negotiate SLAs with other agency GMs
Workshop
•5 x 5 Groups
•Doing SWOT analysis
•If time - develop strategies
Elements of a SWOT
Strengths
Weaknesses
Opportunities
Threats
Build on Strengths
Resolve Weaknesses
Exploit Opportunities
Avoid Threats
Workshop Projects
•Duplication of Gateway + assc. 8 laning (DCM)
•Brisbane City Tunnels (BOOT)
•Any RoadTek projects?
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