Download - Final Stratefic Plnning
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STRATEGIC PLANNING
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What is Strategic Planning?
Process to establish priorities on what you will
accomplish in the future
Forces you to make choices on what you will do
and what you will not do
Pulls the entire organization together around a
single game plan for execution
Broad outline on where resources will get
allocated
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Matt H. Evans,[email protected]
Why do Strategic Planning?
If you fail to plan, then you plan to fail be
proactive 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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FUNDAMENTAL 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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Matt H. Evans,[email protected]
A Good Strategic Plan should . . .
Address critical performance issues
Create the right balance between what the
organization is capable of doing vs. what the
organization would like to do Cover a sufficient time period to close the
performance gap
Visionary convey a desired future end state
Flexible allow and accommodate change Guide decision making at lower levels
operational, tactical, individual
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Matt H. Evans,[email protected]
Strategic Planning Model
A B C D E
Environmental Scan
Assessment
Background
Information
Situational Analysis
SWOTStrengths,
Weaknesses,
Opportunities,
Threats
Situation Past,
Present and Future
Significant Issues
Align / Fit with
Capabilities
Mission & Vision
Values / Guiding
Principles
Major Goals
Specific Objectives
Performance
Measurement
Targets / Standards of
Performance
Initiatives and
Projects
Baseline Components
Performance
Management
Review Progress
Balanced Scorecard
Take Corrective
Actions
Down to Specifics Evaluate
Where we are Where we want to be How we will do it How are we doing
Gaps Action Plans Feedback upstreamrevise plans
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Matt H. Evans,[email protected]
Assessment
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Matt H. Evans,[email protected]
Assessment Model:
S W O T
Assessment
External Assessment: Marketplace,competitors, social trends, technology,
regulatory environment, economic cycles .
Internal Assessment: Organizational assets,
resources, people, culture, systems,
partnerships, suppliers, . . .
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Matt H. Evans,[email protected]
Baseline
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Matt H. Evans,[email protected]
Why create a baseline?Baseline
Puts everything about the organization into a
single context for comparability and planning
Descriptive about the company as well as the
overall environment Include information about relationships
customers, suppliers, partners, . . .
Preferred format is the Organizational Profile
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Matt H. Evans,[email protected]
Components
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Matt H. Evans,[email protected]
Major Components of the
Strategic Plan / Down to Action
Components
Mission
Vision
Goals
Objectives
Measures
Why we exist
What we want to be
Indicators and
Monitors of success
Desired level of performance
and timelines
Planned Actions toAchieve Objectives
O1 O2
AI1 AI2 AI3
M1 M2 M3
T1 T1 T1
Specific outcomes expressed in
measurable terms (NOT activities)
Strategic Plan
Action Plans
Evaluate Progress
Targets
Initiatives
What we must achieve to be successful
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Matt H. Evans,[email protected]
Down to Specifics
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Matt H. Evans,[email protected]
What are Action Plans?
Objectives
Initiatives
Action Plans
The Action Plan identifies the specific steps that will be taken to achieve the initiatives
and strategic objectives 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 organizationknows when steps are completed
Like Initiatives, Action Plans require the monitoring of progress on Objectives, for
which measures are needed
Down toSpecifics
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Matt H. Evans,[email protected]
Evaluate
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Matt H. Evans,[email protected]
Continuous Feedback
through the Balanced Scorecard
Evaluate
Cascade and align from the top to create aStrategic Management System.
Use the Balanced Scorecard framework toorganize and report actionable components.
Use the Scorecard for managing the executionof your strategy.
Scorecard forces you to look at differentperspectives and take into account cause-
effect relationships (lead and lag indicators) Improves how you communicate your strategy
critical to execution.
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ADVANTAGES
Asks and answers questions of key importance to theorganization
Provides a framework for decision making throughout
the organization Reveals and clarifies future opportunities and threats
Sets specific objectives for achievement
Serves as a channel of communication
Develops a team which is focused on the organization'sfuture
Provides managerial training
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LIMITATIONS
The future is uncertain and might differ
substantially from expectations on which parts
of the plan may be built.
Planning is difficult, messy, hard work.
Planning is expensive - in time and money.