final stratefic plnning

8/4/2019 Final Stratefic Plnning

1/19

STRATEGIC PLANNING


2/19

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


3/19

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


4/19

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)


5/19


6/19


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


7/19


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


8/19


Assessment


9/19


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, . . .


10/19


Baseline


11/19


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


12/19


Components


13/19


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


14/19


Down to Specifics


15/19


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


16/19


Evaluate


17/19


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.


18/19

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


19/19

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.

final stratefic plnning

Documents