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    Fresh Thinking Capital Pty Ltd 2008 [email protected] 1

    DEFINING THE STRATEGIC PLANNINGPROCESS:

    A TOOLKIT FOR EFFECTIVE

    IMPLEMENTATION

    PREPARED BY

    FRESH THINKING CAPITAL PTY LTD

    396 Florida RoadFearie Glen

    Pretoria East0043

    Tel : 012-991-4490

    Fax: 086-610-7174Email: [email protected]

    2008

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    DEFINING THE STRATEGIC PLANNING PROCESS

    Our aim in this Strategic Planning Work Book is to give you the tools to whichwill assist you in developing your own Organisation's strategic plan.

    TABLE OF CONTENT

    1 Chapter One - Benefits & Limitations of Strategic Planning ............................ 31.1 What Is Strategic Planning? ............................................................................ 31.2 What Are Its Benefits? ..................................................................................... 41.3 What Strategic Planning Is And Is Not .......................................................... 5

    2 Chapter Two - Debunking Eight Strategic Planning Myths ................................ 63 Chapter Three Overview of the Strategic Planning Model ............................. 7

    3.1 Meaning of the Strategic Plan........................................................................ 73.2 Strategic Planning Team ................................................................................. 7

    3.3 Thoughts About the Strategic Planning Process ......................................... 83.3.1 Openness.................................................................................................... 83.3.2 Iterative ..................................................................................................... 83.3.3 Time commitment.................................................................................... 83.3.4 Big thoughts .............................................................................................. 8

    4 Chapter Four Strategic Planning Bedrock: Vision ............................................ 95 Chapter Five Strategic Planning Bedrock: Values ......................................... 106 Chapter Six Strategic Planning Bedrock: Mission........................................... 11

    6.1 What is Strategic Thinking? .......................................................................... 116.2 Clarifying Your Organization's Mission ........................................................ 11

    7 Chapter Seven Determining Organizational Driving Force ........................... 13

    8 Chapter Eight Organizational Strategy ............................................................ 149 Chapter Nine - Situational Assessment .............................................................. 1510 Chapter Ten - Critical Issues Analysis............................................................. 1711 Chapter Eleven Defining Strategic Objectives ........................................... 18

    11.1 Defining Strategic Objectives ...................................................................... 1811.2 Developing Your Strategic Objectives ........................................................ 18

    12 Chapter Twelve - Strategic Action Milestones .............................................. 2012.1 There is one SAM summary for each SO ..................................................... 2012.2 Responsible person ........................................................................................ 2012.3 Schedule .......................................................................................................... 2012.4 Resources required........................................................................................ 21

    13 Chapter Thirteen - What to Do When the Strategic Planning is Done? .... 2213.1 Implement ....................................................................................................... 2213.2 Communicate .................................................................................................. 2213.3 Monitor. ........................................................................................................... 2213.4 Update. ............................................................................................................ 23

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    1Chapter One - Benefits &Limitations of Strategic Planning

    Our goal in providing you with the Strategic Planning Tool kit is to allow yousketch a template for your own organization's strategic plan.

    Strategic planning is a powerful tool for laying out the template or roadmap forfuture success and should be in every manager's toolkit.

    In the chapters that follow we shall look at:

    What strategic planning is and is not Organizing the strategic planning process Who does it and how How long it takes End products Drafting and refining the plan Centrality of values, vision, mission & strategy Doing a SLOT situational analysis (strengths, limitations, opportunities,threats) Setting the strategic objectives (SO) which define the future state of theorganization Developing strategic action plans (SAPs) to lead to the achievement of theseSOs Communicating the completed plan to the organization Implementing and monitoring the plan Reviewing progress and revising the plan

    1.1 What Is Strategic Planning?Strategic planning is a disciplined, creative process for determining how totake your organization from where it is today to where you wish it to be inthe future.

    Strategic planning is fundamentally a decision making process, based on askingsimple (but deep) questions, analyzing the range of answers, and choosingamong them:

    What do we do? Where are we going?Where are we now? How will we get there?

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    How did we get here? When will we get there?Why are we in business? What will it cost?

    This process encompasses the entire spectrum of issues an organization faces,ranging from the big ones of who you are, what you do, and what your

    corporate values are to the smaller but equally important ones that connectthe focus on the future with the work that must be performed soon to movethe organization forward.

    1.2 What Are Its Benefits?The benefits of strategic planning are manifold since it:

    1) Asks and answers questions of key importance to the organization2) Provides a framework for decision making throughout the organization3) Reveals and clarifies future opportunities and threats4) Sets specific objectives for achievement5) Provides a basis for measuring performance6) Serves as a channel of communication7) Develops a team which is focused on the organization's future8) Provides managerial trainingThe above benefits can be encapsulated in a single statement:

    Strategic planning aligns the total organization people, processes, andresources with a clear, compelling, and desired future state.

    What Are Its Limitations?

    While the benefits are manifold, unfortunately so its limitations:

    The future is uncertain and might differ substantially from expectations onwhich parts of the plan may be built. There will be internal resistance to formal planning due to multiple factors:

    a. Information flows, decision making, and power relationships willbe perturbed.

    b. Conflicts within organization are exposed.c. Current operating problems tend to drive out long-term planning

    efforts.d. There are risks and fears of failure.e. New demands will be placed on managers and staff.f. Most people wish to avoid uncertainty.

    Planning is difficult, messy, hard work. Planning is expensive - in time and money. The completed plan limits choices and activities for the organization in thefuture.

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    1.3 What Strategic Planning Is And Is Not"Strategic planning determines where your organization should be going so thatall organizational efforts can be pointed in that direction."

    STRATEGIC PLANNING IS STRATEGIC PLANNING IS NOTHuman-basedPeople's mindsPrinciplesCollective visionCommitment to planningDone by executivesRisk enhancerDecision orientedDone in openMessy & controversial

    ProactiveDeliberateFocusedWay of lifeRoadmap to the futureCreative

    Process-basedSet of rulesPlatitudesPersonal visionCommitment to planDone by plannersRisk eliminatorTask orientedDone behind closed doorsSmooth & harmonious

    ReactiveQuickDiffuseSingle activityNext year's business planMandate

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    2Chapter Two - Debunking EightStrategic Planning Myths

    Below are brief summaries of the eight myths.

    Myth 1. You need a documented plan. The value of planning is not the planitself, but rather in developing a common language, articulating assumptions,and learning to make decisions together.

    Myth 2. A plan can describe all the things that must be done to succeed.Strategy sets the direction and context for subsequent actions and decisions byall in order to close the gap between where the organization is now and whereit would like to be.

    Myth 3. Strategic planning is a formal, analytical process. Strategy isinherently a creative process, dealing with complexity and ambiguity. The planis never finished - it is a living document.

    Myth 4. Plans are built solely on facts and hard data. A strategy is a set ofassumptions about how the world behaves. Facts and hard data are used totest its validity.

    Myth 5. The planning cycle runs on your financial calendar. While planningmay be part of an organization's annual cycle, whenever major events and

    changes occur, the plan should be immediately reexamined to test for thecontinued validity of its underlying assumptions.

    Myth 6. The work is over when the plan is done. Strategy must becommunicated, put into action, and integrated with daily decision making.

    Myth 7. There is one right strategy. Strategy is about identifying and creatingchoices through conversations between stakeholders.

    Myth 8. There is one best process for building strategies. The key tosuccessful planning is fitting the tools and techniques of planning with the

    organization's culture, capabilities, business environment, and desired outcomeand then sticking with those tools and techniques for an extended period.

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    3Chapter Three Overview of theStrategic Planning Model

    We outline a basic strategic planning model, suggest the composition of theplanning team, and comment on the process.

    The strategic planning model we have found useful for most organizations hasthree phases:

    1. Strategic thinking concentrates on establishing the planning bedrock ofvalues, vision, and mission and on setting the grand strategy. Thisphase encompasses 40-50% of the planning effort. Resolving these "big"issues at the start gives a solid basis for smooth planning and for dealingwith strategic issues as they arise during implementation.

    2. Strategic planning assesses the Organization's current ability to reach itsdesired future in light of its competitive landscape, identifies the criticalissues it faces, sets strategic objectives to address these issues, andoutlines strategic action plans to realize these objectives.

    3. Tactical planning focuses on the specifics of implementation andexplicitly connects people and budgets with the strategic action plans.This phase is virtually synonymous with the annual planning andbudgeting cycle.

    3.1 Meaning of the Strategic PlanThe plan focuses on the future. It provides a common direction for everyone,is an effective recruiting tool, can be shared with clients and prospects formarketing and with suppliers for effectiveness, and gives you the ability totrack progress.

    A strategic plan is a living document, not something to be thrown on a shelf.

    3.2 Strategic Planning TeamThe ideal size of a strategic planning team is 6-12 members plus an outsidefacilitator. Each team member should be chosen to represent different

    segments of the Organization, not just direct reports to the Director General.All members should have the respect of their peers. Senior, middle, and frontline management should be represented. Members do not wear their"departmental hats;" they wear the "Organization hat" during the planningdeliberations.

    One member, probably a younger one on the "fast track," should be chargedwith handling the internal logistical details for the planning process.

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    An outside facilitator should be used to bring experience in the planningprocess, to give perspective on the future, and to allow all team members towork as equals.

    The Chief Director has a prominent role in the planning team, sets the context,

    endorses the result, but remains enough in the background that the ideas ofothers may emerge. This is not an easy task for most Chief Director/Head's andis another compelling reason for using a skilled outside facilitator.

    3.3 Thoughts About the Strategic Planning Process3.3.1OpennessThe strategic planning process should be an open one within the Department.While it is usually not practical to have everyone who wishes to attend theplanning meetings, the ongoing results should be available to all employees, for

    example, via the Organization's intranet, through broadcast e-mail, or simply aloose-leaf binder at the receptionist's desk. Critiques and suggestions shouldbe welcomed from all.

    3.3.2IterativeWhile there is an underlying logic and flow to the strategic planning process,the plain fact is that planning is a highly iterative process. Almost at everystep, the team must revisit earlier steps to ensure consistency and reviseaccordingly.

    3.3.3Time commitmentFor a typical Organization, 3-6 months is required to develop a strategic plan,with 6-10 all-day meetings and a couple two-day retreats. Team membersmust also work on the plan between meetings, so the Director must ensurethey are given the "space" to permit their concentrated efforts and toencourage their personal commitment to both the process and the end

    3.3.4Big thoughtsIf there is ever a time to decouple everyone from the everyday concerns of

    running the normal business and to think truly big thoughts, this is the time todo it. The Chief Director and outside facilitator both have an obligation to seethis is done by all.

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    4Chapter Four Strategic PlanningBedrock: Vision

    Clarifying your Organization's vision creates a lodestar to lock onto, inspireyour efforts, and give meaning to your very existence.

    Strategic thinking - the first of three phases in the strategic planning model -provides the basis for subsequent planning and guides you in dealing withstrategic issues as they arise later. It embraces the planning bedrock of vision,values, and mission and the grand strategy.

    Vision is the first element in the planning bedrock. It is the fundamentalreason your Organization exists - the why of your being. Vision is crucial inlaying a solid foundation to guide the future development of the Organization.

    Vision is the concrete statement of your ultimate dreams for theOrganization or for the world that you can impact through it.

    Clarifying one's vision is a deceptively difficult task. Ideally, it should be:

    Future orientedEasy to understand and rememberReflect your Organization's uniquenessAmbitiousCreative

    InspiringBrief - try for ten words or less.

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    5Chapter Five Strategic PlanningBedrock: Values

    Ultimately your Organization rises or falls by the values you live by in allcircumstances.

    Strategic thinking - the first of three phases in the strategic planning model -provides the basis for subsequent planning and guides you in dealing withstrategic issues as they arise later. It embraces the planning bedrock of vision,values, and mission and the grand strategy.

    Values are the second element in the planning bedrock. They reflect yourcharacter and your corporate culture - the how you do what you do. Values

    are long-lasting. They affect all that you do.

    Values are your convictions on how business is to be conducted and peopleare to be treated, inside and outside the Organization.

    Organizations are like people. The good ones stand for something positive andknow why they stand for it. They live out their values consistently day to day,impacting others by their example. Ideally, values should be:

    Few in numberShared by all

    InspiringClearly understood

    It is relatively easy to develop a list of important values. It is hard to home inon the few that make a difference in your Organization. It is harder still tocapture the nuances these values evoke in the minds of your employees.

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    6Chapter Six Strategic PlanningBedrock: Mission

    Your Organization's mission clarifies what you do and guides your everydayefforts and decision making.

    6.1 What is Strategic Thinking?Strategic thinking - the first of three phases in the strategic planning model -provides the basis for subsequent planning and guides you in dealing withstrategic issues as they arise later. It embraces the planning bedrock of vision,values, and mission and the grand strategy.

    Mission is the third element in the planning bedrock. It translates your vision

    and values into something tangible - the what of your existence. Mission guidesyour everyday efforts and is the touchstone for decision making.

    Mission is the products or services you provide, for whom, where, and how.

    Clarifying your mission is vitally important, precisely because it forces you tostate unambiguously what you do. Equally important, it also defines what youdo not do!

    Ideally, your mission should be:

    FocusedClearSpecificDistinctiveShort

    6.2 Clarifying Your Organization's MissionPerhaps the easiest way to put your arms around what your mission should be isby answering a series of questions.

    1. What business(es) are we in?2. What business(es) could we be in?3. What business(es) should we be in?4. What business(es) should we not be in?5. What is unique or distinctive about us?6. Who are and should be our principal customers, clients, or users?7. What are and should be our principal market segments?8. What are and should be our principal products and services?

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    9. How do we and should we distribute our products and services?10.How has our business changed in the last three to five years?11.How has our industry changed in the last three to five years?12.How is our business likely to change in the next three to five years?13.How is our industry likely to change in the next three to five years?14.

    What are the key measures of our success and how do we use them?

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    7Chapter Seven DeterminingOrganizational Driving Force

    Your Organization's driving force is the dominant factor influencing yourdecision making and central to setting your strategy.

    A powerful technique for determining your organizations strategy (theultimate goal of strategic planning) is to consider its driving force. They definethe driving force as the primary determiner of the scope of future productsand markets.

    Your driving force is the dominant factor that most influences the making ofmajor decisions. In our own strategic planning engagements, the following 8driving forces seem to cover most organizations, with examples of

    organizations allied with each driving force.

    1. Products offered produces specific products (things) for its markets.2. Services offered delivers specific services (human efforts) for its

    market.3. Market needs focuses on meeting the needs of specific markets.4. Customer needs focuses on meeting the needs of specific set of

    customers.5. Technology applies its technological capabilities in innovative products

    or services.6. Human resources leverages its employees specific qualities, skills, or

    training.7. Service capability leverages the depth or uniqueness of its employees.8. Image seeks to maintain a specific organizational image within its

    markets and the products or services it produces.

    It is a rare Organization that can look at the above list and say, "Of course, it'sobvious that our driving force is ___." The discussion might start that way, butyou can bet that someone else will jump in to throw cold water on that drivingforce and suggest another. Indeed, our experience is that some of the richest,most vigorous, and deeply contentious debates in the entire planning processtake place when the planning team tries to identify their driving force.

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    8Chapter Eight OrganizationalStrategy

    Your organizations strategy is the direction you choose to follow to reachyour vision and is central to all business decisions.

    Formulation of your strategy is the last of the four "big" statements thatconstitute the strategic thinking portion of strategic planning. They set thestage for the more analytical portion of planning and ultimately for the settingof strategic objectives.

    Let's review the three elements of the planning bedrock first:

    Vision - the concrete statement of your ultimate dreams for theOrganization or for the world that you can impact through it. Values - your convictions on how business is to be conducted and people areto be treated, inside and outside the Organization. Mission - the products or services you provide, for whom, where, and how.It is strategy that connects the present to the future. Strategy is a direction, apathway, chosen from amongst many possibilities. It is intimately connectedto, indeed, it is based on your planning bedrock:

    Strategy is the particular means by which you seek to fulfill your mission

    and to move toward your vision, within the context of your values.

    Your strategy flows from your driving force. Your driving force is the dominantfactor in making your major decisions. The secondary or tertiary driving forcescan legitimately be considered as decision influencers and can find their wayinto your strategy statement if they are strong enough.

    The driving force analysis is not the only way to determine strategy, but itcertainly is the most thorough and analytical, even if only to confirm theobvious. Experience, however, suggests that the "obvious" isn't always so. Theextra time expended to be more analytical is usually worthwhile.

    Even with a sure confidence in the validity of your driving force, it is still amatter of great creativity to select a strategy that is consistent with yourvision, values, and mission.

    In future Chapters, we'll take a detailed look at your internal and externalinfluences, so that you can determine which factors are most important insetting your strategic objectives.

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    9Chapter Nine - SituationalAssessment

    Once the big issues of vision, values, mission, and strategy have beendetermined, it is time to assess the internal and external factors affectingyour business.

    A situational assessment requires a hard-headed look at all the factorsaffecting the future success of your business, as they relate to your vision,values, mission, and strategy. Once these are identified, you then select thosefactors which are most critical and develop long-term objectives to addressthem.

    There are several approaches we could use for the situational assessment. In

    this Chapter, however, we will follow the SLOT assessment, the most popularsituational assessment method and the most highly structured. It looks at allthe positive and negative factors inside and outside your organization thataffect your success. By definition, strengths and limitations are considered tobe internal factors, over which you have some measure of control. Also bydefinition, opportunities and threats are considered to be external factors,over which you have essentially no control..

    Internal factors: External factors:Strengths OpportunitiesLimitations/Weaknesses Threats

    Strengths are the qualities that enable you to fulfill your organizationsmission. They can be either tangible or intangible. They are what you do well,the qualities your employees possess (individually and as a team), and theunique characteristics that give your organization its coherence. They fall intofour broad categories:

    Human competenciesProducts & servicesProcess capabilitiesFinancial resources

    Limitations/Weaknesses are the qualities that keep you from fulfilling yourmission and reaching your full potential. They are those activities, services, orother factors that do not meet the standards you feel should be met. They arecontrollable. You want to eliminate or minimize them. They fall into the samefour broad categories as above.

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    Opportunities are presented by the environment within which yourorganization operates. Selecting the targets that will best serve your clientswhile bringing you the results you desire is not an easy task. Developing plansto address opportunities begins with a list of those available to you. They fallinto four broad categories:

    Markets/customersCompetitionIndustry/governmentTechnology

    Threats are external to your organization. They compound your vulnerabilitywhen they relate to your limitations. They are not controllable. When athreat comes, your stability and survival can be at stake! They fall into thesame four broad categories as above.

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    10Chapter Ten - Critical IssuesAnalysis

    A simple process for selecting your 5-7 critical issues to focus your strategicplan is presented.

    Last time we used the SWOT (strengths, limitations, opportunities, threats)methodology to conduct a situational assessment. It's common to produce manydozens of issues that need addressing, variations of which may be found onseveral of the four categories.

    You must now winnow these many dozens of issues to a half dozen criticalissues in order to tighten the focus of your strategic plan. If you select toomany, this focus is severely diluted and subsequent actions will bear less fruit.

    Step 1. Discuss

    At this stage there are probably 10 or 15 sheets of butcher paper stuck on thewalls full of issues for all to see. Discuss the similarities and contrasts of theissues listed to ensure everyone understands what is behind each. This willusually lead to some consolidation or restatement of issues.

    Step 2. Stabilize the critical issues

    The facilitator restates the 5-7 critical issues and stresses that all subsequent

    planning will be done solely around these issues. No other issues will be thesubject of the Organization's strategic focus, nor will they be discussed duringthe remainder of the strategic planning process.

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    11Chapter Eleven Defining StrategicObjectives

    The strategic planning tire meets the road when you develop 6-8 strategicobjectives to pursue in the coming years.

    11.1 Defining Strategic ObjectivesYou have come a long way in your planning process and are nearing the finishline. In the last Chapter you identified 5-7 critical issues facing yourOrganization. In this Chapter you will develop specific, measurable strategicobjectives to pursue in the coming years which address these critical issues.Most authors refer to these as "long-term objectives,".

    Strategic objectives typically, though not always, have multi-year timeframesfor their achievement and are multi-functional, i.e. they require concertedefforts by people from many different parts of your Organization.

    Strategic objectives (SO's) begin with such words as "to have," "to be," "tobecome," or "to achieve" and end with a specific year by which the SO will bemet.

    11.2 Developing Your Strategic ObjectivesYou develop your strategic with reference solely to the critical issues you

    identified in the last Chapter. Begin with the highest priority critical issue anddiscuss ways to address it. When your ideas begin to gel, write an SO in theabove format. Make them positive in concept and wording. Focus on theachievement to come, not on the shortcoming or problem in the present.

    Since you might draft two or three SO's for each critical issue, you can easilyend up with 15-25 potential SO's. Once again, you must prioritize them andchoose 6-8 SO's to drive the future development of your Organization. Thisdiscussion and prioritization process is markedly similar to the one you used insettling on your critical issues, so we advise following that technique.

    When you have completed this prioritization, you may well find that one ormore of the critical issues has no associated strategic objective. Don't worry!If you have followed the process well, then the 6-8 SO's you chose are the bestones. Resist with a passion the temptation to add more SO's so that all criticalissues are addressed, which can easily balloon the SO's to a dozen or more.There is no quicker way to kill the vitality of a strategic plan than this! Theonly way for SO's to be special and to serve as focal points for your

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    Organization's development is to have few of them. Otherwise, efforts arediluted, and achievements are diminished.

    We suggest validating your SO's against six criteria:

    1. Is it measurable or verifiable?2. Is it achievable or feasible?3. Is it flexible or adaptable?4. Is it consistent with the rest of your strategic plan.5. Does it stretch your people without breaking them?6. Is it clear, easy to understand, and inviting to achieve?

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    12Chapter Twelve - Strategic ActionMilestones

    The strategic action milestones link your objectives to your people and yourresources.

    Strategic planning sets the context for the organization to do certain things.These are ultimately encapsulated in strategic action milestone summaries(SAMs) which identify the 4-8 milestones major events, phases, oraccomplishments that must take place in an orderly fashion for the SOs to bemet, who will be responsible for each, when they are to be accomplished, and

    what they will cost in both time and money. SAMs provide the final link frommission, strategy, and objectives to two vitally important factors:

    Development and deployment of your peopleExpenditure of financial resources

    12.1 There is one SAM summary for each SOWith most of our clients, a Strategic Action Milestone Summary templatebased on a simple spreadsheet format helps to visualize and organize the flowof effort and resources to achieve each strategic objective. Some

    organizations who routinely use project management software find a projectmanagement template better meets their needs. (We would be happy toprovide these templates to anyone interested.)

    12.2 Responsible personWhile each milestone (by definition) represents a significant accomplishmentand will in all likelihood involve many people, one person is to be charged withorchestrating its achievement.

    12.3 ScheduleEach milestones achievement needs to be scheduled. In early drafts, onenormally targets quarters for starting and completing one. When all SAMshave been drafted, then the personnel and financial resource loading can bedetermined and adjusted accordingly.

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    12.4 Resources required.Capital resources are equipment, facilities, acquisitions, or other majorinvestments not covered in the normal budget. Operating resources are otherneeded monies not covered in the normal budget. Consultants and other

    outside service providers would fall under operating resources. Humanresources refer to the internal hours to complete the milestone. If staff mustbe added to the organization, their costs must be included in the operatingcolumn.

    Report progress to the person or, in some cases, the board or other policygroup that the responsible person will periodically report progress to andreceive support and resources from.

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    13Chapter Thirteen - What to DoWhen the Strategic Planning is

    Done?The objective of strategic planning is ultimately to act. Here's what toconsider as you roll out your plan for implementation.

    13.1 ImplementThis point seems to be obvious, but is terribly important. The hardest part ofstrategic planning is to do what you planned and to be alert to the inevitableopportunities for action that are clearly better than your plan (and to adjustyour plan accordingly).

    Implementation takes a certain amount of discipline, will, and change fromyour usual business practices. The aim is to have your strategy deeply andseamlessly embedded in your daily, weekly, and monthly routine. The planshould guide your activities, underlying all you do.

    13.2 CommunicateThe strategic plan should be shared with everyone in your Organization, as wellas with other stakeholders suppliers and subcontractors, customers andclients, alliance partners, community and government Organizations. Themore people who know what you are trying to achieve, the more ideas will

    bubble up, sometimes from unexpected places.

    Appendices which might include your strategic action milestones or budgetaryinformation are not part of the public document.

    13.3 Monitor.The monitoring process needs to be institutionalized as much as possible.Specific tasks should be part of the agenda of relevant management meetings.At the least, it should be part of a monthly agenda.

    A formal progress review should be held quarterly. This should include not onlythe obvious checking of progress against the plan, but also testing of theunderlying assumptions of the plan, the continued validity of the objectives,and unanticipated events which might need to be reflected in the plan.

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    13.4 Update.A more thorough review and update should take place annually, preferably in aretreat setting, so that it can provide the backdrop to the annual budgetprocess most organizations engage in. In effect, the strategic plan becomes a

    rolling three to five year plan. In practice, however, most organizations donot need to do a thorough update and republish the strategic plan annually.

    If well executed, a strategic plan starts becoming stale about the third yearand should be redone entirely from scratch. If this is not done, a planningmindset one of the most important products of the whole exercise will belost for a decade.

    When you redo your strategic plan, you will generally find little change in thebig issues your values, vision, mission, and grand strategy and even then,changes will tend to be in clarifying wording, rather than wholesale changing of

    concepts. Most changes will be in the critical issues and objectives, for, afterall, both the external world marches on and you have achieved many of theobjectives laid out in the plan.