week 3-strategic planning

Upload: dmugalloy

Post on 14-Apr-2018

219 views

Category:

Documents


1 download

TRANSCRIPT

  • 7/27/2019 Week 3-Strategic Planning

    1/24

    Strategic Planning

    What is strategic planning? A process ofdevelopingand maintaining

    consistency or fit between an organizations

    objectives and its resources and its changingexternal environment.

    110/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    2/24

    10/16/2013 2

  • 7/27/2019 Week 3-Strategic Planning

    3/24

    Why do Strategic Planning?

    Defines the organizations direction

    Communicates the overall corporate thinking

    Ensures effective use ofresources

    Serves as a framework fordecisions or forsecuring support

    Sets the framework formonitoring progress and

    evaluating results

    Stimulates change

    Avoids wastage of time and other resources

    310/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    4/24

    Components of the Strategic Planning

    Process

    Vision

    Mission

    Core values

    Objectives

    Strategies

    Policies

    Other components of the operatingenvironment

    410/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    5/24

    10/16/2013 5

  • 7/27/2019 Week 3-Strategic Planning

    6/24

    10/16/2013 6

  • 7/27/2019 Week 3-Strategic Planning

    7/24

    How does planning influence or guide

    change?

    It is the first step in initiating

    organizational change

    It helps to triggeror preempt change

    It helps to determine where an

    organization is headed, how it will get

    there and how it will know it actuallygotthere

    710/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    8/24

    Summary of Strategic Planning

    Stage Outputs

    Where are we? External environmental analysis Internal environmental analysis

    Where do we want to go? New vision, mission & core values

    Strategic objectives

    HOW do we get there? Strategies

    Results and operational plans

    Required resources

    What practical next steps

    must be made to getthere?

    Short-term budgets

    Short-term organizational,

    managerial, HR, etc. decisions and

    actions (Quick Wins)

    How do we monitor &evaluate the plan? M&E plan810/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    9/24

    10/16/2013 9

  • 7/27/2019 Week 3-Strategic Planning

    10/24

    Scenario Planning

    The process ofidentifying and linking variousresources to various opportunities in different

    configurations to understand different

    outcome /possibilities. Its Complex but important process in the

    organization.

    1010/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    11/24

    Scenario planning illustrated

    11

    Resourcecluster A

    Resourcecluster B

    Resourcecluster C

    Resourcecluster D

    Opportunity Pool

    Outcome COutcome BOutcome A Outcome D

    10/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    12/24

    Why does strategic planning sometimes fail?

    1. Failure to understand the reason for the plan- thecustomer

    2. Inability to predict environmentalreaction

    3. Over-estimation of resource competence

    4. Failure to coordinate

    5. Failure to obtainsenior management commitment

    6. Failure to obtain employee commitment7. Under-estimation oftime requirements

    8. Failure to follow theplan

    1210/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    13/24

    Strategies, Goals and Policies

    13

    Vision

    Medium termobjectives

    Mission

    StrategicObjectives

    Short termobjectives

    OperationalPolicies

    GrandStrategy

    TacticalPolicies

    StrategicPolicies

    TacticalStrategies

    OperationalStrategies

    C.Vs C.Vs

    10/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    14/24

    What is a Vision?

    Planning begins with a vision.

    Possible definitions:

    A mental perception of the kind of environment is tobe created within a broad time horizon

    A shared image of what an org.

    wants to become

    resonates with all & helps them feel proud, excited

    & part of something bigger

    It is the pursuit of the dream, share image of

    success or shared perception of the futureenvironment that really motivates people to worktogether

    1410/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    15/24

    Characteristics of an effective vision:

    Imaginable: Conveys a picture of what the future willlook like

    Desirable: Appeals to the long-term interests of

    employees, customers and stakeholders

    Feasible: Comprises realistic, attainable goals

    Focused: Is clear enough to provide guidance in

    decision making

    Flexible: Is general enough to allow individualinitiative and alternative responses in light of changing

    conditions

    Communicable: Is easy to communicate1510/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    16/24

    Become the company most known for changingthe worldwide image of Japanese products as

    being of poor quality. (Sony 1950s)

    An Apple on every desk

    (CEO, Apple Computers)

    To be a university of global excellence in

    training, research and innovation for

    development (JKUAT)16

    Examples of Visions

    10/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    17/24

    What is a Mission?

    An elaboration of the vision statement

    Defines thebasic reasons for the existence andhelps legitimize existence in society

    Common intentto which everyone in the

    organization can point captures the broadpurpose and functions of the

    organization

    Contents of a mission statement:

    Purpose statementWhy do we exist? What isthe ultimate result of our work?

    Business statementWhat activities do we do toaccomplish the purpose?

    1710/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    18/24

    To drive the integration of ICT in research and learningthrough quality, cost effective and efficient provision of ICT

    services and to be a key partner in the evolving informationsociety(Kenya Education and Research Network)

    To offer accessible quality training, research, and innovationin order to produce leaders in the fields of Agriculture,

    Engineering, Technology, Enterprise Development, BuiltEnvironment, Health and other Applied Sciences to suit theneeds of a dynamic world(JKUAT)

    18

    Examples of Mission statements:

    10/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    19/24

    What are Guiding Values?

    Other names: core values, corporate philosophy orguiding principles

    Definitions:

    values that guide principles for corporate actions and ethicalbehavior, define the character of relations with stakeholders,and set management style and corporate culture

    the organizations essential and enduring tenets - a small setof timeless guiding principles that require no external

    justification

    reflection of the deeply held values and tend to beindependent of the external environment

    1910/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    20/24

    CVs describe what organizational members:

    really care about

    hold dear

    makes them stick

    One way to determine whether a value is a CV is to ask:

    would this value continue to be supported if circumstanceschanged?

    Examples of CVs:

    integrity

    fairness and justiceexcellent and friendly customer service

    team work

    innovation

    professionalism, etc20

    Cont

    10/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    21/24

    Integrating Vision, Mission, Guiding Values

    21

    Today

    Future

    VisionMission

    Guiding Values

    10/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    22/24

    Vision, Mission, Guiding Values Mission

    Arrow connects Today and Future

    Means Mission statement must work not only todaybut for the intended life of strategic plan

    Vision

    Arrow does not begin at Today but at some point inthe future

    Means Vision statement is not true in the present, butonly in the future

    Guiding Values

    Both Vision and Mission statements reside in a sea ofguiding values GVs influence everything

    2210/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    23/24

    Transition from Planning to reaping

    The transition comes with challenges..

    23

    StrategicGoalSettingStrategy

    Development

    and

    Implementation

    Activities Results

    10/16/2013

  • 7/27/2019 Week 3-Strategic Planning

    24/24

    Transition Challenges

    Structures

    Systems

    Processes

    Politics

    People (staff)

    External dynamics (shifts)

    Resources

    2410/16/2013