STRATEGIC PLANNING. Plan, Lead, Think and Act. David D. Duckworth, B.S., M.P.A OPRA Spring Conference April 6, 2018

Transcription

1 PLANNING Plan, Lead, Think and Act David D. Duckworth, B.S., M.P.A OPRA Spring Conference April 6, 2018

2 On average, how long do management teams spend each month discussing strategy? A) 8 hours a month B) 4-6 hours a month C) 2-4 hours a month D) Less than one hour per month

3 What percent of their time does the average employee spend on the organizations top priorities? A) More than 70% B) 50% C) 30-40% D) Less than 30%

4 What percent of effectively formatted strategies are successfully implemented? A) More than 80% B) About 50% C) About 25% D) Less than 10%

5 What is strategic planning? Where are we now? Where do you want to be? One year from now Three years from now Five years from now How do we get there? Answers fundamental questions Why you exist What your major goals are What resources you need to be successful in the future

6 Why Do We Do Strategic Planning? Rapidly changing external environment Future-oriented Looks at the long term Enables continuous planning Benefits include: Performance Growth Communication

7 Why Do Strategic Planning? Keeps organization competitive in a dynamic and often unpredictable environment Promotes a clearly defined direction Promotes buy-in, ownership, and commitment Prevents disenfranchised employees Sets priorities for resource allocation Leads to positive action and change Helps in changing direction Can accelerate growth Promotes innovation and creativity Promotes communication & teambuilding Expands data and intuition Brings external factors to light 7

8 Risks and Pitfalls of Strategic Planning Not planning to plan Not knowing or having a planning process Not allotting enough time to plan Strategic planning costs money The risk of switching directions It takes time, a lot of time, 3-6 months

9 When Not to Do Strategic Planning No time No resources No commitment from leadership In an acute crisis or transition 9

10 General Principles There is no one absolute process There are specific principles and required steps Should be treated as an ongoing process Must evolve and change as the market (environment) changes Must reflect the vision, mission, and values of the organization

11 Who Will Be Involved? Who will be involved? Input from the right people People who are interested People who are committed to the process No conflict of interest People who will not derail the process How will you involve all staff?

12 How Do You Know You Are Ready? Leadership support Communication Define your planning period (scope) Who will manage the process? Develop a timeline for each step Finalize your planning group Identify data needs Define who will adopt/approve the plan Strategic Planning Checklist

13 Strategic Planning Models Goals-Based Most common Works with the agency vision, mission, and the agency goals to work toward achieving the mission Issues-Based Starts with examining issues that the organization is facing Organic Focus is primarily on vision and values Scenario

14 Steps of a Strategic Plan Where is your agency in its development RIGHT now? mission statement, vision, values? Existing strategic plan? Assess the Internal and External Environments S SWOT Strengths Analysis W Weak nesses O Oppor tunities T Thr eats Internal Environment External Environment

15 Who are we? VISION MISSION PHILOSOPHY (VALUES) Together, these constitute the organization s unique identity its organizational DNA. 15

16 Who are we? CRYSTALLIZING THE ORGANIZATION S IDENTITY Mission Vision Values Linking vision, mission, and values creates a powerful synergy. Each is important yet they are codependent. Without a vision, there is no inspiration. However, a vision without a mission is an impractical notion. And a mission without values could lead to an "ends justify means" philosophy. KEY POINT Crystallizing the organization's identity is a responsibility of leadership but, to be successful, it should be based on input from all. 16

17 Where are we now? INTERNAL/EXTERNAL ASSESSMENT AN ANALYSIS AND EVALUATION OF INTERNAL CONDITIONS AND EXTERNAL FACTORS THAT AFFECT THE ORGANIZATION The process of conducting an assessment if often referred to as a SWOT analysis because it involves a review of an organization s internal Strengths and Weaknesses and external Opportunities and Threats. A thorough understanding of both internal and external factors enables planners to most advantageously position the organization to respond to its environment and prosper in the future. The internal/external assessment should be conducted prior to goal setting. 17

18 Where is the organization now? CONDUCTING A SITUATION INVENTORY What are the organization s current programs and activities? Under what authority does the organization operate them? Does the existing program structure make sense? If not, what changes would benefit both the organization and its customers? What is going on in programs and activities? How do processes work? What is being done well? What is being done poorly? Are performance standards being met? What is the public perception of current programs and activities? What benchmarks compare the quality and cost of the services, programs, and activities? Do current programs support one another? Are any in conflict? Do they support or coordinate with programs in other agencies? Do any conflict, duplicate or overlap? Are planning, budgeting, and accountability integrated? 18

19 SWOT Analysis Regardless of whether your organization is future planning for specific products, work, personal or any other area, the SWOT analysis process is the same.

20 SWOT Analysis cont. Step 1 In the here and now List all strengths that exist now. Then in turn, list all weaknesses that exist now. Be realistic but avoid modesty! Step 2 What might be List all opportunities that exist in the future. Opportunities are potential future strengths. Then in turn, list all threats that exist in the future. Threats are potential future weaknesses.

21 SWOT Analysis cont. Step 3 Plan of action Review your SWOT matrix with a view to creating an action plan to address each of the four areas. Step 4 Develop Operational Plans, Monitor Actions, Evaluate Progress, and Revise the Plan!

22 Strategic Planning Process Developing the Plan Goals Identify long-term outcomes to provide focus for the planning process Strategies Outline how you will achieve your goals Objectives Identify specific, measurable results produced while implementing strategies.

23 ANALYZING ISSUES An issue is a matter in dispute a point of controversy. Before an issue can be addressed, it must be analyzed. This involves: Define the issue or problem; determine its parameters. Understand who is affected and how they are affected. Determine how serious and immediate the issue or problem is. Project future trends for the issue or problem. Determine the underlying causes of the issue; identify and verify the key cause(s). Assign a priority relative to other concerns. 23

24 ISSUES ISSUES OF CRITICAL IMPORTANCE TO THE ORGANIZATION AS A WHOLE Strategic issues are high priority issues that merit special attention. These might be described as the make you or break you kinds of issues. Strategic issues: may arise as a result of an organization s internal assessment; may be generated by external forces; may lead to strategic planning goals; may lead to management improvement efforts or budget modifications; may be addressed in the short-term or long-term; may emerge in an unexpected manner and become important after the strategic plan has been completed and approved. 24

25 Strategic Planning Process Goals and Objectives Should Be SMARTER Specific Measurable Acceptable Realistic Timeframe Extending Rewarding

26 GOALS THE GENERAL END RESULT TOWARD WHICH EFFORT IS DIRECTED Goals are a description of the desired future that is possible. Goals chart direction and provide a framework for more detailed levels of planning. Goals describe the to be state. 26

27 WRITING GOALS POORLY WRITTEN GOAL STATEMENTS GOAL: To continue to provide services to customers. Try Again! (What s wrong? Not challenging.) Try Again! GOAL: To conduct one seminar in every institution each year. (What s wrong? Unclear purpose; may be more appropriate as part of an objective or strategy.) 27

28 WRITING GOALS WELL WRITTEN GOAL STATEMENT Well Done! GOAL: To assure clean and sufficient statewide water supplies through conservation, development, and pollution control in order to protect public health and preserve beneficial water uses. (What's right? Again, clear direction and destination are identified and a strong framework for further planning is built. The goal can lead to the formulation of specific objectives related to water quality, supply, and usage as well as the development of strategies related to conservation, development, and pollution control.) 28

29 TIPS FOR GOAL SETTING Hold your goal-setting session away from the office. Use the information gathered in your internal/external assessment. Verify that it is within your authority to set goals in particular areas. The number of goals will vary among organizations. However, keep the number of goals manageable. 29

30 OBJECTIVE A SPECIFIC AND MEASURABLE TARGET FOR ACCOMPLISHMENT Objectives describe specific results that a program seeks to achieve and set targets for performance. Objectives are measurable, time-based statements of intent. Objectives represent milestones, interim steps, or intermediate achievements toward realizing vision, mission, and goals. Objectives relate to achievement, not means. 30

31 WRITING OBJECTIVES POORLY WRITTEN OBJECTIVES Try Again! OBJECTIVE: To reduce processing time. (What's wrong? The objective is not specific, measurable, or timebound. How much reduction in what kind of processing will be achieved within what timeframe?) OBJECTIVE: To maintain current service levels through FY (What's wrong? This objective does not give specifics or target change. Perhaps the organization has had static funding levels and does not anticipate any additional revenues. Perhaps it is a challenge just to continue serving the same number of clients over the next few years. However, this objective fails to tell the full story. 31

32 WRITING OBJECTIVES WELL WRITTEN OBJECTIVES Well Done! OBJECTIVE: To maintain the number of clients served at 2,500 annually while holding per client cost to no more than $3,500 through FY 2018 (What's right? This organization anticipates a standstill budget over the next few years but will maintain service levels at the same cost per client by growing more efficient. This objective is specific, measurable, and time-bound as well.) Well Done! OBJECTIVE: To reduce the average cost of processing new hires by 5% (from the FY12 base of $100) by June 30, (What's right? A specific amount of change is targeted within a specified time frame. Progress can be measured and compared directly with the targeted outcome. The amount of change does not seem unreasonable.) 32

33 FORMULATING OBJECTIVES 1. Review the organization s mission and goals. 2. Be sure that you understand the internal and external factors affecting the organization. 3. Decide what results you want. Baseline performance; benchmarks; room for improvement Targets Variables or factors that may influence outcomes Standards or expectations (mandated or not) Consistency with policies, values, priorities 4. Set a time frame for achievement of results. 5. Build in accountability. 33

34 How do we get there? STRATEGIES AND ACTION PLAN To achieve results, it is not enough to know where you want to be. You must know how to get there. Strategies indicate in general terms how goals and objectives will be achieved. Action plans detail tasks and assign responsibilities for strategies. STRATEGY The method used to accomplish goals and objectives. ACTION PLAN A detailed description of how a strategy will be implemented. 34

35 BUILDING STRATEGIES AND DEVELOPING ACTION PLANS Once a strategy has been chosen, the steps necessary to successfully implement the strategy need to be identified. These are the action steps that will appear in the action plan. An action plan operationalizes a strategy. The action plan is where actual production occurs. Action plan steps describe who does what and when he or she does it. To successfully develop and manage an action plan, it is necessary to: > Assign responsibility for completion. > Set a time frame for completion. > Detail the action plan in steps. > Determine the fiscal impact of the action plan and the resources needed to carry it out. > Organize the action plan. 35

36 How do we get there? ACCOUNTABILITY THE METHODS USED TO MEASURE RESULTS To succeed, you have to know how well you are doing. The most comprehensive, elegant, and technically perfect plan written is of no worth unless it works. What gets measured gets done. What gets measured gets changed. Accountability monitors progress. It tracks the extent to which strategies have been implemented. It measures performance and compares actual with expected results of goals and objectives. Accountability must be built into the strategic plan. 36

37 BUILDING IN ACCOUNTABILITY PERFORMANCE INDICATORS ARE THE TOOLS USED TO MEASURE PERFORMANCE. Performance indicators are made up of two parts: Name of indicator - describes what you are measuring Value of indicator - the numeric amount or level achieved during a given measurement period. EXAMPLE: Indicator Name Indicator Value Number of clients served 3,250 37

38 BUILDING IN ACCOUNTABILITY POINTER: Concentrate on the development of a balanced set of performance indicators for each objective. A balanced set of indicators will provide a clear picture of performance without needless detail. Five highly-proven types of performance indicators: Input Output Outcome Efficiency Quality A balanced set may include more than one of any indicator type and none at all of some. 38

39 INFORMATION David D. Duckworth,