SDSU DEPARTMENTAL STRATEGIC PLANNING WORKSHOP. October 2, 2017

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1 SDSU DEPARTMENTAL STRATEGIC PLANNING WORKSHOP October 2, 2017

2 PURPOSE The purpose of this workshop is to bring together leaders from departments to prepare them to lead strategic planning efforts at the unit and department level, in consort with the university strategic plan.

3 Exercise 1: Your perceptions: How do you state it? How do you live it? Why you we need to do strategic planning? INTRODUCTION AND ORIENTATION How will we get our department engaged in strategic planning? How will we foster the creation of robust ideas? What are the steps to set goals and create action plans at the department level? What are the department links to the university strategic plan?

4 STRATEGIC PLANNING, VISION CONFERENCE The Vision Conference brings together internal and external stakeholders to create a shared picture of South Dakota State University's future.

5 STRATEGIC INNOVATION Capacity for strategic innovation is seen as the next competitive advantage for organizations around the world.

6 INNOVATION Innovation is a form of keeping an organization sustainable in uncertainty, thereby maintaining competitive advantage.

7 Value innovation and organizational innovation are the key to delivering successful strategies. There are two views on positioning an organization s strategy: the resource based (internal) view, and the competitive, environmental based (external) view. Strategy is formulated, and then implemented through projects. Projects arise because of an end result of the business strategy. They are objective driven to fill a need. This is strategy by design.

8 There are four essential steps in the strategic process. The organization defines the mission, sets objectives in the long-term, develops strategies for achieving the objectives, and develops tactical plans for achieving each element of the strategy. Mission Objectives Long-term Goals Five-ten Years Strategies Intermediate Goals Annual Budgets/Strategic Plans Organizational Campaigns Project Formulation Tactics Short Term Goals Individual Plans for Projects/Operations

9 All projects deliver capabilities based on a visionary s idea.

10 The Hubble Space Telescope orbits outside the Earth's atmosphere recording some of the most detailed visible light images ever, allowing a deep view into space and time. Many Hubble observations have led to breakthroughs in astrophysics. Envisioned 1923 Funded 1977 Launched 1983 Orbited 1990 Repaired 1993 Cancelled 2003 Final Svc Mission 2009 Value Immeasurable

11 Value is subjective. Only the end user can judge value. But value can come in unexpected forms and may be realized only years later.

12 ACCOUNTABILITY Many of us deal with long-term goals and detailed, short-term budgets. We know that goals cannot be achieved without the connection to link them together.

13 ACHIEVING A LONG-TERM GOAL REQUIRES A SERIES OF LOGICAL, ACHIEVABLE, SEQUENTIAL STEPS. A Mission: A concise statement of our department s reason for existing Objectives: Broad statements describing the targeted direction of our department. Goals: Supported by quantifiable objectives delivered within a specific period of time Strategies: Statements of how those objectives will be achieved and the methods to be used Tactics: Specific action steps that map out who will be accountable, what will be achieved, when will the action be completed, where will the value be demonstrated, why the action is being implemented, and how each performance indicator will be measured. Key Performance Indicators (KPIs). Measures of performance that show progress of each tactic in reaching the goals

14 For its Apollo space program, for example, NASA s strategic plan may have looked something like this: Our Mission: Lead all other nations in the race for space. Our Objective: Send a man to the moon and bring him back alive. Our Goals: Be the first to do it. Do it by the end of the decade. Our Strategy: Investigate and select safe landing sites for manned missions. Our Tactic: Create and launch a series of unmanned space crafts to take and transmit high-quality pictures of the moon back to Earth for scientific study. Our KPI: Launch moon reconnaissance spacecraft by the middle of year 2 of the plan and analyze photos by the end of that year.

15 For Sanyo, the strategic plan may look like this: Our Mission: to be a company that inspires and fulfills your curiosity Our Objective: Expand the cellular phone product line. Our Goals: Position Return on Equity (ROE) as its primary key performance indicator with a target for of more than 10% the final year of its mid-range corporate plan. The Company aims to achieve these goals and realize its transformation into a highly profitable enterprise by implementing the following key strategies. Our Strategies: Business management that emphasizes profitability, without necessarily pursuing volume, business management that grants each business unit greater autonomy and mandates a focus on shareholder value, and clearly defined positioning of each business within a broader business portfolio perspective. Our Tactics: position devices, game & network services, pictures, and music as segments that will drive its profit growth over the next three years.

16 Amazon, one of the first major companies to sell goods over the Internet has this strategy: Our Mission: To be Earth s biggest selection and to be Earth s most customer centric department. Our Objective: Capitalize on connectivity to build the bottom line. Our Goals: Retrofit current strategy to connect smart appliances to ecommerce operations and a futurefacing strategy for the coming flood of connected devices. Our Tactic: one-button apps

17 Our Mission: Apple designs Macs, the best personal computers in the world, along with OS X, ilife, iwork and professional software. Apple leads the digital music revolution with its ipods and itunes online store. Our Goal: Emphasize intensive growth strategies to improve Apple s resilience against aggressive competitors. Our Strategy: Product Development- attractive products to grow market share and performance, market penetration- gaining more of market share, market development- establishing presence in new markets. Apple s intensive growth strategy is a broad differentiation.

18 Our Mission: We are a community of scholars dedicated to educating and molding the next generation of ethical leaders for Nebraska and the world. We strive to provide an exceptional education for our students, and to create high impact research that informs important business questions of our day. Our Goals: o Online MBA program rank 15 th in the world and 21 st o in the nation by 2017, Online MBA program rank 3 rd in Big Ten for veterans o Part-time MBA program rank 66 th out of 150 nationwide University of Nebraska School of Business rolled out their strategy this way: Our Strategy: Increase first-time freshman enrollment by 50 percent in the next five years, and overall college enrollment by 33 percent by Our Points of Pride: o 10 undergraduate majors (accounting, actuarial science, agribusiness, business administration, economics, finance, international business, management, marketing, supply chain management) o 1 new entrepreneurship track in the management program

19 THE STRATEGIC PLANNING PROCESS The strategic planning process is an ongoing response to the changing environment for higher education in general and for SDSU in particular. The strategic planning effort is organized around six key questions: 1. Who are we as a department within the university system? 2. What value do we bring? 3. What are our fundamental commitments? 4. Where do we want to go? What are our goals and objectives over the next 5 years? 5. How can we get there? What are the action items that will achieve the benchmarks? 6. How will we know if we have? What is the institutional-level framework for assessing progress toward objectives of the plan?

20 The strategic plan is a "living document" that will change over time. It offers a common framework and flexible guide to decision makers across the university and, as such, it should foster greater coherence, coordination, and unity across the university. At the same time, however, it is designed to be adaptable enough to leave significant room for individual academic units to pursue academic excellence in ways important to those particular units.

21 THE STRATEGIC PLANNING PROCESS Typical organizations have overarching strategies, with a set of goals. Each goal may have several objectives, which in turn would have tactics and associated KPIs. KPIs must be measurable in order to gauge their success. The organization s strategies will not be successful unless its goals and objectives are delivered. Without KPIs, an organization has no way of knowing if goals and objectives were met.

22 THE STRATEGY-EXECUTION GAP So here s the question: What causes the gap between the vision and the execution? What can be done to close it? Every strategy needs a deployment process. So what role should departments play in the deployment?

23 THE STRATEGY-EXECUTION PROCESS Based on existing research and experience, the main causes of the gap between strategy and deployment can be grouped into three areas, each of which interacts with the others: The process that is established to implement the strategic initiatives The metrics that are established to measure the outcomes of the strategic initiatives (e.g., budgeting, forecasting, reporting) The technology systems used to support those processes

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28 KEY TO SUCCESS FOR LEADERS TO CLOSE THE STRATEGY-TO-EXECUTION GAP: Commit to an identity by focusing efforts on developing a solid value proposition and building distinctive capabilities that will last for the long term.

29 EXERCISE 2: VALUE PROPOSITION FLEXIBILITY WITHIN CONTEXT MEANS MOVING INTO ONLY THOSE COMPETITIVE ARENAS WHERE YOUR IDENTITY POSITIONS YOU TO BE WELL-EQUIPPED TO WIN. Key Questions for Your Value Proposition a) Does your department have a well-defined strategy, a clear statement of where it s heading? b) Has your department clearly defined the value it is creating for its end users? c) How relevant do you feel your department s value proposition is in the market? d) Is your department s value proposition the same for all university departments? e) Does your department bring something truly unique to its end users? f) Do you feel your department s strategy is going to lead it to success? g) Does your department have a clearly stated list of strategic priorities? h) How often do your department s strategic priorities change? i) Are your department s current initiatives and projects aligned to your strategy? j) Do you feel you re working against too many conflicting priorities? k) Does leadership regularly talk about the things the department is able to do or needs to do, its capabilities, rather than just what it needs to deliver? l) Is there agreement within your department on the most important capabilities required to win with its strategy? m) How many capabilities has your department defined as being very important in order to win with its strategy? n) Do you have initiatives in place to build and scale up those capabilities that really drive the strategy?

30 EXERCISE 3: STRATEGY THINKING ABOUT THE STRATEGY OF YOUR DEPARTMENT, HOW CONCERNED ARE YOU ABOUT THE FOLLOWING? Key Questions for Your Strategy a) Is your strategy is clear enough? b) Is your strategy meaningfully differentiated from competitors? c) Is your strategy bold enough, with goals that are high enough? d) Is your strategy within reach, given your capabilities?

31 EXERCISE 4: EXECUTION THINKING ABOUT YOUR DEPARTMENT S ABILITY TO EXECUTE ITS STRATEGY, HOW CONCERNED ARE YOU ABOUT THE FOLLOWING? Key Questions for Your Execution a) Is your strategy translatable into tangible action? b) Do your strategy priorities align with your staff capabilities? c) Does your strategy have support? Do some resist it? Do some fail to understand it? d) Does your strategy have an execution focus? e) Does your strategy have enough resources for implementation? f) Is your strategy is supported or held back by your culture?

32 EXERCISE 5: PERSPECTIVE THE COHERENCE TEST BENEFITS FROM MORE THAN ONE PERSON S PERSPECTIVE. THE TWO COLUMNS OF QUESTIONS REFLECT THAT INCOHERENCE HAS TWO SOURCES- STRATEGIC AND OPERATIONAL. The more questions to which you can truthfully answer yes, the more coherent your organization. : Can we state it? Do we live it? Capabilities System Are we clear about how we choose to create value in the Are we investing in the capabilities that really matter? marketplace? Can we articulate the three to six capabilities that describe what Do all department offerings draw on our unique capabilities? we do uniquely better than anyone else? Have we defined how they work together in a system? Do our organizational structure and operating model support and leverage our unique capabilities? Do our strategy documents reflect this? Does our performance management system reinforce our unique capabilities? Product and Service Fit Have we identified and acknowledged our sweet spot? Do most of our department offerings fit with our capabilities Do we understand how to leverage our capabilities system in new or unexpected arenas? system? Are new initiatives evaluated on the basis of their fit with our capabilities system? Coherence Can everyone in the organization articulate our differentiating Have we earned the right to win in our chosen market? capabilities? Is our department s leadership reinforcing these capabilities? Do all our decisions add to our coherence, or do some of them push us toward incoherence?

33 BACK TO THE QUESTION: HOW DO WE BRIDGE THE GAPS? WHAT CAUSES THE GAP BETWEEN VISION AND EXECUTION? WHAT CAN BE DONE TO CLOSE IT? WHAT ROLE SHOULD DEPARTMENTS PLAY IN THE DEPLOYMENT? There are typically six gaps that between strategic vision and execution: The gap between the vision and the understanding of the vision. The gap between the strategy and the strategy-to-outcome process. The gap between the strategy and sponsorship and support. The gap between the objectives and the project management. The gap between the vision for change and the process for change management. The gap between the goals and objectives and the effective governance.

34 Processes are necessary, but people choose to follow them (or not); people have the required skills (or not); people communicate with others (or not); and people follow direction (or not). It is all about people and whether they can and will perform the tasks assigned. Communication is the action, and common understanding is the outcome. People are the beginning and the end.

35 TRANSFORMING THE VISION INTO VALUE When we try to pick out anything by itself, we find it hitched to everything else in the universe. Therein is the perception of value, and value is the only real measure of our success.

36 TRANSFORMATIONAL LEADERSHIP IS THE ABILITY TO EXECUTE STRATEGIC GOALS SUCCESSFULLY TIME AFTER TIME. The responsibility for successful outcomes is imbedded in the roles assigned to leadership, faculty, and staff alike. Visionaries define where the organization can go. Leadership selects the options that appear to make sense, set goals, and identify initiatives to meet those goals. Faculty and staff transform those initiatives into programs and constituent projects in order to build and implement capabilities to achieve those goals.

37 MECHANISMS NEED TO BE IN PLACE TO GUIDE THE CONVERSION OF VISION TO VALUE. There are three critical actions make this happen: 1. Translating your strategy into an achievable set of goals. 2. Designing a process that maintains alignment with those goals. 3. Executing the tactics in an adaptive manner to deliver value.

38 VISION AND GOALS NEED TO BE ABLE TO ADAPT TO CHANGES Vision and goals need to be able to adapt to changes; plans and action items need to follow, with projects adjusting their deliverables accordingly. This never-ending concert plays havoc in any organization that is not in lockstep. It not always a top-down or logical process. So the channels for moving alignment information around must be bi-directional.

39 ORGANIZATIONS CAN MAINTAIN OPTIMUM ALIGNMENT BY FOCUSING ON A FEW KEY AREAS: Adopt value as the common success criteria to drive initiatives and to define appropriate metrics. Assign roles appropriately to ensure a connection between accountability and action. Create a culture that embraces innovative change. Build a culture that leads throughout the organization and the structure to support it.

40 INFLUENCERS Understanding where the organization stands in relation to its goals, is the first step to achieving them.

41 IF THE STRATEGY IS WORKING, WHY INNOVATE? Strategic innovation. Started small They started out as a local family-based retailer. With an emergent strategy process: fill a need, and take advantage of logistical and managerial efficiencies. Innovation created value differences that lead to a sustainable competitive advantage. Using a logistical network to support operations. A leader that delivers what end users value. All strategy and little innovation. First-mover advantage, excellent leadership, vision, marketing and locational advantages. Textbook strategy, evolving with the industry. The industry has changed. The customer has changed. McDonalds has struggled to keep abreast.

42 College/Department/Unit Strategic Planning Crosswalk SDSU Strategic Goal 1: SDSU Strategic Goal 2: SDSU Strategic Goal 3: SDSU Strategic Goal 4: SDSU Strategic Goal 5: College/Department/Unit Strategic Goal 1: College/Department/Unit Objectives Objective/Strategy 1 Relationship to University Goals Tasks/Actions Timeline Resource Allocation Performance Metrics Lead Role Objective/Strategy 2 Objective/Strategy 3