Developing a Strategic Plan. William T. Cousins, Chair - VOLT Academy

Transcription

1 Developing a Strategic Plan William T. Cousins, Chair - VOLT Academy 1

2 Session Objectives Introduce strategic plan formulation Relate Strategic Plans, Business Plans, and Balanced Scorecard Provide basics that lead to success (ASME, Industry, Academic) 2

3 Session Outline Introduction to Strategic Planning Formulation of the Strategic Plan Communicating & acting on the strategic plan Strategic Plan document Balanced Scorecard Strategy Map Business Plan Failure points to protect against 3

4 Introduction to Strategic Planning 4

5 Strategic Planning vs. Long Term Planning Long Term Planning Strategic Planning Extrapolation of the current state of the organization Organizational Direction Change Competitive Positional/tactical analysis Customer Driven Introduction to Strategic Planning More of the Same Changes to the Business 5

6 Strategic Planning Steps 1. Develop a document that spells out: Mission, Vision, Purpose of the organization 2. Develop a communication plan that saturates the consciousness of everyone with: What business are we in and why? Where are we going? What do we stand for as an organization? 3. Examine the culture to establish a baseline to which change can be compared. Introduction to Strategic Planning 6

7 Strategic Planning Steps 4. Develop changes in information flow, accountability & reward systems to ensure (at least) compliance and (at best) commitment & creativity. 5. Develop supports for changed behavior. (Training, team building, etc.) 6. Set goals for all parts of the organization. Criteria for goals: Perform gap analysis What we hope to accomplish How this relates to the vision of the organization How we will track progress Introduction to Strategic Planning 7

8 Strategic Planning Steps 7. Hold a strategy session with each unit to create action plan & agreed-upon goals that are aligned with the organizational vision. Who will do what, when, where, how, with what intent. 8. Communicate the plan.. Celebrate achievements & learn from mistakes. Introduction to Strategic Planning 8

9 How it all fits together Broad Gap Analysis Strategic Why are we Questions in business? Strategic People-Friendly Change How do we do business? Where is our business now? Where do we want to be? How can we get there? How will we know we ve arrived? Vision Values Environmental Assessment Strategies (Goals) Tactics (Plans) Coordination Mission Climate Strengths Resources Budgets Driving Force Culture Weaknesses Controls Opportunities Reports Threats Milestones Competition Metrics Constraints Barriers Introduction to Strategic Planning

10 Formulation of the Strategic Plan 10

11 Determining Mission, Vision, and Driving Force (1) Mission statement should have meaning otherwise a corporate exercise in futility Helps align decisions with values and goals Some Tests Mother test: If you mother does not understand it, start again. Should inspire Aligned with core competency A brief description of a company s fundamental purpose. A mission statement answers the question, Why do we exist? How it all fits together Broad Gap Analysis Strategic Why are we Questions in business? Strategic People-Friendly Change How do we do business? Where is our business now? Where do we want to be? How can we get there? Environmental Assessment Strategies (Goals) Tactics (Plans) Vision Values Mission Climate Strengths Driving Force Culture Weaknesses Opportunities Threats Competition Constraints Barriers Introduction to Strategic Planning Resources How will we know we ve arrived? Why are we in business? Coordination Budgets Controls Reports Milestones Metrics Mission / Vision Driving Force Formulation of the Strategic Plan 11

12 Determining Mission, Vision, and Driving Force (2) Samples of Mission Statements The Elephant Sanctuary: "A natural-habitat refuge where sick, old and needy elephants can once again walk the earth in peace and dignity." Sun Microsystems: "Solve complex network computing problems for governments, enterprises, and service providers. " VOLT Academy: "Ensure that ASME volunteers have the training needed to assume leadership positions of ever-increasing responsibility in the Society and that the skills gained from such leadership positions, in turn, enhance their professional careers. " How it all fits together Broad Gap Analysis Strategic Why are we Questions in business? Strategic People-Friendly Change How do we do business? Where is our business now? Where do we want to be? How can we get there? Environmental Assessment Strategies (Goals) Tactics (Plans) Vision Values Mission Climate Strengths Driving Force Culture Weaknesses Opportunities Threats Competition Constraints Barriers Introduction to Strategic Planning Resources How will we know we ve arrived? Why are we in business? Coordination Budgets Controls Reports Milestones Metrics Mission / Vision Driving Force Formulation of the Strategic Plan 12

13 Determining Mission, Vision, and Driving Force (3) Vision Statement: Provides the inspiration for both your daily operations and your strategic decisions Keeps the organization focused Writing the Statement: Examine your mission statement Dare to dream. Where will you be 5 years from now? Vision should force you to choose what you consider to be the most important accomplishment of your business and give you a time frame to accomplish it. A Formula How it all fits together Broad Gap Analysis Strategic Why are we Questions in business? Strategic How do we do business? Where is our business now? Where do we want to be? Strategies (Goals) Vision Values Environmental Assessment Mission Climate Strengths Driving Force Culture Weaknesses Opportunities Threats Competition Constraints Barriers Introduction to Strategic Planning People-Friendly Change How can we get there? Tactics (Plans) Resources How will we know we ve arrived? Why are we in business? Coordination Five years from now, (my company name) will by. Budgets Controls Reports Milestones Metrics Mission / Vision Driving Force Formulation of the Strategic Plan 13

14 Determining Mission, Vision, and Driving Force (4) Sample Vision Statements: Five years from now, Computer Services Ltd. will have annual revenues of over one million by consistently providing timely, reasonably priced repair and instructional services. Within the next five years, Metromanage.com will become a leading provider of management software to North American small businesses by providing customizable, user-friendly software scaled to small business needs. Five years from now, Tiny Tots Diaper Service will be the top grossing diaper service in the Lower Mainland by consistently providing a reliable, affordable service for Moms and Dads with small children. ASME will be recognized worldwide as a premier organization for the quality of leadership training and orientation provided to its volunteers. How it all fits together Broad Gap Analysis Strategic Why are we Questions in business? Strategic People-Friendly Change How do we do business? Where is our business now? Where do we want to be? How can we get there? Environmental Assessment Strategies (Goals) Tactics (Plans) Vision Values Mission Climate Strengths Driving Force Culture Weaknesses Opportunities Threats Competition Constraints Barriers Introduction to Strategic Planning Resources How will we know we ve arrived? Why are we in business? From your Mission and Vision, do you have a Driving Force for your organization? Coordination Budgets Controls Reports Milestones Metrics Mission / Vision Driving Force Formulation of the Strategic Plan 14

15 Determining Values, Climate, and Culture Values: Integrity? Customer service? Employee satisfaction? Teamwork? Climate: Economic? Business? What satisfies a need? Are people looking? Can you improve it? Culture: One of collaboration? Not invented here? Internal cooperation or struggle? Anything that has to change? How it all fits together Broad Gap Analysis Strategic Why are we Questions in business? Strategic People-Friendly Change How do we do business? Where is our business now? Where do we want to be? How can we get there? Environmental Assessment Strategies (Goals) Tactics (Plans) Vision Values Mission Climate Strengths Driving Force Culture Weaknesses Opportunities Threats Competition Constraints Barriers Introduction to Strategic Planning Resources How will we know we ve arrived? How do we do business? Coordination Budgets Controls Reports Milestones Metrics Values, Climate, Culture Formulation of the Strategic Plan 15

16 Gap Analysis: Environmental Assessment Social impacts Cultural impacts Sensitivity to economics Effects on other parts of the organization Conflicting efforts Governmental regulations How it all fits together Broad Gap Analysis Strategic Why are we Questions in business? Strategic People-Friendly Change How do we do business? Where is our business now? Where do we want to be? How can we get there? Environmental Assessment Strategies (Goals) Tactics (Plans) Vision Values Mission Climate Strengths Driving Force Culture Weaknesses Opportunities Threats Competition Resources How will we know we ve arrived? GAP ANALYSIS Where is our business now? Coordination Budgets Controls Reports Milestones Metrics Constraints Barriers Introduction to Strategic Planning Environmental Assessment Formulation of the Strategic Plan 16

17 Gap Analysis: Strengths, Weaknesses, Opportunities & Threats Strengths / Weaknesses Internal issues Opportunities / Threats External issues Brainstorm these, then group into logical areas (like areas of concern, necessary growth areas, areas to protect) How it all fits together Broad Gap Analysis Strategic Why are we Questions in business? Strategic How do we do business? Where is our business now? Where do we want to be? Strategies (Goals) Vision Values Environmental Assessment Mission Climate Strengths Driving Force Culture Weaknesses Opportunities Threats Competition People-Friendly Change How can we get there? Tactics (Plans) Resources Good for pre-work! How will we know we ve arrived? GAP ANALYSIS Where is our business now? Coordination Budgets Controls Reports Milestones Metrics Constraints Barriers Introduction to Strategic Planning SWOT Analysis Formulation of the Strategic Plan 17

18 Gap Analysis: Competition, Constraints, Barriers Who is the competition? Internal? External? is this a concern? Are there defined constraints that must be maintained? lived with? changed? Are there certain barriers that need to be removed? watched?..lived within? managed? How it all fits together Broad Gap Analysis Strategic Why are we Questions in business? Strategic People-Friendly Change How do we do business? Where is our business now? Where do we want to be? How can we get there? Environmental Assessment Strategies (Goals) Tactics (Plans) Vision Values Mission Climate Strengths Driving Force Culture Weaknesses Resources GAP ANALYSIS Where is our business now? How will we know we ve arrived? Coordination Budgets Controls Opportunities Reports Threats Milestones Competition Constraints Barriers Introduction to Strategic Planning Competition, Constraints, Barriers Metrics Formulation of the Strategic Plan 18

19 Gap Analysis: Strategies (Goals) From the past analysis What are the major factors that need to drive the strategy? What major goals need to be achieved to reach the vision? (4-6 is adequate) How it all fits together Broad Gap Analysis Strategic Why are we Questions in business? Strategic People-Friendly Change How do we do business? Where is our business now? Where do we want to be? How can we get there? Environmental Assessment Strategies (Goals) Tactics (Plans) Vision Values Mission Climate Strengths Driving Force Culture Weaknesses Opportunities Threats Competition Resources How will we know we ve arrived? GAP ANALYSIS Where do we want to be? Coordination Budgets Controls Reports Milestones Metrics Constraints Barriers Introduction to Strategic Planning Strategies (Goals) Formulation of the Strategic Plan 1

20 Gap Analysis: Tactics (Plans) & Resources Tactics are the things you will actually do, in line with your strategies, to meet your vision. Individual tactics may have business plans. Resources are physical items needed to invoke your tactics people & organization, materials, but NOT BUDGET. How it all fits together Broad Gap Analysis Strategic Why are we Questions in business? How do we do business? Where is our business now? Where do we want to be? GAP ANALYSIS How can we get there? Strategic Environmental Assessment Vision Values Mission Climate Strengths Driving Force Culture Weaknesses Strategies (Goals) People-Friendly Change How can we get there? How will we know we ve arrived? Tactics (Plans) Coordination Resources Budgets Controls Opportunities Reports Threats Milestones Competition Metrics Constraints Barriers Tactics (Plans) Resources Introduction to Strategic Planning Formulation of the Strategic Plan 20

21 People-Friendly Change: How will we know we ve arrived? Coordination Budgets Controls Reports Milestones Measures and Metrics How it all fits together Broad Gap Analysis Strategic Why are we Questions in business? Strategic Vision Introduction to Strategic Planning 20 People-Friendly Change How do we do business? Where is our business now? Where do we want to be? How can we get there? How will we know we ve arrived? Values Environmental Assessment Strategies (Goals) Tactics (Plans) Coordination Resources Budgets Mission Climate Driving Force Culture Strengths Weaknesses Controls Opportunities Reports Threats Milestones How will we know we ve arrived? Competition Can think of this as the project management piece Metrics Constraints Barriers Introduction to Strategic Planning Formulation of the Strategic Plan 21

22 Communicating and Acting on the Strategic Plan 22

23 The Strategic Plan Document Purpose Communication of the plan to others A constant reminder of the direction of the organization Communicating and Acting on the Strategic Plan 23

24 Example: The VOLT Strategic Plan Mission Vision Factors Strategies Communicating and Acting on the Strategic Plan 24

25 What is the Balanced Scorecard? The Balanced Scorecard (BSC) is a tool to help translate strategy into operational objectives. Communicating and Acting on the Strategic Plan 25

26 Balanced Scorecard Strategy Map Links Action to Strategy Custome r Benefits Financial Viability Internal Capabilities Realize the Vision Deliver Benefits to Customers in a Financially Viable Manner... Build Strategy... Knowledge, Skills, Systems, and Tools Communicating and Acting on the Strategic Plan Equip the Team... 26

27 Communicating and Acting on the Strategic Plan 27

28 Communicating and Acting on the Strategic Plan 28

29 The 2012 Enterprise Strategy Map 2

30 Guiding Your Strategy into Operation Communicating and Acting on the Strategic Plan 30

31 How it all fits together Communicating and Acting on the Strategic Plan 31

32 Communicating and Acting on the Strategic Plan 32

33 Application of a Business Plan Communicating and Acting on the Strategic Plan 33

34 Communicating and Acting on the Strategic Plan 34

35 Failure Points to Protect Against 35

36 Do not let the budget drive the plan Failure Points to Protect Against 36

37 Failure Points to Protect Against 37

38 Don t spend group time word-smithing, let one person author, then change. Failure Points to Protect Against 38

39 Be sure to keep strategies separate from tactics don t confuse the two. Failure Points to Protect Against 3

40 Don t drop the ball with the measures and metrics they allow you to monitor success. Failure Points to Protect Against 40

41 Keep moving through the process at a decent pace you will have a better result speed helps. Failure Points to Protect Against 41

42 42