9/22/2011. Not interchangeable Strategic plans. Business plans

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1 Major Event Happens and passes Draws significantly on resources Placed on a shelf thereafter Ongoing process Ensures progression and results Helps an organization determine where it is going, how it will get there, and how it will know if it got there or not. Document the process Vary in several ways: Timeline one year, three years, and five to ten years into the future. Scope across the organization top-level information Direction & length specify action plans or leave them out Short (5-8 pages) or considerably longer. Consider both the long-term view and the short-term requirements. Not interchangeable Strategic plans Relatively short documents Focused on the entire organization Business plans More substantial Targets a particular product, service or program Product of your strategic plan 1

2 Clearly define the purpose/mission of the organization Establish realistic goals and objectives consistent with the mission Communicate goals and objectives to stakeholders Develop sense of ownership of the plan Ensure most effective of resources Establish basis to measure progress Build consensus about future direction Provide clearer focus Bridge staff/employees and management/leadership Build strong teams Increase productivity through increased efficiency and effectiveness Solve major problems Inadequately prepared for changes Competing agendas Fragmented stakeholder communications Inconsistent message Inefficiencies and ineffectiveness throughout Essentially: Struggle toward achievements Expend resources to simply survive The process of developing and evaluating every decision and action in light of current and future circumstances, the direction you want to go, and the results you want to achieve. - The Sergay Group, Ltd, 2011 Focused on possibility thinking instead of doing business as usual Encourages pushing the envelope What can be done smarter What else can be done instead of, or in addition to, that would maximize opportunities. Strive to become strategic thinkers re-evaluate, challenge, and adjust where necessary consider all variables, internal and external ongoing responsibility of every employee Assess every challenge, every problem, or every action in light of a broader context 2

3 See the big picture Initiate innovative ideas Conceptualize complexity Know the right questions to ask Think horizontally and simultaneously Know when to ask searching questions Integrate concepts, however disparate Apply lateral thinking to different situations Challenge current processes, practices, and strategy Unearth alternative approaches, solutions, or methods (The Sergay Group, Ltd, 2011) 1. Strategic thinking 2. Identify patterns or trends 3. Identify threats and opportunities to the organization 4. Create a vision statement 5. Define organizational purpose 6. Set goals - Authenticity Consulting, LLC 1. Committee management 2. Conflict management in groups 3. Conflict management 4. Creative thinking 5. Innovation 6. Decision making 7. Facilitating in face-to-face groups 8. Focus Groups 9. Group-based problem solving and decision 10. Meeting management 11. Problem solving 12. Valuing diversity - Authenticity Consulting, LLC Everyone in the organization More people = more perspectives and information available Allows everyone to see the bigger picture Increases awareness and understanding Empowers participants Helps to create a common culture Motivates employees to support the organization s future direction Increases likelihood that the Plan will become action 3

4 1) Assess your existing environment SWOT analysis 2) Develop a realistic Vision Presented as a pen picture of the organization Three or more years time Stated in terms of its likely physical appearance, size, activities etc. 3) Develop a Mission Statement Purpose and activities 3 to 4 years Hard-nosed versus softer issues Focused, realistic, and justified 4) State organizational values and beliefs Governing conduct Governing relationships 5) Set out key long-term objectives Results to be achieved Medium- to long-term Expectations and requirements of all major stakeholders 6) Identify key organizational strategies and major functional areas Rules and guidelines by which the mission, objectives, etc. are achieved Use SWOT analysis to identify Build on strengths Resolve weaknesses Exploit opportunities Avoid Threats 7) Assess possible future environment SWOT Analysis 8) Review & refine vision, mission, values, and objectives 9) Specify major goals achievable over the next 3 to 4 years Specific interim or ultimate time-based measurements to be achieved by implementing strategies in pursuit of the company's objectives Quantify in terms of sales, market shares, products, finances, profitability, utilization, efficiency 10) Identify strategic action programs Who, what, when, where, how Set targets Prioritize Establish implementation plans Address resources, objectives, time-scales, deadlines, budgets, and performance targets (PlanWare, Invest-Tech Limited, 2011) Considers internal and external environments Analyzes larger system Stakeholders Needs & expectations Systematic analysis of the internal and external factors which influence your organization These factors are: Strengths Weaknesses Opportunities Threats 4

5 Internal to the organization Relate to resources, programs and organization in key areas Good and bad points withinthe organization These include: Sales - marketing - distribution - promotion - support Management - systems - expertise - resources Operations - efficiency - capacity - processes Products - services - quality - pricing - features - range - competitiveness Finances - resources - performance R&D - effort - direction - resources Costs - productivity - purchasing Systems - organization structures External factors confronting the organization Includes the following areas: Structural changes within the industry Economic or social factors in the marketplace Competition Changes in products or processes due to new technologies Use the following approaches for each factor: Build on strengths (e.g. reputation) Resolve weaknesses (e.g. communications) Harness opportunities (e.g. new legislation) Avoid threats (e.g. competition) Combine tactics and strategies in your strategic plan Vision Statement Mission Statement Goals & Objectives Short-Term Action Steps Word picture of your company in the future Framework for all your strategic planning Establishes stretch for the organization Entire company or single division 5

6 Answers Where do we want to go? Inspiration for daily operations and strategic decisions. Destination for the journey without a destination, how can you plan the route? Short, simple, inspiring Created by the leader 1. Evaluate your mission Why do we exist? What is it we do well? How do we do it? 2. Imagine where it takes you Extrapolate where is your organization going to be in five years? What will you accomplish? Form a mental picture Imagine a company news byte. What is your organization being recognized for? 3. Shape your vision statement Refine your vision into usable form Use the following template to build your vision statement: Five years from now, (my company name) will by. Identify the most important accomplishment of your organization State a time-frame to accomplish it For example: Five years from now, the APWA will become the leading provider of training for Public Works Directors in the continental US by consistently providing a reliable, affordable, accessible training in Public Works core competencies. 4. Commit to your vision statement Take action Keep it alive share it liberally make it visible Defines and articulates your organization's purpose Clarifies the reason for its existence Combination of what your company does how and why it does it Encapsulates the values that are important to your organization Explains to customers why they would want to do business with you Provides the guidance to those who are familiar with it 6

7 1. Describe what your organization does Keep it simple at first: My organization's purpose is to: Sell shoes Provide educational services Build and maintain roadways 2. Describe how you do it Not a detailed description of the physical operations Description of general operations Incorporate one or more of your core values. For example: High product quality Superior customer service Equal access to resources Encourage innovation/creativity Practice sustainable development Consider your organization s core competencies - what a you do well that distinguishes it from others? My organization's purpose is to: Sell shoes of the highest quality Provide educational services that allow all Public Works Directors to participate Build and maintain roadways using sustainable development practices 3. Add why describe spark or passion behind your organization Why does your organization do what it does? My organization's purpose is to: Sell shoes of the highest quality so every customer can find a pair of shoes they actually love to wear. Provide educational services that allow all Public Works Directors to participate and improve the communities in which they live and work. Build and maintain roadways using sustainable development practices to ensure today s resources are protected for future use. 4. Put your mission statement to work. Front and center in the minds of Employees customers Our mission: Highly visible to inspire and nurture at your premises the human spirit one on your website person, one cup and on all your one marketing neighborhood materials. at a Theme of advertising time. campaigns. Not just a slogan, an operations manual Goals Accomplishment you are trying to reach Broad, large in scope Objectives Goals & Objectives Major activities that support the mission Future desired/expected outcomes Programmatic direction Ends Be persistent Steps in the process of reaching a goal Specific targets or end-results What needs to be done Statements of actions toward outcomes Clear, realistic, measurable, and time-limited Means Be flexible 7

8 Stated first Categorized around major responsibilities, needs, or programs Examples 1. Provide high quality information services that satisfy user needs. 2. Acquire or make available, in a timely manner, all externally produced information resources needed by the organization Written for each goal Strategies or primary means for achieving goals Two Types Outcome Process/Action Address ends to be obtained Can be in the form of ultimate, intermediate, or immediate Examples To have a 75% customer satisfaction rating on reference requests by xxx date By end of FY xx 50% of all employees will be aware of at least 3 library services Specify the means to achieve the outcome objectives Begin with words provide, train, serve, etc. Need an end date Process Examples To provide information consulting services for any company unit that requires it. To provide online database search training on Lexis-Nexis to all users of the service. Activities for the current year Steps necessary to move toward vision Specific activities required for each step Information requirements Assignment of individual responsibilities Major milestones and schedule Resource requirements Examples Objective: Repair/improve drainage on roads to be paved within the year Short-Term Action Steps: 1. Identify roads to be paved 2. Locate drainage needs 3. Obtain necessary materials 4. Schedule work 8

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10 1. History 2. People/Culture 3. Leadership 4. Discipline 5. Communication 6. Monitoring, Measurement, Feedback 7. Lack of Flexibility 8. Milestones/Rewards 9. Bad Planning 10. Bad Plan Ten Common Reasons Strategic Plans Fail By: Leo Bottary (Vistage International Inc., 2010) FOUR ESSENTIAL STEPS 1) Make your planning process inclusive 2) Make sure your plan is realistic, flexible, and complete 3) Make a commitment 4) Recognize that the value of your Strategic Plan depends on your leadership (Burns,2010) Fatal Flaws Developing your Strategic Plan during a crisis Setting unrealistic objectives Assuming everyone knows what is expected of them Ramming a plan down anyone s throat (Burns,2010) Authenticity Consulting, LLC. (n.d.). All About Strategic Planning. Retrieved February 17, 2011, from Free Management Library: Burns, M. (2010). Off the Shelf. Retrieved February 17, 2011, from BWB Solutions: PlanWare, Invest-Tech Limited. (2011). Developing A Stratgegic Plan. Retrieved February 17, 2011, from PlanWare: The Sergay Group, Ltd. (2011). Strategic Thinking - A Task for All Employers. Retrieved February 17, 2011, from Smart Talk: Vistage International Inc. (2010). Ten Common Reasons Strategic Plans Fail. Retrieved February 17, 2011, from Vistage: 10

11 Sherri B. Zimmerman Assistant Professor Indiana University of Pennsylvania Richard L. V. Coates III Assistant Director County of Fulton, GA

12 INTERNAL: Strengths EXTERNAL: Opportunities SWOT Analysis Threats Weaknesses

13 INTERNAL: Strengths EXTERNAL: Opportunities SWOT Analysis Threats INVEST DEFEND (either alone or with others Weaknesses DECIDE - become stronger to take advantage of or let the opportunity pass by DAMAGE CONTROL

14 ACTION STEP DEVELOPMENT WORKSHEET Goal: Objective: Action steps Who will do it? By when? Goal: Objective: Action steps Who will do it? By when? Goal: Objective: Action steps Who will do it? By when?