Developing a strategic plan for your organization

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Developing a strategic planfor your organization

• Dr. Eamon M. Kelly
• Payson Center - Tulane University- June 2001

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Conceptual Framework

• Role of leadership
• Mission
• Goals and objectives
• Planning
• Allocation of resources
• Constraints

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Nature of change

• Responsibilities of leadership
• Manage change
• Policy development
• Policy implementation
• Strategic Plan

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Nature of change

• Institutions / Definition
• Examples
• Family
• Education
• War
• Central Bank
• Universities

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Nature of change

• Change as Endogenous/Exogenous
• Conflict/Special definition
• Results of Conflict

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Strategic Plan
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Mission and Goals
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Determination of Mission

• Comparative Advantage
• Evaluation of Rivals
• Evaluation of External Environment
• Financial Feasibility

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Absolute advantageComparative advantage
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Mission Statement

• Mission Statement
• Comparative Advantage\Niche
• How is the organization unique?
• How is the organization different?

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Tulane University Mission Statement

• Only
• Highly Selective
• Research University
• Gulf South of United States (USA)

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Definition of Goals

• Programmatic
• Financial
• Performance Measures
• Feedback Mechanisms

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Goals

• Goal Specification
• Largest Problem
• Number of Goals
• Stay with Goals
• Ancillary Goals
• Goals of Different Power Groups
• Measurement of Goals

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Mission and Goals (contd)

• Examples of Problems
• Development Banks
• Maximize Output
• Reduce Unemployment
• Reduce Under-employment
• Reduce Inflation
• Reduce Poverty
• Revitalize Urban Areas
• Revitalize Rural Areas
• Redistribute Income

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Tulane University Problems1980

• Weak Students
• Weak Faculty
• Low Level of Research
• Poor Physical Facilities
• Poor Morale
• Poor Library
• No Technology
• Small Endowment
• 25 Years of Deficits

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Tulane University Goals

• Better Students
• Better Faculty
• Increase Research
• Increase Financial Strength

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Goal Measurements

• Improved Standardized Test Scores for Incoming
  Students
• Faculty Salaries
• Dollar Volume of Research
• Financial Net Worth
• Value of Endowment

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• TULANE UNIVERSITY
• 1981-1995

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GOALS

• QUALITY OF STUDENTS
• QUALITY OF FACULTY
• RESEARCH MISSION
• FINANCIAL RESPONSIBILITY

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• STUDENT
• SELECTIVITY

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SAT SCORES

• ENTERING FRESHMAN

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GRE SCORES

• ENTERING GRADUATE STUDENTS

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MCAT SCORES

• ENTERING MEDICAL STUDENTS

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• FACULTY
• RESOURCES

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FACULTY SALARIES

• FULL PROFESSOR
• (IN THOUSANDS)

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FACULTY SALARIES

• ASSOCIATE PROFESSOR
• (IN THOUSANDS)

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FACULTY SALARIES

• ASSISTANT PROFESSOR
• (IN THOUSANDS)

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• RESEARCH

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SPONSORED RESEARCH(IN MILLIONS)
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• FINANCIAL
• SUCCESS

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TOTAL ENDOWMENT(IN MILLIONS, MARKET VALUE,
CURRENT )
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TOTAL ENDOWMENT(IN MILLIONS, MARKET VALUE,
CONSTANT DOLLARS)
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NET WORTH(IN MILLIONS)
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Resource Allocation
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Resources

• Allocation of resources
• Marketing
• Human
• Financial
• Technical
• Political capital
• Short Term Plans
• Long Term Plans

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Marketing

• Constituencies
• Students
• Faculty
• Donors
• Government officials
• Leadership responsibility
• Plan
• Research
• Positioning
• Goals
• Implementation

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Human Resource Needs

• Personnel selection/recruitment
• Management and Incentives
• Organizational Chart
• Managerial style

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Financial Resource Allocation

• Balance Sheet
• Income Statements
• Operating Budget
• Cash Budget
• Capital Budget
• Sources and Uses of Funds
• Present value

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Present value

• Y Income
• P Present value
• R Interest rate
• Rate of return
• Discount rate
• Capitalization rate

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Time value of money

• Y P . R
• Y1 P PR
• Y1 P (1 R)
• Y1
• (1R)

P
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Time value of moneyYear 2

• Y2 Y1 Y1 . R
• Y2 P (1 R) P (1 R) . R
• Y2 P PR PRPR2
• Y2 P 2PR PR2
• Y2 P (1 2R R2)
• Y2 P (1 R) 2
• Y2
• (1R) 2

P
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Time Value of MoneyGeneral Formulations
P



N 8 P
Y
R
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Bank example

• Y P . R
• 100 1000 _at_ 10 Interest

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Applications

• Home Mortgages
• Loans/Borrowings
• Stocks/Bonds
• Buildings
• Laboratories
• Endowment

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Role of Information Technology

• National Science Foundation (NSF)
• Education and Research
• Pervasive
• Commerce
• Health
• Economic
• Impact on developing world

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Constraints
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Constraints

• Importance
• Examples
• Policy space
• Personal/Policy elite
• Societal pressures/Interests
• Historical conditions/Cultural Factors
• Economic Conditions
• Administrative Capacity

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Constraints

• Dynamic Process
• Role of leadership

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• Constraints

Policy Space
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• Constraints

Education
Education
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• Goals ConstraintsDifferent Goals Different
  Constraints

Goal 2
Goal 1
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• Goals ConstraintsDifferent Goals Different
  Constraints

Goal 3
Goal 2
Goal 1
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Summary

• Role of leadership
• Mission
• Goals and Objectives
• Planning
• Allocation of resources
• Constraints