Planning Teams and Strategic Planning

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Planning Teams and Strategic Planning

• IACT424/924 Corporate Network Design and
  Implementation

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Outline

• The Strategic Network Plan
• To Planor Not?
• The Crouch Diagram
• Six Tips for Strategic Planning
• Ten Pitfalls of Strategic Planning
• Factors in Selecting Strategies
• Planning Teams
• Who Should Be Involved in Planning?

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The Strategic Network Plan

• Strategic planning determines
• Where an organization is going over the next year
  or more
• How it's going to get there
• How it'll know if it got there or not
• Far more important than the strategic plan
  document, is the planning process itself

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To Planor Not?

• The most basic question to ask before starting a
  strategic planning process is whether to develop
  a strategic plan
• The question of whether or not to develop a
  strategic plan may be based on answers to the
  following questions

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To Planor Not?

• What purpose will the strategic plan serve?
• How will it help the organization?
• Will it be better than the system we use now?
• Are those in leadership positions committed to
  strategic planning?
• How much will it cost in terms of time and
  personnel effort?

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To Planor Not?

• Who should be on the planning team?
• Does anyone have experience with strategic
  planning?
• Do we think we can do it?
• Are we willing to make decisions about our
  future?
• Will we actually use the plan?
• What overriding crises would inhibit our ability
  to plan?

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The Crouch Diagram
Why are we in business?
How do we do business?
Where are we now?
Where do we want to be?
How do we get there?
How will we know weve arrived?
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The Crouch Diagram

• Vision
• Driving Force
• Mission

Why are we in business?
How do we do business?
Where are we now?
Where do we want to be?
How do we get there?
How will we know weve arrived?
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Why Are We in Business?

• Vision
• The future position and value of the organization
  (present tense, seven words or less)
• The vision statement describes
• desired future structure, size, services, and
  markets
• It is a sketch, not a blueprint
• It shows basic features, not specific dimensions.
  It is the strategic baseline
• It must be challenging and compelling
• Effective vision statements capture "the dream
• They are substantive and significant
• They make you different

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Why Are We in Business?

• Mission
• The organization and its purpose (one hundred
  words or less)
• Who we are
• Who we serve
• What products and services we offer, and
• How we make them available
• The mission statement outlines markets,
  customers, and competitors

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Why Are We in Business?

• Mission Statements
• Broadly defines business scope and purpose
• Presents "a desired position in a predicted
  future world" and represents the "bulls-eye or
  target of the strategy" (Yavitz Newman,
  Strategy in Action, 1982)
• It sets down customer needs served and the range
  of services offered.

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Why Are We in Business?

• The mission statement answers
• What is our future business?
• "A mission statement should not commit a firm to
  what it must do in order to survive but what it
  chooses to do in order to thrive" (Ackoff,
  Management in Small Doses, 1986)
• The greatest obstacle is narrow-mindedness,
  thinking of the future business as an elaboration
  of the present

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Why Are We in Business?

• Driving Forces
• The conditions which "drive" the organization
• Products/services offered
• Market focus/needs
• Technology
• Production capability/capacity
• Method of sale
• Method of distribution
• Natural resources
• Size and growth, or
• Profit/return on investment

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The Crouch Diagram
Why are we in business?

• Values
• Climate
• Culture

How do we do business?
Where are we now?
Where do we want to be?
How do we get there?
How will we know weve arrived?
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How Do We Do Business?

• Values
• The bases on which we want decisions to be made
  and actions to be taken
• Values are beliefs held by the company
• Every organization has them
• Values differentiate you from competitors

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How Do We Do Business?

• The Values Statement
• The values statement is a summary of the values
  that guide operations and staff
• It is the basis for the ethical standards in
  dealings with employees, patients or customers,
  vendors, competitors, and payers
• The values statement addresses corporate
  integrity and citizenship, customer benefit,
  quality, and employee relationships

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How Do We Do Business?

• Culture
• Traditions, ethics, and other standards which
  influence the way things are accomplished in the
  organization
• Climate
• The interpersonal and physical environments is
  the organization a good place to be and to work?

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The Crouch Diagram
Why are we in business?
How do we do business?

• Strengths
• Weaknesses
• Opportunities
• Threats
• Competition
• Constraints

Where are we now?
Where do we want to be?
How do we get there?
How will we know weve arrived?
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The Crouch Diagram
Why are we in business?
How do we do business?
Where are we now?
Where do we want to be?

• Strategy

How do we get there?
How will we know weve arrived?
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Where Do We Want to Be?

• Strategies--where we want to be and what we want
  to achieve.
• Goals and objectives--directly support our
  mission.
• Goals should be SMARTS-pecific, M-easurable,
  A-chievable, R-ealistic, and T-imely

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Where Do We Want to Be?

• The Strategy Statement
• A strategy is a statement of direction that
  serves as a central organizational theme guiding
  and coordinating functional actions
• A strategy articulates the nature of a business
  and its main intentions for the future

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Where Do We Want to Be?

• Strategy creates a reference point
• It focuses on long-term direction
• Is qualitative
• Provides guidance for short-term plans
• Integrates functional plans into an overall
  scheme
• Is realistic and action oriented, and is
  understood at the top and middle levels of the
  organization (Yavitz Newman)
• A strategy must be clear and lack subtlety

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The Crouch Diagram
Why are we in business?
How do we do business?
Where are we now?
Where do we want to be?

• Tactics
• Resources

How do we get there?
How will we know weve arrived?
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How Can We Get There?

• Tactics
• Specific action plans to implement our strategies
• the right people doing the right things at right
  time in the right way for the right reasons.
• Satisfying our needs (tactics)...
• What is the specific goal?
• Who will champion it's accomplishment?
• When will action start? End?
• What tasks are involved?
• What resources are needed?
• How shall we monitor?

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How Can We Get There? - The Goals/Objectives
Statement

• Tactics can be developed as a set of goals and
  accompanying objectives framing what needs to be
  done

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How Can We Get There? - The Goals/Objectives
Statement

• A goal is a written statement describing a
  defined action
• Goals are broad ends that an organization works
  towards on an ongoing basis
• Goals are general rather than specific,
  qualitative rather than quantitative, directional
  rather than measurable, focal rather than
  achievable, and continuous rather than
  time-limited

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How Can We Get There? - The Goals/Objectives
Statement

• An objective is a written statement describing a
  specific result, event, or outcome to be
  accomplished to work towards a particular goal
• Objectives are discrete aims to be completed in a
  preset time frame, they are stated in terms of
  "what," "when," and "who."
• Objectives are specific rather than general,
  quantitative rather than qualitative, measurable
  rather than directional, achievable rather than
  focal, and time-limited rather than continuous

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How Can We Get There?

• Goals and objectives are hierarchically related
• A goals/objectives statement takes the form of
  several goals (usually three or more but less
  than ten) enumerated in terms of their
  significance with each goal related to three to
  five objectives in the order to be accomplished.

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How Can We Get There?

• Goal Setting Process
• Consider vision, mission, environment
• Generate goals
• Prioritize goals
• Determine how to defend selections
• Goals show "what" not "how

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How Can We Get There?

• Accomplishing our goals...
• What is the specific task?
• Who will champion it's accomplishment?
• When will action start? End?
• What activities are involved?
• What resources are needed?
• How shall we monitor?

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How Can We Get There?

• Team Process
• Teams select three top goals by consensus
• Combine
• Re-Write, or
• Create new goals
• Report to the group, defend choices
• Begin Action Planning

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How Can We Get There?

• Resources
• There are only five
• People
• Property
• Time
• money, and
• Technology (or knowledge)

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The Crouch Diagram
Why are we in business?
How do we do business?
Where are we now?
GAP ANALYSIS
Where do we want to be?
How do we get there?
How will we know weve arrived?
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Gap Analysis

• Strategic planning closes the gap between where
  the company is and where it wants to be
• This involves translating strategy into the
  realities of organizational structure, systems,
  policies, products, and operations

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Gap Analysis

• This will be done by getting answers to such
  questions as
• What realignments in the organizational structure
  are indicated?
• What changes are suggested in leadership style?
• What new management skills are necessary?
• What will be the implications for policy?

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Gap Analysis

• These questions represent "critical issues" which
  are " those major changes , modifications,
  additions to the organization's structure and
  systems, to its capabilities and resources, to
  its information needs and management that result
  from setting strategy" (Tregoe Zimmerman)
• What makes these issues critical is their
  functional relationship to the implementation of
  the strategy

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The Crouch Diagram
Why are we in business?
How do we do business?
Where are we now?
Where do we want to be?
How do we get there?

• Co-Ordination
• Budgets
• Controls
• Reports
• Milestones

How will we know weve arrived?
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The Crouch Diagram

• For network design and implementation, I believe
  the most important questions are
• Where do we want to be?
• How do we get there?
• You need information
• SWOT
• Constraints
• Reports

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Six Tips for Strategic Planning

• 1. Strategic planning is a way of thinking, an on
  going process
• The plan is never perfect or complete
• 2. Keep the planning simple and manageable
• 3. Involve the organizations leaders
• Don't give away the planning task to support
  staff or consultants

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Six Tips for Strategic Planning

• 4. Emphasize creativity, innovation, and
  imagination rather than blindly following a set
  of planning steps
• 5. Don't adopt strategies without careful
  consideration of how they will be implemented
• 6. Strategic planning is not an end in itself
• It is a tool to help the organization accomplish
  its mission

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Ten Pitfalls of Strategic Planning

• 1. Planning the future primarily on the basis of
  statistical and financial projections or
  forecasts
• 2. Over-nighting a thick packet of forms to every
  branch to complete and return them to the
  corporate office in 10 business days

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Ten Pitfalls of Strategic Planning

• 3. Giving strategic planning lip-service, but not
  giving time or support necessary to develop or
  implement a credible plan
• 4. Rolling out a new company-wide, long-term
  planning process and leaving incentive packages
  tied to short-term results unchanged

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Ten Pitfalls of Strategic Planning

• 5. Blaming competitors, customers, payers,
  regulators, or the sales force for the poor
  strategic performance of the agency or company
• 6. Investing in training all line managers in
  techniques to build an exciting agency future and
  then downsizing

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Ten Pitfalls of Strategic Planning

• 7. Adopting a strategy inherited through the
  acquisition of a former rival or simply imitating
  a current competitor
• 8. Starting with a vision or mission that fails
  to capture the imagination and ownership of the
  grunts in the field

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Ten Pitfalls of Strategic Planning

• 9. Letting the bean counters in the business
  office or in accounting or finance reduce the
  future to a series of monthly bottom lines
• 10. Trying to step into the future with both feet
  planted firmly in past because of a myopic view
  of tomorrow as what we like about today

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Four Basic Strategies
Rational-Empirical People are rational and follow self interestchange based on communication of information and offering incentives
Normative-Re-educative People are social beings and follow social normschange based on redefining and reinterpreting existing norms, developing commitment to new norms
Power-Coercive People are mostly compliant, do as theyre toldchange based on the exercise of authority and the imposition of sanctions
Environmental -Adaptive People oppose loss/disruption but adapt readilychange based on building a new organisation and gradually transferring people to the new one
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Factors in Selecting Strategies

• There is no single perfect strategy please
  consider
• Degree of Resistance
• Strong Power-Coercive Environmental-Adaptive
• Weak Rational-Empirical Normative-Re-educative
• Target Population
• Large populations need all four strategies in a
  mixsomething for everyone

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Factors in Selecting Strategies

• The Stakes
• High stakes need all four strategies in a
  mixnothing left to chance
• The Time Frame
• Short Power-Coercive
• Longer Rational-Empirical Environmental-Adaptiv
  e Normative-Re-educative

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Factors in Selecting Strategies

• Expertise
• Mix the strategies according to the expertise of
  the Change Agents
• Dependency
• If organisation is dependant on its people,
  managements ability to lead is limited
• If people are dependant on the organisation,their
  ability to resist or oppose is limited
• Mutual dependency requires negotiation

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Marketing Strategies
Current Customers New Customers in Related Fields New Customers in Unrelated Fields
New Services in Unrelated Fields STRATEGY VII PRODUCT/SERVICE INNOVATION High Investment Low Return High Risk STRATEGY VIII High Investment Moderate Return High Risk STRATEGY IX STARTUP OPERATION High Investment High Return Very High Risk
New Services in Related Fields STRATEGY IV PRODUCT/SERVICE DEVELOPMENT Moderate Investment Low Return Low Risk STRATEGY V DIVERSIFICATION Moderate Investment Moderate Return Moderate Risk STRATEGY VI Moderate Investment High Return High Risk
Current Services STRATEGY I MARKET PENETRATION Low Investment Low Return Very Low Risk STRATEGY II MARKET DEVELOPMENT Low Investment Moderate Return Low Risk STRATEGY III MARKET INNOVATION Low Investment High Return High Risk
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Planning Teams

• The planning design frequently calls for a small
  team to direct efforts and develop the written
  document
• Input should come from the entire organization so
  that each member has a stake in the process and
  outcome
• Team members should
• Work well together
• Be committed to the process
• Be respected by their peers

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Planning Teams

• Team Leader
• Should understand planning well enough to help
  others through the process
• If this is a first-time experience for everyone
  involved, out side expertise may be useful to
  provide an initial orientation or a jump start

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Who Should Be Involved in Planning?

• Establish clear guidelines for membership, for
  example
• Those directly involved in planning
• Those who will provide key information to the
  process
• Those who will review the plan document
• Those who will authorize the document
• Etc

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Who Should Be Involved in Planning?

• The chief executive and board chair should be
  included in the planning group
• Should drive development and implementation of
  the plan

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Who Should Be Involved in Planning?

• A primary responsibility of a board of directors
  is strategic planning to effectively lead the
  organization
• Therefore, insist that the board be strongly
  involved in planning
• Including assigning a planning committee (often,
  the same as the executive committee)

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Who Should Be Involved in Planning?

• Always include in the group, at least one person
  who ultimately has authority to make strategic
  decisions
• Ensure that as many stakeholders as possible are
  involved in the planning process

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Who Should Be Involved in Planning?

• Involve at least those who are responsible for
  composing and implementing the plan
• Involve someone to administrate the process,
  including
• Arranging meetings
• Helping to record key information
• Helping with flipcharts
• Monitoring status of prework, etc

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Who Should Be Involved in Planning?

• Phases in Team membership
• Strong board involvement in determining the
  organizations strategic direction
• Mission
• Vision
• Values

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Who Should Be Involved in Planning?

• Then more staff involvement in determining the
  organizations strategic analysis to determine
  its current issues and goals
• Then primarily the staff to determine the
  strategies needed to address the issues and meet
  the goals

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Who Should Be Involved in Planning?

• In general, where there's any doubt about whether
  a certain someone should be involved in planning,
  it's best to involve them