5/21/2011

Strategic Planning

In real life, strategy is

actually very
straightforward. Pick
a general direction
and implement like
hell.
Jack Welch, Chairman
and CEO, General
Electric between
1981 and 2001

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We have a strategic
plan, Its called doing
things.
Herb Kelleher, Cofounder and CEO of
Southwest Airlines
between 1971 and
2008

Strategy is 10 per
cent vision and 90
per cent
execution.
Percy Barnevik,
CEO and
Chairman of
Asea Brown
Boveri between
1988 and 2002

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Revolutionary Strategy
When Strategic Planning isnt Strategic
It should not be just an annual ritual
It should challenge the limits of industry
It should harness the creative potential of a large
portion of the organization
Planning is not the same as strategizing
Planning is programming not discovering
Strategy discovery is not incrementalism

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Revolutionary Strategy

Principle 2 Strategy Making must be

Subversive
Revolutionaries are subversive and enlightened
Be a rule maker not a rule taker

Revolutionary Strategy
Principle 3

The bottle neck is at the top

of the bottle

the top is where least diversity of experience lives

the top is where there is greatest investment in
the past
the top is where there is great reverence in
industry dogma

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Revolutionary Strategy
Principle 4

Revolutionaries exist in every

Company/Organization

They are the maligned middle managers

Allow them to participate in the strategising
process

Revolutionary Strategy
Principle 5
Change is not the problem;
engagement is
Revolutionary strategies are killed by executive
assumptions of other people are against
changethey are the one against change. Only a
hero leader can lead change
The responsibility for change belongs to the entire
organization not only the elite

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Revolutionary Strategy
Principle 6
Strategy making must be
democratic
Strategy creation must involve the entire
organization
A process that facilitates participation of the
creative power of the organization is key

Strategy Emerges as Innovation:

1. New voices must be allowed to participate
2. New conversations with new people must happen.
3. New Passion will be founded on discovering wealth
creating strategies.
4. New perspectives or lenses will allow new insights
5. New experiments on many small low risk
experiments will allow new strategies to emerge

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Different forms of Strategizing

Strategizing is about setting institutional goals
and finding the best means to achieve the
goals
Strategies are the best means which an
organization can achieve its desired ends

ADAPTIVE STRATEGIZING

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IDEOLOGICAL STRATEGIZING

Ideological Strategizing
Organizations exist
because they espouse a
definite set of beliefs,
philosophies, principles
and ideologies

The Way of Doing things

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Ideologically Driven Organizations

Have Strong cultures
and Governing bodies
Strength in Numbers
Discipline
Protective Isolation
Low Profile when weak,
High visibility when
gaining strength

CREATIVE STRATEGIZING

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RATIONALE, SEQUENTIAL AND

ANALYTICAL STRATEGIZING

TOP DOWN APPROACH

VISION

MISSION

OBJECTIVES
KEY RESULT
AREAS
PERFORMANCE
INDICATORS

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SWOT ANALYSIS

BOTTOM UP PLANNING
STRATEGIES

Opportunities (O) and

Threats (T)
EXTERNAL ENVIRONMENT
ASSESSMENT

OPERATING PLANS
AND ACTION
PROGRAMS

Strengths (S) and

Weaknesses (W)
INTERNAL ENVIRONMENT
ASSESSMENT

ACTIVITIES &
TASKS

RESOURCES
REQUIRED

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TOP DOWN APPROACH

VISION
MISSION
OBJECTIVES
KEY RESULT AREAS
PERFORMANCE INDICATORS

OPERATING PLANS
AND ACTION
PROGRAMS

STRATEGIES

ACTIVITIES
& TASKS

RESOURCES
REQUIRED

BOTTOM UP PLANNING

SWOT ANALYSIS

Opportunities (O) and Threats (T)

EXTERNAL ENVIRONMENT ASSESSMENT

Strengths (S) and Weaknesses (W)

INTERNAL ENVIRONMENT ASSESSMENT

VMOKraPISPATRes

Vision
Mission
Objectives
Key Result Areas
Performance Indicators
Strategies
Programs
Activities
Tasks
Resources

5 to 10 Year Picture of the future

Reason for being / Purpose
Direction / Measurable End Result
Specific Manifestations objectives met
Numerical Translation of KRAs
Best Way s of Doing Things
done by multi functional groups
done by groups in a department
done by individuals
Human and Financial

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The Three Foundations

Environmental Analysis
What can or cant be done

Internal Analysis
What we are able or unable to do

VMOKraPI
What we want or not want to do

What influences What?

VMOKRAPI

Driven mostly by
External Analysis
Answers What
Driven mostly by
Internal Analysis
Answers How

SPATRES

EA

PI

SPAT

Res

V M O Kra

HR Org chart
FR Budget
IA

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Three Rules
Never use IA to determine Vision
Use IA to determine the near future
Performance indicators but use EA to
determine the 3rd to 5th year Performances
Use IA to determine the Human Resource and
Financial Strategies

PI

SPAT

Res

V M O Kra

HR
FR Budget
IA

EA

External Environment
Organization and/or
Agenda Exists within
an environment that
impels

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Most
Trend
Spotters

Late
Trend
Spotters

Early
Trend
Spotters

Stubborn
Trend
Stoppers

Relevant Macro Environment Factors

SOCIAL
Demographics

Structure of Society and

Relationships

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TECHNOLOGICAL
COMPETITIVENESS
QUALITY GOODS AND
SERVICES
LOWER COST, ETC

ECONOMIC
All productive forces generated by capital, land
and labor from both the formal and informal
sectors of the economy

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ECOLOGICAL
AN AREAS
NATURAL
RESOURCES,
ECOSYSTEMS,
AND HABITATS
WHICH MANY
STAKEHOLDERS
ARE COMPETING
FOR

POLITICAL

POWER STRUCTURES AND

FORCES WHICH INFLUENCE
AN ENVIRONMENT/S
GOVERNANCE SYSTEM AND
ITS EXTERNAL LINKAGES

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TESTED TECHNIQUES IN
ENVIROMENTAL ANALYSIS
1. MAPPING THE TERRAIN
2. CRITICAL THINKING
a.
b.
c.
d.

ANALYSIS
SYNTHESIS
CLASSIFY DATA
DATA SIEVING CRITERIA OF RELEVANCE,
MAGNITUDE, IMPORTANCE AND URGENCY

3. Moving Through the Terrain (Strategies and

Tactics
4. Forecasting and Scenario Setting

10 Levels of Internal Assessment

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First Level of Assessment

Performance Outputs and Outcomes
Objectives vis--vis mandates (VMG)
Result Based Performance Indicators

Second Level of Assessment

Competency of People (Capabilities and Capacities)
A core competency is
fundamental
knowledge, ability, or
expertise in a specific
subject area or skill set

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Third Level of Assessment

Resources of the Organization

Resource
Allocation and
Utilization

Fourth Level of Assessment

Organizations Management Processes

Planning and Budgeting

Organizing and Staffing
Evaluating and Monitoring
Leading and Directing
Coordinating and Orchestrating
Controlling
Compensation and Rewarding

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Fifth Level of Assessment

Major Programs and projects and Functions
Example in an enterprise
Marketing Function: 7Ps Positioning, Product,
Price, Placement, Packaging, Promo and Ad,
People
Operations Function (5Ms): Material, Machine,
Method, Management, Manpower
Human Resource Management Function
Recruitment, Retooling, Retaining, Recycling

Finance Function: Sources and Uses

Programs and Projects

Sixth Level of Assessment

Teams and Individuals

Management Styles,
attitudes,
value systems,
relationships,
ethics,
cohesiveness,
client orientation and
performance

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Seven Level of Assessment

Physical Facilities
and Set up.
Working
Conditions and
Environmental
Surroundings

Eight Level of Assessment

Organizational Linkages,
Networks, Partnerships
and Communications
Good and Bad
Support and Detractors
Outsourcing partners,
consortium partners

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Ninth Level of Assessment

Leadership and Top
Management
Ability to set directions
Device Strategies
Implement Action
Programs
Elicit support and
performance from the staff
Make good and timely
decisions
Articulate policies and
guidelines
Establish a healthy
organizational culture

Tenth Level of Assessment

Strategic Fit or VOSP Consistency

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STRATEGIES

ORGANIZATION
Planning,
Decision
Making
Implementing

Programs
Activities
Tasks

Motivating
Evaluating
Controlling
Rewarding

VISION
MISSION
OBJECTIVES
KRAs
PIs

Structures
Systems
Resources

Leading
Staffing
Relating
Supporting

Capabilities
Attitudes

PEOPLE

How to Do Strategic Planning

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Strategic Management
Strategic management is a systems approach
to identifying and making the necessary
changes and measuring the organizations
performance as it moves toward its vision.

. . . . management . . . system . . . that links

strategic planning and decision making with
the day-to-day business of operational
management..
(Gluck, Kaufman, and Walleck, 1982)

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five processes of strategic management

pre-planning,
strategic planning,
deployment,
implementation, and
measurement and evaluation.

The Strategic Management Model

Pre-Planning
Pre Planning
Activities

Strategic Planning
Organizational
Assessment

Gap
Analysis

Mission

Measurement
And
Evaluation
Mission

Vision

Strategies

Guiding
Principles

Objectives

Strategic
Foundations

Develop
Measureme
nt Plan

Vision

Guiding
Principles

Resource
Allocation

Deployment

Implementation
Commuicate
Progrss

Track
Status

Take
Actions

Strateigc
Goals

Develop
Action Plans

Phase 2
Communicate
the Plan

Phase 1:
Complete the
Plan

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Questions

The Animal Story

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The Animal Story

The Animal Story

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Lessons in Visioning
Visions are founded in OTSW
Visions are articulated and shared with
everyone in the organization

Lessons in Strategy
Strategy is not something talked about. Its
something we do something about
Strengths are not enough to win
Good strategy brings everyone into Paradise
Good Strategy is participated in by everyone in the
organization
No pain no gain
Small resource but big impact
Use natural things in the environment

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"If you want to build a ship, don't drum up the

men to gather wood, divide the work and give
orders. Instead, teach them to yearn for the
vast and endless sea." - Antoine de SaintExupry

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