HIGH LEVEL GUIDE ON CERTAIN ASPECTS OF DEVELOPING A STRATEGY THROUGH STRATEGIC PLANNING

PROCESS PARTICULARLY FOR THE NPO OR NPC

Written by S C Nkabinde, CEO Baemi NPC, 05 August 2019 1

TEN STEPS TO DEVELOPING AND IMPLEMENTING AN EFFECTIVE STRATEGIC PLAN
Step 1 Develop a Vision
Step 2 Develop a Mission
Step 3 Conduct SWOT Analysis
Step 4 Conduct PESTEL Analysis
Step 5 Conduct a SWOC Analysis
Step 6 Develop a SWOT-TOWS Matrix
Step 7 Articulate Strategic Priorities
Step 8 SP-GOST Programming
Step 9 Business Plan - Strategy Alignment
Step 10 Balanced Scored Card Strategy Alignment & Implementation

Where -

1. SWOT (Strength, Weaknesses, Opportunities, Threats)

2. TWOS (Threats, Weaknesses, Opportunities, Strength)

3. SP-GOST (Strategic Priorities, Goals, Objectives, Strategies, Tactics)

4. PESTEL (Political, Environmental, Societal, Technical, Economic and Legal)

5. SWOC (Strength, Weaknesses, Opportunities, Challenges)

Written by S C Nkabinde, CEO Baemi NPC, 05 August 2019 2

Written by S C Nkabinde, CEO Baemi NPC, 05 August 2019 3
Written by S C Nkabinde, CEO Baemi NPC, 05 August 2019 4
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A TOWS analysis is a variant of a SWOT analysis and is an acronym for Threats, Opportunities, Weaknesses and Strengths.

Similar to a SWOT, a TOWS analysis will involve the identification of an organisation’s strengths, weaknesses, opportunities and threats; however,
often a key criticism of a SWOT analysis is that it doesn’t show the relationships between the different factors and categories. For example, a
particular threat might make a weakness much more significant. Whereas a TOWS analysis will look to match internal factors to external
factors to help identify relevant strategic options that an organisation could pursue. It can help an organisation to see how it can take advantage of
opportunities, reduce threats, overcome weaknesses and exploit any strengths

A TOWS is a commonly used strategic planning tool and can add real value to an organisation, helping to take strategic planning one step
further. Below is an example TOWS matrix.

Written by S C Nkabinde, CEO Baemi NPC, 05 August 2019 8

Let’s delve into this a bit more.

A TOWS analysis enables an organisation to match its internal strengths, and external opportunities (SO) to develop ‘maxi-maxi’ strategies – those
with the greatest potential for success. For example, strengths such as high brand recognition or customer loyalty could be combined with the
opportunity to launch a new product or service.

At the other extreme, it highlights the organisation’s vulnerability to threats based on its weaknesses and facilitates the development of strategies that
minimise these and avoid threats (WT) – ‘mini-mini’ strategies. For example, such strategies could include developing strategic alliances or a more
drastic strategy could be to withdraw from a specific market altogether.

In between, mini-maxi (WO) and maxi-mini strategies (ST) are designed to strengthen weaknesses, utilising opportunities, and minimise threats
utilising strengths. An example mini-maxi strategy (WO) is that an organisation may have identified an opportunity to outsource some aspects of its
business operations, overcoming the weakness of lack of specific skills within the organisation.

It’s important to remember that a TOWS analysis will not point to which specific strategy to adopt, but it does focus attention the areas where action
is required, and given some indication of the nature of that action.

Written by S C Nkabinde, CEO Baemi NPC, 05 August 2019 9