Strategic Planning

What is strategic planning?

A process of developing and maintaining consistency or fit between an organizations objectives and its resources and its changing external environment.

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Why do Strategic Planning?

Defines the organizations direction Communicates the overall corporate thinking Ensures effective use of resources Serves as a framework for decisions or for securing support Sets the framework for monitoring progress and evaluating results Stimulates change Avoids wastage of time and other resources
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Components of the Strategic Planning Process

Vision Mission Core values Objectives Strategies Policies Other components of the operating environment

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How does planning influence or guide change?

It is the first step in initiating organizational change It helps to trigger or preempt change It helps to determine where an organization is headed, how it will get there and how it will know it actually got there
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Summary of Strategic Planning

Stage
Where are we? Where do we want to go?

Outputs
External environmental analysis Internal environmental analysis New vision, mission & core values Strategic objectives Strategies Results and operational plans Required resources Short-term budgets Short-term organizational, managerial, HR, etc. decisions and actions (Quick Wins) M&E plan
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HOW do we get there?

What practical next steps must be made to get there?

How do we monitor & 10/16/2013 evaluate the plan?

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Scenario Planning
The process of identifying and linking various resources to various opportunities in different configurations to understand different outcome /possibilities. Its Complex but important process in the organization.

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Scenario planning illustrated

Resource cluster A Resource cluster B Resource cluster C Resource cluster D

Opportunity Pool

Outcome A

Outcome B

Outcome C

Outcome D

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Why does strategic planning sometimes fail?

1. Failure to understand the reason for the plan- the customer 2. Inability to predict environmental reaction 3. Over-estimation of resource competence 4. Failure to coordinate 5. Failure to obtain senior management commitment 6. Failure to obtain employee commitment 7. Under-estimation of time requirements 8. Failure to follow the plan
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Strategies, Goals and Policies

Vision

Mission

Grand Strategy Tactical Strategies Operational Strategies

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Strategic Objectives
Medium term objectives

Strategic Policies Tactical Policies Operational Policies

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C.Vs

C.Vs

Short term objectives

What is a Vision?
Planning begins with a vision.
Possible definitions: A mental perception of the kind of environment is to be created within a broad time horizon A shared image of what an org. wants to become resonates with all & helps them feel proud, excited & part of something bigger It is the pursuit of the dream, share image of success or shared perception of the future environment that really motivates people to work together
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Characteristics of an effective vision:

Imaginable: Conveys a picture of what the future will look like Desirable: Appeals to the long-term interests of employees, customers and stakeholders Feasible: Comprises realistic, attainable goals Focused: Is clear enough to provide guidance in decision making Flexible: Is general enough to allow individual initiative and alternative responses in light of changing conditions Communicable: Is easy to communicate
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Examples of Visions
Become the company most known for changing the worldwide image of Japanese products as being of poor quality. (Sony 1950s) An Apple on every desk (CEO, Apple Computers) To be a university of global excellence in training, research and innovation for development (JKUAT)
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What is a Mission?
An elaboration of the vision statement Defines the basic reasons for the existence and helps legitimize existence in society Common intent to which everyone in the organization can point captures the broad purpose and functions of the organization Contents of a mission statement: Purpose statement Why do we exist? What is the ultimate result of our work? Business statement What activities do we do to accomplish the purpose?
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Examples of Mission statements:

To drive the integration of ICT in research and learning
through quality, cost effective and efficient provision of ICT services and to be a key partner in the evolving information society (Kenya Education and Research Network) To offer accessible quality training, research, and innovation in order to produce leaders in the fields of Agriculture, Engineering, Technology, Enterprise Development, Built Environment, Health and other Applied Sciences to suit the needs of a dynamic world (JKUAT)

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What are Guiding Values?

Other names: core values, corporate philosophy or guiding principles Definitions:
values that guide principles for corporate actions and ethical behavior, define the character of relations with stakeholders, and set management style and corporate culture the organizations essential and enduring tenets - a small set of timeless guiding principles that require no external justification reflection of the deeply held values and tend to be independent of the external environment
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Cont
CVs describe what organizational members: really care about hold dear makes them stick One way to determine whether a value is a CV is to ask: would this value continue to be supported if circumstances changed? Examples of CVs:
integrity fairness and justice excellent and friendly customer service team work innovation professionalism, etc
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Integrating Vision, Mission, Guiding Values

Future Guiding Values

Mission

Vision

Today
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Vision, Mission, Guiding Values

Mission Arrow connects Today and Future Means Mission statement must work not only today but for the intended life of strategic plan Vision Arrow does not begin at Today but at some point in the future Means Vision statement is not true in the present, but only in the future Guiding Values Both Vision and Mission statements reside in a sea of guiding values GVs influence everything
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Transition from Planning to reaping

The transition comes with challenges..

Strategic Goal Setting

Strategy Development and Implementation

Activities

Results

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Transition Challenges
Structures Systems Processes Politics People (staff) External dynamics (shifts) Resources
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