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INTRODUCTION
All things being equal, the
organization that plans the best will
perform the best
Strategic plan is an ongoing process
It is very important to review the strategic
the
and
and
the
THE IMPORTANCE OF
STRATEGIC PLAN
Strategy is an ongoing process
It seeks to maintain a feasible fit between
THE IMPORTANCE OF
STRATEGIC PLAN
It is long term, with planning horizons
FICTION VS FACT
1. FICTION - Strategic planning is a linear,
smooth process
FACT K.N. King (1998) state Strategic
planning is not a linear process and flows
seamlessly form step to step. Rather, it
proceeds in fits and starts, revisiting earlier
steps in some situations and skipping ahead
in others. Strategic planning should be
considered as having a feedback loop at
every stage, whereby new information
requires previous assumptions to be
reviewed for relevancy
FICTION VS FACT
2. FICTION Strategic planning should only be
developed by upper management and
selectively shared
FACT- Little the actual development of the
plan can be delegated, but it must be a
product of extensive listening and the
gathering of input from all levels of the
company... The final plan must be shared
with sll levels, in varying detail depending on
their responsibilities
FICTION VS FACT
3. FICTION Strategic plans are the same as
operational effectiveness
FACT Improvements in operational
effectiveness make companies more closer
together as they compete with other
companies
using
similar
management
techniques, which are easily imitated.
Strategic changes, by contrast, seek to
differentiate
from
rivals
to
improve
sustainability and profitability.
FICTION VS FACT
4. FICTION Non profit organizations do not
FICTION VS FACT
5.
APPROACHES TO STRATEGIC
ANALYSIS AND PLANNING
while the best firms update the tactical plan
annually, they make developing a strategic
plan an event-driven activity, contingent upon
major shifts in the business operating
environment and not just because the
calendar says its December G. Hackett
(1998)
where
business
organizations wish to acknowledge what is
working or has worked as a formal strategy. It is
a justification of past actions and not planning
perse. However, any business organization that
has survived utilizing this approach for a
prolonged length of time has most likely
developed a system that used the successful
activities and transformed them into a kind of
loose, ill-defined strategy that has provided
some direction.
requires
that
the
organization be evaluated based upon its
adaptability to the external environment.
This approach most often identified as
SWOT Analysis (Strengths, Weaknesses,
Opportunities, Threats)
INTERNAL ANALYSIS =
MANAGERIAL STRATEGIC
DECISION MAKING
MOST BUSINESSES FAIL BECAUSE MANAGERS
FAIL
They lack the required execution skills
Managers must be able to formulate
understandable action terms:
Identify the situation
Identify good courses of action
Identify several good alternative
Identify constraints of each alternative
Evaluate the alternative
Managers must have the courage not only decide
VISION STATEMENT
A.M. Zuckerman, C.C. Russel (2000)
stated that A vision statement should
project to a point in time far enough from
the present so that the future for the
organization is unpredictable.
According to M.G. Brown (1998), one
of the keys to a good strategic plan is
that everyone (can understand) the
companys vision, that is to say where it
wants to be in the future.
VISION STATEMENT
The vision statement should be revised,
as needed, to keep it fresh and useful. It
should incorporate the organizations
primary goal, as well as illustrate how the
organization plans to attain these goals.
Thus, it is important to focus on the
process of the development to ensure that
the vision will be an effective tool for the
organization.
VISION STATEMENT
Characteristics of a Good Vision
1. An effective vision should describe the desired
VISION STATEMENT
4. The vision should be verifiable; measures
5.
6.
7.
8.
VISION STATEMENT
Vision Statement Development
One method may be to hire a consultant and
send the top management to a resort for a few
days until they come up with the vision the
organization will pursue.
Another alternative is to look at the vision
statements that other companies have used. Pick
out parts that are appropriate, change some of
the words and phrases, make sure that they fit
the organization focus, and put them into use.
MISSION STATEMENT
focus on present
2 to 4 sentences long
describes what the organization does and the reason
MISSION STATEMENT
DEVELOPMENT
Developing a mission statement involves
taking the time to reflect on what the
organization has accomplished and what it
wants to accomplish.
According to J.A. Bailey, One of the main
reasons for writing a mission statement is to
develop a road map showing management
where the organization should be and giving
general directions for how to get there.
stakeholders involved?
2. Where does the organization
want to place its focus?
3. What development process is
used?
4. What measurement techniques
should be utilized to ultimately
determine its effectiveness?
MISSION DEVELOPMENT
PROCESS
is as important as the mission statement
*Posters
*newsletter
*Employee manuals *company seminar
*Annual report
*workshops
*plaques
*training sessions
*word-of-mouth
profitability?
6. What are the organizations strength and competitive
advantage?
7. What public image is desired?
8. What are the fundamental beliefs and values?
9. Does the mission statement address the wishes of key
stakeholders?
10. Does the statement motivate people?
MISSION STATEMENT
MEASUREMENT
For an organization to know where it
is
going,
it
needs
specific
measurement standards in order to
know if it has achieved its mission.
Mission statement should include a
measurement objective based on
some financial aspect such as
profitability.
Mission
statement
must
be
comprehensible;
they
must
be